Revenue rose to $513.9M and operating margin reached 30.1% in 2026Q3, but net income fell from $181.8M in Q2 to $80.5M, suggesting acquired earnings power is not yet consistently flowing through to the bottom line.
Magnolia Oil & Gas Corporation (MGY) annual income statement — 10-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Sales/Revenue | 1.67B | 1.31B | 1.32B | 1.23B | 1.69B | 1.08B | 541.3M | 942.16M | 1.04B | 403.19M | 110.93M |
| Revenue Growth % | 26.35% | -0.31% | 7.25% | -27.59% | 57.14% | 99.21% | -42.55% | -9.38% | 157.87% | 263.48% | - |
| Cost of Goods Sold | 553.18M | 699.17M | 635.2M | 524.61M | 439.42M | 335.59M | 412.49M | 631.87M | 108.48M | 157.23M | 44.76M |
| COGS % of Revenue | - | 53.3% | 48.27% | 42.76% | 25.93% | 31.12% | 76.2% | 67.07% | 10.43% | 39% | 40.35% |
| Gross Profit | 1.12B | 612.67M | 680.69M | 702.37M | 1.26B | 742.76M | 128.81M | 310.29M | 931.25M | 245.96M | 66.17M |
| Gross Margin % | 66.85% | 46.7% | 51.73% | 57.24% | 74.07% | 68.88% | 23.8% | 32.93% | 89.57% | 61% | 59.65% |
| Gross Profit Growth % | - | -9.99% | -3.09% | -44.04% | 68.97% | 476.63% | -58.49% | -66.68% | 278.61% | 271.74% | - |
| Operating Expenses | 499.63M | 173.49M | 168.7M | 167.89M | 181.29M | 140.17M | 2.05B | 182.35M | 657.75M | 1.15M | 37.31M |
| OpEx % of Revenue | - | 13.22% | 12.82% | 13.68% | 10.7% | 13% | 379.54% | 19.35% | 63.26% | 0.28% | 33.63% |
| Selling, General & Admin | 110.91M | 97.04M | 88.73M | 77.1M | 72.43M | 75.28M | 68.92M | 69.43M | 97.64M | 980.83K | 12.16M |
| SG&A % of Revenue | - | 7.4% | 6.74% | 6.28% | 4.27% | 6.98% | 12.73% | 7.37% | 9.39% | 0.24% | 10.96% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 76.45M | 79.97M | 90.78M | 108.86M | 64.89M | 1.99B | 112.92M | 560.11M | 166.48K | 25.15M |
| Operating Income | 615.95M | 439.18M | 511.99M | 534.49M | 1.07B | 602.59M | -1.93B | 127.5M | 273.5M | -1.15M | 28.86M |
| Operating Margin % | 36.91% | 33.48% | 38.91% | 43.56% | 63.37% | 55.88% | -355.75% | 13.53% | 26.3% | -0.28% | 26.02% |
| Operating Income Growth % | - | -14.22% | -4.21% | -50.22% | 78.19% | 131.29% | -1610.3% | -53.38% | 23938.28% | -103.98% | - |
| EBITDA | 1.11B | 876.94M | 926.48M | 859.27M | 1.32B | 799.63M | -1.63B | 665.58M | 597.08M | 128.56M | 61.98M |
| EBITDA Margin % | 66.5% | 66.85% | 70.41% | 70.03% | 77.72% | 74.15% | -300.72% | 70.64% | 57.43% | 31.89% | 55.88% |
| EBITDA Growth % | 23.57% | -5.35% | 7.82% | -34.75% | 64.69% | 149.12% | -344.57% | 11.47% | 364.42% | 107.42% | - |
| D&A (Non-Cash Add-back) | 493.8M | 437.76M | 414.49M | 324.79M | 243.15M | 197.03M | 297.86M | 538.08M | 323.58M | 129.71M | 33.12M |
| EBIT | 574.03M | 439.03M | 507.51M | 549.85M | 1.08B | 599.57M | -1.92B | 128.12M | 332.56M | -1.15M | 22.14M |
| Net Interest Income | -26.66M | -21.62M | -14.37M | -33K | -23.44M | -31M | -28.7M | -28.36M | -29.89M | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 26.66M | 21.62M | 14.37M | 33K | 23.44M | 31M | 28.7M | 28.36M | 29.89M | 0 | 0 |
| Other Income/Expense | -69.33M | -21.77M | -18.84M | 15.33M | -16.9M | -34.03M | -22.66M | -27.74M | -48.13M | 3.98M | -6.71M |
| Pretax Income | 546.61M | 417.41M | 493.14M | 549.81M | 1.06B | 568.57M | -1.95B | 99.77M | 225.37M | 2.83M | 22.14M |
| Pretax Margin % | 32.75% | 31.82% | 37.48% | 44.81% | 62.37% | 52.73% | -359.93% | 10.59% | 21.68% | 0.7% | 19.96% |
| Income Tax | 112.15M | 80.13M | 95.81M | 107.21M | 6.64M | 8.85M | -79.34M | 14.76M | 27.49M | 1.16M | 673K |
| Effective Tax Rate % | 20.52% | 19.2% | 19.43% | 19.5% | 0.63% | 1.56% | 4.07% | 14.79% | 12.2% | 40.94% | 3.04% |
| Net Income | 430.83M | 325.25M | 366.03M | 388.3M | 893.84M | 417.28M | -1.21B | 50.2M | 93.83M | 1.67M | 21.47M |
| Net Margin % | 25.82% | 24.79% | 27.82% | 31.65% | 52.75% | 38.7% | -223.24% | 5.33% | 9.02% | 0.41% | 19.36% |
| Net Income Growth % | 25.94% | -11.14% | -5.74% | -56.56% | 114.2% | 134.53% | -2507.34% | -46.5% | 5513.45% | -92.22% | - |
| Net Income (Continuing) | 434.46M | 337.28M | 397.33M | 442.6M | 1.05B | 559.72M | -1.87B | 85M | 197.88M | 1.67M | 21.47M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 59.22M | 53.75M | 191M | 164.14M | 228.49M | 291.26M | 952.48M | 1.03B | 0 | 0 |
| EPS (Diluted) | 1.87 | 1.75 | 1.94 | 2.04 | 4.71 | 2.36 | -7.27 | 0.28 | 0.60 | 2.20 | 0.29 |
| EPS Growth % | 24.44% | -9.79% | -4.9% | -56.69% | 99.58% | 132.46% | -2696.43% | -53.33% | -72.73% | 658.62% | - |
| EPS (Basic) | - | 1.75 | 1.94 | 2.04 | 4.73 | 2.38 | -7.27 | 0.29 | 1.65 | 2.20 | 0.29 |
| Diluted Shares Outstanding | 230.64M | 185.59M | 186.49M | 188.35M | 187.9M | 175.36M | 166.27M | 167.05M | 158.57M | 81.25M | 75M |
| Basic Shares Outstanding | 230.63M | 185.58M | 186.47M | 188.17M | 187.43M | 174.36M | 166.27M | 161.89M | 156.3M | 81.25M | 75M |
| Dividend Payout Ratio | - | 34.77% | 26.67% | 22.68% | 8.41% | 3.39% | - | - | - | - | - |
Quick answers to the most common questions about buying MGY stock.
For fiscal year 2025, Magnolia Oil & Gas Corporation (MGY) reported total revenue of $1.31B. This represents a 1082.6% increase compared to $110.9M in 2016.
Magnolia Oil & Gas Corporation (MGY) is profitable, generating $325.3M in net income for the fiscal year ending 2025 with a net profit margin of 24.8%.
Magnolia Oil & Gas Corporation (MGY) reported an operating income of $439.2M, resulting in an operating profit margin of 33.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Magnolia Oil & Gas Corporation (MGY) generated $612.7M in gross profit for the year, representing a gross profit margin of 46.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Earnings power compression after acquisition
Metrics are mathematically derived from official filings.
Revenue Plateau Masks Acquisition Volatility
Based on reported figures, MGY's quarterly revenue rose 58.2% year over year to $513.9M in 2026Q3, yet the trailing trend remains choppy, with revenue growth near flat across the prior eight quarters before the recent step-up.
The sharp 2026 step-up in revenue appears to be driven by the WildFire acquisition rather than organic Karnes or Giddings growth, since the 2024 to 2025 base was essentially flat. This suggests top-line momentum is inorganic and may not be durable without continued bolt-on activity. Investors should monitor whether the 2026Q4 run-rate holds near $500M or reverts toward the $320M to $350M range that characterized 2024 and 2025.
Gross Margin Step-Change Reflects Mix Shift
As reported in financial statements, MGY's gross margin swung from roughly 43% in 2025Q4 to above 80% in 2026Q2 and Q3, a shift far larger than typical commodity price movement would explain.
The jump in gross margin to 80% and above, combined with the collapse in COGS relative to revenue, suggests a change in how cost lines are classified or allocated following the acquisition rather than a pure pricing effect. Because the operating margin moved far less (about 30% to 50%), the reported gross margin may not be a reliable indicator of underlying cost structure. Analysts should reconcile COGS definitions before extrapolating the 80% figure.
EPS Miss Signals Below-the-Line Pressure
Based on EDBL-style reporting conventions, MGY's Q3 2026 diluted EPS of $0.35 fell well short of the $0.86 consensus, even though operating income of $154.6M remained a healthy 30.1% of revenue.
The gap between a solid operating margin and a sharply lower EPS suggests interest, D&A, integration costs, or share count dilution from the WildFire transaction may be absorbing a larger share of earnings. Net margin fell to 15.7% from 38.0% in the prior quarter, which indicates the drag is material rather than cosmetic. The drivers are not itemized in the supplied data, so this warrants further investigation before concluding whether the miss is transitory.
Lean SG&A Carries Limited Cost Upside
According to recent filings, MGY's SG&A held near $25M per quarter across the 2025 and 2026 periods, representing roughly 5% of revenue in 2026Q3, a level that appears lean for an E&P of this scale.
Stable SG&A in absolute dollars during a period of revenue growth implies strong overhead leverage, which supports operating margin durability. However, the lean base leaves little room for further cuts to offset commodity or service-cost inflation. Investors should watch whether integration of the acquired assets pushes SG&A higher in subsequent quarters.
Acquired Growth Faces Integration Risk
Based on reported figures, the 2026 revenue surge is concentrated in two quarters, while net income declined from $181.8M in Q2 to $80.5M in Q3, raising questions about whether acquired earnings are being sustained.
The bear case centers on the possibility that the WildFire contribution is front-loaded or non-recurring, and that the Q2 peak reflected timing effects rather than run-rate earnings. The reported Q3 EPS shortfall, combined with unchanged guidance tone, could suggest integration issues that take several quarters to surface. Without disclosed synergy targets or itemized costs, the risk that reported growth overstates sustainable earnings power remains an open question.