Revenue growth has decelerated sharply to a -20.4% YoY decline in 2026Q2, while gross margin volatility, ranging from 31.6% to 44.1% over the last ten quarters, indicates inconsistent project mix and pricing power that has prevented the materialization of operating leverage.
Onterris, Inc. (ONT) annual income statement — 8-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 |
|---|
| Sales/Revenue | 751.5M | 830.54M | 696.39M | 624.21M | 544.42M | 546.41M | 328.24M | 233.85M | 188.81M |
| Revenue Growth % | -9.06% | 19.26% | 11.56% | 14.66% | -0.37% | 66.47% | 40.36% | 23.86% | - |
| Cost of Goods Sold | 463.88M | 547.11M | 418.19M | 383.9M | 351.88M | 369.03M | 215.49M | 163.98M | 134.73M |
| COGS % of Revenue | - | 65.87% | 60.05% | 61.5% | 64.63% | 67.54% | 65.65% | 70.12% | 71.36% |
| Gross Profit | 287.62M | 283.43M | 278.2M | 240.31M | 192.53M | 177.38M | 112.75M | 69.87M | 54.07M |
| Gross Margin % | 38.27% | 34.13% | 39.95% | 38.5% | 35.37% | 32.46% | 34.35% | 29.88% | 28.64% |
| Gross Profit Growth % | - | 1.88% | 15.77% | 24.81% | 8.54% | 57.32% | 61.37% | 29.22% | - |
| Operating Expenses | 278.17M | 270.81M | 314.92M | 268.73M | 220.55M | 186.84M | 135.76M | 78.82M | 64.87M |
| OpEx % of Revenue | - | 32.61% | 45.22% | 43.05% | 40.51% | 34.19% | 41.36% | 33.7% | 34.36% |
| Selling, General & Admin | 252.86M | 270.81M | 261.63M | 222.86M | 176.29M | 117.66M | 85.55M | 50.66M | 39.36M |
| SG&A % of Revenue | - | 32.61% | 37.57% | 35.7% | 32.38% | 21.53% | 26.06% | 21.66% | 20.85% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 0 | 53.3M | 45.86M | 44.25M | 69.18M | 50.22M | 28.15M | 25.5M |
| Operating Income | 9.45M | 12.63M | -36.72M | -28.42M | -28.01M | -9.46M | -23.01M | -8.95M | -10.64M |
| Operating Margin % | 1.26% | 1.52% | -5.27% | -4.55% | -5.15% | -1.73% | -7.01% | -3.82% | -5.63% |
| Operating Income Growth % | - | 134.38% | -29.21% | -1.45% | -196.28% | 58.91% | -157.25% | 15.92% | - |
| EBITDA | 59.29M | 63.54M | 27.61M | 27.55M | 28.75M | 43.51M | 14.26M | 18.76M | 13.28M |
| EBITDA Margin % | 7.89% | 7.65% | 3.97% | 4.41% | 5.28% | 7.96% | 4.35% | 8.02% | 7.03% |
| EBITDA Growth % | 21.05% | 130.11% | 0.21% | -4.18% | -33.91% | 205.03% | -23.97% | 41.31% | - |
| D&A (Non-Cash Add-back) | 49.83M | 50.91M | 64.33M | 55.97M | 56.77M | 52.96M | 37.27M | 27.7M | 23.91M |
| EBIT | 16.29M | 30.79M | -38.46M | -24.05M | -24.33M | -12M | -43.28M | -19.92M | -10.37M |
| Net Interest Income | -21M | -19.57M | -15.86M | -7.79M | -5.24M | -11.62M | -13.82M | -6.75M | -11.09M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 21M | 19.57M | 15.86M | 7.79M | 5.24M | 11.62M | 13.82M | 6.75M | 11.09M |
| Other Income/Expense | -14.16M | -1.4M | -17.6M | -3.42M | -1.56M | -14.16M | -34.09M | -17.73M | -10.82M |
| Pretax Income | -4.71M | 11.22M | -54.32M | -31.84M | -29.57M | -23.62M | -57.1M | -26.68M | -21.46M |
| Pretax Margin % | -0.63% | 1.35% | -7.8% | -5.1% | -5.43% | -4.32% | -17.39% | -11.41% | -11.37% |
| Income Tax | 5.85M | 12.06M | 8M | -980K | 2.25M | 1.71M | 851K | -3.12M | -4.97M |
| Effective Tax Rate % | -124.12% | 107.51% | -14.72% | 3.08% | -7.61% | -7.24% | -1.49% | 11.7% | 23.15% |
| Net Income | -10.56M | -843K | -62.31M | -30.86M | -31.82M | -25.32M | -57.95M | -23.56M | -16.49M |
| Net Margin % | -1.4% | -0.1% | -8.95% | -4.94% | -5.84% | -4.63% | -17.65% | -10.07% | -8.73% |
| Net Income Growth % | 49.37% | 98.65% | -101.93% | 3.02% | -25.64% | 56.3% | -145.99% | -42.85% | - |
| Net Income (Continuing) | -10.56M | -843K | -62.31M | -30.86M | -31.82M | -25.32M | -57.95M | -23.56M | -16.49M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.28 | -0.14 | -2.22 | -1.57 | -1.62 | -1.56 | -6.48 | -1.73 | -1.01 |
| EPS Growth % | 71.28% | 93.69% | -41.4% | 3.09% | -3.85% | 75.93% | -274.57% | -71.29% | - |
| EPS (Basic) | - | -0.14 | -2.22 | -1.57 | -1.62 | -1.56 | -6.48 | -1.73 | -1.01 |
| Diluted Shares Outstanding | 38.03M | 35.12M | 33.06M | 30.06M | 29.69M | 26.72M | 16.48M | 24.96M | 20.91M |
| Basic Shares Outstanding | 35.13M | 35.12M | 33.06M | 30.06M | 29.69M | 26.72M | 16.48M | 24.96M | 20.91M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying ONT stock.
For fiscal year 2025, Onterris, Inc. (ONT) reported total revenue of $830.5M. This represents a 339.9% increase compared to $188.8M in 2018.
Onterris, Inc. (ONT) reported a net loss of $0.8M for the fiscal year ending 2025.
Onterris, Inc. (ONT) reported an operating income of $12.6M, resulting in an operating profit margin of 1.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Onterris, Inc. (ONT) generated $283.4M in gross profit for the year, representing a gross profit margin of 34.1%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin volatility and earnings inconsistency
Metrics are mathematically derived from official filings.
Revenue Growth Decelerates Sharply
After a period of strong expansion, Montrose's revenue growth has decelerated significantly, with the most recent quarter showing a 20.4% year-over-year decline, a stark reversal from the 35.3% growth seen in 2025Q2.
The company's top-line trajectory has shifted from robust double-digit growth to a material contraction, suggesting potential project timing issues, market softness, or the lapping of large prior-year contracts. This deceleration raises questions about the durability of the growth drivers that fueled the 2025 expansion and warrants close monitoring of the backlog and new business wins.
Gross Margin Volatility Undermines Profitability
Montrose's gross margin has exhibited extreme volatility, swinging from a high of 44.1% in 2026Q2 down to 31.6% in 2025Q1, indicating inconsistent project mix and pricing power that complicates earnings predictability.
The wide fluctuation in gross margin, which appears to be driven by the mix of higher-margin consulting versus lower-margin remediation work, suggests the business lacks a stable cost or pricing structure. This volatility makes it difficult to forecast profitability and indicates that the company may be taking on less favorable project work to maintain revenue volume during slower periods.
Operating Leverage Fails to Materialize
Despite revenue growth in several quarters, Montrose has struggled to generate consistent operating leverage, with operating income swinging between losses and thin profits, indicating that overhead costs are not scaling efficiently with the top line.
The company's SG&A expense has remained relatively high and sticky, consuming a large portion of gross profit even as revenue fluctuates. This suggests that the cost structure is not flexible enough to protect margins during revenue downturns, and the anticipated benefits from scale have not yet translated into sustained operating profitability.
Net Income Distorted by Non-Operating Items
Reported net income and EPS are frequently negative and appear heavily influenced by non-operating items and a high stock-based compensation burden, which totaled $9.6M in 2026Q2 alone, diluting shareholder value.
The quality of earnings is questionable, as net income often diverges significantly from operating income, implying material non-operating charges or benefits. Furthermore, the persistent and substantial stock-based compensation, which has been as high as $29.8M in a single quarter, represents a real economic cost that is not reflected in the operating metrics but directly impacts shareholder dilution.
2025Q2: A Peak in Operational Performance
The second quarter of 2025 represented a clear operational inflection point, with Montrose achieving its highest revenue ($234.5M), gross margin (37.9%), and operating income ($15.6M) in the observed period.
This peak quarter demonstrated the company's potential for profitability when project execution and mix align favorably. However, the subsequent quarters have failed to sustain this level, suggesting that the 2025Q2 performance may have been driven by a unique confluence of favorable project completions rather than a permanent structural improvement in the business model.
Sustainability of Margins and Growth in Question
The strongest challenge to Montrose's narrative is the apparent inability to sustain the operational performance achieved in mid-2025, with recent quarters showing both revenue contraction and a return to operating losses.
A critical view would focus on the pattern of inconsistent profitability and the recent sharp revenue decline as evidence of a fundamentally challenged business model. The volatility in gross margin and the failure to convert revenue growth into consistent operating income suggest that the company may be competing in a low-barrier market where it lacks pricing power, making the path to sustainable profitability uncertain.