Revenue rebounded 56.5% from $66.9M in 2025Q4 to $104.7M in 2026Q2 with operating margin recovering to 48.0%, yet gross margin whipsawed from 28.7% to 75.4% over the same span, suggesting reported earnings remain dominated by COGS recognition timing rather than structural pricing power.
Ring Energy, Inc. (REI) annual income statement — 20-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 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Sep'08 | Sep'07 | Sep'06 |
|---|
| Sales/Revenue | 245.24M | 307.18M | 366.33M | 361.06M | 347.25M | 196.31M | 113.03M | 195.7M | 120.07M | 66.7M | 30.85M | 31.01M | 38.09M | 10.32M | 1.76M | 2.62K | 8.27K | 0 | 0 | 0 | 0 |
| Revenue Growth % | -24.25% | -16.15% | 1.46% | 3.98% | 76.89% | 73.68% | -42.25% | 63% | 80.01% | 116.2% | -0.53% | -18.58% | 269.24% | 486.97% | 66875.76% | -68.27% | - | - | - | - | - |
| Cost of Goods Sold | 101.33M | 120.71M | 202.41M | 184.66M | 127.43M | 83.74M | 85.21M | 114.76M | 72.46M | 39.65M | 22.86M | 26.6M | 18.56M | 3.97M | 1.38M | 600 | 9.89K | 0 | 0 | 0 | 0 |
| COGS % of Revenue | - | 39.3% | 55.25% | 51.14% | 36.7% | 42.66% | 75.39% | 58.64% | 60.35% | 59.44% | 74.09% | 85.78% | 48.73% | 38.47% | 78.28% | 22.87% | 119.63% | - | - | - | - |
| Gross Profit | 143.9M | 186.47M | 163.92M | 176.39M | 219.82M | 112.57M | 27.82M | 80.95M | 47.61M | 27.05M | 7.99M | 4.41M | 19.53M | 6.35M | 381.7K | 2.02K | -1.62K | 0 | 0 | 0 | 0 |
| Gross Margin % | 58.68% | 60.7% | 44.75% | 48.86% | 63.3% | 57.34% | 24.61% | 41.36% | 39.65% | 40.56% | 25.91% | 14.22% | 51.27% | 61.53% | 21.72% | 77.13% | -19.63% | - | - | - | - |
| Gross Profit Growth % | - | 13.76% | -7.07% | -19.76% | 95.28% | 304.67% | -65.63% | 70.03% | 75.99% | 238.37% | 81.21% | -77.41% | 207.67% | 1562.84% | 18758.89% | 224.71% | - | - | - | - | - |
| Operating Expenses | 119.44M | 111.98M | 31.02M | 30.61M | 28.08M | 16.81M | 296.48M | 20.81M | 13.47M | 11.08M | 8.51M | 8.41M | 6.96M | 6.74M | 2.41M | 328.48K | 57.35K | 123K | 123.76K | 115.13K | 28.09K |
| OpEx % of Revenue | - | 36.46% | 8.47% | 8.48% | 8.09% | 8.56% | 262.31% | 10.63% | 11.22% | 16.62% | 27.6% | 27.13% | 18.27% | 65.3% | 137.33% | 12518.22% | 693.54% | - | - | - | - |
| Selling, General & Admin | 32.47M | 31.93B | 29.64M | 29.19M | 27.1M | 16.07M | 18.07M | 19.87M | 12.87M | 10.52M | 8.03M | 8M | 6.8M | 6.68M | 2.39M | 323.01K | 54.42K | 117.96K | 123.76K | 109.18K | 27.49K |
| SG&A % of Revenue | - | 10394.16% | 8.09% | 8.08% | 7.8% | 8.19% | 15.99% | 10.15% | 10.72% | 15.77% | 26.02% | 25.78% | 17.86% | 64.78% | 136.14% | 12309.76% | 658.17% | - | - | - | - |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3.39M | -31.82B | 1.38M | 1.43M | 983.43K | 744.04K | 278.41M | 943.71K | 606.46K | 567.97K | 487.18K | 418.38K | 154.97K | 53.68K | 20.91K | 5.47K | 2.92K | 5.04K | 0 | 5.95K | 604 |
| Operating Income | 126.8M | 74.49M | 132.9M | 145.78M | 191.74M | 95.76M | -268.66M | 60.14M | 19.96M | 15.97M | -57.03M | -13.31M | 12.57M | -389.32K | -2.03M | -326.45K | -58.97K | -123K | -123.76K | -115.13K | -28.09K |
| Operating Margin % | 51.71% | 24.25% | 36.28% | 40.38% | 55.22% | 48.78% | -237.7% | 30.73% | 16.63% | 23.94% | -184.87% | -42.93% | 33% | -3.77% | -115.61% | -12441.08% | -713.17% | - | - | - | - |
| Operating Income Growth % | - | -43.95% | -8.84% | -23.97% | 100.24% | 135.64% | -546.75% | 201.27% | 25.01% | 128% | -328.36% | -205.92% | 3328.74% | 80.84% | -522.4% | -453.57% | 52.05% | 0.62% | -7.5% | -309.8% | - |
| EBITDA | 212.62M | 172.39M | 231.6M | 234.39M | 247.48M | 132.92M | -225.65M | 116.34M | 58.99M | 36.48M | -45.55M | 1.86M | 24.38M | 1.89M | -1.53M | -325.25K | -56.31K | -121.9K | -124.41K | -107.21K | -28.09K |
| EBITDA Margin % | 86.7% | 56.12% | 63.22% | 64.92% | 71.27% | 67.71% | -199.65% | 59.45% | 49.13% | 54.7% | -147.65% | 6% | 64% | 18.37% | -86.78% | -12395.39% | -680.98% | - | - | - | - |
| EBITDA Growth % | 87.86% | -25.57% | -1.19% | -5.29% | 86.18% | 158.91% | -293.96% | 97.23% | 61.67% | 180.1% | -2546.98% | -92.36% | 1186.6% | 224.24% | -368.88% | -477.62% | 53.81% | 2.02% | -16.04% | -281.62% | - |
| D&A (Non-Cash Add-back) | 85.82M | 97.9M | 98.7M | 88.61M | 55.74M | 37.17M | 43.01M | 56.2M | 39.02M | 20.52M | 11.48M | 15.18M | 11.81M | 2.28M | 506.79K | 1.2K | 2.66K | 1.1K | -653 | 7.92K | 0 |
| EBIT | -200.25M | -1.75M | 131.22M | 148.92M | 170.21M | 17.9M | -241.8M | 57.15M | 12.87M | 12.17M | -56.98M | -13.31M | 12.57M | -364.62K | -1.75M | -326.45K | -58.97K | -334.06K | -122.62K | -123.31K | -28.09K |
| Net Interest Income | -30.65M | -40.14M | -42.82M | -43.67M | -23.17M | -14.49M | -17.62M | -13.85M | -330.04K | 291.08K | -592.51K | -742.15K | 85.96K | 14.82K | -214.5K | 6.21K | 3.21K | -180.26K | -971 | 0 | 0 |
| Interest Income | 384.71K | 290.88K | 491.95K | 257.15K | 4 | 1 | 8 | 13.51K | 97.86K | 291.08K | 56.5K | 6.98K | 85.96K | 24.71K | 4.31K | 6.21K | 3.21K | 30.8K | 484 | 0 | 0 |
| Interest Expense | 23.23M | 40.43M | 43.31M | 43.93M | 23.17M | 14.49M | 17.62M | 13.87M | 427.9K | 0 | 649.01K | 749.13K | 0 | 9.89K | 218.81K | 0 | 0 | 211.06K | 1.46K | 4.03K | 173 |
| Other Income/Expense | -264.63M | -116.67M | -44.99M | -40.79M | -44.7M | -92.34M | 9.25M | -16.85M | -7.52M | -3.8M | -592.51K | -742.15K | 85.96K | 14.82K | 62.24K | 326.45K | -19.45K | -211.06K | -318 | -7.65K | 0 |
| Pretax Income | -198.56M | -42.18M | 87.91M | 104.99M | 147.04M | 3.41M | -259.41M | 43.28M | 12.45M | 12.17M | -57.63M | -14.06M | 12.66M | -374.51K | -1.97M | 0 | -78.42K | -334.06K | -123.11K | -123.05K | 0 |
| Pretax Margin % | -80.97% | -13.73% | 24% | 29.08% | 42.35% | 1.74% | -229.52% | 22.12% | 10.37% | 18.25% | -186.79% | -45.32% | 33.23% | -3.63% | -112.07% | - | -948.35% | - | - | - | - |
| Income Tax | -16.09M | -7.45M | 20.44M | 125.24K | 8.41M | 90.34K | -6M | 13.79M | 3.45M | 10.42M | -19.99M | -5M | 4.24M | 77.7K | -300.32K | -12.41K | 0 | 0 | 1.14K | 7.92K | 28.27K |
| Effective Tax Rate % | 8.1% | 17.67% | 23.25% | 0.12% | 5.72% | 2.65% | 2.31% | 31.85% | 27.69% | 85.59% | 34.69% | 35.6% | 33.47% | -20.75% | 15.25% | - | 0% | 0% | -0.92% | -6.43% | - |
| Net Income | -185.24M | -34.73M | 67.47M | 104.86M | 138.64M | 3.32M | -253.41M | 29.5M | 9M | 1.75M | -37.64M | -9.05M | 8.42M | -452.21K | -1.67M | -320.25K | -78.42K | -334.06K | -124.08K | -127.08K | -28.27K |
| Net Margin % | -75.54% | -11.31% | 18.42% | 29.04% | 39.92% | 1.69% | -224.21% | 15.07% | 7.5% | 2.63% | -122% | -29.19% | 22.11% | -4.38% | -94.98% | -12204.57% | -948.35% | - | - | - | - |
| Net Income Growth % | -1041.48% | -151.48% | -35.66% | -24.36% | 4072.12% | 101.31% | -959.12% | 227.75% | 413.14% | 104.66% | -315.76% | -207.51% | 1962.08% | 72.91% | -421.25% | -308.38% | 76.53% | -169.23% | 2.36% | -349.57% | - |
| Net Income (Continuing) | -185.24M | -34.73M | 67.47M | 104.86M | 138.64M | 3.32M | -253.41M | 29.5M | 9M | 1.75M | -37.64M | -9.05M | 8.42M | -452.21K | -1.67M | 71.49K | -78.42K | -334.06K | -124.08K | -127.08K | -28.27K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.77 | -0.17 | 0.34 | 0.54 | 0.98 | 0.03 | -3.48 | 0.44 | 0.15 | 0.03 | -0.97 | -0.32 | 0.33 | -0.03 | -0.21 | -0.04 | -0.02 | -0.09 | -0.04 | -0.04 | -0.01 |
| EPS Growth % | -1112.5% | -150% | -37.04% | -44.9% | 3166.67% | 100.86% | -890.91% | 193.33% | 400% | 103.09% | -203.13% | -196.97% | 1295.65% | 86.86% | -452.63% | -71.95% | 76.54% | -144.68% | 7.89% | -211.94% | - |
| EPS (Basic) | - | -0.17 | 0.34 | 0.55 | 1.14 | 0.03 | -3.48 | 0.44 | 0.15 | 0.03 | -0.97 | -0.32 | 0.34 | -0.03 | -0.21 | -0.04 | -0.02 | -0.09 | -0.04 | -0.04 | -0.01 |
| Diluted Shares Outstanding | 239.98M | 206.98M | 200.28M | 195.36M | 141.75M | 121.19M | 72.89M | 66.76M | 60.85M | 52.81M | 38.71M | 28.18M | 25.89M | 16.38M | 8.07M | 8.43M | 3.55M | 3.55M | 3.22M | 3.04M | 2.1M |
| Basic Shares Outstanding | 231.4M | 206.52M | 197.94M | 190.59M | 121.26M | 99.39M | 72.89M | 66.57M | 59.53M | 51.38M | 38.71M | 28.18M | 24.74M | 16.38M | 7.95M | 8.43M | 3.55M | 3.55M | 3.22M | 3.04M | 2.1M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying REI stock.
For fiscal year 2025, Ring Energy, Inc. (REI) reported total revenue of $307.2M.
Ring Energy, Inc. (REI) reported a net loss of $34.7M for the fiscal year ending 2025.
Ring Energy, Inc. (REI) reported an operating income of $74.5M, resulting in an operating profit margin of 24.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Ring Energy, Inc. (REI) generated $186.5M in gross profit for the year, representing a gross profit margin of 60.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Extreme gross margin volatility
Metrics are mathematically derived from official filings.
Revenue Volatility Defies Trend Clarity
Ring Energy's quarterly revenue swung from $66.9M in 2025Q4 to $104.7M in 2026Q2, a 56.5% rebound, per the company's reported income statements, reversing seven quarters of mostly sequential declines and leaving the ten-quarter trend line too erratic to characterize as a durable growth trajectory.
The series shows revenue drifting from $99.1M in 2024Q2 down to a $66.9M trough in 2025Q4, then snapping back sharply in 2026Q2, which suggests the recent uptick may be driven by spot realizations or volume timing rather than a sustained demand shift. Investors should treat the 26.7% year-over-year growth in 2026Q2 cautiously, since it follows two consecutive quarters of negative growth and does not yet establish a repeatable pattern.
Gross Margin Whipsaw Drives Earnings Noise
Based on REI's quarterly filings, gross margin ranged from 28.7% in 2025Q4 to 75.4% in 2026Q2, driven mainly by COGS swings between $24.3M and $52.6M rather than pricing, indicating cost recognition timing or hedging effects dominate the reported margin structure.
COGS nearly doubled from $24.3M in 2025Q3 to $47.7M in 2025Q4 while revenue fell, compressing gross margin to 28.7%, then reversed to $25.8M in 2026Q2 on higher revenue, which points to production cost or derivative effects rather than a structural change in well economics. Relative to Civitas at 41.2% and Matador at 43.7% gross margins, REI's reported figures appear far more unstable, implying the margin level at any single date is a weak basis for underwriting forward profitability.
Flat SG&A Amplifies Operating Swings
As shown in REI's income statements, SG&A held within a narrow $6.4M to $8.6M band across all ten quarters, so operating income swung from -$55.0M to $50.3M entirely on gross profit variability, indicating essentially no overhead cushion against margin compression.
The fixed nature of SG&A means REI's operating margin is effectively a levered function of gross margin, which explains why operating margin ranged from -70.0% to 48.0% over the period despite relatively disciplined expense control. This structure implies that any repeat of the 2025Q3-style gross profit deterioration would immediately push operations back into loss, absent meaningful cost reduction already embedded in the current expense base.
Net Income Decoupled From Operations
According to REI's income statements, 2026Q1 posted a $220.6M net loss despite $20.3M of operating income, while 2026Q2 delivered $64.8M of net income against $50.3M operating profit, a divergence implying material non-operating charges and tax items distort period-to-period earnings comparisons.
The $240.9M gap between 2026Q1 operating income and net income suggests a large below-the-line charge, possibly impairment or tax-related, that is not reflected in the operating line, making reported EPS an unreliable proxy for core performance in that quarter. Similarly, 2026Q2 net margin of 61.9% exceeds operating margin of 48.0%, which may indicate a tax benefit or non-operating gain flattered the result, warranting further investigation before extrapolating the earnings run-rate.
2026Q2 Breaks the Downturn Pattern
Based on reported figures, 2026Q2 stands out as the clearest inflection, with revenue of $104.7M and operating income of $50.3M, both the highest in the ten-quarter series, reversing the 2025Q3 operating loss of $55.0M and the 2025Q4 margin trough.
The recovery appears driven by simultaneous revenue growth of 26.7% year-over-year and a COGS reduction to $25.8M from $47.7M two quarters prior, suggesting improved cost efficiency or more favorable pricing on the sales side. However, given that similar margin peaks in 2024Q2 (50.3% gross margin) subsequently faded, investors should monitor whether 2026Q2 marks a lasting operating reset or another cyclical high, as the historical record offers limited evidence of sustained margin expansion.
Margin Sustainability Warrants Scrutiny
Skeptics would note REI's 75.4% gross margin in 2026Q2 compares with 28.7% just two quarters earlier and sits far above peers like Civitas at 41.2% and Matador at 43.7%, suggesting the current margin may reflect favorable cost timing rather than structural advantage.
The 46.7 percentage point swing in gross margin over two quarters is difficult to explain through operational improvement alone and may indicate one-time cost deferrals, hedge settlements, or revenue recognition effects that could reverse in subsequent periods. Additionally, the persistent revenue decline through 2025 alongside volatile margins raises the question of whether the 2026Q2 rebound is price-driven and therefore exposed to commodity downdrafts, a risk that warrants close monitoring of the next two quarters' reported figures.