Operating margins remain constrained by intense sector competition, evidenced by a compression from 8.4% in 2024Q3 to 3.2% in 2026Q1 despite recent revenue growth.
| Sales/Revenue | 570.8M | 546.9M | 571.1M | 636.6M | 608.5M | 293.1M | 187.8M | 336.9M | 303.1M | 154M | 52.8M | 21.2M |
| Revenue Growth % | 0.25% | -4.24% | -10.29% | 4.62% | 107.61% | 56.07% | -44.26% | 11.15% | 96.82% | 191.67% | 149.06% | - |
| Cost of Goods Sold | 376.9M | 502.9M | 516.9M | 571.6M | 548.3M | 300.1M | 182.9M | 297.8M | 267.2M | 144.2M | 45.9M | 18.2M |
| COGS % of Revenue | - | 91.95% | 90.51% | 89.79% | 90.11% | 102.39% | 97.39% | 88.39% | 88.16% | 93.64% | 86.93% | 85.85% |
| Gross Profit | 34.8M | 44M | 54.2M | 65M | 60.2M | -7M | 4.9M | 39.1M | 35.9M | 9.8M | 6.9M | 3M |
| Gross Margin % | 6.1% | 8.05% | 9.49% | 10.21% | 9.89% | -2.39% | 2.61% | 11.61% | 11.84% | 6.36% | 13.07% | 14.15% |
| Gross Profit Growth % | - | -18.82% | -16.62% | 7.97% | 960% | -242.86% | -87.47% | 8.91% | 266.33% | 42.03% | 130% | - |
| Operating Expenses | 172.9M | 25.3M | 25.6M | 25.3M | 39.9M | 33.5M | 20M | 26.7M | 29M | 30.4M | 11.4M | 7.8M |
| OpEx % of Revenue | - | 4.63% | 4.48% | 3.97% | 6.56% | 11.43% | 10.65% | 7.93% | 9.57% | 19.74% | 21.59% | 36.79% |
| Selling, General & Admin | 30.3M | 29.6M | 27.8M | 29.5M | 39.9M | 33.5M | 20M | 26.7M | 29M | 30.4M | 11.4M | 7.8M |
| SG&A % of Revenue | - | 5.41% | 4.87% | 4.63% | 6.56% | 11.43% | 10.65% | 7.93% | 9.57% | 19.74% | 21.59% | 36.79% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -1.3M | -4.3M | -2.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 22.8M | 18.7M | 28.6M | 36.9M | 19.7M | -3.5M | -15.1M | 12.4M | -2.1M | -20.6M | -4.5M | -6.4M |
| Operating Margin % | 3.99% | 3.42% | 5.01% | 5.8% | 3.24% | -1.19% | -8.04% | 3.68% | -0.69% | -13.38% | -8.52% | -30.19% |
| Operating Income Growth % | - | -34.62% | -22.49% | 87.31% | 662.86% | 76.82% | -221.77% | 690.48% | 89.81% | -357.78% | 29.69% | - |
| EBITDA | 74.7M | 65M | 72.7M | 76.8M | 64.1M | 33.3M | 19.9M | 47.2M | 28.2M | -2.8M | 2.1M | -4.3M |
| EBITDA Margin % | 13.09% | 11.89% | 12.73% | 12.06% | 10.53% | 11.36% | 10.6% | 14.01% | 9.3% | -1.82% | 3.98% | -20.28% |
| EBITDA Growth % | -0.27% | -10.59% | -5.34% | 19.81% | 92.49% | 67.34% | -57.84% | 67.38% | 1107.14% | -233.33% | 148.84% | - |
| D&A (Non-Cash Add-back) | 51.9M | 46.3M | 44.1M | 39.9M | 44.4M | 36.8M | 35M | 34.8M | 30.3M | 17.8M | 6.6M | 2.1M |
| EBIT | 17.8M | 18.7M | 28.6M | 34.5M | 23.3M | -3.3M | -15.1M | 12.4M | -2.1M | -20.6M | -4.5M | -6.4M |
| Net Interest Income | -700K | -1.2M | -2.6M | -3.5M | -7.3M | -5M | -3.4M | -5.8M | -3.7M | -6.3M | -500K | -300K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.5M | 1.2M | 2.6M | 3.5M | 7.3M | 5M | 3.4M | 5.8M | 3.7M | 6.3M | 500K | 300K |
| Other Income/Expense | -1.5M | -900K | -2.6M | -5.9M | -3.7M | 32.2M | -1.3M | -5.8M | -3.7M | -6.3M | -500K | -300K |
| Pretax Income | 21.3M | 17.8M | 26M | 31M | 16M | -8.3M | -18.5M | 6.6M | -5.8M | -26.9M | -5M | -6.7M |
| Pretax Margin % | 3.73% | 3.25% | 4.55% | 4.87% | 2.63% | -2.83% | -9.85% | 1.96% | -1.91% | -17.47% | -9.47% | -31.6% |
| Income Tax | 6.6M | 5.5M | 7.6M | 7.2M | 900K | -6.2M | 0 | 2.2M | 0 | 400K | 0 | 0 |
| Effective Tax Rate % | 30.99% | 30.9% | 29.23% | 23.23% | 5.63% | 74.7% | 0% | 33.33% | 0% | -1.49% | 0% | 0% |
| Net Income | 14.7M | 12.3M | 18.4M | 23.8M | 15.1M | -2.1M | -15.8M | 4.4M | -3.3M | -6.6M | -5M | -6.7M |
| Net Margin % | 2.58% | 2.25% | 3.22% | 3.74% | 2.48% | -0.72% | -8.41% | 1.31% | -1.09% | -4.29% | -9.47% | -31.6% |
| Net Income Growth % | -25.76% | -33.15% | -22.69% | 57.62% | 819.05% | 86.71% | -459.09% | 233.33% | 50% | -32% | 25.37% | - |
| Net Income (Continuing) | 14.7M | 12.3M | 18.4M | 23.8M | 15.1M | -2.1M | -18.5M | 4.4M | -5.8M | -27.3M | -5M | -6.7M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 82.9M | 89.8M | 90.1M | 92M | 0 | 0 |
| EPS (Diluted) | 0.61 | 0.54 | 0.81 | 0.95 | 0.65 | -0.15 | -1.85 | 0.51 | -0.39 | -0.78 | -0.74 | -0.99 |
| EPS Growth % | -27.92% | -33.33% | -14.74% | 46.15% | 533.33% | 91.89% | -462.75% | 230.77% | 50% | -5.41% | 25.25% | - |
| EPS (Basic) | - | 0.55 | 0.82 | 0.97 | 0.66 | -0.18 | -1.85 | 0.51 | -0.39 | -0.78 | -0.74 | -0.99 |
| Diluted Shares Outstanding | 24.04M | 22.68M | 22.85M | 24.99M | 23.37M | 13.55M | 8.53M | 8.63M | 8.43M | 8.41M | 6.79M | 6.79M |
| Basic Shares Outstanding | 23.6M | 22.36M | 22.52M | 24.6M | 22.97M | 11.86M | 8.53M | 8.63M | 8.43M | 8.41M | 6.79M | 6.79M |
| Dividend Payout Ratio | - | 44.72% | 24.46% | 10.08% | - | - | - | - | - | - | - | - |
Cyclical Margin Compression Risk
As indicated by the most recent quarterly data, Ranger Energy Services experienced a 17.7% revenue growth in 2026Q1, yet this follows a period of inconsistent performance where year-over-year figures frequently fluctuated, reflecting the inherent sensitivity of the company's service-based model to regional E&P activity levels.
The recent revenue uptick suggests a potential recovery in utilization, though the historical volatility highlights the difficulty in maintaining consistent top-line momentum. Investors should monitor whether this growth is driven by sustainable demand for high-spec rig interventions or merely temporary project-based spikes in completion activity.
Based on reported financial statements, Ranger's gross margin has struggled to maintain double-digit levels, peaking at 13.0% in 2024Q3 before compressing to 7.9% by 2025Q4, which underscores the intense pricing competition inherent in the US onshore well service and maintenance sector.
The inability to consistently expand gross margins suggests that the company lacks significant pricing power, even with its specialized high-spec fleet. This margin profile implies that any increase in input costs or labor wages will likely result in immediate and meaningful pressure on the bottom line.
According to the income statement, operating income has failed to scale efficiently with revenue, as evidenced by the 2026Q1 operating margin of 3.2% despite a significant revenue base, suggesting that fixed overhead and variable service costs continue to absorb the majority of incremental gross profit.
The company's operating leverage appears limited by the high variable cost structure required to maintain a 540-rig fleet. This indicates that management's ability to drive profitability is heavily dependent on maintaining high utilization rates, as the current cost base provides little cushion during periods of lower activity.
Analysis of the provided figures reveals that stock-based compensation consistently hovers around $1.3 million to $1.7 million per quarter, which represents a meaningful portion of net income and warrants scrutiny regarding the true cash-generative capacity of the business relative to reported earnings per share.
The persistent use of equity-based incentives suggests that reported net income may overstate the actual cash returns available to shareholders. Investors should consider the impact of this ongoing dilution on long-term EPS growth, especially given the thin net margins that rarely exceed 5%.
While the company maintains a clean balance sheet, the risk of margin compression remains high, as evidenced by the 2025Q3 period where operating margins dipped to 2.0%, highlighting the potential for rapid earnings deterioration if E&P operators further tighten their maintenance and completion budgets.
Short-term observers might focus on the company's low debt as a safety net, but the fundamental risk lies in the commoditization of well services. If regional consolidation among E&P customers continues, Ranger may face increased pressure to lower day rates, further threatening its already narrow profitability.
Quick answers to the most common questions about buying RNGR stock.
For fiscal year 2025, Ranger Energy Services, Inc. (RNGR) reported total revenue of $546.9M. This represents a 2479.7% increase compared to $21.2M in 2015.
Ranger Energy Services, Inc. (RNGR) is profitable, generating $12.3M in net income for the fiscal year ending 2025 with a net profit margin of 2.2%.
Ranger Energy Services, Inc. (RNGR) reported an operating income of $18.7M, resulting in an operating profit margin of 3.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Ranger Energy Services, Inc. (RNGR) generated $44.0M in gross profit for the year, representing a gross profit margin of 8.0%. This demonstrates the company's core pricing power and production efficiency.