SFL Corporation Ltd. (SFL) Income Statement

The revenue trend is highly volatile, swinging from 32.5% growth in 2024Q1 to a 30.7% decline in 2025Q3. This pattern indicates that growth is not organic but driven by lumpy asset transactions and the timing of charter expirations. The recent 6.5% growth in 2026Q2 may signal a stabilization, but the overall trend over the last ten quarters is one of contraction from a higher base, implying the company's active earning capacity has diminished.

The wide gross margin swings, such as the jump to 58.4% in 2025Q4 followed by a drop to 28.2% in 2025Q3, suggest the company's profitability is heavily influenced by non-recurring items or the accounting treatment of different charter types (operating vs. finance leases). The current 35.9% margin in 2026Q2 is above the recent average but remains well below the 39.1% seen in 2024Q1, implying that the fleet's earning power per dollar of revenue may be under pressure.

The spread between operating and net margin has widened considerably, from a 17.7 percentage point gap in 2024Q1 to a 15.7 point gap in 2026Q2. While operating income has been relatively stable, net income has been erratic, swinging from a $45.3M profit to a $31.9M loss. This pattern implies that the company's capital structure and financing costs are the primary determinants of shareholder returns, not operational efficiency.

The COGS ratio has fluctuated significantly, from a low of 41.6% in 2025Q4 to a high of 78.0% in 2025Q2. This volatility likely reflects the mix of time charters (where SFL bears operating costs) versus bareboat charters (where it does not). The recent increase in COGS to 64.0% in 2026Q2, from 41.6% in 2025Q4, suggests a shift back toward more operationally intensive charters, which could pressure margins if charter rates do not compensate for the higher cost base.