Revenue growth remains in a contractionary phase, with the most recent quarter showing a 7.9% year-over-year decline and a net margin of -54.2% as fixed costs overwhelm gross profit.
| Sales/Revenue | 1.74B | 1.78B | 1.97B | 1.46B | 1.65B | 1.24B | 575.94M | 908.06M | 891.29M | 410.32M | 249.82M | 309.72M |
| Revenue Growth % | -15.43% | -9.8% | 35.37% | -11.75% | 32.74% | 116.09% | -36.58% | 1.88% | 117.22% | 64.25% | -19.34% | - |
| Cost of Goods Sold | 1.23B | 1.73B | 1.59B | 1.06B | 726.21M | 682.96M | 611.96M | 590.71M | 436.7M | 267.99M | 251.01M | 387.1M |
| COGS % of Revenue | - | 97.11% | 80.61% | 72.41% | 43.96% | 54.88% | 106.26% | 65.05% | 49% | 65.31% | 100.48% | 124.98% |
| Gross Profit | 40.64M | 51.36M | 382.59M | 402.28M | 925.77M | 561.58M | -36.03M | 317.36M | 454.59M | 142.33M | -1.19M | -77.38M |
| Gross Margin % | 2.34% | 2.89% | 19.39% | 27.59% | 56.04% | 45.12% | -6.26% | 34.95% | 51% | 34.69% | -0.48% | -24.98% |
| Gross Profit Growth % | - | -86.58% | -4.89% | -56.55% | 64.85% | 1658.74% | -111.35% | -30.19% | 219.39% | 12090.99% | 98.47% | - |
| Operating Expenses | 603.01M | 157.16M | 209.67M | 192.49M | 189.65M | 186.97M | 385.28M | 104.26M | 201.46M | 97.03M | 79.49M | 96.88M |
| OpEx % of Revenue | - | 8.83% | 10.62% | 13.2% | 11.48% | 15.02% | 66.9% | 11.48% | 22.6% | 23.65% | 31.82% | 31.28% |
| Selling, General & Admin | 161.72M | 155.37M | 201.52M | 158.49M | 99.75M | 78.68M | 79.17M | 77.21M | 101.16M | 47.42M | 41.79M | 53.63M |
| SG&A % of Revenue | - | 8.73% | 10.21% | 10.87% | 6.04% | 6.32% | 13.75% | 8.5% | 11.35% | 11.56% | 16.73% | 17.31% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 1.79M | 8.15M | 34M | 89.9M | 108.29M | 306.11M | 27.05M | 1.01M | 329K | 405K | 314K |
| Operating Income | -433.34M | -105.8M | 172.93M | 209.79M | 736.12M | 374.62M | -421.31M | 213.09M | 253.13M | 45.3M | -80.68M | -777.65M |
| Operating Margin % | -24.91% | -5.94% | 8.76% | 14.39% | 44.56% | 30.1% | -73.15% | 23.47% | 28.4% | 11.04% | -32.29% | -251.09% |
| Operating Income Growth % | - | -161.18% | -17.57% | -71.5% | 96.5% | 188.92% | -297.71% | -15.82% | 458.78% | 156.15% | 89.63% | - |
| EBITDA | 436.96M | 1.08B | 1.31B | 959.48M | 1.21B | 828.74M | -7.22M | 593.41M | 577.19M | 221.95M | 179.63M | -545.57M |
| EBITDA Margin % | 25.12% | 60.43% | 66.58% | 65.81% | 73.05% | 66.59% | -1.25% | 65.35% | 64.76% | 54.09% | 71.9% | -176.15% |
| EBITDA Growth % | -67.84% | -18.13% | 36.96% | -20.49% | 45.61% | 11573.61% | -101.22% | 2.81% | 160.06% | 23.56% | 132.93% | - |
| D&A (Non-Cash Add-back) | 1.1B | 1.18B | 1.14B | 749.69M | 470.63M | 454.12M | 414.09M | 380.32M | 324.06M | 176.65M | 260.31M | 232.08M |
| EBIT | -390.2M | -441.11M | 116.25M | 299.88M | 495.49M | -51.45M | -330.61M | 120.44M | 354.09M | 18M | -137.67M | -595.14M |
| Net Interest Income | -204.34M | -163.38M | -187.64M | -173.15M | -125.5M | -133.14M | -99.42M | -97.85M | -90.11M | -80.93M | -70.42M | -51.54M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 165.16M | 163.38M | 187.64M | 173.15M | 125.5M | 133.14M | 99.42M | 97.85M | 90.11M | 80.93M | 70.42M | 51.54M |
| Other Income/Expense | -161.19M | -498.69M | -244.31M | -83.06M | -351.67M | -559.2M | -8.71M | -190.51M | -28.67M | -108.17M | -127.41M | 130.97M |
| Pretax Income | -915.83M | -604.49M | -71.39M | 126.73M | 384.45M | -184.59M | -430.02M | 22.59M | 224.46M | -62.87M | -208.09M | -646.68M |
| Pretax Margin % | -52.65% | -33.96% | -3.62% | 8.69% | 23.27% | -14.83% | -74.66% | 2.49% | 25.18% | -15.32% | -83.29% | -208.8% |
| Income Tax | -43.79M | -109.17M | 5M | -60.6M | 2.54M | -1.64M | 35.58M | -36.14M | 2.92M | 0 | 0 | 0 |
| Effective Tax Rate % | 4.78% | 18.06% | -7.01% | -47.81% | 0.66% | 0.89% | -8.27% | -160% | 1.3% | 0% | 0% | 0% |
| Net Income | -742.65M | -496.36M | -76.39M | 187.33M | 381.92M | -182.95M | -465.61M | 58.73M | 221.54M | -62.87M | -208.09M | -646.68M |
| Net Margin % | -42.7% | -27.88% | -3.87% | 12.85% | 23.12% | -14.7% | -80.84% | 6.47% | 24.86% | -15.32% | -83.29% | -208.8% |
| Net Income Growth % | -2936.93% | -549.74% | -140.78% | -50.95% | 308.75% | 60.71% | -892.8% | -73.49% | 452.39% | 69.79% | 67.82% | - |
| Net Income (Continuing) | -741.62M | -495.32M | -76.39M | 187.33M | 381.92M | -182.95M | -465.61M | 58.73M | 221.54M | -62.87M | -208.09M | -646.68M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 300K | 139K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -4.41 | -2.82 | -0.43 | 1.55 | 4.56 | -2.24 | -6.88 | 1.08 | 4.81 | -1.16 | -3.84 | -11.94 |
| EPS Growth % | -3010.45% | -555.81% | -127.74% | -66.01% | 303.57% | 67.44% | -737.04% | -77.55% | 514.66% | 69.79% | 67.84% | - |
| EPS (Basic) | - | -2.82 | -0.43 | 1.56 | 4.63 | -2.24 | -6.88 | 1.08 | 4.81 | -1.16 | -3.84 | -11.94 |
| Diluted Shares Outstanding | 168.38M | 175.14M | 175.6M | 120.75M | 83.68M | 81.77M | 67.66M | 54.41M | 46.06M | 54.16M | 54.16M | 54.16M |
| Basic Shares Outstanding | 168.38M | 175.14M | 175.6M | 119.89M | 82.45M | 81.77M | 67.66M | 54.19M | 46.06M | 54.16M | 54.16M | 54.16M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - |
Operational leverage and volatility
As reported in recent financial statements, Talos Energy has experienced a sustained period of revenue decline, with the most recent quarter showing a 7.9% year-over-year contraction, signaling that the company's production volumes are currently failing to offset the inherent natural decline of its mature offshore asset base.
The consistent downward trend in top-line performance suggests that the company's infrastructure-led exploration strategy is not yet yielding sufficient new production to replace legacy output. Investors should monitor whether this trajectory reflects a structural inability to scale or merely a temporary lull in the development of new subsea tie-backs.
Based on the provided income statement data, Talos Energy's gross margin has deteriorated significantly, reaching negative territory in late 2025, which highlights the extreme sensitivity of the company's deepwater cost structure to commodity price fluctuations and the high fixed-cost burden of maintaining aging offshore production infrastructure.
The inability to maintain positive gross margins suggests that the company's cost of production is currently misaligned with prevailing market prices. This volatility implies that the firm lacks the pricing power or operational efficiency required to remain profitable during periods of commodity price weakness.
According to the company's quarterly filings, operating income has swung into negative territory, indicating that the firm's SG&A and fixed operating expenses are currently scaling faster than gross profit, thereby eroding the company's ability to achieve meaningful operating leverage in its current offshore production environment.
The persistent negative operating margins suggest that the company's corporate overhead remains disproportionately high relative to its current production scale. This structure warrants further investigation into whether management can successfully rationalize its cost base without compromising the integrity of its deepwater infrastructure.
As evidenced by the reported figures, Talos Energy's net income has remained consistently negative over the last several quarters, with a net loss of $256.2 million in 2026Q1, suggesting that non-operating items and high interest obligations are significantly obscuring the company's underlying operational performance and cash-generating potential.
The recurring net losses indicate that the company is currently struggling to cover its capital-intensive debt obligations and decommissioning liabilities. Investors should be cautious, as the lack of positive net income makes traditional valuation metrics like P/E ratios inapplicable and highlights the reliance on external financing.
Based on the provided financial data, short-sellers may focus on the company's inability to generate consistent positive cash flow, as the recurring net losses and negative gross margins suggest that the current business model may be fundamentally unsustainable without a significant and sustained increase in commodity prices.
The reliance on M&A to drive scale, coupled with the high costs of deepwater operations, creates a risk profile that may be overly sensitive to regulatory and environmental liabilities. The market should consider whether the company's pivot to carbon capture is a strategic necessity or a distraction from core operational inefficiencies.
Quick answers to the most common questions about buying TALO stock.
For fiscal year 2025, Talos Energy Inc. (TALO) reported total revenue of $1.78B. This represents a 474.7% increase compared to $309.7M in 2015.
Talos Energy Inc. (TALO) reported a net loss of $496.4M for the fiscal year ending 2025.
Talos Energy Inc. (TALO) reported an operating income of $-105.8M, resulting in an operating profit margin of -5.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Talos Energy Inc. (TALO) generated $51.4M in gross profit for the year, representing a gross profit margin of 2.9%. This demonstrates the company's core pricing power and production efficiency.