Revenue rose 56.5% year over year to $664.8M in 2026Q2 before slipping to $596.0M in 2026Q3, but gross margin of roughly 76% stands far above the 4% to 21% range seen across 2024 and 2025, so the sustainability of this margin peak warrants close attention.
Talos Energy Inc. (TALO) annual income statement — 11-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 |
|---|
| Sales/Revenue | 2.13B | 1.78B | 1.97B | 1.46B | 1.65B | 1.24B | 575.94M | 908.06M | 891.29M | 410.32M | 249.82M | 309.72M |
| Revenue Growth % | 13.47% | -9.8% | 35.37% | -11.75% | 32.74% | 116.09% | -36.58% | 1.88% | 117.22% | 64.25% | -19.34% | - |
| Cost of Goods Sold | 1.11B | 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 | 1.01B | 51.36M | 382.59M | 402.28M | 925.77M | 561.58M | -36.03M | 317.36M | 454.59M | 142.33M | -1.19M | -77.38M |
| Gross Margin % | 47.58% | 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 | 703.96M | 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 | 168.51M | 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 | 307.19M | -105.8M | 172.93M | 209.79M | 736.12M | 374.62M | -421.31M | 213.09M | 253.13M | 45.3M | -80.68M | -777.65M |
| Operating Margin % | 14.45% | -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 | 1.38B | 1.08B | 1.31B | 959.48M | 1.21B | 828.74M | -7.22M | 593.41M | 577.19M | 221.95M | 65.84M | -545.57M |
| EBITDA Margin % | 64.89% | 60.43% | 66.58% | 65.81% | 73.05% | 66.59% | -1.25% | 65.35% | 64.76% | 54.09% | 26.35% | -176.15% |
| EBITDA Growth % | 49.47% | -18.13% | 36.96% | -20.49% | 45.61% | 11573.61% | -101.22% | 2.81% | 160.06% | 237.11% | 112.07% | - |
| D&A (Non-Cash Add-back) | 1.07B | 1.18B | 1.14B | 749.69M | 470.63M | 454.12M | 414.09M | 380.32M | 324.06M | 176.65M | 146.52M | 232.08M |
| EBIT | -321.05M | -441.11M | 116.25M | 299.88M | 495.49M | -51.45M | -330.61M | 120.44M | 354.09M | 18M | -137.67M | -595.14M |
| Net Interest Income | -162.86M | -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 | 162.86M | 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 | -719.76M | -498.69M | -244.31M | -83.06M | -351.67M | -559.2M | -8.71M | -190.51M | -28.67M | -108.17M | -127.41M | 130.97M |
| Pretax Income | -412.58M | -604.49M | -71.39M | 126.73M | 384.45M | -184.59M | -430.02M | 22.59M | 224.46M | -62.87M | -208.09M | -646.68M |
| Pretax Margin % | -19.41% | -33.96% | -3.62% | 8.69% | 23.27% | -14.83% | -74.66% | 2.49% | 25.18% | -15.32% | -83.29% | -208.8% |
| Income Tax | -21.79M | -109.17M | 5M | -60.6M | 2.54M | -1.64M | 35.58M | -36.14M | 2.92M | 0 | 0 | 0 |
| Effective Tax Rate % | 5.28% | 18.06% | -7.01% | -47.81% | 0.66% | 0.89% | -8.27% | -160% | 1.3% | 0% | 0% | 0% |
| Net Income | -392.38M | -496.36M | -76.39M | 187.33M | 381.92M | -182.95M | -465.61M | 58.73M | 221.54M | -62.87M | -208.09M | -646.68M |
| Net Margin % | -18.46% | -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 % | -10.15% | -549.74% | -140.78% | -50.95% | 308.75% | 60.71% | -892.8% | -73.49% | 452.39% | 69.79% | 67.82% | - |
| Net Income (Continuing) | -390.79M | -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 | 707K | 139K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -2.35 | -2.82 | -0.43 | 1.55 | 4.56 | -2.24 | -6.88 | 1.08 | 4.81 | -1.16 | -3.84 | -11.94 |
| EPS Growth % | -14.43% | -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 | 166.62M | 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 | 166.62M | 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 | - | - | - | - | - | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
Volatile upstream earnings exposure
Metrics are mathematically derived from official filings.
Revenue Rebounds Amid Volatile Quarters
Based on reported figures, TALO revenue rose 56.5% year over year to $664.8M in 2026Q2 before falling 32.4% growth to $596.0M in 2026Q3, indicating that top-line momentum remains highly uneven across quarters.
The swing from negative to strongly positive year-over-year growth across recent periods suggests revenue is driven by production timing and commodity price realization rather than a durable volume trend. The sequential decline into 2026Q3 implies investors should not extrapolate the 2026Q2 peak. Without segment or volume disclosure in the supplied data, the relative contributions of pricing and output cannot be separated, which warrants further investigation.
Gross Margin Recovery Remains Fragile
As reported in the quarterly income statements, TALO's gross margin moved from 4.2% in 2025Q2 to 76.6% in 2026Q2 and 76.4% in 2026Q3, a swing that reflects cost-base changes rather than a steady pricing trend.
Gross margins in the 4% to 21% range across most of 2024 and 2025 contrast sharply with the mid-70% level reported in the two most recent quarters, which may indicate a change in cost classification or an unusually favorable realization period. Given the single quarter-to-quarter fluctuation in COGS, the sustainability of the recent level cannot be confirmed from this data. Investors should monitor whether the 2026 margin profile holds across further reporting periods.
Operating Income Lags Gross Profit Swings
Based on TALO's reported figures, operating margin reached 29.8% in 2026Q2 but was negative in several 2025 quarters, with SG&A holding near $40M to $45M per quarter throughout the period.
Because SG&A remained broadly flat while gross profit moved between negative and above $500M per quarter, operating leverage appears to be driven almost entirely by the gross profit line rather than overhead discipline. The flat cost base means that revenue or margin shortfalls translate quickly into operating losses. This pattern suggests the business has high sensitivity to upstream operating conditions.
Net Income Diverges From Operating Results
According to reported financial statements, TALO posted a $149.7M net income in 2026Q2 yet reported a $256.2M net loss in 2026Q1 and an $81.2M loss in 2026Q3, with EPS swinging between -1.52 and 0.88.
Net income moves more sharply than operating income in several quarters, which suggests material non-operating or below-the-line items such as impairments, financing costs, or tax effects. The supplied data does not itemize these components, so their nature cannot be determined from this dataset. Investors should treat single-quarter EPS with caution and focus on the underlying drivers before relying on any one period.
Production Cost Drives Earnings Volatility
Based on reported figures, TALO's cost of goods sold ranged from $140.9M in 2026Q3 to $423.1M in 2025Q4, making cost of revenue the dominant line item and the primary source of quarterly earnings variability.
Cost of revenue consistently accounts for the majority of revenue, while SG&A remains a small and stable share, implying that expense discipline in overhead is not the main driver of results. The large swings in COGS relative to revenue suggest that operating cost structure, including production and commodity-linked expenses, determines profitability. The supplied data does not break COGS into components, limiting further attribution.
Recent Margin Strength May Not Persist
As reported in the income statement history, TALO's 2026 gross margins of roughly 76% stand far above the 4% to 21% range seen across 2024 and 2025, raising the question of whether the recent peak is sustainable.
Short-side analysts would likely point to the abrupt margin step-up and the sharp sequential revenue decline into 2026Q3 as evidence that recent profitability may be non-recurring. The combination of a sharply negative net result in 2026Q3 and volatile EPS suggests earnings power remains uncertain. Investors should treat the 2026 margin profile as unproven until it is confirmed across additional reporting periods.