Revenue rebounded 56.5% year-over-year to $664.8M in 2026Q2, but gross margins have swung wildly from -7.9% in 2025Q4 to 76.6% in 2026Q2, highlighting extreme commodity price sensitivity.
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 | 1.98B | 1.78B | 1.97B | 1.46B | 1.65B | 1.24B | 575.94M | 908.06M | 891.29M | 410.32M | 249.82M | 309.72M |
| Revenue Growth % | 2.44% | -9.8% | 35.37% | -11.75% | 32.74% | 116.09% | -36.58% | 1.88% | 117.22% | 64.25% | -19.34% | - |
| Cost of Goods Sold | 1.37B | 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 | 609.66M | 51.36M | 382.59M | 402.28M | 925.77M | 561.58M | -36.03M | 317.36M | 454.59M | 142.33M | -1.19M | -77.38M |
| Gross Margin % | 30.8% | 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 | 545.59M | 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 | 166.92M | 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 | 64.07M | -105.8M | 172.93M | 209.79M | 736.12M | 374.62M | -421.31M | 213.09M | 253.13M | 45.3M | -80.68M | -777.65M |
| Operating Margin % | 3.24% | -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 | 1.13B | 1.08B | 1.31B | 959.48M | 1.21B | 828.74M | -7.22M | 593.41M | 577.19M | 221.95M | 179.63M | -545.57M |
| EBITDA Margin % | 56.93% | 60.43% | 66.58% | 65.81% | 73.05% | 66.59% | -1.25% | 65.35% | 64.76% | 54.09% | 71.9% | -176.15% |
| EBITDA Growth % | 8.08% | -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) | 1.06B | 1.18B | 1.14B | 749.69M | 470.63M | 454.12M | 414.09M | 380.32M | 324.06M | 176.65M | 260.31M | 232.08M |
| EBIT | -406.56M | -441.11M | 116.25M | 299.88M | 495.49M | -51.45M | -330.61M | 120.44M | 354.09M | 18M | -137.67M | -595.14M |
| Net Interest Income | -163.51M | -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 | 163.51M | 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 | -562.81M | -498.69M | -244.31M | -83.06M | -351.67M | -559.2M | -8.71M | -190.51M | -28.67M | -108.17M | -127.41M | 130.97M |
| Pretax Income | -498.74M | -604.49M | -71.39M | 126.73M | 384.45M | -184.59M | -430.02M | 22.59M | 224.46M | -62.87M | -208.09M | -646.68M |
| Pretax Margin % | -25.2% | -33.96% | -3.62% | 8.69% | 23.27% | -14.83% | -74.66% | 2.49% | 25.18% | -15.32% | -83.29% | -208.8% |
| Income Tax | -93.11M | -109.17M | 5M | -60.6M | 2.54M | -1.64M | 35.58M | -36.14M | 2.92M | 0 | 0 | 0 |
| Effective Tax Rate % | 18.67% | 18.06% | -7.01% | -47.81% | 0.66% | 0.89% | -8.27% | -160% | 1.3% | 0% | 0% | 0% |
| Net Income | -407.05M | -496.36M | -76.39M | 187.33M | 381.92M | -182.95M | -465.61M | 58.73M | 221.54M | -62.87M | -208.09M | -646.68M |
| Net Margin % | -20.56% | -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 % | -136.46% | -549.74% | -140.78% | -50.95% | 308.75% | 60.71% | -892.8% | -73.49% | 452.39% | 69.79% | 67.82% | - |
| Net Income (Continuing) | -405.63M | -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 | 522K | 139K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -2.39 | -2.82 | -0.43 | 1.55 | 4.56 | -2.24 | -6.88 | 1.08 | 4.81 | -1.16 | -3.84 | -11.94 |
| EPS Growth % | -143.3% | -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 | 170.09M | 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 | 166.98M | 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
Commodity price and hedging volatility
Metrics are mathematically derived from official filings.
Revenue Rebound Masks Underlying Volatility
Revenue surged 56.5% year-over-year to $664.8M in 2026Q2, according to the latest quarterly report, but this follows a 19.2% decline in 2025Q4, indicating a highly erratic growth pattern.
The sharp revenue acceleration in 2026Q2 appears driven by a combination of higher production and favorable commodity prices, yet the preceding quarters show significant contraction, with 2025Q4 revenue down 19.2% year-over-year. This volatility suggests that growth is not durable but rather tied to external market conditions. Investors should monitor whether the company can sustain this momentum or if it will revert to the negative trend seen in 2025.
Gross Margin Swing Reflects Commodity Exposure
Gross margin swung from -7.9% in 2025Q4 to 76.6% in 2026Q2, as per the income statement data, highlighting extreme sensitivity to oil and gas price fluctuations.
The dramatic improvement in gross margin is likely attributable to a spike in realized commodity prices, but the negative margins in 2025Q4 and low single-digit margins in 2025Q2 underscore the company's lack of pricing power. Compared to peers like CIVI with a 41.2% gross margin, Talos's margins are highly cyclical and dependent on external factors. This suggests that the company's profitability is not structurally sound but rather at the mercy of commodity cycles.
Operating Leverage Amplifies Earnings Swings
Operating income swung from -$273.6M in 2025Q2 to $198.2M in 2026Q2, as reported in financial statements, demonstrating extreme operating leverage that magnifies both gains and losses.
The fixed-cost nature of E&P operations means that revenue changes have outsized effects on operating income, as seen in the 2026Q2 operating margin of 29.8% versus -64.4% in 2025Q2. This leverage works both ways, and the company's ability to cover fixed costs during downturns is a concern. The SG&A expense has remained relatively stable around $40M, indicating that overhead is not the driver; rather, it is the commodity price that dictates the outcome.
Net Income Distorted by Non-Operating Items
Net income swung from -$256.2M in 2026Q1 to $149.7M in 2026Q2, per the latest quarterly data, but EPS growth of 183.8% is not indicative of operational consistency.
The large swings in net income, including a -$204.6M loss in 2025Q4, suggest that non-operating items such as impairments, hedging losses, or tax adjustments are significantly impacting reported earnings. Stock-based compensation is modest at $6.4M in 2026Q2, so the volatility is likely from operational and non-cash charges. Investors should scrutinize the quality of earnings, as the positive EPS in 2026Q2 may not be sustainable if commodity prices retreat.
COGS Volatility Drives Profitability
COGS as a percentage of revenue ranged from 23.4% in 2026Q2 to 107.9% in 2025Q4, based on reported figures, indicating that cost control is secondary to commodity price movements.
The extreme variability in COGS, which exceeded revenue in 2025Q4, suggests that the company incurs significant production costs that are not aligned with revenue, possibly due to hedging losses or write-downs. SG&A has been relatively stable, indicating that the primary cost driver is the cost of production, which is influenced by external factors. This implies that management has limited control over the cost structure, and profitability is largely determined by market conditions.
2026Q2 Marks a Turning Point
The 2026Q2 quarter represents a clear inflection, with revenue and margins recovering from a trough in 2025Q4, as per the income statement data, but the sustainability of this recovery is uncertain.
After a period of negative gross margins and operating losses in 2025, the 2026Q2 results show a dramatic improvement, with gross margin at 76.6% and operating income of $198.2M. This inflection appears driven by a rebound in commodity prices, but the company's history of volatility suggests that this could be temporary. The lasting impact will depend on whether the company can maintain production levels and manage costs in a lower-price environment.
What Could Invalidate the Base Case
The 2026Q2 profitability surge may be unsustainable if commodity prices retreat, as historical data shows gross margins swinging from -7.9% to 76.6% within two quarters.
Short-sellers would likely highlight the extreme volatility in gross margins and net income, which suggests that the recent positive results are not indicative of a stable business model. The company's reliance on commodity prices for profitability, as evidenced by the negative operating income in 2025Q2 and 2025Q4, indicates that any downturn in oil and gas prices could quickly reverse the gains. Additionally, the large net losses in 2026Q1 and 2025Q4 may point to underlying cost or hedging issues that are not fully resolved. Investors should be cautious about extrapolating the 2026Q2 performance into future quarters.