Revenue has contracted significantly over the last nine quarters, culminating in a negative operating margin of -16.1% as of 2026Q1.
| Sales/Revenue | 323.52M | 320.63M | 386.27M | 563.61M | 501.99M | 291.34M | 225.15M | 321.1M | 240.6M | 134.24M | 149.47M |
| Revenue Growth % | -7.43% | -16.99% | -31.46% | 12.28% | 72.3% | 29.4% | -29.88% | 33.46% | 79.24% | -10.19% | - |
| Cost of Goods Sold | 321.67M | 307.65M | 208.09M | 250.28M | 254.86M | 189.99M | 167.99M | 174.08M | 150.37M | 81.19M | 52.03M |
| COGS % of Revenue | - | 95.95% | 53.87% | 44.41% | 50.77% | 65.21% | 74.61% | 54.22% | 62.5% | 60.48% | 34.81% |
| Gross Profit | 1.85M | 12.98M | 178.18M | 313.32M | 247.13M | 101.35M | 57.16M | 147.01M | 90.23M | 53.05M | 97.44M |
| Gross Margin % | 0.57% | 4.05% | 46.13% | 55.59% | 49.23% | 34.79% | 25.39% | 45.78% | 37.5% | 39.52% | 65.19% |
| Gross Profit Growth % | - | -92.72% | -43.13% | 26.79% | 143.84% | 77.32% | -61.12% | 62.92% | 70.11% | -45.56% | - |
| Operating Expenses | 44.64M | 41.25M | 69.4M | 72.72M | 72.76M | 64.25M | 53.05M | 99.05M | 48.86M | 30.02M | 56.73M |
| OpEx % of Revenue | - | 12.87% | 17.97% | 12.9% | 14.49% | 22.05% | 23.56% | 30.85% | 20.31% | 22.36% | 37.95% |
| Selling, General & Admin | 44.64M | 41.25M | 54.26M | 56.13M | 57.89M | 46.46M | 38.13M | 76.65M | 41.34M | 24.34M | 15.79M |
| SG&A % of Revenue | - | 12.87% | 14.05% | 9.96% | 11.53% | 15.95% | 16.93% | 23.87% | 17.18% | 18.13% | 10.57% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 15.14M | 16.59M | 14.87M | 17.79M | 14.93M | 22.4M | 8.28M | 519K | 0 |
| Operating Income | -42.79M | -28.27M | 108.78M | 240.61M | 174.37M | 37.1M | 4.1M | 47.97M | 40.91M | 21.46M | 40.31M |
| Operating Margin % | -13.23% | -8.82% | 28.16% | 42.69% | 34.74% | 12.73% | 1.82% | 14.94% | 17% | 15.99% | 26.97% |
| Operating Income Growth % | - | -125.99% | -54.79% | 37.99% | 370% | 804.63% | -91.45% | 17.25% | 90.65% | -46.77% | - |
| EBITDA | 48.94M | 61.45M | 124.42M | 324.58M | 254.48M | 107.62M | 69.72M | 106.87M | 80.24M | 51.6M | 81.64M |
| EBITDA Margin % | 15.13% | 19.17% | 32.21% | 57.59% | 50.7% | 36.94% | 30.96% | 33.28% | 33.35% | 38.44% | 54.62% |
| EBITDA Growth % | -68.08% | -50.61% | -61.67% | 27.55% | 136.47% | 54.37% | -34.77% | 33.19% | 55.49% | -36.79% | - |
| D&A (Non-Cash Add-back) | 91.72M | 89.72M | 15.64M | 83.98M | 80.11M | 70.52M | 65.61M | 58.9M | 39.33M | 30.15M | 41.33M |
| EBIT | -42.79M | -28.27M | 109.46M | 248.65M | 144.18M | 31.69M | 2.5M | 49.78M | 40.91M | 29.41M | 40.31M |
| Net Interest Income | -2.65M | -6.09M | -16.62M | -22.64M | -36.32M | -34.37M | -40.03M | -33.4M | -24.2M | 5.11M | 0 |
| Interest Income | 458K | 2.33M | 6.7M | 4.14M | 1.55M | 0 | 0 | 0 | 0 | 7.95M | 3.51M |
| Interest Expense | 3.11M | 8.42M | 23.32M | 26.78M | 37.87M | 34.37M | 40.03M | 33.4M | 24.2M | 2.85M | 0 |
| Other Income/Expense | -7.86M | -14.93M | -15.94M | -15.86M | -68.06M | -39.77M | -37.69M | -28.39M | -24.2M | 5.11M | 3.91M |
| Pretax Income | -50.64M | -43.2M | 92.84M | 224.75M | 106.31M | -2.67M | -33.59M | 19.58M | 16.71M | 26.57M | 44.22M |
| Pretax Margin % | -15.65% | -13.47% | 24.03% | 39.88% | 21.18% | -0.92% | -14.92% | 6.1% | 6.95% | 19.79% | 29.58% |
| Income Tax | -7.06M | -6.13M | 21.43M | 51.05M | 32.37M | 1.9M | -8.46M | 7.61M | 11.76M | 25.58M | 17.31M |
| Effective Tax Rate % | 13.95% | 14.18% | 23.08% | 22.71% | 30.45% | -71.26% | 25.17% | 38.85% | 70.34% | 96.31% | 39.15% |
| Net Income | -43.58M | -37.12M | 71.27M | 173.7M | 73.94M | -4.58M | -25.13M | 11.97M | 4.96M | 981K | 26.91M |
| Net Margin % | -13.47% | -11.58% | 18.45% | 30.82% | 14.73% | -1.57% | -11.16% | 3.73% | 2.06% | 0.73% | 18% |
| Net Income Growth % | -198.1% | -152.09% | -58.97% | 134.92% | 1715.8% | 81.79% | -309.91% | 141.57% | 405.2% | -96.35% | - |
| Net Income (Continuing) | -43.58M | -37.08M | 71.41M | 173.7M | 73.94M | -4.58M | -25.13M | 11.97M | 4.96M | 981K | 26.91M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -302K | -197K | 9K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.44 | -0.37 | 0.70 | 1.56 | 0.74 | -0.05 | -0.29 | 0.13 | 0.12 | 0.02 | 0.66 |
| EPS Growth % | -201.86% | -152.86% | -55.13% | 110.81% | 1661.18% | 83.66% | -323.08% | 8.33% | 397.93% | -96.36% | - |
| EPS (Basic) | - | -0.37 | 0.71 | 1.62 | 0.76 | -0.05 | -0.29 | 0.13 | 0.12 | 0.02 | 0.66 |
| Diluted Shares Outstanding | 99.93M | 99.52M | 101.44M | 105.32M | 100.06M | 96.61M | 96.02M | 94.5M | 40.63M | 40.63M | 40.63M |
| Basic Shares Outstanding | 99.93M | 99.52M | 100.14M | 101.35M | 97.21M | 96.61M | 96.02M | 94.5M | 40.63M | 40.63M | 40.63M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | 539.51% | 2401.73% | - |
Government contract concentration risk
As indicated by the most recent quarterly data, Target Hospitality has experienced a sustained period of top-line erosion, with revenue falling from $126.2 million in 2023Q4 to $72.8 million in 2026Q1, representing a significant departure from the growth levels observed in previous fiscal periods.
The consistent decline in quarterly revenue suggests that the company's core segments are struggling to maintain occupancy levels or contract pricing. This downward trajectory implies that the firm's reliance on cyclical energy-related demand and specific government contracts may be failing to provide the necessary stability to offset broader market headwinds.
Based on reported financial statements, the company's gross margin has collapsed from a peak of 49.3% in 2023Q4 to a negative 0.7% in 2026Q1, highlighting a severe inability to cover direct operating costs amidst the current revenue environment.
This rapid deterioration in gross profitability suggests that the company's fixed-cost base, primarily tied to its modular housing fleet, is no longer being adequately absorbed by current utilization rates. Investors should monitor whether this margin compression is a temporary result of contract transitions or a more permanent shift in the cost-to-revenue relationship.
According to recent SEC filings, Target Hospitality's operating income has swung from a positive $46.2 million in 2023Q4 to a loss of $11.7 million in 2026Q1, demonstrating that the company lacks the operational flexibility to scale expenses down in proportion to falling revenue.
The transition to negative operating margins indicates that the company's overhead and SG&A expenses are becoming increasingly burdensome relative to its diminished revenue base. This lack of operating leverage suggests that the business model may be highly sensitive to volume fluctuations, leaving little room for error in managing its fixed-cost structure.
Based on the provided income statement data, the company's inability to maintain positive net income for five consecutive quarters raises significant questions regarding the long-term viability of its current asset utilization strategy and the durability of its existing contract backlog.
While the company maintains a conservative debt profile, the persistent net losses suggest that the current business model may be fundamentally misaligned with the prevailing market demand. Analysts should investigate whether the company's specialized infrastructure can be repurposed for alternative revenue streams or if the current asset base is destined for further impairment.
Quick answers to the most common questions about buying TH stock.
For fiscal year 2025, Target Hospitality Corp. (TH) reported total revenue of $320.6M. This represents a 114.5% increase compared to $149.5M in 2016.
Target Hospitality Corp. (TH) reported a net loss of $37.1M for the fiscal year ending 2025.
Target Hospitality Corp. (TH) reported an operating income of $-28.3M, resulting in an operating profit margin of -8.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Target Hospitality Corp. (TH) generated $13.0M in gross profit for the year, representing a gross profit margin of 4.0%. This demonstrates the company's core pricing power and production efficiency.