Revenue growth accelerated to 78.9% in 2026Q1, though profitability remains strained by high fixed costs, resulting in an operating margin of 18.6%.
| Revenue | 3.02B | 2.52B | 2.07B | 2.44B | 2.41B | 1.77B | 3.61B |
| Revenue Growth % | 44.85% | 21.8% | -15.01% | 1.12% | 35.89% | - | - |
| Cost of Revenue | 830M | 1.27B | 1.41B | 1.38B | 1.64B | 1.53B | 3.41B |
| Gross Profit | 1.06B | 1.25B | 664M | 1.05B | 770M | 244M | 203M |
| Gross Margin % | 35.2% | 49.7% | 32.03% | 43.26% | 31.92% | 13.75% | 5.62% |
| Gross Profit Growth % | - | 89.01% | -37.06% | 37.01% | 215.57% | - | - |
| Operating Expenses | 1.05B | 1.33B | 438M | 971M | 529M | 1.34B | 65M |
| Other Operating Expenses | - | - | - | - | - | - | - |
| EBITDA | 396M | 208M | 647M | 591M | 884M | -449M | 717M |
| EBITDA Margin % | 13.1% | 8.24% | 31.21% | 24.23% | 36.65% | -25.3% | 19.84% |
| EBITDA Growth % | -21.43% | -67.85% | 9.48% | -33.14% | 296.88% | - | - |
| Depreciation & Amortization | 151M | 279M | 421M | 507M | 643M | 651M | 579M |
| D&A / Revenue % | 5% | 11.05% | 20.31% | 20.79% | 26.66% | 36.68% | 16.02% |
| Operating Income (EBIT) | 245M | -71M | 226M | 84M | 241M | -1.1B | 138M |
| Operating Margin % | 8.1% | -2.81% | 10.9% | 3.44% | 9.99% | -61.97% | 3.82% |
| Operating Income Growth % | - | -131.42% | 169.05% | -65.15% | 121.91% | - | - |
| Interest Expense | 2M | 302M | 238M | 335M | 359M | 325M | 211M |
| Interest Coverage | - | 0.45x | 5.67x | 1.40x | -2.70x | -2.93x | 0.65x |
| Interest / Revenue % | 0.07% | 11.96% | 11.48% | 13.74% | 14.88% | 18.31% | 5.84% |
| Non-Operating Income | 1000K | -1000K | 1000K | 1000K | -1000K | -1000K | -1000K |
| Pretax Income | 102M | -166M | 1.11B | 871M | -1.33B | -1.28B | -368M |
| Pretax Margin % | 3.37% | -6.57% | 53.59% | 35.71% | -55.06% | -71.94% | -10.18% |
| Income Tax | 87M | 53M | 98M | 263M | -35M | -300M | -27M |
| Effective Tax Rate % | 85.29% | -31.93% | 8.82% | 30.2% | 2.64% | 23.49% | 7.34% |
| Net Income | -21M | -219M | 998M | 613M | -1.29B | -977M | -341M |
| Net Margin % | -0.69% | -8.67% | 48.14% | 25.13% | -53.44% | -55.04% | -9.44% |
| Net Income Growth % | -103.69% | -121.94% | 62.81% | 147.56% | -31.93% | - | - |
| EPS (Diluted) | -0.44 | -4.79 | 17.67 | 10.38 | -28.66 | -21.72 | -3.10 |
| EPS Growth % | -106.35% | -127.11% | 70.23% | 136.22% | -31.95% | - | - |
| EPS (Basic) | - | -4.79 | 18.39 | 10.38 | -28.66 | -21.72 | -3.10 |
| Diluted Shares Outstanding | 47.43M | 45.69M | 56.49M | 59.03M | 44.97M | 44.97M | 109.9M |
High regulatory and operational exposure
According to recent financial disclosures, Talen Energy reported a significant 78.9% revenue growth in 2026Q1, reflecting a shift toward high-value infrastructure contracts that appear to be decoupling the company from traditional wholesale market volatility and seasonal demand cycles inherent in the PJM Interconnection region.
The sharp revenue acceleration suggests that the company is successfully transitioning from a merchant power generator to a specialized infrastructure provider. Investors should monitor whether this growth trajectory remains sustainable as the company scales its data center co-location strategy against potential regulatory pushback.
As reported in quarterly filings, the company’s operating margin fluctuated significantly, reaching 18.6% in 2026Q1, yet the persistent volatility in operating income suggests that high fixed costs associated with nuclear and fossil fuel fleet maintenance continue to exert substantial pressure on overall profitability.
The negative operating margins observed in previous periods indicate that depreciation and administrative overhead remain significant hurdles to achieving consistent profitability. The company's ability to scale revenue must outpace these fixed costs to demonstrate a durable improvement in core earnings power.
Based on the provided income statement data, reported EPS has shown extreme volatility, ranging from -7.70 in 2025Q4 to 1.33 in 2026Q1, which appears largely driven by fresh-start accounting adjustments following the company's recent emergence from Chapter 11 bankruptcy proceedings.
Investors should exercise caution when interpreting these earnings figures, as they likely contain non-recurring items and revaluation effects that do not reflect the company's true operational cash flow. A focus on EBITDA and underlying contract performance is necessary to strip away the accounting noise.
While the income statement highlights strong revenue growth, it fails to capture the latent risk of FERC-level regulatory challenges to the Susquehanna co-location model, which could fundamentally alter the economics of the company's primary growth lever if behind-the-meter sales are restricted.
The current financial presentation may mask the potential for future earnings compression if regulatory bodies force a change in how the company recovers costs from data center tenants. The reliance on this specific infrastructure strategy warrants further investigation into the durability of these long-term power purchase agreements.
Quick answers to the most common questions about buying TLN stock.
For fiscal year 2025, Talen Energy Corporation (TLN) reported total revenue of $2.52B. This represents a 30.1% decline compared to $3.61B in 2015.
Talen Energy Corporation (TLN) reported a net loss of $219.0M for the fiscal year ending 2025.
Talen Energy Corporation (TLN) reported an operating income of $-71.0M, resulting in an operating profit margin of -2.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Talen Energy Corporation (TLN) generated $1.25B in gross profit for the year, representing a gross profit margin of 49.7%. This demonstrates the company's core pricing power and production efficiency.