Revenue growth accelerated to 31.2% year-over-year in 2026Q2, reaching $246.1M, with gross margins at 100% and operating margins of 78.0%, reflecting the low-cost royalty model's scalability.
Texas Pacific Land Corporation (TPL) annual income statement — 30-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 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 967.85M | 798.19M | 705.82M | 631.6M | 667.42M | 450.96M | 302.55M | 490.5M | 300.22M | 132.33M | 59.91M | 79.41M | 55.2M | 44.11M | 32.59M | 33.42M | 20.07M | 13.08M | 19.3M | 15.47M | 22.46M | 15.41M | 29.14M | 9.95M | 9.12M | 13.43M | 7.8M | 5.92M | 10.48M | 13.08M | 8.58M |
| Revenue Growth % | 25.3% | 13.09% | 11.75% | -5.37% | 48% | 49.05% | -38.32% | 63.38% | 126.87% | 120.87% | -24.56% | 43.86% | 25.15% | 35.36% | -2.49% | 66.55% | 53.35% | -32.19% | 24.77% | -31.15% | 45.78% | -47.13% | 192.77% | 9.11% | -32.07% | 72.19% | 31.65% | -43.47% | -19.85% | 52.37% | 33.24% |
| Cost of Goods Sold | 132.64M | 116.06M | 71.29M | 48.32M | 32.89M | 29.49M | 32.6M | 29.71M | 13.75M | 867K | 43.29K | 35.83K | 19.73K | 16.29K | 16.5K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| COGS % of Revenue | - | 14.54% | 10.1% | 7.65% | 4.93% | 6.54% | 10.78% | 6.06% | 4.58% | 0.66% | 0.07% | 0.05% | 0.04% | 0.04% | 0.05% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 835.2M | 682.13M | 634.54M | 583.27M | 634.53M | 421.47M | 269.95M | 460.78M | 286.47M | 131.46M | 59.87M | 79.38M | 55.18M | 44.09M | 32.57M | 33.42M | 20.07M | 13.08M | 19.3M | 15.47M | 22.46M | 15.41M | 29.14M | 9.95M | 9.12M | 13.43M | 7.8M | 5.92M | 10.48M | 13.08M | 8.58M |
| Gross Margin % | 86.3% | 85.46% | 89.9% | 92.35% | 95.07% | 93.46% | 89.22% | 93.94% | 95.42% | 99.34% | 99.93% | 99.95% | 99.96% | 99.96% | 99.95% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Gross Profit Growth % | - | 7.5% | 8.79% | -8.08% | 50.55% | 56.13% | -41.41% | 60.85% | 117.91% | 119.59% | -24.58% | 43.85% | 25.15% | 35.37% | -2.54% | 66.55% | 53.35% | -32.19% | 24.77% | -31.15% | 45.78% | -47.13% | 192.77% | 9.11% | -32.07% | 72.19% | 31.65% | -43.47% | -19.85% | 52.37% | 33.24% |
| Operating Expenses | 104.03M | 89.97M | 95.4M | 97.22M | 72.22M | 59.08M | 52.7M | 59.01M | 25.64M | 11.69M | 4.81M | 4.12M | 3.77M | 3.96M | 3.27M | 3.56M | 3.67M | 3.09M | 3.72M | 3.96M | 6.14M | 3.23M | 3.37M | 2.36M | 2.03M | 3.39M | 2.46M | 1.72M | 1.64M | 3.24M | 2.44M |
| OpEx % of Revenue | - | 11.27% | 13.52% | 15.39% | 10.82% | 13.1% | 17.42% | 12.03% | 8.54% | 8.83% | 8.03% | 5.19% | 6.82% | 8.98% | 10.03% | 10.66% | 18.28% | 23.64% | 19.28% | 25.59% | 27.35% | 21% | 11.56% | 23.69% | 22.24% | 25.21% | 31.49% | 29.11% | 15.63% | 24.81% | 28.46% |
| Selling, General & Admin | 96.27M | 81.7M | 34.48M | 89.83M | 63.49M | 58.93M | 52.7M | 59.01M | 25.64M | 8.52M | 3.02M | 2.64M | 2.07M | 2.53M | 2.32M | 2.58M | 2.88M | 2.44M | 2.78M | 579.69K | 555.37K | 487.23K | 442.65K | 405.61K | 445.15K | 530.55K | 468.94K | 413.62K | 398.69K | 491.39K | 430.58K |
| SG&A % of Revenue | - | 10.24% | 4.89% | 14.22% | 9.51% | 13.07% | 17.42% | 12.03% | 8.54% | 6.44% | 5.05% | 3.32% | 3.74% | 5.74% | 7.11% | 7.73% | 14.34% | 18.65% | 14.43% | 3.75% | 2.47% | 3.16% | 1.52% | 4.08% | 4.88% | 3.95% | 6.01% | 6.98% | 3.8% | 3.76% | 5.02% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 1 | 1 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | 0% | 0% | 0% | 0% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 8.26M | 60.92M | 7.38M | 8.73M | 144K | 0 | 0 | 0 | 3.17M | 1.79M | 1.48M | 1.7M | 1.43M | 949.76K | 980.07K | 790.77K | 653.59K | 935.42K | 3.38M | 5.59M | 2.75M | 2.93M | 1.95M | 1.58M | 2.85M | 1.99M | 1.31M | 1.24M | 2.75M | 2.01M |
| Operating Income | 731.17M | 592.16M | 539.14M | 486.05M | 562.31M | 362.39M | 217.25M | 401.77M | 260.83M | 119.78M | 55.06M | 75.26M | 51.42M | 40.13M | 29.3M | 30.74M | 16.4M | 9.99M | 15.58M | 11.51M | 16.32M | 12.17M | 25.77M | 7.6M | 7.09M | 10.04M | 5.34M | 4.2M | 8.84M | 9.83M | 6.14M |
| Operating Margin % | 75.55% | 74.19% | 76.38% | 76.96% | 84.25% | 80.36% | 71.81% | 81.91% | 86.88% | 90.51% | 91.9% | 94.76% | 93.14% | 90.98% | 89.92% | 91.97% | 81.72% | 76.36% | 80.72% | 74.41% | 72.65% | 79% | 88.44% | 76.31% | 77.76% | 74.79% | 68.51% | 70.89% | 84.37% | 75.19% | 71.54% |
| Operating Income Growth % | - | 9.83% | 10.92% | -13.56% | 55.16% | 66.81% | -45.93% | 54.03% | 117.77% | 117.55% | -26.84% | 46.36% | 28.12% | 36.95% | -4.67% | 87.44% | 64.13% | -35.86% | 35.35% | -29.48% | 34.05% | -52.77% | 239.32% | 7.07% | -29.37% | 87.99% | 27.23% | -52.5% | -10.07% | 60.15% | 29.19% |
| EBITDA | 806.62M | 654.69M | 564.3M | 500.81M | 577.68M | 378.65M | 231.65M | 410.68M | 263.42M | 120.15M | 55.1M | 75.28M | 51.44M | 40.15M | 29.32M | 30.75M | 16.41M | 10.03M | 15.61M | 11.54M | 16.35M | 12.2M | 25.81M | 7.65M | 7.14M | 10.1M | 5.39M | 4.25M | 8.9M | 9.88M | 6.15M |
| EBITDA Margin % | 83.34% | 82.02% | 79.95% | 79.29% | 86.55% | 83.97% | 76.56% | 83.73% | 87.74% | 90.8% | 91.97% | 94.79% | 93.18% | 91.02% | 89.97% | 92.01% | 81.8% | 76.68% | 80.91% | 74.64% | 72.81% | 79.19% | 88.57% | 76.82% | 78.31% | 75.18% | 69.08% | 71.7% | 84.94% | 75.57% | 71.72% |
| EBITDA Growth % | 26.52% | 16.02% | 12.68% | -13.31% | 52.56% | 63.46% | -43.59% | 55.9% | 119.24% | 118.06% | -26.81% | 46.36% | 28.12% | 36.93% | -4.65% | 87.34% | 63.59% | -35.74% | 35.25% | -29.42% | 34.04% | -52.73% | 237.56% | 7.04% | -29.24% | 87.41% | 26.83% | -52.29% | -9.9% | 60.54% | 29.21% |
| D&A (Non-Cash Add-back) | 75.44M | 62.53M | 25.16M | 14.76M | 15.38M | 16.26M | 14.39M | 8.91M | 2.58M | 376K | 43K | 25.37K | 19.73K | 16.29K | 16.5K | 12.68K | 15.39K | 42.14K | 36.8K | 36K | 37.13K | 28.79K | 38.17K | 50.93K | 49.97K | 52.12K | 44.41K | 48.03K | 60.32K | 49.2K | 15.73K |
| EBIT | 758.7M | 611.02M | 578.82M | 486.05M | 562.67M | 362.51M | 217.44M | 399.69M | 260.83M | 144.98M | 55.06M | 75.27M | 51.42M | 40.13M | 29.3M | 30.74M | 16.4M | 9.99M | 15.58M | 11.51M | 16.32M | 11.93M | 25.77M | 7.6M | 7.09M | 10.04M | 5.34M | 4.2M | 8.84M | 9.83M | 10.6M |
| Net Interest Income | 7M | 17.28M | 32.14M | 28.63M | 6.21M | 0 | 0 | 0 | 0 | 84K | 29.07K | 27K | 14.52K | 12.01K | 19.43K | 18.53K | 25.71K | 53.43K | 1.59M | 1.83M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 9.95M | 17.97M | 32.14M | 28.63M | 6.21M | 0 | 0 | 0 | 0 | 84K | 29.07K | 27K | 14.52K | 12.01K | 19.43K | 898.28K | 25.71K | 1.27M | 1.59M | 1.83M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 2.95M | 690K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 898.28K | 0 | 1.27M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 8.24M | 18.17M | 39.68M | 31.51M | 6.55M | 624K | 2.4M | 2.68M | 916K | 114K | 29.07K | 27.44K | 14.52K | 12.01K | 19.43K | 18.53K | 25.71K | 53.43K | 228.75K | 370K | 561.28K | 245.86K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Pretax Income | 739.42M | 610.33M | 578.82M | 517.56M | 568.86M | 363.02M | 219.66M | 402.25M | 261.75M | 119.86M | 55.09M | 75.28M | 51.43M | 40.14M | 29.32M | 30.76M | 16.42M | 10.04M | 15.8M | 11.88M | 16.88M | 12.17M | 25.77M | 7.6M | 7.09M | 10.04M | 5.34M | 4.2M | 8.84M | 9.83M | 6.14M |
| Pretax Margin % | 76.4% | 76.46% | 82.01% | 81.95% | 85.23% | 80.5% | 72.6% | 82.01% | 87.19% | 90.58% | 91.95% | 94.8% | 93.17% | 91.01% | 89.98% | 92.03% | 81.85% | 76.77% | 81.91% | 76.8% | 75.15% | 79% | 88.44% | 76.31% | 77.76% | 74.79% | 68.51% | 70.89% | 84.37% | 75.19% | 71.54% |
| Income Tax | 151.87M | 128.95M | 124.86M | 111.92M | 122.49M | 93.04M | 43.61M | 83.53M | 52.01M | 43.5M | 17.85M | 25.24M | 16.67M | 12.92M | 9.68M | 10.16M | 5.12M | 3.13M | 4.87M | 3.63M | 5.31M | 3.66M | 8.36M | 2.27M | 2.19M | 3.16M | 1.58M | 1.26M | 2.81M | 3.12M | 1.87M |
| Effective Tax Rate % | 20.54% | 21.13% | 21.57% | 21.62% | 21.53% | 25.63% | 19.85% | 20.76% | 19.87% | 36.29% | 32.4% | 33.53% | 32.41% | 32.2% | 32.99% | 33.04% | 31.15% | 31.17% | 30.78% | 30.54% | 31.45% | 30.07% | 32.44% | 29.82% | 30.91% | 31.44% | 29.66% | 30.04% | 31.76% | 31.78% | 30.53% |
| Net Income | 587.55M | 481.38M | 453.96M | 405.64M | 446.36M | 269.98M | 176.05M | 318.73M | 209.74M | 76.36M | 37.24M | 50.04M | 34.77M | 27.22M | 19.65M | 20.59M | 11.31M | 6.91M | 10.94M | 8.25M | 11.57M | 8.51M | 17.41M | 5.33M | 4.9M | 6.89M | 3.76M | 2.94M | 6.03M | 6.71M | 4.26M |
| Net Margin % | 60.71% | 60.31% | 64.32% | 64.23% | 66.88% | 59.87% | 58.19% | 64.98% | 69.86% | 57.71% | 62.16% | 63.01% | 62.98% | 61.71% | 60.29% | 61.62% | 56.36% | 52.84% | 56.69% | 53.34% | 51.51% | 55.25% | 59.76% | 53.55% | 53.72% | 51.28% | 48.19% | 49.59% | 57.57% | 51.29% | 49.69% |
| Net Income Growth % | 23.33% | 6.04% | 11.91% | -9.12% | 65.33% | 53.35% | -44.77% | 51.97% | 174.66% | 105.05% | -25.58% | 43.93% | 27.73% | 38.53% | -4.6% | 82.11% | 63.56% | -36.8% | 32.61% | -28.7% | 35.91% | -51.11% | 226.69% | 8.76% | -28.84% | 83.25% | 27.92% | -51.31% | -10.04% | 57.28% | 28.1% |
| Net Income (Continuing) | 587.55M | 481.38M | 453.96M | 405.64M | 446.36M | 269.98M | 176.05M | 318.73M | 209.74M | 97.23M | 37.24M | 50.04M | 34.77M | 27.22M | 19.65M | 20.59M | 11.31M | 6.91M | 10.94M | 8.25M | 11.57M | 8.51M | 17.41M | 5.33M | 4.9M | 6.89M | 3.76M | 2.94M | 6.03M | 6.71M | 4.3M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 8.51 | 6.97 | 6.57 | 5.86 | 6.42 | 3.87 | 2.52 | 4.57 | 2.99 | 1.38 | 0.59 | 0.68 | 0.46 | 0.35 | 0.73 | 0.25 | 0.13 | 0.08 | 0.12 | 0.09 | 0.12 | 0.09 | 0.18 | 0.05 | 0.05 | 0.06 | 0.03 | 0.02 | 0.05 | 0.05 | 0.03 |
| EPS Growth % | 23.13% | 6.04% | 12.11% | -8.67% | 65.89% | 53.37% | -44.74% | 52.56% | 117.43% | 134.66% | -13.3% | 47.1% | 31.43% | -52.27% | 199.22% | 88.8% | 69.27% | -34.35% | 34.56% | -27.66% | 37.76% | -50.32% | 237.18% | 11.96% | -25.09% | 89.8% | 32.65% | -49.86% | -6.77% | 63.72% | 31.68% |
| EPS (Basic) | - | 6.98 | 6.57 | 5.86 | 6.42 | 3.87 | 2.52 | 4.57 | 2.99 | 1.38 | 0.59 | 0.68 | 0.46 | 0.35 | 0.73 | 0.25 | 0.13 | 0.08 | 0.12 | 0.09 | 0.12 | 0.09 | 0.18 | 0.05 | 0.05 | 0.06 | 0.03 | 0.02 | 0.05 | 0.05 | 0.03 |
| Diluted Shares Outstanding | 69.04M | 69.03M | 69.06M | 69.18M | 69.54M | 69.77M | 69.81M | 69.81M | 70.09M | 70.69M | 71.9M | 73.78M | 75.58M | 77.41M | 26.82M | 252.1M | 261.36M | 270.48M | 280.98M | 285.11M | 289.24M | 293.16M | 297.94M | 307.51M | 316.55M | 333.22M | 345.13M | 357.88M | 368.55M | 381.95M | 397.6M |
| Basic Shares Outstanding | 68.97M | 68.95M | 69.06M | 69.18M | 69.53M | 69.77M | 69.81M | 69.81M | 70.09M | 70.69M | 71.9M | 73.78M | 75.58M | 77.41M | 26.82M | 252.1M | 261.36M | 270.48M | 279.57M | 284.48M | 289.24M | 293.16M | 297.94M | 307.51M | 316.55M | 333.22M | 345.13M | 357.3M | 366.88M | 378.83M | 397.6M |
| Dividend Payout Ratio | - | 30.7% | 76.51% | 24.65% | 55.4% | 31.58% | 44.06% | 14.6% | 15.09% | 13.99% | 6.73% | 4.8% | 6.56% | - | 21.86% | 9.71% | 17.4% | 27.92% | 17.23% | 20.57% | 50.76% | 14.14% | 28.49% | 32.23% | 19.53% | 14.57% | 27.51% | 36.33% | 18.28% | 16.92% | 27.64% |
Quick answers to the most common questions about buying TPL stock.
For fiscal year 2025, Texas Pacific Land Corporation (TPL) reported total revenue of $798.2M. This represents a 9201.7% increase compared to $8.6M in 1996.
Texas Pacific Land Corporation (TPL) is profitable, generating $481.4M in net income for the fiscal year ending 2025 with a net profit margin of 60.3%.
Texas Pacific Land Corporation (TPL) reported an operating income of $592.2M, resulting in an operating profit margin of 74.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Texas Pacific Land Corporation (TPL) generated $682.1M in gross profit for the year, representing a gross profit margin of 85.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Concentration in Permian royalties
Metrics are mathematically derived from official filings.
Revenue Momentum Accelerates on Royalty Volumes
TPL's revenue grew 31.2% year-over-year in 2026Q2, reaching $246.1M, according to the latest quarterly report, marking the fastest pace in the observed period and suggesting sustained demand for Permian acreage.
The sequential acceleration from 20.8% growth in 2026Q1 to 31.2% in 2026Q2 indicates that the company is benefiting from both higher oil and gas volumes and potentially favorable pricing. This trend appears durable given the long-term nature of royalty contracts, though investors should monitor commodity price volatility as a potential headwind.
Exceptional Gross Margins Reflect Low-Cost Royalty Model
Gross margin reached 100% in 2026Q2, as reported in financial statements, with no COGS, underscoring TPL's asset-light royalty structure that yields industry-leading profitability compared to peers like VNOM and BSM.
The absence of COGS in the latest quarter is consistent with the company's royalty-based revenue model, where production costs are borne by operators. This structural advantage results in gross margins that are significantly higher than the peer average of around 56%, providing a wide moat. However, the variability in reported COGS across quarters (e.g., negative COGS in 2025Q4) suggests accounting adjustments that warrant attention.
Operating Leverage Amplifies Revenue Gains
Operating income grew 33.4% year-over-year in 2026Q2 to $191.8M, outpacing revenue growth of 31.2%, as per the income statement, demonstrating strong operating leverage from minimal fixed costs.
SG&A expenses were only $8.0M in 2026Q2, representing just 3.3% of revenue, down from 10.5% in 2025Q2. This efficiency indicates that incremental revenue flows almost entirely to the bottom line, a hallmark of the royalty model. The operating margin of 78.0% is among the highest in the sector, and the trend suggests that as revenue scales, margin expansion may continue.
High-Quality Earnings with Minimal Dilution
Net income of $153.9M in 2026Q2 translated to EPS of $2.23, with stock-based compensation of $9.5M, as disclosed in filings, representing only 6.2% of net income, indicating limited dilution.
The low SBC relative to net income suggests that reported earnings are of high quality and not significantly inflated by non-cash charges. The effective tax rate appears stable, and there are no notable non-operating items distorting net income. This supports the reliability of EPS growth, which accelerated to 32.5% year-over-year in 2026Q2.
Minimal Cost Base Enhances Profitability
SG&A expenses of $8.0M in 2026Q2, as reported, were the lowest in the observed period, representing just 3.3% of revenue, reflecting disciplined overhead management and a scalable business model.
The company's cost structure is dominated by SG&A, with no R&D and minimal COGS, allowing for exceptional operating margins. The fluctuation in SG&A across quarters (e.g., negative in 2025Q4) may be due to timing of accruals or one-time items, but the overall trend is downward, indicating strong expense discipline. This cost efficiency is a key driver of TPL's superior profitability relative to peers.
2026Q2 Marks Accelerated Growth Inflection
The 2026Q2 quarter stands out as an inflection point, with revenue growth jumping to 31.2% and EPS growth to 32.5%, as per the income statement, the highest in the series, signaling a potential shift to a higher growth trajectory.
Prior to 2026Q2, revenue growth had been in the high single digits to low twenties, but the acceleration suggests that TPL is benefiting from increased drilling activity on its lands. The sustained improvement in margins and operating leverage during this period indicates that the company may be entering a phase of accelerated value creation, though investors should assess whether this is driven by temporary commodity price spikes or durable volume growth.
What Could Invalidate the Base Case
Despite TPL's stellar margins, the reliance on Permian royalty volumes exposes it to commodity price cycles, as evidenced by revenue growth volatility from 7.3% to 31.2% over the past ten quarters.
Short-sellers might argue that the 100% gross margin in 2026Q2 is an anomaly, given the negative COGS in 2025Q4, and that the company's growth is heavily dependent on oil and gas prices, which are outside its control. Additionally, the lack of diversification beyond the Permian Basin could amplify downside risk if drilling activity slows. Investors should monitor whether the recent acceleration is sustainable or a temporary peak driven by favorable pricing.