The company's operating margin has collapsed to -33.3% in 2026Q1, reflecting a structural inability to scale its fixed cost base against fluctuating revenue growth.
| Sales/Revenue | 3.8B | 3.72B | 3.77B | 3.59B | 3.33B | 2.06B | 1.25B | 2.51B | 2.16B | 1.71B | 1.6B |
| Revenue Growth % | -0.47% | -1.35% | 5.18% | 7.91% | 61.46% | 64.8% | -50.16% | 16.33% | 25.79% | 6.86% | - |
| Cost of Goods Sold | 2.62B | 2.4B | 1.84B | 3.29B | 3.04B | 2.26B | 1.64B | 2B | 1.78B | 1.19B | 1.13B |
| COGS % of Revenue | - | 64.5% | 48.69% | 91.59% | 91.52% | 109.81% | 131.2% | 79.94% | 82.7% | 69.43% | 70.51% |
| Gross Profit | 1.19B | 1.32B | 1.94B | 302M | 282M | -202M | -390M | 503M | 373M | 524M | 473M |
| Gross Margin % | 31.15% | 35.5% | 51.31% | 8.41% | 8.48% | -9.81% | -31.2% | 20.06% | 17.3% | 30.57% | 29.49% |
| Gross Profit Growth % | - | -31.75% | 541.39% | 7.09% | 239.6% | 48.21% | -177.53% | 34.85% | -28.82% | 10.78% | - |
| Operating Expenses | 1.57B | 1.47B | 1.88B | 305M | 372M | -85M | -25M | 194M | 281M | 207M | 197M |
| OpEx % of Revenue | - | 39.5% | 49.77% | 8.5% | 11.18% | -4.13% | -2% | 7.74% | 13.03% | 12.08% | 12.28% |
| Selling, General & Admin | 161M | 159M | 178M | 164M | 164M | 109M | 78M | 130M | 110M | 72M | 79M |
| SG&A % of Revenue | - | 4.27% | 4.72% | 4.57% | 4.93% | 5.29% | 6.24% | 5.18% | 5.1% | 4.2% | 4.93% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 1.31B | 1.7B | 141M | 153M | -194M | -103M | 64M | 171M | 135M | 118M |
| Operating Income | -433M | -149M | 58M | -3M | -45M | -117M | -365M | 309M | 92M | 317M | 233M |
| Operating Margin % | -11.38% | -4% | 1.54% | -0.08% | -1.35% | -5.68% | -29.2% | 12.32% | 4.27% | 18.49% | 14.53% |
| Operating Income Growth % | - | -356.9% | 2033.33% | 93.33% | 61.54% | 67.95% | -218.12% | 235.87% | -70.98% | 36.05% | - |
| EBITDA | -300M | -58M | 130M | 47M | 0 | -79M | -332M | 355M | 170M | 392M | 287M |
| EBITDA Margin % | -7.89% | -1.56% | 3.44% | 1.31% | - | -3.84% | -26.56% | 14.15% | 7.89% | 22.87% | 17.89% |
| EBITDA Growth % | -352.1% | -144.62% | 176.6% | - | 100% | 76.2% | -193.52% | 108.82% | -56.63% | 36.59% | - |
| D&A (Non-Cash Add-back) | 133M | 91M | 72M | 50M | 45M | 38M | 33M | 46M | 78M | 75M | 54M |
| EBIT | -410M | -149M | 50M | 33M | -42M | -115M | -360M | 325M | 109M | 319M | 233M |
| Net Interest Income | 11M | 15M | 28M | 35M | 0 | -27M | -7M | 16M | 13M | -1M | -5M |
| Interest Income | 25M | 26M | 32M | 36M | 10M | 2M | 5M | 16M | 17M | 2M | 0 |
| Interest Expense | 14M | 11M | 4M | 1M | 10M | 29M | 12M | 0 | 4M | 3M | 5M |
| Other Income/Expense | 11M | 15M | 28M | 35M | 0 | -27M | -7M | 16M | 13M | -1M | -5M |
| Pretax Income | -375M | -134M | 86M | 32M | -45M | -144M | -372M | 325M | 105M | 316M | 228M |
| Pretax Margin % | -9.86% | -3.6% | 2.28% | 0.89% | -1.35% | -6.99% | -29.76% | 12.96% | 4.87% | 18.44% | 14.21% |
| Income Tax | -9M | 3M | 1M | 43M | -8M | -42M | -147M | 74M | 25M | 116M | 82M |
| Effective Tax Rate % | 2.4% | -2.24% | 1.16% | 134.38% | 17.78% | 29.17% | 39.52% | 22.77% | 23.81% | 36.71% | 35.96% |
| Net Income | -366M | -137M | 85M | -11M | -37M | -102M | -225M | 251M | 80M | 200M | 146M |
| Net Margin % | -9.62% | -3.68% | 2.25% | -0.31% | -1.11% | -4.95% | -18% | 10.01% | 3.71% | 11.67% | 9.1% |
| Net Income Growth % | -638.24% | -261.18% | 872.73% | 70.27% | 63.73% | 54.67% | -189.64% | 213.75% | -60% | 36.99% | - |
| Net Income (Continuing) | -366M | -137M | 85M | -11M | -37M | -102M | -225M | 251M | 80M | 200M | 146M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -1.59 | -0.60 | 0.38 | -0.05 | -0.17 | -0.47 | -1.05 | 1.10 | 0.37 | 0.93 | 0.68 |
| EPS Growth % | -651.72% | -257.89% | 860% | 70.59% | 63.83% | 55.24% | -195.45% | 197.3% | -60.22% | 36.76% | - |
| EPS (Basic) | - | -0.60 | 0.38 | -0.05 | -0.17 | -0.47 | -1.05 | 1.10 | 0.37 | 0.93 | 0.68 |
| Diluted Shares Outstanding | 229.97M | 229.97M | 225.72M | 220.1M | 217.6M | 217.06M | 215.08M | 215.08M | 215.92M | 214.26M | 214.26M |
| Basic Shares Outstanding | 228.79M | 228.79M | 224.33M | 220.1M | 217.6M | 217.06M | 215.08M | 215.08M | 214.07M | 214.26M | 214.26M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | 63.35% | 263.75% | 50.5% | - |
Structural Margin Erosion
According to the provided quarterly income statements, Frontier's revenue growth has exhibited significant volatility, oscillating between a 12.5% expansion in 2024Q4 and a contraction of 5.2% in 2025Q3, suggesting that the company's core leisure-focused model is struggling to maintain consistent top-line momentum in the current environment.
The inconsistent revenue trajectory indicates that the company's reliance on price-sensitive leisure travelers leaves it vulnerable to shifts in discretionary spending and competitive capacity. Investors should monitor whether the recent pivot toward bundled pricing tiers can stabilize these fluctuations or if the current revenue profile reflects a permanent saturation in key hub markets.
As reported in financial statements, Frontier's gross margin has fluctuated wildly from a high of 49.5% in 2025Q1 to a low of -7.2% in 2024Q1, highlighting the extreme sensitivity of the company's cost structure to fuel price spikes and operational inefficiencies inherent in the ultra-low-cost carrier model.
This extreme variance in gross profitability suggests that the company lacks the pricing power necessary to fully offset input cost volatility. The inability to maintain consistent margins implies that the current business model may be structurally ill-equipped to handle the inflationary pressures currently impacting the broader aviation industry.
Based on the company's reported figures, the operating margin reached a concerning -33.3% in 2026Q1, demonstrating that the firm's fixed cost base is currently scaling significantly faster than its ability to generate operating income, which warrants further investigation into the sustainability of its current fleet and labor commitments.
The persistent inability to achieve positive operating leverage suggests that the company's cost-cutting initiatives are being outpaced by rising labor and maintenance expenses. This trend appears to indicate that the company's operational scale is not yet sufficient to absorb the fixed costs associated with its aggressive fleet expansion strategy.
Analysis of the income statement suggests that the company's reliance on ancillary revenue to subsidize low base fares may be reaching a breaking point, as evidenced by the net loss of $272 million in 2026Q1 despite the company's ongoing efforts to optimize its service-based revenue streams.
Short-sellers would likely focus on the fact that the company's core flying business appears unable to reach profitability without aggressive fee-based add-ons, which are increasingly under regulatory scrutiny. The current financial performance suggests that the company's competitive advantage is being eroded by industry-wide labor inflation and potential regulatory headwinds.
Quick answers to the most common questions about buying ULCC stock.
For fiscal year 2025, Frontier Group Holdings, Inc. (ULCC) reported total revenue of $3.72B. This represents a 132.2% increase compared to $1.60B in 2015.
Frontier Group Holdings, Inc. (ULCC) reported a net loss of $137.0M for the fiscal year ending 2025.
Frontier Group Holdings, Inc. (ULCC) reported an operating income of $-149.0M, resulting in an operating profit margin of -4.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Frontier Group Holdings, Inc. (ULCC) generated $1.32B in gross profit for the year, representing a gross profit margin of 35.5%. This demonstrates the company's core pricing power and production efficiency.