Revenue rose to $1.4B in 2026Q3 yet operating income deteriorated to -$108M with an operating margin of -8.0%, after a brief positive quarter of $49M (4.9% margin) in 2025Q4 that did not persist.
Frontier Group Holdings, Inc. (ULCC) annual income statement — 10-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'16 | Dec'15 |
|---|
| Sales/Revenue | 4.62B | 3.72B | 3.77B | 3.59B | 3.33B | 2.06B | 1.25B | 2.51B | 2.16B | 1.71B | 1.6B |
| Revenue Growth % | 23.97% | -1.35% | 5.18% | 7.91% | 61.46% | 64.8% | -50.16% | 16.33% | 25.79% | 6.86% | - |
| Cost of Goods Sold | 4.82B | 3.71B | 3.59B | 3.29B | 3.04B | 2.26B | 1.64B | 2B | 1.78B | 1.19B | 1.13B |
| COGS % of Revenue | - | 99.62% | 95.05% | 91.59% | 91.52% | 109.81% | 131.2% | 79.94% | 82.7% | 69.43% | 70.51% |
| Gross Profit | -201M | 14M | 187M | 302M | 282M | -202M | -390M | 503M | 373M | 524M | 473M |
| Gross Margin % | -4.35% | 0.38% | 4.95% | 8.41% | 8.48% | -9.81% | -31.2% | 20.06% | 17.3% | 30.57% | 29.49% |
| Gross Profit Growth % | - | -92.51% | -38.08% | 7.09% | 239.6% | 48.21% | -177.53% | 34.85% | -28.82% | 10.78% | - |
| Operating Expenses | 238M | 163M | 129M | 305M | 317M | -85M | -25M | 194M | 281M | 207M | 197M |
| OpEx % of Revenue | - | 4.38% | 3.42% | 8.5% | 9.53% | -4.13% | -2% | 7.74% | 13.03% | 12.08% | 12.28% |
| Selling, General & Admin | 181M | 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 | 2M | 4M | -49M | 141M | 153M | -194M | -103M | 64M | 171M | 135M | 118M |
| Operating Income | -439M | -149M | 58M | -3M | -35M | -117M | -365M | 309M | 92M | 317M | 233M |
| Operating Margin % | -9.5% | -4% | 1.54% | -0.08% | -1.05% | -5.68% | -29.2% | 12.32% | 4.27% | 18.49% | 14.53% |
| Operating Income Growth % | - | -356.9% | 2033.33% | 91.43% | 70.09% | 67.95% | -218.12% | 235.87% | -70.98% | 36.05% | - |
| EBITDA | -330M | -58M | 130M | 47M | 10M | -79M | -332M | 355M | 170M | 392M | 287M |
| EBITDA Margin % | -7.14% | -1.56% | 3.44% | 1.31% | 0.3% | -3.84% | -26.56% | 14.15% | 7.89% | 22.87% | 17.89% |
| EBITDA Growth % | -378.26% | -144.62% | 176.6% | 370% | 112.66% | 76.2% | -193.52% | 108.82% | -56.63% | 36.59% | - |
| D&A (Non-Cash Add-back) | 109M | 91M | 72M | 50M | 45M | 38M | 33M | 46M | 78M | 75M | 54M |
| EBIT | -404M | -123M | 90M | 33M | -35M | -115M | -360M | 325M | 109M | 319M | 233M |
| Net Interest Income | 7M | 15M | 28M | 35M | 7M | -27M | -7M | 16M | 13M | -1M | -5M |
| Interest Income | 30M | 26M | 32M | 36M | 10M | 2M | 5M | 16M | 17M | 2M | 0 |
| Interest Expense | 23M | 11M | 4M | 1M | 3M | 29M | 12M | 0 | 4M | 3M | 5M |
| Other Income/Expense | 12M | 15M | 28M | 35M | -10M | -27M | -7M | 16M | 13M | -1M | -5M |
| Pretax Income | -427M | -134M | 86M | 32M | -45M | -144M | -372M | 325M | 105M | 316M | 228M |
| Pretax Margin % | -9.24% | -3.6% | 2.28% | 0.89% | -1.35% | -6.99% | -29.76% | 12.96% | 4.87% | 18.44% | 14.21% |
| Income Tax | -14M | 3M | 1M | 43M | -8M | -42M | -147M | 74M | 25M | 116M | 82M |
| Effective Tax Rate % | 3.28% | -2.24% | 1.16% | 134.38% | 17.78% | 29.17% | 39.52% | 22.77% | 23.81% | 36.71% | 35.96% |
| Net Income | -413M | -137M | 85M | -11M | -37M | -102M | -225M | 251M | 80M | 200M | 146M |
| Net Margin % | -8.93% | -3.68% | 2.25% | -0.31% | -1.11% | -4.95% | -18% | 10.01% | 3.71% | 11.67% | 9.1% |
| Net Income Growth % | -203.68% | -261.18% | 872.73% | 70.27% | 63.73% | 54.67% | -189.64% | 213.75% | -60% | 36.99% | - |
| Net Income (Continuing) | -413M | -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) | -1.79 | -0.60 | 0.38 | -0.05 | -0.17 | -0.47 | -1.05 | 1.10 | 0.37 | 0.93 | 0.68 |
| EPS Growth % | -193.44% | -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 | 230.24M | 229.97M | 225.72M | 220.1M | 218M | 217.06M | 215.08M | 215.08M | 215.92M | 214.26M | 214.26M |
| Basic Shares Outstanding | 230.24M | 228.79M | 224.33M | 220.1M | 218M | 217.06M | 215.08M | 215.08M | 214.07M | 214.26M | 214.26M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | 63.35% | 263.75% | 50.5% | - |
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 $14.0M in gross profit for the year, representing a gross profit margin of 0.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Persistent operating losses and cost pressure
Metrics are mathematically derived from official filings.
Top-Line Growth Masking Deteriorating Economics
According to reported quarterly figures, ULCC's revenue rose 52.9% year over year to $1.4B in 2026Q3, yet this growth has not translated into operating profit, with operating margin at -8.0% in the same quarter.
The revenue trajectory shows a recovery from the 2025 slowdown, with year-over-year growth reaccelerating from roughly -5% in 2025Q3 to 37.7% and 52.9% in the two most recent quarters. However, growth in the latest quarters appears to be coming at the expense of unit economics, since operating losses widened alongside revenue. Investors should monitor whether the revenue gains reflect sustainable demand or capacity-driven volume that is not earning adequate margin.
Gross Margin Collapse Signals Pricing Pressure
As reported in the income statement, ULCC's gross margin fell from 49.5% in 2025Q1 to -21.0% in 2026Q1, a swing that points to severe fare or fuel cost pressure against a peer group where Sun Country and SkyWest post gross margins near 62-67%.
Gross profit has turned negative in the two most recent quarters, indicating that cost of revenue is exceeding the revenue base in the reported figures. The peer comparison suggests this is not a structural feature of the ultra-low-cost model, though differences in cost classification across carriers limit direct comparability. The margin pattern warrants further investigation into fuel hedging, fare yield, and capacity utilization.
SG&A Stability Cannot Offset Gross Losses
Based on ULCC's reported figures, SG&A held in a narrow $38M to $49M band across the ten quarters, meaning overhead discipline has been consistent while operating income swung from -$108M in 2026Q3 to $49M in 2025Q4.
Because SG&A remained roughly flat while revenue scaled, the operating swings are driven almost entirely by cost of revenue rather than overhead. This implies the company has limited operating leverage from fixed overhead in a downturn, and that profitability depends on gross margin recovery. The lack of an R&D line means there is no offsetting reinvestment lever to examine.
Net Losses Track Operating Results Closely
Reported net income tracks operating income closely, with 2026Q1 net loss of -$272M and EPS of -$1.18 reflecting an operating loss of -$283M, and stock-based compensation remaining small at $4M to $6M per quarter.
The close alignment between operating and net income suggests limited non-operating distortion in the reported figures, and stock-based compensation is too small to materially affect earnings quality. The primary concern is the operating result itself rather than accounting-driven noise. Analysts should note that EPS sensitivity is high given the modest share count implied by the figures.
Late 2025 Margin Inflection Reversed in 2026
ULCC's most notable inflection occurred in 2025Q4, when the company reported a positive operating income of $49M and a 4.9% operating margin, a result that did not persist as losses returned in 2026Q1 through 2026Q3.
The 2025Q4 turn to profitability appears to have been driven by a sharp gross profit recovery to $25M, which then reversed as gross margin turned negative into 2026. The brevity of the positive period suggests the improvement was not structural based on the reported data. Investors should monitor whether this reflects a cyclical peak or an early signal of stabilizing unit economics.
Growth Without Margin Undermines the Bull Case
The strongest counter-view is that ULCC's revenue rebound to $1.4B in 2026Q3 is being purchased with losses, as operating margin of -8.0% and a -7.7% net margin stand well below profitable peers like SkyWest at 15.2% operating margin.
Short-side analysis would emphasize that revenue growth exceeding 50% combined with widening losses suggests the company may be buying volume at unprofitable fares. If gross margin does not recover, the growth trajectory could be unsustainable and dilutive to equity holders. Peer comparisons are imperfect given differing business models, but the gap in profitability is large enough to warrant scrutiny of the durability of the current revenue base.