Revenue grew 37.7% year-over-year to $1.3B in 2026Q2, but operating income remained negative at -$97M, with gross margin swinging from -21.0% in 2026Q1 to 53.4% in 2026Q2, highlighting extreme volatility and lack of operating leverage.
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 | 4.15B | 3.72B | 3.77B | 3.59B | 3.33B | 2.06B | 1.25B | 2.51B | 2.16B | 1.71B | 1.6B |
| Revenue Growth % | 9.95% | -1.35% | 5.18% | 7.91% | 61.46% | 64.8% | -50.16% | 16.33% | 25.79% | 6.86% | - |
| Cost of Goods Sold | 3.25B | 2.4B | 3.59B | 3.29B | 3.04B | 2.26B | 1.64B | 2B | 1.78B | 1.19B | 1.13B |
| COGS % of Revenue | - | 64.5% | 95.05% | 91.59% | 91.52% | 109.81% | 131.2% | 79.94% | 82.7% | 69.43% | 70.51% |
| Gross Profit | 902M | 1.32B | 187M | 302M | 282M | -202M | -390M | 503M | 373M | 524M | 473M |
| Gross Margin % | 21.71% | 35.5% | 4.95% | 8.41% | 8.48% | -9.81% | -31.2% | 20.06% | 17.3% | 30.57% | 29.49% |
| Gross Profit Growth % | - | 606.95% | -38.08% | 7.09% | 239.6% | 48.21% | -177.53% | 34.85% | -28.82% | 10.78% | - |
| Operating Expenses | 1.36B | 1.47B | 129M | 305M | 372M | -85M | -25M | 194M | 281M | 207M | 197M |
| OpEx % of Revenue | - | 39.5% | 3.42% | 8.5% | 11.18% | -4.13% | -2% | 7.74% | 13.03% | 12.08% | 12.28% |
| Selling, General & Admin | 170M | 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 | 1.31B | -49M | 141M | 153M | -194M | -103M | 64M | 171M | 135M | 118M |
| Operating Income | -455M | -149M | 58M | -3M | -45M | -117M | -365M | 309M | 92M | 317M | 233M |
| Operating Margin % | -10.95% | -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 | -313M | -58M | 130M | 47M | 0 | -79M | -332M | 355M | 170M | 392M | 287M |
| EBITDA Margin % | -7.53% | -1.56% | 3.44% | 1.31% | - | -3.84% | -26.56% | 14.15% | 7.89% | 22.87% | 17.89% |
| EBITDA Growth % | -1522.73% | -144.62% | 176.6% | - | 100% | 76.2% | -193.52% | 108.82% | -56.63% | 36.59% | - |
| D&A (Non-Cash Add-back) | 142M | 91M | 72M | 50M | 45M | 38M | 33M | 46M | 78M | 75M | 54M |
| EBIT | -454M | -123M | 50M | 33M | -42M | -115M | -360M | 325M | 109M | 319M | 233M |
| Net Interest Income | 9M | 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 | 16M | 11M | 4M | 1M | 10M | 29M | 12M | 0 | 4M | 3M | 5M |
| Other Income/Expense | 56M | 15M | 28M | 35M | -10M | -27M | -7M | 16M | 13M | -1M | -5M |
| Pretax Income | -399M | -134M | 86M | 32M | -45M | -144M | -372M | 325M | 105M | 316M | 228M |
| Pretax Margin % | -9.61% | -3.6% | 2.28% | 0.89% | -1.35% | -6.99% | -29.76% | 12.96% | 4.87% | 18.44% | 14.21% |
| Income Tax | -13M | 3M | 1M | 43M | -8M | -42M | -147M | 74M | 25M | 116M | 82M |
| Effective Tax Rate % | 3.26% | -2.24% | 1.16% | 134.38% | 17.78% | 29.17% | 39.52% | 22.77% | 23.81% | 36.71% | 35.96% |
| Net Income | -386M | -137M | 85M | -11M | -37M | -102M | -225M | 251M | 80M | 200M | 146M |
| Net Margin % | -9.29% | -3.68% | 2.25% | -0.31% | -1.11% | -4.95% | -18% | 10.01% | 3.71% | 11.67% | 9.1% |
| Net Income Growth % | -1069.7% | -261.18% | 872.73% | 70.27% | 63.73% | 54.67% | -189.64% | 213.75% | -60% | 36.99% | - |
| Net Income (Continuing) | -386M | -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) | -1.68 | -0.60 | 0.38 | -0.05 | -0.17 | -0.47 | -1.05 | 1.10 | 0.37 | 0.93 | 0.68 |
| EPS Growth % | -950% | -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% | - |
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.
Key Metrics
Top Statement Risk
Revenue volatility and negative margins
Metrics are mathematically derived from official filings.
Revenue Rebound Amidst Volatility
Revenue surged 37.7% year-over-year in 2026Q2 to $1.3B, per the latest quarterly report, but this follows a 5.2% decline in 2025Q3, indicating erratic demand patterns.
The 37.7% growth in 2026Q2 is the strongest in the ten-quarter window, yet it comes after a period of negative growth in 2025Q3 and Q4, suggesting a volatile demand environment. The sequential jump from $992M in 2026Q1 to $1.3B in 2026Q2 implies a significant seasonal or capacity-driven boost, but the sustainability of this pace is uncertain given the prior contractions. Investors should monitor whether this reflects a structural improvement or a one-off surge.
Gross Margin Whiplash
Gross margin swung from -21.0% in 2026Q1 to 53.4% in 2026Q2, as reported in financial statements, highlighting extreme volatility in unit economics.
The gross margin oscillation between -21.0% and 53.4% within two quarters is atypical and suggests significant pricing or cost volatility, possibly due to fuel price swings or capacity decisions. The 2026Q2 margin of 53.4% is well above the peer average (SNCY 66.9%, SKYW 61.6%), but the negative margins in other quarters indicate a lack of pricing power or cost control. This volatility may reflect an aggressive capacity deployment strategy that yields outsized gains in strong quarters but severe losses in weak ones.
Operating Leverage Absent
Despite revenue growth, operating income remained negative in 2026Q2 at -$97M, per the income statement, indicating that SG&A efficiency is not translating into profitability.
SG&A expenses have been relatively stable around $40-48M per quarter, but operating income has swung from -$330M to +$49M, implying that the primary driver of profitability is gross margin, not overhead control. The lack of operating leverage is evident as revenue increased 37.7% in 2026Q2, yet operating income did not turn positive, suggesting that variable costs are consuming the revenue gains. This may indicate that the company's cost structure is not scalable, or that pricing is insufficient to cover fixed costs at current volumes.
Negative Earnings Persist
Net income was -$90M in 2026Q2, with EPS of -$0.39, as per the latest quarterly data, continuing a pattern of losses in most quarters.
The company has reported positive net income in only two of the last ten quarters (2024Q4 and 2025Q4), and those were modest at $53-54M. The recurring losses, even in quarters with high revenue, suggest that the business model is not consistently profitable. Stock-based compensation is minimal ($4-6M per quarter), so it is not a major drag, but the negative EPS in most periods indicates that the company is not generating sustainable shareholder value.
COGS Dominates Cost Structure
COGS averaged over $700M per quarter in the last ten quarters, as reported, and its volatility is the primary driver of gross margin swings.
COGS ranges from $461M to $1.2B, with the highest in 2026Q1, which coincided with a negative gross margin. This suggests that fuel and other variable costs are highly unpredictable, and the company has limited ability to pass through cost increases. The stability of SG&A and R&D (zero R&D) indicates that the focus is on managing direct operating costs, but the lack of control over COGS is a major concern for profitability.
What Could Undermine the Recovery
The 2026Q2 revenue surge may be a temporary spike, as historical data shows similar rebounds followed by losses, and the company's negative margins in most quarters suggest structural issues.
Short-sellers might argue that the 37.7% revenue growth in 2026Q2 is not sustainable, given that the company has failed to maintain profitability even in periods of growth. The gross margin volatility, ranging from -21% to 53%, indicates a lack of pricing power and high exposure to cost shocks. Additionally, the company's negative operating income in most quarters, despite revenue growth, suggests that the cost structure is not competitive, and the recent positive quarters may be anomalies rather than a trend.