Operating margins have deteriorated to -86.1% in 2025Q3, reflecting structural headwinds that have driven a 8.4% year-over-year decline in quarterly revenue.
| Metric | TTM | 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 |
|---|
| Sales/Revenue | 1.9B | 1.95B | 1.55B | 1.92B | 1.39B | 677.19M | 837.28M | 1.11B | 822.16M | 597.38M | 606.64M | 793.88M | 665.26M | 588.08M | 510.27M | 242M | 96.89M |
| Revenue Growth % | 1.85% | 26.15% | -19.43% | 37.78% | 105.86% | -19.12% | -24.28% | 34.5% | 37.63% | -1.53% | -23.59% | 19.34% | 13.12% | 15.25% | 110.85% | 149.77% | - |
| Cost of Goods Sold | 1.06B | 1.34B | 412.71M | 718.74M | 637.15M | 530.79M | 524.37M | 644.97M | 471.25M | 428.07M | 599.14M | 455.76M | 359.74M | 348.65M | 252.15M | 137.63M | 22.76M |
| COGS % of Revenue | - | 68.59% | 26.67% | 37.42% | 45.7% | 78.38% | 62.63% | 58.33% | 57.32% | 71.66% | 98.76% | 57.41% | 54.07% | 59.29% | 49.41% | 56.87% | 23.49% |
| Gross Profit | 839.1M | 613.25M | 1.13B | 1.2B | 756.92M | 146.4M | 312.91M | 460.81M | 350.92M | 169.3M | 7.5M | 338.12M | 305.52M | 239.43M | 258.12M | 104.37M | 74.13M |
| Gross Margin % | 44.23% | 31.41% | 73.33% | 62.58% | 54.3% | 21.62% | 37.37% | 41.67% | 42.68% | 28.34% | 1.24% | 42.59% | 45.93% | 40.71% | 50.59% | 43.13% | 76.51% |
| Gross Profit Growth % | - | -45.96% | -5.59% | 58.81% | 417.03% | -53.21% | -32.09% | 31.32% | 107.27% | 2157.69% | -97.78% | 10.67% | 27.6% | -7.24% | 147.32% | 40.78% | - |
| Operating Expenses | 1.95B | 635.81M | 575.27M | 141.9M | 43.96M | 1.01B | 721.5M | 112.31M | 101.24M | 259.48M | 2.75B | 111.73M | 91.17M | 63.31M | 51.68M | 31.38M | 80.99M |
| OpEx % of Revenue | - | 32.57% | 37.17% | 7.39% | 3.15% | 148.87% | 86.17% | 10.16% | 12.31% | 43.44% | 453.75% | 14.07% | 13.7% | 10.76% | 10.13% | 12.97% | 83.59% |
| Selling, General & Admin | 139.82M | 146.42M | 146.1M | 121.77M | 110.72M | 100.46M | 80.13M | 107.84M | 96.31M | 91.76M | 90.42M | 106.04M | 89.7M | 62.11M | 51.06M | 30.91M | 22.9M |
| SG&A % of Revenue | - | 7.5% | 9.44% | 6.34% | 7.94% | 14.83% | 9.57% | 9.75% | 11.71% | 15.36% | 14.91% | 13.36% | 13.48% | 10.56% | 10.01% | 12.77% | 23.63% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 489.39M | 429.17M | 20.12M | -66.76M | 907.67M | 641.38M | 16.18M | 4.93M | 167.72M | 2.39B | 5.69M | 1.48M | 1.2M | 616K | 475K | 58.1M |
| Operating Income | -1.11B | -22.55M | 559.62M | 1.06B | 712.96M | -861.73M | -408.59M | 348.49M | 249.67M | -87.96M | -2.47B | 226.39M | 214.35M | 171.78M | 202.52M | 72.98M | -253.53M |
| Operating Margin % | -58.28% | -1.16% | 36.16% | 55.19% | 51.14% | -127.25% | -48.8% | 31.52% | 30.37% | -14.72% | -407.41% | 28.52% | 32.22% | 29.21% | 39.69% | 30.16% | -261.66% |
| Operating Income Growth % | - | -104.03% | -47.21% | 48.7% | 182.74% | -110.9% | -217.25% | 39.58% | 383.84% | 96.44% | -1191.73% | 5.61% | 24.78% | -15.18% | 177.49% | 128.79% | - |
| EBITDA | -334.23M | 719.41M | 1.03B | 1.37B | 928.32M | -631.56M | -128.28M | 565.64M | 411.85M | 60.38M | -2.19B | 472.86M | 449.77M | 416.63M | 379.24M | 170.87M | -195.52M |
| EBITDA Margin % | -17.62% | 36.85% | 66.33% | 71.42% | 66.59% | -93.26% | -15.32% | 51.15% | 50.09% | 10.11% | -361.63% | 59.56% | 67.61% | 70.85% | 74.32% | 70.61% | -201.8% |
| EBITDA Growth % | -128.85% | -29.92% | -25.17% | 47.77% | 246.99% | -392.32% | -122.68% | 37.34% | 582.13% | 102.75% | -563.94% | 5.13% | 7.95% | 9.86% | 121.95% | 187.39% | - |
| D&A (Non-Cash Add-back) | 771.34M | 741.97M | 466.95M | 311.64M | 215.35M | 230.17M | 280.31M | 217.15M | 162.18M | 148.34M | 277.72M | 246.47M | 235.42M | 244.85M | 176.72M | 97.89M | 58.01M |
| EBIT | -985.07M | -51.63M | 661.56M | 756.4M | 257.59M | -776.82M | -286.61M | 386.75M | 640.15M | -167.44M | -2.29B | 546.6M | 291.41M | 180.18M | 211.94M | 78.92M | -251.04M |
| Net Interest Income | -195.63M | -169.63M | -149.82M | -119.38M | -108.93M | -105.01M | -61.55M | -57.9M | -89.38M | -93.3M | -102.79M | -120.88M | -100.16M | -85.51M | -50.47M | -18.33M | -7.24M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 426K | 294K | 163K | 59K | 108K | 150K | 223K |
| Interest Expense | 195.63M | 169.63M | 149.82M | 119.38M | 108.93M | 105.01M | 61.55M | 57.9M | 89.38M | 93.3M | 103.22M | 121.17M | 100.33M | 85.57M | 50.58M | 18.48M | 7.46M |
| Other Income/Expense | -75.13M | -198.71M | -47.88M | -423.15M | -564.31M | -16.39M | 63.54M | -19.65M | 301.1M | -172.78M | 84.63M | 203.47M | -23.27M | -77.18M | -37.59M | -12.55M | -4.97M |
| Pretax Income | -1.18B | -221.26M | 511.74M | 637.01M | 148.65M | -878.12M | -345.05M | 328.84M | 550.77M | -260.74M | -2.39B | 429.86M | 191.08M | 94.6M | 164.93M | 60.44M | -258.5M |
| Pretax Margin % | -62.24% | -11.33% | 33.07% | 33.16% | 10.66% | -129.67% | -41.21% | 29.74% | 66.99% | -43.65% | -393.46% | 54.15% | 28.72% | 16.09% | 32.32% | 24.97% | -266.79% |
| Income Tax | 133.62M | -47.74M | -183.34M | 5.5M | 3.65M | -3.95M | -2.59M | 4.25M | 1.8M | 0 | -176.94M | 164.29M | 74.51M | 32.95M | 59.37M | -25.81M | -74.01M |
| Effective Tax Rate % | -11.32% | 21.58% | -35.83% | 0.86% | 2.45% | 0.45% | 0.75% | 1.29% | 0.33% | 0% | 7.41% | 38.22% | 38.99% | 34.83% | 36% | -42.71% | 28.63% |
| Net Income | -1.31B | -173.52M | 695.08M | 631.51M | 145.01M | -874.17M | -342.46M | 324.6M | 548.97M | -260.74M | -2.21B | 265.57M | 118M | 61.65M | 105.55M | 86.25M | -184.5M |
| Net Margin % | -69.28% | -8.89% | 44.91% | 32.88% | 10.4% | -129.09% | -40.9% | 29.35% | 66.77% | -43.65% | -364.29% | 33.45% | 17.74% | 10.48% | 20.69% | 35.64% | -190.41% |
| Net Income Growth % | -381.26% | -124.96% | 10.07% | 335.5% | 116.59% | -155.26% | -205.5% | -40.87% | 310.55% | 88.2% | -932.14% | 125.06% | 91.39% | -41.59% | 22.38% | 146.75% | - |
| Net Income (Continuing) | -1.31B | -173.52M | 695.08M | 631.51M | 145.01M | -874.17M | -342.46M | 324.6M | 548.97M | -260.74M | -2.21B | 265.57M | 116.58M | 61.76M | 105.98M | 86.25M | -184.5M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.42M | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -34.77 | -4.74 | 33.44 | 37.44 | 10.03 | -74.92 | -29.61 | 27.80 | 45.80 | -23.20 | -222.00 | 37.00 | 17.60 | 9.60 | 19.60 | 13.80 | -29.52 |
| EPS Growth % | -344.19% | -114.17% | -10.68% | 273.28% | 113.39% | -153.02% | -206.51% | -39.3% | 297.41% | 89.55% | -700% | 110.23% | 83.33% | -51.02% | 42.03% | 146.75% | - |
| EPS (Basic) | - | -4.74 | 34.30 | 37.88 | 10.18 | -74.92 | -29.61 | 27.94 | 46.00 | -23.20 | -222.00 | 37.60 | 17.80 | 9.80 | 19.60 | 13.80 | -29.52 |
| Diluted Shares Outstanding | 37.8M | 36.73M | 20.78M | 16.87M | 14.46M | 11.67M | 11.56M | 11.66M | 12.01M | 11.28M | 9.96M | 7.18M | 6.72M | 6.41M | 5.4M | 6.25M | 6.25M |
| Basic Shares Outstanding | 37.8M | 36.73M | 20.25M | 16.67M | 14.24M | 11.67M | 11.56M | 11.62M | 11.95M | 11.24M | 9.95M | 7.07M | 6.62M | 6.35M | 5.36M | 6.25M | 6.25M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Operational margin volatility
As indicated by the most recent quarterly filings, Vital Energy's revenue growth has shifted into negative territory, with a year-over-year decline of 8.4% in 2025Q3, signaling that the company's aggressive consolidation strategy is struggling to offset the natural production decline inherent in its Permian Basin asset base.
The transition from double-digit growth in early 2024 to contraction in 2025 suggests that the company's reliance on bolt-on acquisitions may be reaching a point of diminishing returns. Investors should monitor whether this deceleration reflects a deliberate shift toward capital discipline or an inability to maintain production volumes without excessive reinvestment.
Based on the latest income statement data, Vital Energy's operating margin has deteriorated significantly to -86.1% in 2025Q3, a stark contrast to the 30.4% operating margin achieved in 2023Q4, highlighting the company's vulnerability to high fixed costs and potential non-cash impairment charges within its secondary-tier acreage.
The extreme volatility in operating margins suggests that the company's cost structure is highly sensitive to commodity price fluctuations and potential asset write-downs. This lack of margin stability implies that the firm currently lacks the pricing power or operational efficiency to remain profitable during periods of regional price weakness.
According to reported financial statements, Vital Energy's net income has experienced extreme swings, including a net loss of $353.5 million in 2025Q3, which appears heavily influenced by non-operating items and mark-to-market adjustments that mask the underlying cash-generating capability of the firm's core oil and gas production.
The frequent divergence between operating income and net income suggests that investors should focus on cash-based metrics rather than GAAP earnings, which are distorted by full-cost accounting and derivative volatility. The persistent negative net margins warrant further investigation into whether these losses are purely accounting-driven or indicative of fundamental cash burn.
While management emphasizes scale through consolidation, the income statement reveals that Vital Energy's operating income has collapsed from $180.2 million in 2023Q3 to a loss of $362.4 million in 2025Q3, raising significant questions regarding the long-term viability of its current debt-funded growth model in the Permian.
Short-sellers may focus on the widening gap between revenue and profitability, which suggests that the company is running on a treadmill of constant acquisition to mask declining well productivity. The inability to convert top-line revenue into consistent operating profit implies that the company's moat may be insufficient to protect against rising operational costs.
Quick answers to the most common questions about buying VTLE stock.
For fiscal year 2024, Vital Energy, Inc. (VTLE) reported total revenue of $1.95B. This represents a 1914.9% increase compared to $96.9M in 2009.
Vital Energy, Inc. (VTLE) reported a net loss of $173.5M for the fiscal year ending 2024.
Vital Energy, Inc. (VTLE) reported an operating income of $-22.6M, resulting in an operating profit margin of -1.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Vital Energy, Inc. (VTLE) generated $613.3M in gross profit for the year, representing a gross profit margin of 31.4%. This demonstrates the company's core pricing power and production efficiency.