10-Q · May 13, 2026
Epsilon Energy reported a strong quarter, with revenue rising 58% to $25.6 million and EPS at $0.43, which was significantly above the estimated $0.04. The favorable results were driven primarily by the Peak…
Earnings analysis · 10-Q
EPSN earnings analysis
Filed August 12, 2026 · Our reading of the company's report
The latest report
Epsilon reported Q2 2026 revenue of $18.261 million and EPS of $0.23. Revenue declined sequentially from $26 million but increased from $12 million a year earlier, while EPS improved from $0.02 sequentially and $0.07…
Read full summary
Epsilon reported Q2 2026 revenue of $18.261 million and EPS of $0.23. Revenue declined sequentially from $26 million but increased from $12 million a year earlier, while EPS improved from $0.02 sequentially and $0.07 year over year. The main concerns are the increase in credit-agreement debt to $40.5 million, significant commodity-price sensitivity, and an unresolved material weakness in internal controls. No segment results, margins, free cash flow, or quantitative guidance were provided in the extracted filing text.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.23
What stood out
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Revenue up year over year
Q2 2026 revenue was $18.261 million, down approximately 29.8% from $26 million in Q1 2026 but up approximately 52.2% from $12 million in Q2 2025.
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EPS strengthened materially
Q2 2026 EPS was $0.23, improving from $0.02 in Q1 2026 and $0.07 in Q2 2025.
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Contractor litigation resolved
The contractor litigation related to the Leavitt Fed 2-9-4MH well reached a settlement on June 8, 2026, and the case was dismissed with prejudice.
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Gathering system offers resilience
Epsilon states that its Auburn Gas Gathering System is supported by historically high recoverable reserves and low production costs, and that a short-term low-commodity-price environment is not expected to significantly affect gathering-system revenue.
What to watch
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Debt balance increased sharply
Outstanding principal under the credit agreement was $40.5 million at June 30, 2026, compared with $0 at June 30, 2025, increasing exposure to leverage and interest-rate conditions.
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Commodity and interest-rate exposure
Management identifies commodity prices as a major risk: natural gas and oil prices can fluctuate widely, and a substantial decline could materially reduce asset values, future operations, exploration and development activity, and gas-gathering revenue. The credit agreement permits the company to fix its interest rate, with market risk measured using a hypothetical 100-basis-point change.
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Material weakness remains open
Disclosure controls were not effective as of June 30, 2026 because of a material weakness related to accounting for significant and non-standard transactions; management is still implementing remediation procedures.
Management's outlook
No quantitative revenue or EPS guidance was provided in the 10-Q; numeric outlook appears deferred to the earnings release or call.
Earlier filings 4
10-K · March 27, 2026
Epsilon completed the November 14, 2025 Peak acquisition and grew 2025 revenue 64% to $51.59M while increasing proved reserves 86% to 156,037 MMcfe. Adjusted EBITDA rose to $30.74M, but GAAP results show a 2025 net loss…
10-Q · November 5, 2025
Epsilon reported Q3 2025 total revenue of $8,981,459 (up from $7,287,941 in Q3 2024) and diluted EPS of $0.05 (vs. $0.02 in Q3 2024). Operating income improved to $606,005 for the quarter and year-to-date operating cash…
10-K · March 19, 2025
Epsilon reported 2024 revenues of $31.52 million (up 3% vs. 2023) and generated adjusted EBITDA of $17.58 million, while net income declined to $1.93 million ($0.09 diluted EPS) from $6.95 million in 2023. Management…
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