EPSN earnings analysis
What we found in EPSN's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- EPS strengthened materially
- Q2 2026 EPS was $0.23, improving from $0.02 in Q1 2026 and $0.07 in Q2 2025.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.23
What they said about what is next.
No quantitative revenue or EPS guidance was provided in the 10-Q; numeric outlook appears deferred to the earnings release or call.
The filing reads about the same as the one before it.
What came before.
- 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…
- 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…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing EPSN makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever