10-Q · May 7, 2026
Gran Tierra Energy's Q1 2026 report shows a significant increase in revenue but a larger net loss compared to the same period last year. Revenue reached $172.1 million, a 2% rise from Q1 2025, while loss per share…
Earnings analysis · 10-Q
GTE earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Gran Tierra delivered a strong Q2 turnaround, with revenue up 25% to $187.2 million, gross margin expanding to 40.3%, and diluted EPS improving to $0.70 from a $(3.38) loss in Q1. The improvement was principally…
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Gran Tierra delivered a strong Q2 turnaround, with revenue up 25% to $187.2 million, gross margin expanding to 40.3%, and diluted EPS improving to $0.70 from a $(3.38) loss in Q1. The improvement was principally price-led—Brent rose 45% year over year to $96.68/bbl—while NAR production declined 20% to 31,990 BOEPD. Liquidity improved to $126.7 million of cash, but the $606.2 million senior-note balance and $287.7 million oil-prepayment balance remain material constraints; EPS also fell short of the supplied $0.85 consensus.
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.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
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
- $0.7
- Gross margin
- 40.3%
What stood out
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Revenue rose 25% on stronger oil prices
Oil, natural gas and NGL sales rose 25% year over year to $187.2 million and 9% sequentially from $172.1 million, driven by a 45% year-over-year increase in average Brent to $96.68/bbl despite a 16% decline in sales volumes.
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Profitability rebounded sharply
The company swung to net income of $24.9 million, or $0.70 diluted EPS, from a $12.7 million loss, or $(0.36) per share, a year earlier and a $119.2 million loss in Q1 2026. Gross profit increased to $75.5 million from $23.3 million year over year and $36.7 million sequentially.
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Gross margin expanded materially
Calculated gross margin expanded to 40.3% from 15.6% a year ago and 21.3% in Q1, as revenue per BOE rose to $63.95 from $42.82 while operating expenses fell 7% to $51.6 million.
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Ecuador and Colombia lifted segment profits
Ecuador was the principal segment upside: revenue increased to $42.0 million from $8.5 million and gross profit reached $24.8 million versus a $0.4 million gross loss. Colombia gross profit more than doubled to $44.6 million from $19.9 million.
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Cash generation covered quarterly capex
Adjusted EBITDA rose 11% year over year to $85.1 million and funds flow from operations increased 12% to $60.3 million. With $54.3 million of capex, quarterly free cash flow was approximately $6.0 million, implying capex intensity of 29.0% of revenue.
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Cash balance and revolver liquidity improved
Cash and cash equivalents increased 53% from $82.9 million at December 31, 2025 to $126.7 million at June 30, 2026. The undrawn revolving credit facility had a C$75.0 million ($52.8 million) borrowing base and commitment.
What to watch
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Production and sales volumes declined sharply
Production NAR fell 20% year over year to 31,990 BOEPD and declined 15% sequentially; sales volumes fell 16% year over year to 32,166 BOEPD. Management attributes the decline to Colombian production issues, higher price-linked in-kind royalties, and Canadian asset sales.
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EPS missed consensus and hedging drives volatility
Reported $0.70 diluted EPS was below the provided $0.85 consensus estimate. The quarter's result also included a $45.9 million unrealized derivative gain, compared with an $88.4 million derivative loss in Q1 2026, creating earnings volatility tied to hedging marks.
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Leverage and near-term debt obligations remain high
Debt remains substantial: June 30 senior notes totaled $606.2 million and oil-prepayment borrowings were $287.7 million, including $86.3 million classified current. The company must offer to repurchase up to $30.0 million of its 9.75% notes by December 31, 2026.
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Border closure increased Colombian transport costs
The Colombia-Ecuador border closure required a more expensive alternative Putumayo transport route, adding approximately $5.9 million of quality and transportation discounts in Q2. South American discounts were $10.47 per BOE, and Colombia's realized discount was $15.39 per BOE.
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No formal risk-factor update; commodity exposure persists
No new or revised enumerated risk factors were added in Item 1A; the filing instead refers investors to the 2025 Form 10-K and cites ongoing global conflicts and oil-and-gas-industry volatility. The company remains exposed to commodity pricing, with Brent averaging $96.68/bbl in Q2.
Management's outlook
The 10-Q provides no explicit quantitative revenue, EPS, production, or capital-spending guidance. Management states that cash on hand and operating cash generation should be sufficient for its planned capital program and strategic objectives over the next 12 months, given current oil prices and production levels.
Earlier filings 4
10-K · March 4, 2026
Gran Tierra positions itself as a high-grading E&P focused on conventional basins with assets in Colombia, Canada and Ecuador and intends to fund a $120–$160 million 2026 capital program from operating cash flow…
10-Q · October 31, 2025
Gran Tierra reported Q3 oil, natural gas and NGL sales of $149,254,000 and diluted EPS of $(0.57), a small revenue decline versus Q3 2024 ($151,373,000) but a material swing in EPS versus prior-year EPS of $0.04. The…
10-Q · May 2, 2025
Gran Tierra reported Q1 oil and gas sales of $170,533 (thousands) and a net loss of $(19,280) (thousands), or $(0.54) per share, compared with net loss $(78) in Q1 2024. Operating cash flow was strong at $73,230…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.