10-Q · May 13, 2026
KLX Energy Services reported Q1 2026 revenues of $144.7 million, a 6.0% decline compared to Q1 2025, and an operating loss of $12.1 million, improving from a loss of $17.7 million a year prior. EPS loss narrowed to…
Earnings analysis · 10-Q
KLXE earnings analysis
Filed August 11, 2026 · Our reading of the company's report
The latest report
KLXE's Q2 2026 revenue increased to $167.3 million, up 15.4% sequentially and 5.2% year over year, while diluted EPS improved to $(0.64) from $(1.23) in Q1 and $(1.04) a year earlier. The EPS result beat consensus by…
Read full summary
KLXE's Q2 2026 revenue increased to $167.3 million, up 15.4% sequentially and 5.2% year over year, while diluted EPS improved to $(0.64) from $(1.23) in Q1 and $(1.04) a year earlier. The EPS result beat consensus by $0.18, but the company remains loss-making and the filing provides no quantitative operating guidance. Sentiment is neutral because improving revenue and EPS are offset by substantial liquidity, execution, dilution, and ownership risks tied to the proposed $125.0 million Rights Offering and $94.0 million backstop.
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
- $-0.64
What stood out
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Revenue Rebounded
Revenue was $167.3 million, up from $145.0 million in Q1 2026 and $159.0 million in Q2 2025, increases of approximately 15.4% sequentially and 5.2% year over year.
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EPS Loss Narrowed
Diluted EPS improved to $(0.64) from $(1.23) in Q1 2026 and $(1.04) in Q2 2025, representing sequential and year-over-year improvements of $0.59 and $0.40, respectively.
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EPS Beat, Revenue Near Estimate
The company reported diluted EPS of $(0.64) versus the consensus estimate of $(0.82), a $0.18 beat, while revenue of $167.3 million was approximately $0.2 million below the $167.5 million estimate.
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Controls Remained Effective
Disclosure controls and procedures were deemed effective as of June 30, 2026, and management reported no changes in internal control that materially affected or were reasonably likely to materially affect reporting.
What to watch
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Rights Offering Execution Risk
The planned Rights Offering may not close, and if it is not completed the company stated it may lack sufficient liquidity to meet obligations or comply with debt covenants. The offering targets up to $125.0 million, with a $94.0 million backstop commitment.
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Significant Dilution Risk
If shareholders do not fully exercise their rights, additional shares may be issued to Backstop Parties through an exchange of $94.0 million of 2030 Senior Notes, potentially causing significant and immediate dilution without providing additional cash proceeds.
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Backstop Ownership Concentration
Backstop Parties may increase their aggregate commitment from $94.0 million to up to $125.0 million and each is subject to a 30% ownership limitation; resulting ownership and board-designation rights could give them significant influence over corporate matters.
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Profitability Remains Challenged
Operating performance remains loss-making: diluted EPS was $(0.64) in Q2 2026, while the prior quarter's operating margin was negative 8.4% and the prior-year quarter's operating margin was negative 5.5%.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance; operating outlook was not updated in the filing.
Earlier filings 4
10-K · March 12, 2026
KLX presents a strategy focused on technically differentiated, proprietary oilfield services (directional drilling, completions, intervention and production) delivered across three U.S. geographic segments. 2025 saw a…
10-Q · November 6, 2025
KLX Energy Services reported Q3 revenue of $166.7 million (Q3 2024: $188.9 million) and a GAAP net loss of $(14.3) million, or $(0.74) per diluted share (Q3 2024: $(8.2) million, $(0.51) per share). Gross margin held at…
10-Q · May 9, 2025
KLX reported Q1 revenue of $154.0 million, down $20.7 million versus Q1 2024 ($174.7M), with gross margin improving to 19.6% but operating margin deteriorating to (11.5)% and GAAP diluted loss per share of $(1.62) (vs.…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.