MXC earnings analysis
What we found in MXC'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
Mexco’s quarter showed a sharp sequential recovery in profitability, with diluted EPS of $0.34, operating margin of 29.8% and positive free cash flow of $446,826. However, revenue of $1.629 million was below the approximately $2 million level in the prior quarter and prior-year quarter, while free cash flow remained below the prior-year $984,479. The filing identifies significant commodity-price and purchaser-concentration risks, and reports no material changes to the risk factors in the 2026 Form 10-K.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- EPS Rebounded Despite Lower Revenue
- Revenue was $1,629,000, down from approximately $2 million in the prior quarter and prior-year quarter based on the reported quarterly history, but diluted EPS increased to $0.34 from $0.02 sequentially and $0.30 in the prior-year quarter.
- Operating Margin Improved
- Gross margin was 78.4%, up from 78.1% sequentially but below 83.4% in the prior-year quarter. Operating margin improved to 29.8% from 6.6% sequentially and was above 28.3% a year earlier.
- Positive Free Cash Flow
- Free cash flow was positive at $446,826, reversing the prior quarter’s negative $251,623, although it declined from $984,479 in the prior-year quarter.
- Commodity Price Sensitivity
- Commodity sensitivity remains substantial: a $10-per-barrel change in average oil prices would have changed quarterly oil sales by $188,020, while a $1-per-Mcf gas-price change would have changed gas sales by $155,426.
- Current Commodity Benchmarks
- At June 30, 2026, WTI was $65.48 per barrel and Henry Hub natural gas was $3.34 per MMBtu, providing current market reference points for the company’s production economics.
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.
- Oil and Gas Price Volatility
- Oil and gas price volatility is the company’s most significant market risk. During the last twelve months, WTI ranged from $51.25 to $108.93 per barrel and Henry Hub ranged from $2.54 to $30.72 per MMBtu; management expects volatility to continue.
- Purchaser Concentration
- Customer concentration creates receivables exposure: the two largest purchasers represented approximately 38% and 20%, respectively, of total oil and gas receivables at June 30, 2026. The receivables are generally not collateralized.
- Liquidity and Reserve Sensitivity
- Lower commodity prices could reduce reserves, borrowing capacity, liquidity and capital available for development, and may trigger a full-cost accounting write-down. The filing states that a $10-per-barrel oil-price change would affect quarterly oil sales by $188,020 and a $1-per-Mcf gas-price change would affect gas sales by $155,426.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.34
- Gross margin
- 78.4%
- Operating margin
- 29.8%
What they said about what is next.
The filing does not provide explicit quantitative revenue or EPS guidance. No new well-participation outlook was identified in the provided 10-Q text; the prior annual disclosure indicated participation in 33 horizontal wells for fiscal 2027.
The filing reads about the same as the one before it.
What came before.
- 10-K · June 29, 2026
- Mexco Energy Corporation's 10-K for the year ended March 31, 2026, shows operational challenges amid declining oil prices, impacting its revenue and net income. The company maintains a commitment to share buybacks and…
- 10-Q · February 10, 2026
- Mexco Energy Corporation reported a significant decline in revenue for Q3 2026 with total revenue of $1,384,000, down 29% from $1,828,404 in Q3 2025. The gross margin also decreased to 78.1%, and EPS fell sharply to…
- 10-Q · November 12, 2025
- Mexco Energy Corporation reported a net income of $323,506 for Q2 FY2026, with revenue of $1,624,566, reflecting a 4% decrease year-over-year. EPS increased to $0.16, demonstrating improved profitability despite a…
- 10-Q · August 12, 2025
- Mexco Energy Corporation reported revenue of $1,754,734 for Q2 2025, which signifies a 4% increase compared to $1,688,056 in Q2 2024, while net income decreased to $241,951 from $291,039 in the prior year. Gross margin…
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 MXC 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