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…
Earnings analysis · 10-Q
MXC earnings analysis
Filed August 12, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
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.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
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
- $0.34
What stood out
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.