10-Q · May 11, 2026
Pangaea Logistics Solutions reported a significant revenue increase of 39% year-over-year, totaling $170.6 million in Q1 2026 compared to $122.8 million in Q1 2025, driven by higher freight rates and a rise in shipping…
Earnings analysis · 10-Q
PANL earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
Pangaea delivered a materially stronger Q2, with revenue up 19% year over year, gross margin expanding to approximately 16.2%, operating margin reaching approximately 11.4%, and diluted EPS improving to $0.16 from a…
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Pangaea delivered a materially stronger Q2, with revenue up 19% year over year, gross margin expanding to approximately 16.2%, operating margin reaching approximately 11.4%, and diluted EPS improving to $0.16 from a $0.04 loss. Stronger freight markets drove a 50% increase in TCE rates and operating cash flow rose to $25.878 million, while cash increased and secured obligations declined. Offsetting concerns include an 8% decline in shipping days, a $6.696 million derivative loss, reduced working capital and expected survey spending of approximately $14 million. No numeric revenue or EPS guidance was provided.
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.
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
- $0.16
What stood out
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Revenue rose 19% year over year
Q2 2026 revenue increased 19% year over year to $187.119 million from $156.689 million. Voyage revenue rose 17% to $171.697 million and charter revenue rose 67% to $11.469 million.
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Margins expanded sharply
Gross profit increased to $30.343 million from $10.865 million, lifting gross margin to approximately 16.2% from 6.9%. Income from operations rose to $21.345 million from $3.654 million, with operating margin expanding to approximately 11.4% from 2.3%.
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GAAP EPS returned to profit
Diluted EPS improved to $0.16 from a $0.04 loss in Q2 2025. Net income attributable to Pangaea was $10.201 million versus a $2.742 million loss, although the company recorded a $6.696 million unrealized derivative loss.
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TCE rates increased 50%
TCE rates increased 50% to $18,153 per day from $12,108, despite total shipping days declining 8% to 5,735 from 6,222. Management attributed the rate improvement to stronger drybulk markets, long-term contracts of affreightment and the specialized fleet.
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Operating cash flow improved
Six-month operating cash flow increased to $25.878 million from $10.039 million. Investing activities provided $7.109 million, including $9.678 million of vessel and equipment-sale proceeds, while purchases of vessels, improvements and fixed assets totaled $4.424 million.
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Cash rose as secured debt declined
Cash, cash equivalents and restricted cash totaled $105.945 million at June 30, 2026 versus $103.324 million at December 31, 2025. Net secured debt, financing obligations and finance leases declined to $349.487 million from $372.208 million.
What to watch
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Lower shipping-day volume
Shipping volume declined in the quarter: total shipping days fell to 5,735 from 6,222, voyage days fell 11% to 4,951, and ownership days fell 8% to 3,505. Higher TCE rates offset the lower activity in Q2, but weaker vessel utilization could pressure revenue if rates normalize.
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Derivative losses remain material
Derivative volatility reduced reported earnings, with a $6.696 million unrealized loss in Q2 versus a $1.301 million loss in Q2 2025. The loss was primarily driven by a $5.8 million decline in the fair value of bunker hedges after fuel prices fell late in the quarter.
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Working capital absorbed cash
Working capital declined to $73.8 million from $87.7 million at December 31, 2025, while inventories increased to $51.095 million from $28.389 million and advance hire, prepaid expenses and other current assets increased to $50.027 million from $28.478 million.
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Higher chartering costs
Charter hire expense increased 24% to $39.104 million, while average charter hire cost rose to $16,816 per day from $11,813. Higher market charter rates could compress margins if freight rates weaken or chartered-in tonnage cannot be redeployed profitably.
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Higher depreciation burden
Management expects depreciation expense to increase by approximately $2.8 million during the remaining six months of 2026 following shortened useful lives for 26 of 38 vessels. The accounting change reduced Q2 basic and diluted EPS by approximately $0.03.
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No new formal risk-factor update
The filing states that no significant market-risk changes occurred since December 31, 2025 and refers investors to the 2025 Form 10-K for risk factors; therefore, no material new risk-factor wording was identified. Nonetheless, management noted that nine surveys expected in the remainder of 2026 will cost approximately $14 million and reduce available operating days during repositioning.
Management's outlook
No numeric revenue or EPS guidance was provided. Management said current cash and anticipated cash generation should fund operations for at least the next 12 months if drybulk shipping rates do not decline significantly from current levels. The company expects nine intermediate and special surveys during the remainder of 2026 at an aggregate estimated cost of approximately $14 million.
Earlier filings 4
10-K · March 16, 2026
Pangaea reported solid top-line expansion in 2025 (quarterly run-rate summing to ~$633.0M vs ~$536.0M in 2024) driven by higher fleet utilization and niche ice-class trades (26.2 million tons carried; averaged 64…
10-Q · August 8, 2025
Pangaea reported Q2 2025 revenue of $156,689,442, up versus both the prior quarter (Q1 2025 implied $122,801,886) and prior-year quarter ($131,497,852). Despite top-line growth, operating income fell to $3,653,592…
10-Q · May 12, 2025
Pangaea reported Q1 2025 revenue of $122.80M, up 17.2% versus Q1 2024 ($104.75M) but down about 16.5% versus the prior quarter (~$147.0M). Operating income collapsed to $2.93M (2.4% margin) from $11.03M (10.5% margin) a…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.