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RGCO · 10-Q filed May 7, 2026

RGCO earnings analysis

What we found in RGCO'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

RGC Resources, Inc. delivered a robust Q2 2026 performance, with net income growing to $8.7 million or $0.84 per diluted share, exceeding market expectations due to improved operating margins and investment in the Mountain Valley Pipeline. Revenue reached $45.5 million, driven by increased gas sales and successful implementation of higher non-gas base rates, reflecting a 25% rise from Q2 2025.

What stood out

The parts that mattered.

Pulled out of the filing itself, with the figures the company reported.

Strong Revenue Growth
Revenue surged to $45.5 million, up 25% from $36.5 million in Q2 2025.
EPS Beat Expectations
Diluted EPS reached $0.84, exceeding estimates of $0.77.
Improved Gross Utility Margin
Gross utility margin increased by 7% to $20.8 million from $19.4 million.
Higher Investment Earnings
Equity in earnings from investment activities rose by $102,816, or 13%.
Significant Increase in SAVE Revenues
SAVE program revenues increased by $261,000, providing additional margin support.
Improved Cash Position
Cash and cash equivalents rose to $3.4 million, up from $2.3 million.
What to watch

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.

Inflationary Pressures on Costs
Operating expenses increased by $295,775, or 6%, due to inflation impacting various cost items.
Regulatory Risk from LNG Facility Damage
Ongoing issues with LNG facility damage could financially impact operations if unrecoverable.
Weather Variability Impact on Demand
Winter weather fluctuations could adversely impact gas demand and revenue.
The numbers

What they reported.

What the company itself reported, taken out of the document.

What survived to operating profit
Of every $100 of revenue Cost of sales $54 Operating expenses $21 Left as operating profit $25
Percentages of revenue, taken from the filing. Drawn this way because it holds whatever scale the company reports in.
Earnings per share
$0.84
Gross margin
45.7%
Operating margin
24.8%
Segment
Gas Utility
Segment
Investment in Affiliates
Guidance

What they said about what is next.

Outlook deferred to earnings press release / call.

How we read the filing overall

The filing reads better than the one before it.

One reading of one document. It is not advice, and it is not a forecast.
Earlier filings

What came before.

10-K · December 4, 2025
RGC Resources (Resources / Roanoke Gas) is a small, regulated natural gas utility whose Roanoke Gas distribution operations accounted for more than 99% of consolidated revenues in FY2025. Fiscal 2025 revenue increased…
10-Q · February 10, 2025
RGC Resources reported quarterly revenue of $27,289,486 (up $2,870,134 or 11.8% vs. $24,419,352 a year ago) and net income of $5,269,689 (diluted EPS $0.51, up $0.01 vs. $0.50). Operating income rose to $7,328,021 but…
10-Q · February 6, 2024
RGC Resources reported quarterly revenue of $24,419,352 (down $8,862,983 or ~26.7% vs. $33,282,335 a year ago) while net income rose to $5,019,992 ($0.50 diluted EPS vs. $0.33). Margins expanded materially (operating…
10-K · December 1, 2023
RGC Resources remains a predominantly regulated, local natural gas utility: Roanoke Gas accounted for more than 99% of consolidated revenues in fiscal 2023. The company reported $97,439,765 of revenue and $45,671,443 of…

This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.

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