10-Q · April 28, 2026
Ranger reported revenue of $159.1M for Q1 2026, an 18% increase versus $135.2M a year ago, driven largely by the November 2025 AWS acquisition. Adjusted EBITDA rose to $23.3M (from $15.5M) and operating income improved…
Earnings analysis · 10-Q
RNGR earnings analysis
Filed July 28, 2026 · Our reading of the company's report
The latest report
Ranger delivered strong top-line growth in Q2, with revenue up 26% year over year to $176.5 million and operating margin improving to 6.7%; AWS acquisition contributions drove High Specification Rigs and Ancillary…
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Ranger delivered strong top-line growth in Q2, with revenue up 26% year over year to $176.5 million and operating margin improving to 6.7%; AWS acquisition contributions drove High Specification Rigs and Ancillary Services growth. However, diluted EPS of $0.29 remained below $0.32 a year earlier as higher depreciation, interest and taxes offset operating improvement. Cash conversion is the key counterweight: first-half operating cash flow fell to $23.0 million amid a $40.1 million working-capital outflow tied to customer payment delays, while investment spending reached $23.4 million. The filing contains no new numeric company guidance and no changes to formal risk factors.
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.
Reported figures
- Earnings per share
- $0.29
What stood out
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Revenue and margins improved materially
Q2 revenue rose $35.9 million, or 26%, year over year to $176.5 million and increased from $159.1 million in Q1 2026. Gross margin expanded to 19.2% from 17.9% sequentially and 18.2% in Q2 2025, while operating margin rose to 6.7% from 2.8% sequentially and 6.1% year over year.
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Sequential EPS recovery, modest year-over-year decline
Diluted EPS was $0.29, up from $0.12 in Q1 2026 but below $0.32 in Q2 2025; net income declined 5% to $6.9 million. Higher net interest expense of $1.1 million versus $0.1 million and tax expense of $3.4 million versus $2.8 million constrained conversion of operating gains to earnings.
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Rigs growth led by AWS and higher activity
High Specification Rigs revenue grew 31% to $113.4 million, supported by $30.3 million of AWS-acquisition revenue; rig hours increased to 146,800 from 117,000 and hourly rates increased to $772 from $738.
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Ancillary segment delivered growth and mix gains
Processing Solutions and Ancillary Services revenue increased 38% to $44.5 million, including $9.5 million from AWS. Its cost of services improved to 78% of segment revenue from 80%, supporting Adjusted EBITDA growth to $10.0 million from $6.6 million.
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Wireline restructuring improved profitability
Wireline Services adjusted EBITDA improved to $3.6 million from $1.6 million despite revenue falling 16% to $18.6 million, as cost of services fell 27% to $15.2 million and the cost ratio improved to 82% from 94%.
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Liquidity remains adequate with capital returns
The company retained $61.3 million of total liquidity at June 30, comprising $4.2 million cash and $57.1 million revolver availability. It also repurchased 321,600 shares for $5.0 million during the first six months, leaving $33.1 million in authorization.
What to watch
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Wireline activity and revenue remain pressured
Wireline Services revenue decreased $3.5 million, or 16%, to $18.6 million in Q2; production-services revenue declined $2.4 million and completion-services revenue declined $1.5 million. The company cautions that service lines exposed to discretionary completions could face lower utilization and pricing if customer capital spending falls.
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Receivable delays drove working-capital outflow
Operating cash flow fell 27% to $23.0 million in the first six months as working capital consumed $40.1 million, versus a $6.1 million use in the prior-year period. Management attributes this principally to accounts-receivable growth from continuing customer payment delays.
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ECHO buildout increased capital intensity
Investing cash outflow more than doubled to $23.4 million from $11.6 million in the first six months, primarily for ECHO hybrid-rig construction. This nearly matched $23.0 million of operating cash flow, increasing capital intensity while cash declined $6.1 million.
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Higher borrowing raised interest burden
Revolver borrowings were $13.7 million at June 30, 2026 at a 5.7% weighted-average rate, versus only $0.1 million of net interest expense in Q2 2025 compared with $1.1 million in Q2 2026. The facility is secured by substantially all company assets and matures May 31, 2028.
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Commodity-price outlook remains volatile
Management cited mixed oilfield-service conditions and commodity volatility: WTI averaged approximately $96 per barrel in Q2 2026, while the EIA forecasts approximately $70 in Q3 and $66 in Q4. A lower-price environment could reduce customer spending, demand, utilization and pricing.
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No formal risk-factor update; customer concentration persists
Item 1A contains no amended or newly disclosed risk factors; it refers investors to the Annual Report. Concentrated receivables remain notable, as the three largest trade receivable balances represented approximately 47%, 16% and 6% of consolidated net receivables at June 30, 2026.
Management's outlook
The 10-Q provides no company quantitative revenue or EPS guidance. Management expects customer activity to be driven by longer-term capital discipline, basin economics and production priorities; it cited EIA expectations for WTI of approximately $70 per barrel in Q3 2026 and $66 per barrel in Q4 2026, which are external forecasts rather than Ranger guidance.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.