Filing Flows › Target Hospitality (TH) › Q1 2025
Target Hospitality (TH) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 19, 2025
Target Hospitality (TH) reported revenue of $69.9M for the first quarter 2025 (Q1 2025), -34% from a year earlier and -16% from the quarter before. Operating margin was -1.5%, net loss $6.5M (9.2% of revenue).
Target Hospitality, Q1 2025: revenue $69.9M (-34% year over year), operating margin -1.5%, net loss $6.5M, operating cash flow $3.9M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $69.9M | -16% | -34% |
| Operating profit | −$1.1M | -105% | — |
| Net earnings | −$6.5M | -152% | — |
| Operating cash flow | $3.9M | -87% | -92% |
What changed
Revenue was $69.9M in Q1 2025, down 34% year over year and down 16% from the previous quarter. HFS - South was the largest line at 49% of revenue. Government lost $22.0M year over year (down 64%), 60% of the total change.
Gross margin was 25.7%, down 20.3 points from a year earlier. Operating costs exceeded revenue by $1.1M, an operating margin of -1.5%. Operating expenses grew 2% against a revenue fall of 34%. The fastest-growing cost line was Other operating costs (+12%). The quarter ended with a net loss of $6.5M, after a profit of $12.5M the previous quarter. Net interest and other expense of $6.7M was the main reason.
Operating cash flow was $3.9M (down 92% year over year). Non-cash charges added back $17.6M of depreciation and amortization and $1.7M of share-based compensation. Working capital and other items used $9.0M. Capital expenditures of $15.5M exceeded it, leaving free cash flow of −$11.6M.
Questions
What was Target Hospitality's revenue in the first quarter 2025?
Target Hospitality (TH) reported revenue of $69.9M for the first quarter 2025 (Q1 2025), -34% from a year earlier and -16% from the quarter before.
Was Target Hospitality profitable in the first quarter 2025?
Operating loss was $1.1M (-1.5% of revenue) and net loss $6.5M.
Source: Target Hospitality 10-Q on SEC EDGAR.