--- title: "Target Hospitality | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 72.78 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285980462.md" datetime: "2026-05-11T18:09:16.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285980462.md) - [en](https://longbridge.com/en/news/285980462.md) - [zh-HK](https://longbridge.com/zh-HK/news/285980462.md) --- # Target Hospitality | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 72.78 M Revenue: As of FY2026 Q1, the actual value is USD 72.78 M, missing the estimate of USD 74.03 M. EPS: As of FY2026 Q1, the actual value is USD -0.13, missing the estimate of USD -0.1133. EBIT: As of FY2026 Q1, the actual value is USD -13.43 M. ### Segment Revenue #### For the Three Months Ended March 31, 2026 - **HFS – South**: $33,057 thousand - **WHS**: $23,620 thousand - **Government**: $13,443 thousand - **All Other**: $2,661 thousand - **Total Revenue**: $72,781 thousand #### For the Three Months Ended March 31, 2025 - **HFS – South**: $36,068 thousand - **WHS**: $5,204 thousand - **Government**: $25,717 thousand - **All Other**: $2,908 thousand - **Total Revenue**: $69,897 thousand ### Operational Metrics #### Net Loss - **Three Months Ended March 31, 2026**: - $12,962 thousand - **Three Months Ended March 31, 2025**: - $6,459 thousand #### Gross Profit - **Three Months Ended March 31, 2026**: $6,883 thousand - **Three Months Ended March 31, 2025**: $17,964 thousand #### Operating Loss - **Three Months Ended March 31, 2026**: - $14,323 thousand - **Three Months Ended March 31, 2025**: - $1,076 thousand #### Adjusted Gross Profit by Segment - **HFS – South**: $8,403 thousand (2026), $11,033 thousand (2025) - **WHS**: $9,265 thousand (2026), $1,269 thousand (2025) - **Government**: $4,955 thousand (2026), $19,178 thousand (2025) - **All Other**: - $165 thousand (2026), $156 thousand (2025) - **Total Adjusted Gross Profit**: $22,458 thousand (2026), $31,636 thousand (2025) #### Selling, General and Administrative Expenses - **Three Months Ended March 31, 2026**: $14,557 thousand - **Three Months Ended March 31, 2025**: $14,805 thousand #### Interest Expense, Net - **Three Months Ended March 31, 2026**: $892 thousand - **Three Months Ended March 31, 2025**: $4,329 thousand #### Income Tax Benefit - **Three Months Ended March 31, 2026**: - $2,253 thousand - **Three Months Ended March 31, 2025**: - $1,316 thousand #### Adjusted EBITDA - **Three Months Ended March 31, 2026**: $9,941 thousand - **Three Months Ended March 31, 2025**: $21,571 thousand #### Capital Expenditures by Segment - **HFS – South**: $1,217 thousand (2026), $2,653 thousand (2025) - **WHS**: $43,754 thousand (2026), $15,647 thousand (2025) - **Government**: $63 thousand (2026), $2,598 thousand (2025) - **All Other**: $20 thousand (2026), $18 thousand (2025) #### Total Assets by Segment - **HFS – South**: $159,521 thousand (March 31, 2026), $165,406 thousand (December 31, 2025) - **WHS**: $142,110 thousand (March 31, 2026), $63,934 thousand (December 31, 2025) - **Government**: $115,103 thousand (March 31, 2026), $157,460 thousand (December 31, 2025) - **All Other**: $19,984 thousand (March 31, 2026), $21,100 thousand (December 31, 2025) - **Total Reportable Segment Assets**: $436,718 thousand (March 31, 2026), $407,900 thousand (December 31, 2025) ### Cash Flow #### Net Cash Provided by Operating Activities - **Three Months Ended March 31, 2026**: $7,040 thousand - **Three Months Ended March 31, 2025**: $3,939 thousand #### Net Cash Used in Investing Activities - **Three Months Ended March 31, 2026**: - $39,355 thousand - **Three Months Ended March 31, 2025**: - $17,205 thousand #### Net Cash Provided by (Used in) Financing Activities - **Three Months Ended March 31, 2026**: $29,432 thousand - **Three Months Ended March 31, 2025**: - $142,937 thousand #### Discretionary Cash Flows - **Three Months Ended March 31, 2026**: $5,791 thousand - **Three Months Ended March 31, 2025**: - $56 thousand ### Unique Metrics #### Average Daily Rate (ADR) for HFS – South - **Three Months Ended March 31, 2026**: $71.52 - **Three Months Ended March 31, 2025**: $70.07 ### Future Outlook and Strategy Target Hospitality Corp. expects margins to improve throughout 2026, primarily due to growth in the WHS segment from recently executed contracts, including the West Texas Power Community, Pecos Power Community, and Data Center Hub Contract . The company anticipates growth capital expenditures, net of customer advance payments and asset redeployments, to be approximately $330 million to $340 million in 2026, largely driven by the AI Infrastructure Contract . 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