10-Q · August 4, 2026
Talos posted a strong Q2 recovery, with revenue up 56.5% year over year to $664.8 million and net income of $149.7 million versus a $185.9 million prior-year loss, aided by markedly higher oil prices and the absence of…
Earnings analysis · 10-Q
TALO earnings analysis
Filed November 3, 2026 · Our reading of the company's report
The latest report
Talos reported $595.991 million of revenue and $0.58 of adjusted diluted EPS, exceeding consensus estimates of $556.959 million and $0.37, respectively. Revenue and adjusted EPS improved materially year over year, while…
Read full summary
Talos reported $595.991 million of revenue and $0.58 of adjusted diluted EPS, exceeding consensus estimates of $556.959 million and $0.37, respectively. Revenue and adjusted EPS improved materially year over year, while adjusted free cash flow reached $186.3 million and full-year production guidance was raised to 92.5–94.5 MBoe/d. The outlook remains constructive, but Hurricane Isaias, a $(0.49) GAAP diluted loss, unresolved Equinor litigation and acquisition/international expansion execution risks temper the positive assessment.
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.
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
- $0.58
What stood out
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Revenue rebounded year over year
Revenue was $595.991 million, up approximately 32.4% from $450 million in 2025 Q3 but down approximately 10.4% from $665 million in 2026 Q2. Adjusted diluted EPS was $0.58 versus $(0.55) in the prior-year quarter and $0.88 in the preceding quarter.
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Strong operating earnings and cash flow
Production was 91.5 MBoe/d, adjusted EBITDA was $406.1 million and adjusted free cash flow was $186.3 million. Adjusted free cash flow was substantially above the $29 million reported in 2025 Q3, despite declining approximately 6.4% from $199 million in 2026 Q2.
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Production outlook raised
Full-year 2026 production guidance increased to 92.5–94.5 MBoe/d from 85.0–90.0 MBoe/d, while oil guidance increased to 68.0–70.0 MBo/d from 62.0–66.0 MBo/d.
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Meaningful share repurchases
Talos repurchased 1,447,866 shares during the quarter at an average price of $16.31, leaving approximately $176.379 million available under the authorized program at September 30, 2026.
What to watch
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Hurricane disruption threatens Q4 output
Management expects Hurricane Isaias to reduce fourth-quarter production by approximately 7 MBoe/d, creating a near-term production and cash-flow headwind despite the raised full-year production outlook of 92.5–94.5 MBoe/d.
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GAAP profitability remains volatile
The quarter included a $(0.49) GAAP diluted loss, even though adjusted diluted EPS was $0.58, indicating continued exposure to non-operating charges and earnings volatility.
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Equinor decommissioning litigation persists
The Equinor litigation remains unresolved: the September 2026 court ruling dismissed 6 of Equinor’s theories but left its declaratory-relief and breach-of-contract claims, as well as Talos ERT’s declaratory-relief counterclaim, intact. Trial is currently scheduled for summer 2027.
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International expansion execution risk
New international expansion adds execution risk in offshore Honduras and offshore Mexico, including permitting, political, infrastructure and geological uncertainties; the filing specifically notes that Honduras remains relatively underexplored and that commercial assumptions may differ from expectations.
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Acquisition integration and leverage risk
The recently closed Coulomb and Na Kika acquisition adds integration and asset-liability risk, including the need to manage additional operating and abandonment obligations and potentially higher leverage or capital requirements.
Management's outlook
Full-year 2026 average production guidance was raised to 92.5–94.5 MBoe/d from 85.0–90.0 MBoe/d, while oil guidance increased to 68.0–70.0 MBo/d from 62.0–66.0 MBo/d. Management expects Hurricane Isaias to reduce fourth-quarter production by approximately 7 MBoe/d; no numeric revenue or EPS guidance was provided.
Earlier filings 4
10-Q · May 5, 2026
Talos Energy reported for Q1 2026 a revenue of $472.31 million, exceeding estimates and previous year’s figures despite a drop in production volumes leading to an impairment of $145 million. While EPS improved to -0.07,…
10-K · February 25, 2026
Talos Energy's 10-K filing for the year ended December 31, 2025 reflects significant challenges marked by decreased revenues and greater losses compared to prior periods. The company recorded a revenue of $1.78 billion…
10-Q · November 6, 2025
Talos Energy Inc. reported Q3 2025 results with revenue of $450 million, a decrease from $509 million in Q3 2024, while diluted EPS improved to -0.19 from -0.49 a year prior. Gross margin showed a slight recovery to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.