10-Q · August 10, 2026
The extracted 10-Q text does not include the income statement, balance sheet, cash-flow statement, segment results, or operating MD&A, so no conclusions can be drawn on quarterly revenue, margins, EPS, working capital,…
Earnings analysis · 10-Q
TH earnings analysis
Filed November 9, 2026 · Our reading of the company's report
The latest report
Target Hospitality delivered a strong revenue quarter at $129.1 million and Adjusted EBITDA of $34.2 million, but diluted EPS was a $0.09 loss versus the $0.01 consensus loss. WHS growth supported the operating…
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Target Hospitality delivered a strong revenue quarter at $129.1 million and Adjusted EBITDA of $34.2 million, but diluted EPS was a $0.09 loss versus the $0.01 consensus loss. WHS growth supported the operating improvement, and full-year 2026 guidance was maintained at $435 million-$445 million of revenue and $105 million-$115 million of Adjusted EBITDA. The outlook remains mixed because of the earnings miss, $223 million of floating-rate debt, and planned capital expenditures of $490 million-$510 million.
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
- $-0.09
What stood out
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Revenue beat estimates
Third-quarter revenue was $129.1 million, up from $85 million in Q2 2026 and $99 million in Q3 2025. Revenue exceeded the $119.9 million consensus estimate by approximately $9.2 million.
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WHS drove EBITDA growth
WHS growth drove Adjusted EBITDA of $34.2 million, a 59% year-over-year increase, with Adjusted EBITDA margin reaching 27%.
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Full-year outlook maintained
Full-year 2026 outlook was reaffirmed at revenue of $435 million-$445 million and Adjusted EBITDA of $105 million-$115 million.
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Completed $30 million repurchase
The company repurchased 1,693,599 shares during the quarter at an average price of $17.71 per share, utilizing the full $30 million authorization.
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Controls remained effective
Management reported effective disclosure controls as of September 30, 2026, and stated there were no changes in internal control that materially affected reporting.
What to watch
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EPS missed consensus
Diluted EPS was a loss of $0.09 versus a consensus loss of $0.01 and was weaker than the $0.01 loss reported in Q3 2025, indicating continued earnings pressure despite the revenue beat.
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Floating-rate debt exposure
The company had $223 million of outstanding floating-rate ABL obligations as of September 30, 2026. A 100-basis-point increase in floating rates would increase annual consolidated interest expense by approximately $2.2 million.
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High capital spending intensity
The 2026 capital expenditure outlook of $490 million-$510 million is substantial relative to the $435 million-$445 million revenue outlook, creating execution and funding risk.
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Data-center permitting risk
A September 21, 2026 Texas directive paused issuance of all permits related to data center projects until an ERCOT verification and audit is completed, potentially delaying occupancy at Texas facilities serving data centers.
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Concentration in new end markets
Demand is increasingly tied to critical infrastructure and AI-related data-center projects; a slowdown in data-center investment or regulatory opposition could reduce utilization and results.
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Unhedged commodity exposure
The company stated it does not currently hedge commodity-price exposure, while commodity volatility can affect both profitability and cash flows.
Management's outlook
Full-year 2026 outlook was reaffirmed at revenue of $435 million-$445 million, Adjusted EBITDA of $105 million-$115 million, and capital expenditures of $490 million-$510 million. Management also projects annualized revenue above $750 million and Adjusted EBITDA above $300 million exiting 2027.
Earlier filings 4
10-Q · May 11, 2026
Target Hospitality Corp. reported Q1 2026 revenue of $72.8 million, marking a 4% increase from $69.9 million in the prior year despite a wider net loss of $12.9 million compared to $6.5 million the previous year. The…
10-K · March 11, 2026
Target Hospitality positions itself as a vertically integrated specialty rental and hospitality services leader with 16,991 beds across 29 communities and reported approximately $321 million of revenue for the year…
10-K · March 26, 2025
Target Hospitality positions itself as a large, vertically integrated specialty rental and hospitality services provider with 16,865 beds across 26 communities and recurring, contract-backed revenue (2024 revenue ~ $386…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.