Epsilon Energy Financials
This page shows Epsilon Energy (EPSN) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 8 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
FY2025 shows a financing-led balance-sheet reset, with external capital funding asset growth while profit signals weakened.
Cash generation and accounting profit separated sharply: despite a-$5.8M net loss, operating cash flow stayed positive at$20.6M . That gap matters more because it arrived alongside$43.7M of financing inflow and a much more levered balance sheet, which suggests FY2025 was funded as an asset buildout rather than out of current earnings alone.
The balance sheet became materially less cushiony in one year: the current ratio fell to 1.3x from 2.0x as liabilities expanded faster than liquid assets. For a business that carried high cash and modest leverage in earlier years, that shifts the operating posture toward greater reliance on external capital.
Revenue recovered to
Financial Health Signals
Scored against energy companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Epsilon Energy's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Epsilon Energy scores 0.74, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($164.9M) relative to total liabilities ($103.5M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Epsilon Energy passes 2 of 7 computable financial strength tests (2 of the nine could not be computed from available data). 2 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), neither operating efficiency signal passes.
For every $1 of reported earnings, Epsilon Energy generates $-3.56 in operating cash flow ($20.6M OCF vs -$5.8M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.
Epsilon Energy earns $-16.9 in operating income for every $1 of interest expense (-$10.5M vs $624K). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
Key Financial Metrics
Earnings & Revenue
Epsilon Energy generated $51.6M in revenue in fiscal year 2025. This represents an increase of 63.7% from the prior year.
Epsilon Energy reported -$5.8M in net income in fiscal year 2025. This represents a decrease of 400.8% from the prior year.
Epsilon Energy earned $-0.25 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 377.8% from the prior year.
Cash & Balance Sheet
Epsilon Energy held $9.0M in cash against $0 in long-term debt as of fiscal year 2025.
Epsilon Energy had 30M shares outstanding in fiscal year 2025. This represents an increase of 37.4% from the prior year.
Margins & Returns
Epsilon Energy's operating margin was -20.4% in fiscal year 2025, reflecting core business profitability. This is down 31.3 percentage points from the prior year.
Epsilon Energy's net profit margin was -11.2% in fiscal year 2025, showing the share of revenue converted to profit. This is down 17.4 percentage points from the prior year.
Epsilon Energy's ROE was -4.7% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 6.6 percentage points from the prior year.
Capital Allocation
Epsilon Energy spent $0 on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 100.0% from the prior year.
EPSN Income Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $25.6M+72.7% | $14.8M+65.0% | $9.0M-22.7% | $11.6M-28.1% | $16.2M+80.8% | $8.9M+22.7% | $7.3M-0.3% | $7.3M |
| Cost of Revenue | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Gross Profit | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | -$2.3M | N/A | N/A | $710K-34.2% | $1.1M | N/A | N/A | $16K |
| Operating Income | $10.8M+156.5% | -$19.1M-3255.1% | $606K-26.9% | $829K-88.4% | $7.2M+1072.5% | $611K+154.1% | $241K-79.4% | $1.2M |
| Interest Expense | $942K+62.2% | $580K+4874.9% | $12K-41.4% | $20K+63.0% | $12K+8.2% | $11K-35.9% | $18K+100.9% | $9K |
| Income Tax | $268K+107.2% | -$3.7M-745.6% | $576K-68.6% | $1.8M+10.0% | $1.7M+123.4% | $748K+102.9% | $368K-19.7% | $459K |
| Net Income | $729K+105.9% | -$12.4M-1260.0% | $1.1M-30.9% | $1.6M-61.4% | $4.0M+627.9% | -$761K-307.9% | $366K-55.1% | $816K |
| EPS (Diluted) | $0.02 | N/A | $0.05-28.6% | $0.07-61.1% | $0.18 | N/A | $0.02-50.0% | $0.04 |
EPSN Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $226.4M-0.8% | $228.2M+80.7% | $126.3M+2.2% | $123.6M-1.5% | $125.5M+4.2% | $120.5M-1.1% | $121.8M+0.5% | $121.1M |
| Current Assets | $29.8M-8.6% | $32.6M+70.3% | $19.1M+15.7% | $16.5M+6.4% | $15.5M+10.0% | $14.1M-4.6% | $14.8M-1.1% | $15.0M |
| Cash & Equivalents | $7.9M-11.7% | $9.0M-29.8% | $12.8M+28.9% | $9.9M+43.7% | $6.9M+5.7% | $6.5M-21.5% | $8.3M-3.2% | $8.6M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $16.8M+4.1% | $16.1M+257.3% | $4.5M-17.9% | $5.5M-31.3% | $8.0M+37.0% | $5.8M+30.7% | $4.5M-9.6% | $4.9M |
| Goodwill | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Liabilities | $102.3M-1.2% | $103.5M+297.0% | $26.1M+11.3% | $23.4M-9.2% | $25.8M+8.7% | $23.7M+1.2% | $23.4M+9.0% | $21.5M |
| Current Liabilities | $27.6M+10.7% | $25.0M+151.5% | $9.9M+34.1% | $7.4M-20.7% | $9.3M+33.8% | $7.0M-4.7% | $7.3M+20.9% | $6.1M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $124.1M-0.5% | $124.7M+24.5% | $100.2M0.0% | $100.2M+0.5% | $99.7M+3.1% | $96.7M-1.7% | $98.4M-1.3% | $99.6M |
| Retained Earnings | -$54.5M-2.2% | -$53.3M-36.7% | -$39.0M-0.8% | -$38.7M+0.5% | -$38.9M+6.4% | -$41.5M-5.4% | -$39.4M-2.6% | -$38.4M |
EPSN Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $10.1M+3746.9% | -$277K-107.0% | $4.0M-52.5% | $8.3M-2.7% | $8.6M+71.3% | $5.0M+82.4% | $2.7M-49.0% | $5.4M |
| Capital Expenditures | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Free Cash Flow | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Investing Cash Flow | -$4.3M+91.7% | -$51.3M-16447.3% | $314K+108.1% | -$3.9M+42.8% | -$6.8M-20.6% | -$5.6M-277.4% | -$1.5M-166.6% | $2.2M |
| Financing Cash Flow | -$6.9M-114.4% | $47.8M+3568.4% | -$1.4M-0.2% | -$1.4M0.0% | -$1.4M-0.4% | -$1.4M+31.6% | -$2.0M-45.9% | -$1.4M |
| Dividends Paid | $1.9M+0.9% | $1.9M+35.5% | $1.4M+0.2% | $1.4M0.0% | $1.4M+0.4% | $1.4M-0.3% | $1.4M+0.2% | $1.4M |
| Share Buybacks | N/A | $0 | $0 | $0 | $0 | $0-100.0% | $628K | $0 |
EPSN Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Operating Margin | 42.2%+171.3pp | -129.0%-135.8pp | 6.8%-0.4pp | 7.1%-37.2pp | 44.4%+37.5pp | 6.8%+3.5pp | 3.3%-12.7pp | 16.0% |
| Net Margin | 2.9%+86.8pp | -83.9%-95.9pp | 11.9%-1.4pp | 13.4%-11.5pp | 24.9%+33.4pp | -8.5%-13.5pp | 5.0%-6.1pp | 11.2% |
| Return on Equity | 0.6%+10.6pp | -10.0%-11.0pp | 1.1%-0.5pp | 1.6%-2.5pp | 4.0%+4.8pp | -0.8%-1.2pp | 0.4%-0.5pp | 0.8% |
| Return on Assets | 0.3%+5.8pp | -5.5%-6.3pp | 0.9%-0.4pp | 1.3%-1.9pp | 3.2%+3.8pp | -0.6%-0.9pp | 0.3%-0.4pp | 0.7% |
| Current Ratio | 1.08-0.2 | 1.31-0.6 | 1.93-0.3 | 2.23+0.6 | 1.66-0.4 | 2.020.0 | 2.02-0.5 | 2.47 |
| Debt-to-Equity | 0.820.0 | 0.83+0.6 | 0.26+0.0 | 0.23-0.0 | 0.26+0.0 | 0.250.0 | 0.24+0.0 | 0.22 |
| FCF Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
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Frequently Asked Questions
What is Epsilon Energy's annual revenue?
Epsilon Energy (EPSN) reported $51.6M in total revenue for fiscal year 2025. This represents a 63.7% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Epsilon Energy's revenue growing?
Epsilon Energy (EPSN) revenue grew by 63.7% year-over-year, from $31.5M to $51.6M in fiscal year 2025.
Is Epsilon Energy profitable?
No, Epsilon Energy (EPSN) reported a net income of -$5.8M in fiscal year 2025, with a net profit margin of -11.2%.
What is Epsilon Energy's operating margin?
Epsilon Energy (EPSN) had an operating margin of -20.4% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Epsilon Energy's net profit margin?
Epsilon Energy (EPSN) had a net profit margin of -11.2% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Epsilon Energy's return on equity (ROE)?
Epsilon Energy (EPSN) has a return on equity of -4.7% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Epsilon Energy's operating cash flow?
Epsilon Energy (EPSN) generated $20.6M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Epsilon Energy's total assets?
Epsilon Energy (EPSN) had $228.2M in total assets as of fiscal year 2025, including both current and long-term assets.
What is Epsilon Energy's current ratio?
Epsilon Energy (EPSN) had a current ratio of 1.31 as of fiscal year 2025, which is considered adequate.
What is Epsilon Energy's debt-to-equity ratio?
Epsilon Energy (EPSN) had a debt-to-equity ratio of 0.83 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Epsilon Energy's return on assets (ROA)?
Epsilon Energy (EPSN) had a return on assets of -2.5% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Epsilon Energy's Altman Z-Score?
Epsilon Energy (EPSN) has an Altman Z-Score of 0.74, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Epsilon Energy's Piotroski F-Score?
Epsilon Energy (EPSN) has a Piotroski F-Score of 2 out of 7 computable signals; 2 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Epsilon Energy's earnings high quality?
Epsilon Energy (EPSN) has an earnings quality ratio of -3.56x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Epsilon Energy cover its interest payments?
Epsilon Energy (EPSN) has an interest coverage ratio of -16.9x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Epsilon Energy?
Epsilon Energy (EPSN) scores 38 out of 100 on our Financial Health Score, indicating weak standing within its energy companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.