Q2 FY2026
Filed Oct 28, 2026EON Resources Reports 40% Year-Over-Year Revenue Growth; Narrows Net Loss by 77% and Advances Permian Basin Development
Reported revenue increased 40% year over year to $6.49 million and net loss narrowed to $692K, but total expenses increased to 7,758,494, debt increased to 9,003,786, and the company remains loss-making.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenues, net of derivatives, Q2-2026other | 4,326,789 | 103,681 | 293,293 |
| Non-cash derivatives, Q2-2026other | 2,158,927 | 5,413,842 | 1,560,373 |
| Revenues, as reported, Q2-2026GAAP | $6.49M | 5,517,523 | 40% |
| Lease operating expense, Q2-2026GAAP | 2,511,297 | 17,016 | (152,255) |
| Depletion & depreciation, Q2-2026GAAP | 2,136,209 | (345,233) | (1,678,018) |
| Other field related costs, Q2-2026GAAP | 735,639 | (289,960) | (411,785) |
| General and administrative, Q2-2026GAAP | 2,375,349 | 31,222 | (567,004) |
| Total expenses, Q2-2026GAAP | 7,758,494 | (586,955) | (2,809,062) |
| Gain on debt forgiveness, Q2-2026GAAP | - | – | 914,518 |
| Interest expense, Q2-2026GAAP | $176K | 84,763 | 1,474,038 |
| Other income (expense), Q2-2026GAAP | 179,542 | 1,031,524 | 788,095 |
| Total other, Q2-2026GAAP | 3,924 | 1,116,287 | 3,176,651 |
| Tax (expense) benefit, Q2-2026GAAP | 576,270 | (966,844) | 42,011 |
| Net income (loss), Q2-2026GAAP | $692K net loss | 5,080,011 | 77% improvement |
| Oil price, end of Q2-2026other | $69.50 | – | – |
| Cash and cash equivalents, June 2026GAAP | 691,672 | 561,900 | – |
| Accounts receivable, June 2026GAAP | 2,373,601 | (33,446) | – |
| Prepaid and other current, June 2026GAAP | 1,364,636 | 162,768 | – |
| Oil & gas properties, June 2026GAAP | 83,994,647 | (1,118,720) | – |
| Other non-current assets, June 2026GAAP | 1,891,348 | - | – |
| Total assets, June 2026GAAP | 90,315,904 | (427,498) | – |
| Accounts payable & accrued, June 2026GAAP | 22,981,671 | (1,210,443) | – |
| Debt (current & long-term), June 2026GAAP | 9,003,786 | (1,624,403) | – |
| Derivatives (various), June 2026GAAP | 4,223,137 | 2,438,232 | – |
| Deferred tax liability, June 2026GAAP | 2,711,415 | 575,863 | – |
| Other liabilities, June 2026GAAP | 2,020,686 | (32,865) | – |
| Total liabilities, June 2026GAAP | 40,940,695 | 146,384 | – |
| Equity attributable to EON, June 2026GAAP | 49,375,208 | 281,115 | – |
| Total equity and liabilities, June 2026GAAP | 90,315,904 | (427,498) | – |
remainder of the year outlook
- Revenueexpected to continue to increase in the third quarter
- NoteThe Company believes it can continue to deliver stable production from its two core properties.
- NoteBased on current projections, the Company expects to increase the cash balance further in the third quarter.
- NoteNo production from the SJU or from the horizontal development program in the GJF is hedged.
What drove it
- Revenue excluding non-cash derivative effects increased 7.3% year over year to $4.33 million from $4.03 million, and 2.5% from the first quarter of 2026.
- The company attributed the increase in revenues net of hedging derivatives over the first two quarters of 2026 to higher oil prices.
- The non-cash derivative revenue impact was 2,158,927 in Q2-2026, after (3,254,915) in Q1-2026; the company said the effect is a function of oil prices on the last day of a quarter.
- Interest expense declined following retirement of senior debt on September 9, 2025 and reductions in private loans and convertible notes.
- A net $180K of income from derivative valuations of financial instruments was recognized in Q2-2026, compared with net expense of $850K in Q1-2026 and net expense of $610K in Q2-2025.
- The first two San Andres horizontal wells, in which EON maintains a 35% working interest, commenced initial flowback operations and frac-load recovery.
Concerns
- The company reported a net loss of $692K in Q2-2026.
- Total expenses were 7,758,494 in Q2-2026, compared with 4,949,432 in Q2-2025.
- Debt (current & long-term) increased to 9,003,786 in June 2026 from 7,379,383 in March 2026, primarily due to a convertible note funded in April 2026.
- Accounts payable & accrued increased to 22,981,671 in June 2026 from 21,771,228 in March 2026.
- Reported revenue includes non-cash derivative effects that the company said can obscure underlying operational performance.
- The filings for the 2025 10-K and the 10-Q for the first and second quarters were late and not in compliance with NYSE American continued listing standards; the NYSE extended the cure deadline from October 15, 2026 to November 23, 2026.
- No production from the SJU or from the horizontal development program in the GJF is hedged.
What to watch
- Third-quarter revenue trend, which management expects to continue to increase based on current market conditions.
- Production data and technical evaluation from initial flowback operations at the first two San Andres horizontal wells.
- Cash balance progression in the third quarter.
- Progress in reducing baseline G&A costs, including insurance premiums, legal fees and accounting costs.
- NYSE American continued-listing compliance following the November 23, 2026 cure deadline.
Balance sheet and cash flow
- Cash and cash equivalents were 691,672 in June 2026, compared with 129,772 in March 2026.
- Debt (current & long-term) was 9,003,786 in June 2026, compared with 7,379,383 in March 2026.
- Total assets were 90,315,904 in June 2026, compared with 90,743,402 in March 2026.
- Total liabilities were 40,940,695 in June 2026, compared with 41,087,079 in March 2026.
- Equity attributable to EON was 49,375,208 in June 2026, compared with 49,656,323 in March 2026.
- Operating cash flow and free cash flow were not reported.
Analysis
EON reported $6.49 million of revenue in Q2-2026, up 40% year over year from $4.63 million. Revenue excluding non-cash derivative effects was $4.33 million, up 7.3% year over year from $4.03 million and 2.5% from the first quarter of 2026. The distinction is important because non-cash derivatives added 2,158,927 to reported revenue in Q2-2026 after reducing reported revenue by (3,254,915) in Q1-2026. Management described this derivative effect as a quarter-end oil-price valuation item rather than representative of operating activity.
The loss narrowed materially, with net loss reported at $692K versus $2.96 million a year earlier. The improvement included interest expense of $176K versus $1.65 million in Q2-2025, which the company attributed to retirement of senior debt on September 9, 2025 and reductions in private loans and convertible notes. Other income (expense) was 179,542 in Q2-2026, compared with (608,553) in the prior-year quarter, and management cited a net $180K of derivative-valuation income.
Cost pressure remained evident. Total expenses were 7,758,494 in Q2-2026 versus 4,949,432 in Q2-2025, with depletion & depreciation of 2,136,209, general and administrative expense of 2,375,349, and other field related costs of 735,639. Management said the higher ongoing DD&A rate reflects lower reserve estimates in the 2025 reserve report. It also said Q2-2025 G&A was lower because the management team temporarily deferred salaries and other compensation costs, while approximately $300K of transactional costs were recorded in each quarter being compared.
Liquidity improved sequentially, as cash and cash equivalents rose to 691,672 in June 2026 from 129,772 in March 2026. However, debt increased to 9,003,786 from 7,379,383, primarily due to a convertible note funded in April 2026, and accounts payable & accrued increased to 22,981,671 from 21,771,228. The company expects cash to increase further in the third quarter, but it provided no quantitative financial outlook.
Operationally, EON said it can continue to deliver stable production from its two core properties. The first two San Andres horizontal wells with EON's 35% working interest have begun initial flowback operations and frac-load recovery, with permanent production facilities installed and operational. Investors should focus on forthcoming production data from those wells, the reported revenue trend excluding non-cash derivatives, cash progression, and completion of the NYSE American compliance cure process by the stated November 23, 2026 deadline.
Not in the filing
stated, not guessed- Gross profit and gross margin were not reported.
- Operating income or loss and operating margin were not reported.
- GAAP and non-GAAP EPS were not reported.
- Operating cash flow and free cash flow were not reported.
- Capital expenditures were not reported.
- Share repurchases, dividends and other capital returns were not reported.
- Production volumes, realized prices and unit operating metrics were not reported.
- Segment revenue was not reported.
- Quantitative revenue, gross-margin, operating-expense and tax-rate guidance was not reported.
- Prior guidance was not provided.
- Named executive quotes were not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.