Third Quarter 2026
Filed Nov 4, 2026LandBridge Announces Third Quarter 2026 Results Delivers record third quarter revenue of $70.9 million, representing growth of 39% year-over-year and 6% quarter-over-quarter
Revenue, net income, Adjusted EBITDA, operating cash flow and Free Cash Flow each increased year-over-year and sequentially, while the Company raised the midpoint of full-year Adjusted EBITDA guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30, 2026GAAP | $70.9M | 6% | 39% |
| Total revenues, nine months ended September 30, 2026GAAP | $188.7M | – | – |
| Operating income, three months ended September 30, 2026GAAP | $48.25M | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $121.6M | – | – |
| Net income, three months ended September 30, 2026GAAP | $34M | 10% | 68% |
| Net income, nine months ended September 30, 2026GAAP | $82.97M | – | – |
| Net income attributable to LandBridge Company LLC, three months ended September 30, 2026GAAP | $12.96M | – | – |
| Net income attributable to LandBridge Company LLC, nine months ended September 30, 2026GAAP | $33.96M | – | – |
| Net income margin, three months ended September 30, 2026GAAP | 48% | – | – |
| Basic net income per share of Class A shares, three months ended September 30, 2026GAAP | $ 0.44 | – | – |
| Diluted net income per share of Class A shares, three months ended September 30, 2026GAAP | $ 0.44 | – | – |
| Basic net income per share of Class A shares, nine months ended September 30, 2026GAAP | $ 1.18 | – | – |
| Diluted net income per share of Class A shares, nine months ended September 30, 2026GAAP | $ 1.07 | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $63.7M | 7% | 42% |
| Adjusted EBITDA Margin, three months ended September 30, 2026non-GAAP | 90% | – | – |
| Net cash provided by operating activities, three months ended September 30, 2026GAAP | $49.6M | 20% | 42% |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $132.1M | – | – |
| Operating cash flow margin, three months ended September 30, 2026other | 70% | – | – |
| Free Cash Flow, three months ended September 30, 2026non-GAAP | $49M | 22% | 45% |
| Free Cash Flow Margin, three months ended September 30, 2026non-GAAP | 69% | – | – |
| Capital expenditures, three months ended September 30, 2026GAAP | $600K | – | – |
| Capital expenditures, nine months ended September 30, 2026GAAP | $1.89M | – | – |
| Net cash used in investing activities, three months ended September 30, 2026GAAP | $267.4M | – | – |
| Net cash used in investing activities, nine months ended September 30, 2026GAAP | $280.8M | – | – |
| Net cash provided by financing activities, three months ended September 30, 2026GAAP | $74.8M | – | – |
| Net cash provided by financing activities, nine months ended September 30, 2026GAAP | $134.8M | – | – |
| Total liquidity as of September 30, 2026GAAP | $126.8M | – | – |
| Cash and cash equivalents as of September 30, 2026GAAP | $16.8M | – | – |
| Borrowings outstanding as of September 30, 2026GAAP | $765M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Surface Use Royalties and RevenuePrimarily driven by an increase in produced water handling volumes across acreage, including increased volumes from the ramping Speedway Phase I pipeline, as well as an increase in pipeline easement revenue. | $54.3M | increased $2.1 million sequentially | – |
| Resources Sales and RoyaltiesPrimarily driven by increases in water and caliche sales as well as sand royalties on acreage. | $12.5M | increased $1.4 million sequentially | – |
| Oil and Gas RoyaltiesPrimarily driven by net royalty production increasing from 773 boe/d in the second quarter of 2026 to 917 boe/d in the third quarter of 2026. | $4.1M | increased $0.5 million sequentially | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
fiscal year 2026 outlook
- NoteAdjusted EBITDA expected to be between $220 million and $235 million.
Capital returns
- The Board declared a dividend on Class A common stock of $0.12 per share, payable on December 10, 2026 to shareholders of record as of November 25, 2026.
- Dividends, dividend equivalents and distributions paid for the nine months ended September 30, 2026 were $ 50,731 (in thousands), compared with $ 52,773 (in thousands) for the nine months ended September 30, 2025.
- A corresponding required cash distribution to OpCo unitholders was declared.
What drove it
- Revenue increased across all key revenue streams.
- The Company acquired approximately 25,000 acres during the third quarter of 2026 across its existing footprint.
- PowerBridge exercised its option to lease an initial 825-acre portion of approximately 3,400 total acreage under option for the Alpha Digital Campus.
- PowerBridge commenced construction on Alpha Phase I in September 2026. The project is expected to include more than 300 megawatts of the planned 2 gigawatt powered data center campus project, with first power delivery anticipated in the fourth quarter of 2027.
- Q3 2026 net income and net income margin include a non-cash expense of $9.1 million attributable to share-based compensation, of which $6.5 million is attributable to management units issued by LandBridge Holdings LLC.
Concerns
- Cash and cash equivalents declined to $16.8 million as of September 30, 2026 from $39.8 million as of June 30, 2026.
- Borrowings outstanding increased to $765.0 million as of September 30, 2026 from $545.2 million as of June 30, 2026.
- The Company states that it relies on a limited number of customers and on a particular region for substantially all of its revenues.
- The expected contribution from recent acquisitions begins in the fourth quarter.
What to watch
- Expected contribution from recent acquisitions beginning in the fourth quarter.
- Commercialization of undeveloped pore space on acquired acreage.
- Alpha Phase I construction progress and the anticipated first power delivery date in the fourth quarter of 2027.
- Execution against fiscal year 2026 Adjusted EBITDA guidance of $220 million to $235 million.
- Borrowings, liquidity and acquisition-related cash use following the October 1, 2026 Additional Notes issuance.
Balance sheet and cash flow
- Total liquidity was $126.8 million as of September 30, 2026, including approximately $110.0 million of available borrowing capacity under the revolving credit facility.
- Total cash and cash equivalents were $16.8 million as of September 30, 2026, compared with $39.8 million as of June 30, 2026.
- The Company had $765.0 million of borrowings outstanding as of September 30, 2026, compared with $545.2 million as of June 30, 2026.
- During the third quarter, net cash used in investing activities was $267.4 million, including approximately $266.8 million of acquisition expenditures.
- On October 1, 2026, OpCo issued an additional $125.0 million aggregate principal amount of 6.25% fixed-rate senior unsecured notes due 2030, bringing total aggregate principal amount to $625.0 million.
Analysis
LandBridge reported record third-quarter revenue of $70.9 million, up 39% year-over-year and 6% sequentially. Consolidated net income was $34.0 million, up 68% year-over-year and 10% quarter-over-quarter, while operating income was $ 48,247 (in thousands). The Company reported a 48% net income margin, compared with 40% in the third quarter of 2025 and 46% in the second quarter of 2026.
All three disclosed revenue streams expanded sequentially. Surface Use Royalties and Revenue generated $54.3 million, with the $2.1 million sequential increase driven by produced-water handling volumes, the Speedway Phase I pipeline ramp and pipeline easement revenue. Resources Sales and Royalties generated $12.5 million, aided by water and caliche sales and sand royalties. Oil and Gas Royalties generated $4.1 million as net royalty production rose from 773 boe/d to 917 boe/d.
The cash-flow profile remained strong. Operating cash flow was $49.6 million and Free Cash Flow was $49.0 million, with margins of 70% and 69%, respectively. Adjusted EBITDA was $63.7 million, up 42% year-over-year and 7% sequentially, and the Adjusted EBITDA Margin reached 90%. The quarter's investing cash use was dominated by approximately $266.8 million of acquisition expenditures tied to approximately 25,000 acres acquired across the existing footprint.
Balance-sheet activity reflected the acquisition program and financing actions. Cash and cash equivalents were $16.8 million at September 30, 2026, while borrowings outstanding were $765.0 million. Subsequent to quarter end, OpCo issued an additional $125.0 million aggregate principal amount of 6.25% fixed-rate senior unsecured notes due 2030. The Board also declared a $0.12 per-share dividend.
Management raised the midpoint of its fiscal-year 2026 Adjusted EBITDA outlook to $227.5 million, within a new range of $220 million to $235 million, citing expected contributions from recent acquisitions. PowerBridge's long-term ground lease for Alpha Phase I and the start of construction add a disclosed digital-infrastructure development milestone, with first power delivery anticipated in the fourth quarter of 2027.
Management, verbatim
LandBridge delivered another strong quarter, with revenue growing 39% year-over-year, and we are increasing our full year 2026 guidance based on the continued organic and M&A momentum across our acreage.
Jason Long, Chief Executive Officer of LandBridge
Our third quarter results underscore the scalability of our high-margin, asset-light business model.
Scott McNeely, Chief Financial Officer of LandBridge
Not in the filing
stated, not guessed- Prior fiscal-year 2026 guidance was not provided, so comparison of actual results with prior guidance is unavailable.
- Revenue guidance was not provided.
- Gross margin was not reported.
- Forward operating-expense guidance was not provided.
- Forward tax-rate guidance was not provided.
- GAAP reconciliation for forward-looking Adjusted EBITDA guidance was not available.
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.