Third quarter 2026
Filed Oct 21, 2026Revenue increased 26% year-over-year to $1.2 billion, while Liberty reported a net loss of $39 million and Adjusted EBITDA of $142 million.
Revenue and Adjusted EBITDA increased year-over-year, supported by operational execution and modest price increases, but GAAP results turned to a net loss because of a loss on investments, net, and Adjusted EBITDA declined sequentially.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30, 2026GAAP | $1.20B | 1% | 26% |
| Costs of services, three months ended September 30, 2026GAAP | 995,049 | – | – |
| General and administrative, three months ended September 30, 2026GAAP | 69,479 | – | – |
| Transaction and other costs, three months ended September 30, 2026GAAP | (215) | – | – |
| Depreciation, depletion, and amortization, three months ended September 30, 2026GAAP | 113,704 | – | – |
| (Gain) loss on disposal of assets, net, three months ended September 30, 2026GAAP | (1,165) | – | – |
| Total operating costs and expenses, three months ended September 30, 2026GAAP | 1,176,852 | – | – |
| Operating income (loss), three months ended September 30, 2026GAAP | 19,304 | – | – |
| Loss (gain) on investments, net, three months ended September 30, 2026GAAP | 62,892 | – | – |
| Interest expense, net, three months ended September 30, 2026GAAP | 5,898 | – | – |
| Net (loss) income before income taxes, three months ended September 30, 2026GAAP | (49,486) | – | – |
| Income tax (benefit) expense, three months ended September 30, 2026GAAP | (10,423) | – | – |
| Net (loss) income, three months ended September 30, 2026GAAP | −$39.06M | – | – |
| Net (loss) income per common share, basic, three months ended September 30, 2026GAAP | $ (0.24) | – | – |
| Net (loss) income per common share, diluted, three months ended September 30, 2026GAAP | $ (0.24) | – | – |
| Weighted average common shares outstanding, basic, three months ended September 30, 2026GAAP | 163,191 | – | – |
| Weighted average common shares outstanding, diluted, three months ended September 30, 2026GAAP | 163,191 | – | – |
| Capital expenditures, three months ended September 30, 2026other | $621.9M | – | – |
| EBITDA, three months ended September 30, 2026non-GAAP | $70.12M | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $141.6M | (6%) | 11% |
| Adjusted Net Income, three months ended September 30, 2026non-GAAP | $9.76M | – | – |
| Adjusted Net Income per Diluted Share, three months ended September 30, 2026non-GAAP | $ 0.06 | – | – |
| Revenue, nine months ended September 30, 2026GAAP | $3.41B | – | – |
| Costs of services, nine months ended September 30, 2026GAAP | 2,819,121 | – | – |
| General and administrative, nine months ended September 30, 2026GAAP | 196,191 | – | – |
| Transaction and other costs, nine months ended September 30, 2026GAAP | 7,476 | – | – |
| Depreciation, depletion, and amortization, nine months ended September 30, 2026GAAP | 341,976 | – | – |
| (Gain) loss on disposal of assets, net, nine months ended September 30, 2026GAAP | (13,126) | – | – |
| Total operating costs and expenses, nine months ended September 30, 2026GAAP | 3,351,638 | – | – |
| Operating income, nine months ended September 30, 2026GAAP | 54,298 | – | – |
| Loss (gain) on investments, net, nine months ended September 30, 2026GAAP | 2,663 | – | – |
| Interest expense, net, nine months ended September 30, 2026GAAP | 16,983 | – | – |
| Net income before income taxes, nine months ended September 30, 2026GAAP | 34,652 | – | – |
| Income tax expense, nine months ended September 30, 2026GAAP | 8,036 | – | – |
| Net income, nine months ended September 30, 2026GAAP | $26.62M | – | – |
| Net income per common share, basic, nine months ended September 30, 2026GAAP | $ 0.16 | – | – |
| Net income per common share, diluted, nine months ended September 30, 2026GAAP | $ 0.16 | – | – |
| Capital expenditures, nine months ended September 30, 2026other | $976.8M | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $418.6M | – | – |
| Adjusted Net Income, nine months ended September 30, 2026non-GAAP | $34.40M | – | – |
| Adjusted Net Income per Diluted Share, nine months ended September 30, 2026non-GAAP | $ 0.21 | – | – |
| Adjusted Pre-Tax Return on Capital Employed, twelve months ended September 30, 2026non-GAAP | 2 % | – | – |
| Adjusted Pre-tax net income, twelve months ended September 30, 2026non-GAAP | $55.00M | – | – |
| Average Capital Employed, twelve months ended September 30, 2026non-GAAP | $2.77B | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fourth quarter of 2026 and longer-term milestones outlook
- NoteFourth quarter weather and holiday seasonality are expected to be partially offset by continued strength in demand, including activity deferred from the third quarter.
- NoteTargeted execution of the first energy service agreement contract for approximately 500 megawatts by December 2026.
- NotePhased energization schedule from Q4 2027 through Q1 2029.
- NoteStrategic development agreement for 1.2 GW of integrated power services at data center campuses.
Capital returns
- During the quarter ended September 30, 2026, the Company paid a quarterly cash dividend of $0.09 per share of Class A common stock, or approximately $15 million in aggregate to shareholders.
- On October 20, 2026, the Board declared a cash dividend of $0.10 per share of Class A common stock, to be paid on December 18, 2026 to holders of record as of December 4, 2026.
- The quarterly cash dividend increased 11% to $0.10 per share beginning fourth quarter of 2026.
What drove it
- Third quarter revenue of $1.2 billion and Adjusted EBITDA of $142 million reflected strong operational execution and modest price increases, partially offset by drilling-related delays and cost inflation headwinds.
- Record natural gas substitution of over 60% of total fuel consumed by Liberty’s fleets provided annualized fuel savings of over $1 billion for customers.
- Liberty executed a strategic development agreement with a leading frontier AI lab and a dedicated infrastructure platform for 1.2 GW of integrated power services at data center campuses.
- The company collaborated with the U.S. Department of Energy’s National Laboratory of the Rockies at its advanced grid simulation testbed and validated Liberty’s power technologies under real-world grid conditions.
- Management stated that modestly higher completions activity absorbed much of the industry’s available capacity, while fleet attrition, equipment cannibalization and industry underinvestment constrained supply.
Concerns
- Net loss was $39 million, compared with net income of $43 million in both the third quarter of 2025 and the second quarter of 2026.
- Loss on investments, net was 62,892 in the third quarter of 2026, compared with a gain on investments, net of (68,353) in the third quarter of 2025 and (42,913) in the second quarter of 2026.
- Adjusted EBITDA decreased 6% from $151 million in the second quarter of 2026 to $142 million in the third quarter of 2026.
- Management cited drilling-related delays and cost inflation headwinds.
- Capital expenditures were $ 621,933 in the third quarter of 2026, compared with $ 221,484 in the second quarter of 2026 and $ 113,034 in the third quarter of 2025.
- Total debt was $ 1,290,572 as of September 30, 2026, compared with $ 253,000 as of September 30, 2025.
What to watch
- Execution of the first energy service agreement contract for approximately 500 megawatts by December 2026.
- Progress against the phased energization schedule from Q4 2027 through Q1 2029 for the 1.2 GW integrated power-services development agreement.
- Whether activity deferred from the third quarter and continued demand strength offset fourth quarter weather and holiday seasonality.
- Service-pricing improvement as completions activity, fleet availability and next-generation equipment demand evolve.
- The pace of capital expenditures and the use of liquidity as Liberty develops its power platform.
Balance sheet and cash flow
- Cash and cash equivalents were $ 118,973 as of September 30, 2026, compared with $ 27,554 as of December 31, 2025.
- Accounts receivable and unbilled revenue were 756,765 as of September 30, 2026, compared with 605,370 as of December 31, 2025.
- Inventories were 181,071 as of September 30, 2026, compared with 188,125 as of December 31, 2025.
- Total current assets were 1,118,257 as of September 30, 2026, compared with 877,970 as of December 31, 2025.
- Property and equipment, net was 2,775,804 as of September 30, 2026, compared with 2,054,185 as of December 31, 2025.
- Total assets were $ 4,489,861 as of September 30, 2026, compared with $ 3,558,305 as of December 31, 2025.
- Current portion of long-term debt was 11,906 as of September 30, 2026, compared with 5,097 as of December 31, 2025.
- Long-term debt, net of current portion and deferred financing costs was 1,278,666 as of September 30, 2026, compared with 241,510 as of December 31, 2025.
- Total liabilities were 2,569,163 as of September 30, 2026, compared with 1,479,416 as of December 31, 2025.
- Total stockholders’ equity was 1,920,698 as of September 30, 2026, compared with 2,078,889 as of December 31, 2025.
- Total debt was $ 1,290,572 as of September 30, 2026, compared with $ 253,000 as of September 30, 2025.
- The Company had no balance drawn on the secured asset-based revolving credit facility, except for $30.2 million in letters of credit outstanding, as of September 30, 2026.
- Total liquidity, including availability under the credit facility, was approximately $669 million as of September 30, 2026.
- Net capital expenditures were $ 621,933 for the three months ended September 30, 2026 and $ 976,843 for the nine months ended September 30, 2026. Net capital expenditures exclude acquisitions and are net of proceeds from sales of assets.
Analysis
Liberty reported third-quarter revenue of $1.2 billion, up 26% from $0.9 billion in the third quarter of 2025 and up 1% from $1.2 billion in the second quarter of 2026. The company attributed the quarter’s revenue and Adjusted EBITDA performance to strong operational execution and modest price increases. Management also described a more constructive completions backdrop, citing strong customer engagement, strengthening market fundamentals, modestly higher completions activity and tight available fleet capacity.
Profitability was mixed. Operating income was 19,304, compared with an operating loss of (2,419) in the prior-year quarter and operating income of 12,716 in the second quarter. However, net loss was $ (39,063), versus net income of $ 43,055 a year earlier and $ 43,121 sequentially. The reported loss on investments, net of 62,892 compared with gains of (68,353) and (42,913) in the prior-year and prior-quarter periods, respectively. Adjusted Net Income was $ 9,756, compared with $ (9,542) a year earlier and $ 14,349 in the second quarter.
Adjusted EBITDA was $ 141,630, an 11% year-over-year increase from $ 127,679, but down 6% from $ 151,145 in the second quarter. Management identified drilling-related delays and cost inflation headwinds as partial offsets to price improvement. Capital expenditures were $ 621,933 during the quarter, versus $ 221,484 in the second quarter and $ 113,034 a year ago. The company highlighted record natural gas substitution of over 60% of fleet fuel consumption and annualized fuel savings of over $1 billion for customers as operational differentiators.
The balance sheet reflects substantially higher debt associated primarily with senior convertible notes issued during the first quarter of 2026. Cash and cash equivalents were $ 118,973, total debt was $ 1,290,572, and total liquidity was approximately $669 million at September 30, 2026. Liberty had no balance drawn on its secured asset-based revolving credit facility, except for $30.2 million in letters of credit outstanding. The company paid a $0.09 quarterly dividend, or approximately $15 million in aggregate, and subsequently declared a $0.10 dividend payable December 18, 2026.
Liberty provided no numerical financial guidance for the fourth quarter. Management expects weather and holiday seasonality to be partially offset by demand strength and activity deferred from the third quarter. The major strategic milestone is a development agreement for 1.2 GW of integrated power services at data center campuses, including targeted execution of the first energy service agreement contract for approximately 500 megawatts by December 2026 and phased energization from Q4 2027 through Q1 2029.
Management, verbatim
Liberty's completions trajectory has improved meaningfully from early year cyclical lows. Strong customer engagement and strengthening market fundamentals provide a more constructive outlook as we close out the year. Third quarter revenue of $1.2 billion and Adjusted EBITDA of $142 million reflected strong operational execution and modest price increases, partially offset by drilling-related delays and cost inflation headwinds.
Ron Gusek, Chief Executive Officer
During the quarter, we delivered significantly lower fuel costs for our customers. Record natural gas substitution of over 60% of the total fuel consumed by our fleets provided annualized fuel savings of over $1 billion for our customers. This achievement reflects continued investment in natural gas fueled equipment and a concerted focus on the digital intelligence layer that drives meaningful operational optimization of equipment and widens the performance gap amongst industry frac fleets.
Ron Gusek, Chief Executive Officer
Looking forward, we expect fourth quarter weather and holiday seasonality to be partially offset by continued strength in demand, including activity deferred from the third quarter. We’re proud of the Liberty team’s continued focus on ingenuity, innovation, and execution. We are well positioned today to serve the demand for energy services in the years ahead.
Ron Gusek, Chief Executive Officer
Not in the filing
stated, not guessed- Gross margin was not reported.
- Segment revenue and segment-level profitability were not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- A quantitative fourth-quarter revenue, gross margin, operating-expense or tax-rate outlook was not reported.
- Previous-release outlook was not provided, so a comparison against prior guidance cannot be made.
- Share repurchases were not reported.
- A GAAP tax rate was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.