Q2 FY2026
Filed Oct 9, 2026Toro Corp. Reports Net Income of $0.6 Million for the Three Months Ended June 30, 2026, and $1.1 Million for the Six Months Ended June 30, 2026
Second-quarter vessel revenue and EBITDA increased, supported by higher charter rates and Available Days, but net income from continuing operations declined and the company reported an operating loss. Post-period fleet expansion, new borrowings and the completed LPG-business spin-off materially changed the operating and capital structure.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total vessel revenues from continuing operations, three months ended June 30, 2026GAAP | $ 6,950,311 | – | 71.3% increase |
| Time charter revenues, three months ended June 30, 2026GAAP | 6,950,311 | – | – |
| Pool revenues, three months ended June 30, 2026GAAP | — | – | – |
| Voyage expenses, three months ended June 30, 2026GAAP | (709,645 ) | – | – |
| Vessel operating expenses, three months ended June 30, 2026GAAP | (2,384,322 ) | – | – |
| General and administrative expenses, three months ended June 30, 2026GAAP | (3,058,262 ) | – | – |
| Management fees - related party, three months ended June 30, 2026GAAP | (423,400 ) | – | – |
| Depreciation and amortization, three months ended June 30, 2026GAAP | (1,454,121 ) | – | – |
| Operating loss, three months ended June 30, 2026GAAP | $ (1,079,439 ) | – | – |
| Interest and finance costs, net, three months ended June 30, 2026GAAP | 264,614 | – | – |
| Other expenses, net, three months ended June 30, 2026GAAP | (2,263 ) | – | – |
| Dividend income from related party, three months ended June 30, 2026GAAP | 1,375,000 | – | – |
| Net income and comprehensive income from continuing operations, three months ended June 30, 2026GAAP | $ 557,912 | – | 60.9% decrease |
| Net (loss)/income and comprehensive (loss)/income from discontinued operations, three months ended June 30, 2026GAAP | $ (54 ) | – | – |
| Net income and comprehensive income, three months ended June 30, 2026GAAP | $ 557,858 | – | 60.9% decrease |
| Net (loss)/income attributable to common shareholders, three months ended June 30, 2026GAAP | $ (610,331 ) | – | – |
| (Loss)/Earnings per common share, basic, continuing operations, three months ended June 30, 2026GAAP | $ (0.129 ) | – | – |
| (Loss)/Earnings per common share, diluted, continuing operations, three months ended June 30, 2026GAAP | $ (0.129 ) | – | – |
| EBITDA from continuing operations, three months ended June 30, 2026non-GAAP | $ 1,747,419 | – | – |
| Daily TCE Rate, three months ended June 30, 2026non-GAAP | $ 17,145 | – | – |
| Fleet Utilization, three months ended June 30, 2026other | 100 % | – | – |
| Total vessel revenues from continuing operations, six months ended June 30, 2026GAAP | $ 12,913,332 | – | 34.6% increase |
| Time charter revenues, six months ended June 30, 2026GAAP | 12,913,332 | – | – |
| Pool revenues, six months ended June 30, 2026GAAP | — | – | – |
| Operating loss, six months ended June 30, 2026GAAP | $ (2,558,159 ) | – | – |
| Net income and comprehensive income from continuing operations, six months ended June 30, 2026GAAP | $ 1,087,321 | – | 62.7% decrease |
| Net income and comprehensive income, six months ended June 30, 2026GAAP | $ 1,084,842 | – | 64.0% decrease |
| (Loss)/Earnings per common share, basic, continuing operations, six months ended June 30, 2026GAAP | $ (0.160 ) | – | – |
| (Loss)/Earnings per common share, diluted, continuing operations, six months ended June 30, 2026GAAP | $ (0.160 ) | – | – |
| EBITDA from continuing operations, six months ended June 30, 2026non-GAAP | $ 3,062,730 | – | – |
| Daily TCE Rate, six months ended June 30, 2026non-GAAP | $ 16,342 | – | – |
| Fleet Utilization, six months ended June 30, 2026other | 100 % | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Time charter revenues, three months ended June 30, 2026Higher contractual hire rates for LPG carrier and MR tanker vessels and Available Days of 364 days, compared with 335 days in the same period in 2025. | 6,950,311 | – | – |
| Pool revenues, three months ended June 30, 2026The release reports no pool revenues for the period. | — | – | – |
| Time charter revenues, six months ended June 30, 2026The release reports continuing-operations time charter revenue. | 12,913,332 | – | – |
| Pool revenues, six months ended June 30, 2026The release reports no pool revenues for the period. | — | – | – |
Capital returns
- On April 22, 2026, the Company declared a special dividend of $0.90 per common share.
- The special dividend was paid on June 5, 2026 in the form of $3.8 million in cash and 5,707,246 shares of common stock.
- During the six months ended June 30, 2026, payment of special dividends was $13,066,019.
- On July 15, 2026, the Company paid to Castor a dividend amounting to $0.35 million on its 1.00% Series A Fixed Rate Cumulative Perpetual Convertible Preferred Shares.
What drove it
- Total vessel revenues increased mainly due to higher contractual hire rates for LPG carrier and MR tanker vessels and higher Available Days.
- The fleet earned an average Daily TCE Rate of $17,145 during the three months ended June 30, 2026, compared to $11,492 in the same period in 2025.
- All fleet assets were productively employed under time-charter contracts during the first half of 2026, according to management.
- The Company acquired the M/T Wonder Alasia for a purchase price of $45.9 million and the M/T Wonder Atria for a purchase price of $37.5 million in September 2026.
- The Company completed the spin-off of its LPG carrier business, comprising two LPG carriers and $45.0 million of cash, on October 8, 2026.
Concerns
- Net income and comprehensive income from continuing operations declined to $ 557,912 in the second quarter from $ 1,428,578 in the prior-year period.
- General and administrative expenses increased to $3.1 million from $1.6 million, associated mainly with stock-based compensation cost of $1.6 million.
- Vessel operating expenses increased to $2.4 million from $2.0 million, reflecting higher daily vessel operating expenses following the addition of MR tanker vessels.
- Voyage expenses increased to $0.7 million from $0.2 million, mainly due to higher European Union Allowances costs.
- The Company reported an operating loss of $ (1,079,439 ) in the second quarter and $ (2,558,159 ) for the six-month period.
- As of October 9, 2026, $48.8 million was outstanding under the Facility following post-period vessel acquisitions and borrowing activity.
What to watch
- Employment and redelivery timing for the M/T Wonder Altair, M/T Wonder Alasia and M/T Wonder Maia under their time-charter arrangements.
- Operating results and employment of the M/T Wonder Atria, which is participating in an unaffiliated tanker pool.
- The effect of the October 8, 2026 AI OKTO Spin-Off, including the removal of two LPG carriers and $45.0 million of cash.
- Utilization, Daily TCE Rate and daily vessel operating expenses as the fleet composition shifts toward MR tankers.
- The impact of $48.8 million outstanding under the Facility and the fully drawn $22.5 million New Facility.
Balance sheet and cash flow
- Cash and cash equivalents were $ 79,115,400 as of June 30, 2026, compared with $ 87,418,906 as of December 31, 2025.
- Restricted cash was $ 1,060,000 as of June 30, 2026, compared with — as of December 31, 2025.
- Cash, cash equivalents and restricted cash were $ 80,198,809 at the end of the six months ended June 30, 2026, compared with $ 114,670,341 at the end of the six months ended June 30, 2025.
- Net cash provided by operating activities from continuing operations was 7,263,945 for the six months ended June 30, 2026, compared with (6,487,669 ) for the six months ended June 30, 2025.
- Net cash used in investing activities from continuing operations was (430,382 ) for the six months ended June 30, 2026, compared with 94,921,704 for the six months ended June 30, 2025.
- Net cash used in financing activities from continuing operations was (14,456,578 ) for the six months ended June 30, 2026, compared with (11,056,450 ) for the six months ended June 30, 2025.
- Total assets were $ 321,752,341 as of June 30, 2026, compared with $ 331,347,296 as of December 31, 2025.
- Total liabilities were 4,188,939 as of June 30, 2026, compared with 41,939,008 as of December 31, 2025.
- As of October 9, 2026, $48.8 million was outstanding under the Facility.
- The New Facility was fully drawn down on October 1, 2026 for $22.5 million.
Analysis
Toro's second-quarter operating revenue improved sharply, with total vessel revenues from continuing operations of $ 6,950,311 versus $ 4,058,041 in the prior-year period. The company attributed the increase to higher contractual hire rates for its LPG carrier and MR tanker vessels and Available Days rising to 364 from 335. Daily TCE Rate increased to $ 17,145 from $ 11,492, while fleet utilization remained 100 % in both periods. The six-month revenue result was also higher at $ 12,913,332 versus $ 9,596,953.
Higher revenue did not translate into higher GAAP earnings. Toro recorded an operating loss of $ (1,079,439 ) in the quarter, though this improved from an operating loss of $ (1,160,506 ) a year earlier. Net income and comprehensive income from continuing operations declined to $ 557,912 from $ 1,428,578, while EBITDA increased to $ 1,747,419 from $ 1,273,433. The earnings outcome reflects increased voyage expenses, vessel operating expenses, general and administrative expenses, and depreciation and amortization, alongside lower interest and finance income on a net basis.
Cost mix bears close attention. General and administrative expenses were $3.1 million, compared with $1.6 million, with stock-based compensation cost of $1.6 million cited as the primary cause. Vessel operating expenses rose to $2.4 million from $2.0 million as daily vessel operating expenses increased to $6,550 from $5,243 following the addition of MR tanker vessels, which incur higher daily operating expenses than LPG carriers. Voyage expenses rose to $0.7 million from $0.2 million, driven in part by a $0.3 million increase in port and other expenses associated with European Union Allowances.
Liquidity declined through the first half, as cash, cash equivalents and restricted cash fell to $ 80,198,809 from $ 87,422,426 at the beginning of the period. Continuing-operations operating cash flow was positive at 7,263,945, but financing outflows of (14,456,578 ) included $13,066,019 of special-dividend payments. Post quarter end, Toro purchased two MR tanker vessels for $45.9 million and $37.5 million, drew on credit facilities, and completed the October 8, 2026 spin-off of its LPG carrier business, including two LPG carriers and $45.0 million of cash. These actions shift the reported company toward an MR tanker fleet and make the subsequent debt position, charter execution and post-spin liquidity central operating considerations.
Management, verbatim
In the first half of 2026, we achieved strong vessel utilization across the fleet, with all our assets productively employed under time-charter contracts. Post quarter, we acquired two MR tanker vessels, further expanding our fleet and reinforcing our commitment to sustainable growth. In addition to that, we completed the spin-off of our LPG carrier business into AI OKTO CORP., an independent Nasdaq-listed entity under the ticker “AIOK”.
Mr. Petros Panagiotidis, Chief Executive Officer of the Company
Not in the filing
stated, not guessed- Forward financial guidance was not provided.
- Prior outlook was not provided.
- Gross margin was not reported.
- Tax rate was not reported.
- Free cash flow was not reported.
- Share repurchases were not reported.
- Quarterly operating cash flow was not reported.
- Quarterly investing cash flow was not reported.
- Quarterly financing cash flow was not reported.
- Prior-quarter comparisons were not reported for the presented metrics.
- Revenue and earnings information by operating segment was not reported beyond time charter revenues and pool revenues.
- A June 30, 2026 long-term debt balance was not reported in the balance sheet.
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.