AI Takeaway
BG reported Q1 FY2026 revenue surging 87.8% YoY to $21.9B, but net income fell 66.2% to $68M as gross margins compressed sharply and operating cash flow deteriorated to -$541M.
Revenue
$21.86B
++87.76% YoY
EPS (Basic)
$0.35
-76.67% YoY
Gross Margin
3.5%
-1.62% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue jumped 87.8% to $21.86B in Q1 FY2026 from $11.64B in the prior-year period, suggesting a significant expansion in business volume, likely driven by higher commodity prices or increased trading activity. However, cost of revenue grew even faster at 91.0%, reaching $21.10B, which outpaced revenue growth and compressed margins.
Source: Source: 10-Q Income Statement
Gross margin declined sharply from 5.1% to 3.5% YoY, with gross profit growing only 28.3% to $766M despite revenue nearly doubling. This indicates that the cost of goods sold is rising faster than selling prices, squeezing profitability at the top of the income statement.
Source: Source: 10-Q Income Statement, Key Ratios
Net income fell 66.2% to $68M from $201M in the prior-year quarter, and diluted EPS dropped 76.4% to $0.35 from $1.48. The combination of thin gross margins and a 39.7% increase in SG&A expenses ($531M vs. $380M) significantly eroded bottom-line profitability.
Source: Source: 10-Q Income Statement
2 more insights available
Upgrade to unlockGross margin fell from 5.1% to 3.5% YoY as cost of revenue grew faster than revenue. With net margin at just 0.31%, any further cost increases or pricing pressure could push the company into a net loss position. The thin margin profile leaves very little buffer against adverse market conditions.
Source: Source: 10-Q Income Statement, Key Ratios
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.83 versus the $0.90 analyst consensus — a +103.4% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $21.86B | $11.64B | +87.76% |
Cost of Revenue | $21.09B | $11.05B | +90.97% |
Gross Profit | $766M | $597M | +28.31% |
Net Income | $68M | $201M | -66.17% |
EPS (Basic) | $0.35 | $1.50 | -76.67% |
EPS (Diluted) | $0.35 | $1.48 | -76.35% |
SG&A Expense | $531M | $380M | +39.74% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $47.58B | $26.66B | +78.45% |
Current Assets | $27.09B | $17.37B | +55.95% |
Current Liabilities | $16.94B | $8.54B | +98.48% |
Stockholders' Equity | $16.05B | $10.58B | +51.68% |
Cash & Equivalents | $839M | $3.25B | -74.14% |
Long-Term Debt | $11.31B | $5.39B | +109.83% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $-541M | $-285M | -89.82% |
Investing Cash Flow | $-182M | $-280M | +35.00% |
Financing Cash Flow | $406M | $490M | -17.14% |
D&A | $238M | $120M | +98.33% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 3.5% | 5.1% | -1.62% |
Net Margin | 0.3% | — | — |
ROE | 0.4% | — | — |
ROA | 0.1% | — | — |
Current Ratio | $1.599 | — | — |
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BG's revenue grew 87.8% YoY to $21.86B in Q1 FY2026, up from $11.64B in the prior-year period. However, this top-line growth did not translate to profit improvement, as net income actually fell 66.2% to $68M due to rising costs and margin compression.
Despite revenue nearly doubling, BG's net income fell 66.2% to $68M because cost of revenue grew even faster at 91.0%, compressing gross margin from 5.1% to 3.5%. Additionally, SG&A expenses rose 39.7% to $531M, further eroding the bottom line.
BG's financial health shows some stress: cash fell 74.1% to $839M, operating cash flow was -$541M, and long-term debt more than doubled to $11.3B. While the current ratio of 1.60 provides a modest liquidity buffer, the combination of negative cash flow and rising debt warrants close attention.
Based on the financial data, key risks include severe gross margin compression (down to 3.5%), rapidly rising debt (long-term debt up 109.8% to $11.3B), and deteriorating operating cash flow (-$541M). These factors suggest BG faces significant profitability and liquidity challenges heading into the rest of FY2026.
The key takeaway is that BG's business scale expanded dramatically with revenue up 87.8% to $21.86B, but profitability collapsed with net income down 66.2% to $68M and EPS falling to $0.35 from $1.48. The company is growing revenues rapidly but struggling to convert that growth into profit, with thin margins and negative operating cash flow being the central concerns.