AI Takeaway
LNG reported a massive net loss of $3.50B in Q1 FY2026, a dramatic reversal from a $353M profit a year ago, driven by a steep operating loss of $3.49B, even as revenue grew 7.8% to $5.87B.
Revenue
$5.87B
++7.79% YoY
EPS (Basic)
$-16.65
-1160.51% YoY
Operating Income
$-3.49B
-462.96% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue increased 7.8% year-over-year to $5.87B in Q1 FY2026, suggesting continued demand for LNG's core business. However, this top-line growth was entirely overshadowed by a catastrophic swing in operating income, which collapsed from a gain of $961M to a loss of $3.49B, a decline of 463%.
Source: Source: 10-Q Income Statement
Operating margin plunged from +17.7% to -59.4% year-over-year, and net margin fell to -59.7%, indicating severe cost pressures or large non-cash charges (such as impairments or write-downs) that dwarfed revenue gains. SG&A also rose 17.2% to $136M, adding incremental pressure.
Source: Source: 10-Q Income Statement & Key Ratios
Current liabilities surged 82.8% to $7.27B while current assets fell 12.0% to $4.16B, resulting in a current ratio of only 0.57, well below the 1.0 threshold, signaling potential near-term liquidity pressure. Cash and equivalents dropped 48.0% to $1.31B.
Source: Source: 10-Q Balance Sheet
2 more insights available
Upgrade to unlockWith current liabilities of $7.27B far exceeding current assets of $4.16B, LNG's current ratio stands at just 0.57. This means the company may struggle to meet short-term obligations without additional financing or asset sales. The 82.8% surge in current liabilities in a single year amplifies this concern significantly.
Source: Source: 10-Q Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $-16.75 versus the $4.23 analyst consensus — a -495.9% miss for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $5.87B | $5.44B | +7.79% |
Operating Income | $-3.49B | $961M | -462.96% |
Net Income | $-3.5B | $353M | -1092.07% |
EPS (Basic) | $-16.65 | $1.57 | -1160.51% |
EPS (Diluted) | $-16.65 | $1.57 | -1160.51% |
SG&A Expense | $136M | $116M | +17.24% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $46.84B | $43.55B | +7.58% |
Current Assets | $4.16B | $4.73B | -12.02% |
Total Liabilities | $38.17B | $33.45B | +14.12% |
Current Liabilities | $7.27B | $3.98B | +82.76% |
Stockholders' Equity | $3.75B | $5.58B | -32.72% |
Cash & Equivalents | $1.3B | $2.51B | -48.03% |
Long-Term Debt | $22.14B | $22.51B | -1.63% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.08B | $1.23B | -12.05% |
Investing Cash Flow | $-742M | $-549M | -35.15% |
Financing Cash Flow | $-149M | $-997M | +85.06% |
Dividends Paid | $117M | $112M | +4.46% |
Share Buybacks | $537M | $363M | +47.93% |
D&A | $373M | $312M | +19.55% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | -59.4% | 17.7% | -77.09% |
Net Margin | -59.7% | — | — |
ROE | -93.3% | — | — |
ROA | -7.5% | — | — |
Current Ratio | $0.572 | — | — |
Debt to Equity | $10.166 | — | — |
LNG reported a net loss of $3.50B in Q1 FY2026, compared to a profit of $353M a year ago, despite revenue growing 7.8% to $5.87B. The loss was driven by a massive swing in operating income to -$3.49B, which likely reflects large impairment charges or one-time write-downs rather than a deterioration in core business volumes.
The key takeaways are: revenue grew 7.8% to $5.87B, but a catastrophic operating loss of $3.49B resulted in a net loss of $3.50B and EPS of -$16.65. Additionally, the current ratio fell to 0.57 and cash dropped 48% to $1.31B, raising near-term liquidity concerns.
LNG faces notable financial stress: its current ratio of 0.57 means current liabilities of $7.27B significantly exceed current assets of $4.16B, and its debt-to-equity ratio is approximately 10.2x. However, operating cash flow remained positive at $1.08B, suggesting the core business still generates cash, which provides some buffer.
Yes, despite the large net loss, LNG paid $117M in dividends (up 4.5% year-over-year) and repurchased $537M in shares (up 47.9% year-over-year). These capital returns were funded by positive operating cash flow of $1.08B, though sustaining them amid a weakening cash position warrants scrutiny.
LNG's revenue grew 7.8% year-over-year to $5.87B in Q1 FY2026, up from $5.44B in the prior year period. However, this top-line growth was insufficient to offset the large operating losses, which resulted in an operating margin of -59.4% versus +17.7% a year ago.