Shares of Target Hospitality Corp. (TH) plunged 5.05% in Thursday's intraday trading following the release of its third-quarter 2025 financial results. Despite beating revenue expectations, the company's report of a net loss and cautious outlook appeared to disappoint investors.
Target Hospitality reported Q3 revenue of $99.4 million, surpassing analyst estimates of $84.8 million and showing a 4.4% increase from the same period last year. However, the company recorded a net loss of $800,000, or $0.01 per share, compared to a net income of $20.1 million, or $0.20 per share, in the previous year. The adjusted loss per share of $0.01 was better than the expected loss of $0.04 but still marked a significant decline from last year's profitability.
The market's negative reaction may also be attributed to the company's full-year guidance. Target Hospitality projects total revenue between $310 million and $320 million, with adjusted EBITDA ranging from $50 million to $60 million. These figures suggest potential challenges in maintaining profitability amid changing market conditions. Additionally, the stock's year-to-date decline of 20.1% prior to this report indicates ongoing investor concerns about the company's performance and future prospects in the competitive hospitality sector.
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