Target Hospitality Corp 10-Q for FY2026 Q3

Target Hospitality Corp. (TH)

10-Q 2026-11-09 For: 2026-09-30

Added on November 09, 2026

About this 10-Q

Target Hospitality Corp filed this 10-Q on November 9, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).

Headline figures

Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $129.06M; up 29.9% from $99.36M a year earlier
Net loss: $9.21M; compared with a net loss of $795K a year earlier
Diluted EPS: -$0.09; compared with -$0.01 a year earlier

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Delaware			98-1378631
(State or other jurisdiction of			(I.R.S. Employer
incorporation or organization)			Identification No.)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.0001 per share	TH	NASDAQ Capital Market


Large accelerated filer ☐	Accelerated filer ☒
Non-accelerated filer ☐	Smaller reporting company ☐
	Emerging growth company ☐

PART I — FINANCIAL INFORMATION	5
Item 1. Financial Statements	5
Consolidated Balance Sheets	5
Unaudited Consolidated Statements of Comprehensive Loss	6
Unaudited Consolidated Statements of Changes in Stockholders’ Equity	7
Unaudited Consolidated Statements of Cash Flows	8
Notes to Unaudited Consolidated Financial Statements	9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	33
Item 3. Quantitative and Qualitative Disclosures About Market Risk	56
Item 4. Controls and Procedures	56
PART II — OTHER INFORMATION	56
Item 1. Legal Proceedings	56
Item 1A. Risk Factors	57
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	59
Item 3. Defaults upon Senior Securities	60
Item 4. Mine Safety Disclosures	60
Item 5. Other Information	60
Item 6. Exhibits	61
SIGNATURES	62

Consolidated Financial Statements

Consolidated Balance Sheets	5
Unaudited Consolidated Statements of Comprehensive Loss	6
Unaudited Consolidated Statements of Changes in Stockholders’ Equity	7
Unaudited Consolidated Statements of Cash Flows	8
Notes to Unaudited Consolidated Financial Statements	9


		September 30,			December 31,
		2026			2025
Assets
Current assets:
Cash and cash equivalents		$	3,367		$	8,348
Accounts receivable, less allowance for credit losses of $413 and $232, respectively			85,274			56,200
Prepaid expenses and other assets			9,395			8,790
Total current assets			98,036			73,338

Specialty rental assets, net			630,952			332,406
Other property, plant and equipment, net			48,142			35,754
Operating lease right-of-use assets, net			5,105			6,544
Goodwill			41,038			41,038
Other intangible assets, net			29,502			39,332
Deferred financing costs revolver, net			12,823			1,793
Other non-current assets			54,380			—
Total assets		$	919,978		$	530,205

Liabilities
Current liabilities:
Accounts payable		$	120,092		$	44,393
Accrued liabilities			30,342			22,475
Deferred revenue and customer deposits			60,277			9,282
Current portion of operating lease obligations			5,091			5,807
Current portion of finance lease and other financing obligations (Note 8)			3,587			2,086
Total current liabilities			219,389			84,043

Other liabilities:
Revolving credit facility (Note 8)			223,000			—
Long-term finance lease and other financing obligations			4,348			1,675
Long-term operating lease obligations			143			1,128
Deferred revenue and customer deposits			90,324			9,292
Deferred tax liability			47,562			42,312
Asset retirement obligations			2,770			2,695
Total liabilities			587,536			141,145

Commitments and contingencies (Note 11)
Stockholders' equity:
Common Stock, $0.0001 par, 400,000,000 authorized, 113,584,418 issued and 98,593,889 outstanding as of September 30, 2026 and 113,094,172 issued and 99,797,242 outstanding as of December 31, 2025.			10			10
Common Stock in treasury at cost, 14,990,529 shares as of September 30, 2026 and 13,296,930 shares as of December 31, 2025.			(87,604)			(57,304)
Additional paid-in-capital			159,124			154,090
Accumulated other comprehensive loss			(2,815)			(2,798)
Accumulated earnings			264,097			295,259
Total stockholders' equity attributable to Target Hospitality Corp. stockholders			332,812			389,257
Noncontrolling interest in consolidated subsidiaries			(370)			(197)
Total stockholders' equity			332,442			389,060
Total liabilities and stockholders' equity		$	919,978		$	530,205


		For the Three Months Ended					For the Nine Months Ended
		September 30,					September 30,
		2026			2025		2026			2025
Revenue:
Services income		$	63,280		$	56,010	$	161,618		$	146,584
Specialty rental income			64,860			7,784		112,193			29,496
Construction fee income			923			35,561		13,487			54,778
Total revenue			129,063			99,355		287,298			230,858
Costs:
Services and construction costs			51,111			64,051		145,432			145,380
Specialty rental			27,121			2,988		35,363			8,270
Depreciation of specialty rental assets			21,320			14,371		54,313			41,627
Gross profit			29,511			17,945		52,190			35,581
Selling, general and administrative			19,307			12,918		52,616			40,387
Other depreciation and amortization			3,972			4,093		12,113			12,148
Other expense, net			3,262			865		6,310			970
Operating income (loss)			2,970			69		(18,849)			(17,924)
Loss on extinguishment of debt			983			—		983			2,370
Interest expense, net			3,162			458		5,067			5,724
Loss before income tax			(1,175)			(389)		(24,899)			(26,018)
Income tax expense (benefit)			8,009			368		6,228			(3,884)
Net loss			(9,184)			(757)		(31,127)			(22,134)
Less: Net income attributable to the noncontrolling interest			24			38		35			53
Net loss attributable to Target Hospitality Corp. common stockholders			(9,208)			(795)		(31,162)			(22,187)

Other comprehensive income (loss)
Foreign currency translation			199			(26)		(17)			(9)
Comprehensive loss		$	(8,985)		$	(783)	$	(31,144)		$	(22,143)


Weighted average number of shares outstanding - basic and diluted			99,899,726			99,778,834		100,014,863			99,431,460

Net loss per share attributable to Target Hospitality Corp. common stockholders - basic and diluted		$	(0.09)		$	(0.01)	$	(0.31)		$	(0.22)


												Additional			Accumulated						Total Target Hospitality Corp.
		Common Stock					Common Stock in Treasury					Paid In			Other			Accumulated			Stockholders'			Noncontrolling			Total
		Shares		Amount			Shares		Amount			Capital			Comprehensive Loss			Earnings			Equity			Interest			Equity
Balances at December 31, 2024		98,952,054		$	10		13,296,930		$	(57,304)		$	148,780		$	(2,785)		$	332,380		$	421,081		$	9		$	421,090
Net loss		—			—		—			—			—			—			(6,461)			(6,461)			2			(6,459)
Stock-based compensation, net		412,662			—		—			—			1,672			—			—			1,672			—			1,672
Tax withholdings related to net share settlement of equity awards		—			—		—			—			(973)			—			—			(973)			—			(973)
Cumulative translation adjustment		—			—		—			—			—			(4)			—			(4)			—			(4)
Distributions		—			—		—			—			—			—			—			—			(58)			(58)
Balances at March 31, 2025		99,364,716		$	10		13,296,930		$	(57,304)		$	149,479		$	(2,789)		$	325,919		$	415,315		$	(47)		$	415,268

Net loss		—			—		—			—			—			—			(14,931)			(14,931)			13			(14,918)
Stock-based compensation, net		413,356			—		—			—			2,134			—			—			2,134			—			2,134
Tax withholdings related to net share settlement of equity awards		—			—		—			—			(1,263)			—			—			(1,263)			—			(1,263)
Cumulative translation adjustment		—			—		—			—			—			21			—			21			—			21
Distributions		—			—		—			—			—			—			—			—			(57)			(57)
Balances at June 30, 2025		99,778,072		$	10		13,296,930		$	(57,304)		$	150,350		$	(2,768)		$	310,988		$	401,276		$	(91)		$	401,185

Net loss		—			—		—			—			—			—			(795)			(795)			38			(757)
Stock-based compensation, net		1,460			—		—			—			1,927			—			—			1,927			—			1,927
Tax withholdings related to net share settlement of equity awards		—			—		—			—			(5)			—			—			(5)			—			(5)
Cumulative translation adjustment		—			—		—			—			—			(26)			—			(26)			—			(26)
Distributions		—			—		—			—			—			—			—			—			(78)			(78)
Balances at September 30, 2025		99,779,532		$	10		13,296,930		$	(57,304)		$	152,272		$	(2,794)		$	310,193		$	402,377		$	(131)		$	402,246

Balances at December 31, 2025		99,797,242		$	10		13,296,930		$	(57,304)		$	154,090		$	(2,798)		$	295,259		$	389,257		$	(197)		$	389,060
Net loss		—			—		—			—			—			—			(12,919)			(12,919)			(43)			(12,962)
Stock-based compensation, net		356,755			—		—			—			1,658			—			—			1,658			—			1,658
Tax withholdings related to net share settlement of equity awards		—			—		—			—			(1,046)			—			—			(1,046)			—			(1,046)
Cumulative translation adjustment		—			—		—			—			—			(26)			—			(26)			—			(26)
Distributions		—			—		—			—			—			—			—			—			(62)			(62)
Balances at March 31, 2026		100,153,997		$	10		13,296,930		$	(57,304)		$	154,702		$	(2,824)		$	282,340		$	376,924		$	(302)		$	376,622

Net loss		—			—		—			—			—			—			(9,035)			(9,035)			54			(8,981)
Stock-based compensation, net		106,555			—		—			—			2,316			—			—			2,316			—			2,316
Tax withholdings related to net share settlement of equity awards		—			—		—			—			(115)			—			—			(115)			—			(115)
Cumulative translation adjustment		—			—		—			—			—			(190)			—			(190)			—			(190)
Distributions		—			—		—			—			—			—			—			—			(74)			(74)
Issuance of Common Stock from exercise of stock options		24,891			—		—			—			209			—			—			209			—			209
Balances at June 30, 2026		100,285,443		$	10		13,296,930		$	(57,304)		$	157,112		$	(3,014)		$	273,305		$	370,109		$	(322)		$	369,787

Net loss		—			—		—			—			—			—			(9,208)			(9,208)			24			(9,184)
Stock-based compensation, net		2,045			—		—			—			2,027			—			—			2,027			—			2,027
Tax withholdings related to net share settlement of equity awards		—			—		—			—			(15)			—			—			(15)			—			(15)
Cumulative translation adjustment		—			—		—			—			—			199			—			199			—			199
Distributions		—			—		—			—			—			—			—			—			(72)			(72)
Repurchase of Common Stock		(1,693,599)			—		1,693,599			(30,300)			—			—			—			(30,300)			—			(30,300)
Balances at September 30, 2026		98,593,889		$	10		14,990,529		$	(87,604)		$	159,124		$	(2,815)		$	264,097		$	332,812		$	(370)		$	332,442


	For the Years Ended December 31,
	2026		2027		2028		2029		2030		Thereafter		Total
Revenue expected to be recognized as of September 30, 2026	$	30,190	$	117,554	$	69,520	$	32,953	$	18,766	$	35,822	$	304,805


		HFS - South
Balance at January 1, 2025		$	41,038
Changes in Goodwill			—
Balance at December 31, 2025			41,038
Changes in Goodwill			—
Balance at September 30, 2026		$	41,038


		September 30, 2026
		Weighted		Gross
		average		Carrying			Accumulated			Net Book
		remaining lives		Amount			Amortization			Value
Intangible assets subject to amortization
Customer relationships		1.5		$	133,105		$	(120,093)		$	13,012
Non-compete agreement		1.3			349			(259)			90
Total					133,454			(120,352)			13,102
Indefinite lived assets:
Tradenames					16,400			—			16,400
Total intangible assets other than goodwill				$	149,854		$	(120,352)		$	29,502


		December 31, 2025
		Weighted		Gross
		average		Carrying			Accumulated			Net Book
		remaining lives		Amount			Amortization			Value
Intangible assets subject to amortization
Customer relationships		2.0		$	133,105		$	(110,316)		$	22,789
Non-compete agreement		2.1			349			(206)			143
Total					133,454			(110,522)			22,932
Indefinite lived assets:
Tradenames					16,400			—			16,400
Total intangible assets other than goodwill				$	149,854		$	(110,522)		$	39,332


Rest of 2026	$	3,049
2027		8,270
2028		778
2029		525
2030		456
Thereafter		24
Total	$	13,102


Rest of 2026	$	906
2027		2,907
2028		1,968
2029		1,098
2030		576
Thereafter		223,480
Total	$	230,935


		September 30, 2026						December 31, 2025
Financial Assets (Liabilities) Not Measured at Fair Value		Carrying Amount				Fair Value		Carrying Amount			Fair Value
ABL Facility (See Note 8) - Level 2		$	(223,000)		$	(223,000)		$	—		$	—


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2026		2025		2026		2025
HFS – South
Services income	$	31,549	$	34,111	$	94,888	$	102,794
Total HFS – South revenues		31,549		34,111		94,888		102,794

WHS
Services income	$	23,902	$	767	$	44,158	$	1,794
Construction fee income		923		35,561		13,487		54,778
Total WHS revenues		24,825		36,328		57,645		56,572

Government
Services income	$	4,635	$	18,111	$	13,724	$	33,155
Total Government revenues		4,635		18,111		13,724		33,155

All Other
Services income	$	3,194	$	3,021	$	8,848	$	8,841
Total All Other revenues		3,194		3,021		8,848		8,841

Total	$	64,203	$	91,571	$	175,105	$	201,362


		For the Nine Months Ended
		September 30,
		2026		2025
Balances at Beginning of the Period		$	18,574	$	1,235
Additions to deferred revenue			150,825		14,315
Revenue recognized			(17,038)		(582)
Decrease in billings in excess of cost			(1,760)		—
Balances at End of the Period		$	150,601	$	14,968


		September 30,			December 31,
		2026			2025
Land		$	39,002		$	31,184
Buildings and leasehold improvements			908			908
Machinery and office equipment			2,570			2,398
Other¹			18,710			12,605
			61,190			47,095
Less: accumulated depreciation			(13,048)			(11,341)
Total other property, plant and equipment, net		$	48,142		$	35,754


		Number of Shares			Weighted Average Grant Date Fair Value per Share
Balance at December 31, 2025		1,290,634		$	6.80
Granted		670,760			8.66
Vested		(615,817)			6.67
Forfeited		(2,026)			7.44
Balance at September 30, 2026		1,343,551		$	7.79


		Options			Weighted Average Exercise Price Per Share		Weighted Average Contractual Life (Years)			Intrinsic Value ($ in thousands)
Outstanding Options at December 31, 2025		345,227		$	7.52		3.80		$	632
Exercised		(24,891)			8.31		—			210
Outstanding Options at September 30, 2026		320,336		$	7.46		3.06		$	3,926


		Assumptions
Weighted average expected stock volatility (range)	%	25.94 - 30.90
Expected dividend yield	%	0.00
Expected term (years)		6.25
Risk-free interest rate (range)	%	0.82 - 2.26
Exercise price (range)	$	4.51 - 10.83


	For the Three Months Ended				Amount of		Percentage Change
	September 30,				Increase		Increase
	2026		2025		(Decrease)		(Decrease)
Revenue:
Services income	$	63,280	$	56,010	$	7,270	13%
Specialty rental income		64,860		7,784		57,076	733%
Construction fee income		923		35,561		(34,638)	(97)%
Total revenue		129,063		99,355		29,708	30%
Costs:
Services and construction costs		51,111		64,051		(12,940)	(20)%
Specialty rental		27,121		2,988		24,133	808%
Depreciation of specialty rental assets		21,320		14,371		6,949	48%
Gross Profit		29,511		17,945		11,566	64%
Selling, general and administrative		19,307		12,918		6,389	49%
Other depreciation and amortization		3,972		4,093		(121)	(3)%
Other expense, net		3,262		865		2,397	277%
Operating income		2,970		69		2,901	4204%
Loss on extinguishment of debt		983		—		983	100%
Interest expense, net		3,162		458		2,704	590%
Loss before income tax		(1,175)		(389)		(786)	202%
Income tax expense		8,009		368		7,641	2076%
Net loss		(9,184)		(757)		(8,427)	1113%
Less: Net income attributable to the noncontrolling interest		24		38		(14)	(37)%
Net loss attributable to Target Hospitality Corp. common stockholders	$	(9,208)	$	(795)	$	(8,413)	1058%


											Percentage
		For the Three Months Ended September 30,						Amount of Increase			Change Increase
		2026			2025			(Decrease)			(Decrease)
Revenue:
HFS - South		$	32,632		$	35,559		$	(2,927)		(8)%
WHS			79,530			36,845			42,685		116%
Government			13,707			23,929			(10,222)		(43)%
All Other			3,194			3,022			172		6%
Total Revenues		$	129,063		$	99,355		$	29,708		30%

Adjusted Gross Profit
HFS - South		$	7,668		$	10,397		$	(2,729)		(26)%
WHS			39,826			6,542			33,284		509%
Government			3,358			15,058			(11,700)		(78)%
All Other			(21)			319			(340)		(107)%
Total Adjusted Gross Profit		$	50,831		$	32,316		$	18,515		57%

Average Daily Rate
HFS - South		$	72.19		$	70.24		$	1.95



			For the Nine Months Ended September 30,					Amount of Increase			Percentage Change Increase
		2026			2025			(Decrease)			(Decrease)
Revenue:
HFS - South		$	98,327		$	107,794			(9,467)		(9)%
WHS			139,477			57,091			82,386		144%
Government			40,646			57,133		$	(16,487)		(29)%
All Other			8,848			8,840			8		0%
Total Revenues		$	287,298		$	230,858		$	56,440		24%

Adjusted Gross Profit
HFS - South		$	23,428		$	31,977			(8,549)		(27)%
WHS			68,525			11,498			57,027		496%
Government			14,709			33,156		$	(18,447)		(56)%
All Other			(159)			577			(736)		(128)%
Total Adjusted Gross Profit		$	106,503		$	77,208		$	29,295		38%

Average Daily Rate
HFS - South		$	72.02		$	69.98		$	2.04


	For the Nine Months Ended
($ in thousands)	September 30,
	2026			2025

Net cash provided by operating activities	$	154,195		$	68,357
Net cash used in investing activities		(335,995)			(41,171)
Net cash provided by (used in) financing activities		176,833			(187,485)
Effect of exchange rate changes on cash and cash equivalents		(14)			18
Net decrease in cash and cash equivalents	$	(4,981)		$	(160,281)


Period	Total number of shares purchased			Average price paid per share		Total number of shares purchased as part of publicly announced plan or program		Maximum number (or approximate dollar value) of shares yet to be purchased under the plans or programs (1)
July 1, 2026 through July 31, 2026	—		$	—		—		—
August 1, 2026 through August 31, 2026	—		$	—		—		—
September 1, 2026 through September 30, 2026	1,693,599		$	17.71		1,693,599		—
Total	1,693,599		$	17.71		1,693,599


Exhibit No.		Exhibit Description
10.1		ABL Credit Agreement, dated as of July 24, 2026, by and among Arrow Bidco, LLC, the other Loan Parties party thereto, JPMorgan Chase Bank, N.A. as administrative agent for itself and the other Secured Parties and each of the Revolver Lenders party thereto (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed with the SEC on July 27, 2026).

10.2*		First Amendment to ABL Credit Agreement and Security Agreement, dated as of September 10, 2026, by and among Arrow Bidco, LLC, as the Administrative Borrower, and JPMorgan Chase Bank, N.A., as the Administrative Agent.

31.1*		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2*		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1**		Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2**		Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File––the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

	Target Hospitality Corp.

Dated: November 9, 2026	By:	/s/ JASON P. VLACICH
		Jason P. Vlacich
		Chief Financial Officer


	ARROW BIDCO, LLC, as the Administrative Borrower


	By:	/s/ Jason Vlacich
	Name: Jason Vlacich
	Title: Chief Financial Officer


	JPMORGAN CHASE BANK, N.A., as the Administrative Agent


	By:	/s/ Ethan Turner
	Name: Ethan Turner
	Title: Authorized Officer