0001654954-26-003098
SEC filingPEDEVCO Corp. delivered revenue growth in FY2025, but faced substantial declines in profitability and earnings per share due to increased operating expenses and lower operating income, reflecting ongoing operational and macroeconomic challenges.
Despite top-line improvement, operating income declined significantly, turning negative at -$7.9 million compared to $4.7 million in FY2024. The operating margin fell to -17.2%, signaling deepening cost pressures. This reversal was driven by rising expenses linked to the current capital drilling program, including increased payables and operational costs. While hedging activities may have provided some mitigation, they were insufficient to offset broader expense growth.
Net income reversed into a loss of $10.4 million from a profit of $12.3 million the prior year, with diluted EPS falling to -$2.25 from $0.14. The year-over-year change in net income represents a decline of 184.3%, underscoring the severity of the earnings contraction. Concurrently, net cash provided by operating activities decreased to $10.8 million from $12.8 million, constrained by working capital movements and elevated expenditures related to ongoing development activities.