California Resources (CRC) opened 2026 with Q1 revenue of US$967 million and a basic EPS loss of US$8.02 per share, setting a stark headline for the latest quarter. The company has seen quarterly revenue move between US$798 million and US$926 million over the last year, while EPS shifted from a profit of US$1.93 in Q2 2025 to smaller profits in subsequent quarters before this latest loss. This leaves investors weighing solid top line scale against pressure on margins.

See our full analysis for California Resources.

With those results on the table, the next step is to set these earnings against the widely followed CRC narratives to see which stories hold up and which need to be reconsidered in light of the current margin picture.

US$711 million loss despite US$3.5b trailing revenue

• On a trailing 12 month basis, CRC produced about US$3.5b in revenue but recorded a net loss of US$463 million and basic EPS of US$5.35 loss, highlighting that scale has not translated into profitability recently.
• Consensus narrative highlights progress on cost control and carbon projects as future earnings drivers, yet the current loss in Q1 2026 of US$711 million alongside earlier quarters of profit creates a clear tension between the idea of improving margins and the reality that margins are still negative today.
  • Supporters of the consensus view point to analysts expecting earnings to reach US$464.1 million by around 2029, but the latest twelve month figures are still in loss territory.
  • The same consensus expects profit margins to move from 10.7% to 11.7%, while recent EPS has swung from quarterly profits like US$1.93 in Q2 2025 to a US$8.02 loss per share in Q1 2026, so the path from current variability to steadier margins is not yet visible in the reported numbers.

Production growth with mixed pricing support

• Total oil equivalent production increased from around 12.4 MMboe in Q3 2025 and 12.8 MMboe in Q1 2025 to 14.0 MMboe in Q1 2026, while realized hedged oil prices moved in a relatively tight band between roughly US$66.73 and US$72.01 per barrel over the past few reported quarters, with Q1 2026 at US$69.37 per barrel.
• Bulls argue that steady local energy demand and carbon capture projects can make CRC’s production base more valuable over time, but the recent figures show that higher production alone has not prevented losses, which tests how quickly the bullish narrative can play out.
  • The bullish case leans on California’s energy demand and CRC’s in state footprint, yet even with production around 50 MMboe over the last twelve months, the company still reported a US$463 million net loss.
  • Supporters also point to CRC’s CCS initiatives as a future high margin stream, but current realized prices for oil, gas and NGLs in Q1 2026, while reasonably stable, have not yet translated into positive EPS, so the uplift from these projects is not visible in the reported period.

Bulls suggest this production profile could turn into earnings power once CCS and cost savings ramp, but the current US$463 million trailing loss makes the bullish path worth examining in more detail 🐂 California Resources Bull Case.

Cheap on P/S with a wide DCF gap

• CRC trades around US$61.46 per share with a P/S of 1.6x compared with peers at 2.6x and the US Oil & Gas industry at 2.2x. A DCF fair value of about US$150.13 in the provided data indicates a large gap between market price and that modelled valuation.
• Bears focus on the fact that CRC is currently unprofitable despite that apparent discount, arguing that weak trailing earnings and a dividend that is not well covered by profits could justify a lower multiple than peers.
  • The trailing net loss of US$463 million, coupled with five year losses that have grown at roughly 53% per year, sits uncomfortably next to a dividend yield of 2.64% that is not covered by current earnings.
  • This combination means the valuation gap to the DCF fair value of US$150.13 and the analyst price target of US$81.17 rests on future earnings growth materialising, while the present P/S discount can also be read as the market pricing in ongoing pressure on profitability.

Skeptics point out that a low P/S ratio can be a value trap when losses are widening, which is exactly what the recent US$463 million trailing loss raises questions about 🐻 California Resources Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for California Resources on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Given the mix of concerns and optimism running through these results, it makes sense to look at the data yourself and then move quickly to shape your own view using the 4 key rewards and 2 important warning signs.

See What Else Is Out There

CRC is working with US$3.5b of trailing revenue yet still reporting a US$463 million loss and volatile EPS, which keeps profitability and dividend cover under pressure.

If that mix of losses and an uncovered 2.64% yield leaves you cautious, compare it with companies screened for stronger income support and resilience through the 12 dividend fortresses.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.