DNOW (DNOW) closed out FY 2025 with Q4 revenue of US$959 million and a basic EPS loss of US$1.03, while trailing 12 month figures show revenue of US$2.8 billion and a basic EPS loss of US$0.76. Over recent quarters the company has seen revenue move from US$571 million in Q4 2024 to between US$599 million and US$634 million across the first three quarters of 2025, with quarterly EPS ranging from US$0.12 to US$0.24 over that period before the latest loss, presenting a mixed picture for the year. For investors, a key question now is whether forecast revenue and earnings growth can translate into steadier margins after a volatile EPS run.

See our full analysis for DNOW.

With the headline numbers on the table, the next step is to see how these results line up against the dominant market narratives around DNOW's growth potential, profitability path, and risk profile.

US$2.8b in sales, but FY 2025 ends with a loss

• On a trailing 12 month basis, DNOW generated US$2.8b in revenue and reported a net loss of US$89 million, which translates to a basic EPS loss of US$0.76.
• Analysts' consensus view highlights that DNOW is expanding into midstream and energy transition areas. However, the current loss position and the move from quarterly profits of US$21 million to US$25 million in early 2025 to a Q4 loss of US$159 million underline how execution and cost control need to catch up to the growth story.
  • Consensus points to international projects and energy evolution sales as future drivers, but the shift from positive trailing EPS of US$0.88 in Q3 2025 to a trailing EPS loss of US$0.76 by Q4 shows that recent performance has not yet reflected those ambitions.
  • With Q4 revenue at US$959 million compared with US$599 million to US$634 million in the prior three quarters, the step up in scale comes with higher earnings volatility that investors will want to track against future margin expectations.

LTM margin pressure versus bullish growth story

• Over the last 12 months DNOW remained unprofitable, even though losses have reportedly shrunk by an average of 39.1% per year over the past five years and revenue is forecast at 15.1% annual growth with earnings forecast at 52.15% annual growth.
• Supporters of the bullish view argue that expansion into midstream infrastructure and energy evolution segments can justify those growth forecasts. However, the current trailing net loss of US$89 million and basic EPS loss of US$0.76 show that the company is still in a loss making phase.
  • Bulls point to strong cash generation and no debt alongside a planned shift in profit margins from about a 3.2% loss today to a 4.3% profit in three years, but the latest Q4 2025 EPS loss of US$1.03 contrasts sharply with the positive quarterly EPS range of US$0.12 to US$0.24 seen earlier in the year.
  • The consensus view also assumes earnings could reach US$223.8 million by around April 2029, which would be a very large swing from the trailing loss, so investors may want to see how future quarters track against that gap before leaning solely on the bullish case.

Do you want to see how bullish investors connect these growth forecasts to DNOW's future earnings power in more detail? 🐂 DNOW Bull Case

Valuation upside tempered by dilution risk

• DNOW is trading at a P/S of 0.9x compared with peer and industry averages of 1.4x and 1.2x. The current share price of US$13.05 sits below both the DCF fair value of about US$23.54 and the analyst price target of US$16.00.
• Bears focus on capital structure and end market risks, arguing that substantial shareholder dilution over the past year, weaker rig and completion activity, and potential pressure from steel prices and competition could limit how much investors benefit even if growth forecasts are met.
  • The data flags that shares outstanding are expected to grow by 7% per year for the next three years, so any future earnings recovery, such as the projected US$223.8 million by 2029, would be spread over a larger share base.
  • Concerns about customer consolidations and some international projects not repeating sit beside the fact that DNOW was still loss making on US$2.8b of trailing revenue, which gives bears concrete numbers to point to when questioning how quickly the lower P/S and gap to DCF fair value might close.

Skeptical about whether recent dilution and sector headwinds justify caution even with this valuation gap? 🐻 DNOW 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 DNOW on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Conflicted by both the risks and rewards in this story? Take a closer look at the numbers now and weigh both sides using the 3 key rewards and 1 important warning sign

See What Else Is Out There

DNOW's shift from positive quarterly EPS to a Q4 loss, alongside ongoing dilution and a trailing net loss, highlights meaningful profitability and risk concerns.

If you want ideas that may sidestep those pressures and focus on more resilient setups, check out the 72 resilient stocks with low risk scores that screens for companies with stronger risk profiles.

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.