Empire Petroleum (EP) opened 2026 with Q1 revenue of about US$5.1 million and a basic EPS loss of US$0.18, while the trailing twelve months show revenue of roughly US$30.3 million and a basic EPS loss of US$2.15. Over recent quarters the company has seen revenue move from US$12.97 million in Q4 2024 to US$9.00 million in Q1 2025 and US$5.10 million in Q1 2026, alongside a shift in quarterly basic EPS losses from US$0.13 to US$0.12 and then US$0.18. This keeps the focus on how efficiently each revenue dollar is translating into earnings. For investors, this latest print centers on what the persistent losses signal for margins and how much operational improvement would be needed before profitability is in sight.

See our full analysis for Empire Petroleum.

With the headline numbers set, the next step is to see how these results line up against the widely held narratives around Empire Petroleum, highlighting where the story is reinforced and where the latest margin picture pushes back.

US$74.5 million loss over the last year

• On a trailing twelve month basis, Empire Petroleum reported total revenue of about US$30.3 million against a net loss of roughly US$74.5 million, with basic EPS over that period at a loss of about US$2.15.
• Critics highlight that multi year earnings have declined about 32.7% per year, and the latest figures line up with that concern, as:
  • Net loss over the last twelve months of about US$74.5 million compares with quarterly losses such as US$6.6 million in Q1 2026, showing that losses are not confined to a single period.
  • Across recent quarters, revenue figures between US$5.1 million and US$12.97 million have not been enough to avoid repeated losses, which supports the view that profitability has been under sustained pressure.

On this track record, skeptics see a company still working through heavy losses and looking for clearer proof that earnings can stabilise before sentiment shifts in a meaningful way. 🐻 Empire Petroleum Bear Case

P/S of 3.4x sends mixed signals

• The stock trades on a P/S of 3.4x, which is lower than the 5.4x peer average but higher than the broader US Oil & Gas industry at 2.1x.
• What stands out for some bearish investors is that this mixed valuation sits against a loss making profile, because:
  • Trailing twelve month revenue of about US$30.3 million and a net loss of about US$74.5 million mean the P/S multiple is built on sales that have not translated into profits.
  • The gap between the company’s P/S of 3.4x and the industry’s 2.1x occurs even though no trailing period rewards were identified in the data, which some bears see as limiting valuation support.

Shareholder dilution adds to loss profile

• Over the last twelve months, shareholders experienced dilution alongside the reported trailing net loss of about US$74.5 million.
• For cautious holders, the combination of dilution and losses reinforces a bearish narrative, because:
  • Earnings over the past five years have declined about 32.7% per year, so any new shares are being issued against a backdrop of falling profitability rather than expanding earnings.
  • The trailing loss and dilution sit together with a Q1 2026 basic EPS loss of about US$0.18, which some view as spreading weaker earnings over a larger share base.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Empire Petroleum's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

If this all sounds cautious, that is exactly why it helps to look through the figures yourself and stress test the story against your own expectations. Before deciding how it fits into your portfolio, take a moment to review the 2 important warning signs.

See What Else Is Out There

Empire Petroleum currently carries heavy and repeated losses, shareholder dilution, and a mixed P/S multiple that some investors feel is not fully supported by its earnings record.

If you want ideas that aim to pair financial resilience with clearer earnings support, check out the solid balance sheet and fundamentals stocks screener (45 results) to quickly spot alternatives with stronger fundamentals.

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.