📊 TALO Key Takeaways
Is Talos Energy Inc.. (TALO) a Good Investment?
Talos Energy is fundamentally unprofitable with persistent negative operating income (-$560.3M) and net margin deterioration (-27.8%), combined with declining revenue (-9.8% YoY) and inability to cover interest expenses from operations (-3.4x coverage). While operating cash flow remains resilient at $935.8M, the underlying business fundamentals are critically weak and unsustainable without significant operational improvements or external recovery.
Why Buy Talos Energy Inc.. Stock? TALO Key Strengths
- Operating cash flow of $935.8M provides near-term liquidity buffer despite accounting losses
- Moderate leverage with 0.57x debt-to-equity ratio and $362.8M cash reserves limit bankruptcy risk in near term
- Reasonable current ratio of 1.30x suggests ability to meet short-term obligations
TALO Stock Risks: Talos Energy Inc.. Investment Risks
- Deeply unprofitable with negative net income of $494.3M and operating margin of -31.5%, indicating unsustainable business model
- Negative interest coverage ratio of -3.4x means operating income cannot service $1.2B long-term debt burden without cash depletion
- Revenue declining -9.8% YoY in already negative margin environment signals deteriorating operational trajectory and cyclical sector headwinds
- Disconnect between positive cash flow and negative earnings suggests large non-cash charges masking underlying operational distress
Key Metrics to Watch
- Operating income trend and return to profitability
- Revenue stabilization and commodity price exposure
- Interest coverage ratio sustainability with current debt load
- Operating cash flow consistency and working capital dynamics
- Debt service capacity as cash reserves deplete
Talos Energy Inc.. (TALO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 52.6% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
TALO Profit Margin, ROE & Profitability Analysis
TALO vs Energy Sector: How Talos Energy Inc.. Compares
How Talos Energy Inc.. compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Talos Energy Inc.. Stock Overvalued? TALO Valuation Analysis 2026
Based on fundamental analysis, Talos Energy Inc.. shows some fundamental concerns relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Talos Energy Inc.. Balance Sheet: TALO Debt, Cash & Liquidity
TALO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Talos Energy Inc..'s revenue has grown significantly by 59% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.55 reflects profitable operations.
TALO Revenue Growth, EPS Growth & YoY Performance
TALO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $450.1M | -$11.9M | $-0.07 |
| Q2 2025 | $424.7M | $12.4M | $0.07 |
| Q1 2025 | $429.9M | -$9.9M | $-0.05 |
| Q3 2024 | $383.1M | -$2.1M | $-0.02 |
| Q2 2024 | $367.2M | $12.4M | $0.07 |
| Q1 2024 | $322.6M | $89.9M | $-0.71 |
| Q3 2023 | $377.1M | -$2.1M | $-0.02 |
| Q2 2023 | $367.2M | $13.7M | $0.11 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Talos Energy Inc.. Dividends, Buybacks & Capital Allocation
TALO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Talos Energy Inc.. (CIK: 0001724965)
📋 Recent SEC Filings
❓ Frequently Asked Questions about TALO
What is the AI rating for TALO?
Talos Energy Inc.. (TALO) has an AI rating of STRONG SELL with 87% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TALO's key strengths?
Claude: Operating cash flow of $935.8M provides near-term liquidity buffer despite accounting losses. Moderate leverage with 0.57x debt-to-equity ratio and $362.8M cash reserves limit bankruptcy risk in near term.
What are the risks of investing in TALO?
Claude: Deeply unprofitable with negative net income of $494.3M and operating margin of -31.5%, indicating unsustainable business model. Negative interest coverage ratio of -3.4x means operating income cannot service $1.2B long-term debt burden without cash depletion.
What is TALO's revenue and growth?
Talos Energy Inc.. reported revenue of $1.8B.
Does TALO pay dividends?
Talos Energy Inc.. does not currently pay dividends.
Where can I find TALO SEC filings?
Official SEC filings for Talos Energy Inc.. (CIK: 0001724965) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TALO's EPS?
Talos Energy Inc.. has a diluted EPS of $-2.82.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is TALO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Talos Energy Inc.. has a STRONG SELL rating with 87% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is TALO stock overvalued or undervalued?
Valuation metrics for TALO: ROE of -22.8% (sector avg: 14%), net margin of -27.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy TALO stock in 2026?
Our dual AI analysis gives Talos Energy Inc.. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is TALO's free cash flow?
Talos Energy Inc..'s operating cash flow is $935.8M, with capital expenditures of N/A. FCF margin is 52.6%.
How does TALO compare to other Energy stocks?
Vs Energy sector averages: Net margin -27.8% (avg: 12%), ROE -22.8% (avg: 14%), current ratio 1.30 (avg: 1.3).