📊 TALO Key Takeaways
Is Talos Energy Inc.. (TALO) a Good Investment?
Talos Energy faces severe financial distress with deeply negative profitability (net margin -54.2%), declining revenues (-9.8% YoY), and critically negative interest coverage (-3.0x) indicating inability to service debt from operating income. While operating cash flow remains positive at $174M, the combination of accelerating losses, negative equity returns, and deteriorating fundamentals presents substantial risk.
Why Buy Talos Energy Inc.. Stock? TALO Key Strengths
- Strong operating cash flow of $174M despite net losses, suggesting underlying asset cash generation capacity
- Reasonable liquidity position with $386.4M cash reserves and 1.20x current ratio providing near-term solvency buffer
- Moderate leverage at 0.65x debt-to-equity with positive stockholders equity of $1.9B provides restructuring flexibility
TALO Stock Risks: Talos Energy Inc.. Investment Risks
- Critically negative interest coverage of -3.0x indicates inability to cover interest expense from operating income, creating acute default risk
- Net margin of -54.2% with declining revenues represents structural profitability collapse and shareholder value destruction
- Operating income negative at -$119.4M with deteriorating net income (-548.4% YoY decline) signals worsening fundamental condition
Key Metrics to Watch
- Interest coverage ratio and debt covenant compliance status to assess refinancing/default risk
- Operating cash flow sustainability relative to capital expenditure requirements and interest obligations
- Revenue stabilization and path to positive operating income to determine viability of current capital structure
Talos Energy Inc.. (TALO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 36.8% 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 |
|---|---|---|---|
| Q1 2026 | $472.3M | -$9.9M | $-0.05 |
| 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 |
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 SELL with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TALO's key strengths?
Claude: Strong operating cash flow of $174M despite net losses, suggesting underlying asset cash generation capacity. Reasonable liquidity position with $386.4M cash reserves and 1.20x current ratio providing near-term solvency buffer.
What are the risks of investing in TALO?
Claude: Critically negative interest coverage of -3.0x indicates inability to cover interest expense from operating income, creating acute default risk. Net margin of -54.2% with declining revenues represents structural profitability collapse and shareholder value destruction.
What is TALO's revenue and growth?
Talos Energy Inc.. reported revenue of $472.3M.
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 $-1.52.
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 May 2026, Talos Energy Inc.. has a SELL rating with 85% 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 -13.7% (sector avg: 14%), net margin of -54.2% (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 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 $174.0M, with capital expenditures of N/A. FCF margin is 36.8%.
How does TALO compare to other Energy stocks?
Vs Energy sector averages: Net margin -54.2% (avg: 12%), ROE -13.7% (avg: 14%), current ratio 1.20 (avg: 1.3).