KLXE KLX Energy Services Holdings, Inc.

Overview and Growth

Fiscal 2025 results for KLX Energy Services Holdings, Inc. combined $636.60M of revenue with net loss of $77.10M and an operating cash inflow of $7.50M. The $636.60M revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. The top line contracted 10.2% from $709.30M in fiscal 2024; this top-line contraction left the company with a smaller revenue base. Diluted earnings per share were -$4.12, translating the period’s attributable earnings into the amount reported for each diluted share. Total assets stood at $340.30M, showing the scale of resources supporting revenue, earnings, liquidity, and financing. The revenue-to-assets relationship was 1.87x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

After reported cost of revenue, the company retained $135.10M as gross profit before recognizing operating expenses and other items. Gross margin was 21.2%, so that share of each revenue unit remained after the cost of revenue reported for the period. The reported operating result was an operating loss of $30.30M, reflecting costs that exceeded gross profit. The operating loss equaled 4.8% of revenue, showing the scale of the operating deficit relative to sales. The company ended the period with a net loss of $77.10M, extending the operating result through all remaining items. Measured against revenue, the bottom-line deficit represented 12.1% after all recognized items. The company reported a pretax loss of $76.30M, before the effect of income taxes. Pretax margin was -12.0%, reflecting a pre-tax loss equal to 12.0% of revenue. The reported income-tax provision was $800.00K, the amount recognized between pretax income and the final net-income result. Relative to total assets, the net loss represented 22.7%.

Liquidity and Capital Structure

The company held $340.30M of assets against $414.50M of liabilities and -$74.20M of equity, revealing how the asset base was financed. With total equity at -$74.20M, the company carried a negative book-capital position, increasing its reliance on liabilities and future earnings. Current assets were $149.90M against $126.20M of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. At 1.19x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Reported cash and equivalents were $5.70M, separating immediately recognizable cash resources from the rest of the current-asset base. Cash and equivalents represented 4.5% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Borrowings totaled $258.30M, adding a fixed financing obligation alongside the company’s equity capital. The debt-to-assets relationship was 75.9%, comparing borrowing with the total asset balance. The liabilities-to-assets relationship was 121.8%, placing reported obligations against the full positive asset balance. Measured against total assets, cash and equivalents represented 1.7%, a balance-sheet composition measure rather than a liquidity forecast. Total assets were 25.4% lower than fiscal 2024 assets of $456.30M, measuring the company’s own balance-sheet change. The reported cash balance changed 93.8% from $91.60M in fiscal 2024, ending lower year over year.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $7.50M, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Capital spending was $49.10M, absorbing part of the cash generated from operations before free cash flow. Capital spending absorbed 654.7% of operating cash flow, quantifying the share of cash from operations directed to investment. Negative free cash flow was $41.60M, leaving a cash deficit after capital spending and reducing financial flexibility. Free-cash-flow margin was -6.5%, reflecting a cash deficit equal to 6.5% of revenue after capital spending. The free-cash-flow deficit equaled 12.2% of total assets, placing the cash shortfall against the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.