Target Hospitality Corp. (NASDAQ:TH) posted a wider-than-expected net loss of $6.5 million ($0.07 per share) for Q1 2025, compared to a net income of $20.4 million ($0.20 per share) in the same period last year. The loss exceeded analysts’ estimate of $0.01 per share.
Revenue declined 34.5% year-over-year to $69.9 million, slightly missing the $70 million consensus, mainly due to contract terminations in the government segment, including the Pecos Children’s Center and South Texas Family Residential Center contracts.
Despite the disappointing quarter, the company reaffirmed its full-year 2025 revenue guidance of $265 million to $285 million, aligning with analyst expectations.
CEO Brad Archer highlighted strong business fundamentals and progress on new contracts, such as a multi-year $140 million Workforce Hub contract and a 5-year $246 million deal to reactivate assets in Dilley, Texas.
Following the earnings report, Target Hospitality’s stock rose modestly by 0.7%, reflecting a neutral market reaction to the mixed results and reaffirmed guidance.