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Target Hospitality Corp.

CIK:0001712189|SEC Filings

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue:
Revenue	$ 54,698	$ 54,890	$ 110,903	$ 109,792
Total revenue	85,455	61,606	158,236	131,503
Costs:
Depreciation of specialty rental assets	17,418	13,584	32,993	27,256
Gross profit	15,797	(328)	22,680	17,636
Selling, general and administrative	18,753	12,664	33,310	27,469
Other depreciation and amortization	4,120	4,082	8,141	8,055
Other expense (income), net	420	(156)	3,048	106
Operating loss	(7,496)	(16,918)	(21,819)	(17,994)
Loss on extinguishment of debt				2,370
Interest expense, net	1,012	937	1,904	5,266
Loss before income tax	(8,508)	(17,855)	(23,723)	(25,630)
Income tax expense (benefit)	473	(2,937)	(1,780)	(4,253)
Net loss	(8,981)	(14,918)	(21,943)	(21,377)
Less: Net income attributable to the noncontrolling interest	54	13	11	15
Net loss attributable to Target Hospitality Corp. common stockholders	(9,035)	(14,931)	(21,954)	(21,392)
Other comprehensive income (loss)
Foreign currency translation	(190)	21	(216)	17
Comprehensive loss	$ (9,171)	$ (14,897)	$ (22,159)	$ (21,360)
Two Class Method:
Weighted average number shares outstanding - basic (in shares)	100,214,415	99,396,381	100,073,385	99,254,946
Weighted average number shares outstanding - diluted (in shares)	100,214,415	99,396,381	100,073,385	99,254,946
Net loss per share attributable to Target Hospitality Corp. common stockholders - basic (in dollars per share)	$ (0.09)	$ (0.15)	$ (0.22)	$ (0.22)
Net loss per share attributable to Target Hospitality Corp. common stockholders - diluted (in dollars per share)	$ (0.09)	$ (0.15)	$ (0.22)	$ (0.22)
Services income
Revenue:
Revenue	$ 51,828	$ 40,467	$ 98,339	$ 90,574
Costs:
Costs	47,583	45,561	94,321	81,329
Specialty rental income
Revenue:
Specialty rental income	30,757	6,716	47,333	21,711
Costs:
Costs	4,657	2,789	8,242	5,282
Construction fee income
Revenue:
Revenue	$ 2,870	$ 14,423	$ 12,564	$ 19,218

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net loss	$ (21,943)	$ (21,377)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	34,403	28,580
Amortization of intangible assets	6,731	6,731
Noncash operating lease expense	4,325	4,492
Accretion of asset retirement obligation	70	65
Amortization of deferred financing costs	426	424
Amortization of original issue discount		440
Loss on extinguishment of debt		2,370
Stock-based compensation expense	3,974	3,806
Loss (gain) on disposal of specialty rental assets and other property, plant and equipment	(220)	27
Deferred income taxes	(2,178)	(4,844)
Provision for credit losses on receivables, net of recoveries	214	37
Changes in operating assets and liabilities
Accounts receivable	5,488	(8,200)
Prepaid expenses and other assets	1,415	2,957
Accounts payable and other accrued liabilities	(19,579)	(4,095)
Deferred revenue and customer deposits	102,889	7,809
Operating lease obligation	(4,596)	(4,201)
Other non-current assets and liabilities	(399)	(20)
Net cash provided by operating activities	111,020	15,001
Cash flows from investing activities:
Purchase of specialty rental assets	(111,785)	(24,261)
Other investing activities	(34,093)
Purchase of property, plant, and equipment	(5,624)	(650)
Proceeds from the sale of specialty rental assets and other property, plant and equipment	606
Net cash used in investing activities	(150,896)	(24,911)
Cash flows from financing activities:
Principal payments on finance and finance lease obligations	(1,200)	(1,184)
Principal payments on borrowings from ABL Facility	(81,300)	(51,000)
Repayment of 2025 Senior Secured Notes		(181,446)
Proceeds from borrowings on ABL Facility	121,300	75,000
Distributions paid to noncontrolling interest	(120)	(126)
Proceeds from issuance of Common Stock from exercise of options	207
Payment of deferred financing costs	(231)
Payment of debt extinguishment premium costs		(1,814)
Taxes paid related to net share settlement of equity awards	(1,046)	(973)
Net cash provided by (used in) financing activities	37,610	(161,543)
Effect of exchange rate changes on cash and cash equivalents	(14)	22
Net decrease in cash and cash equivalents	(2,280)	(171,431)
Cash and cash equivalents - beginning of period	8,348	190,668
Cash and cash equivalents - end of period	6,068	19,237
Supplemental Cash Flow Information:
Decrease in accrued distributions to noncontrolling interest		11
Decrease in accrued capital expenditures		461
Decrease in accrued proceeds from the sale of specialty rental assets	118
Non-cash investing and financing activity:
Non-cash change in accrued capital expenditures	(23,759)
Non-cash change in accrued deferred financing costs	(529)
Non-cash change in finance lease terminations		110
Non-cash change in finance lease obligations	(2,093)	(2,738)
Non-cash change in accrual of tax withholdings for net share settlement of equity awards	(115)	$ (1,263)
Non-cash change in accrued distributions to noncontrolling interest	$ (16)

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 6,068	$ 8,348
Accounts receivable, less allowance for credit losses of $438 and $232, respectively	50,428	56,200
Prepaid expenses and other assets	7,374	8,790
Total current assets	63,870	73,338
Specialty rental assets, net	434,683	332,406
Other property, plant and equipment, net	42,061	35,754
Operating lease right-of-use assets, net	3,506	6,544
Goodwill	41,038	41,038
Other intangible assets, net	32,601	39,332
Deferred financing costs revolver, net	2,127	1,793
Other non-current assets	34,304
Total assets	654,190	530,205
Current liabilities:
Accounts payable	47,406	44,393
Accrued liabilities	24,356	22,475
Deferred revenue and customer deposits	21,252	9,282
Current portion of operating lease obligations	3,303	5,807
Current portion of finance lease and other financing obligations (Note 8)	2,539	2,086
Total current liabilities	98,856	84,043
Other liabilities:
Revolving credit facility (Note 8)	40,000
Long-term finance lease and other financing obligations	2,115	1,675
Long-term operating lease obligations	323	1,128
Deferred revenue and customer deposits	100,210	9,292
Deferred tax liability	40,134	42,312
Asset retirement obligations	2,765	2,695
Total liabilities	284,403	141,145
Commitments and contingencies (Note 11)
Stockholders' equity:
Common Stock, $0.0001 par, 400,000,000 authorized, 113,582,373 issued and 100,285,443 outstanding as of June 30, 2026 and 113,094,172 issued and 99,797,242 outstanding as of December 31, 2025.	10	10
Common Stock in treasury at cost, 13,296,930 shares as of June 30, 2026 and 13,296,930 shares as of December 31, 2025.	(57,304)	(57,304)
Additional paid-in-capital	157,112	154,090
Accumulated other comprehensive loss	(3,014)	(2,798)
Accumulated earnings	273,305	295,259
Total stockholders' equity attributable to Target Hospitality Corp. stockholders	370,109	389,257
Noncontrolling interest in consolidated subsidiaries	(322)	(197)
Total stockholders' equity	369,787	389,060
Total liabilities and stockholders' equity	$ 654,190	$ 530,205