Liberty Energy Q3 Revenue Beats but Margins Miss
Liberty Energy reported $1.20B in Q3 revenue, beating $1.18B estimates but missing on adjusted EBITDA margin due to cost inflation. The CFO sold approximately 20,000 shares across five consecutive mon
Liberty Energy Q3 Revenue Beats but Margins Miss
NEW YORK, October 28 —
Revenue grew at Liberty Energy Inc. (LBRT), but the 26.3% gain to $1.20 billion in Q3 2026 came with a cost: adjusted EBITDA missed estimates by 4.8%, marking the first EPS miss in at least four quarters, and the CFO has sold shares in five consecutive months at prices all above where the stock trades today.
- Q3 revenue $1.20B, +26.3% YoY, beat $1.18B estimate; adjusted EPS $0.06 missed $0.07 consensus; first miss in four quarters.
- Adjusted EBITDA $141.6M missed $148.8M estimate by 4.8%; trailing FCF is -$618M against $1.60B debt and $120M cash.
- CFO Michael Stock sold approximately 19,998 shares across five transactions, August through October, all above the current $17.61 stock price.
Cost Inflation Is Eating the Revenue Beat
Liberty Energy provides hydraulic fracturing, the high-pressure pumping that unlocks oil and gas from shale formations, along with wireline services, proppant delivery, and field gas processing across major North American basins. The 26.3% revenue gain reflects genuine demand for the company's 40 active frac fleets. But per the company's Q3 8-K filing, CEO Ron Gusek cited "cost inflation headwinds" and drilling delays, and the numbers confirm it: operating margin reached only 1.6%, up from -0.3% a year ago, and EBITDA fell $7.2 million short of estimates. A power segment win reported in Q3 offers a richer margin avenue, but it has not yet moved the aggregate results.
Five Straight Months of CFO Selling
Per filings, CFO Michael Stock sold approximately 19,998 shares across five consecutive months from August through October, with prices ranging from $17.95 to $20.00. All five transactions settled above the current market price; no insider purchases were recorded in the same period. Insider selling alone is never dispositive, as executives sell for many personal reasons. But an unbroken five-month streak, with every tranche clearing more than today's level, adds pointed weight to a quarter where EPS missed for the first time in at least four periods. The CFO's visibility into capital spending and cash generation gives him a clearer read on the margin-recovery timeline than the outside market currently has.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| LBRT | $2.9B | 131.0x | -10.6% |
| PUMP | $953M | 32.7x | -31.9% |
| WHD | $4.5B | 17.7x | +55.1% |
| MGY | $7.3B | 8.5x | +14.7% |
| WTTR | $2.8B | 35.8x | +64.4% |
| MTDR | $7.4B | 5.9x | +49.3% |
A 131x Multiple Priced for Recovery That Hasn't Arrived
At 131x forward earnings, LBRT is priced for a margin recovery that Q3 actively resisted. The analyst consensus target of $27 against a current $17.61 implies 53% upside, but running those figures through a DCF model against -$618 million in trailing FCF requires heroic assumptions. Cost inflation and a $1.60 billion debt load narrow the runway before the balance sheet forces the issue. Watch EBITDA margin next quarter: a print above 11.8% signals the cost curve bending; anything flat or lower confirms the thesis has stalled. Run the free Liberty Energy Inc. deep-dive →
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Frequently Asked Questions
Liberty Energy Q3 earnings results
Liberty Energy reported Q3 revenue of $1.20B, beating the $1.18B estimate. However, adjusted EBITDA of $141.6M missed the $148.8M forecast by 4.8%, marking the first EPS miss in four quarters. Cost inflation and drilling delays pressured margins.
Did Liberty Energy CFO sell stock
Yes. CFO Michael Stock sold approximately 19,998 shares in five consecutive transactions from August through October 2026, with all executed above the current $17.61 stock price. No insider purchases occurred during the period.
What does Liberty Energy do
Liberty Energy provides hydraulic fracturing and wireline services, proppant delivery, and field gas processing across North American basins. The company operates 40 active frac fleets serving major shale producers.
Is Liberty Energy stock overvalued
The stock trades at 131x forward earnings with a $27 analyst price target implying 53% upside. However, the company's trailing free cash flow of -$618M and $1.60B debt suggest the margin recovery needed to justify that valuation has not yet materialized.
What is Liberty Energy's debt position
The company reported trailing free cash flow of -$618M against $1.60B in debt and only $120M in cash. This debt load limits financial flexibility as the company works through cost inflation pressures.
Liberty Energy posted Q3 2026 revenue of $1.20 billion — a 26.3% year-over-year gain that cleared Wall Street estimates — but adjusted EPS missed by a penny and EBITDA came in 4.8% below consensus, snapping a streak of three consecutive beats even as the CFO sold shares for the fifth straight month at prices now above the current stock price.