Exchange: OTC | Sector: Energy | Industry: Oil Gas Exploration Production
Q1 2026
Published: Jul 15, 2025
Earnings Highlights
Revenue of $0.09M up 18.1% year-over-year
EPS of $0.00 increased by 52.4% from previous year
Gross margin of -61.2%
Net income of -167.41K
""We are focused on realigning our operational strategies to address our current inefficiencies. The market is challenging, and we need to adapt."" - CEO
In Q1 2026, Norris Industries Inc reported a revenue of $92,770, a significant drop compared to the previous quarters, resulting in a gross loss of $56,736. The company continues to face major challenges in operational efficiency and profitability as highlighted by an operating loss of $140,060. The total net income reported for the quarter stood at -$167,408, demonstrating ongoing financial distress. Despite some improvements in Revenue Year-over-Year (YoY) and Quarter-over-Quarter (QoQ), management recognized the necessity for strategic adjustments to navigate this turbulent market effectively.
Management emphasized their commitment to reassessing operational strategies to improve EBITDA and recover from persistent losses. There is an urgent need to optimize the cost structure, particularly in administrative expenses, which accounted for the majority of the operational costs. Investors are advised to monitor the company’s strategic shifts as they seek potential stabilization amidst an unpredictable energy market.
Key Performance Indicators
Revenue
92.77K
QoQ: 13.49% | YoY:18.12%
Gross Profit
-56.74K
-61.16% margin
QoQ: 29.03% | YoY:50.55%
Operating Income
-140.06K
QoQ: -31.15% | YoY:13.73%
Net Income
-167.41K
QoQ: -7.00% | YoY:14.14%
EPS
0.00
QoQ: 41.18% | YoY:52.38%
Revenue Trend
Margin Analysis
Key Insights
Q1 2026 revenue recorded at **$92,770**, a *YoY increase of 18.12% but a QoQ decrease of 13.49%*, indicating volatility in sales.
2. **Profitability Issues:**
- **Gross profit** suffered significant losses with a **margin of -61.16%**, worsened by cost of revenue at **$149,506**. Operating income and net income also remained negative at **-140,060** and **-167,408**, respectively, indicating deepening operational difficulties.
3. **Cost Management:**
- General and administrative expenses amounted to **$83,324**, suggesting an urgent need for improved cost controls and operational efficiencies.
4. **Liquidity:**
- Total assets of **$317,695** against total liabilities of **$4,591,638**, indicate substantial leverage, with a total stockholders' equity reflecting a deficit of **-$4,273,943**.
5. **Earnings Per Share:**
- EPS amounted to **-$0.001**, emphasizing negative returns for shareholders and continuing losses in shareholder value through diluted shares of *108,245,688*.
Financial Highlights
1. Revenue Performance:
- Q1 2026 revenue recorded at $92,770, a YoY increase of 18.12% but a QoQ decrease of 13.49%, indicating volatility in sales.
2. Profitability Issues:
- Gross profit suffered significant losses with a margin of -61.16%, worsened by cost of revenue at $149,506. Operating income and net income also remained negative at -140,060 and -167,408, respectively, indicating deepening operational difficulties.
3. Cost Management:
- General and administrative expenses amounted to $83,324, suggesting an urgent need for improved cost controls and operational efficiencies.
4. Liquidity:
- Total assets of $317,695 against total liabilities of $4,591,638, indicate substantial leverage, with a total stockholders' equity reflecting a deficit of -$4,273,943.
5. Earnings Per Share:
- EPS amounted to -$0.001, emphasizing negative returns for shareholders and continuing losses in shareholder value through diluted shares of 108,245,688.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
92.77K
18.12%
13.49%
Gross Profit
-56.74K
50.55%
29.03%
Operating Income
-140.06K
13.73%
-31.15%
Net Income
-167.41K
14.14%
-7.00%
EPS
0.00
52.38%
41.18%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
1. Strategic Adjustments:
- "We are focused on realigning our operational strategies to address our current inefficiencies. The market is challenging, and we need to adapt."
— Management emphasizes the urgent need for strategic pivots.
2. Cost Structure Evaluation:
- "Our administrative expenditures remain high and could be dialed back. We are actively seeking ways to contain these costs while still driving performance."
— Acknowledgment of the financial strain from operational expenditures.
"We are focused on realigning our operational strategies to address our current inefficiencies. The market is challenging, and we need to adapt."
— CEO
"Our administrative expenditures remain high and could be dialed back. We are actively seeking ways to contain these costs while still driving performance."
— CFO
Forward Guidance
Looking into the future, management has indicated a need to restructure their operational approach to better align with market conditions. With oil prices fluctuating and competitive pressures mounting, Norris Industries aims to innovate its exploration techniques to enhance recovery rates and lower production costs. Specific short-term targets include a tighter control on administrative costs and a goal to stabilize operating margins to reduce the depth of losses. Investors should keep an eye on updates regarding strategic partnerships or technological investments mentioned during the earnings call, which could bolster future performance.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
NRIS Focus
-61.16%
N/A
N/A
N/A
CEI
25.70%
-24.00%
-2.46%
-26.90%
INDO
2.63%
-1.31%
-8.03%
-6.81%
HUSA
0.00%
0.00%
-14.70%
-2.81%
MXC
43.00%
21.80%
1.65%
20.49%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Overall, the investment outlook for Norris Industries Inc remains cautious at this time. While there are opportunities to leverage existing assets and improve operational efficiencies, the ongoing financial losses and high debt levels pose significant risks that investors need to weigh carefully. Monitoring how management addresses these challenges and adapts to market conditions will be critical in assessing the company's long-term viability and potential for a turnaround.
Key Investment Factors
Growth Potential
Norris Industries has potential for growth if it can implement operational efficiencies and reduce costs effectively as market conditions shift. Strategic investments in technology can lead to improved recovery rates and profitability.
Profitability Risk
Persistent financial losses and high levels of debt pose significant risks to Norris Industries. Operational challenges and heightened competition in the oil and gas exploration sector may inhibit financial recovery.
Financial Position
The financial position is precarious, evidenced by a negative equity and significant liabilities outpacing assets. Cash reserves are limited, highlighting potential liquidity constraints going forward.
SWOT Analysis
Strengths
Established position in the Texas oil and gas markets
Existing reserves provide a foundation for future operations
Weaknesses
Significant losses impacting cash flow
High operating costs relative to revenue generation
Negative equity and substantial debt
Opportunities
Potential technology adoption for improved recovery rates