Talos Energy Inc. Common Stock (TALO)

FairStock Score: 42/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Talos is a commodity producer, and commodity producers rarely have durable moats; they sell oil and gas at market prices. The latest evidence is mixed but intriguing. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $664.8M and net income was $149.7M, or diluted EPS $0.88. That is a sharp swing from fiscal Q2 2025, ended 2025-06-30, when revenue was $424.7M and net loss was $185.9M, or diluted EPS -$1.05. Yet full fiscal year 2025, ended 2025-12-31, produced revenue of $1.8B and a net loss of $494.3M, or diluted EPS -$2.82. Fiscal 2024 was also a loss of $76.4M, while fiscal 2023 earned $187.3M. This is why FairStock labels it a TURNAROUND: a loss in the latest year after earlier profits. Financial health is the crux. Trailing free cash flow is $790.6M, a 27.0% FCF yield against the $2.9B market cap, and FairStock's EV/EBITDA is 4.73. Piotroski F-Score is 8/9, which says recent accounting signals improved. But Altman Z-Score is 0.59, debt-to-equity is 0.66, ROCE is just 0.37%, and ROE is -17.82%; those are not comforting. At the 2026-10-13 close of $17.56, P/B is 1.44 and P/E is -7.44. Graham would demand a margin of safety; Buffett would ask whether the cash flow is durable. A 27% FCF yield is eye-catching, but one good quarter and a low EV/EBITDA do not prove a moat. I would want several quarters of positive earnings and debt reduction before treating the cheapness as real.

In plain English: Talos Energy explores for and produces oil and natural gas, mainly in the United States and Mexico, and also works on carbon capture. The business is risky and up-and-down: it lost money in fiscal 2025 and 2024, but it earned a profit in the latest quarter. At the 2026-10-13 close of $17.56, the price looks low compared with the cash the business generated over the past year and its accounting value, but uneven profits and high financial risk mean it is not clearly safe.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer