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what it is
Target Hospitality runs 16,843 beds across 26 communities for workers who need housing and support near remote projects.
how it gets paid
Last year Target Hospitality made $275M in revenue. workforce housing communities was the main engine at $175M, or 64% of sales.
why it's growing
Revenue grew 3.4% last year. Revenue was up 120% vs. prior year. Gross margin held at 17.7%.
what just happened
The latest quarter posted $201M of revenue, but EPS was -$0.22.
At a glance
B balance sheet — gets the job done, barely
25/100 earnings predictability — expect surprises
19.3% return on capital — nothing to write home about
$0.70 fy2024 eps est
$386M fy2024 rev est
xvary composite: 39/100 — weak
What they do
Target Hospitality runs 16,843 beds across 26 communities for workers who need housing and support near remote projects.
You are buying 16,843 beds across 26 communities, run by 770 employees. That scale is hard to copy fast. Multi-year committed contracts mean revenue is booked for years, not nights. The bundle includes food, laundry, security, logistics, and recreation, so your customer replaces 5 services at once if they leave.
How they make money
$275M
annual revenue · their business grew +3.4% last year
workforce housing communities
$175M
food service management
$40M
logistics and security
$30M
laundry and concierge
$20M
recreation and other services
$10M
The products that matter
remote-site accommodations
Workforce Housing Solutions
$90M disclosed revenue · +7.3%
This line is the most direct read on bed demand. The current snapshot ties it to $89.78M in the latest quarter and growth from a year ago. If energy, mining, or infrastructure projects slow, this is where you feel it first.
housing demand
food, laundry, and site support
Hospitality & Facilities Services
$185M disclosed revenue · +1.2%
This segment matters because clients are not just renting beds. They are outsourcing camp operations. That makes replacement harder once a site is running, but it also ties results to occupancy staying high.
bundled services
future awards, not booked revenue
20,000-bed pipeline
20,000 beds · $129M recent award
This is the forward narrative in one box. Pipeline is potential. The $129M agreement is proof. You need more proof than potential if you want to believe the 31.5% revenue decline was the low point rather than the trend.
the bet
Key numbers
$275M
annual revenue
At $275M, this is a small business. That matters because one contract can move the year.
16,843
beds
16,843 beds is the physical base behind the revenue. Empty beds mean empty cash.
12.6%
operating margin
Operating margin → profit after running the business → negative means the company lost money on every $100 of sales.
19.3%
return on capital
Return on capital → profit from money tied up in the business → 19.3% says the asset base still earns real returns.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 4 — safer than 20% of stocks
- price stability 5 / 100
- long-term debt $4M (0% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for TH right now.
source: institutional data · return history unavailable
What just happened
missed estimates
The latest quarter posted $201M of revenue, but EPS was -$0.22.
Revenue was up 120% vs. prior year. Gross margin held at 17.7%, so the spread is there, but the bottom line is still red.
$201M
revenue
-$0.22
eps
17.7%
gross margin
the number that mattered
The 17.7% gross margin mattered most because it shows the core business still earns a spread, even with EPS at -$0.22.
source: company earnings report, 2026
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What could go wrong
TH's risk profile is unusually concentrated for a company this size: policy decisions, a few big contracts, and utilization levels can each overwhelm the comfort you get from only $4M of long-term debt.
med
government contract concentration
The current snapshot already points to migrant-related government housing as material exposure. It also says a policy change could erase roughly one-third of annual revenue. When one policy bucket can do that, you do not own broad diversification. You own renewal risk.
impact: revenue can reset lower fast if those contracts roll off
med
pipeline optimism vs signed economics
A 20,000-bed pipeline sounds big because it is big. It is also not booked revenue. If conversion slows, investors are left valuing potential while the reported top line still reflects last year's 31.5% decline.
impact: the forward narrative weakens before the income statement catches up
med
margin pressure after a clean revenue beat
The latest quarter beat estimates by 4.6%, but management still flagged margin pressure. That is the uncomfortable setup where activity improves but profitability does not scale with it. Small-cap stocks do not get much patience for that.
impact: earnings can disappoint even when revenue looks fine
med
thin disclosure bridge in the current dataset
The segment figures shown here add to $275M against a $386M company revenue total, and holder detail is thin. That does not make the business worse. It does mean you should demand more proof before treating pipeline commentary like a finished turnaround.
impact: analysis confidence stays below the headline confidence
Here is the kill criterion in plain language: if contract wins do not start showing up as stable revenue and better margins, the balance sheet alone will not rescue the thesis.
source: institutional data · regulatory filings · risk analysis
Pay attention to
contract
$129M multi-year agreement
This is the clearest proof beat on the page. If new awards keep arriving, the recovery case stays alive. If they stop, last year's 31.5% revenue decline takes back control of the story.
pipeline
20,000-bed active pipeline
Big pipeline numbers get attention. Conversion is what pays you. You want to see signed beds become occupied sites, not just bigger opportunity language.
margin
17.7% gross margin and reported 46.9% operating margin
That spread is unusual enough to deserve follow-up. If future updates show pressure on either line, the market will care more about that than another modest revenue beat.
policy
government housing exposure
The current page already warns that policy change could erase about one-third of annual revenue. That is not a side risk. For TH, it is one of the main variables.
Analyst rankings
earnings predictability
25 / 100
Low predictability. In human-speak, analysts do not expect smooth quarters here because one contract shift can redraw the whole picture.
risk rank
4
Risk rank: 4. Plain english: this screens as riskier than most stocks even with only $4M of long-term debt.
price stability
5 / 100
Price stability: 5 / 100. You should read that as a warning label, not a footnote.
source: institutional data
Institutional activity
institutional ownership data for TH is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$8
current price
n/a
target midpoint · n/a from current
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