olivLaw · US equity research
Target Hospitality Corp. TH
Hotels, Rooming Houses, Camps & Other Lodging Places · SIC 7000 · Vertical: Hotels and lodging (SIC 70xx)
Target Hospitality is one of the largest vertically integrated providers of modular accommodation and hospitality services in North America, serving companies in natural resource development, critical minerals and data center infrastructure. In 2026 the company rapidly reoriented toward its Workforce Hospitality Solutions segment, securing multi-year high-value contracts that could change its revenue and margin profile.
At the close of 04 Nov 2026, Target Hospitality Corp. (TH) stock was 11.29 USD (−22.08% on the day), with market capitalisation 1.1 bn USD, beta 0.81, 52-week range 6.22–21.45 USD. Latest reported quarter (Q2 2026): revenue of 85.5 m USD (+38.7% YoY), net income of -9.0 m USD, diluted EPS -0.09 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 24.2
- oversold (≤ 30)
- Bollinger (20, 2)
- 11.37 – 19.33
- below the lower band · %B -0.01 · band width 51.8%
- SMA 50 / 200
- 17.78 / 14.85
- mixed trend
- MACD (12, 26, 9)
- -1.45 / -1.25
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −40.3% | −1.1% | −39.2 pp | — |
| 3 months | −28.4% | −0.5% | −27.9 pp | — |
| 6 months | −28.5% | +4.4% | −32.9 pp | — |
| Year to date | +40.9% | +12.3% | +28.6 pp | — |
| 1 year | +52.8% | +13.5% | +39.2 pp | +9.0% |
| 3 years | −17.3% | +76.4% | −93.7 pp | +11.8% |
| 5 years | +172.0% | +63.7% | +108.4 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 95.2 m | 83.7 m | 69.9 m | 61.6 m | 99.4 m | 89.8 m | 72.8 m | 85.5 m |
| Gross profit | 45.2 m | 37.0 m | 18.0 m | -328.0 k | 17.9 m | 7.1 m | 6.9 m | 15.8 m |
| SG&A | 13.3 m | 12.6 m | 14.8 m | 12.7 m | 12.9 m | 18.1 m | 14.6 m | 18.8 m |
| Operating income | 28.0 m | 20.8 m | -1.1 m | -16.9 m | 69.0 k | -16.8 m | -14.3 m | -7.5 m |
| Depreciation & amortisation | 18.0 m | 17.5 m | 17.6 m | 17.7 m | 18.5 m | 19.6 m | 19.6 m | 21.5 m |
| Interest expense | 5.0 m | — | 5.4 m | 871.0 k | 334.0 k | — | 601.0 k | 730.0 k |
| Pre-tax income | 24.2 m | 16.9 m | -7.8 m | -17.9 m | -389.0 k | -17.2 m | -15.2 m | -8.5 m |
| Income tax | 4.1 m | 4.3 m | -1.3 m | -2.9 m | 368.0 k | -2.2 m | -2.3 m | 473.0 k |
| Net income | 20.0 m | 12.5 m | -6.5 m | -14.9 m | -795.0 k | -14.9 m | -12.9 m | -9.0 m |
| Diluted EPS | 0.20 | 0.12 ≈ | -0.07 | -0.15 | -0.01 | -0.15 ≈ | -0.13 | -0.09 |
| Operating cash flow | 31.4 m ≈ | 30.6 m | 3.9 m | 11.1 m ≈ | 53.4 m ≈ | 5.7 m | 7.0 m | 104.0 m ≈ |
| Capex | — | — | 15.5 m | — | — | — | — | 7.8 m |
| Share repurchases | 1.1 m | 11.6 m | — | — | — | — | — | — |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 240.6 m | 321.1 m | 225.1 m | 291.3 m | 502.0 m | 563.6 m | 386.3 m | 320.6 m |
| Revenue YoY | +79.2% | +33.5% | −29.9% | +29.4% | +72.3% | +12.3% | −31.5% | −17.0% |
| Net income | 5.0 m | 12.0 m | -25.1 m | -4.6 m | 73.9 m | 173.7 m | 71.3 m | -37.1 m |
| Net income YoY | +405.2% | +141.6% | −309.9% | unavailable | unavailable | +134.9% | −59.0% | −152.1% |
| Diluted EPS | unavailable | 0.13 | -0.26 | -0.05 | 0.74 | 1.56 | 0.70 | -0.37 |
| Diluted EPS YoY | unavailable | unavailable | −300.0% | unavailable | unavailable | +110.8% | −55.1% | −152.9% |
| net % | 2.1% | 3.7% | -11.2% | -1.6% | 14.7% | 30.8% | 18.4% | -11.6% |
| Free cash flow | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 8.3 m USD
- Financial debt
- 2.1 m USD
- Net debt
- -6.3 m USD
- Equity
- 389.1 m USD
- Total assets
- 530.2 m USD
- Debt / equity
- 0.01x
- Current ratio
- 0.87x
- ROE
- -9.2%
- ROA
- -5.9%
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 225.1 m | 291.3 m | 502.0 m | 563.6 m | 386.3 m | 320.6 m | SEC (XBRL)· 11 Mar 2026verified |
| Gross profit | 57.2 m | 101.4 m | 247.1 m | 313.3 m | 178.2 m | 42.7 m | SEC (XBRL)· 11 Mar 2026verified |
| SG&A | 38.1 m | 46.5 m | 57.9 m | 56.1 m | 54.3 m | 58.5 m | SEC (XBRL)· 11 Mar 2026verified |
| Operating income | 4.1 m | 37.1 m | 174.4 m | 240.6 m | 108.8 m | -34.7 m | SEC (XBRL)· 11 Mar 2026verified |
| Depreciation & amortisation | 65.6 m | 70.5 m | 67.7 m | 84.0 m | 72.8 m | 73.4 m | SEC (XBRL)· 11 Mar 2026verified |
| EBITDA | 69.7 m ≈ | 107.6 m ≈ | 242.0 m ≈ | 324.6 m ≈ | 181.6 m ≈ | 38.6 m ≈ | SEC (XBRL)· 11 Mar 2026derived |
| Pre-tax income | -33.6 m | -2.7 m | 106.3 m | 224.8 m | 92.8 m | -43.2 m | SEC (XBRL)· 11 Mar 2026verified |
| Income tax | -8.5 m | 1.9 m | 32.4 m | 51.1 m | 21.4 m | -6.1 m | SEC (XBRL)· 11 Mar 2026verified |
| Net income | -25.1 m | -4.6 m | 73.9 m | 173.7 m | 71.3 m | -37.1 m | SEC (XBRL)· 11 Mar 2026verified |
| Diluted EPS | -0.26 | -0.05 | 0.74 | 1.56 | 0.70 | -0.37 | SEC (XBRL)· 11 Mar 2026verified |
| Weighted average diluted shares | 96.0 m | 96.6 m | 100.1 m | 105.3 m | 101.4 m | 99.5 m | SEC (XBRL)· 11 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 7.0 m | 23.4 m | 181.7 m | 103.9 m | 190.7 m | 8.3 m | SEC (XBRL)· 11 Mar 2026verified |
| Receivables | 28.2 m | 28.8 m | 42.2 m | 67.1 m | 49.3 m | 56.2 m | SEC (XBRL)· 11 Mar 2026verified |
| Inventories | 900.0 k | 1.6 m | 2.0 m | 2.1 m | 1.9 m | 2.1 m | SEC (XBRL)· 11 Mar 2026verified |
| Current assets | 43.6 m | 60.5 m | 236.4 m | 180.5 m | 249.3 m | 73.3 m | SEC (XBRL)· 11 Mar 2026verified |
| Property, plant & equipment, net | 311.5 m | 291.8 m | 357.1 m | 349.1 m | 320.9 m | — | SEC (XBRL)· 26 Mar 2025verified |
| Goodwill | 41.0 m | 41.0 m | 41.0 m | 41.0 m | 41.0 m | 41.0 m | SEC (XBRL)· 11 Mar 2026verified |
| Intangibles (excl. goodwill) | 103.1 m | 88.5 m | 75.2 m | 66.3 m | 52.8 m | 39.3 m | SEC (XBRL)· 11 Mar 2026verified |
| Total assets | 534.2 m | 513.4 m | 771.7 m | 694.4 m | 725.8 m | 530.2 m | SEC (XBRL)· 11 Mar 2026verified |
| Accounts payable | 10.6 m | 11.8 m | 17.6 m | 20.9 m | 16.2 m | 44.4 m | SEC (XBRL)· 11 Mar 2026verified |
| Short-term debt | 3.6 m | 729.0 k | 1.1 m | 1.4 m | 180.3 m | 2.1 m | SEC (XBRL)· 11 Mar 2026verified |
| Long-term debt | 391.8 m | 341.4 m | — | 178.1 m | — | — | SEC (XBRL)· 13 Mar 2024verified |
| Current liabilities | 45.5 m | 72.8 m | 190.9 m | 70.3 m | 233.4 m | 84.0 m | SEC (XBRL)· 11 Mar 2026verified |
| Total liabilities | 435.3 m | 416.1 m | 570.9 m | 317.0 m | 304.7 m | 141.1 m | SEC (XBRL)· 11 Mar 2026verified |
| Equity | 98.9 m † | 97.3 m | 200.8 m | 377.3 m | 421.1 m | 389.1 m | SEC (XBRL)· 11 Mar 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 46.8 m | 104.6 m | 305.6 m | 156.8 m | 151.7 m | 74.1 m | SEC (XBRL)· 11 Mar 2026verified |
| Investing cash flow | -10.9 m | -35.9 m | -140.2 m | -68.2 m | -28.8 m | -67.8 m | SEC (XBRL)· 11 Mar 2026verified |
| Financing cash flow | -35.7 m | -52.3 m | -7.1 m | -166.4 m | -36.1 m | -188.6 m | SEC (XBRL)· 11 Mar 2026verified |
| Share repurchases | 5.3 m | — | — | — | 33.5 m | — | SEC (XBRL)· 26 Mar 2025verified |
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 50.0% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 1.1 bn USD
Key indicators
Coverage and freshness
Score by group
50% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 2.50 – 6.50 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDA2.50 – 6.50 (Mid 4.18)16 companies used · median multiple 10.2x · quartiles 6.0x – 15.8xBYD, CHH, CNTY, CVEO, CZR, FLL, HLT, IHG, LVS, MGM, MLCO, PK, TNL, WH, WYNN, XHR
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 50.0% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | -8.6% | 8 (vs peers) | 21% |
| Net margin · Quality | -10.8% | 11 (vs peers) | 13% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | -13.9% | 0 (on a fixed band) | 17% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | -0.1x | 81 (vs peers) | 21% |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 0.6x | 0 (on a fixed band) | 8% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | 27.6x | 11 (vs peers) | 21% |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet58/100 · 2/3 factors with a value
- Growth· partial0/100 · 1/2 factors with a value
- Quality9/100 · 2/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partial11/100 · 1/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
TARGET HOSPITALITY CORP. (TH). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 320.6 m USD in 2025; YoY growth -17.0%; net margin -10.8%; ROE -9.8%; net debt/EBITDA -0.1x.
The estimated value range is 2.50–6.50 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 4.18 USD, the price of 11.29 USD leaves a potential of -63.0% (value / price − 1) and a margin of safety of -170.0% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 50.0% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net debt / EBITDA: -0.1x
What contradicts it
- ROIC: -8.6%
- Net margin: -10.8%
- Revenue CAGR 3Y: -13.9%
- Current ratio: 0.6x
- EV/EBITDA: 27.6x
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): FCF conversion, EPS CAGR 3Y, Interest coverage, P/E (TTM), FCF yield, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Hotels and lodging (SIC 70xx) · same major group (2-digit SIC) · compared with 29 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| HTHTH World Group Ltd | 154.3 bn | 218.4 | 41.5% | 20.1% | +10.5% | +9% / +37% |
| MARMarriott International Inc | 109.4 bn | 42.4 | — | 9.7% | +4.3% | +39% / +110% |
| HLTHilton Worldwide Holdings Inc. | 83.8 bn | 50.8 | — | 13.4% | +7.7% | +32% / +125% |
| IHGInterContinental Hotels Group PLC | 29.0 bn | 36.2 | — | 14.6% | +5.4% | +31% / +124% |
| LVSLas Vegas Sands Corp. | 25.5 bn | 16.7 | 262.8% | 11.8% | +15.2% | −40% / −12% |
| ATATAtour Lifestyle Holdings Limited | 14.5 bn | 63.7 | 50.5% | 16.6% | +41.0% | −9% / +97% |
| WYNNWynn Resorts, Limited | 8.5 bn | 19.7 | — | 6.1% | +0.1% | −36% / −2% |
| MGMMGM Resorts International | 8.3 bn | 12.7 | 26.8% | 3.9% | +1.7% | −7% / −17% |
| CZRCaesars Entertainment, Inc. | 6.0 bn | — | -15.1% | -4.5% | +2.1% | +26% / −34% |
| WHWyndham Hotels & Resorts, Inc. | 5.9 bn | 29.8 | 38.2% | 14.0% | +1.5% | +10% / +4% |
| MLCOMelco Resorts & Entertainment Limited | 5.7 bn | 30.6 | — | 3.6% | +11.3% | −48% / −33% |
| BYDBoyd Gaming Corp | 5.5 bn | 11.7 | 19.6% | 12.3% | +4.1% | −7% / +32% |
| CHHChoice Hotels International Inc | 5.4 bn | 26.7 | 146.5% | 12.7% | +0.8% | +32% / +9% |
| TNLTravel & Leisure Co. | 4.7 bn | 20.7 | — | 5.7% | +4.1% | +13% / +118% |
| PKPark Hotels & Resorts Inc. | 3.4 bn | — | -5.0% | -6.4% | −2.2% | +57% / +14% |
| HGVHilton Grand Vacations Inc. | 3.3 bn | 8.4 | 31.0% | 7.0% | +1.3% | +2% / +28% |
| SHOSunstone Hotel Investors, Inc. | 2.4 bn | 54.7 | 2.8% | 5.3% | +6.0% | +39% / +32% |
| PENNPenn Entertainment, Inc. | 2.3 bn | — | -37.4% | -12.7% | +5.8% | +18% / −29% |
| XHRXenia Hotels & Resorts, Inc. | 2.0 bn | 628.9 | 0.3% | 0.3% | +3.8% | +57% / +79% |
| MCRIMonarch Casino & Resort, Inc. | 2.0 bn | 17.9 | 20.4% | 20.4% | +4.4% | +17% / +80% |
| THTarget Hospitality Corp. | 1.1 bn | — | -9.8% | -10.8% | −17.0% | +53% / −17% |
| BALYBally’s Corporation | 680.3 m | — | — | — | +0.1% | −23% / unavailable |
| CVEOCiveo Corp | 360.4 m | — | -4.7% | -1.1% | −6.3% | +56% / +60% |
| FLLFull House Resorts Inc | 29.1 m | — | -936.4% | -12.1% | +3.5% | −70% / −84% |
| CNTYCentury Casinos, Inc. | 16.9 m | — | — | -9.6% | −0.5% | −61% / −86% |
1- and 3-year price returns: for TH from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Target Hospitality is one of the largest vertically integrated providers of modular accommodation and hospitality services in North America, serving companies in natural resource development, critical minerals and data center infrastructure. In 2026 the company rapidly reoriented toward its Workforce Hospitality Solutions segment, securing multi-year high-value contracts that could change its revenue and margin profile.
SWOT
Strengths
- A vertically integrated network, from design and construction to community operation and hospitality services.
- Reusable modular assets that can be redeployed across segments and regions, allowing rapid redistribution of capacity.
- Strengthened liquidity through the new credit facility, which provides flexibility for executing contracts.
Weaknesses
- High concentration of revenue in a few large customers, which increases exposure to delays or lost contracts.
- Construction revenue carries lower margins than the former PCC contract, which reduced profitability.
- Lower occupancy in the HFS – South segment reduced revenue in the second quarter of 2026.
Opportunities
- WHS contracts awarded in 2026 could raise revenue and margins as communities come into operation.
- The expanded commercial pipeline for data centers and energy could generate new multi-year contracts.
- The Target Hyper/Scale platform could allow rapid customization of solutions for new markets.
Threats
- Construction delays or customer project delays could postpone expected revenue.
- Changes in government policy or cancellation of contracts for convenience could reduce demand.
- Competitive pressure and rising workforce costs could compress margins.
Risks
- Customer concentrationhigh
A small number of customers generates a major part of revenue, and the loss of one contract could seriously affect results.
- Execution of new contractshigh
Ramp-up of WHS contracts and completion of communities on schedule is uncertain, and delays could affect revenue and margins.
- Large capital expendituresmedium
Planned capital investments for 2026 are significant, and if financing or cash flow does not support the plan, financial flexibility could be limited.
- Government policymedium
Government contracts can be terminated for convenience or depend on annual budgets, which can cause sudden revenue reductions.
- Net lossesmedium
The company reported net losses in 2025 and in the second quarter of 2026, and a return to profitability depends on margin improvement.
Investment thesis
What would need to be true (bull case)
- If the new WHS contracts are executed on time, revenue and adjusted EBITDA growth could confirm the advantage of vertical integration and the modular network.
- The new credit facility could provide financial room to accept additional contracts from the expanded data center and energy pipeline.
- Rising customer advance payments could support short-term cash flows if the trend is maintained.
What would break the thesis
- Dependence on a few large customers could leave revenue vulnerable to delays or cancellations.
- Construction contracts carry lower margins, and if their share grows, profitability could remain below past levels.
- If demand in the HFS – South segment does not recover, revenue from that area could continue to decline.
What to watch
- Delivery against the 2026 outlook for revenue and adjusted EBITDA2026
- Pace at which WHS communities and new contracts enter operationQ3 2026
- Trend in occupancy in the HFS – South segmentQ3 2026
- Level of capital expenditures and use of the new credit facilitynext 10-Q
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Target Hospitality, initially founded in 1978 and operating as a specialty rental and hospitality services company since 2006, provides turnkey solutions to customers: site design, construction, operations, security, housekeeping, catering and concierge services. Its network includes 29 communities across the US and Canada, with 16,991 beds at the end of 2025, and it also operates 2 communities it neither owns nor leases. The 'Target 12' model focuses on customers' workforce outside working hours, and the company states that most services are delivered directly by its own staff.
Revenue in 2025 came mainly from specialty rental integrated with hospitality services (about 58.5%), from leasing of lodging facilities (14.3%) and from construction fee income (27.2%). Key customers are companies in natural resource development, critical minerals, data center infrastructure and a U.S. government contractor, and concentration is high: five customers accounted for about 63% of revenue.
In 2025 the company set up the Workforce Hospitality Solutions (WHS) segment following contracts with Lithium Nevada, a data center community contract and a power community contract. Since then further contract awards have been added, making WHS the main growth driver of the company.
Segments
Government
The Government segment includes the DIPC community in Dilley, Texas, operating under a contract with a fixed minimum revenue regardless of occupancy that can be cancelled for convenience on prior notice. The PCC contract was terminated in February 2025 and its assets were reactivated for DIPC, which reduced segment revenue.
HFS – South
The HFS – South segment covers the company's community network in the southern US and is affected by lower occupancy. In the second quarter of 2026 its revenue declined, which the company attributed to lower utilization, and this trend could affect results if it does not improve.
Market context
The specialty accommodation market for workforces in extractive and infrastructure industries depends on available infrastructure, customers' capital spending and the size of rotational workforces. Demand from data centers and power generation grows with cloud and artificial intelligence expansion, but depends on projects with timelines that can be postponed.
The company says it is at the early stage of a multi-decade investment cycle in data centers, power generation and other critical infrastructure, with geographically diverse demand across North America. However, the pace of this demand depends on customers' capital decisions, which can vary.
Trends
- Demand for artificial intelligence and energy infrastructuretailwind
The expansion of data centers and energy projects in remote areas creates a need for quickly deployable accommodation, and recently signed WHS contracts could support revenue growth.
- Dependence on a small number of customersheadwind
Customer concentration remains high, and the loss of a major customer or a delay in a project could significantly reduce revenue.
- Improved liquidity and financingtailwind
The new asset-based revolving credit facility closed in July 2026 could provide flexibility to fund investments in new contracts.
- Immigration policy and government budgetsmixed
Demand in the Government segment depends on federal immigration policy and budgets, and contracts can be cancelled or adjusted, which creates uncertainty.
Competitive position
The company competes with national, regional and local specialty accommodation operators, on the basis of location, cost, quality and range of services, design and construction experience and reputation. Some competitors may have larger market share, greater pricing flexibility or superior financial resources, which can put pressure on margins.
The company's advantage lies in its vertically integrated network, which covers everything from site identification to community operation, and in its ability to redeploy modular assets between customers and regions. Competitive pressure could increase if other providers offer more attractive innovative solutions to customers.
- National, regional and local specialty accommodation operators
The sources do not name these competitors, but describe pressure from companies with larger market share or greater resources.
- Temporary worker lodge providers
These providers often operate smaller facilities without integrated services and compete on short-term contracts.
- Rig housing operators
They compete for accommodation of drilling crews, where contracts are usually project-based or short-term.
- Other providers for data center and power infrastructure projects
They could offer alternative workforce solutions for infrastructure projects, and their entry could affect pricing.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Key findings on SerbiaEuropean Western Balkans (RS, EN) · 05 Nov 2026 · EN
- Russian state-linked hackers target iPhone, Android devices in zero-click espionage campaignThe Record (Recorded Future) · 05 Nov 2026 · EN
- We're raising our price target on Cardinal Health after another stellar quarter of profitsCNBC — Top News · 05 Nov 2026 · EN
- Camp Snap made a smaller kid-friendly version of its retro digital camcorderThe Verge · 05 Nov 2026 · EN
- Key findings on MontenegroEuropean Western Balkans (RS, EN) · 05 Nov 2026 · EN
- An Inflammation-Responsive Hydrogel with Targeted Microglial Delivery of Eupatilin-Loaded Liposomes Orchestrates Immunomodulation for Spinal Cord Injury RepairACS Nano · 05 Nov 2026 · EN
- Closing the Identity Gap at the Service DeskBleepingComputer · 05 Nov 2026 · EN
- Russian Phishing Drones Target Kyiv With Malware QR-Codes in Pro-Ukraine PamphletsKyiv Post · 05 Nov 2026 · EN
- Secret Service Files: When the Victim Is Branded a PerpetratorHungary Today (HU, EN) · 05 Nov 2026 · EN
- Birth rate hits lowest level since 1950: why has number of newborns in Azerbaijan fallen by 42% in 10 years?JAMnews (GE, EN) · 05 Nov 2026 · EN
- UK and US condemn ‘cruel’ second jail term handed to Hong Kong activist Joshua WongThe Guardian World · 05 Nov 2026 · EN
- Turkey sets $100 bln wind and solar expansion target for 2040Turkish Minute (TR, EN, exil) · 05 Nov 2026 · EN
- Georgian opposition party Droa declared ‘undesirable’ in RussiaOC Media (GE, EN) · 05 Nov 2026 · EN
- Interactive: Tracking negotiating texts at the COP31 climate summitCarbon Brief · 05 Nov 2026 · EN
- Donors pledge $400 million for education in crises despite aid cutsThe Straits Times — Asia · 05 Nov 2026 · EN
- Patria and the Finnish Defence Forces demonstrate autonomous systems operating at sea and in the airEuropean Defence Review · 05 Nov 2026 · RO
- COP31 Briefing: What to expect from the Antalya climate summit?Climate Home News · 05 Nov 2026 · EN
- Chase Travel's The Edit to add 10,000 vacation homes and premium perks — here's what to knowThe Points Guy · 05 Nov 2026 · EN
- Israeli defense company says this trigger is programmed to shoot dronesDefense News (US, EN) · 05 Nov 2026 · EN
- Trump: Sen. Sullivan should get votes cast for Alaska's other SullivanAxios · 05 Nov 2026 · EN
SEC filings
- Current report09 Sept 2026Other events · Financial statements and exhibits
- Current report01 Sept 2026Regulation FD disclosure
- Current report26 Aug 2026Regulation FD disclosure · Other events · Financial statements and exhibits
- Quarterly report10 Aug 2026
- Current report10 Aug 2026Results of operations · Financial statements and exhibits
- Current report05 Aug 2026Departure or appointment of officers · Financial statements and exhibits
- Current report27 Jul 2026Material agreement · Creation of a direct financial obligation · Other events · Financial statements and exhibits
- Current report28 May 2026Other events · Financial statements and exhibits
- Current report21 May 2026Shareholder vote · Other events · Financial statements and exhibits
- Quarterly report11 May 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Target Hospitality Corp. · 11 Mar 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Target Hospitality Corp. · 10 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Target Hospitality Corp. · 10 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.