Vivakor Swings to Positive Operating Income on 45% Gross Profit Jump

Vivakor reported a return to positive operating income in the second quarter, as gross profit jumped 45% on higher margins across its midstream operations.

Revenue for the three months ended June 30 rose 10% to $32.1 million, driven by expansion in crude oil supply and trading. That masked a decline in the company's Transportation & Logistics and Terminaling & Storage segments.

Gross profit hit $6.6 million, up from $4.6 million a year earlier. Gross margin widened to 20.7% from 15.7%, reflecting better profitability in midstream and the scaling of supply-and-trading activities, the company said.

Operating expenses fell 43% to $6.5 million, mostly on lower depreciation and amortization. Operating income was roughly $200,000, compared with a $6.8 million operating loss in the year-ago period. Net loss attributable to Vivakor narrowed to $2.8 million from $12.5 million.

“Second-quarter revenue increased 10%, gross profit increased 45%, and we generated positive operating income as we continued to expand our crude oil supply and trading activities while improving profitability across our midstream operations,” CEO James Ballengee said in a statement.

Supply and Trading has become a key growth driver, Ballengee said. The segment carried momentum into the second half, with recurring volume and commercial activity continuing to build on the VST platform. The company is also advancing opportunities across its remediation and commodities businesses.

For the first six months of the year, revenue was $51.6 million, down from $66.4 million in the prior-year period. The decline reflected lower revenue from Transportation & Logistics and Terminaling & Storage, including the July 2025 divestiture of two equipment subsidiaries. That was partly offset by Supply & Trading, which generated roughly $40 million in the 2026 period.

Despite lower consolidated revenue, gross profit rose 32% to $12.4 million. Operating expenses fell 35% to $14.6 million.

Vivakor provides crude oil storage, transportation, reuse and remediation services. The company holds interests in oilfield waste remediation facilities that, once operational, are expected to recover and reuse petroleum byproducts.

The stock traded at $0.55 in recent pre-market activity on Friday. Vivakor reports under the ticker VIVK on the Nasdaq. Its VST stock page shows an Alpha Score of 33 out of 100, with a Weak label in the Utilities sector.