What caused the swing from a $3,000 net income in Q2 2024 to a $18,000 net loss in Q2 2025?

What drove the swing from a modest $3 k profit to an $18 k loss?

The 2025 Q2 filing shows revenue of only $40 k (with $26 k coming from rental income), a level that barely covers the company’s fixed cost base. The press‑release does not detail the expense side, but the $21 k swing implies a substantial increase in operating or non‑operating charges. Typical drivers in a small‑cap energy‑service firm include: higher lease‑or‑facility costs, a sharp rise in depreciation/amortization (perhaps due to an asset impairment or a new capital‑intensive project), higher interest expense on newly‑issued debt, or a one‑time write‑off of inventory or receivables. In other words, the cost structure blew out relative to the modest revenue, turning a modest profit in Q2‑24 into an $18 k loss in Q2‑25.

Trading implications

The earnings miss and the negative sentiment (‑30) suggest the market will continue to price in the higher cost structure. Technicals show the stock (GBR) trading below its 20‑day moving average with the 50‑day SMA acting as resistance; the daily RSI is near 40, indicating modest downside pressure but also room for a bounce if the company can demonstrate cost control. For a short‑term trader, the risk‑reward leans toward a short or at‑least a neutral stance (e.g., sell‑covered call) until the next earnings release. If you have a long position, consider tightening stops around the recent swing‑low and watch for any guidance on expense reductions. If the company can articulate a concrete expense‑reduction plan (e.g., renegotiated lease terms or asset disposals) in its next filing, a short‑term bounce is possible, but the default bias is to stay defensive.