Mammoth Energy (TUSK) Q2 2025 Earnings Transcript

Image source: The Motley Fool.

Date

Friday, August 8, 2025 at 11 a.m. ET

Call participants

Chief Financial Officer — Mark Layton

Chief Operating Officer — Bernie Lancaster

Director of Investor Relations — Ken Denard

Need a quote from a Motley Fool analyst? Email pr@fool.com

Takeaways

Total revenue-- $16.4 million in total revenue from continuing operations for Q2 2025, primarily driven by growth in rental services, infrastructure services, and natural sand proppant services.

Net loss-- Net loss from continuing operations (GAAP) was $35.7 million for Q2 2025, including a $31.7 million non-cash impairment charge related to the Northern White Sand mine on the Union Pacific Railroad.

Adjusted EBITDA--

Infrastructure services revenue-- Now comprised solely of engineering and fiber operations.

Rental services revenue-- $3.1 million in revenue for the rental services segment in Q2 2025, driven by expanded aviation rental.

Accommodation services revenue-- Approximately $1.8 million in revenue for the remote accommodation segment in Q2 2025, down from $2.7 million in Q2 2024, primarily from remote workforce operations in Northern Alberta, Canada.

Drilling services revenue-- $743,000 in revenue for the drilling segment in Q2 2025.

Cash position-- $127.3 million in unrestricted cash as of Q2 2025, with total cash of $157.3 million, including $30.1 million in restricted cash as of June 30, 2025.

Revolving credit facility-- $50 million current borrowing base as of post-Q2 2025, and no outstanding borrowings as of quarter-end.

Liquidity-- $194.8 million in total liquidity as of June 30, 2025, with the company remaining debt-free at quarter-end.

CapEx-- Primarily targeting aviation and equipment rental segment growth, with the full-year allocation raised to $42 million for continuing operations, excluding acquisitions, for 2025.

Portfolio transactions-- Three transactions in the quarter: $11.5 million acquisition of eight passenger aircraft (fully leased) in Q2 2025, purchase of aircraft engines and APUs, sale of three infrastructure subsidiaries for $108.7 million in Q2 2025, and divestiture of hydraulic fracturing equipment for $15 million.

Business segment evolution-- Company now operates across five segments: rental services, infrastructure services, natural sand proppant services, accommodation services, and drilling services, following completed divestitures and acquisitions.

Legal overhang-- Guidance for $2 million to $2.5 million in ongoing legal expenses related to Puerto Rico exit litigation through the second half of 2025.

Buyback policy-- CFO Layton said, "the board approved a buyback some time ago," but execution has not occurred due to being "blackout period that we've been in relative to those deals and reporting periods."

Adjusted EBITDA outlook-- Guidance for an adjusted EBITDA loss from continuing operations of $3 million to $4 million in the second half of 2025.

Cash burn outlook for discontinued operations-- Expected cash burn related to discontinued operations to range from $4 million to $5 million for the second half of 2025, mainly funded by asset sale proceeds.

Capital allocation returns-- CFO Layton described internal IRR targets for aviation investments at "25 to 35%," as stated on the Q2 2025 earnings call, aiming for a "two to three x multiple on invested capital."

Summary

Mammoth Energy Services(NASDAQ:TUSK) recorded a significant net loss in Q2 2025, primarily due to a $31.7 million non-cash impairment associated with its sand mine. The quarter was marked by three transformative transactions: a divestiture of key infrastructure and well-completion units generating $123.7 million, and strategic investment in aviation assets, now leased and providing incremental EBITDA from day one. The company's rental services and natural sand proppant segments saw double-digit percentage revenue increases, while the accommodations segment declined. Management issued formal guidance for continuing operations to remain adjusted EBITDA negative in the second half of 2025 and highlighted a large unrestricted cash position, total liquidity of $194.8 million as of June 30, 2025, and no debt post-quarter, positioning the company for further strategic capital deployment. Ongoing legal costs related to the Puerto Rico exit will continue to impact near-term profitability, with $2 million to $2.5 million in SG&A tied to that litigation expected in the second half of 2025.

CFO Layton confirmed aviation investments contributed immediate positive EBITDA in Q2 2025 and have set new targets for investment returns at internal rates of return of "25 to 35%."

The board’s share buyback authorization remains unused, with blackout periods caused by M&A activity preventing repurchases; per Layton, the blackout "generally lifts two full trading days after we report earnings."

Rental services segment expansion included acquisition of fully leased aircraft, engines, and APUs, with continued "pretty good deal flow" reinforcing the pursuit of high-return projects in this space.

The majority of sand proppant sales remain concentrated in Western Canada’s Montney Shale and are expected to stay weighted there based on available opportunities.

Management’s decision to maintain a debt-free balance sheet underscores flexibility, with leverage to be considered selectively on a case-by-case asset basis.

The restructuring has resulted in a company comprised of five focused segments, reflecting recent M&A activity and divestitures.

Industry glossary

APU (Auxiliary Power Unit): Onboard device in aviation providing energy for functions other than propulsion, such as powering electrical systems while the aircraft is on the ground.

Montney Shale: Large oil and gas producing geological formation in Western Canada, a significant end-market for sand proppant sales.

IRR (Internal Rate of Return): The annualized effective compounded return rate used to measure and compare the profitability of investments.

Full Conference Call Transcript

Ken Denard: Thank you, operator, and good morning, everyone. We appreciate you joining us for the Mammoth Energy Services, Inc. conference call to review 2025 second quarter results. This call is also being webcast and can be accessed through the audio link on the Events and Presentation page of the Investor Relations section at mammothenergy.com. Information reported on this call speaks only as of today, 08/08/2025. Please be advised that any time-sensitive information may no longer be accurate as of any subsequent date.

I would also like to remind you that statements made in today's discussion that are not historical facts, including statements of expectations or future events or future financial performance, are forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. We will be making forward-looking statements as part of today's call that, by their nature, are uncertain and the company's control. Actual results may differ materially. Please refer to the earnings press release that was issued today for our disclosure on forward-looking statements. These factors and other risks and uncertainties are described in detail in the company's filings with the Securities Exchange Commission.

Management may also refer to non-GAAP measures, including adjusted EBITDA. The definition of this non-GAAP measure and its reconciliation to the most directly comparable GAAP financial measures can be found at the end of our earnings release. Mammoth Energy Services, Inc. assumes no obligation to publicly update or revise any forward-looking statements. Now with that behind me, I'd like to turn the call over to Mammoth Energy's CFO, Mark Layton. Mark?

Mark Layton: Thank you, Ken. And good morning, everyone. We appreciate you taking the time to join us on the call this morning. I'll start by providing an update on our business, the current market environment, and our ongoing transformation before turning the call over to our Chief Operating Officer, Bernie Lancaster, to discuss our operations in greater detail. Then I'll return and provide our second quarter financial results and touch on our outlook before opening the call up for questions. The second quarter marked the beginning of a new chapter for Mammoth Energy Services, Inc. I'll go into more detail later, but revenue was $16.4 million in the second quarter and the net loss for the quarter was $35.7 million.

The net loss included a non-cash impairment charge of $31.7 million. We executed several transactions during the quarter that meaningfully changed our portfolio of services and positioned us favorably for the future. As we've mentioned in the past, we take great pride in our track record of successfully growing businesses organically within our enterprise and transacting at attractive multiples at great returns, which help us generate significant value for our shareholders. This quarter was no different. We had the opportunity to complete transactions that would unlock value, make the company more resilient, and establish a launch pad for future growth, and we delivered. It's safe to say that our transformation is well underway.

As part of this transformation, we are focused on driving returns through improved internal execution by prioritizing asset utilization, margin expansion, and capital efficiency across the portfolio. While macroeconomic uncertainty, including tariffs and demand volatility, continue to affect parts of the market, we remain proactive in repositioning Mammoth Energy Services, Inc. to perform through cycles. In the second quarter, this included strategic divestitures that sharpened our portfolio focus alongside the accretive acquisition of leased aircraft assets that strengthened and diversified our rental services segment. We will continue to evaluate strategic opportunities both within our existing platform and in adjacent markets that can unlock value while preserving balance sheet strength.

Mammoth Energy Services, Inc. may act as a buyer or seller or both depending on market dynamics, and where we see the most attractive returns. The second quarter was a great example of this. As we completed three transactions, one as a buyer, and two as a seller. As a buyer, we purchased eight small passenger aircraft in early April for approximately $11.5 million. These aircraft added meaningful scale and further diversified Mammoth's rental services fleet. Also, each of these planes are under leases with a commuter airline, so this purchase was immediately accretive to our financial results. In addition, we purchased two aircraft engines and one auxiliary power unit or APU during the second quarter.

The APU is currently on lease and we expect the two engines to be on lease beginning in the third quarter. A second APU was purchased at the beginning of the third quarter. In total, we have invested $25 million year to date to grow our aircraft portfolio. Our aviation investments this year have generated positive EBITDA from day one and we believe this is an area that will continue to compete for capital inside our portfolio. As a seller, our first transaction in April consisted of selling three infrastructure subsidiaries: Five Star Electric, Higher Power Electrical, and Python Equipment to Peak Utility Services Group for an aggregate sales price of $108.7 million.

I know we touched on this transaction on our last call, but this was a monumental transaction for Mammoth Energy Services, Inc. and demonstrated the ability for us to repeatedly grow businesses within our enterprise. As a reminder, we originally purchased these businesses for less than $10 million in February 2017. And over the past eight years, we significantly grew this business and increased revenue. Our second transaction as a seller occurred in June. Two of Mammoth's subsidiaries, Stingray Pressure Pumping, and Mammoth Equipment Leasing, entered an agreement to sell all of the equipment used in our hydraulic fracturing business to MGB Manufacturing for proceeds of $15 million. Formerly, this equipment was included in Mammoth's well completion services segment.

We view this transaction as a natural next step as we look to reposition our portfolio of services and emphasize that demand-driven approach to our operations. We are focused on building a better, more resilient company for the future and each of these transactions were completed with this goal in mind. We view the current market as being primed with opportunity and we intend to remain active M&A participants. To provide some context, we have evaluated and continue to evaluate several opportunities. Some of these M&A deals are verticals to businesses in our portfolio, some would expand our portfolio of services, and some would expand the footprint of existing operations.

We remain focused on investing in quality assets or companies at the right valuations to generate positive returns. I look forward to sharing additional positive developments with you in coming quarters. Now let me turn the call over to Bernie Lancaster, our Chief Operating Officer, to take you through our new business segments and the current state of Mammoth's operations.

Bernie Lancaster: Thanks, Mark. And thank you all for joining us this morning. It's a pleasure to speak with you for the first time in my role as COO. There is plenty to be excited about here at Mammoth Energy Services, Inc., and I look forward to helping pave the way forward. As Mark mentioned, our operating segments have changed quite a bit of late with the recent transactions pertaining to our legacy infrastructure, well completions, and rental services divisions. Today, our suite of services consists of five segments: rental services, infrastructure services, natural sand proppant services, accommodation services, and drilling services.

I'd like to spend a few moments discussing our new reporting segments and those that have recently experienced the greatest change. Rental services is a segment that has significantly grown through strategic investment in recent months. And we've meaningfully expanded our capabilities through the acquisition of aviation assets that Mark mentioned. To put our growth here in perspective, we grew the number of pieces of equipment rented to customers by 33% when compared to the same period a year ago. In addition to aviation, this segment also provides rental equipment used in oilfield and construction activities.

We have seen increased demand for equipment lists such as cranes for construction purposes and we expect our equipment to be utilized for its first construction work in the third quarter, which will further diversify our customer base. We see plenty of opportunities to invest in the rental services segment in the near term to both expand our current capabilities and add new attractive services that carry a robust demand profile. Turning to infrastructure services. After the sale of our transmission and distribution business in April, this segment is now comprised of two primary businesses: engineering and fiber. The engineering group continues to perform well and our fiber group is picking up additional work, which is positive.

We continue to see strong demand in each of these areas driven by the significant macro tailwinds around data centers, AI, and nuclear developments. In the second quarter, these businesses contributed approximately one-third of Mammoth's total revenue. We also maintain a robust backlog and remain excited about the prospects within the infrastructure space. Finally, I wanted to touch on our accommodation services. While our presentation of this segment and our financials is new, the services and facilities we provide have been steadily performing well behind the scenes. This segment has quietly generated favorable returns and consistently churned out positive adjusted EBITDA.

Our accommodation services primarily comprised of remote housing, kitchen and dining, and recreational service facilities for workers located away from readily available lodging in Northern Alberta, Canada. We do see notable demand in this area and may deploy additional growth capital in the future. To echo Mark's comments, we take great pride in the transactions we've completed and the changes we've made to the business. We're excited about the company's future and confident in the direction we're taking. Our operations have evolved dramatically in recent months, but we are pleased with the significant value that we've unlocked and the earnings potential of the company we are building. This transformation will make Mammoth more efficient, resilient, and positioned for growth.

We will continue to steer the company towards the areas with the greatest demand and utilization with a prudent focus on strategic capital management. I'll now turn the call back over to Mark to discuss the financials and our outlook in more detail before we open the call up for questions.

Mark Layton: Thank you, Bernie. As a reminder, the financial results I'll be discussing today reflect the sale of our distribution, transmission, and substation operations as well as the sale of our hydraulic fracturing business, both of which occurred during the second quarter. To demonstrate how we evaluate the business after these divestitures, we have reclassified these operations as discontinued operations and all financials, including prior period segment information, have been recast to conform with our segment composition as of 06/30/2025. A detailed breakdown of our results can be found in our earnings release and in our October once it is on file with the SEC.

Mammoth's total revenue from continuing operations during the 2025 came in at $16.4 million compared to $16 million in the same period a year ago. The increase in total revenue is primarily attributable to an increase in rental services, infrastructure services, and natural sand proppant services revenue. In response to the uncertainty that is present in the market, and the potential demand implications, we have proactively implemented various cost-cutting measures that should further support improvements in our overall financial performance in the coming quarters. Additionally, we will continue to evaluate strategic opportunities to deploy capital in ways that will be accretive and value-enhancing.

Our infrastructure services segment, which is now solely comprised of engineering and fiber, executed well and delivered strong results during the second quarter. Revenue for this segment was $5.4 million for the 2025, which represents a 20% increase compared to the 2024. We will continue to play to our strengths while continuing to strategically pursue opportunities within this sector. As we focus on the areas with the greatest potential for improved returns. Our Sands segment generated revenue of $5.4 million, which represents a 15% increase compared to the same quarter a year ago. Sales volumes were up in the second quarter driven by increased utilization.

However, this was partially offset by a 6% decline in pricing when compared to the 2024. We sold approximately 242,000 tons of sand in the 2025 at an average sales price of $21.41 per ton compared to 141,000 tons of sand at an average sales price of $22.73 per ton during the 2024. We continue to expect incremental demand to drive improved results in the sand segment in 2025. Rental services segment generated revenue of $3.1 million, which represents a 72% increase when compared to $1.8 million in the same quarter a year ago. This increase was largely driven by the incremental revenue contribution associated with our expanded aviation rental offerings.

On average, during the 2025, we had 296 pieces of equipment rented out to customers representing a 33% increase when compared to 223 pieces of equipment rented out to customers in the same quarter a year ago. A remote accommodation segment generated revenue of approximately $1.8 million compared to $2.7 million in the same quarter a year ago. Finally, our Drilling segment generated revenue of $743,000 compared to $736,000 in the same quarter a year ago. Returning to consolidated results. Our net loss from continuing operations for the second quarter was $35.7 million or a loss of $0.74 per diluted share compared to a net loss of $155.6 million or a loss of $3.24 per diluted share for the 2024.

The net loss in the 2025 included a non-cash charge of $31.7 million related to our Northern White Sand mine on the Union Pacific Railroad. As a reminder, 2024 included charges totaling $170.7 million in relation to the settlement agreement with PREPA. Adjusted EBITDA from continuing operations as defined and reconciled in our earnings release, was a loss of $2.8 million in the second quarter compared to a loss of $164.6 million for the 2024. Selling, general, and administrative expenses were $5.3 million in the 2025. Looking to the back half of the year, we expect to generate an adjusted EBITDA loss from continuing operations ranging from $3 million to $4 million based on the current portfolio of assets.

Further, we expect our cash burn related to discontinued operations to range from $4 million to $5 million. We plan to largely fund this from proceeds from the sale of underutilized assets. CapEx for the 2025 was $26.9 million. This was primarily related to our targeted growth and expansion efforts within the rental services segment. With regards to our 2025 CapEx budget, we are now allocating $42 million for continuing operations excluding acquisitions. This is primarily comprised of growth CapEx for our aviation and other equipment rental services. We will continue to monitor the uncertainty within our markets to determine potential impacts on our business and will adjust our spending accordingly.

Additionally, we see many opportunities to strategically allocate capital to grow our existing businesses that are generating the greatest returns. As Bernie mentioned, we've identified numerous opportunities to deploy capital specifically around equipment rentals and accommodations. We took the first step toward expanding these segments with the aviation purchases during the second quarter. There will continue to be various opportunities to invest back into our business in the near term to address demand as well as to purchase and upgrade equipment with our improved cash position. As of 06/30/2025, we had unrestricted cash on hand of approximately $127.3 million. This cash balance excludes restricted cash, of $30.1 million, which would bring our total cash on hand to $157.3 million.

Our revolving credit facility had a borrowing base of $75 million and we had approximately $67.5 million in available borrowing capacity after giving effect to $7.5 million of outstanding letters of credit. As of quarter end, the revolving credit facility was undrawn. Subsequent to 06/30/2025, the company entered into a letter agreement in relation to its revolving credit facility whereby the borrowing base was reduced from $75 million to $50 million. Our total liquidity as of June 30 was approximately $194.8 million. And as of today, Mammoth Energy Services, Inc. remains debt-free.

To conclude our call, we would like to thank our employees throughout the company for their hard work, dedication, and commitment to maintaining safe and sustainable worksites for themselves and their teammates. Without you, this transformation wouldn't be possible. Going forward, our priority is to further unlock value for our shareholders. We intend to accomplish this through consistent operational performance, improved efficiency, and strategic and opportunistic transactions. All of which will strengthen Mammoth Energy Services, Inc. for the future. Over the last three months, we've executed multiple value-enhancing transactions that have repositioned the business, insulated our operations from volatile demand trends, and made our financial results more resilient.

We look forward to sharing additional developments with you in the coming quarters. We maintain a debt-free balance sheet and a significant total cash position of approximately $157 million. This further expands our deployment opportunities and we intend to utilize this dry powder to substantially invest in the company for future growth. We plan to utilize the tools at our disposal to strategically deploy capital as attractive value-enhancing opportunities present themselves. Finally, we believe our operational expertise, efficiency, strong balance sheet, and ongoing actions will position Mammoth Energy Services, Inc. for success and propel the company into a better future. Operator, we would now like to open the call up for questions.

Operator: We'll now be conducting a question and answer session. If you would like to ask a question, please press 1 on your telephone keypad. You may press 2 to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up the handset. One moment, while we poll for questions. Thank you. Our first question is from Colby.

Colby: Hi. Thanks for having me on the call. You know, you highlighted earlier that Mammoth Energy Services, Inc. had the three transactions in the second quarter, two of which were exiting the older business segments, and the third was aimed at diversifying the rental services segment and this left you with a really strong cash position. And you had mentioned some opportunities within the rental services segment and then your accommodation services. Where do you see, you know, the growth potential for Mammoth Energy Services, Inc. in the next three to five years with all this dry powder?

Mark Layton: Yeah. So near term, you know, we've invested the majority of our capital in the aviation sector. And as we evaluate those opportunities, you really have to get into our mind as to how we allocate capital. What we're targeting in the aviation sector is IRRs of 25 to 35%. And if you look at, you know, a three to five-year hold at that IRR, you know, you're looking at a two to three x multiple on invested capital. So that's how we're evaluating opportunities, and we're seeing a pretty good deal flow in that particular sector right now.

Colby: That makes sense. And, as a quick follow-up, can you give us a sense of how much your sand is sold domestically versus Canada? And how you see both of those markets evolving in the next three to four quarters?

Mark Layton: As we look at the split right now, we've not disclosed the split publicly, but the majority of what we've sold historically has been into Western Canada, into the Montney. And as we look forward, given what we believe is the availability of tier acreage in the Montney, we think that split will continue on a go-forward basis to be more weighted to the Montney Shale.

Colby: That makes sense. Thank you so much. I'll wait to turn it back now.

Operator: Thank you. Our next question is from Doug Garber with Westport Alpha.

Doug Garber: Hey, Mark. How's it going?

Mark Layton: Morning, Doug.

Doug Garber: Wanted to follow-up on what you're seeing in the aviation market. Can you give us a little context on what's going on in that market or supply-demand imbalances? Are there niches that are allowing this kind of excess return window to be apparent for you guys?

Mark Layton: There are certainly some tailwinds in that particular sector. You know, passenger travel has been favorable. You've seen some production delays at the big manufacturers, Boeing and Airbus. So what we're seeing is demand in that sector, both at the aircraft level, which we executed on, but we also touched in the prepared remarks about the acquisition of some engines and auxiliary power units.

Doug Garber: Thanks for the color there. I look at the stock and your cash balance or the market cap, it's below the cash balance. What are your thoughts on buybacks right now?

Mark Layton: Yeah. So as you recall, the board approved a buyback some time ago, and as you point out, we're trading below cash value and below book value. You know, if you look at the deals we executed inside of Q2, the reality is that we spent the majority of that quarter and the year so far in a blackout period. So the buyback is still available to the board. We've not been able to execute on that for one reason because of the blackout period that we've been in relative to those deals and reporting periods.

Doug Garber: Can you update us a little bit more about are you still in a blackout period? When does that end after earnings? And when you're around when you're, you know, you're consistently looking at deals, are you always gonna be in a blackout period?

Mark Layton: That's a good question. So to the extent we've got actionable deals, either under LOI or under consideration, then more times than not, we'll be in a blackout period. Absent some transaction like that, the blackout period generally lifts two full trading days after we report earnings.

Doug Garber: Got it. And last one for me. Your path to free cash flow getting to free cash flow positive. There's a lot of moving parts here with all these transactions. Obviously, you bought more assets. I assume those will have some positive contributions. And just what's your path to getting to free cash flow neutral?

Mark Layton: That's a good question. As we highlighted in the prepared remarks, the aviation deals that we've executed on have been positive contributors from day one on those transactions. As we look to the back half of the year, you know, as we flagged previously, we've still got some SG&A overhang relative to some ongoing litigation from the exit of Puerto Rico. While those fees are coming down some, they will continue to exist over the coming quarters.

But to kind of give you an idea of what that looks like, we're forecasting about two to two and a half million in overall SG&A legal fees relative to the run-out of some of that Puerto Rico litigation in the back half of the year. So as that runs out, that's our near-term path with this particular group of assets to free cash flow and certainly organic growth as well as utilization will help that out as well.

Doug Garber: Alright. So if I'm understanding it, when the litigation kinda dissipates, that'll get you with the current mix, that'll get you to free cash flow neutral?

Mark Layton: That's correct.

Doug Garber: Thank you for that update, and looking forward to continuing to follow the story. And you'd also talked about rentals. Is there the return opportunity there? Is that where does that rank compared to aviation? Can you do both? Is that, you know, how do you look at that market?

Mark Layton: Yeah. So that segment is gonna be pizza. Yeah. On the construction equipment side and oil and gas-related rentals, we're seeing some opportunities to deploy capital there, and you see that year to date. And we flagged that's that as well as the accommodations business. Can also compete for capital on a go-forward basis that is near to the returns that we're seeing in the aviation space.

Doug Garber: Got it. And typically, those have some leverage. Are you gonna do them unlevered, or are you gonna put a little bit of debt on as you go?

Mark Layton: As we evaluate that, you know, right now, we've got a debt-free balance sheet. We're focused on maintaining a strong balance sheet. I think as you look on a go-forward basis, it's dependent on the assets. So some assets will be better suited for leverage, and we'll continue to evaluate that structure as we deploy capital.

Doug Garber: Well, congrats on pivoting the company, and looking forward to following it in the future. I'll turn it back. Thanks.

Mark Layton: Thanks, Doug.

Operator: Thank you. There are no further questions at this time. I'd like to hand the floor back over to Mark Layton for any closing comments.

Mark Layton: Thank you again for joining us on the call today. We continue to focus on positioning Mammoth Energy Services, Inc. for future growth and unlocking value. We will achieve this through operational excellence, efficiency, and strategic capital deployment. This concludes our conference call. And we look forward to speaking to you all again next quarter.

Operator: This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 1,047%* — a market-crushing outperformance compared to 181% for the S&P 500.

They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.

See the stocks »

*Stock Advisor returns as of August 4, 2025

This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. Parts of this article were created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.

The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.