TRX Gold Q2 2026 Earnings: Revenue Hits $34.1M

TRX Gold (TSX/NYSE: TRX) posted record Q2 2026 results for the quarter ended February 28, 2026, with revenue of USD 34.1 million (+274% YoY). Adjusted EPS came in at USD 0.04, beating the USD 0.02 analyst estimate by 100%. GAAP net loss was USD 20.4 million, driven by a non-cash derivative revaluation charge. Stock saw pre-market softness despite the operational beat.

About TRX Gold Corporation

TRX Gold Corporation (TSX: TRX / NYSE American: TRX) is a high-margin, growing gold mining company headquartered in Toronto, Ontario, Canada. Founded in 2001, the company’s primary asset is the Buckreef Gold Project, an open-pit gold operation located in the Geita Region of Tanzania, East Africa.

The company operates a 2,000 tonne-per-day (tpd) processing plant at Buckreef and is actively expanding toward a new 3,500+ tpd SAG/ball mill facility. As of April 2026, TRX Gold carries a market capitalization of approximately USD 505 million. The stock has surged approximately 525% over the past year.

The company does not currently pay a dividend, as capital is directed toward plant expansion and exploration. There is no applicable GAAP P/E ratio given the reported net loss, however the price-to-sales ratio stands at approximately 6.55x. TRX Gold employs a focused team in Tanzania and Canada, reporting zero lost time injuries in Q2 2026.

Top Financial Highlights

1. Revenue reached USD 34.07 million, a 274.13% increase year-over-year
2. Gross Profit was USD 21.05 million, representing a gross margin of 62%, up from 23.5% in Q2 2025
3. Adjusted Net Income was USD 11.66 million vs. a USD 111,000 loss in Q2 2025
4. GAAP Net Loss was (USD 13.78 million), driven primarily by a USD 23.52 million non-cash change in fair value of derivative warrant liabilities
5. Adjusted EBITDA hit a record USD 20.24 million (59% margin), up from USD 941,000 in Q2 2025
6. Adjusted EPS was USD 0.04, beating the consensus estimate of USD 0.02 by 100%
7. GAAP Diluted EPS was (USD 0.07) vs. estimate of USD 0.04 (miss)
8. Operating Cash Flow was USD 8.85 million, up 337.54% YoY
9. Cash and Cash Equivalents as of February 28, 2026 stood at USD 26.03 million
10. Working Capital improved to USD 32.10 million (vs. a USD 2.18 million deficit a year prior)
11. Gold Ounces Poured were a record 7,453 oz, up from 3,004 oz in Q2 2025
12. Gold Ounces Sold were 7,314 oz, at an average net realized price of USD 4,655/oz
13. Cash Cost per Ounce was USD 1,506/oz, down from USD 1,765/oz in Q2 2025
14. Full-Year Production Guidance reaffirmed at 25,000 to 30,000 oz, with cash costs of USD 1,400 to USD 1,600/oz
15. CapEx for the quarter was USD 11.38 million (+543.89% YoY), reflecting plant expansion investment
16. ROM and Crushed Ore Stockpile held an estimated 20,147 oz of contained gold, valued at approximately USD 107.5 million at current market prices

The following table provides a reconciliation of net (loss) income and comprehensive (loss) income to Adjusted EBITDA per the Unaudited Interim Condensed Consolidated Financial Statements for the three and six months ended February 28, 2026.

Beat or Miss?

The GAAP net loss of USD 13.78 million (reported externally as USD 20.38 million inclusive of minority interests) was not reflective of operating performance. The primary driver was a USD 23.52 million non-cash loss from derivative warrant revaluation as TRX’s share price rose and all outstanding warrants were exercised or expired during Q2.

What Leadership Is Saying?

CEO Stephen Mullowney on Strategy and Vision:

“We yet again delivered a record quarter, with 7,453 ounces of gold poured and 7,314 ounces sold during Q2 2026. With an average realized price of $4,655 per ounce of gold, we generated outstanding financial results with revenue of $34.1 million, gross profit of $21.1 million (61% margin) and adjusted EBITDA of $20.2 million (59% margin). With a cash balance of $26.0 million, undrawn revolving credit lines of over $12.0 million, minimal debt and significant run rate adjusted EBITDA, we are well positioned to execute on our next plant expansion. We look forward to what’s ahead for TRX Gold.”

CFO Michael Leonard on Financials and Margins:

“A record quarter with increases in virtually all financial and operational metrics versus last quarter as well as the prior year comparative period. Gold production just under 7,500 ounces, a record average realized gold price of $4,655 per ounce, quarterly revenues exceeding $34 million, and a gross profit surpassing $21 million, achieving a gross profit margin of 62%. Adjusted net income near $12 million and adjusted EBITDA exceeding $20 million translates to an annualized EBITDA of over $80 million.”

Historical Performance

Year-over-year comparison for TRX Gold (three months ended February 28)

Six-month (H1 FY2026) year-over-year performance:

Competitor Historical Performance

The following table compares TRX Gold against relevant junior and mid-tier gold mining peers for the most recently available comparable periods. Note that TRX Gold’s fiscal Q2 ends February 28 while peers’ quarters may vary:

Direct Q2 2026 competitor financials for comparable junior Tanzania/Africa-focused gold miners are not yet fully available as of April 16, 2026. Galiano Gold (TSX: GAU), an Africa-focused peer operating the Asanko Gold Mine in Ghana, has indicated its Q1 2026 results will be released on May 13, 2026. TRX Gold’s 274% year-over-year revenue growth and 62% gross margin are notably ahead of typical junior gold miner benchmarks for the period, reflecting the leverage to record gold prices (averaging approximately USD 4,682/oz London PM fix during Q2 2026) and operational efficiencies at Buckreef.

How the Market Reacted?

Despite delivering a clear revenue beat and record operational metrics, TRX Gold’s stock reacted negatively following the Q2 2026 results. Shares fell approximately 5.73% in pre-market trading, closing at USD 1.57 per share. Separately, a report citing a 7.25% stock drop on the day of the announcement attributed the decline to investor focus on the USD 20.4 million GAAP net loss and the 543.89% surge in capital expenditures, which signaled continued heavy investment rather than near-term earnings conversion.

Analysts remain broadly constructive on the stock, with a consensus price target of USD 2.30 implying approximately 75.57% upside from the post-announcement trading price. The sentiment of the report was fundamentally bullish, with record production, margins, and cash flow pointing to a company scaling up rapidly at Buckreef, with the market’s skepticism centered on the pace of capex spending and non-cash derivative losses rather than operational fundamentals.