Breaking Down Barnwell Industries, Inc. (BRN) Financial Health: Key Insights for Investors

You're looking at Barnwell Industries, Inc. (BRN) and seeing a mixed, frankly confusing, picture. The headline numbers from the Q3 2025 report are defintely tough: the company posted revenue of just $3.2 million, which is a sharp drop of $5.5 million compared to the same quarter last year, leading to a quarterly net loss of $1.6 million. That's the near-term risk right there, but still, you have to look deeper, because the trailing 12-month revenue stands at a more respectable $18.1 million, and the stock, trading around $1.18 as of mid-November 2025, has a tiny market capitalization of only $12.0 million. So, what gives? Honestly, the biggest opportunity signal is the insider activity: key executives have collectively purchased $1.96 million worth of stock over the last year, showing a strong belief in the long-term value that the market isn't currently pricing in.

Revenue Analysis

You're looking at Barnwell Industries, Inc. (BRN) revenue, and the direct takeaway is this: the company is undergoing a significant, planned contraction as it sheds non-core assets to focus on its primary business, resulting in a sharp revenue decline in 2025.

For the trailing twelve months (TTM) ending June 30, 2025, Barnwell Industries, Inc. reported total revenue of approximately $15.51 million. This figure reflects a dramatic year-over-year revenue growth rate decline of about -30.1% as of the end of the 2025 fiscal year, a much steeper drop than the broader Oil & Gas E&P industry.

Primary Revenue Streams and Segment Contribution

Barnwell Industries, Inc.'s revenue historically came from a few distinct, non-related segments, but the company is actively simplifying its structure. The core of its income is now firmly rooted in its energy operations, primarily the sale of crude oil and natural gas. The company operates mainly in the United States, which is the majority source of its revenue, plus it has operations in Canada.

Here's the quick math on where the revenue comes from:

• Oil and Natural Gas: This is the dominant segment, generating the maximum revenue for the company. This segment's performance is highly sensitive to commodity price volatility and natural well aging.
• Land Investment: This segment involves the acquisition, development, and management of real estate projects, providing a less volatile, albeit smaller, revenue stream.
• Others: This captures miscellaneous income sources.

Analysis of Significant Changes

The biggest change in Barnwell Industries, Inc.'s revenue profile for 2025 is the strategic divestiture (sale) of its Contract Drilling segment. This segment, which included its deep drilling and well pumping specialist subsidiary, Water Resources International, Inc., was sold in March 2025.

Honestly, this is a major structural shift. That segment contributed approximately $3.162 million in revenue for the TTM ended December 31, 2024. Selling it means the company's total revenue number shrinks, but it also simplifies the equity story for investors, allowing them to focus on the oil and natural gas business. This move is part of a plan to streamline the holding company operations and significantly decrease general and administrative expenses. If you want to know more about the company's focus, you can review its Mission Statement, Vision, & Core Values of Barnwell Industries, Inc. (BRN).

Near-Term Revenue Outlook

The revenue trend for the 2025 fiscal year shows the impact of lower commodity prices and the divestiture. For example, Q1 2025 revenue was $4.48 million, a drop from $6.16 million in Q1 2024. By Q3 2025, revenue was down to $3.2 million. The decline isn't just the divestiture; it's also due to lower oil and gas prices in Q1 2025, with gas prices dropping by 40% year-over-year. Still, the company is defintely focusing its capital on the energy segment, which could stabilize the top line in 2026 if commodity prices cooperate.

What this estimate hides is the potential for new production, like the new Twining well that started producing in late 2024, which could partially offset declines from aging wells. The challenge is that the revenue base is now smaller and more concentrated in the volatile energy sector.

Profitability Metrics

You need a clear picture of Barnwell Industries, Inc. (BRN)'s earning power, and honestly, the latest numbers show significant strain. The key takeaway is that for the trailing twelve months (TTM) ending in late 2025, the company is operating at a substantial loss, with a TTM Net Profit Margin of about -36.3%. This isn't just a tough quarter; it's a deep profitability challenge.

Here's the quick math on their TTM figures, which represent the most complete data closest to the 2025 fiscal year end. With TTM revenue at approximately $18.1 million, we can see exactly where the money is going-or not staying.

The gross profit margin of 25.08% tells you they are making money on the core product sales-oil, gas, and real estate lots-but not enough to cover the overhead, or selling, general, and administrative (SG&A) costs. The massive drop-off to a -32.61% operating margin is the real red flag. Operating expenses are eating up all the gross profit and then some.

Profitability Trends and Industry Comparison

The trend in 2025 is clearly negative. Revenue has been dropping sequentially through the first three quarters: $4.48 million in Q1, $3.57 million in Q2, and $3.19 million in Q3. Simultaneously, the net loss has been persistent, ranging from $1.54 million to $1.92 million per quarter. This consistent decline in the top line, coupled with rising costs, is defintely a worrying trajectory.

When we compare Barnwell Industries, Inc.'s TTM profitability ratios to the industry median for Oil & Gas - Exploration and Production, the underperformance is stark:

• Gross Margin: BRN's 25.08% is significantly below the industry median of 36.55%.
• Operating Margin: BRN's -32.61% is a deep loss compared to the industry's median profit of 15.08%.
• Net Profit Margin: BRN's -36.3% is far from the industry's median profit of 9.29%.

They are struggling to keep pace with peers across all three major profitability metrics. For a deeper look at who is holding the bag, you should read Exploring Barnwell Industries, Inc. (BRN) Investor Profile: Who's Buying and Why?

Operational Efficiency and Cost Management

The operational efficiency analysis points directly to elevated costs, not just weak revenue. Specifically, the Q3 2025 net loss was driven by a 43% increase in general and administrative (G&A) expenses. A big chunk of that-$657,000-was non-recurring fees and costs related to a shareholder consent solicitation and proxy contest. That's a direct, non-productive cost hitting the bottom line.

Here's the thing: operational efficiency isn't just about cutting costs; it's about making sure every dollar spent supports revenue generation. When a significant portion of your G&A is going toward legal and proxy battles, it's a clear drain on capital that has nothing to do with drilling oil or selling land. The company is trying to streamline, including selling its Water Resources subsidiary and other assets, but the core business segments-oil and gas, and land investment-are seeing decreased operating results, which is a structural problem. The decline in production across all energy products (oil down 14%, natural gas down 24%, natural gas liquids down 13% in Q2 2025) suggests the underlying operations are also facing headwinds.

Next Step: Finance should model the impact of removing the non-recurring G&A costs to establish a 'normalized' operating margin, then compare that to the industry median to see the true operational gap.

Debt vs. Equity Structure

The direct takeaway for Barnwell Industries, Inc. (BRN) is simple: the company operates with a near-zero debt profile, a highly conservative financial posture that significantly de-risks the balance sheet. This approach is a stark contrast to the capital-intensive nature of their core industry.

You're looking at a company that largely avoids the financial leverage (debt) most oil and gas firms rely on. As of the third quarter of fiscal year 2025, the company's financial statements show an extremely low debt level. Specifically, the Short-Term Debt & Capital Lease Obligation was reported at $0.00 Mil, with Long-Term Debt & Capital Lease Obligation at just $0.11 Mil for the period ended June 30, 2025. Honestly, that's barely a rounding error for a publicly traded company.

Here's the quick math: with total shareholder equity sitting around $8.6 million recently, the Debt-to-Equity (D/E) ratio is practically zero (reported as 0.01 in late 2024/2025). This is a massive deviation from its peers in the Oil & Gas Exploration & Production (E&P) sector, where the industry average D/E ratio is closer to 0.48 as of November 2025. A ratio this low means Barnwell Industries, Inc. is overwhelmingly financed by shareholder capital, not borrowed money.

The company's financing strategy is clearly equity-driven, which provides a huge buffer against volatility in the energy market. They are not beholden to debt covenants or major interest payments, which is a major advantage when oil and gas prices swing. This is a deliberate, low-leverage approach, and it's defintely a key part of their investment thesis. You can dive deeper into who is buying into this strategy here: Exploring Barnwell Industries, Inc. (BRN) Investor Profile: Who's Buying and Why?

What this estimate hides, however, is the trade-off. While the company is financially robust, its growth is constrained by its own capital and operational cash flow, which has been negative recently. They balance their funding like this:

• Debt Financing: Minimal, used only for minor obligations.
• Equity Funding: Primary source, leading to the 0.01 D/E ratio.
• Recent Activity: No major debt issuances or refinancing activity reported, consistent with the debt-free status.

The table below summarizes the core of the company's capital structure versus the industry benchmark, making the difference clear:

The risk of a credit crunch or default is virtually nonexistent here. Still, you have to watch the cash flow closely; a debt-free company with persistent losses can still burn through its equity.

Liquidity and Solvency

You need to know if Barnwell Industries, Inc. (BRN) has enough cash on hand to cover its short-term bills. The quick answer is: not comfortably, based on the latest figures. The company's liquidity position shows near-term strain, with both the current and quick ratios falling below the critical 1.0 benchmark in the most recent reporting period.

As of October 2025, Barnwell Industries, Inc.'s Current Ratio sits at 0.76, and its Quick Ratio is even lower at 0.56. A current ratio below 1.0 means that the company's current assets-what it expects to turn into cash within a year-are less than its current liabilities (short-term debt). The quick ratio, which strips out less-liquid assets like inventory, is a tougher test, and its 0.56 figure is defintely a red flag for immediate liquidity.

Working Capital Trends and Liquidity Position

The low current ratio directly translates into a negative working capital position. Here's the quick math: with current liabilities at an estimated $5 million (based on the August 2025 filing data), the current assets are only about $3.8 million ($5M 0.76). This results in a negative working capital of approximately -$1.2 million. This deficit means the company would struggle to meet all its short-term obligations if they came due today, forcing them to potentially liquidate long-term assets or seek new financing.

• Current Ratio: 0.76 (Below the safe 1.0 level)
• Quick Ratio: 0.56 (Indicates severe pressure on immediate cash)
• Working Capital: -$1.2 million (A clear deficit)

What this estimate hides is the quality of the assets; if the $2.8 million in quick assets are mostly cash and highly collectible receivables, the risk is lower. Still, the overall trend points to a need for tighter cash management or a capital injection.

Cash Flow Statements Overview

Analyzing the cash flow statement (CFS) provides a clearer picture of how Barnwell Industries, Inc. is generating and using its cash across its three core activities. The latest full-year data available (FY 2024) shows a mixed but generally positive cash generation from operations, which is crucial for funding the business without relying on debt or asset sales.

The $4.71 million in Operating Cash Flow (OCF) is a solid number, showing the core business is profitable on a cash basis, but it's not consistently growing year-over-year. The Investing Cash Flow (ICF) of -$2.83 million indicates the company is investing in its future, which is healthy, but this capital expenditure drains the cash generated by operations. The Financing Cash Flow (FCF) of -$226.00 thousand suggests a slight net outflow, likely due to small debt repayments or other financing activities.

Potential Liquidity Concerns and Strengths

The primary liquidity concern is the low current and quick ratios, which signal a short-term working capital crunch. This is further supported by the latest twelve months (LTM) cash flow to current liabilities ratio being -13.5%, meaning the company's operating cash flow is not covering its short-term obligations. This kind of negative coverage ratio is a significant risk, especially for a company heavily dependent on the volatile oil and gas industry.

However, the strength lies in the positive OCF of $4.71 million (FY 2024). This cash generation provides a buffer, but it must be managed carefully to address the working capital deficit. To understand the long-term strategy behind these numbers, you should review the company's core principles: Mission Statement, Vision, & Core Values of Barnwell Industries, Inc. (BRN).

So, the clear action for you as an investor is to monitor the next quarterly report for a significant improvement in the current ratio. If it stays below 1.0, the risk of a liquidity event-needing to raise capital at an unfavorable time-is elevated.

Valuation Analysis

Barnwell Industries, Inc. (BRN) presents a complex valuation picture right now, showing signs of a deep discount based on book value but also flashing caution due to negative earnings and a bearish near-term stock trend. The key takeaway is that the stock is technically undervalued on a Price-to-Book (P/B) basis relative to its sector, but its negative earnings per share (EPS) and Enterprise Value-to-EBITDA (EV/EBITDA) multiple suggest significant operational risks you need to price in.

You're looking at a micro-cap energy and land investment company, so traditional metrics often get distorted. Here's the quick math on the core valuation multiples as of November 2025, using trailing twelve months (TTM) data.

• Price-to-Earnings (P/E) Ratio: The P/E ratio is currently negative at approximately -1.82x. This isn't a sign of cheapness; it's a clear signal that the company has negative earnings (a net loss) over the past year, making the ratio meaningless for standard valuation comparisons.
• Price-to-Book (P/B) Ratio: At about 1.48x, the P/B ratio is relatively low. This means you are paying $1.48 for every dollar of Barnwell Industries, Inc.'s book value (assets minus liabilities), which can suggest the stock is undervalued, especially compared to some peers in the Oil & Gas sector.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA is also negative, sitting around -5.77x as of November 2025. Like the P/E, a negative EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) makes this ratio unusable for positive peer comparison and underscores the company's recent operational struggles to generate core profit.

To be fair, the negative ratios are a major red flag for profitability, but the P/B ratio indicates the market isn't fully discounting the underlying assets, which include oil/natural gas and land interests in Hawaii. You defintely need to dig deeper into those asset values.

For a detailed look at who is holding these shares and why they might be willing to tolerate the current financial metrics, I recommend Exploring Barnwell Industries, Inc. (BRN) Investor Profile: Who's Buying and Why?

Stock Price and Dividend Reality Check

The stock price trend over the last 12 months shows significant volatility and a clear downward trajectory from its high. Barnwell Industries, Inc.'s 52-week trading range is from a low of $1.08 to a high of $2.28. Trading near the low end, with the stock price around $1.15 as of mid-November 2025, indicates that the market has been punishing the stock. The near-term trend is bearish, with a decline of over 10% in the 10 days leading up to November 17, 2025.

Regarding dividends, the current dividend yield is effectively 0%, as the company has not paid a dividend in the past year. While an annual dividend of $0.01 is sometimes cited, the last actual payment was in September 2023. The cash flow payout ratio, which measures dividends against cash flow, is around 32.43%, but this is based on older trailing data and is not sustainable without consistent positive earnings and cash flow generation. Don't buy this stock for income.

Analyst Sentiment and Actionable Insight

Analyst consensus is mixed, which is typical for a stock with such a dichotomous valuation. Technical analysis for Barnwell Industries, Inc. leans toward a 'Strong Sell' signal based on moving averages and other short-term indicators as of November 2025. This aligns with the recent price decline and bearish trend. Still, some algorithmic price targets are remarkably high, with an average forecast of $3.1509 for the next 30 days, representing a massive potential upside of over 160% from the current price.

This huge discrepancy tells you one thing: the market is split between short-term operational distress and the potential long-term value of the underlying assets. My advice is to treat the near-term technical 'Strong Sell' signal seriously, but use the high price target as a reminder of the potential if the company can execute a successful turnaround or asset sale. Your clear action here is to wait for a definitive shift in the fundamental earnings trend or a catalyst related to their land assets before initiating a position.

Risk Factors

You're looking at Barnwell Industries, Inc. (BRN) and seeing a company in a deep transition, so you need to understand the immediate and substantial risks before making any investment decision. The most critical takeaway is this: management has formally expressed substantial doubt about the company's ability to continue as a going concern as recently as the second and third quarters of fiscal year 2025. That's the most serious financial warning sign you can get.

The core of the problem is a combination of operational decline, high internal costs, and a severely strained liquidity position. For the nine months ended June 30, 2025, Barnwell Industries, Inc. reported a net loss of $4.674 million. That's a significant cash burn that has depleted the balance sheet.

Here's the quick math on the financial stress:

• Liquidity Crisis: As of June 30, 2025, the company had a working capital deficit of $1.321 million.
• Cash Position: Cash and cash equivalents were only $1.154 million as of the same date.
• Operational Decline: Oil and natural gas production is shrinking. In Q2 2025 alone, oil production dropped 14%, natural gas was down 24%, and natural gas liquids fell 13% year-over-year.

Honestly, a working capital deficit this deep, combined with ongoing operational losses, means the company is in a liquidity preservation mode.

Internal and Strategic Risks: The Governance Drag

One major risk that is entirely internal and avoidable is the ongoing corporate governance fight. The shareholder consent solicitation and proxy contest have been a massive drain on capital and management time. This isn't just a distraction; it's a direct hit to the bottom line.

Look at the General and Administrative (G&A) expenses. In Q3 2025, G&A expenses ballooned to $1.868 million, up from $1.303 million in the prior year, with legal and proxy-related costs driving that increase. In Q2 2025, those expenses were already $978,000. That's money that could have been used to invest in operations or simply keep the lights on.

The strategic risk is that the company is selling off assets to survive, which shrinks its future revenue base. The sale of all U.S. oil and natural gas assets in August 2025 for $2.3 million is expected to incur a $700,000 loss, eliminating a revenue stream. This is a move of necessity, not growth.

External and Mitigation Factors

External risks are typical for an energy and land company, but they hit harder when the company is already weak. The primary external risk is the volatility of commodity prices. Barnwell Industries, Inc. is still exposed to fluctuations in crude oil and natural gas prices, which directly impact its remaining Canadian oil and gas segment. Plus, the land investment segment's cash flows are inherently intermittent, relying on the timing of real estate sales in Hawaii, which adds an element of unpredictable revenue.

The mitigation strategy is clear but risky: asset sales and seeking external financing. Management is actively exploring funding options, including debt financing and further asset disposals. They are also simplifying the corporate structure, with plans to wind down the Hawaii office by March 2026 and consolidate operations in Calgary. This is a defintely a cost-cutting and survival plan, not a growth plan. If you want to dive deeper into who is buying and selling this stock amid these risks, you should check out Exploring Barnwell Industries, Inc. (BRN) Investor Profile: Who's Buying and Why?

The next step for you is to monitor the financing efforts. Did they secure the debt? What were the terms? If they don't, the going concern risk becomes a reality.

Growth Opportunities

Barnwell Industries, Inc. (BRN) is defintely at an inflection point, having executed a major strategic pivot in 2025 to streamline operations and focus capital entirely on its core oil and natural gas business. This shift is the single most important driver for future growth, aiming to translate its strong balance sheet into higher-yield production and exploration.

The company's primary strategic move this fiscal year was the divestiture of its Contract Drilling segment, Water Resources International, Inc., which closed in March 2025 for an aggregate purchase price of $1,050,000. This sale, which followed a plan to wind down the segment and reduce fixed costs, allows management to refocus all resources and capital on oil and gas exploration and production. The segment's revenues totaled approximately $3,162,000 for the trailing-twelve-months ended December 31, 2024, so the sale simplifies the corporate structure and is expected to meaningfully decrease general and administrative (G&A) expenses.

Future revenue growth is anchored in the performance of its Canadian oil and gas assets. The company has a clear path for product innovation centered around drilling new wells. For example, a new Canadian well has been performing as expected, and the plan is to drill two additional wells from the same pad once the necessary capital is secured. This targeted reinvestment, funded in part by the divestiture proceeds, capitalizes on the increasing global energy demand and rising oil prices, which are the fundamental market tailwinds for Barnwell Industries, Inc..

When assessing future growth, you should look at the company's structural advantages. Barnwell Industries, Inc. maintains a strong fiscal foundation that positions it well for aggressive investment in its core business:

• Debt-Free Balance Sheet: The company holds no bank debt, which provides significant financial flexibility.
• High Gross Margin: A gross margin of 81.3%, reported in June 2025, shows strong profitability on direct production costs.
• Low Leverage: The total debt to equity ratio is minimal, sitting at a low of 0.01.
• Experienced Leadership: An experienced management team is in place to navigate the complexities of the oil and gas market.

Now, let's talk numbers. Because Barnwell Industries, Inc. has limited analyst coverage, there are no consensus revenue growth projections or earnings estimates to cite. This lack of external forecast means you have to rely more heavily on the company's stated strategic goals and internal performance metrics. Here's the quick math on the recent 2025 quarterly performance, which sets the baseline for the current fiscal year:

What this estimate hides is the full impact of the G&A cost reductions from the restructuring, which should start showing up in the later 2025 and 2026 reports. The actionable insight here is to monitor the Q4 2025 and Q1 2026 financials closely for evidence that the cost-cutting and the new well performance are materially improving the net income line. If you want a deeper dive into the shareholder landscape and the dynamics driving the stock price, you should read Exploring Barnwell Industries, Inc. (BRN) Investor Profile: Who's Buying and Why?