Target Hospitality Corp.

Specialty workforce-lodging operator in a loss year with declining revenue, tight liquidity and customer concentration.

Strengths

• OCF margin 23.1% (75.8th pct) — still cash-generative despite the loss
• Vertically integrated network with contracted minimum-revenue commitments and new data-center/critical-mineral end markets

Risks

• Net margin -11.6%, ROE -9.5%, net income -152% (7.8th pct) — a clear loss year
• Current ratio 0.87 (<1), revenue -19%, heavy government/large-customer and lease-renewal concentration

Notable findings

• Exec changeRecent 8-K item 5.02 8-K ↗
• Net lossNet loss (net margin -11.6%)
• Weak liquidityCurrent ratio 0.87 (<1)
• Revenue declineRevenue -18.9% YoY
• China exposure● compliance with applicable export control of Financial Condition and Results of 28 Table of Contents Operations—Factors Affecting Results of Operations—Natural Disasters or Other Significant