Vivakor, Inc. (NASDAQ: VIVK) has raised its FY26 Supply & Trading outlook to $3.5 billion in annualized commercial activity, driven by rapid expansion of its physical crude oil marketing platform.

The revised target reflects a growing pipeline of commercial opportunities and evolving global crude oil market conditions, including heightened volatility amid geopolitical uncertainty in the Middle East.

Current Volume Breakdown

Vivakor’s subsidiary, Vivakor Supply & Trading, LLC ("VST"), currently reports approximately $2.35 billion in annualized commercial activity. This volume represents roughly 26.9 million barrels of annualized crude oil sales.

This scale demonstrates the expansion of recurring physical crude oil activity and commercial relationships across the trading platform.

What the Numbers Show

The revised $3.5 billion outlook represents approximately $1.15 billion of additional annualized commercial activity above VST’s current $2.35 billion level. Vivakor intends to pursue this growth through additional recurring physical crude oil volumes and continued expansion of its commercial relationships.

As an intermediary in the physical crude oil supply chain, VST recognizes only a small percentage of the total contract value as gross profit. Consequently, the reported $3.5 billion in annualized commercial activity represents top-line throughput rather than revenue recognized on the income statement. Gross profit will vary based on market conditions, commodity pricing, transaction structure, and delivered volumes.

Management Commentary

James Ballengee, Chairman, President and Chief Executive Officer of Vivakor, stated that surpassing $2 billion validates the strategy of building around recurring physical crude oil volumes. He emphasized that the company does not view $2.35 billion as an endpoint, citing confidence in the raised 2026 outlook due to opportunities currently under development.

Ballengee noted that global crude oil markets remain dynamic, with geopolitical uncertainty and changing supply and demand patterns creating new challenges and opportunities across the physical crude oil market. The objective is to respond to those opportunities by adding recurring volumes, expanding commercial relationships, and continuing to build VST into a larger commodities platform.

Vivakor (NASDAQ: VIVK) returned to positive operating income in the second quarter of FY26, marking a significant operational turnaround despite a widening per-share loss reported in earlier filings. The company generated an operating income of approximately $0.2 million, compared to an operating loss of $6.8 million in the same period last year.

This improvement coincided with a 10% increase in quarterly revenue, which reached $32.1 million from $29.1 million in the prior-year period. The top-line growth was primarily driven by the expansion of the company’s crude oil supply and trading activities.

Financial Performance Overview

The quarter demonstrated a sharp divergence between operational profitability and bottom-line results. While operating metrics improved significantly, the net loss attributable to Vivakor decreased by 78% to $2.8 million, down from $12.5 million previously. However, this still resulted in a loss of $13.35 per share, compared to a loss of $0.30 per share in the corresponding period of the previous fiscal year.

Operational Drivers

Gross profit increased by 45% to $6.6 million, up from $4.6 million, as gross margin expanded to 20.7% from 15.7%. This margin improvement reflected better profitability across midstream operations and the continued scaling of Supply & Trading activities.

Operating expenses fell sharply by 43% to $6.5 million, down from $11.4 million. This reduction was primarily attributable to lower depreciation and amortization expense.

Six-Month Context

For the six months ended June 30, 2026, consolidated revenue was $51.6 million, compared to $66.4 million in the prior-year period. This decline was largely due to lower revenues from Transportation & Logistics and Terminaling & Storage, including the impact of the July 2025 divestiture of Meridian Equipment Leasing, LLC and Equipment Transport, LLC.

Despite lower consolidated revenue, gross profit for the half-year increased by 32% to $12.4 million from $9.3 million. Supply & Trading generated $40.0 million of revenue during the first six months of 2026, with $26.5 million contributed specifically in the second quarter.

What the Numbers Show

The data reveals a structural shift in Vivakor’s cost base and revenue mix. While the company achieved positive operating income through a combination of higher gross margins and significantly reduced operating expenses, the per-share loss widened dramatically. This disconnect suggests that factors outside of core operations—such as share count changes or non-operating charges—may be influencing the bottom-line per-share metric, even as the underlying business becomes operationally profitable.