Shares of Target Hospitality Corp. (TH) are soaring 6.58% in Thursday's pre-market trading session, following the company's announcement of its second-quarter 2025 results and an improved full-year outlook. Despite reporting a net loss for Q2, investors appear to be focusing on the company's positive forward guidance.

For the second quarter of 2025, Target Hospitality reported revenue of $61.6 million, down from $100.7 million in the same period last year. The company posted a net loss of $14.9 million, or $0.15 per share, compared to a net income of $18.4 million in Q2 2024. The average number of utilized beds decreased to 7,482 from 14,370, with utilization dropping to 45% from 89% year-over-year.

However, the stock's surge seems to be driven by Target Hospitality's decision to raise its full-year 2025 outlook. The company now expects total revenue for the year to be between $310 million and $320 million. Management cited continued progress on strategic diversification initiatives as the reason for the improved outlook. Additionally, Target Hospitality emphasized that its premium service offerings and network scale continue to support consistent customer demand, which may be contributing to investor optimism despite the Q2 losses.