Nine Energy Service (NINE) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $150.5 million, up 6% sequentially and year-over-year, at the upper end of guidance, with all service lines posting growth, notably in cementing and coil tubing.

• Adjusted EBITDA was $16.5 million, up 17% quarter over quarter and 10% year-over-year, reflecting market share gains and cost reductions.

• Net loss improved to $7.1 million, narrowing from $8.1 million in Q1 2024.

• Asset-light, technology-driven model and cost initiatives continue to support cash generation and reduced capex needs.

• Liquidity was enhanced by closing a new $125 million revolving credit facility in May 2025, extending maturity and increasing flexibility.

Financial highlights

• Q1 2025 revenue: $150.5 million; adjusted EBITDA: $16.5 million; net loss: $7.1 million; adjusted gross profit: $28 million.

• Cash and cash equivalents stood at $17.3 million as of March 31, 2025; total liquidity was $53.8 million.

• CapEx for Q1 was $4.3 million; full-year CapEx budget remains $15–$25 million.

• Net cash used in operating activities was $5.3 million.

• Adjusted EBITDA margin was approximately 11% in Q1 2025.

Outlook and guidance

• Q2 2025 revenue projected between $138 million and $148 million, with both revenue and Adjusted EBITDA expected to decline from Q1 due to lower oil prices and activity reductions.

• Full-year 2025 capital expenditures planned between $15 million and $25 million.

• Management remains cautiously optimistic on long-term natural gas market growth and international tool sales.

• Strategy focuses on expanding completion tool revenue and technology-driven growth.