Nine Energy Service (NINE) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $132.0 million, with adjusted EBITDA of $9.6 million and a net loss of $14.6 million, falling below original guidance of $135.0–$145.0 million due to rig declines and pricing pressure across all service lines.

• International revenue grew by approximately 19% year-over-year for the first nine months of 2025, driven by sales in the UAE, Argentina, and Australia.

• A technical milestone was achieved with a proprietary cementing job in the Haynesville Basin.

• The quarter was marked by significant rig declines, pricing pressure, and a drop in oil prices, leading to lower activity and earnings across all service lines.

• For the nine months ended September 30, 2025, revenue rose 4% to $429.7 million, but net loss remained high at $32.1 million.

Financial highlights

• Q3 2025 revenue was $132.0 million (down 4% YoY); adjusted EBITDA was $9.6 million, down from $14.1 million in Q2 2025; net loss was $14.6 million.

• Adjusted gross profit for Q3 was $20.3 million; gross profit was $11.9 million.

• Net cash used in operating activities was $9.9 million for the quarter.

• Cash and cash equivalents stood at $14.4 million, with total liquidity of $40.3 million as of September 30, 2025.

• CapEx for Q3 was $3.5 million, with year-to-date CapEx at $13.9 million; full-year CapEx expected at the lower end of $15–$25 million.

Outlook and guidance

• Q4 2025 revenue and adjusted EBITDA are expected to decline sequentially due to seasonality, budget exhaustion, holidays, weather, and continued low pricing.

• Full-year 2025 capital expenditures are expected at the lower end of the $15–$25 million guidance range.

• Borrowing base under the ABL Credit Facility is expected to decrease by $2.2 million monthly through January 2026, impacting liquidity.

• Too early to provide specifics on 2026 activity as operators are still evaluating CapEx plans amid oil price volatility.