Company: NINE
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001532286-25-000026
Chunk: 91

Company: Nine Energy Service, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
Chunk 91
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(23.1)%(14.7)%(16.8)%(15.1)%Adjusted ROIC(1.6)%3.9%4.7%2.8%

Adjusted Gross Profit (Loss)

GAAP defines gross profit (loss) as revenues less cost of revenues and includes depreciation and amortization in costs of revenues. We define adjusted gross profit (loss) as revenues less direct and indirect costs of revenues (excluding depreciation and amortization). This measure differs from the GAAP definition of gross profit (loss) because we do not include the impact of depreciation and amortization, which represent non-cash expenses.

Management believes adjusted gross profit (loss) provides useful information to us and our investors regarding our financial condition and results of operation and helps management evaluate our operating performance by eliminating the impact of depreciation and amortization, which we do not consider indicative of our core operating performance. Adjusted gross profit (loss) should not be considered as an alternative to gross profit (loss), operating income (loss), or any other measure of financial performance calculated and presented in accordance with GAAP. Adjusted gross profit (loss) may not be comparable to similarly titled measures of other companies because other companies may not calculate adjusted gross profit (loss) or similarly titled measures in the same manner as we do.

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The following table presents a reconciliation of adjusted gross profit (loss) to GAAP gross profit (loss) for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30,Nine Months Ended September 30,2025202420252024(in thousands)Calculation of gross profit:Revenues$132,028 $138,157 $429,745 $412,678 Cost of revenues (exclusive of depreciation and amortization shown separately below)111,728 113,451 355,637 341,505 Depreciation (related to cost of revenues)5,647 5,791 17,053 18,193 Amortization of intangibles2,795 2,796 8,387 8,388 Gross profit$11,858 $16,119 $48,668 $44,592 Adjusted gross profit reconciliation:Gross profit$11,858 $16,119 $48,668 $44,592 Depreciation (related to cost of revenues)5,647 5,791 17,053 18