Company: NINE
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001532286-25-000026
Chunk: 119

Company: Nine Energy Service, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 2
Chunk 119
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 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 18,193 Amortization of intangibles2,795 2,796 8,387 8,388 Adjusted gross profit$20,300 $24,706 $74,108 $71,173 

Liquidity and Capital Resources

Sources and Uses of Liquidity

Historically, we have met our liquidity needs principally from cash on hand, cash flows from operations and, if needed, external borrowings and issuances of debt and equity securities. We continually monitor potential capital sources, including equity and debt financing, to meet our investment and target liquidity requirements. Our future success and growth will be highly dependent on our ability to continue to access outside sources of capital, which we cannot guarantee. Our principal uses of cash are to fund capital expenditures, service our outstanding debt,