Company: NINE
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001532286-25-000016
Chunk: 21

Company: Nine Energy Service, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 periods beginning after December 15, 2027, and should be applied on a prospective or retrospective basis, with early adoption permitted. The Company is currently evaluating the impact that this guidance will have on the disclosures within its condensed consolidated financial statements.In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments require disclosure of specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold and further disaggregation of income taxes paid for individually significant jurisdictions. The ASU is effective for fiscal years beginning after December 15, 2024. The Company does not expect this guidance to have a significant impact on the disclosures within its condensed consolidated financial statements.

4. Revenues

Disaggregation of RevenuesDisaggregated revenues for the three and six months ended June 30, 2025 and 2024 were as follows:Three Months Ended June 30,Six Months Ended June 30,2025202420252024(in thousands)Cement$52,181 $45,788 $109,349 $94,077 Coiled tubing25,072 26,230 54,928 56,949 Wireline32,958 27,953 62,561 55,838 Service revenues$110,211 $99,971 $226,838 $206,864 Tools$37,040 $32,430 $70,879 $67,657 Product revenues$37,040 $32,430 $70,879 $67,657 Total revenues$147,251 $132,401 $297,717 $274,521 The Company recognizes revenues from the sales of products at a point in time and revenues from the sales of services over time.

5. Inventories

Inventories, consisting primarily of finished goods and raw materials, are stated at the lower of cost or net realizable value. Cost is determined on an average cost basis. The Company reviews its inventory balances and writes down its inventory for estimated obsolescence or excess inventory equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. The reserve for obsolescence was $4.5 million and 

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$5.5 million at June 30, 2025 and December 31, 2024, respectively