Company: NINE
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001532286-25-000016
Chunk: 109

Company: Nine Energy Service, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 2
Chunk 109
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 by current and expected oil and natural gas prices, even with price improvements in oil and natural gas, operator activity may not materially increase, as operators remain focused on operating within their capital plans and uncertainty remains around supply and demand fundamentals.

We remain cautiously optimistic on the long-term outlook for the energy sector, and we believe there is potential upside for North American activity levels, especially in natural gas basins. We plan to play both offense and defense to improve revenue and margins in a lower rig count environment. This includes gaining market share with current and new customers, growing our international tools business, continuing research and development and technology advances, construction of our new completion tools facility, and potential expansion into new geographies. We are nimble and diversified in both our service and technology offerings and commodity exposure, which we believe has and will continue to allow us to navigate uncertain markets, while still being able to capitalize on any potential growth opportunities both domestically and internationally.

Results of Operations

Results for the Three Months Ended June 30, 2025 Compared to the Three Months Ended June 30, 2024 

 Three Months Ended June 30,  20252024ChangePercentage Change (in thousands, except percentage change)Revenues$147,251 $132,401 $14,850 11 %Cost of revenues (exclusive of depreciation and amortization shown separately below)121,439 112,048 9,391 8 %Adjusted gross profit$25,812 $20,353 $5,459 27 %General and administrative expenses$13,874 $12,482 $1,392 11 %Depreciation5,796 6,602 (806)(12)%Amortization of intangibles2,796 2,796 — — %Loss (gain) on revaluation of contingent liability48 (118)166 (141)%Loss (gain) on sale of property and equipment(80)27 (107)396 %Income (loss) from operations3,378 (1,436)4,814 335 %Non-operating expense14,223 12,466 1,757 14 %Loss before income taxes(10,845)(13,902)3,057 (22)%Provision (benefit) for income taxes(454)139 (593)427 %Net loss$(10,391)$(14,041)$3,650 (26