Company: NINE
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001532286-25-000016
Chunk: 118

Company: Nine Energy Service, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 2
Chunk 118
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5202420252024(in thousands)Calculation of gross profit:Revenues$147,251 $132,401 $297,717 $274,521 Cost of revenues (exclusive of depreciation and amortization shown separately below)121,439 112,048 243,909 228,054 Depreciation (related to cost of revenues)5,683 6,139 11,406 12,402 Amortization of intangibles2,796 2,796 5,592 5,592 Gross profit$17,333 $11,418 $36,810 $28,473 Adjusted gross profit reconciliation:Gross profit$17,333 $11,418 $36,810 $28,473 Depreciation (related to cost of revenues)5,683 6,139 11,406 12,402 Amortization of intangibles2,796 2,796 5,592 5,592 Adjusted gross profit$25,812 $20,353 $53,808 $46,467 

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. Our principal uses of cash are to fund capital expenditures, service our outstanding debt (including semi-annual interest payments ($19.5 million based on amounts outstanding as of June 30, 2025) to the holders of the 2028 Notes (as defined and described below), which began on August 1, 2023), and fund our working capital requirements. Due to our high level of variable costs and the asset-light make-up of our business, we have historically been able to quickly implement cost-cutting measures and will continue to adapt as the market dictates. For example, in 2024, we implemented certain cost reduction and supply chain initiatives. These ongoing initiatives have helped reduce some of our largest material costs, and starting at the end of the second quarter of 2024, we began to see positive impacts, that have continued into 2025, on our earnings as a result of such efforts. We have also used cash to make open market repurchases of our debt and may, from time to time, continue to make such repurchases when it is opportunistic to do so to