Company: NINE
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001532286-25-000008
Chunk: 83

Company: Nine Energy Service, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 7
Chunk 83
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reciation

Depreciation expense decreased $3.5 million to $25.6 million in 2024. The decrease in comparison to 2023 was primarily due to a decrease in capital expenditures across certain lines of service over the last twelve months.

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Amortization of Intangibles

Amortization of intangibles, which was comprised of technology and customer relationships, decreased $0.3 million to $11.2 million in 2024. The decrease in comparison to 2023 was due to certain intangible assets being fully amortized over the last twelve months.

(Gain) Loss on Revaluation of Contingent Liability

We recorded a $0.1 million loss on the revaluation of contingent liability in 2024 compared to a $0.4 million loss in 2023. The losses for both periods were related to increases in the fair value of the earnout associated with our acquisition Frac Technology AS.

Non-Operating Expenses (Income)

Non-operating expenses increased $0.6 million to $49.8 million in 2024. The increase in comparison to 2023 was primarily attributed to a $0.4 million decrease in interest income earned on cash in 2024, as our average cash balance in 2024 decreased in comparison to 2024, coupled with a $0.2 million increase in interest expense on the 2028 Notes in 2024 compared to interest expense on the 2023 Notes (as defined and described below) and the 2028 Notes in 2023.

Provision (Benefit) for Income Taxes

Our effective tax rate was (0.5)% for 2024 and (1.8)% for 2023. Our tax provision for 2024 was primarily attributed to our income tax position in state and foreign tax jurisdictions.

Net Income (Loss) and Adjusted EBITDA

Net loss increased $8.9 million, or 28%, to $41.1 million, and Adjusted EBITDA decreased $19.8 million, or 27%, to $53.2 million for 2024. The changes were primarily due to the fluctuations in revenue and expenses discussed above. See “Non-GAAP Financial Measures” below for further information regarding Adjusted EBITDA.

Non-GAAP Financial Measures

Adjusted EBITDA

Adjusted EBITDA is a non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts