Company: NINE
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001532286-25-000026
Chunk: 46

Company: Nine Energy Service, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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 (gain) on extinguishment of debt, and (vii) the provision (benefit) for deferred income taxes. We define total capital as book value of equity (deficit) plus the book value of debt less balance sheet cash and cash equivalents. We compute and use the average of the current and prior period-end total capital in determining Adjusted ROIC.

Management believes Adjusted ROIC provides useful information to us and our investors regarding our financial condition and results of operations because it quantifies how well we generate operating income relative to the capital we have invested in our business and illustrates the profitability of a business or project taking into account the capital invested. Management uses Adjusted ROIC to assist them in capital resource allocation decisions and in evaluating business performance. Although Adjusted ROIC is commonly used as a measure of capital efficiency, definitions of Adjusted ROIC differ, and our computation of Adjusted ROIC may not be comparable to other similarly titled measures of other companies.

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The following table provides our calculation of Adjusted ROIC for the three and nine months ended September 30, 2025 and 2024. The following table also presents ROIC (defined as net income (loss), divided by average total capital) and a reconciliation of the non-GAAP financial measure of adjusted after-tax net operating profit (loss) to the most directly comparable GAAP measure of net income (loss), in each case 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)Net loss$(14,647)$(10,143)$(32,099)$(32,239)Add back:Interest expense13,714 12,879 41,319 38,453 Interest income(114)(196)(572)(660)Restructuring charges33 177 339 519 Adjusted after-tax net operating income (loss)$(1,014)$2,717 $8,987 $6,073 Total capital as of prior period-end:Total stockholders’ deficit$(81,737)$(49,715)$(66,064)$(35,630)Total debt350,275 352,730 350,580 359,859 Less cash and cash equivalents(14,216)(26,027)(27,880)(30,840)Total capital as of prior period-end$254,322 $276,988