Company: NINE
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001532286-25-000008
Chunk: 82

Company: Nine Energy Service, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 7
Chunk 82
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 taxes198 585 (387)(66)%Net loss$(41,082)$(32,213)$(8,869)28 %

Revenues

Revenues decreased $55.4 million, or 9%, to $554.1 million in 2024. The decrease in comparison to 2023 was prevalent across all lines of service and was primarily due to pricing decreases coupled with changes in market conditions as the average U.S. rig count for 2024 decreased 5%, in comparison to 2023. More specifically, cement revenue (including pump downs) decreased $24.7 million, or 11%, coiled tubing revenue decreased $12.2 million, or 10%, and wireline revenue also decreased $5.6 million, or 5%, all due to pricing pressure throughout the year, in comparison to 2023. In addition, tools revenue decreased $12.9 million, or 9%, due to a decrease of 11% in stages, in comparison to 2023. 

Cost of Revenues (Exclusive of Depreciation and Amortization)

Cost of revenues decreased $34.0 million, or 7%, to $456.7 million in 2024. The decrease in comparison to 2023 was primarily driven by a reduction in activity for certain lines of service as described under “Revenues.” More specifically, the decrease was due to a $15.4 million decrease in materials installed and consumed while performing services, a $12.5 million decrease in employee related costs, and a $6.1 million decrease in other costs such as repair and maintenance, vehicle expense, and travel, in comparison to 2023.

Adjusted Gross Profit (Loss)

Adjusted gross profit decreased $21.4 million to $97.4 million in 2024 as a result of the factors described above under “Revenues” and “Cost of Revenues.”

General and Administrative Expenses

General and administrative expenses decreased $8.5 million to $51.3 million in 2024. The decrease in comparison to 2023 was primarily related to $6.4 million in costs associated with the Units offering in 2023 that did not occur in 2024. The decrease was also partially attributed to an $0.7 million decrease in employee costs, a $0.8 million decrease in marketing expenses, and a $0.6 million decrease in professional fees, each in comparison to 2023. 

Dep