Company: NINE
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001532286-25-000016
Chunk: 50

Company: Nine Energy Service, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 50
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 and amortization, which represent non-cash expenses.

Management believes adjusted gross profit (loss) provides useful information to us and our investors regarding our financial condition and results of operation and helps management evaluate our operating performance by eliminating the impact of depreciation and amortization, which we do not consider indicative of our core operating performance. Adjusted gross profit (loss) should not be considered as an alternative to gross profit (loss), operating income (loss), or any other measure of financial performance calculated and presented in accordance with GAAP. Adjusted gross profit (loss) may not be comparable to similarly titled measures of other companies because other companies may not calculate adjusted gross profit (loss) or similarly titled measures in the same manner as we do.

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The following table presents a reconciliation of adjusted gross profit (loss) to GAAP gross profit (loss) for the three and six months ended June 30, 2025 and 2024:

Three Months Ended June 30,Six Months Ended June 30,2025202420252024(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