# EDGAR Filing Document

**Accession Number:** 0001958086
**File Stem:** 0001193125-25-248736
**Filing Date:** 2025-10
**Character Count:** 216968
**Document Hash:** a98c7603c775dca1ade84eb1ae2c4e82
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-248736.hdr.sgml**: 20251023

**ACCESSION NUMBER**: 0001193125-25-248736

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 87

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251023

**DATE AS OF CHANGE**: 20251023

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Core Laboratories Inc. /DE/
- **CENTRAL INDEX KEY:** 0001958086
- **STANDARD INDUSTRIAL CLASSIFICATION:** OIL, GAS FIELD SERVICES, NBC [1389]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41695
- **FILM NUMBER:** 251413034

**BUSINESS ADDRESS:**
- **STREET 1:** 6316 WINDFERN ROAD
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77040
- **BUSINESS PHONE:** 713-328-2673

**MAIL ADDRESS:**
- **STREET 1:** 6316 WINDFERN ROAD
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77040

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Core Laboratories Luxembourg S.A.
- **DATE OF NAME CHANGE:** 20221213

?xml version='1.0' encoding='ASCII'? 10-Q

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM** 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

**For the quarterly period ended** **September 30,** 2025

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________ to ______________

Commission File Number: 001-41695

CORE LABORATORIES INC.

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| Delaware | 98-1164194 |
| (State or other jurisdiction of<br>incorporation or organization) | (I.R.S. Employer Identification No.) |
| 6316 Windfern Road |  |
| Houston**,** TX | 77040 |
| (Address of principal executive offices) | (Zip Code) |

---

**(**713**)** 328-2673

(Registrant's telephone number, including area code)

**None**

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

---

| | |
|:---|:---|
| **Title of each class** | **Name of each exchange on which registered** |
| Common Stock (par value $0.01)<br> CLB | New York Stock Exchange |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ <br>

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of common stock of the registrant, par value $0.01 per share, outstanding at October 17, 2025 was 46,563,387.

------

**CORE LABORATORIES INC.**

**FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2025**

**INDEX**

**PART I - FINANCIAL INFORMATION**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| [<u>Item 1.</u>](#item_1_financial_statements) | [<u>Financial Statements</u>](#item_1_financial_statements) |  |
|  | [<u>Consolidated Balance Sheets at September 30, 2025 (Unaudited) and December 31, 2024</u>](#consolidated_balance_sheets) | 3 |
|  | [<u>Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2025 and 2024</u>](#consolidated_statements_operation3mths)[<u>(Unaudited)</u>](#consolidated_statements_operation3mths) | 4 |
|  | [<u>Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2025 and 2024 (</u>](#consolidated_statements_comprehensive_in)[<u>Unaudited)</u>](#consolidated_statements_comprehensive_in) | 6 |
|  | [<u>Consolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30, 2025 and 2024</u>](#consolidated_statements_equity)[<u>(Unaudited)</u>](#consolidated_statements_equity) | 7 |
|  | [<u>Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024</u>](#consolidated_statements_cash_flows)[<u>(Unaudited)</u>](#consolidated_statements_cash_flows) | 9 |
|  | [<u>Notes to the Interim Consolidated Financial Statements (Unaudited)</u>](#notes_to_unaudited_consolidated_interim_) | 10 |
| [<u>Item 2.</u>](#item_2_managements_discussion_analysis_f) | [<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](#item_2_managements_discussion_analysis_f) | 21 |
| [<u>Item 3.</u>](#item_3__quantitative_and_qualitative_dis) | [<u>Quantitative and Qualitative Disclosures About Market Risk</u>](#item_3__quantitative_and_qualitative_dis) | 35 |
| [<u>Item 4.</u>](#item_4__controls_and_procedures) | [<u>Controls and Procedures</u>](#item_4__controls_and_procedures) | 35 |
| **PART II - OTHER INFORMATION** | **PART II - OTHER INFORMATION** | **PART II - OTHER INFORMATION** |
| [<u>Item 1.</u>](#item_1_legal_proceedings) | [<u>Legal Proceedings</u>](#item_1_legal_proceedings) | 35 |
| [<u>Item 1A.</u>](#item_1a_risk_factors) | [<u>Risk Factors</u>](#item_1a_risk_factors) | 35 |
| [<u>Item 2.</u>](#item_2_unregistered_sales_equity_securit) | [<u>Unregistered Sales of Equity Securities and Use of Proceeds</u>](#item_2_unregistered_sales_equity_securit) | 36 |
| [<u>Item 5.</u>](#item_5_other_info) | [<u>Other Information</u>](#item_5_other_info) | 37 |
| [<u>Item 6.</u>](#item_6_exhibits) | [<u>Exhibits</u>](#item_6_exhibits) | 38 |
|  | [<u>Signature</u>](#signature) | 39 |

---

------

**PART I - FINANCIAL INFORMATION**

**Item 1. Financial Statements**

**CORE LABORATORIES INC.**

**CONSOLIDATED BALANCE SHEETS**

**(In thousands, except share and per share data)**

---

| | | |
|:---|:---|:---|
|  | **September 30,<br>2025** | **December 31,<br>2024** |
|  | **(Unaudited)** |  |
| **ASSETS** |  |  |
| CURRENT ASSETS: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $25629 | $19157 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net of allowance for credit losses <br>&nbsp;&nbsp;&nbsp;&nbsp; of $5,296 and $3,192 at 2025 and 2024, respectively | 110258 | 111761 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 58241 | 59402 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 10056 | 10176 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes receivable | 14716 | 15594 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 8014 | 10516 |
| TOTAL CURRENT ASSETS | 226914 | 226606 |
| PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation <br>&nbsp;&nbsp;&nbsp;&nbsp; of $321,113 and $314,317 at 2025 and 2024, respectively | 98031 | 97063 |
| RIGHT OF USE ASSETS | 53980 | 56488 |
| INTANGIBLES, net of accumulated amortization and impairment <br>&nbsp;&nbsp;&nbsp;&nbsp; of $19,470 and $19,326 at 2025 and 2024, respectively | 6107 | 6403 |
| GOODWILL | 100012 | 99445 |
| DEFERRED TAX ASSETS, net | 70506 | 69613 |
| OTHER ASSETS | 35810 | 34788 |
| TOTAL ASSETS | $591360 | $590406 |
| **LIABILITIES AND EQUITY** |  |  |
| CURRENT LIABILITIES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $36945 | $34549 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued payroll and related costs | 23363 | 22901 |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxes other than payroll and income | 3852 | 7106 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unearned revenues | 7258 | 9332 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | 11474 | 10690 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | 3513 | 4851 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | 9338 | 8157 |
| TOTAL CURRENT LIABILITIES | 95743 | 97586 |
| LONG-TERM DEBT, net | 114103 | 126111 |
| LONG-TERM OPERATING LEASE LIABILITIES | 41525 | 43343 |
| DEFERRED COMPENSATION | 31054 | 31115 |
| DEFERRED TAX LIABILITIES, net | 10102 | 13783 |
| OTHER LONG-TERM LIABILITIES | 21445 | 20732 |
| COMMITMENTS AND CONTINGENCIES |  |  |
| EQUITY: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Preference stock, 6,000,000 shares authorized, $0.01 par value; <br>none issued or outstanding |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, 200,000,000 shares authorized, $0.01 par value,<br> 46,966,868 issued and 46,086,944 outstanding at 2025; 46,966,868 issued and 46,826,820 outstanding at 2024 | 470 | 470 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 113874 | 109547 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 173598 | 150280 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) | (5984) | (5769) |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury stock (at cost), 879,924 and 140,048 shares at 2025 and 2024, respectively | (10611) | (2537) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Core Laboratories Inc. shareholders' equity | 271347 | 251991 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-controlling interest | 6041 | 5745 |
| TOTAL EQUITY | 277388 | 257736 |
| TOTAL LIABILITIES AND EQUITY | $591360 | $590406 |

---

The accompanying notes are an integral part of these interim consolidated financial statements.

[<u>Return to Index</u>](#index)

------

**CORE LABORATORIES INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**(In thousands, except per share data)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **September 30,** | **September 30,** |
|  | **2025** | **2024** |
|  | **(Unaudited)** | **(Unaudited)** |
| REVENUE: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Services | $101125 | $98842 |
| &nbsp;&nbsp;&nbsp;&nbsp;Product sales | 33396 | 35555 |
| Total revenue | 134521 | 134397 |
| OPERATING EXPENSES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of services, exclusive of depreciation expense shown below | 74896 | 75503 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of product sales, exclusive of depreciation expense shown below | 30005 | 31302 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expense, exclusive of depreciation expense shown below | 10688 | 8642 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 3529 | 3551 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization | 65 | 125 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other (income) expense, net | (5590) | (4529) |
| OPERATING INCOME | 20928 | 19803 |
| Interest expense | 2650 | 3108 |
| Income before income taxes | 18278 | 16695 |
| Income tax expense | 3754 | 4691 |
| Net income | 14524 | 12004 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to non-controlling interest | 285 | 259 |
| Net income attributable to Core Laboratories Inc. | $14239 | $11745 |
| EARNINGS PER SHARE INFORMATION: |  |  |
| Basic earnings per share | $0.31 | $0.26 |
| Basic earnings per share attributable to Core Laboratories Inc. | $0.31 | $0.25 |
| Diluted earnings per share | $0.31 | $0.25 |
| Diluted earnings per share attributable to Core Laboratories Inc. | $0.30 | $0.25 |
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |  |  |
| Basic | 46263 | 46922 |
| Diluted | 47078 | 47820 |

---

The accompanying notes are an integral part of these interim consolidated financial statements.

[<u>Return to Index</u>](#index)

------

**CORE LABORATORIES INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**(In thousands, except per share data)**

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** |
|  | **2025** | **2024** |
|  | **(Unaudited)** | **(Unaudited)** |
| REVENUE: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Services | $292435 | $291674 |
| &nbsp;&nbsp;&nbsp;&nbsp;Product sales | 95830 | 102937 |
| Total revenue | 388265 | 394611 |
| OPERATING EXPENSES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of services, exclusive of depreciation expense shown below | 221929 | 224191 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of product sales, exclusive of depreciation expense shown below | 86142 | 90132 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expense, exclusive of depreciation expense shown below | 34799 | 30690 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 10683 | 10909 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization | 298 | 380 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other (income) expense, net | (6222) | (6073) |
| OPERATING INCOME | 40636 | 44382 |
| Interest expense | 7963 | 9740 |
| Income before income taxes | 32673 | 34642 |
| Income tax expense | 7411 | 9958 |
| Net income | 25262 | 24684 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to non-controlling interest | 541 | 687 |
| Net income attributable to Core Laboratories Inc. | $24721 | $23997 |
| EARNINGS PER SHARE INFORMATION: |  |  |
| Basic earnings per share | $0.54 | $0.53 |
| Basic earnings per share attributable to Core Laboratories Inc. | $0.53 | $0.51 |
| Diluted earnings per share | $0.53 | $0.52 |
| Diluted earnings per share attributable to Core Laboratories Inc. | $0.52 | $0.50 |
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |  |  |
| Basic | 46552 | 46897 |
| Diluted | 47381 | 47690 |

---

The accompanying notes are an integral part of these interim consolidated financial statements.

[<u>Return to Index</u>](#index)

------

**CORE LABORATORIES INC.**

**CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME**

**(In thousands)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| Net income | $14524 | $12004 | $25262 | $24684 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate swap amount reclassified to net income | (108) | (235) | (489) | (780) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax benefit on interest rate swaps reclassified to net income | 24 | 50 | 103 | 164 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest rate swaps | (84) | (185) | (386) | (616) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pension and other postretirement benefit plans: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of actuarial gain reclassified to net income | 77 | 63 | 232 | 191 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax expense on pension and other postretirement benefit plans reclassified to net income | (20) | (15) | (61) | (49) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total pension and other postretirement benefit plans | 57 | 48 | 171 | 142 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive income (loss) | (27) | (137) | (215) | (474) |
| Comprehensive income | 14497 | 11867 | 25047 | 24210 |
| &nbsp;&nbsp;&nbsp;&nbsp;Comprehensive income attributable to non-controlling interest | 285 | 259 | 541 | 687 |
| Comprehensive income attributable to Core Laboratories Inc. | $14212 | $11608 | $24506 | $23523 |

---

The accompanying notes are an integral part of these interim consolidated financial statements.

[<u>Return to Index</u>](#index)

------

**CORE LABORATORIES INC.**

**CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY**

**(In thousands, except share and per share data)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| **Common Stock** |  |  |  |  |
| Balance at Beginning of Period | $470 | $469 | $470 | $469 |
| Balance at End of Period | $470 | $469 | $470 | $469 |
| **Additional Paid-In Capital** |  |  |  |  |
| Balance at Beginning of Period | $112763 | $113479 | $109547 | $110011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 1111 | (869) | 4327 | 2599 |
| Balance at End of Period | $113874 | $112610 | $113874 | $112610 |
| **Retained Earnings** |  |  |  |  |
| Balance at Beginning of Period | $159824 | $132070 | $150280 | $120756 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends paid | (465) | (469) | (1403) | (1407) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to Core Laboratories Inc. | 14239 | 11745 | 24721 | 23997 |
| Balance at End of Period | $173598 | $143346 | $173598 | $143346 |
| **Accumulated Other Comprehensive Income (Loss)** |  |  |  |  |
| Balance at Beginning of Period | $(5957) | $(5309) | $(5769) | $(4972) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps, net of income taxes | (84) | (185) | (386) | (616) |
| &nbsp;&nbsp;&nbsp;&nbsp;Pension and other postretirement benefit plans, net of income taxes | 57 | 48 | 171 | 142 |
| Balance at End of Period | $(5984) | $(5446) | $(5984) | $(5446) |
| **Treasury Stock** |  |  |  |  |
| Balance at Beginning of Period | $(5817) | $(435) | $(2537) | $(1449) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 215 | 394 | 1696 | 1614 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchase of common stock | (5009) | (196) | (9770) | (402) |
| Balance at End of Period | $(10611) | $(237) | $(10611) | $(237) |
| **Non-Controlling Interest** |  |  |  |  |
| Balance at Beginning of Period | $6020 | $5420 | $5745 | $4992 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-controlling interest contribution |  |  | 19 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-controlling interest dividend | (264) |  | (264) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to non-controlling interest | 285 | 259 | 541 | 687 |
| Balance at End of Period | $6041 | $5679 | $6041 | $5679 |
| **Total Equity** |  |  |  |  |
| Balance at Beginning of Period | $267303 | $245694 | $257736 | $229807 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 1326 | (475) | 6023 | 4213 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-controlling interest contribution |  |  | 19 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-controlling interest dividend | (264) |  | (264) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends paid | (465) | (469) | (1403) | (1407) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | 14524 | 12004 | 25262 | 24684 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps, net of income taxes | (84) | (185) | (386) | (616) |
| &nbsp;&nbsp;&nbsp;&nbsp;Pension and other postretirement benefit plans, net of income taxes | 57 | 48 | 171 | 142 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchase of common stock | (5009) | (196) | (9770) | (402) |
| Balance at End of Period | $277388 | $256421 | $277388 | $256421 |
| **Cash Dividends per Share** | $**0.01** | $**0.01** | $**0.03** | $**0.03** |

---

The accompanying notes are an integral part of these interim consolidated financial statements.

[<u>Return to Index</u>](#index)

------

**CORE LABORATORIES INC.**

**CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Continued)**

**(In thousands, except share and per share data)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| **Common Stock - Number of shares issued** |  |  |  |  |
| Balance at Beginning of Period | 46966868 | 46938557 | 46966868 | 46938557 |
| Balance at End of Period | 46966868 | 46938557 | 46966868 | 46938557 |
| **Treasury Stock - Number of shares** |  |  |  |  |
| Balance at Beginning of Period | (430078) | (25862) | (140048) | (82021) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 12402 | 23242 | 91602 | 92313 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchase of common stock | (462248) | (8546) | (831478) | (21458) |
| Balance at End of Period | (879924) | (11166) | (879924) | (11166) |
| **Common Stock - Number of shares outstanding** |  |  |  |  |
| Balance at Beginning of Period | 46536790 | 46912695 | 46826820 | 46856536 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 12402 | 23242 | 91602 | 92313 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchase of common stock | (462248) | (8546) | (831478) | (21458) |
| Balance at End of Period | 46086944 | 46927391 | 46086944 | 46927391 |

---

The accompanying notes are an integral part of these interim consolidated financial statements.

[<u>Return to Index</u>](#index)

------

**CORE LABORATORIES INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(In thousands)**

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** |
|  | **2025** | **2024** |
|  | **(Unaudited)** | **(Unaudited)** |
| CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |
| &nbsp;&nbsp;Net income | $25262 | $24684 |
| &nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities: | &nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 6023 | 4213 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 10981 | 11289 |
| &nbsp;&nbsp;&nbsp;&nbsp;Assets write-down | 34 | 1110 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventory write-off and obsolescence | 2429 | 1015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 2152 | 1222 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in value of life insurance policies | (1851) | (3188) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (4573) | 102 |
| &nbsp;&nbsp;&nbsp;&nbsp;Insurance recovery on property, plant and equipment | (6830) | (2102) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other non-cash items | 852 | 256 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (615) | (9461) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (1268) | 5197 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (797) | (4357) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | (351) | (205) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 1284 | (373) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | (3370) | 2392 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unearned revenues | (2074) | 2453 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 1797 | 1526 |
| Net cash provided by operating activities | 29085 | 35773 |
| CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |
| &nbsp;&nbsp;Capital expenditures - operations | (8265) | (8647) |
| &nbsp;&nbsp;Capital expenditures - rebuilding of Aberdeen facility | (2672) |  |
| &nbsp;&nbsp;Proceeds from insurance recovery - Aberdeen facility | 9951 | 2102 |
| &nbsp;&nbsp;Patents and other intangibles | (2) |  |
| &nbsp;&nbsp;Acquisitions, net of cash acquired | (617) |  |
| &nbsp;&nbsp;Proceeds from sale of assets | 2348 | 934 |
| &nbsp;&nbsp;Net proceeds on life insurance policies | 778 | 2776 |
| Net cash provided by (used in) investing activities | 1521 | (2835) |
| CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |
| &nbsp;&nbsp;Repayment of long-term debt | (47000) | (62000) |
| &nbsp;&nbsp;Proceeds from long-term debt | 36000 | 38000 |
| &nbsp;&nbsp;Debt issuance costs | (1706) |  |
| &nbsp;&nbsp;Dividends paid | (1403) | (1407) |
| &nbsp;&nbsp;Repurchase of common stock | (9770) | (402) |
| &nbsp;&nbsp;Equity related transaction costs |  | (756) |
| &nbsp;&nbsp;Other financing activity | (255) | (19) |
| Net cash used in financing activities | (24134) | (26584) |
| NET CHANGE IN CASH AND CASH EQUIVALENTS | 6472 | 6354 |
| CASH AND CASH EQUIVALENTS, beginning of period | 19157 | 15120 |
| CASH AND CASH EQUIVALENTS, end of period | $25629 | $21474 |
| Supplemental disclosures of cash flow information: |  |  |
| &nbsp;&nbsp;Cash payments for interest | $6553 | $8741 |
| &nbsp;&nbsp;Cash payments for income taxes | $9535 | $11892 |
| Non-cash investing and financing activities: |  |  |
| &nbsp;&nbsp;Capital expenditures incurred but not paid for as of the end of the period | $1006 | $1591 |

---

The accompanying notes are an integral part of these interim consolidated financial statements.

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**CORE LABORATORIES INC.**

**NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

**1. DESCRIPTION OF BUSINESS** 

References to "Core Lab", "Core Laboratories", the "Company", "we", "our" and similar phrases are used throughout this Quarterly Report on Form 10-Q ("Quarterly Report") and relate collectively to Core Laboratories Inc. and its consolidated subsidiaries.

We operate our business in two segments: (1) Reservoir Description and (2) Production Enhancement. These complementary operating segments provide different services and products and utilize different technologies for evaluating and improving reservoir performance and increasing oil and gas recovery from new and existing fields. For a description of the types of services and products offered by these operating segments, see Note 16 - S*egment Reporting*.

**2. SIGNIFICANT ACCOUNTING POLICIES UPDATE**

***Basis of Presentation and Principles of Consolidation***

The accompanying unaudited interim consolidated financial statements include the accounts of Core Laboratories Inc. and its subsidiaries for which we have a controlling voting interest and/or a controlling financial interest. These financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP") for interim financial information using the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all of the information and footnote disclosures required by U.S. GAAP for the annual financial statements and should be read in conjunction with the audited financial statements and notes thereto included in Core Laboratories Inc.'s Annual Report on Form 10-K for the year ended December 31, 2024, including Note 2 - *Summary of Significant Accounting Policies.* Core Laboratories Inc.'s balance sheet information for the year ended December 31, 2024, was derived from the 2024 audited consolidated financial statements. There have been no changes to the accounting policies during the nine months ended September 30, 2025.

Core Laboratories Inc. uses the equity method of accounting for investments in which it has less than a majority interest and does not exercise control but does exert significant influence. Non-controlling interests have been recorded to reflect outside ownership attributable to consolidated subsidiaries that are less than 100% owned. All inter-company transactions and balances have been eliminated in consolidation.

In the opinion of management, all adjustments considered necessary for a fair statement of the results for the interim periods presented have been included in these financial statements. Furthermore, the operating results presented for the three and nine months ended September 30, 2025, may not necessarily be indicative of the results that may be expected for the year ending December 31, 2025.

Certain reclassifications were made to prior period amounts in order to conform to the current period presentations. These reclassifications had no impact on the reported net income or cash flows for the three and nine months ended September 30, 2024.

***Property, Plant and Equipment***

We review our long-lived assets ("LLA") for impairment when events or changes in circumstances indicate that their net book value may not be recovered over their remaining service lives. Indicators of possible impairment may include significant declines in activity levels in regions where specific assets or groups of assets are located, extended periods of idle use, declining revenue or cash flow or overall changes in general market conditions.

The geopolitical conflict between Russia and Ukraine, which began in February 2022 and has continued through September 30, 2025, has resulted in disruptions to our operations in Russia and Ukraine. As of September 30, 2025, our

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laboratory facilities, offices, and locations in Russia and Ukraine continued to operate with no significant impact to local business operations. Therefore, we determined there was no triggering event for LLA impairment in Russia and Ukraine, and no impairment assessments have been performed as of September 30, 2025.

***Recent Accounting Pronouncements*** 

*Issued But Not Yet Effective* 

In December 2023, FASB issued ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures to improve transparency of income tax disclosures, primarily by requiring consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. The amendment is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The amendment should be applied prospectively; however, retrospective application is permitted. Upon adoption, our disclosures regarding income taxes will be expanded accordingly.

In November 2024, FASB issued ASU 2024-03 Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40) to improve disclosures about a public business entity's expenses, by providing more detailed information about the types of expenses in commonly presented expense captions. As amended by ASU 2025-01 issued in January 2025, the amendment is effective for annual periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendment may be applied prospectively or retrospectively. Upon adoption, our disclosures regarding expenses will be expanded.

In July 2025, FASB issued ASU 2025-05 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which allows public business entities to apply a practical expedient when estimating expected credit losses that assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset. The amendment is effective for annual and interim periods beginning after December 15, 2025. Early adoption is permitted. The amendment will be applied prospectively. Upon adoption, our disclosures regarding estimating expected credit losses will be expanded.

**3. ACQUISITIONS AND DIVESTURES**

We had no significant business acquisitions or divestures during the three and nine months ended September 30, 2025 and 2024.

Subsequent to the quarter ending September 30, 2025, on October 1, 2025, we acquired 100% of the equity interests in Solintec Consultoria E Servicos De Geologia Ltda., a Brazilian limited liability company and a leading provider of geological services to the region's oil and gas industry. The acquisition is included in our Reservoir Description operating segment.

The total purchase price is comprised of an initial cash payment of $2.3 million plus up to $3.7 million of additional contingent cash consideration, payable in annual installments, provided certain performance targets are achieved over the two-year period following closing.

We have not finalized the assessment of the fair values of assets acquired, including intangible assets, and liabilities assumed or the resulting goodwill and its taxability. Fair value estimates of certain assets and liabilities require more current financial information or are based on significant judgments and assumptions. Our estimates of acquisition date fair value will be adjusted where required as additional information is received during the measurement period subsequent to the acquisition date, not to exceed one year.

**4. CONTRACT ASSETS AND LIABILITIES**

The balance of contract assets and liabilities consisted of the following (in thousands):

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---

| | | |
|:---|:---|:---|
|  | **September 30,<br>2025** | **December 31,<br>2024** |
| Contract assets: |  |  |
| &nbsp;&nbsp;Current | $1162 | $370 |
|  | $1162 | $370 |
| Contract liabilities: |  |  |
| &nbsp;&nbsp;Current | $426 | $560 |
|  | $426 | $560 |

---

---

| | |
|:---|:---|
|  | **September 30,<br>2025** |
| Estimate of when contract liabilities will be recognized as revenue: |  |
| &nbsp;&nbsp;Within 12 months | $426 |

---

The current portion of contract assets is included in our accounts receivable. The current portion of contract liabilities is included in unearned revenues and, as applicable, the non-current portion of contract liabilities is included in other long-term liabilities.

We did not recognize any impairment losses on our contract assets during the three and nine months ended September 30, 2025 and 2024.

**5. INVENTORIES**

Inventories consist of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | **September 30,<br>2025** | **December 31,<br>2024** |
| Finished goods | $28940 | $27127 |
| Parts and materials | 26525 | 28953 |
| Work in progress | 2776 | 3322 |
| &nbsp;&nbsp; Total inventories | $58241 | $59402 |

---

We include freight costs incurred for shipping inventory to our clients in the cost of product sales caption in the accompanying consolidated statements of operations.

**6. LEASES**

We have operating leases primarily consisting of office and lab space, machinery and equipment and vehicles. We entered into a sublease agreement in 2023 that was terminated at the beginning of 2025, for existing office and lab space in Calgary, Alberta, Canada.

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The components of lease expense and other information are as follows (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **Consolidated Statements of Operations:** |  |  |  |  |
| Operating lease expense | $4243 | $4296 | $12589 | $12942 |
| Short-term lease expense | 453 | 393 | 1334 | 1230 |
| Variable lease expense | 425 | 212 | 1284 | 1032 |
| Sublease income |  | (56) |  | (169) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total lease expense | $5121 | $4845 | $15207 | $15035 |
| **Consolidated Statements of Cash Flows:** |  |  |  |  |
| &nbsp;&nbsp; Operating cash flows - operating leases payments | $3927 | $3882 | $12822 | $12791 |
| &nbsp;&nbsp; Right of use assets obtained (released) in exchange for<br>operating lease obligations | $2184 | $3647 | $7060 | $10606 |
| **Other information:** |  |  |  |  |
| &nbsp;&nbsp; Weighted-average remaining lease term - operating leases | 8.19 years | 8.40 years | 8.19 years | 8.40 years |
| &nbsp;&nbsp; Weighted-average discount rate - operating leases | 5.48% | 5.41% | 5.48% | 5.41% |

---

Scheduled undiscounted lease payments for non-cancellable operating leases consist of the following (in thousands):

---

| | |
|:---|:---|
|  | **September 30, 2025** |
|  | **Operating Leases** |
| Remainder of 2025 | $3786 |
| 2026 | 12927 |
| 2027 | 10140 |
| 2028 | 7903 |
| 2029 | 5330 |
| Thereafter | 26146 |
| &nbsp;&nbsp;Total undiscounted lease payments | 66232 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Imputed interest | (13233) |
| &nbsp;&nbsp;Total operating lease liabilities | $52999 |

---

**7. LONG-TERM DEBT, NET**

We have no finance lease obligations. Debt is summarized in the following table (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Interest Rate** | **Maturity Date** | **September 30,<br>2025** | **December 31,<br>2024** |
| Credit Facility |  |  | $7000 | $18000 |
| 2021 Senior Notes Series A <sup>(1)</sup> | 4.09% | January 12, 2026 | 45000 | 45000 |
| 2021 Senior Notes Series B <sup>(1)</sup> | 4.38% | January 12, 2028 | 15000 | 15000 |
| 2023 Senior Notes Series A <sup>(2)</sup> | 7.25% | June 28, 2028 | 25000 | 25000 |
| 2023 Senior Notes Series B <sup>(2)</sup> | 7.50% | June 28, 2030 | 25000 | 25000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total long-term debt |  |  | 117000 | 128000 |
| Less: Debt issuance costs |  |  | (2897) | (1889) |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt, net |  |  | $114103 | $126111 |

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&nbsp;&nbsp;&nbsp;&nbsp;*(1) Interest is payable semi-annually on June 30 and December 30.*

&nbsp;&nbsp;&nbsp;&nbsp;*(2) Interest is payable semi-annually on March 28 and September 28.*

On July 22, 2025, we, along with our direct subsidiary Core Laboratories (U.S.) Interests Holdings, Inc. ("CLIH") entered into the Ninth Amended and Restated Credit Agreement (as amended, the "Credit Facility") for an aggregate borrowing commitment of $150.0 million with a $50.0 million "accordion" feature. Draws up to $100.0 million are available in the form of a revolving credit facility, and a single draw of $50.0 million is available in the form of a delayed draw term loan ("DDTL")

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through January 12, 2026. The DDTL is repayable in quarterly installments of $625 thousand and prepayments are permitted without penalty. Any remaining outstanding balances under the revolving credit facility and the DDTL are due at maturity on July 22, 2029, subject to springing maturity dates unless the Company's liquidity equals or exceeds the principal amount of each of the respective senior notes series that remain outstanding on each of the respective springing maturity dates as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)October 14, 2027, if any portion of the Company's 2021 Senior Notes Series B due January 12, 2028, in the aggregate principal amount of $15.0 million, remains outstanding on October 14, 2027, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)March 30, 2028, if any portion of the Company's 2023 Senior Notes Series A due June 28, 2028, in the aggregate principal amount of $25.0 million, remains outstanding on March 30, 2028.

There are no significant changes to other terms from the Eighth Amended and Restated Credit Agreement, including assets securing the debt, interest rates, and cross default provisions associated with the Senior Notes (as defined below), financial covenants or the interest coverage and leverage ratios as described below.

The Credit Facility is secured by first priority interests in (1) substantially all of the tangible and intangible personal property, and equity interest of CLIH and certain of the Company's U.S. and foreign subsidiary companies and (2) instruments evidencing intercompany indebtedness owing to the Company, CLIH and certain of the Company's U.S. and foreign subsidiary companies. Certain of our significant, wholly owned subsidiaries are guarantors or co-borrowers under the Credit Facility and Senior Notes.

Under the Credit Facility, the Secured Overnight Financing Rate ("SOFR") plus 2.00% to SOFR plus 3.00% will be applied to outstanding borrowings. The available capacity at any point in time is reduced by outstanding borrowings and outstanding letters of credit which totaled approximately $11.1 million at September 30, 2025, resulting in an available borrowing capacity under the Credit Facility of approximately $131.9 million. In addition to indebtedness under the Credit Facility, we had approximately $8.0 million of outstanding letters of credit and performance guarantees and bonds from other sources as of September 30, 2025.

The Credit Facility and Senior Notes include a cross-default provision, whereby a default under one agreement may trigger a default in the other agreements.

The terms of the Credit Facility and Senior Notes require us to meet certain covenants, including, but not limited to, an interest coverage ratio (calculated as consolidated EBITDA divided by interest expense) and a leverage ratio (calculated as consolidated net indebtedness divided by consolidated EBITDA), where consolidated EBITDA (as defined in each agreement) and interest expense are calculated using the most recent four fiscal quarters. The Credit Facility has more restrictive covenants with a minimum interest coverage ratio of 3.00 to 1.00 and permits a maximum leverage ratio of 2.50 to 1.00. The Credit Facility allows non-cash charges such as impairment of assets, stock compensation and other non-cash charges to be added back in the calculation of consolidated EBITDA. The terms of our Credit Facility also allow us to negotiate in good faith to amend any ratio or requirement to preserve the original intent of the agreement if any change in accounting principles would affect the computation of any financial ratio or covenant of the Credit Facility. In accordance with the terms of the Credit Facility, our leverage ratio is 1.10 and our interest coverage ratio is 7.86, each for the period ended September 30, 2025. We are in compliance with all covenants contained in our Credit Facility and Senior Notes as of September 30, 2025.

We, along with CLIH as issuer, have senior notes outstanding that were issued through private placement transactions. Series A and Series B of the 2021 Senior Notes were issued in 2021 (the "2021 Senior Notes"). Series A and Series B of the 2023 Senior Notes were issued in 2023 (the "2023 Senior Notes"). The 2021 Senior Notes and the 2023 Senior Notes are collectively the "Senior Notes". We intend to repay the 2021 Senior Notes Series A at maturity in January 2026 using borrowings under the Credit Facility; therefore, we continue to classify them as long-term debt.

See Note 11 - *Derivative Instruments and Hedging Activities* for additional information regarding interest rate swap agreements we have entered to fix the underlying risk-free rate on our Senior Notes.

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The estimated fair value of total debt at September 30, 2025 and December 31, 2024, approximated the book value of total debt. The fair value was estimated using Level 2 inputs by calculating the sum of the discounted future interest and principal payments through the maturity date.

**8. PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS**

Prior to January 2020, one of our subsidiaries provided a noncontributory defined benefit pension plan covering substantially all of our Dutch employees ("Dutch Plan") who were hired prior to 2000. This pension benefit was based on years of service and final pay or career average pay, depending on when the employee began participating. The Dutch Plan was curtailed prior to January 2020, and these employees have been moved into the Dutch defined contribution plan. However, the unconditional indexation for this group of participants continues for so long as they remain in active service with the Company.

The following table summarizes the components of net periodic pension cost under the Dutch Plan (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Interest cost | $386 | $352 | $1106 | $1054 |
| Expected return on plan assets | (312) | (314) | (893) | (891) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net periodic pension cost | $74 | $38 | $213 | $163 |

---

**9. COMMITMENTS AND CONTINGENCIES**

We have been and may, from time to time, be named as a defendant in legal actions that arise in the ordinary course of business. These include, but are not limited to, employment-related claims and contractual disputes or claims for personal injury or property damage which occur in connection with the provision of our services and products. A liability is accrued when a loss is both probable and can be reasonably estimated.

See Note 7 - *Long-term Debt, net* for amounts committed under letters of credit and performance guarantees and bonds.

**10. EQUITY**

***Treasury Stock***

During the three and nine months ended September 30, 2025, we distributed 12,402 and 91,602 shares, respectively, of treasury stock upon vesting of stock-based awards. During the three and nine months ended September 30, 2025, we repurchased 462,248 and 831,478 shares, respectively, of our common stock for $5.0 million and $9.8 million, respectively. The total repurchased shares include rights which were surrendered to us pursuant to the terms of a stock-based compensation plan in consideration of the participant's tax burdens resulting from the issuance of common stock under that plan. Rights surrendered to us were 4,461 and 16,915 shares valued at $47 thousand and $211 thousand for the three and nine months ended September 30, 2025, respectively. Such shares of common stock, unless canceled, may be reissued for a variety of purposes such as future acquisitions, non-employee director stock awards or employee stock awards.

***Dividend Policy***

In March, May and August 2025, we paid a quarterly cash dividend of $0.01 per share of common stock. In addition, on October 22, 2025, we declared a quarterly cash dividend of $0.01 per share of common stock for shareholders of record on November 3, 2025, and payable on November 24, 2025.

***Accumulated Other Comprehensive Income (Loss)***

Amounts recognized, net of income tax, in accumulated other comprehensive income (loss) consist of the following (in thousands):

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| | | |
|:---|:---|:---|
|  | **September 30,<br>2025** | **December 31,<br>2024** |
| Pension and other post-retirement benefit plans - unrecognized prior service costs and net actuarial loss | $(5719) | $(5890) |
| Interest rate swaps - net gain (loss) on fair value | (265) | 121 |
| &nbsp;&nbsp;Total accumulated other comprehensive income (loss) | $(5984) | $(5769) |

---

**11. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES**

We are exposed to market risks related to fluctuations in interest rates. To mitigate these risks, we may utilize derivative instruments in the form of interest rate swaps. We do not enter into derivative transactions for speculative purposes.

In March 2021, we entered into a forward interest rate swap agreement and carried the fair value of certain terminated variable-to-fixed swaps into the agreement in a "blend and extend" structured transaction. The purpose of this forward interest rate swap agreement is to fix the underlying risk-free rate, that would be associated with the anticipated issuance of new long-term debt by the Company in future periods. The forward interest rate swap would hedge the risk-free rate on forecasted long-term debt through March 2033. Risk associated with future changes in the 10-year LIBOR interest rates have been fixed up to a notional amount of $60.0 million with this instrument. The interest rate swap qualifies as a cash flow hedging instrument. This forward interest rate swap agreement was terminated and settled in April 2022. The hedging relationship is highly effective, therefore, the gain on the termination of the forward interest rate swap was included in accumulated other comprehensive income (loss). On June 28, 2023, the Company issued the 2023 Senior Notes in the aggregate principal amount of $50.0 million at fixed interest rates of 7.25% and 7.50%. The Company has elected to apply the optional expedient for hedging relationships affected by reference rate reform. Accordingly, no outstanding balance on the 2023 Senior Notes will preclude cash flow hedging with the existing LIBOR hedging instrument. A net loss of $0.3 million is included in accumulated other comprehensive income (loss) at September 30, 2025. The unamortized balance on this swap will be amortized into interest expense in accordance with the forecasted transactions or the scheduled interest payments on the 2023 Senior Notes and any future debt through March 2033.

The effect of interest rate swaps on the consolidated statements of operations is as follows (in thousands):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |  |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |  |
|  | **2025** | **2024** | **2025** | **2024** | **Income Statement <br>Classification** |
| **Derivatives designated as hedges:** | **Derivatives designated as hedges:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;5 year interest rate swap | $— | $5 | $(12) | $67 | Increase (decrease) to interest expense |
| &nbsp;&nbsp;&nbsp;&nbsp;10 year interest rate swap | (108) | (240) | (477) | (847) | Increase (decrease) to interest expense |
|  | $(108) | $(235) | $(489) | $(780) |  |

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**12. FINANCIAL INSTRUMENTS** 

The Company's only financial assets and liabilities which are measured at fair value on a recurring basis relate to certain aspects of the Company's benefit plans. We use the market approach to determine the fair value of these assets and liabilities using significant other observable inputs (Level 2) with the assistance of third-party specialists. We do not have any assets or liabilities measured at fair value on a recurring basis using quoted prices in an active market (Level 1) or significant unobservable inputs (Level 3). Gains and losses related to the fair value changes in the financial assets and liabilities are recorded in general and administrative expense in the consolidated statements of operations.

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The following table summarizes the fair value balances (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Fair Value Measurement at** | **Fair Value Measurement at** | **Fair Value Measurement at** |
|  |  | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
|  | **Total** | **Level 1** | **Level 2** | **Level 3** |
| Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Company owned life insurance policies <sup>(1)</sup> | $26518 | $— | $26518 | $— |
|  | $26518 | $— | $26518 | $— |
| Liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred compensation liabilities | $20536 | $— | $20536 | $— |
|  | $20536 | $— | $20536 | $— |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Fair Value Measurement at** | **Fair Value Measurement at** | **Fair Value Measurement at** |
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Total** | **Level 1** | **Level 2** | **Level 3** |
| Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Company owned life insurance policies <sup>(1)</sup> | $25435 | $— | $25435 | $— |
|  | $25435 | $— | $25435 | $— |
| Liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred compensation liabilities | $19103 | $— | $19103 | $— |
|  | $19103 | $— | $19103 | $— |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(1) Company owned life insurance policies have cash surrender value and are intended to assist in funding deferred compensation liabilities and other benefit plans.*

**13. OTHER (INCOME) EXPENSE, NET**

The components of other (income) expense, net, are as follows (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| (Gain) loss on sale of assets | $(146) | $364 | $(369) | $(390) |
| Results of non-consolidated subsidiaries | 194 | (108) | 401 | (207) |
| Foreign exchange (gain) loss, net | 354 | (239) | 841 | 435 |
| Rents and royalties | (8) | (882) | (24) | (1683) |
| Return on pension assets and other pension costs | (312) | (314) | (893) | (891) |
| Assets write-down, loss on lease abandonment and other exit costs |  |  | 707 | 1809 |
| Insurance recovery - business interruption and costs | (52) | (1151) | (1031) | (3481) |
| Insurance recovery - property, plant and equipment | (5253) | (2074) | (6830) | (2074) |
| Severance and other charges |  |  | 2256 | 824 |
| Other, net | (367) | (125) | (1280) | (415) |
| &nbsp;&nbsp;Total other (income) expense, net | $(5590) | $(4529) | $(6222) | $(6073) |

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During the nine months ended September 30, 2025 and 2024, as a result of consolidating and exiting certain facilities in the U.S. and other international locations, we recognized a write-down of the associated leasehold improvements, right of use assets and other assets and incurred lease abandonment and other exit costs of $0.7 million and $1.8 million, respectively.

In February 2024, we had a fire incident at our Aberdeen, U.K. facility and we have recorded insurance recovery associated with business interruptions, increase in cost of work, and loss on property and assets during the three and nine months ended September 30, 2025 and 2024. During the three months ended September 30, 2025, Core Lab reached final settlement with the insurance company and recorded a gain of approximately $5.2 million on the insurance recovery.

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Foreign exchange (gain) loss, net by currency is summarized in the following table (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| British Pound | $(48) | $(64) | $(108) | $6 |
| Canadian Dollar | 43 | (13) | (11) | 60 |
| Colombian Peso | (38) | 44 | (98) | 13 |
| Euro | (30) | 201 | 772 | 266 |
| Indonesian Rupiah | 100 | (332) | 133 | (107) |
| Russian Ruble | 144 | (4) | (189) | 10 |
| Swedish Krona | 5 | 23 | 128 | (7) |
| Other currencies, net | 178 | (94) | 214 | 194 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange (gain) loss, net | $354 | $(239) | $841 | $435 |

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**14. INCOME TAX EXPENSE (BENEFIT)**

The Company recorded an income tax expense of $3.8 million and $7.4 million for the three and nine months ended September 30, 2025, respectively compared to income tax expense of $4.7 million and $10.0 million for the three and nine months ended September 30, 2024, respectively. The effective tax rate for the three and nine months ended September 30, 2025, was 20.5% and 22.7%, respectively. The effective tax rate for the three and nine months ended September 30, 2024, was 28.1% and 28.8%, respectively. The effective tax rate for the three and nine months ended September 30, 2025, was primarily impacted by the earnings mix of jurisdictions subject to tax for the period and changes in uncertain tax position in certain jurisdictions which is discrete to the quarter. The tax rate for the three and nine months ended September 30, 2024 was impacted by the earnings mix of jurisdictions subject to tax for the period and items discrete to the quarter.

On July 4, 2025, the "One Big Beautiful Bill Act" (the "Act") was enacted into law. The Act includes significant provisions, including tax cut extensions and modifications to the U.S. and international tax frameworks. We are evaluating the impact of these legislative changes as additional guidance becomes available. Currently, we do not believe legislation will have a material impact on our tax expense.

**15. EARNINGS PER SHARE**

We compute basic earnings per share by dividing net income attributable to Core Laboratories Inc. by the number of weighted average common shares outstanding during the period. Diluted earnings per share includes the incremental effect of contingently issuable shares from performance and restricted stock awards, as determined using the treasury stock method.

The following table summarizes the calculation of weighted average common shares outstanding used in the computation of basic and diluted earnings per share (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Weighted average common shares outstanding - basic | 46263 | 46922 | 46552 | 46897 |
| Effect of dilutive securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted shares | 31 | 108 | 39 | 76 |
| &nbsp;&nbsp;&nbsp;&nbsp;Performance shares | 784 | 790 | 790 | 717 |
| Weighted average common shares outstanding - diluted | 47078 | 47820 | 47381 | 47690 |

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**16. SEGMENT REPORTING**

We operate our business in two segments. These complementary operating segments provide different services and products and utilize different technologies for evaluating and improving reservoir performance and increasing oil and gas recovery from new and existing fields.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Reservoir Description:* Encompasses the characterization of petroleum reservoir rock and reservoir fluids samples to increase production and improve recovery of crude oil and natural gas from our clients' reservoirs. We provide laboratory-based analytical and field services to characterize properties of crude oil and crude oil-derived products to the oil and gas industry. Services associated with these fluids include determining the quality and measuring the quantity of the reservoir fluids and their derived products, such as gasoline, diesel and biofuels. We also provide proprietary and joint industry studies based on these types of analyses and manufacture associated laboratory equipment. In addition, we provide reservoir description capabilities that support various activities associated with energy transition projects, including services that support carbon capture, utilization and storage, geothermal projects, and the evaluation and appraisal of mining activities around lithium and other elements necessary for energy storage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Production Enhancement:* Includes services and manufactured products associated with reservoir well completions, perforations, stimulation, production and well abandonment. We provide integrated diagnostic services to evaluate and monitor the effectiveness of well completions and to develop solutions aimed at increasing the effectiveness of enhanced oil recovery projects.

We use the same accounting policies to prepare our operating segment results as are used to prepare our consolidated financial statements. All interest and other non-operating income (expense) is attributable to Corporate & Other and is not allocated to specific operating segments.

Our chief operating decision maker ("CODM") is our Chief Executive Officer, who also serves as Chairman of the Board of Directors. The CODM uses revenue from unaffiliated clients and segment operating income to allocate resources, primarily for working capital, staffing and capital expenditures, during the annual budgeting process and monthly when comparing actual results to budgeted and forecasted results.

Summarized financial information of our operating segments is shown in the following table (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Reservoir<br>Description** | **Production<br>Enhancement** | **Corporate &<br>Other** <sup>(1)</sup> | **Consolidated** |
| **Three months ended September 30, 2025** |  |  |  |  |
| CODM Measure - Revenue from unaffiliated clients | $88224 | $46297 | $— | $134521 |
| Reconciliation of CODM measure - revenue from unaffiliated clients to segment operating income: | Reconciliation of CODM measure - revenue from unaffiliated clients to segment operating income: | Reconciliation of CODM measure - revenue from unaffiliated clients to segment operating income: | Reconciliation of CODM measure - revenue from unaffiliated clients to segment operating income: | Reconciliation of CODM measure - revenue from unaffiliated clients to segment operating income: |
| &nbsp;&nbsp;&nbsp;&nbsp;Inter-segment revenue | 79 | 41 | (120) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of services and product sales | 67156 | 37553 | 192 | 104901 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expense <sup>(2)</sup> | 6900 | 3788 |  | 10688 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 2594 | 1000 |  | 3594 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other operating (income) expense, net <sup>(3)</sup> | (5232) | (306) | (406) | (5944) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange (gain) loss, net <sup>(3)</sup> | 311 | (76) | 119 | 354 |
| &nbsp;&nbsp;&nbsp;&nbsp;CODM Measure - Segment operating income | 16574 | 4379 | (25) | 20928 |
| Supplemental Disclosures: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | 322047 | 143219 | 126094 | 591360 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | 2706 | 183 | 142 | 3031 |
| **Three months ended September 30, 2024** |  |  |  |  |
| CODM Measure - Revenue from unaffiliated clients | $88840 | $45557 | $— | $134397 |
| Reconciliation of CODM measure - revenue from unaffiliated clients to segment operating income: | Reconciliation of CODM measure - revenue from unaffiliated clients to segment operating income: | Reconciliation of CODM measure - revenue from unaffiliated clients to segment operating income: | Reconciliation of CODM measure - revenue from unaffiliated clients to segment operating income: | Reconciliation of CODM measure - revenue from unaffiliated clients to segment operating income: |
| &nbsp;&nbsp;&nbsp;&nbsp;Inter-segment revenue | 34 | 125 | (159) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of services and product sales | 68544 | 38490 | (229) | 106805 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expense <sup>(2)</sup> | 5542 | 3100 |  | 8642 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 2618 | 1058 |  | 3676 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other operating (income) expense, net <sup>(3)</sup> | (4160) | (81) | (49) | (4290) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange (gain) loss, net <sup>(3)</sup> | (157) | (117) | 35 | (239) |
| &nbsp;&nbsp;&nbsp;&nbsp;CODM Measure - Segment operating income | 16487 | 3232 | 84 | 19803 |
| Supplemental Disclosures: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | 322001 | 154995 | 123470 | 600466 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | 2273 | 427 | 29 | 2729 |
| **Nine months ended September 30, 2025** |  |  |  |  |
| CODM Measure - Revenue from unaffiliated clients | $255401 | $132864 | $— | $388265 |
| Reconciliation of CODM measure - revenue from unaffiliated clients to segment operating income: | Reconciliation of CODM measure - revenue from unaffiliated clients to segment operating income: | Reconciliation of CODM measure - revenue from unaffiliated clients to segment operating income: | Reconciliation of CODM measure - revenue from unaffiliated clients to segment operating income: | Reconciliation of CODM measure - revenue from unaffiliated clients to segment operating income: |
| &nbsp;&nbsp;&nbsp;&nbsp;Inter-segment revenue | 136 | 155 | (291) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of services and product sales | 198701 | 108690 | 680 | 308071 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expense <sup>(2)</sup> | 22754 | 12045 |  | 34799 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 7854 | 3127 |  | 10981 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other operating (income) expense, net <sup>(3)</sup> | (5576) | 143 | (1630) | (7063) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange (gain) loss, net <sup>(3)</sup> | 688 | (16) | 169 | 841 |
| &nbsp;&nbsp;&nbsp;&nbsp;CODM Measure - Segment operating income | 31116 | 9030 | 490 | 40636 |
| Supplemental Disclosures: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | 322047 | 143219 | 126094 | 591360 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | 8880 | 1887 | 170 | 10937 |
| **Nine months ended September 30, 2024** |  |  |  |  |
| CODM Measure - Revenue from unaffiliated clients | $259353 | $135258 | $— | $394611 |
| Reconciliation of CODM measure - revenue from unaffiliated clients to segment operating income: | Reconciliation of CODM measure - revenue from unaffiliated clients to segment operating income: | Reconciliation of CODM measure - revenue from unaffiliated clients to segment operating income: | Reconciliation of CODM measure - revenue from unaffiliated clients to segment operating income: | Reconciliation of CODM measure - revenue from unaffiliated clients to segment operating income: |
| &nbsp;&nbsp;&nbsp;&nbsp;Inter-segment revenue | 71 | 187 | (258) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of services and product sales | 201989 | 112207 | 127 | 314323 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expense <sup>(2)</sup> | 19842 | 10848 |  | 30690 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 8089 | 3200 |  | 11289 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other operating (income) expense, net <sup>(3)</sup> | (5753) | (55) | (700) | (6508) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange (gain) loss, net <sup>(3)</sup> | 434 | 36 | (35) | 435 |
| &nbsp;&nbsp;&nbsp;&nbsp;CODM Measure - Segment operating income | 34823 | 9209 | 350 | 44382 |
| Supplemental Disclosures: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | 322001 | 154995 | 123470 | 600466 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | 7481 | 914 | 252 | 8647 |

---

(1) "Corporate & Other" represents those items that are not directly related to a particular operating segment and eliminations.

*(2) General and administrative expense is presented as a total amount to the CODM and consists primarily of employee compensation costs, professional fees and information technology costs.*

*(3) Other remaining balance is included in other (income) expense, net. See Note 13 - Other (income) expense, net for further details.* 

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**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations**

The following discussion highlights the current operating environment and summarizes the financial position of Core Laboratories Inc. and its subsidiaries as of September 30, 2025, and should be read in conjunction with (i) the unaudited interim consolidated financial statements and notes thereto included elsewhere in this Quarterly Report and (ii) the audited consolidated financial statements and accompanying notes thereto included in our 2024 Annual Report on Form 10-K for the year ended December 31, 2024.

**General**

Core Laboratories Inc. is a Delaware corporation. It was established in 1936 and is one of the world's leading providers of proprietary and patented reservoir description and production enhancement services and products to the oil and gas industry. These services and products can enable our clients to evaluate and improve reservoir performance and increase oil and gas recovery from new and existing fields. We make measurements on reservoir rocks, reservoir fluids (crude oil, natural gas and water) and their derived products. In addition, we assist clients in evaluating subsurface targets associated with carbon capture and sequestration projects or initiatives. Core Laboratories Inc. has over 70 offices in more than 50 countries and employs approximately 3,300 people worldwide.

References to "Core Lab", "Core Laboratories", the "Company", "we", "our" and similar phrases are used throughout this Quarterly Report and relate collectively to Core Laboratories Inc. and its consolidated affiliates.

We operate our business in two segments. These complementary operating segments provide different services and products and utilize different technologies for evaluating and improving reservoir performance and increasing oil and gas recovery from new and existing fields.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Reservoir Description:* Encompasses the characterization of petroleum reservoir rock and reservoir fluids samples to increase production and improve recovery of crude oil and natural gas from our clients' reservoirs. We provide laboratory-based analytical and field services to characterize properties of crude oil and crude oil-derived products to the oil and gas industry. Services associated with these fluids include determining the quality and measuring the quantity of the reservoir fluids and their derived products, such as gasoline, diesel and biofuels. We also provide proprietary and joint industry studies based on these types of analyses and manufacture associated laboratory equipment. In addition, we provide reservoir description capabilities that support various activities associated with energy transition projects, including services that support carbon capture, utilization and storage, geothermal projects, and the evaluation and appraisal of mining activities around lithium and other elements necessary for energy storage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Production Enhancement:* Includes services and manufactured products associated with reservoir well completions, perforations, stimulation, production and well abandonment. We provide integrated diagnostic services to evaluate and monitor the effectiveness of well completions and to develop solutions aimed at increasing the effectiveness of enhanced oil recovery projects.

**Cautionary Statement Regarding Forward-Looking Statements**

This Quarterly Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 ("Exchange Act"). Certain statements contained in this Management's Discussion and Analysis of Financial Condition and Results of Operations section, including those under the headings "Outlook" and "Liquidity and Capital Resources", and in other parts of this Quarterly Report, are forward-looking. In addition, from time to time, we may publish forward-looking statements relating to such matters as anticipated financial performance, business prospects, technological developments, new products, research and development activities and similar matters. Forward-looking statements can be identified by the use of forward-looking terminology such as "may", "will", "believe", "expect", "anticipate", "estimate", "continue", or other similar words, including statements as to the intent, belief, or current expectations of our directors, officers, and management with respect to our future operations, performance, or positions or

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which contain other forward-looking information. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, no assurances can be given that the future results indicated, whether expressed or implied, will be achieved. While we believe that these statements are and will be accurate, our actual results and experience may differ materially from the anticipated results or other expectations expressed in our statements due to a variety of risks and uncertainties.

We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For a more detailed discussion of some of the foregoing risks and uncertainties, see Part II, "Item 1A - Risk Factors" of this Quarterly Report and "Item 1A - Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2024, filed by us with the Securities and Exchange Commission ("SEC").

**Outlook**

According to the latest reports from the U.S. Energy Information Administration, the International Energy Agency ("IEA") and the Organization of the Petroleum Exporting Countries and other oil producing nations ("OPEC+"), global demand for crude oil and natural gas is expected to continue increasing in 2025 and beyond. New tariffs announced by the U.S. during the year have triggered global trade negotiations and have raised the level of uncertainty for global economies. Additionally, OPEC+ affirmed their decision to proceed with a gradual return of 2.2 million barrels of daily production by removing the voluntary production restrictions established in 2023. The gradual increase in production from OPEC+ began in May 2025 with incremental increases in production expected through September 2026, which could create a surplus in supply and lead to lower commodity prices. OPEC also published an updated "compensation plan" which shows committed reductions in production for countries that produced volumes over their committed quotas since January 2024, which if complied with, should partially offset the scheduled increases to production quotas. In each announcement from OPEC+ regarding the production increases, they have also stated they will continue to hold monthly meetings to review market conditions, conformity, and compensation.

The uncertainty around the impact global trade negotiations may have on global economies combined with OPEC+'s announcement of increased production quotas has also increased the likelihood that global inventory levels of crude oil will rise, thereby contributing to weaker crude oil prices. The Company believes that activity levels associated with smaller-scale, short-cycle crude oil development projects will be more sensitive to a decrease and/or continued volatility of crude-oil prices. As such, we expect changes in crude oil prices will have a greater impact on drilling and completion activity levels in the U.S. onshore market. Outside the U.S., large-scale international oil and gas projects are expected to be more resilient to the near-term volatility of crude-oil prices, and the Company anticipates current client projects to continue as planned and additional projects scheduled this year to also be executed as planned. Recently, revised IEA field data showed that a steeper natural decline rate may represent a dominant long-term supply risk, where the agency projected a sustained upstream investment of approximately $540 to $570 billion per year is required to prevent disruptive declines and to avoid price volatility.

The ongoing geopolitical conflicts between Russia and Ukraine and in the Middle East, along with associated and expanded sanctions in the United States, the European Union, the United Kingdom and other countries continue to cause disruptions to traditional maritime supply chains and the trading of crude oil and derived products, such as diesel fuel. These disruptions to the trading and maritime transportation of crude oil, also impact the demand for the Company's associated laboratory assay services. Although demand for the Company's laboratory assay analysis services continued to increase during the first nine months of 2025, these geopolitical conflicts and associated sanctions continue to create a higher level of uncertainty. We have no way to predict the progress or outcome of these events, and any resulting government responses are fluid and beyond our control.

We continue to focus on large-scale core analyses and reservoir fluids characterization studies in most oil-producing regions across the globe, which include both newly developed fields and brownfield extensions in many offshore developments in both the U.S. and internationally. In the U.S., we are involved in projects with many of the onshore unconventional basins, as well as

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offshore projects in the Gulf of Mexico. Outside the U.S., we continue to work on many small and large-scale projects analyzing reservoir rock and fluid samples in every major producing region of the world. Notable larger projects are in locations such as offshore South America, Australia, West Africa and the Middle East. Analysis and measurement services also occur in every major producing region of the world. Additionally, some of our major clients have increased their investment in projects to capture and sequester carbon dioxide in recent years that has expanded the Company's activities on these projects beginning in 2024 and into 2025.

Our major clients continue to focus on capital management, return on invested capital, free cash flow and returning capital to their shareholders, as opposed to a focus on production growth. The companies adopting value versus volume metrics tend to be the more technologically sophisticated operators and form the foundation of Core Lab's worldwide client base. As oil and gas commodity prices stabilize in the mid-to-long-term, the Company expects our clients' activities associated with increasing oil and gas reserves and production levels will continue to increase in the coming years.

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**Results of Operations**

Our results of operations as a percentage of applicable revenue are as follows (in thousands):

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** |  |  |
|  | **2025** | **2025** | **2024** | **2024** | **$ Change** | **% Change** |
| REVENUE: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Services | $101125 | 75% | $98842 | 74% | $2283 | 2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Product sales | 33396 | 25% | 35555 | 26% | (2159) | (6)% |
| Total revenue | 134521 | 100% | 134397 | 100% | 124 | 0% |
| OPERATING EXPENSES: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of services, exclusive of depreciation expense shown below\* | 74896 | 74% | 75503 | 76% | (607) | (1)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of product sales, exclusive of depreciation expense shown below\* | 30005 | 90% | 31302 | 88% | (1297) | (4)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of services and product sales | 104901 | 78% | 106805 | 79% | (1904) | (2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expense, exclusive of depreciation expense shown below | 10688 | 8% | 8642 | 6% | 2046 | 24% |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 3594 | 3% | 3676 | 3% | (82) | (2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other (income) expense, net | (5590) | (4)% | (4529) | (3)% | (1061) | 23% |
| OPERATING INCOME | 20928 | 16% | 19803 | 15% | 1125 | 6% |
| Interest expense | 2650 | 2% | 3108 | 2% | (458) | (15)% |
| Income before income taxes | 18278 | 14% | 16695 | 12% | 1583 | 9% |
| Income tax expense | 3754 | 3% | 4691 | 3% | (937) | (20)% |
| Net income | 14524 | 11% | 12004 | 9% | 2520 | 21% |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to non-controlling interest | 285 | —% | 259 | —% | 26 | NM |
| Net income attributable to Core Laboratories Inc. | $14239 | 11% | $11745 | 9% | $2494 | 21% |
| **Other Data:** |  |  |  |  |  |  |
| Current ratio <sup>(1)</sup> | 2.37:1 |  | 2.48:1 |  |  |  |
| Debt to EBITDA ratio <sup>(2)</sup> | 1.18:1 |  | 1.58:1 |  |  |  |
| Debt to Adjusted EBITDA ratio <sup>(3)</sup> | 1.10:1 |  | 1.47:1 |  |  |  |

---

"NM" means not meaningful

\*Percentage based on applicable revenue rather than total revenue

*(1) Current ratio is calculated as follows: current assets divided by current liabilities.*

*(2) Debt to EBITDA ratio is calculated as follows: debt less cash divided by the sum of consolidated net income plus interest, taxes, depreciation, amortization and certain non-cash adjustments.*

*(3) Debt to Adjusted EBITDA ratio (as defined in our Credit Facility) is calculated as follows: debt less cash divided by the sum of consolidated net income plus interest, taxes, depreciation, amortization, impairments, severance and certain non-cash adjustments.*

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |  |  |
|  | **September 30, 2025** | **September 30, 2025** | **June 30, 2025** | **June 30, 2025** | **$ Change** | **% Change** |
| REVENUE: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Services | $101125 | 75% | $96219 | 74% | $4906 | 5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Product sales | 33396 | 25% | 33940 | 26% | (544) | (2)% |
| Total revenue | 134521 | 100% | 130159 | 100% | 4362 | 3% |
| OPERATING EXPENSES: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of services, exclusive of depreciation expense shown below\* | 74896 | 74% | 74053 | 77% | 843 | 1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of product sales, exclusive of depreciation expense shown below\* | 30005 | 90% | 29648 | 87% | 357 | 1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of services and product sales | 104901 | 78% | 103701 | 80% | 1200 | 1% |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expense, exclusive of depreciation expense shown below | 10688 | 8% | 10464 | 8% | 224 | 2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 3594 | 3% | 3670 | 3% | (76) | (2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other (income) expense, net | (5590) | (4)% | (2967) | (2)% | (2623) | 88% |
| OPERATING INCOME | 20928 | 16% | 15291 | 12% | 5637 | 37% |
| Interest expense | 2650 | 2% | 2711 | 2% | (61) | (2)% |
| Income before income taxes | 18278 | 14% | 12580 | 10% | 5698 | 45% |
| Income tax expense | 3754 | 3% | 1911 | 1% | 1843 | 96% |
| Net income | 14524 | 11% | 10669 | 8% | 3855 | 36% |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to non-controlling interest | 285 | —% | 33 | —% | 252 | NM |
| Net income attributable to Core Laboratories Inc. | $14239 | 11% | $10636 | 8% | $3603 | 34% |
| **Other Data:** |  |  |  |  |  |  |
| Current ratio <sup>(1)</sup> | 2.37:1 |  | 2.27:1 |  |  |  |
| Debt to EBITDA ratio <sup>(2)</sup> | 1.18:1 |  | 1.33:1 |  |  |  |
| Debt to Adjusted EBITDA ratio <sup>(3)</sup> | 1.10:1 |  | 1.27:1 |  |  |  |

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"NM" means not meaningful

\*Percentage based on applicable revenue rather than total revenue

*(1) Current ratio is calculated as follows: current assets divided by current liabilities.*

*(2) Debt to EBITDA ratio is calculated as follows: debt less cash divided by the sum of consolidated net income plus interest, taxes, depreciation and amortization and certain non-cash adjustments.*

*(3) Debt to Adjusted EBITDA ratio (as defined in our Credit Facility) is calculated as follows: debt less cash divided by the sum of consolidated net income plus interest, taxes, depreciation, amortization, impairments, severance and certain non-cash adjustments.*

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |  |  |
|  | **2025** | **2025** | **2024** | **2024** | **$ Change** | **% Change** |
| REVENUE: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Services | $292435 | 75% | $291674 | 74% | $761 | 0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Product sales | 95830 | 25% | 102937 | 26% | (7107) | (7)% |
| Total revenue | 388265 | 100% | 394611 | 100% | (6346) | (2)% |
| OPERATING EXPENSES: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of services, exclusive of depreciation expense shown below\* | 221929 | 76% | 224191 | 77% | (2262) | (1)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of product sales, exclusive of depreciation expense shown below\* | 86142 | 90% | 90132 | 88% | (3990) | (4)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of services and product sales | 308071 | 79% | 314323 | 80% | (6252) | (2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expense, exclusive of depreciation expense shown below | 34799 | 9% | 30690 | 8% | 4109 | 13% |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 10981 | 3% | 11289 | 3% | (308) | (3)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other (income) expense, net | (6222) | (2)% | (6073) | (2)% | (149) | 2% |
| OPERATING INCOME | 40636 | 10% | 44382 | 11% | (3746) | (8)% |
| Interest expense | 7963 | 2% | 9740 | 2% | (1777) | (18)% |
| Income before income taxes | 32673 | 8% | 34642 | 9% | (1969) | (6)% |
| Income tax expense | 7411 | 2% | 9958 | 3% | (2547) | (26)% |
| Net income | 25262 | 7% | 24684 | 6% | 578 | 2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to non-controlling interest | 541 | —% | 687 | —% | (146) | NM |
| Net income attributable to Core Laboratories Inc. | $24721 | 6% | $23997 | 6% | $724 | 3% |
| **Other Data:** |  |  |  |  |  |  |
| Current ratio <sup>(1)</sup> | 2.37:1 |  | 2.48:1 |  |  |  |
| Debt to EBITDA ratio <sup>(2)</sup> | 1.18:1 |  | 1.58:1 |  |  |  |
| Debt to Adjusted EBITDA ratio <sup>(3)</sup> | 1.10:1 |  | 1.47:1 |  |  |  |

---

"NM" means not meaningful

\*Percentage based on applicable revenue rather than total revenue

*(1) Current ratio is calculated as follows: current assets divided by current liabilities.*

*(2) Debt to EBITDA ratio is calculated as follows: debt less cash divided by the sum of consolidated net income plus interest, taxes, depreciation and amortization and certain non-cash adjustments.*

*(3) Debt to Adjusted EBITDA ratio (as defined in our Credit Facility) is calculated as follows: debt less cash divided by the sum of consolidated net income plus interest, taxes, depreciation, amortization, impairments, severance and certain non-cash adjustments.*

***Operating Results for the Three Months Ended September 30, 2025 compared to the Three Months Ended September 30, 2024 and June 30, 2025 and for the Nine Months Ended September 30, 2025 compared to the Nine Months Ended September 30, 2024*** 

**Service Revenue**

Service revenue is primarily tied to activities associated with the exploration, appraisal, development and production of oil, gas and derived products outside the U.S. For the three months ended September 30, 2025, service revenue was $101.1 million, an increase of 2% year-over-year and an increase of 5% sequentially. Year-over-year, revenues increased primarily due to the increase in international markets partially offset by lower activity level in the U.S. market. Despite disruptions from the ongoing geopolitical conflicts and expanded sanctions throughout the first nine months of 2025, we continue to see recovery in demand for our laboratory crude-assay services during the third quarter of 2025 and continued growth in well completion diagnostic services in certain international markets when compared to the same period in 2024. Service revenue in 2025 has

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been negatively impacted by certain projects that were planned and scheduled but were canceled, as the wells drilled by our clients were determined to be uneconomical or unsuccessful.

Sequentially, the increase in service revenue was primarily due to an increase in demand for laboratory crude-assay services in international markets while the U.S. market remained relatively flat. As discussed above, the expanded sanctions imposed throughout the year have caused a temporary disruption in the trading and maritime transportation of crude oil and derived products that slowed the growth of laboratory crude-assay revenue during 2025.

For the nine months ended September 30, 2025, service revenue was $292.4 million, relatively flat compared to the same period in the prior year. Year-over-year, the demand for laboratory crude-assay services and well completion diagnostic services continued to grow in the international markets. Additionally, reservoir rock and fluid analysis services have been negatively impacted due to the decline in international offshore commercial success rates for exploration and appraisal well projects, as discussed above.

**Product Sales Revenue**

Product sales are primarily tied to U.S. onshore drilling and completion activities and product sales to international markets. Product sales to international markets are typically sold and shipped in bulk, and revenue can vary from one quarter to another. For the three months ended September 30, 2025, product sales revenue of $33.4 million decreased 6% year-over-year and 2% sequentially. The decrease was driven by lower drilling and completion activity onshore in the U.S. for the three months ended September 30, 2025 when compared to the same period in 2024.

Sequentially, the slight decrease was due to the lower level of U.S. onshore drilling and completion activity but was substantially offset by higher levels of bulk shipments to international markets.

For the nine months ended September 30, 2025, product sales revenue was $95.8 million and decreased 7% compared to the same period in the prior year, primarily due to lower average U.S. onshore drilling and completion activity in 2025 compared to 2024, but was partially offset by an increase of laboratory instrument sales to international markets in 2025.

**Cost of Services, excluding depreciation**

Cost of services was $74.9 million for the three months ended September 30, 2025, a decrease of 1% year-over-year and an increase of 1% sequentially. The year-over-year decrease in cost of services was primarily due to increased efficiencies and the benefits of lower compensation costs as a result of cost reduction initiatives implemented during the first half of 2025. Sequentially, the slight increase in cost of services is primarily due to an increase in service revenue partially offset by the increased efficiencies and lower compensation cost as discussed above. Cost of services expressed as a percentage of service revenue was 74% for the three months ended September 30, 2025, compared to 77% for the prior quarter and 76% for the same period in the prior year. Cost of services as a percentage of service revenue improved primarily driven by the efficiencies and cost reduction initiatives as discussed above.

For the nine months ended September 30, 2025, cost of services was $221.9 million, a decrease of 1% compared to the same period in the prior year. Cost of services expressed as a percentage of service revenue improved to 76% from 77% when compared to the same period in the prior year. The year-over-year decrease in cost of services while service revenue remained relatively flat was primarily due to increased efficiencies and cost reduction initiatives as discussed above.

**Cost of Product Sales, excluding depreciation**

Cost of product sales was $30.0 million for the three months ended September 30, 2025, a decrease of 4% year-over-year and an increase of 1% sequentially. Cost of product sales expressed as a percentage of product sales revenue was 90% for the three months ended September 30, 2025, compared to 88% for the same period in the prior year and compared to 87% in the prior quarter. The year-over-year changes in cost of product sales as a percentage of product sales increased primarily due to higher absorption of fixed costs on a lower revenue base that is partially associated with increased tariff cost on certain imported

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materials, along with a write-down of certain inventory of approximately $0.6 million in the three months ended September 30, 2025.

Sequentially, cost of product sales as a percentage of product sales increased due to higher absorption of fixed costs on a lower revenue base.

For the nine months ended September 30, 2025, cost of product sales was $86.2 million, a decrease of 4% compared to the same period in the prior year. Cost of product sales expressed as a percentage of product sales revenue was 90% for the nine months ended September 30, 2025, compared to 88% from the same period in the prior year. The increase in cost of product sales as a percentage of product sales revenue was due to higher absorption of fixed costs on a lower revenue base as discussed above, along with a write-down of certain inventory totaled $1.8 million in 2025, with no such write-down in the same period in the prior year.

**General and Administrative Expense, excluding depreciation**

General and administrative ("G&A") expense includes corporate management and centralized administrative services that benefit our operations.

G&A expense for the three months ended September 30, 2025, was $10.7 million, which increased $2.0 million, compared to the same period in 2024. The year-over-year increase was primarily due to higher stock compensation expense recorded in 2025. In 2024, a portion of stock compensation expense that was previously recognized was reversed to align with the expectations of vesting levels for certain performance share awards.

G&A expense for the three months ended September 30, 2025, was comparable to the prior quarter and increased $0.2 million or less than 2%.

For the nine months ended September 30, 2025, G&A expense was $34.8 million which increased $4.1 million, compared to the nine months ended September 30, 2024. The year-over-year increase was primarily due to (1) a higher total stock compensation cost of $1.8 million; (2) a lower gain from mark-to-market adjustments on Company-owned life insurance policies of $1.3 million; and (3) increased license fees and implementation costs associated with a new global human capital management system.

**Depreciation and Amortization Expense**

Depreciation and amortization expense for the three months ended September 30, 2025, was $3.6 million, a decrease of 2% year-over-year and sequentially. Depreciation and amortization expense for the nine months ended September 30, 2025, was $11.0 million, a decrease of 3% year-over-year. The decrease in depreciation and amortization expense compared to the prior year periods and sequentially is primarily due to assets that had become fully depreciated.

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**Other (Income) Expense, Net**

The components of other (income) expense, net, are as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| (Gain) loss on sale of assets | $(146) | $364 | $(369) | $(390) |
| Results of non-consolidated subsidiaries | 194 | (108) | 401 | (207) |
| Foreign exchange (gain) loss, net | 354 | (239) | 841 | 435 |
| Rents and royalties | (8) | (882) | (24) | (1683) |
| Return on pension assets and other pension costs | (312) | (314) | (893) | (891) |
| Assets write-down, loss on lease abandonment and other exit costs |  |  | 707 | 1809 |
| Insurance recovery - business interruption and costs | (52) | (1151) | (1031) | (3481) |
| Insurance recovery - property, plant and equipment | (5253) | (2074) | (6830) | (2074) |
| Severance and other charges |  |  | 2256 | 824 |
| Other, net | (367) | (125) | (1280) | (415) |
| &nbsp;&nbsp;Total other (income) expense, net | $(5590) | $(4529) | $(6222) | $(6073) |

---

During the nine months ended September 30, 2025 and 2024, as a result of consolidating and exiting certain facilities in the U.S. and other international locations, we recognized a write-down of the associated leasehold improvements, right of use assets and other assets and incurred lease abandonment and other exit costs of $0.7 million and $1.8 million, respectively.

In February 2024, we had a fire incident at our Aberdeen, U.K. facility and we have recorded insurance recovery associated with business interruptions, increase in cost of work, and loss on property and assets during the three and nine months ended September 30, 2025 and 2024. During the three months ended September 30, 2025, Core Lab reached final settlement with the insurance company and recorded a gain of approximately $5.3 million on the insurance recovery.

Foreign exchange (gain) loss, net by currency is summarized in the following table (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| British Pound | $(48) | $(64) | $(108) | $6 |
| Canadian Dollar | 43 | (13) | (11) | 60 |
| Colombian Peso | (38) | 44 | (98) | 13 |
| Euro | (30) | 201 | 772 | 266 |
| Indonesian Rupiah | 100 | (332) | 133 | (107) |
| Russian Ruble | 144 | (4) | (189) | 10 |
| Swedish Krona | 5 | 23 | 128 | (7) |
| Other currencies, net | 178 | (94) | 214 | 194 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange (gain) loss, net | $354 | $(239) | $841 | $435 |

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**Interest Expense**

Interest expense for the three months ended September 30, 2025, was $2.7 million and decreased $0.5 million or 15% year-over-year and 2% compared to the prior quarter. For the nine months ended September 30, 2025, interest expense decreased $1.8 million or 18%.

The year-over-year and sequential decreases are primarily due to lower variable interest rates and average borrowings on our bank revolving credit facility during the three and nine months ended September 30, 2025.

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**Income Tax Expense (Benefit)**

The Company recorded an income tax expense of $3.8 million and $7.4 million for the three and nine months ended September 30, 2025, respectively compared to income tax expense of $4.7 million and $10.0 million for the three and nine months ended September 30, 2024, respectively. The effective tax rate for the three and nine months ended September 30, 2025, was 20.5% and 22.7%, respectively. The effective tax rate for the three and nine months ended September 30, 2024, was 28.1% and 28.8%, respectively. The effective tax rate for the three and nine months ended September 30, 2025, was primarily impacted by the earnings mix of jurisdictions subject to tax for the period and changes in uncertain tax position in certain jurisdictions which is discrete to the quarter. The tax rate for the three and nine months ended September 30, 2024 was impacted by the earnings mix of jurisdictions subject to tax for the period and items discrete to the quarter.

On July 4, 2025, the Act was enacted into law. The Act includes significant provisions, including tax cut extensions and modifications to the U.S. and international tax frameworks. We are evaluating the impact of these legislative changes as additional guidance becomes available, and uncertainty remains regarding the timing and interpretation by tax authorities in affected jurisdictions. These legislative changes could have an adverse impact on our future effective tax rate, tax assets and liabilities, including our deferred tax assets and liabilities, and cash payments for tax.

**Segment Analysis**

We operate our business in two segments. These complementary operating segments provide different services and products and utilize different technologies for evaluating and improving reservoir performance and increasing oil and gas recovery from new and existing fields. The following tables summarize our results by operating segment (in thousands):

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year-over-year** | **Sequential** |
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2024** | **September 30, 2024** | **June 30, 2025** | **June 30, 2025** | **% Change** | **%Change** |
| **REVENUE:** |  |  |  |  |  |  |  |  |
| Reservoir Description | $88224 | 66% | $88840 | 66% | $86280 | 66% | (1)% | 2% |
| Production Enhancement | 46297 | 34% | 45557 | 34% | 43879 | 34% | 2% | 6% |
| &nbsp;&nbsp;Consolidated | $134521 | 100% | $134397 | 100% | $130159 | 100% | 0% | 3% |
| **OPERATING INCOME:** | **OPERATING INCOME:** | **OPERATING INCOME:** | **OPERATING INCOME:** | **OPERATING INCOME:** | **OPERATING INCOME:** | **OPERATING INCOME:** | **OPERATING INCOME:** | **OPERATING INCOME:** |
| Reservoir Description \* | $16574 | 19% | $16487 | 19% | $12203 | 14% | 1% | 36% |
| Production Enhancement \* | 4379 | 9% | 3232 | 7% | 3148 | 7% | 35% | 39% |
| Corporate and Other <sup>(1)</sup> | (25) | 0% | 84 | 0% | (60) | 0% | NM | NM |
| &nbsp;&nbsp;Consolidated | $20928 | 16% | $19803 | 15% | $15291 | 12% | 6% | 37% |
| *\* Percentage, which represents operating margins, is based on operating income divided by applicable revenue rather than total revenue.<br>"NM" means not meaningful<br>(1) "Corporate and Other" represents those items that are not directly related to a particular operating segment.* | *\* Percentage, which represents operating margins, is based on operating income divided by applicable revenue rather than total revenue.<br>"NM" means not meaningful<br>(1) "Corporate and Other" represents those items that are not directly related to a particular operating segment.* | *\* Percentage, which represents operating margins, is based on operating income divided by applicable revenue rather than total revenue.<br>"NM" means not meaningful<br>(1) "Corporate and Other" represents those items that are not directly related to a particular operating segment.* | *\* Percentage, which represents operating margins, is based on operating income divided by applicable revenue rather than total revenue.<br>"NM" means not meaningful<br>(1) "Corporate and Other" represents those items that are not directly related to a particular operating segment.* | *\* Percentage, which represents operating margins, is based on operating income divided by applicable revenue rather than total revenue.<br>"NM" means not meaningful<br>(1) "Corporate and Other" represents those items that are not directly related to a particular operating segment.* | *\* Percentage, which represents operating margins, is based on operating income divided by applicable revenue rather than total revenue.<br>"NM" means not meaningful<br>(1) "Corporate and Other" represents those items that are not directly related to a particular operating segment.* | *\* Percentage, which represents operating margins, is based on operating income divided by applicable revenue rather than total revenue.<br>"NM" means not meaningful<br>(1) "Corporate and Other" represents those items that are not directly related to a particular operating segment.* | *\* Percentage, which represents operating margins, is based on operating income divided by applicable revenue rather than total revenue.<br>"NM" means not meaningful<br>(1) "Corporate and Other" represents those items that are not directly related to a particular operating segment.* | *\* Percentage, which represents operating margins, is based on operating income divided by applicable revenue rather than total revenue.<br>"NM" means not meaningful<br>(1) "Corporate and Other" represents those items that are not directly related to a particular operating segment.* |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Year-over-year** |
|  | **2025** | **2025** | **2024** | **2024** | **% Change** |
| **REVENUE:** |  |  |  |  |  |
| Reservoir Description | $255401 | 66% | $259353 | 66% | (2)% |
| Production Enhancement | 132864 | 34% | 135258 | 34% | (2)% |
| &nbsp;&nbsp;Consolidated | $388265 | 100% | $394611 | 100% | (2)% |
| **OPERATING INCOME (LOSS):** |  |  |  |  |  |
| Reservoir Description \* | $31116 | 12% | $34823 | 13% | (11)% |
| Production Enhancement \* | 9030 | 7% | 9209 | 7% | (2)% |
| Corporate and Other <sup>(1)</sup> | 490 | 0% | 350 | 0% | NM |
| &nbsp;&nbsp;Consolidated | $40636 | 10% | $44382 | 11% | (8)% |
| *\* Percentage, which represents operating margin, is based on operating income divided by applicable revenue rather than total revenue.<br>"NM" means not meaningful<br>(1) "Corporate and Other" represents those items that are not directly related to a particular operating segment.* | *\* Percentage, which represents operating margin, is based on operating income divided by applicable revenue rather than total revenue.<br>"NM" means not meaningful<br>(1) "Corporate and Other" represents those items that are not directly related to a particular operating segment.* | *\* Percentage, which represents operating margin, is based on operating income divided by applicable revenue rather than total revenue.<br>"NM" means not meaningful<br>(1) "Corporate and Other" represents those items that are not directly related to a particular operating segment.* | *\* Percentage, which represents operating margin, is based on operating income divided by applicable revenue rather than total revenue.<br>"NM" means not meaningful<br>(1) "Corporate and Other" represents those items that are not directly related to a particular operating segment.* | *\* Percentage, which represents operating margin, is based on operating income divided by applicable revenue rather than total revenue.<br>"NM" means not meaningful<br>(1) "Corporate and Other" represents those items that are not directly related to a particular operating segment.* | *\* Percentage, which represents operating margin, is based on operating income divided by applicable revenue rather than total revenue.<br>"NM" means not meaningful<br>(1) "Corporate and Other" represents those items that are not directly related to a particular operating segment.* |

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**Reservoir Description**

Reservoir Description operations are closely correlated with trends in international and offshore activity levels, with approximately 80% of its revenue sourced from existing producing fields, development projects and movement of crude oil products outside the U.S.

Revenue from the Reservoir Description operating segment of $88.2 million for the three months ended September 30, 2025 decreased 1% year-over-year and increased 2% sequentially. Revenue in 2025 has been negatively impacted by the decrease in the success rate for international offshore exploration and appraisal wells, which reached a 20-year low for the six-month period ending March 31, 2025. The decrease in international offshore commercial success rates has resulted in the cancellation of several reservoir rock and fluid analysis projects that were originally planned for late 2024 and 2025. The slight decrease in year-over-year revenue was primarily due to lower revenue in reservoir rock and fluid analysis projects in the U.S. but was substantially offset by higher revenue from international projects and crude-assay services. Sequentially, the increase in revenue was primarily due to higher revenue in laboratory crude-assay services.

Revenue from the Reservoir Description operating segment of $255.4 million for the nine months ended September 30, 2025 decreased 2% from the same period in the prior year. The decreased revenue in 2025 is primarily due to lower revenue in reservoir rock and fluid analysis in the U.S., as discussed above. The decrease is partially offset by higher revenue in international laboratory crude-assay services and higher laboratory instrument sales in 2025.

Operating income of $16.6 million for the three months ended September 30, 2025, was relatively flat year-over-year and increased $4.4 million sequentially. Operating margins were 19% for the three months ended September 30, 2025, comparable for the same period in the prior year, and 14% sequentially. Year-over-year, the changes in operating income and operating margins was primarily attributable to gains on insurance recovery associated with the fire at the Aberdeen, U.K. facility of $5.3 million recorded in the three months ended September 30, 2025, compared to a $3.2 million gain in the same period in prior year. The additional gain on insurance recovery was substantially offset by a different mix of revenue with a higher level of laboratory instrument sales in 2025, which yield a lower margin.

Sequentially, the increase in operating income and operating margins was primarily due to 1) incremental revenue of $2.0 million in the three months ended September 30, 2025; and 2) insurance recovery associated with the fire at the Aberdeen, U.K. facility of $5.3 million recorded in the three months ended September 30, 2025, compared to a $2.6 million recorded in the prior quarter.

Operating income of $31.1 million for the nine months ended September 30, 2025, decreased $3.7 million from the same period in the prior year. Operating margins were 12% for the nine months ended September 30, 2025, compared to 13% for the same period in the prior year. The decrease in operating income and operating margins was primarily attributable to 1) a lower level of revenue in 2025; 2) a different mix of revenue with a higher level of laboratory instrument sales that yield lower margin compared to service revenue; and 3) a total charge of $2.7 million associated with employee severance, facility consolidation and asset write-down recorded in 2025 compared to $1.5 million recorded in the same period in prior year. The decrease in operating income and operating margins was partially offset by a higher insurance recovery associated with the fire at the Aberdeen, U.K. facility in the nine months ended September 30, 2025, compared to the same period in prior year.

**Production Enhancement**

Production Enhancement operations are largely focused on complex completions in unconventional oil and gas reservoirs in the U.S. as well as conventional projects across the globe. U.S. onshore drilling and completion activities typically experience a seasonal decline at end of the year with activity levels increasing at the beginning of the year. Average rig count in the U.S. land market for the three months ended September 30, 2025, was down by 7% year-over-year and 6% sequentially. International rig count was down 6% year-over-year and relatively flat sequentially.

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Revenue from the Production Enhancement operating segment of $46.3 million for the three months ended September 30, 2025, increased 2% year-over-year and 6% sequentially. Year-over-year, the increase was primarily driven by a strong growth in well completion diagnostic services in the U.S. and international markets. Sequentially, the increase was primarily driven by increased product sales in bulk shipment in the international markets, and continued growth in well completion diagnostic services for projects in the Gulf of Mexico.

Revenue from the Production Enhancement operating segment of $132.9 million for the nine months ended September 30, 2025, decreased 2% from the same period in the prior year. The decrease in revenue is primarily due to lower product sales in the U.S. land market in 2025, partially offset by higher revenue in well completion diagnostic services in the U.S. and international markets.

Operating income of $4.4 million for the three months ended September 30, 2025, increased $1.1 million year-over-year, and increased $1.2 million sequentially. Operating margins for the three months ended September 30, 2025, were 9%, compared to operating margins of 7% year-over-year and sequentially. Year-over-year, the increase in operating income and margins was primarily driven by a different mix of revenue with higher well completion diagnostic service revenue that yields a higher margin. Sequentially, the increase in operating income and margins was primarily driven by incremental revenue of $2.4 million in the three months ended September 30, 2025.

Operating income of $9.0 million for the nine months ended September 30, 2025, decreased $0.2 million compared to the same period in the prior year. Operating margins for the nine months ended September 30, 2025 of 7% were comparable to the same period of the prior year. The slight decrease in operating income and margins was primarily due to a higher absorption of fixed costs on lower product sales that is partially associated with increased tariff cost on certain imported materials, substantially offset by higher margin yield from well completion diagnostic service revenue as discussed above.

**Liquidity and Capital Resources**

**General**

We have historically financed our activities through cash on hand, cash flows from operations, bank credit facilities, equity financing and the issuance of debt. Cash flows from operating activities provide the primary source of funds to finance operating needs, capital expenditures, dividends and our share repurchase program. Our ability to maintain and grow our operating income and cash flow depends, to a large extent, on continued investing activities. We believe our future cash flows from operations, supplemented by our borrowing capacity and the ability to issue additional equity and debt, should be sufficient to fund our debt requirements, capital expenditures, working capital, dividends, share repurchase program and future acquisitions. The Company will continue to monitor and evaluate the availability of capital in the debt and equity markets.

We are a holding company incorporated in Delaware. Therefore, we conduct substantially all of our operations through our subsidiaries. Our cash availability is largely dependent upon the ability of our subsidiaries to pay cash dividends or otherwise distribute or advance funds to us and on the terms and conditions of our existing and future credit arrangements. There are no restrictions preventing any of our subsidiaries from repatriating earnings, except for the unrepatriated earnings of our Russian subsidiary which are not expected to be distributed in the foreseeable future, and there are no restrictions or income taxes associated with distributing cash to the parent company through loans or advances. As of September 30, 2025, $22.2 million of our $25.6 million of cash was held by our foreign subsidiaries.

The Company maintains the quarterly dividend of $0.01 per share.

**Cash Flows**

The following table summarizes cash flows (in thousands):

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| | | | |
|:---|:---|:---|:---|
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |  |
|  | **2025** | **2024** | **% Change** |
| Cash flows provided by (used in): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating activities | $29085 | $35773 | (19)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Investing activities | 1521 | (2835) | NM |
| &nbsp;&nbsp;&nbsp;&nbsp;Financing activities | (24134) | (26584) | (9)% |
| Net change in cash and cash equivalents | $6472 | $6354 | 2% |

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Comparing the nine months ended September 30, 2025 to the same period in the prior year, cash flows provided by operating activities decreased to $29.1 million in 2025 compared to $35.8 million in 2024. Net income for the nine months ended September 30, 2025 includes gain on insurance proceeds associated with assets of $6.8 million compared to $2.1 million in the same period in the prior year. Additionally, cash from operating activities was impacted by a decrease in working capital in 2025 compared to the same period in the prior year.

Cash flows provided by investing activities for the nine months ended September 30, 2025 of $1.5 million include proceeds on the sale of assets of $2.4 million, proceeds from insurance recovery associated with the fire incident at the Aberdeen, U.K. facility of $10.0 million, and proceeds on company owned life insurance policies of $0.8 million, offset by total capital expenditures of $10.9 million and a business acquisition, net of cash acquired of $0.6 million. Cash flows used in investing activities for the nine months ended September 30, 2024 of $2.8 million include the funding of $8.6 million for capital expenditures, partially offset by $2.1 million of proceeds from insurance recovery associated with the 2024 fire incident, $0.9 million of proceeds from the sale of assets and $2.8 million of net proceeds received from company owned life insurance policies.

Cash flows used in financing activities for the nine months ended September 30, 2025 of $24.1 million include an $11.0 million net reduction in long-term debt, $1.7 million of debt issuance costs associated with the renewal of our credit facility, $1.4 million for quarterly dividends, and $9.8 million used to repurchase the Company's common stock. Cash flows used in financing activities for the nine months ended September 30, 2024 of $26.6 million include a $24.0 million net reduction in long-term debt, $1.4 million for quarterly dividends, $0.4 million used to repurchase the Company's common stock and $0.8 million in costs associated with equity transactions.

During the nine months ended September 30, 2025, we repurchased 831,478 shares of our common stock for $9.8 million, including rights to 16,915 shares of our common stock to satisfy personal tax liabilities of participants in our stock-based compensation plan for an aggregate purchase price of $211 thousand.

We utilize the non-GAAP financial measure of free cash flow to evaluate our cash flows and results of operations. Free cash flow is defined as net cash provided by operating activities (which is the most directly comparable GAAP measure) less cash paid for capital expenditures. Management believes that free cash flow provides useful information to investors regarding the cash available in the period that was in excess of our needs to fund our capital expenditures and operating activities. Free cash flow is not a measure of operating performance under GAAP and should not be considered in isolation nor construed as an alternative to operating income, net income (loss) or cash flows from operating, investing or financing activities, each as determined in accordance with GAAP. Free cash flow does not represent residual cash available for distribution because we may have other non-discretionary expenditures that are not deducted from the measure. Moreover, since free cash flow is not a measure determined in accordance with GAAP and thus is susceptible to varying interpretations and calculations, free cash flow as presented, may not be comparable to similarly titled measures presented by other companies. The following table reconciles this non-GAAP financial measure to the most directly comparable measure calculated and presented in accordance with GAAP (in thousands):

[<u>Return to Index</u>](#index)

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---

| | | | |
|:---|:---|:---|:---|
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |  |
|  | **2025** | **2024** | **% Change** |
| **Free cash flow calculation:** |  |  |  |
| Net cash provided by operating activities | $29085 | $35773 | (19)% |
| Less: Cash paid for capital expenditures - operations | (8265) | (8647) | (4)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Free cash flow | $20820 | $27126 | (23)% |

---

Free cash flow for the nine months ended September 30, 2025, decreased $6.3 million from $27.1 million for the same period in 2024. The net cash provided by operating activities of $29.1 million during the nine months ended September 30, 2025, decreased $6.7 million primarily due to the factors as discussed in the cash flow from operating activities above. Capital expenditures-operations, which exclude capital expenditures of $2.7 million associated with the Aberdeen, U.K. fire incident and are covered by insurance, decreased slightly by $0.4 million during the nine months ended September 30, 2025 compared to the same period in the prior year.

**Credit Facility, Senior Notes and Available Future Liquidity**

We, along with CLIH, have a secured the Credit Facility for an aggregate borrowing commitment of $150.0 million with a $50.0 million "accordion" feature. As of September 30, 2025, the Credit Facility has an available borrowing capacity of approximately $131.9 million.

See Note 7 – *Long-term debt, net* of the Notes to the Interim Consolidated Financial Statements, for additional information regarding the Credit Facility.

Additionally, we along with CLIH as issuer, have senior notes outstanding that were issued through private placement transactions.

These debt instruments are summarized in the following table (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Interest Rate** | **Maturity Date** | **September 30,<br>2025** | **December 31,<br>2024** |
| Credit Facility |  |  | $7000 | $18000 |
| 2021 Senior Notes Series A <sup>(1)</sup> | 4.09% | January 12, 2026 | 45000 | 45000 |
| 2021 Senior Notes Series B <sup>(1)</sup> | 4.38% | January 12, 2028 | 15000 | 15000 |
| 2023 Senior Notes Series A <sup>(2)</sup> | 7.25% | June 28, 2028 | 25000 | 25000 |
| 2023 Senior Notes Series B <sup>(2)</sup> | 7.50% | June 28, 2030 | 25000 | 25000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total long-term debt |  |  | 117000 | 128000 |
| Less: Debt issuance costs |  |  | (2897) | (1889) |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt, net |  |  | $114103 | $126111 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(1) Interest is payable semi-annually on June 30 and December 30.*

&nbsp;&nbsp;&nbsp;&nbsp;*(2) Interest is payable semi-annually on March 28 and September 28.*

In accordance with the terms of the Credit Facility, our leverage ratio is 1.10, and our interest coverage ratio is 7.86, each for the period ended September 30, 2025. We are in compliance with all covenants contained in our Credit Facility and Senior Notes as of September 30, 2025. Certain of our material, wholly owned subsidiaries are guarantors or co-borrowers under the Credit Facility and Senior Notes. See Note 7 - *Long-term Debt, net* of the Notes to the Interim Consolidated Financial Statements for additional information regarding the terms and financial covenants of the Credit Facility and the Senior Notes.

See Note 11 - *Derivative Instruments and Hedging Activities* of the Notes to the Interim Consolidated Financial Statements, for additional information regarding interest rate swap agreements we have entered to fix the underlying risk-free rate on our Credit Facility and the 2023 Senior Notes.

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**Item 3. Quantitative and Qualitative Disclosures About Market Risk**

There have been no material changes in market risk from the information provided in Item 7A. "Quantitative and Qualitative Disclosures About Market Risk" of Core Laboratories Inc.'s Annual Report on Form 10-K for the year ended December 31, 2024.

**Item 4. Controls and Procedures**

A complete discussion of our controls and procedures is included in Core Laboratories Inc.'s Annual Report on Form 10-K for the year ended December 31, 2024.

**Disclosure Controls and Procedures**

Our management, under the supervision of and with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of the end of the period covered by this report. Our disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed by us in our reports filed or submitted under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of September 30, 2025, at the reasonable assurance level.

Our management does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent all errors and all fraud. Further, the design of disclosure controls and internal control over financial reporting must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.

**Changes in Internal Control Over Financial Reporting**

There have been no changes in our system of internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, during the fiscal quarter ended September 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**CORE LABORATORIES INC.**

**PART II - OTHER INFORMATION**

**Item 1. Legal Proceedings** 

See Note 9 - *Commitments and Contingencies* of the Notes to the Interim Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report.

**Item 1A. Risk Factors** 

Our business faces many risks. Any of the risks discussed in this Quarterly Report or our other SEC filings could have a material impact on our business, financial position or results of operations.

Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also impair our business operations. For a detailed discussion of the risk factors that should be understood by any investor contemplating investment in our securities, please refer to "Item 1A - Risk Factors" in Core Laboratories Inc.'s Annual Report on Form 10-K

[<u>Return to Index</u>](#index)

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for the year ended December 31, 2024. In addition to the risk factors identified in our 2024 Annual Report, we updated the following risk factor:

***Tariffs and other trade measures could adversely affect our business, results of operations, financial position and cash flows.***

Our business and results of operations may be adversely affected by uncertainty and changes in U.S. trade policies, including tariffs, trade agreements or other trade restrictions imposed by the U.S. or other governments. Our input costs for raw materials and other goods, such as steel, electronic components, chemical reagents and laboratory equipment, are adversely affected by tariffs imposed by the U.S. government on products imported into the United States. Additionally, we sell our products internationally and our product sales may be subject to any retaliatory measures by other countries. Any imposition of or increase in tariffs on the goods we purchase or the products we sell could increase our costs and the price of our products and services. To the extent we are unable to pass all or a portion of these cost increases on to our customers, such cost increases could adversely affect our results of operations.

Additional tariffs, further trade restrictions and retaliatory trade measures could disrupt our supply chain and logistics, restrict or limit the availability of goods or supplies, cause adverse financial impacts due to volatility in foreign exchange rates and interest rates, and inflationary pressures on raw materials. It may be time-consuming and expensive for us to alter our business operations to adapt to or comply with any changes in international trade policies and agreements and any failure to do so could have a material adverse effect on our business. Any potential impact will depend on future developments with respect to trade policy and the results of trade negotiations, all of which are beyond our control. These potential impacts, while uncertain, could adversely affect our business, results of operations and financial condition.

Tariffs or other trade restrictions may lead to continuing uncertainty and volatility in U.S. and global financial and economic conditions and commodity markets, declining consumer confidence, significant inflation and diminished expectations for the economy, and ultimately reduced demand for our products and services and the demand for crude oil and gas. Such conditions could have a material adverse impact on our business, results of operations and cash flows.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds**

**Unregistered Sales of Equity Securities**

None.

**Issuer Purchases of Equity Securities**

The following table provides information about our purchases of shares of our common stock, par value $0.01, that are registered by us pursuant to Section 12 of the Exchange Act during the three months ended September 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Period** | **Total Number** **<br>of Shares<br>Purchased** <sup>(1)</sup> | **Average Price<br>Paid Per<br>Share** | **Total Number of Shares<br>Purchased as Part of a<br>Publicly Announced<br>Program** <sup>(2)</sup> | **Maximum Number of<br>Shares That May Yet be<br>Purchased Under the<br>Program** <sup>(2)</sup> |
| July 1-31, 2025 | 172070 | $11.45 |  |  |
| August 1-31, 2025 | 275030 | $10.38 |  |  |
| September 1-30, 2025 | 15148 | $12.16 |  |  |
| Total | 462248 | $10.84 |  |  |

---

(1)During the three months ended September 30, 2025, 4,461 shares were surrendered to us by participants in a stock-based compensation plan to settle any personal tax liabilities which may result from the award. Additionally, we purchased 457,787 shares in the open market. Repurchases of common stock are at the discretion of the board of directors and management.

[<u>Return to Index</u>](#index)

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(2)The Company does not have a formal share repurchase program; however, it does from time to time undertake share repurchases in the open market at the discretion of Company management and with prior authorization from the Board of Directors.

**Item 5. Other Information**

During the three months ended September 30, 2025, no director or officer of the Company adopted, modified or terminated any "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" within the meaning of Item 408(a) of Item 408 of Regulation S-K.

[<u>Return to Index</u>](#index)

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**Item 6. Exhibits**

---

| | | |
|:---|:---|:---|
| **Exhibit**<br>**No.** | **Exhibit Title** | **Incorporated by**<br>**reference from the**<br>**following documents** |
| 10.1 | [<u>Core Laboratories Inc. Nonqualified Deferred Compensation Plan for Board of Directors</u>](clb-ex10_1.htm) | Filed herewith |
| 10.2 | [<u>Ninth Amended and Restated Credit Agreement, dated July 22, 2025, by and among, Core Laboratories Inc. and Core Laboratories (U.S.) Interests Holdings, Inc., as borrowers, Bank of America, N.A., as administrative agent and the other lenders party hereto</u>](https://www.sec.gov/Archives/edgar/data/1958086/000095017025097897/clb-ex10_1.htm) | Form 8-K, July 23, 2025 (File No. 001-41695) |
| 31.1 | [<u>Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</u>](clb-ex31_1.htm) | Filed herewith |
| 31.2 | [<u>Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</u>](clb-ex31_2.htm) | Filed herewith |
| 32.1 | [<u>Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</u>](clb-ex32_1.htm) | Furnished herewith |
| 32.2 | [<u>Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</u>](clb-ex32_2.htm) | Furnished herewith |
| 101.INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | Filed herewith |
| 101.SCH | Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents | Filed herewith |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | Filed herewith |

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**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant, Core Laboratories Inc., has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
|  |  | **CORE LABORATORIES INC.** | **CORE LABORATORIES INC.** |
| Date: | October 23, 2025 | By: | /s/ Christopher S. Hill |
|  |  |  | Christopher S. Hill |
|  |  |  | Chief Financial Officer |
|  |  |  | (Duly Authorized Officer and |
|  |  |  | Principal Financial Officer) |

---

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## Exhibit 10.1

![gfx158871147_0.gif](gfx158871147_0.gif)

**Core Laboratories Inc. Nonqualified Deferred Compensation for Board of Directors**

January 1, 2026

**IMPORTANT NOTE**

This document has not been approved by the Department of Labor, Internal Revenue Service, or any other governmental entity. An adopting Employer must determine whether the Plan is subject to the Federal securities laws and the securities laws of the various states. An adopting Employer may not rely on this document to ensure any particular tax consequences or to ensure that the Plan is "unfunded and maintained primarily for the purpose of providing deferred compensation to a select group of management or highly compensated employees" under Title I of the Employee Retirement Income Security Act of 1974, as amended, with respect to the Employer's particular situation. FMR LLC, its affiliates and employees cannot provide you with legal advice in connection with the execution of this document. This document should be reviewed by the Employer's attorney prior to execution.

Fidelity Internal Information

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Preamble

Article 1 - General

&nbsp;&nbsp;&nbsp;&nbsp;1.1. Plan

&nbsp;&nbsp;&nbsp;&nbsp;1.2. Effective Dates <br>Article 2 - Definitions

&nbsp;&nbsp;&nbsp;&nbsp;2.1. Account

&nbsp;&nbsp;&nbsp;&nbsp;2.2. Administrator

&nbsp;&nbsp;&nbsp;&nbsp;2.3. Adoption Agreement

&nbsp;&nbsp;&nbsp;&nbsp;2.4. Beneficiary

&nbsp;&nbsp;&nbsp;&nbsp;2.5. Board or Board of Directors

&nbsp;&nbsp;&nbsp;&nbsp;2.6. Change in Control

&nbsp;&nbsp;&nbsp;&nbsp;2.7. Code

&nbsp;&nbsp;&nbsp;&nbsp;2.8. Compensation

&nbsp;&nbsp;&nbsp;&nbsp;2.9. Director

&nbsp;&nbsp;&nbsp;&nbsp;2.10. Disability

&nbsp;&nbsp;&nbsp;&nbsp;2.11. Employer <br>2.12. ERISA

&nbsp;&nbsp;&nbsp;&nbsp;2.13. Participant

&nbsp;&nbsp;&nbsp;&nbsp;2.14. Plan

&nbsp;&nbsp;&nbsp;&nbsp;2.15. Plan Sponsor

&nbsp;&nbsp;&nbsp;&nbsp;2.16. Plan Year

&nbsp;&nbsp;&nbsp;&nbsp;2.17. Related Employer

&nbsp;&nbsp;&nbsp;&nbsp;2.18. Retirement

&nbsp;&nbsp;&nbsp;&nbsp;2.19. Separation from Service

&nbsp;&nbsp;&nbsp;&nbsp;2.20. Stock "Company Stock"

&nbsp;&nbsp;&nbsp;&nbsp;2.21. Valuation Date

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Core Laboratories, Inc. Nonqualified Deferred Compensation for Board of Directors VCUSTBPD409A022025

Fidelity Internal Information

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Article 3 - Participation

&nbsp;&nbsp;&nbsp;&nbsp; 3.1. Participation

&nbsp;&nbsp;&nbsp;&nbsp; 3.2. Termination of Participation

Article 4 - Participant Elections

&nbsp;&nbsp;&nbsp;&nbsp; 4.1. Deferral Agreement

&nbsp;&nbsp;&nbsp;&nbsp; 4.2. Amount of Deferral

&nbsp;&nbsp;&nbsp;&nbsp; 4.3. Timing of Election to Defer

&nbsp;&nbsp;&nbsp;&nbsp; 4.4. Election of Payment Schedule and Form of Payment

Article 5 - Accounts and Credits

&nbsp;&nbsp;&nbsp;&nbsp; 5.1. Establishment of Account

&nbsp;&nbsp;&nbsp;&nbsp; 5.2. Credits to Account

Article 6 - Investment of Contributions

&nbsp;&nbsp;&nbsp;&nbsp; 6.1. Investment Options

&nbsp;&nbsp;&nbsp;&nbsp; 6.2. Adjustment of Accounts

Article 7 - Right to Benefits

&nbsp;&nbsp;&nbsp;&nbsp; 7.1. Vesting

&nbsp;&nbsp;&nbsp;&nbsp; 7.2. Death

&nbsp;&nbsp;&nbsp;&nbsp; 7.3. Disability

Article 8 - Distribution of Benefits

&nbsp;&nbsp;&nbsp;&nbsp; 8.1. Amount of Benefits

&nbsp;&nbsp;&nbsp;&nbsp; 8.2. Method and Timing of Distributions

&nbsp;&nbsp;&nbsp;&nbsp; 8.3. Payment Election Overrides

&nbsp;&nbsp;&nbsp;&nbsp; 8.4. Cashouts of Amounts Not Exceeding Stated Limit

&nbsp;&nbsp;&nbsp;&nbsp; 8.5. Change in Control

&nbsp;&nbsp;&nbsp;&nbsp; 8.6. Permissible Delays in Payment

&nbsp;&nbsp;&nbsp;&nbsp; 8.7. Permitted Acceleration of Payment

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Core Laboratories, Inc. Nonqualified Deferred Compensation for Board of Directors VCUSTBPD409A022025

Fidelity Internal Information

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Article 9 - Amendment and Termination

&nbsp;&nbsp;&nbsp;&nbsp;9.1. Amendment by Plan Sponsor

&nbsp;&nbsp;&nbsp;&nbsp;9.2. Plan Termination Following Change in Control or Corporate Dissolution

&nbsp;&nbsp;&nbsp;&nbsp;9.3. Other Plan Terminations <br>Article 10 - The Trust

&nbsp;&nbsp;&nbsp;&nbsp;10.1. Establishment of Trust

&nbsp;&nbsp;&nbsp;&nbsp;10.2. Trust

&nbsp;&nbsp;&nbsp;&nbsp;10.3. Investment of Trust Funds <br>Article 11 - Plan Administration

&nbsp;&nbsp;&nbsp;&nbsp;11.1. Powers and Responsibilities of the Administrator <br>11.2. Claims and Review Procedures

&nbsp;&nbsp;&nbsp;&nbsp;11.3. Plan Administrative Costs

Article 12 - Miscellaneous

&nbsp;&nbsp;&nbsp;&nbsp;12.1. Unsecured General Creditor of the Employer

&nbsp;&nbsp;&nbsp;&nbsp;12.2. Employer's Liability

&nbsp;&nbsp;&nbsp;&nbsp;12.3. Limitation of Rights <br>12.4. Anti-Assignment

&nbsp;&nbsp;&nbsp;&nbsp;12.5. Facility of Payment

&nbsp;&nbsp;&nbsp;&nbsp;12.6. Notices

&nbsp;&nbsp;&nbsp;&nbsp;12.7. Tax Withholding

&nbsp;&nbsp;&nbsp;&nbsp;12.8. Indemnification <br>12.9. Successors <br>12.10. Disclaimer

&nbsp;&nbsp;&nbsp;&nbsp;12.11. Governing Law

Core Laboratories, Inc. Nonqualified Deferred Compensation for Board of Directors VCUSTBPD409A022025

Fidelity Internal Information

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![img158871147_0.jpg](img158871147_0.jpg)

The Plan is intended to be a "plan which is unfunded and is maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees" within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended, or an "excess benefit plan" within the meaning of Section 3(36) of the Employee Retirement Income Security Act of 1974, as amended, or a combination of both. The Plan is further intended to conform with the requirements of Internal Revenue Code Section 409A and the final regulations issued thereunder and shall be interpreted, implemented, and administered in a manner consistent therewith.

![img158871147_1.jpg](img158871147_1.jpg)

&nbsp;&nbsp;&nbsp;&nbsp; ***1.1. Plan***

The Plan will be referred to by the name specified in the Adoption Agreement. <br> ***1.2. Effective Dates***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(a)</u><u>Original Effective Date</u>. The Original Effective Date is the date as of which the Plan was initially adopted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(b)</u><u>Amendment Effective Date</u>. The Amendment Effective Date is the date specified in the Adoption Agreement as of which the Plan is amended and restated. Except as otherwise provided in the Adoption Agreement, all amounts deferred under the Plan prior to the Amendment Effective Date shall be governed by the terms of the Plan as in effect on the day before the Amendment Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(c)</u><u>Special Effective Date</u>. A Special Effective Date may apply to any given provision if so specified in Appendix A of the Adoption Agreement. A Special Effective Date will control over the Original Effective Date or Amendment Effective Date, whichever is applicable, with respect to such provision of the Plan.

![img158871147_2.jpg](img158871147_2.jpg)

Wherever used herein, the following terms have the meanings set forth below, unless a different meaning is clearly required by the context:

&nbsp;&nbsp;&nbsp;&nbsp; ***2.1. Account***

"Account" means an account and any subaccounts established for the purpose of recording amounts credited on behalf of a Participant and any earnings, expenses, gains, losses, or distributions included thereon. The Account shall be a bookkeeping entry only and shall be utilized solely as a device for the measurement and determination of the amounts to be paid to a Participant or to the Participant's Beneficiary pursuant to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp; ***2.2. Administrator***

"Administrator" means the person or persons designated by the Plan Sponsor in Section 1.05 of the Adoption Agreement to be responsible for the administration of the Plan. If no Administrator is designated in the Adoption Agreement, the Administrator is the Plan Sponsor.

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Core Laboratories, Inc. Nonqualified Deferred Compensation for Board of Directors <br>VCUSTBPD409A022025

Fidelity Internal Information

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***2.3. Adoption Agreement***

"Adoption Agreement" means the agreement adopted by the Plan Sponsor that establishes the Plan. <br> ***2.4. Beneficiary***

"Beneficiary" means the persons, trusts, estates, or other entities entitled under Section 7.2 to receive benefits under the Plan upon the death of a Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***2.5. Board or Board of Directors***

"Board" or "Board of Directors" means the Board of Directors of the Plan Sponsor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***2.6. Change in Control***

"Change in Control" means the occurrence of an event involving the Plan Sponsor that is described in Section 8.5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***2.7. Code***

"Code" means the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***2.8. Compensation***

"Compensation" has the meaning specified in Section 3.01 of the Adoption Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***2.9. Director***

"Director" means a non-employee member of the Board who has been designated by the Employer as eligible to participate in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***2.10. Disability***

"Disability" means that a Participant is disabled as defined in Section 6.01(h) of the Adoption Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***2.11. Employer***

"Employer" means the Plan Sponsor and any other Related Employer that is listed in Section 1.04 of the Adoption Agreement and which is authorized by the Plan Sponsor to participate in and, in fact, does adopt the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***2.12. ERISA***

"ERISA" means the Employee Retirement Income Security Act of 1974, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***2.13. Participant***

"Participant" means a Director who commences participation in the Plan in accordance with Article 3. <br> ***2.14. Plan***

"Plan" means the unfunded plan of deferred compensation set forth herein, including the Adoption Agreement and any trust agreement, as adopted by the Plan Sponsor, and as amended from time to time.

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**Core Laboratories, Inc. Nonqualified Deferred Compensation for Board of Directors <br>VCUSTBPD409A022025**

**Fidelity Internal Information**

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&nbsp;&nbsp;&nbsp;&nbsp; ***2.15. Plan Sponsor***

"Plan Sponsor" means the entity identified in Section 1.03 of the Adoption Agreement or any successor by merger, consolidation or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp; ***2.16. Plan Year***

"Plan Year" means the period identified in Section 1.02 of the Adoption Agreement. <br> ***2.17. Related Employer***

"Related Employer" means the Plan Sponsor and (a) any corporation that is a member of a controlled group of corporations as defined in Code Section 414(b) that includes the Plan Sponsor and (b) any trade or business that is under common control as defined in Code Section 414(c) that includes the Plan Sponsor.

&nbsp;&nbsp;&nbsp;&nbsp; ***2.18. Retirement***

"Retirement" has the meaning specified in 6.01(e) of the Adoption Agreement. <br> ***2.19. Separation from Service***

"Separation from Service" means the date that the Participant dies, retires, or otherwise has a termination of employment with respect to all entities comprising the Related Employer. A Separation from Service does not occur if the Participant is on military leave, sick leave or other bona fide leave of absence if the period of leave does not exceed six months or such longer period during which the Participant's right to re-employment is provided by statute or contract. If the period of leave exceeds six months and the Participant's right to reemployment is not provided either by statute or contract, a Separation from Service will be deemed to have occurred on the first day following the six-month period. If the period of leave is due to any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than six months, where the impairment causes the Participant to be unable to perform the duties of his or her position of employment or any substantially similar position of employment, a 29 month period of absence may be substituted for the six month period.

All determinations of whether a Separation from Service has occurred will be made in a manner consistent with Code Section 409A and the final regulations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp; ***2.20. Stock "Company Stock"***

"Company Stock" means the common stock of the Employer.

&nbsp;&nbsp;&nbsp;&nbsp; ***2.21. Valuation Date***

"Valuation Date" means each business day of the Plan Year that the New York Stock Exchange is open.

![img158871147_3.jpg](img158871147_3.jpg)

&nbsp;&nbsp;&nbsp;&nbsp; ***3.1. Participation***

The Participants in the Plan shall be those Directors of the Employer who satisfy the requirements of Section 2.01 of the Adoption Agreement.

&nbsp;&nbsp;&nbsp;&nbsp; ***3.2. Termination of Participation***

The Administrator may terminate a Participant's participation in the Plan in a manner consistent with Code Section 409A. If the Employer terminates a Participant's participation before the Participant experiences a

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**Core Laboratories, Inc. Nonqualified Deferred Compensation for Board of Directors <br>VCUSTBPD409A022025**

**Fidelity Internal Information**

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Separation from Service, the Participant's vested Accounts shall be paid in accordance with the provisions of Article 8.

![img158871147_4.jpg](img158871147_4.jpg)

&nbsp;&nbsp;&nbsp;&nbsp; ***4.1. Deferral Agreement***

If permitted by the Plan Sponsor in accordance with Section 4.01 of the Adoption Agreement, each Director may elect to defer his or her Compensation within the meaning of Section 3.01 of the Adoption Agreement by executing in writing or electronically, a deferral agreement in accordance with rules and procedures established by the Administrator and the provisions of this Article 4.

A new deferral agreement must be timely executed for each Plan Year during which the Director desires to defer Compensation. A Director who does not timely execute a deferral agreement shall be deemed to have elected zero deferrals of Compensation for such Plan Year.

A deferral agreement may be changed or revoked during the period specified by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp; ***4.2. Amount of Deferral***

A Director may elect to defer Compensation in any amount permitted by Section 4.01(a) of the Adoption Agreement.

&nbsp;&nbsp;&nbsp;&nbsp; ***4.3. Timing of Election to Defer***

Each Director who desires to defer Compensation otherwise payable during a Plan Year must execute a deferral agreement within the period preceding the Plan Year specified by the Administrator. Each Except as otherwise provided below, a Director who is designated as eligible to participate during a Plan Year may elect to defer Compensation otherwise payable during the remainder of such Plan Year in accordance with the rules of this Section 4.3 by executing a deferral agreement within the thirty (30) day period beginning on the date the Director is designated as eligible, whichever is applicable, if permitted by Section 4.01(b)(ii) of the Adoption Agreement. If Compensation is based on a specified performance period that begins before the Director executes his or her deferral agreement, the election will be deemed to apply to the portion of such Compensation equal to the total amount of Compensation for the performance period multiplied by the ratio of the number of days remaining in the performance period after the election becomes irrevocable and effective over the total number of days in the performance period. The rules of this paragraph shall not apply unless the Director can be treated as initially eligible in accordance with Treas. Reg. § 1.409A-2(a)(7).

&nbsp;&nbsp;&nbsp;&nbsp; ***4.4. Election of Payment Schedule and Form of Payment***

All elections of a payment schedule and a form of payment will be made in accordance with rules and procedures established by the Administrator and the provisions of this Section 4.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Plan Sponsor has elected to permit annual distribution elections in accordance with Section 6.01(g) of the Adoption Agreement the following rules apply. At the time a Director completes a deferral agreement, the Director must elect a distribution event (which includes a specified time) and a form of payment for the Compensation subject to the deferral agreement from among the options the Plan Sponsor has made available for this purpose and which are specified in 6.01(b) of the Adoption Agreement. Prior to the time required by Treas. Reg. § 1.409A-2, the Director shall elect a distribution event (which includes a specified time) and a form of payment for any Employer contributions that may be credited to the Participant's Account during the Plan Year. If a Director fails to elect a distribution event, he or she shall be deemed to have elected Separation from Service as the distribution event. If he or she fails to elect a form of payment, he or she shall be deemed to have elected a lump sum form of payment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Plan Sponsor has elected not to permit annual distribution elections in accordance with Section

6.01(g) of the Adoption Agreement the following rules apply. At the time a Director first completes a deferral agreement but in no event later than the time required by Treas. Reg. § 1.409A-2, the Director must elect a distribution event (which includes a specified time) and a form of payment for amounts credited to his or her Account from among the options the Plan Sponsor has made available for this purpose and which are specified in Section 6.01(b) of the Adoption Agreement. If a Director fails to elect a distribution event, he or she shall be deemed to have elected Separation from Service in the distribution event. If the Participant fails to elect a form of payment, he or she shall be deemed to have elected a lump sum form of payment.

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&nbsp;&nbsp;&nbsp;&nbsp; ***5.1. Establishment of Account***

For accounting and computational purposes only, the Administrator will establish and maintain an Account on behalf of each Participant which will reflect the credits made pursuant to Section 5.2, distributions or withdrawals, along with the earnings, expenses, gains and losses allocated thereto, attributable to the hypothetical investments made with the amounts in the Account as provided in Article 6. The Administrator may establish and maintain such other records and accounts, as it decides in its discretion to be reasonably required or appropriate to discharge its duties under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp; ***5.2. Credits to Account***

A Participant's Account will be credited for each Plan Year with the amount of his or her elective deferrals under Section 4.1 at the time the amount subject to the deferral election would otherwise have been payable to the Participant

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&nbsp;&nbsp;&nbsp;&nbsp; ***6.1. Investment Options***

The amount credited to each Account shall be treated as invested in the investment options designated for this purpose by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp; ***6.2. Adjustment of Accounts***

The amount credited to each Account shall be adjusted for hypothetical investment earnings, expenses, gains or losses in an amount equal to the earnings, expenses, gains or losses attributable to the investment options selected by the party designated in Section 9.01 of the Adoption Agreement from among the investment options provided in Section 6.1. If permitted by Section 9.01 of the Adoption Agreement, a Participant (or the Participant's Beneficiary after the death of the Participant) may, in accordance with rules and procedures established by the Administrator, select the investments from among the options provided in Section 6.1 to be used for the purpose of calculating future hypothetical investment adjustments to the Account or to future credits to the Account under Section 5.2 effective as of the Valuation Date coincident with or next following notice to the Administrator. Each Account shall be adjusted as of each Valuation Date to reflect: (a) the hypothetical earnings, expenses, gains, and losses described above; (b) amounts credited pursuant to Section 5.2; and (c) distributions or withdrawals. In addition, each Account may be adjusted for its allocable share of the hypothetical costs and expenses associated with the maintenance of the hypothetical investments provided in Section 6.1.

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&nbsp;&nbsp;&nbsp;&nbsp; ***7.1. Vesting***

A Participant, at all times, has a 100% nonforfeitable interest in the amounts credited to his or her Account attributable to his or her elective deferrals made in accordance with Section 4.1.

A Participant's right to the amounts credited to his or her Account attributable to Employer contributions made in accordance with Section 5.01 of the Adoption Agreement shall be determined in accordance with the relevant schedule and provisions in Section 7.01 of the Adoption Agreement. Upon a Separation from Service and after application of the provisions of Section 7.01 of the Adoption Agreement, the Participant shall forfeit the nonvested portion of his or her Account.

&nbsp;&nbsp;&nbsp;&nbsp; ***7.2. Death***

The Plan Sponsor may elect to accelerate vesting upon the death of the Participant in accordance with Section 7.01 of the Adoption Agreement and/or to accelerate distributions upon death in accordance with Section 6.01(b) or Section 6.01(c) of the Adoption Agreement. If the Plan Sponsor does not elect to accelerate distributions upon death in accordance with Section 6.01(b) or Section 6.01(c) of the Adoption Agreement, the vested amount credited to the Participant's Account will be paid in accordance with the provisions of Article 8.

A Participant may designate a Beneficiary or Beneficiaries or change any prior designation of Beneficiary or Beneficiaries in accordance with rules and procedures established by the Administrator. Whenever a Participant designates a new Beneficiary, all former Beneficiary designations by such Participant shall be revoked automatically. If a Participant and the Participant's spouse divorce, any designations of the spouse as Beneficiary shall become null and void. The former spouse shall be treated as the Beneficiary under the Plan only if after the divorce is final, the Participant expressly re-designates the former spouse as the Participant's Beneficiary.

A copy of the death notice or other sufficient documentation must be filed with and approved by the Administrator. If upon the death of the Participant there is, in the opinion of the Administrator, no designated Beneficiary for part or all of the Participant's vested Account, such amount will be paid to his or her estate (such estate shall be deemed to be the Beneficiary for purposes of the Plan) in accordance with the provisions of Article 8.

&nbsp;&nbsp;&nbsp;&nbsp; ***7.3. Disability***

If the Plan Sponsor has elected to accelerate vesting upon the occurrence of a Disability in accordance with Section 7.01 of the Adoption Agreement and/or to permit distributions upon Disability in accordance with Section 6.01(b) or Section 6.01(c) of the Adoption Agreement, the determination of whether a Participant has incurred a Disability shall be based on the definition of Disability in Section 6.01(h) of the Adoption Agreement and in a manner consistent with the requirements of Code Section 409A.

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&nbsp;&nbsp;&nbsp;&nbsp; ***8.1. Amount of Benefits***

The vested amount credited to a Participant's Account as determined under Articles 5, 6 and 7 shall determine and constitute the basis for the value of benefits payable to the Participant under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp; ***8.2. Method and Timing of Distributions***

Except as otherwise provided in this Article 8, distributions under the Plan shall be made in accordance with the elections made or deemed made by the Participant under Article 4. Distributions following a payment

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event shall commence at the time specified in Section 6.01(a) of the Adoption Agreement. If permitted by Section 6.01(f) of the Adoption Agreement, a Participant may elect, at least twelve months before a scheduled distribution event, to delay the payment date for a minimum period of sixty months from the originally scheduled date of payment, provided the election does not take effect for at least twelve months from the date on which the election is made. The distribution election change must be made in accordance with procedures and rules established by the Administrator. The Participant may, at the same time the date of payment is deferred, change the form of payment but such change in the form of payment may not effect an acceleration of payment in violation of Code Section 409A or the provisions of Treas. Reg. § 1.409A-2(b). For purposes of this Section 8.2, a series of installment payments is always treated as a single payment and not as a series of separate payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***8.3. Payment Election Overrides***

If the Plan Sponsor has elected one or more payment election overrides in accordance with Section 6.01(c) of the Adoption Agreement, the following provisions apply. Upon the occurrence of the first event selected by the Plan Sponsor, the remaining vested amount credited to the Participant's Account shall be paid in the form designated to the Participant or his or her Beneficiary regardless of whether the Participant had made different elections of time and/or form of payment or whether the Participant was receiving installment payments at the time of the event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***8.4. Cashouts of Amounts Not Exceeding Stated Limit***

If the vested amount credited to the Participant's Account does not exceed the limit established for this purpose by the Plan Sponsor in Section 6.01(d) of the Adoption Agreement at the time he or she incurs a Separation from Service for any reason, the Employer shall distribute such amount to the Participant at the time specified in Section 6.01(a) of the Adoption Agreement in a single lump sum cash payment following such Separation from Service regardless of whether the Participant had made different elections of time or form of payment as to the vested amount credited to his or her Account or whether the Participant was receiving installments at the time of such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***8.5. Change in Control***

If the Plan Sponsor has elected to permit distributions upon a Change in Control, the following provisions shall apply. A distribution made upon a Change in Control will be made at the time specified in Section 6.01(a) of the Adoption Agreement in the form elected by the Participant in accordance with the procedures described in Article 4. Alternatively, if the Plan Sponsor has elected in accordance with Section 11.02 of the Adoption Agreement to require distributions upon a Change in Control, the Participant's remaining vested Account shall be paid to the Participant or the Participant's Beneficiary at the time specified in Section 6.01(a) of the Adoption Agreement as a single lump sum payment. A Change in Control, for purposes of the Plan, will occur upon a change in the ownership of the Plan Sponsor, a change in the effective control of the Plan Sponsor or a change in the ownership of a substantial portion of the assets of the Plan Sponsor, but only if elected by the Plan Sponsor in Section 11.03 of the Adoption Agreement. The Plan Sponsor, for this purpose, includes any corporation identified in this Section 8.5.

If a Participant continues to make deferrals in accordance with Article 4 after he or she has received a distribution due to a Change in Control, the residual amount payable to the Participant shall be paid at the time and in the form specified in the elections he or she makes in accordance with Article 4 or upon his or her death or Disability as provided in Article 7.

Whether a Change in Control has occurred will be determined by the Administrator in accordance with the rules and definitions set forth in this Section 8.5. A distribution to the Participant will be treated as occurring

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upon a Change in Control if the Plan Sponsor terminates the Plan in accordance with Section 9.2 and distributes the Participant's benefits within twelve months of a Change in Control as provided in Section 9.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(a)</u><u>Relevant Corporations</u>. To constitute a Change in Control for purposes of the Plan, the event must relate to: (i) the corporation for whom the Participant is performing services at the time of the Change in Control, (ii) the corporation that is liable for the payment of the Participant's benefits under the Plan (or all corporations liable if more than one corporation is liable) but only if either the deferred compensation is attributable to the performance of services by the Participant for such corporation (or corporations) or there is a bona fide business purpose for such corporation (or corporations) to be liable for such payment and, in either case, no significant purpose of making such corporation (or corporations) liable for such payment is the avoidance of federal income tax, or (iii) a corporation that is a majority shareholder of a corporation identified in (i) or (ii), or any corporation in a chain of corporations in which each corporation is a majority shareholder of another corporation in the chain, ending in a corporation identified in (i) or (ii). A majority shareholder is defined as a shareholder owning more than fifty percent (50%) of the total fair market value and voting power of such corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(b)</u><u>Stock Ownership</u>. Code Section 318(a) applies for purposes of determining stock ownership. Stock underlying a vested option is considered owned by the individual who owns the vested option (and the stock underlying an unvested option is not considered owned by the individual who holds the unvested option). If, however, a vested option is exercisable for stock that is not substantially vested (as defined by Treas. Reg. § 1.83-3(b) and (j)) the stock underlying the option is not treated as owned by the individual who holds the option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(c)</u><u>Change in the Ownership of a Corporation</u>. A change in the ownership of a corporation occurs on the date that any one person or more than one person acting as a group, acquires ownership of stock of the corporation that, together with stock held by such person or group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of the stock of such corporation. If any one person or more than one person acting as a group is considered to own more than fifty percent (50%) of the total fair market value or total voting power of the stock of a corporation, the acquisition of additional stock by the same person or persons is not considered to cause a change in the ownership of the corporation (or to cause a change in the effective control of the corporation as discussed below in Section 8.5(d)). An increase in the percentage of stock owned by any one person, or persons acting as a group, as a result of a transaction in which the corporation acquires its stock in exchange for property will be treated as an acquisition of stock. Section 8.5(c) applies only when there is a transfer of stock of a corporation (or issuance of stock of a corporation) and stock in such corporation remains outstanding after the transaction. For purposes of this Section 8.5(c), persons will not be considered to be acting as a group solely because they purchase or own stock of the same corporation at the same time or as a result of a public offering. Persons will, however, be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase, or acquisition of stock, or similar business transaction with the corporation. If a person, including an entity, owns stock in both corporations that enter into a merger, consolidation, purchase or acquisition of stock, or similar transaction, such shareholder is considered to be acting as a group with other shareholders in a corporation only with respect to ownership in that corporation prior to the transaction giving rise to the change and not with respect to the ownership interest in the other corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(d)</u><u>Change in the Effective Control of a Corporation</u>. A change in the effective control of a corporation occurs on the date that either (i) any one person, or more than one person acting as a group, acquires (or has acquired during the twelve month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the corporation possessing fifty percent (50%) or more

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of the total voting power of the stock of such corporation, or (ii) a majority of members of the corporation's Board of Directors is replaced during any twelve month period by Directors whose

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appointment or election is not endorsed by a majority of the members of the corporation's Board of Directors prior to the date of the appointment or election, provided that for purposes of this paragraph (ii), the term corporation refers solely to the relevant corporation identified in Section 8.5(a) for which no other corporation is a majority shareholder for purposes of Section 8.5(a). In the absence of an event described in Section 8.5(d)(i) or (ii), a change in the effective control of a corporation will not have occurred. A change in effective control may also occur in any transaction in which either of the two corporations involved in the transaction has a change in the ownership of such corporation as described in Section 8.5(c) or a change in the ownership of a substantial portion of the assets of such corporation as described in Section 8.5(e). If any one person, or more than one person acting as a group, is considered to effectively control a corporation within the meaning of this Section 8.5(d), the acquisition of additional control of the corporation by the same person or persons is not considered to cause a change in the effective control of the corporation or to cause a change in the ownership of the corporation within the meaning of Section 8.5(c). For purposes of this Section 8.5(d), persons will or will not be considered to be acting as a group in accordance with rules similar to those set forth in Section 8.5(c) with the following exception. If a person, including an entity, owns stock in both corporations that enter into a merger, consolidation, purchase or acquisition of stock, or similar transaction, such shareholder is considered to be acting as a group with other shareholders in a corporation only with respect to the ownership in that corporation prior to the transaction giving rise to the change and not with respect to the ownership interest in the other corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Change in the Ownership of a Substantial Portion of a Corporation's Assets</u>. A change in the ownership of a substantial portion of a corporation's assets occurs on the date that any one person, or more than one person acting as a group (as determined in accordance with rules similar to those set forth in Section 8.5(d)), acquires (or has acquired during the twelve month period ending on the date of the most recent acquisition by such person or persons) assets from the corporation that have a total gross fair market value equal to or more than forty percent (40%) of the total gross fair market value of all of the assets of the corporation immediately prior to such acquisition or acquisitions. For this purpose, gross fair market value means the value of the assets of the corporation or the value of the assets being disposed of determined without regard to any liabilities associated with such assets. There is no Change in Control event under this Section 8.5(e) when there is a transfer to an entity that is controlled by the shareholders of the transferring corporation immediately after the transfer. A transfer of assets by a corporation is not treated as a change in ownership of such assets if the assets are transferred to (i) a shareholder of the corporation (immediately before the asset transfer) in exchange for or with respect to its stock, (ii) an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the corporation, (iii) a person, or more than one person acting as a group, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of all the outstanding stock of the corporation, or (iv) an entity, at least fifty (50%) of the total value or voting power of which is owned, directly or indirectly, by a person described in Section 8.5(e)(iii). For purposes of the foregoing, and except as otherwise provided, a person's status is determined immediately after the transfer of assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***8.6. Permissible Delays in Payment***

Distributions may be delayed beyond the date payment would otherwise occur in accordance with the provisions of Articles 7 and 8 in any of the following circumstances (as long as the Employer treats all payments to similarly situated Participants on a reasonably consistent basis):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Employer may delay payment if it reasonably anticipates that its deduction with respect to such payment would be limited or eliminated by the application of Code Section 162(m). Payment must be made during the Participant's first taxable year in which the Employer reasonably anticipates, or

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should reasonably anticipate, that if the payment is made during such year the deduction of such payment will not be barred by the application of Code Section 162(m) or during the period beginning

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with the Participant's Separation from Service and ending on the later of the last day of the Employer's taxable year in which the Participant separates from service or the 15<sup>th</sup> day of the third month following the Participant's Separation from Service. If a scheduled payment to a Participant is delayed in accordance with this Section 8.6(a), all scheduled payments to the Participant that could be delayed in accordance with this Section 8.6(a) will also be delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Employer may also delay payment if it reasonably anticipates that the making of the payment will violate federal securities laws or other applicable laws provided payment is made at the earliest date on which the Employer reasonably anticipates that the making of the payment will not cause such violation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Employer reserves the right to amend the Plan to provide for a delay in payment upon such other events and conditions as the Secretary of the Treasury may prescribe in generally applicable guidance published in the Internal Revenue Bulletin.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***8.7. Permitted Acceleration of Payment***

The Employer may permit acceleration of the time or schedule of any payment or amount scheduled to be paid pursuant to a payment under the Plan provided such acceleration would be permitted by the provisions of Treas. Reg. § 1.409A-3(j)(4), including the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(a)</u><u>Domestic Relations Order</u>. A payment may be accelerated if such payment is made to an alternate payee pursuant to and following the receipt and qualification of a domestic relations order as defined in Code Section 414(p).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(b)</u><u>Compliance with Ethics Agreement and Legal Requirements</u>. A payment may be accelerated as may be necessary to comply with ethics agreements with the Federal government or as may be reasonably necessary to avoid the violation of Federal, state, local or foreign ethics law or conflicts of laws, in accordance with the requirements of Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(c)</u><u>De Minimis Amounts</u>. A payment may be accelerated if (i) the amount of the payment is not greater than the applicable dollar amount under Code Section 402(g)(1)(B), and (ii) at the time the payment is made the amount constitutes the Participant's entire interest under the Plan and all other plans that are aggregated with the Plan under Treas. Reg. § 1.409A-1(c)(2).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(d)</u><u>FICA Tax</u>. A payment may be accelerated to the extent required to pay the Federal Insurance Contributions Act tax imposed under Code Sections 3101, 3121(a) and 3121(v)(2) of the Code with respect to compensation deferred under the Plan (the "FICA Amount"). Additionally, a payment may be accelerated to pay the income tax on wages imposed under Code Section 3401 of the Code on the FICA Amount and to pay the additional income tax at source on wages attributable to the pyramiding Code Section 3401 wages and taxes. The total payment under this subsection (d) may not exceed the aggregate of the FICA Amount and the income tax withholding related to the FICA Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(e)</u><u>Section 409A Additional Tax</u>. A payment may be accelerated if the Plan fails to meet the requirements of Code Section 409A; provided that such payment may not exceed the amount required to be included in income as a result of the failure to comply with the requirements of Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(f)</u><u>Offset</u>. A payment may be accelerated in the Employer's discretion as satisfaction of a debt of the Participant to the Employer, where such debt is incurred in the ordinary course of the service relationship between the Participant and the Employer, the entire amount of the reduction in any of

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the Employer's taxable years does not exceed $5,000, and the reduction is made at the same time and in the same amount as the debt otherwise would have been due and collected from the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Other Events</u>. A payment may be accelerated in the Administrator's discretion in connection with

such other events and conditions as permitted by Code Section 409A.

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&nbsp;&nbsp;&nbsp;&nbsp; ***9.1. Amendment by Plan Sponsor***

The Plan Sponsor reserves the right to amend the Plan (for itself and each Employer) through action of its Board of Directors or other authorized person. No amendment can directly or indirectly deprive any current or former Participant or Beneficiary of all or any portion of his or her Account which had accrued and vested prior to the amendment.

&nbsp;&nbsp;&nbsp;&nbsp; ***9.2. Plan Termination Following Change in Control or Corporate Dissolution***

If so elected by the Plan Sponsor in 11.01 of the Adoption Agreement, the Plan Sponsor reserves the right to terminate the Plan and distribute all amounts credited to all Participant Accounts within the 30 days preceding or the twelve months following a Change in Control as determined in accordance with the rules set forth in Section 8.5. For this purpose, the Plan will be treated as terminated only if all agreements, methods, programs and other arrangements sponsored by the Related Employer immediately after the Change in Control which are treated as a single plan under Treas. Reg. § 1.409A-1(c)(2) are also terminated so that all Participants under the Plan and all similar arrangements are required to receive all amounts deferred under the terminated arrangements within twelve months of the date the Plan Sponsor irrevocably takes all necessary action to terminate the arrangements. In addition, the Plan Sponsor reserves the right to terminate the Plan within twelve months of a corporate dissolution taxed under Code Section 331 or with the approval of a bankruptcy court pursuant to 11 U. S. C. Section 503(b)(1)(A) provided that amounts deferred under the Plan are included in the gross incomes of Participants in the latest of (a) the calendar year in which the termination and liquidation occurs, (b) the first calendar year in which the amount is no longer subject to a substantial risk of forfeiture, or (c) the first calendar year in which payment is administratively practicable.

&nbsp;&nbsp;&nbsp;&nbsp; ***9.3. Other Plan Terminations***

The Plan Sponsor retains the discretion to terminate the Plan if (a) all arrangements sponsored by the Plan Sponsor that would be aggregated with any terminated arrangement under Code Section 409A and Treas. Reg. § 1.409A-1(c)(2) are terminated, (b) no payments other than payments that would be payable under the terms of the arrangements if the termination had not occurred are made within twelve months of the termination of the arrangements, (c) all payments are made within twenty-four months of the date the Plan Sponsor takes all necessary action to irrevocably terminate and liquidate the arrangements, (d) the Plan Sponsor does not adopt a new arrangement that would be aggregated with any terminated arrangement under Code Section 409A and the regulations thereunder at any time within the three year period following the date of termination of the arrangement, and (e) the termination does not occur proximate to a downturn in the financial health of the Plan Sponsor. The Plan Sponsor also reserves the right to amend the Plan to provide that termination of the Plan will occur under such conditions and events as may be prescribed by the Secretary of the Treasury in generally applicable guidance published in the Internal Revenue Bulletin.

![img158871147_10.jpg](img158871147_10.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;***10.1. Establishment of Trust***

The Plan Sponsor may but is not required to establish a trust to hold amounts which the Plan Sponsor may contribute from time to time to correspond to some or all amounts credited to Participants under Section 5.2.

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Core Laboratories, Inc. Nonqualified Deferred Compensation for Board of Directors <br>VCUSTBPD409A022025

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In the event that the Plan Sponsor wishes to establish a trust to provide a source of funds for the payment of Plan benefits, any such trust shall be constructed to constitute an unfunded arrangement that does not affect the status of the Plan as an unfunded plan for purposes of Title I of ERISA and the Code. If the Plan Sponsor elects to establish a trust in accordance with Section 10.01 of the Adoption Agreement, the provisions of Sections 10.2 and 10.3 shall become operative.

&nbsp;&nbsp;&nbsp;&nbsp; ***10.2. Trust***

Any trust established by the Plan Sponsor shall be between the Plan Sponsor and a trustee pursuant to a separate written agreement under which assets are held, administered and managed, subject to the claims of the Plan Sponsor's creditors in the event of the Plan Sponsor's insolvency. The Plan Sponsor must notify the trustee in the event of a bankruptcy or insolvency.

&nbsp;&nbsp;&nbsp;&nbsp; ***10.3. Investment of Trust Funds***

Any amounts contributed to the trust by the Plan Sponsor shall be invested by the trustee in accordance with the provisions of the trust and the instructions of the Administrator. Trust investments need not reflect the hypothetical investments selected by Participants under Section 6.1 for the purpose of adjusting Accounts and the earnings or investment results of the trust need not affect the hypothetical investment adjustments to Participant Accounts under the Plan.

![img158871147_11.jpg](img158871147_11.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;***11.1. Powers and Responsibilities of the Administrator***

The Administrator has the full power and the full responsibility to administer the Plan in all of its details; subject, however, to the applicable requirements of ERISA. The Administrator's powers and responsibilities include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)To make and enforce such rules and procedures as it deems necessary or proper for the efficient administration of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)To interpret the Plan, its interpretation thereof to be final, except as provided in Section 11.2, on all persons claiming benefits under the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)To decide all questions concerning the Plan and the eligibility of any person to participate in the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)To administer the claims and review procedures specified in Section 11.2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)To compute the amount of benefits which will be payable to any Participant, former Participant or Beneficiary in accordance with the provisions of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)To determine the person or persons to whom such benefits will be paid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)To authorize the payment of benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)To make corrections and recover the overpayment of any benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)To comply with the reporting and disclosure requirements of Part 1 of Subtitle B of Title I of ERISA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)To appoint such agents, counsel, accountants, and consultants as may be required to assist in administering the Plan;

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Core Laboratories, Inc. Nonqualified Deferred Compensation for Board of Directors <br>VCUSTBPD409A022025

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) By written instrument, to allocate and delegate its responsibilities, including the formation of an Administrative Committee to administer the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***11.2. Claims and Review Procedures***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(a)</u><u>Claims Procedure</u>. If any person believes he or she is being denied any rights or benefits under the Plan, such person may file a claim in writing with the Administrator. If any such claim is wholly or partially denied, the Administrator will notify such person of its decision in writing. Such notification will contain (i) specific reasons for the denial, (ii) specific reference to pertinent Plan provisions, (iii) a description of any additional material or information necessary for such person to perfect such claim and an explanation of why such material or information is necessary, and (iv) a description of the Plan's review procedures and the time limits applicable to such procedures, including a statement of the person's right to bring a civil action following an adverse decision on review. If the claim involves a Disability, the denial must also include the standards that governed the decision, including the basis for disagreeing with any health care professionals, vocational professionals or the Social Security Administration as well as an explanation of the scientific or clinical judgment underlying the denial. Such notification will be given within 90 days (45 days in the case of a claim regarding Disability) after the claim is received by the Administrator. The Administrator may extend the period for providing the notification by 90 days (30 days in the case of a claim regarding Disability, which may be extended an additional 30 days) if special circumstances require an extension of time for processing the claim and if written notice of such extension and circumstance is given to such person within the initial 90 day period (45 day period in the case of a claim regarding Disability). If such notification is not given within such period, the claim will be considered denied as of the last day of such period and such person may request a review of his or her claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(b)</u><u>Review Procedure</u>. Within 60 days (180 days in the case of a claim regarding Disability) after the date on which a person receives a written notification of denial of claim (or, if written notification is not provided, within 60 days (180 days in the case of a claim regarding Disability) of the date denial is considered to have occurred), such person (or his or her duly authorized representative) may (i) file a written request with the Administrator for a review of his or her denied claim and of pertinent documents and (ii) submit written issues and comments to the Administrator. The Administrator will notify such person of its decision in writing. Such notification will be written in a manner calculated to be understood by such person and will contain specific reasons for the decision as well as specific references to pertinent Plan provisions. The notification will explain that the person is entitled to receive, upon request and free of charge, reasonable access to and copies of all pertinent documents and has the right to bring a civil action following an adverse decision on review. The decision on review will be made within 60 days (45 days in the case of a claim regarding Disability). The Administrator may extend the period for making the decision on review by 60 days (45 days in the case of a claim regarding Disability) if special circumstances require an extension of time for processing the request such as an election by the Administrator to hold a hearing, and if written notice of such extension and circumstances is given to such person within the initial 60-day period (45 days in the case of a claim regarding Disability). If the decision on review is not made within such period, the claim will be considered denied.

If the claim is regarding Disability, and the determination of Disability has not been made by the Social Security Administration, the Railroad Retirement Board, or under the Plan Sponsor's longterm disability plan, the person may, upon written request and free of charge, also receive the identification of medical or vocational experts whose advice was obtained in connection with the denial of a claim regarding Disability, even if the advice was not relied upon.

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Before issuing any decision with respect to a claim involving Disability, the Administrator will provide to the person, free of charge, the following information as soon as possible and sufficiently in advance

Core Laboratories, Inc. Nonqualified Deferred Compensation for Board of Directors <br>VCUSTBPD409A022025

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of the date on which the response is required to be provided to the person to allow the person a reasonable opportunity to respond prior to the due date of the response:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Any new or additional evidence considered, relied upon, or generated by the Administrator or other person making the decision; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)A new or additional rationale if the decision will be based on that rationale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Exhaustion of Claims Procedures and Right to Bring Legal Claim</u>. No action at law or equity shall be brought more than one year after the Administrator's affirmation of a denial of a claim, or, if earlier, more than four years after the facts or events giving rise to the claimant's allegation(s) or claim(s) first occurred.

&nbsp;&nbsp;&nbsp;&nbsp;***11.3. Plan Administrative Costs***

All reasonable costs and expenses (including legal, accounting, and employee communication fees) incurred by the Administrator in administering the Plan shall be paid by the Plan to the extent not paid by the Employer.

![img158871147_12.jpg](img158871147_12.jpg)

&nbsp;&nbsp;&nbsp;&nbsp; ***12.1. Unsecured General Creditor of the Employer***

Participants and their Beneficiaries, heirs, successors, and assigns shall have no legal or equitable rights, interests or claims in any property or assets of the Employer. For purposes of the payment of benefits under the Plan, any and all of the Employer's assets shall be, and shall remain, the general, unpledged, unrestricted assets of the Employer. Each Employer's obligation under the Plan shall be merely that of an unfunded and unsecured promise to pay money in the future.

&nbsp;&nbsp;&nbsp;&nbsp; ***12.2. Employer's Liability***

Each Employer's liability for the payment of benefits under the Plan shall be defined only by the Plan and by the deferral agreements entered into between a Participant and the Employer. An Employer shall have no obligation or liability to a Participant under the Plan except as provided by the Plan and a deferral agreement or agreements. An Employer shall have no liability to Participants employed by other Employers.

&nbsp;&nbsp;&nbsp;&nbsp; ***12.3. Limitation of Rights***

Neither the establishment of the Plan, nor any amendment thereof, nor the creation of any fund or account, nor the payment of any benefits, will be construed as giving to the Participant or any other person any legal or equitable right against the Employer, the Plan or the Administrator, except as provided herein; and in no event will the terms of employment or service of the Participant be modified or in any way affected hereby.

&nbsp;&nbsp;&nbsp;&nbsp; ***12.4. Anti-Assignment***

Except as may be necessary to fulfill a domestic relations order within the meaning of Code Section 414(p), none of the benefits or rights of a Participant or any Beneficiary of a Participant shall be subject to the claim of any creditor. In particular, to the fullest extent permitted by law, all such benefits and rights shall be free from attachment, garnishment, or any other legal or equitable process available to any creditor of the Participant and his or her Beneficiary. Neither the Participant nor his or her Beneficiary shall have the right to alienate, anticipate, commute, pledge, encumber, or assign any of the payments which he or she may expect to receive, contingently or otherwise, under the Plan, except the right to designate a Beneficiary to receive death benefits provided hereunder. Notwithstanding the preceding, the benefit payable from a Participant's Account may be reduced, at the discretion of the Administrator, to satisfy any debt or liability to the Employer.

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Core Laboratories, Inc. Nonqualified Deferred Compensation for Board of Directors <br>VCUSTBPD409A022025

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***12.5. Facility of Payment***

If the Administrator determines, on the basis of medical reports or other evidence satisfactory to the Administrator, that the recipient of any benefit payments under the Plan is incapable of handling his or her affairs by reason of minority, illness, infirmity or other incapacity, the Administrator may direct the Employer to disburse such payments to a person or institution designated by a court which has jurisdiction over such recipient or a person or institution otherwise having the legal authority under State law for the care and control of such recipient. The receipt by such person or institution of any such payments therefore, and any such payment to the extent thereof, shall discharge the liability of the Employer, the Plan and the Administrator for the payment of benefits hereunder to such recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***12.6. Notices***

Any notice or other communication to the Employer or Administrator in connection with the Plan shall be deemed delivered in writing if addressed to the Plan Sponsor at the address specified in Section 1.03 of the Adoption Agreement and if either actually delivered at said address or, in the case or a letter, five business days shall have elapsed after the same shall have been deposited in the United States mails, first-class postage prepaid and registered or certified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***12.7. Tax Withholding***

If the Employer concludes that tax is owing with respect to any deferral or payment hereunder, the Employer shall withhold such amounts from any payments due the Participant or from amounts deferred, as permitted by law, or otherwise make appropriate arrangements with the Participant or his or her Beneficiary for satisfaction of such obligation. Tax, for purposes of this Section 12.7 means any federal, state, local or any other governmental income tax, employment or payroll tax, excise tax, or any other tax or assessment owing with respect to amounts deferred, any earnings thereon, and any payments made to Participants under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***12.8. Indemnification***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Each Indemnitee (as defined in Section 12.8(e)) shall be indemnified and held harmless by the Employer for all actions taken by him or her and for all failures to take action (regardless of the date of any such action or failure to take action), to the fullest extent permitted by the law of the jurisdiction in which the Employer is incorporated, against all expense, liability, and loss (including, without limitation, attorneys' fees, judgments, fines, taxes, penalties, and amounts paid or to be paid in settlement) reasonably incurred or suffered by the Indemnitee in connection with any Proceeding (as defined in subsection (e)). No indemnification pursuant to this Section shall be made, however, in any case where (1) the act or failure to act giving rise to the claim for indemnification is determined by a court to have constituted willful misconduct or recklessness or (2) there is a settlement to which the Employer does not consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The right to indemnification provided in this Section shall include the right to have the expenses incurred by the Indemnitee in defending any Proceeding paid by the Employer in advance of the final disposition of the Proceeding, to the fullest extent permitted by the law of the jurisdiction in which the Employer is incorporated; provided that, if such law requires, the payment of such expenses incurred by the Indemnitee in advance of the final disposition of a Proceeding shall be made only on delivery to the Employer of an undertaking, by or on behalf of the Indemnitee, to repay all amounts so advanced without interest if it shall ultimately be determined that the Indemnitee is not entitled to be indemnified under this Section or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Indemnification pursuant to this Section shall continue as to an Indemnitee who has ceased to be such and shall inure to the benefit of his or her heirs, executors, and administrators. The Employer

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Core Laboratories, Inc. Nonqualified Deferred Compensation for Board of Directors <br>VCUSTBPD409A022025

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agrees that the undertakings made in this Section shall be binding on its successors or assigns and shall survive the termination, amendment, or restatement of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The foregoing right to indemnification shall be in addition to such other rights as the Indemnitee may enjoy as a matter of law or by reason of insurance coverage of any kind and is in addition to and not in lieu of any rights to indemnification to which the Indemnitee may be entitled pursuant to the bylaws of the Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)For the purposes of this Section, the following definitions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)"Indemnitee" shall mean each person serving as an Administrator (or any other person who is an employee, Director, or officer of the Employer) who was or is a party to, or is threatened to be made a party to, or is otherwise involved in, any Proceeding, by reason of the fact that he or she is or was performing administrative functions under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)"Proceeding" shall mean any threatened, pending, or completed action, suit, or proceeding (including, without limitation, an action, suit, or proceeding by or in the right of the Employer), whether civil, criminal, administrative, investigative, or through arbitration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***12.9. Successors***

The provisions of the Plan shall bind and inure to the benefit of the Plan Sponsor, the Employer and their successors and assigns and the Participant and the Participant's designated Beneficiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***12.10. Disclaimer***

It is the Plan Sponsor's intention that the Plan comply with the requirements of Code Section 409A. Neither the Plan Sponsor nor the Employer shall have any liability to any Participant should any provision of the Plan fail to satisfy the requirements of Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***12.11. Governing Law***

The Plan will be construed, administered, and enforced according to the laws of the State specified by the Plan Sponsor in Section 12.01 of the Adoption Agreement.

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Core Laboratories, Inc. Nonqualified Deferred Compensation for Board of Directors <br>VCUSTBPD409A022025

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## Exhibit 31.1

**Exhibit 31.1**

Certification

I, Lawrence V. Bruno, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Core Laboratories Inc. (the "Registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and

5. The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.

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| | | | |
|:---|:---|:---|:---|
| Date: | October 23, 2025 | By: | /s/ Lawrence V. Bruno |
|  |  |  | Lawrence V. Bruno |
|  |  |  | Chief Executive Officer |

---

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## Exhibit 31.2

**Exhibit 31.2**

Certification

I, Christopher S. Hill, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Core Laboratories Inc. (the "Registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and

5. The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.

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| | | | |
|:---|:---|:---|:---|
| Date: | October 23, 2025 | By: | /s/ Christopher S. Hill |
|  |  |  | Christopher S. Hill |
|  |  |  | Chief Financial Officer |

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## Exhibit 32.1

**Exhibit 32.1**

Certification of

Chief Executive Officer

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

I, Lawrence V. Bruno, Chief Executive Officer of Core Laboratories Inc. (the "Company"), hereby certify that the accompanying report on Form 10-Q for the quarter ended September 30, 2025, filed by the Company with the Securities and Exchange Commission on the date hereof fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended, (the "Report").

I further certify that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

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| | | | |
|:---|:---|:---|:---|
| Date: | October 23, 2025 | /s/ Lawrence V. Bruno | /s/ Lawrence V. Bruno |
|  |  | Name: | Lawrence V. Bruno |
|  |  | Title: | Chief Executive Officer |

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## Exhibit 32.2

**Exhibit 32.2**

Certification of

Chief Financial Officer

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

I, Christopher S. Hill, Chief Financial Officer of Core Laboratories Inc. (the "Company"), hereby certify that the accompanying report on Form 10-Q for the quarter ended September 30, 2025, filed by the Company with the Securities and Exchange Commission on the date hereof fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended, (the "Report").

I further certify that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

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| | | | |
|:---|:---|:---|:---|
| Date: | October 23, 2025 | /s/ Christopher S. Hill | /s/ Christopher S. Hill |
|  |  | Name: | Christopher S. Hill |
|  |  | Title: | Chief Financial Officer |

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