Nine Energy Service — Second Quarter 2026 Earnings Summary

Financial Performance

• Reported second quarter 2026 revenue of $141.8 million.
• Reported net loss of $(4.9) million, or $(0.35) per diluted and basic share.
• Reported adjusted EBITDA of $8.6 million.
• Reported gross profit of $12.8 million and adjusted gross profit of $19.9 million.
• General and administrative expenses were $15.6 million; depreciation and amortization expense was $7.2 million.
• Net cash used in operating activities was $2.3 million.
• Capital expenditures totaled $4.8 million for the quarter.
• Total liquidity as of June 30, 2026, was $46.8 million, consisting of $16.8 million in cash and cash equivalents and $30.0 million available under the revolving credit facility.
• Borrowings under the revolving credit facility were $97.3 million as of June 30, 2026.
• Total assets were $317.7 million and total liabilities were $188.1 million as of June 30, 2026.

Guidance and Future Outlook

• Anticipates third-quarter revenue and profitability to be flat to modestly down compared to the second quarter due to sustained revenue loss from a damaged coiled tubing unit and persistent cost inflation.
• Expects the average U.S. rig count during the third quarter to be relatively flat to slightly up compared to the second quarter.
• Full-year 2026 capital expenditures guidance remains unchanged at $20 to $30 million.
• One of two affected large-diameter coiled tubing units returned to service early in the third quarter; the second unit remains under repair with an expected return near year-end.
• Coiled Tubing operations are expected to remain constrained until the second unit is restored.

Business Segments and Product Lines

• Coiled Tubing business experienced significant margin compression due to maintenance-related issues affecting two large-diameter units (approximately 17% of the fleet) and inflationary pressures on consumables, labor, and repairs.
• Completion Tools business delivered a strong quarter supported by increased domestic sales and continued growth in international markets.
• Demand for dissolvable solutions is increasing as operators extend lateral lengths.
• Cementing business remained a steady contributor despite uneven activity levels and inflationary cost pressures.
• Wireline business is executing an expansion in the Haynesville Basin.

Market and Competitive Landscape

• Industry activity improved modestly during the second quarter.
• The macro backdrop remains uncertain, particularly given recent geopolitical events.
• The company faces inflationary pressures across several cost categories including consumables, labor, and repairs and maintenance.

Risks and Challenges

• Profitability negatively impacted by margin compression in the Coiled Tubing business.
• Equipment maintenance issues resulting in fleet downtime.
• Persistent cost inflation across service lines.
• Uncertainty regarding the macroeconomic environment and geopolitical events.
• Potential for reduced sales or market share due to intense competition in dissolvable plug products.
• Risks associated with the recent emergence from bankruptcy and the application of fresh start accounting.

Management Commentary and Tone

• Ann Fox, President and CEO, stated that while revenue increased sequentially and was within guidance, adjusted EBITDA was below the guidance range.
• Management expressed confidence in the long-term value potential of the company despite near-term challenges, citing a stronger balance sheet, growing technology portfolio, and an excellent team.
• Management emphasized a continued focus on operational execution, cost discipline, and expanding the adoption of differentiated technologies.

Other Key Points

• The company emerged from bankruptcy on March 5, 2026, applying fresh start accounting which resulted in a new basis of accounting and the company becoming a new entity for financial reporting purposes.
• Predecessor and Successor financial information are not comparable due to the application of fresh start accounting.
• The company has a total of 13,949,990 shares of common stock issued and outstanding as of June 30, 2026.
• Accumulated deficit was $(6.1) million as of June 30, 2026.
• The company reported a provision for income taxes of approximately $0.4 million for the quarter.