Ranger Energy Services, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported third quarter 2026 revenue of $162.8 million, an increase of $33.9 million (26%) year-over-year from $128.9 million in Q3 2025, and a decrease of $13.7 million (8%) sequentially from $176.5 million in Q2 2026.
• Net income for the quarter was $2.5 million ($0.10 diluted EPS), compared to $1.2 million ($0.05 diluted EPS) in Q3 2025 and $6.9 million ($0.29 diluted EPS) in Q2 2026.
• Adjusted EBITDA was $20.1 million, representing a 12.3% margin, an increase of $3.3 million (20%) year-over-year from $16.8 million in Q3 2025, and a decrease of $8.5 million (30%) sequentially from $28.6 million in Q2 2026.
• Generated Free Cash Flow of $20.0 million for the quarter; year-to-date Free Cash Flow was $18.3 million, down from $25.8 million in the prior year period.
• Cost of services was $138.0 million (85% of revenue) in Q3 2026, compared to $109.1 million (85% of revenue) in Q3 2025 and $142.7 million in Q2 2026.
• General and administrative expenses were $7.7 million in Q3 2026, up from $6.6 million in Q3 2025 and $7.6 million in Q2 2026.
• Cash provided by operating activities was $30.5 million for the quarter and $53.5 million year-to-date.
• Cash purchases of property and equipment were $35.2 million year-to-date, compared to $19.1 million in the prior year period.

Guidance and Future Outlook:

• Management targets $100 million of annual EBITDA, supported by an expanded platform and strategic initiatives.
• The ECHO hybrid electric rig build program is running ahead of schedule with positive early customer feedback.
• The STEP coil tubing acquisition is expected to contribute over $10 million of EBITDA in 2027.
• The contracted ECHO fleet is expected to reach 24 rigs by the end of 2027.
• Management anticipates higher revenue and a return to mid-single-digit margins in the Wireline segment in the fourth quarter as new work programs begin in October.
• The company expects to capitalize on growth opportunities and complete additional accretive acquisitions due to its strong balance sheet.

Business Segments and Product Lines:

• High Specification Rigs: Revenue was $110.5 million (down 2% sequentially, up 29% year-over-year). Rig hours decreased 2% sequentially to 143,500 but increased 29% year-over-year to 143,500. Hourly rig rates were $770 per hour, up 6% year-over-year. Segment Adjusted EBITDA was $18.4 million.
• Processing Solutions and Ancillary Services: Revenue was $40.0 million (down 10% sequentially, up 30% year-over-year). Legacy Rentals and Plugging and Abandonment performed well, while Transportation, Mixing Plants, and Tubing Inspection were below expectations, prompting reorganization. Segment Adjusted EBITDA was $6.8 million.
• Wireline Services: Revenue was $12.3 million (down 34% sequentially, down 28% year-over-year). Wireline Completions reported 700 completed stages, down from 2,560 in Q2 2026 and 1,800 in Q3 2025. Segment Adjusted EBITDA was $0.2 million.
• Acquisitions: Completed the acquisition of STEP Energy Services' US coil tubing assets on October 8, 2026, positioning Ranger as the second-largest coil tubing provider in the lower 48 market.
• ECHO Fleet: Secured contracts for four additional ECHO hybrid electric workover rigs, bringing the total fleet in operation or construction to 24 rigs.

Market and Competitive Landscape:

• Customers are managing spend and budgets more closely, moderating activity and creating white space across the fleet.
• Smaller displaced competitors are offering price reductions to regain market share, leading to pricing challenges.
• Ranger maintained pricing discipline despite competitive pressure, expecting the market to normalize and budgets to reset in the next year.
• The ECHO rig program is expected to provide a competitive advantage through efficiency gains and lower overall service costs for customers.

Risks and Challenges:

• Faced unexpectedly softer activity and pricing challenges during the quarter.
• Experienced margin degradation due to increased inflationary costs, specifically an incremental $1.5 million in employee medical costs quarter-over-quarter.
• Wireline segment activity declined due to breaks in customer well programs and gaps in work schedules.
• Certain acquired service lines (Transportation, Mixing Plants, Tubing Inspection) performed below expectations, requiring operational reorganization.
• Year-over-year Free Cash Flow decrease was impacted by growing accounts receivable and contract assets balances resulting from customer payment term changes to 90 days.

Management Commentary and Tone:

• CEO Stuart Bodden described the quarter as marking "meaningful strategic progress" despite a challenging competitive dynamic.
• Management expressed confidence in the company's ability to deliver durable, long-term value, citing a "competitive moat" deeper than ever before.
• The tone was forward-looking and strategic, emphasizing the strength of the balance sheet and the potential of the ECHO program and M&A approach.
• Management noted that the company has "more ways to grow than at any point in our history" heading into 2027.

Other Key Points:

• Paid off all borrowings on the revolving credit facility during the quarter, exiting with zero net debt.
• Total liquidity was $76.2 million as of September 30, 2026, consisting of $70.2 million available under the credit facility and $6.0 million in cash.
• Repurchased 142,100 shares for $2.2 million in Q3 2026; year-to-date shareholder returns totaled $11.7 million (64% of YTD Free Cash Flow).
• Total share repurchases since 2023 inception reached 4,783,900 shares for $54.1 million at an average price of $11.31 per share.
• Board of Directors declared a cash dividend of $0.06 per share, payable December 4, 2026.
• Accounts receivable increased to $113.5 million as of September 30, 2026, from $77.9 million at December 31, 2025.