Total Revenue

4.6% decline (USD 129.6M Q1 2024 → USD 123.6M Q1 2025)

Total Revenue dropped by 4.6% largely due to diminished overall sales activity, particularly in product revenues affected by a suspended large international order and lower U.S. onshore drilling activity amid expanded sanctions. " "

Operating Income

48% decline (USD 8.57M Q1 2024 → USD 4.42M Q1 2025)

Operating Income fell sharply as lower revenue and the absence of one-time gains (e.g., insurance recovery and asset sale gains seen in prior periods) were compounded by increased charges such as severance and facility exit costs. " "

Net Income

95% decline (USD 3.49M Q1 2024 → USD 0.069M Q1 2025, turning negative at –USD 0.154M)

Net Income deteriorated dramatically due to the compounded effect of lower operating income, increased general and administrative expenses, adverse fluctuations in other expense items, and tax adjustments that further eroded the bottom line compared to the previous period. " "

Product Sales Revenue

14% decline (USD 33.14M Q1 2024 → USD 28.49M Q1 2025)

Product Sales Revenue fell by about 14% driven by a suspended international order amid expanded sanctions and a reduction in U.S. onshore rig activity (with a 5% lower rig count reported), which significantly reduced bulk shipments compared to the previous year. " " "

Services Revenue

Nearly flat (USD 96.50M Q1 2024 → USD 95.09M Q1 2025)

Services Revenue remained almost unchanged as lower international market activity due to geopolitical conflicts was largely offset by strong U.S. well completion diagnostic services, keeping the overall services revenue stable relative to Q1 2024. " "

Cash and Cash Equivalents

48% increase (USD 14.91M Q1 2024 → USD 22.11M Q1 2025)

Cash and Cash Equivalents surged by roughly 48% thanks to robust operating cash flows—which included positive adjustments from stock-based compensation and depreciation—and an insurance recovery gain, offsetting outflows from higher debt repayments and capital expenditures. " "

Total Company Revenue

Q2 2025

$121M to $127M "

$128M to $134M "

raised

Total Operating Income

Q2 2025

$10.2M to $12.8M "

$13.1M to $15.7M "

raised

Operating Margins

Q2 2025

9% "

11% "

raised

Earnings Per Share (EPS)

Q2 2025

$0.12 to $0.16 "

$0.17 to $0.21 "

raised

Effective Tax Rate

Q2 2025

25% "

25% "

no change

Reservoir Description Revenue

Q2 2025

$82M to $85M "

$85M to $89M "

raised

Reservoir Description Operating Income

Q2 2025

$9M to $10.7M "

$11M to $13M "

raised

Production Enhancement Revenue

Q2 2025

$39M to $42M "

$43M to $45M "

raised

Production Enhancement Operating Income

Q2 2025

$1.1M to $2M "

$2M to $2.6M "

raised

Margin Performance Dynamics

Q2 2024: Discussed margin recovery in Production Enhancement and stable margins in Reservoir Description. " " Q3 2024: Emphasized recovery in Reservoir Description but compression in Production Enhancement due to weather-related disruptions. " " Q4 2024: Noted mixed performance with production margins improving and Reservoir Description facing compression from geopolitical challenges. " "

Q1 2025: Continued focus on margin dynamics with production enhancement margins improving (driven by high‐margin diagnostic services and operational efficiencies) while Reservoir Description margins compressed due to geopolitical events and expanded sanctions. " " "

Consistent discussion with recurring themes; while diagnostic services are recovering, geopolitical headwinds continue to compress margins in key segments.

International Market Opportunities and Expansion

Q2 2024: Positive outlook on sustainable international growth supported by client meetings and expanding opportunities. " " Q3 2024: Highlighted multiyear recovery in international activity with robust engagement in regions like the Middle East, Asia Pacific, and West Africa. " " " Q4 2024: Emphasized global opportunities despite geopolitical disruptions and sanctions. " "

Q1 2025: Continued global focus with segmented regional outlooks – strong opportunities in the Middle East and Africa, positive signs in Asia Pacific, and mixed political impacts in Colombia and Ecuador – underscoring the long-term nature of the international cycle. " "

Recurring focus remains; sentiment stays optimistic overall but is tempered by persistent geopolitical challenges.

Geopolitical Uncertainty and Sanctions Impact

Q2 2024: Ongoing conflicts in the Russia-Ukraine region and Middle East created headwinds, impacting demand for assay services. " " " Q3 2024: Noted persistent geopolitical conflicts with some operational improvements in margins but continuing risks. " " Q4 2024: Detailed the negative impact of sanctions on crude assay work and product shipments, affecting revenue across segments. " " "

Q1 2025: Expanded sanctions and ongoing geopolitical tensions contributed to a 4% revenue decline and 7% drop in Reservoir Description revenue, although management expressed cautious optimism for future recovery. " " "

Persistent negative sentiment; the challenges remain consistent with only slight optimism for recovery if conditions improve.

U.S. Market Challenges and Declining Onshore Activity

Q2 2024: Acknowledged softness due to low natural gas prices and market consolidation effects. " " " Q3 2024: Mentioned weather events impacting rig activity and declining frac spreads affecting domestic sales. " " " Q4 2024: Highlighted an 8% sequential decline in U.S. product sales and manufacturing inefficiencies related to lower onshore operations. " " "

Q1 2025: Continued softness in U.S. land activity is noted, with price volatility and sanctions exacerbating the decline; however, there is some offset from rising diagnostic services driven by more complex completions. " " "

Consistent downward trend in onshore activity with ongoing challenges; partial offset via advances in diagnostic services.

Enhanced Diagnostic Services and Reservoir Description Growth

Q2 2024: Discussed innovative use of chemical tracers in diagnostic services and steady 2% revenue growth in Reservoir Description despite geopolitical headwinds. " " " Q3 2024: Reported nearly 13% year-over-year improvement in diagnostic services revenue and a 3% increase in Reservoir Description revenue with higher operating margins. " " Q4 2024: Noted a 15% increase in diagnostic services and year-over-year growth for Reservoir Description despite some geopolitical pressure. " "

Q1 2025: Diagnostic services remain robust—fueled by high-margin U.S. land diagnostic work and catch-up projects in the Gulf—while Reservoir Description revenue fell 7% with margin compression driven by geopolitical factors. " " "

Mixed evolution: Diagnostic services continue to grow robustly, yet Reservoir Description faces compression from external geopolitical pressures, reflecting divergent performance within the segment.

Project-Based Revenue Volatility and Execution Risks

Q2 2024: Noted slower client commitment and delays linked to geopolitical tensions and weather-induced disruptions that could affect revenue timing. " " Q3 2024: Indirectly addressed through weather delays, rig availability constraints, and manufacturing inefficiencies. " " " " Q4 2024: Highlighted risks related to sanctions, execution delays, and even reports of dry holes affecting project-based revenue. " " "

Q1 2025: Similar factors persist with delayed projects (e.g. rescheduled Gulf of Mexico diagnostics), sanctions affecting international product orders, and overall revenue volatility from external uncertainties. " " "

Recurring concern; execution risks and revenue volatility remain consistently challenging, driven by external events with no significant change in overall sentiment.

Emerging Technology Innovations (CCS and P&A Pulverizer)

Q2 2024: No discussion of emerging technologies. Q3 2024: Introduced detailed discussion on CCS projects—leveraging EOR expertise—and unveiled the patented P&A Pulverizer technology with successful field trials and plans for global introduction. " " " Q4 2024: No mention of these innovations.

Q1 2025: No information on CCS or P&A Pulverizer technology was provided in the earnings call.

Intermittent coverage: A strong focus in Q3 2024 is not carried into Q1 2025, suggesting that innovations were highlighted in one period but are not a current priority in the latest call.

Financial Discipline and Leverage Reduction

Q2 2024: Reported a reduction in net debt by $15.8 million and a leverage ratio drop to 1.66, emphasizing free cash flow application. " " Q3 2024: Continued debt reductions lowered the leverage ratio to 1.47, with free cash flow dedicated to debt paydown and progressive improvements. " " " Q4 2024: Achieved a historical low leverage ratio of 1.31 through significant debt reduction measures. " "

Q1 2025: Continued commitment with a further net debt reduction of approximately $5 million, maintaining a leverage ratio at 1.31—the lowest in 8 years—and ongoing targets for using free cash flow to strengthen the balance sheet. " " "

Steady improvement: The focus on reducing debt and maintaining strict financial discipline remains consistent, with progressive leverage reductions and strong free cash flow utilization reaffirming shareholder value.

Market Consolidation and Client Reorganization

Q2 2024: Discussed by Lawrence Bruno as impacting U.S. activity with market consolidations leading to a period of operational reorganization. " Q3 2024: Briefly mentioned in relation to recent E&P consolidations negatively affecting U.S. land activity. " Q4 2024: No specific discussion on this topic.

Q1 2025: No mention of market consolidation or client reorganization topics was made.

Disappeared: Previously discussed in Q2 and Q3, but not mentioned in Q1 2025, indicating a de-emphasis of this topic in the current period.

Exploration and Hydrocarbon Discovery Risks

Q4 2024: Addressed risks with specific mention of dry holes in West Africa and the South Atlantic margin that negatively impacted reservoir analysis work. " Q3 2024: Minimal indirect reference through discussion of large offshore projects and de-risking efforts. " Q2 2024: No significant mention of these risks.

Q1 2025: No explicit discussion of exploration or hydrocarbon discovery risks was provided in the earnings call.

Reduced emphasis: The topic was specifically noted in Q4 2024 but is absent from Q1 2025, suggesting a decreased focus on exploration risk issues in the current period.