Executive Summary

Q1 2025 revenue rose ~6% q/q to $150.5M (upper end of guide) and +6% y/y; adjusted EBITDA improved ~17% q/q to $16.5M, while net loss narrowed to $(7.1)M and diluted EPS of $(0.18) .
Nine outperformed a flat U.S. rig count via cementing share gains (cementing jobs +11% q/q; revenue +~4%) and much higher coiled tubing utilization (revenue +~16% q/q), offset by Northeast wireline pricing resets; management flagged new tariff headwinds and emerging Permian pricing pressure in May .
Liquidity improved with a new $125M ABL facility (maturity to May 2028, $50M accordion) that adds borrowing base availability and lowers covenant triggers; total Q1 liquidity was $53.8M (cash $17.3M + $36.5M ABL availability) .
Q2 outlook: management expects both revenue and adjusted EBITDA down q/q; guided Q2 revenue to $138–$148M given lower oil prices and tariff cost pressure (pricing pressure noted in Permian) .
Additional stock overhang: NYSE price deficiency notice (potential reverse split to regain compliance) and ongoing market cap plan; shares continue trading with a “.BC” designation during cure period .

What Went Well and What Went Wrong

What Went Well
- Strong execution vs market: “we increased our revenue by approximately 6%, with revenue coming in the upper end of the originally provided guidance… incremental adjusted EBITDA margins ~26%” (Ann Fox) .
- Operational wins: coiled tubing utilization drove revenue +~16% q/q; cementing jobs +~11% with revenue +~4% despite flat rig count (Ann Fox; CFO detail) .
- Liquidity upgrade: closed new $125M ABL, extending revolver maturity and adding availability; “significantly increases our liquidity and financial flexibility” (CFO) .
What Went Wrong
- Tariff and pricing headwinds: management began seeing pricing pressure in Permian in May and expects tariff cost increases (steel/aluminum) to impact wireline guns, coiled tubing reels, and tool components .
- Regional pressure: Northeast wireline stage pricing reset lower on 2024 bids amid weak gas prices (pricing “mostly stable” ex-NE) .
- Profitability/FCF: still loss-making (net loss $(7.1)M) and used $(5.3)M cash in operating activities in Q1; interest burden remains high on 13% notes .

Financial Results

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($M)	138.2	141.4	150.5
Net Income (Loss) ($M)	(10.1)	(8.8)	(7.1)
Diluted EPS ($)	(0.26)	(0.22)	(0.18)
Gross Profit ($M)	16.1	16.5	19.5
Adjusted EBITDA ($M)	14.3	14.1	16.5

Service-line revenue breakdown (Q1 2025):

Service Line	Q1 2025 Revenue ($M)
Cement	57.2
Wireline	29.6
Coiled Tubing	29.9
Tools (Products)	33.8
Total	150.5

Selected KPIs (Q1 2025):

KPI	Q1 2025
Cementing jobs completed	1,245
Wireline stages completed	7,713
Completion tool stages completed	29,057
Coiled tubing revenue q/q	+~16%

Liquidity and balance sheet (Q1 2025):

Metric	Q1 2025
Cash and Equivalents ($M)	17.3
ABL Availability ($M)	36.5
Total Liquidity ($M)	53.8
ABL Borrowings ($M)	47.0 (3/31)
Senior Secured Notes (13% due 2028) ($M)	300.0 principal

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($M)	Q2 2025	—	138–148	New guidance (down q/q)
Adjusted EBITDA	Q2 2025	—	Down vs Q1 (directional)	Lower
Capital Expenditures ($M)	FY 2025	15–25 (unchanged)	15–25	Maintained

Notes: Q1 2025 revenue achieved upper end of original Q1 guide ($146–$152M) . Management did not provide quantitative margin/EPS guidance for Q2.

Earnings Call Themes & Trends

Topic	Q3 2024 (Q-2)	Q4 2024 (Q-1)	Q1 2025 (Current)	Trend
Cementing market share	Revenue +12% q/q on share gains	Continued gains; ~19% share in operated regions by Q4	Jobs +~11% q/q; revenue +~4% q/q	Sustained share gains driving mix
Pricing	Stabilized overall; gas basins soft	Stable into Q1; typical Q4 seasonal headwinds	Permian pricing pressure emerging in May; NE wireline stage price reductions	Deteriorating in oil-weighted basin
Tariffs (steel/aluminum)	—	Cited as potential risk	Direct cost impacts to wireline guns, coiled tubing reels, tool components; intent to pass-through	New headwind; pass-through in progress
Natural gas basins	Weak activity despite low prices	Still soft; hopeful on 2025	Gas prices improved in Q1 but activity flat; optimistic medium term	Potential upside if gas activity returns
Technology/tools	Pincer Hybrid/plug innovation	New R&D/testing facility planned	Strong plug performance; long laterals supportive; international tool growth	Innovation-led differentiation
Liquidity/capital	ABL balance ~$50M; liquidity $43.3M	Liquidity $52.1M	New $125M ABL; liquidity $53.8M; more covenant headroom	Improved flexibility
Listing status	—	Market cap deficiency plan (NYSE)	New NYSE $1 price deficiency notice	Added stock overhang

Management Commentary

“We generated adjusted EBITDA of $16.5 million, an increase of approximately 17% quarter-over-quarter… driven in large part by increased activity from our market share gains, most specifically within cementing… coiled tubing… increased revenue by approximately 16% quarter-over-quarter.” — Ann Fox .
“The recent decline in oil price in conjunction with increased costs due to tariffs has created uncertainty… we anticipate both revenue and adjusted EBITDA to decline compared to Q1 and project Q2 revenue between $138 million and $148 million.” — Ann Fox .
“The new ABL will provide us with $125 million of commitments and a $50 million uncommitted accordion… provides ~ $22 million of incremental covenant compliant liquidity… extends the previous maturity by ~9 months… will increase annual cash interest expense by approximately $1 million.” — Guy Sirkes .
“We have seen stage price reductions in the Northeast… repriced work for 2025 bids… Coiled tubing revenue increased by approximately 16% this quarter. Utilization was significantly higher in Q1 versus Q4.” — Ann Fox .

Q&A Highlights

Pricing/tariffs: Pricing pressure mainly in West Texas/Permian; magnitude too early to quantify; tariffs are transparent and intended to be passed through to customers (wireline guns, coiled tubing reels, tool components) .
Outlook calibration: Q2 guide incorporates uncertainty from oil price declines, OPEC production signals, and pending trade policy developments; April was strong, but June visibility lower (management taking conservative stance) .
Gas basins: No immediate reallocation of equipment; positioned to benefit as gas activity improves; maintained presence through 2024 downturn .
Technology/long laterals: Longer laterals and complexity supportive of premium plug demand; continued innovation in dissolvables; international tool sales seen as a “bright spot” (no intent to scale heavy international services) .

Estimates Context

Q1 2025 vs S&P Global consensus: Revenue beat slightly; EPS missed slightly; EBITDA below consensus.

Metric	Consensus	Actual
Revenue ($M)	149.2*	150.5
Primary EPS ($)	(0.15)*	(0.18)
EBITDA ($M)	15.7*	14.4–14.7 (EBITDA)

Values with asterisks retrieved from S&P Global. Note: Company-reported Adjusted EBITDA was $16.5M; GAAP EBITDA reconciled to ~$14.4M, explaining divergence vs EBITDA consensus approach .

Key Takeaways for Investors

Execution outpaced market: Share gains in cementing and higher coiled tubing utilization lifted revenue/EBITDA despite flat rigs; this mix tailwind could persist if cementing share holds or expands .
Near-term reset: Q2 guide embeds weaker oil price/pricing and tariff headwinds; expect sequential revenue/EBITDA decline with Permian pressure; monitor pass-through success on tariffs in wireline/tools .
Optionality in gas: Natural gas price recovery has not yet translated into activity; Nine is well-positioned across Haynesville/Appalachia if completions pick up in 2H25–2026 .
Liquidity improved: New $125M ABL extends runway and adds availability, though higher ABL interest adds ~+$1M annual cash interest; 13% 2028 notes remain the key overhang .
Stock technicals: NYSE listing deficiency (price and earlier market cap) is a potential catalyst for reverse split and a near-term sentiment overhang until compliance is restored .
Watchlist into Q2: Permian pricing, tariff pass-through pace, gas basin activity, tool sales (domestic/international), and working capital/cash conversion given Q1 operating cash outflow .
Medium-term thesis: If commodity backdrop stabilizes and gas basins recover, Nine’s cementing share gains, technology-led tool portfolio, and improved liquidity could drive operating leverage and improved ROIC vs 2024 baselines .

Nine Energy Service, Inc. (NINE)·Q1 2025 Earnings Summary