Executive Summary

Q3 2025 revenue and profitability declined sequentially amid rig reductions and intense pricing pressure; revenue was $132.0M and adjusted EBITDA $9.6M, below Nine’s prior Q3 revenue guidance range of $135–$145M, with diluted EPS of $(0.35) .
Management cited Permian-led activity declines, unsolicited competitive bids, and customer re-bids outside typical seasons; tools also lost domestic share due to customer consolidation and shifts in casing design, while international tools grew YTD ~19% .
Liquidity was $40.3M at 9/30; borrowing base is expected to step down ~$2.2M monthly Oct–Jan, reducing availability and liquidity absent appraisal upside; senior secured notes ECF offer not required (no ECF generated) .
Q4 outlook: management guides revenue to $122–$132M and expects revenue and adjusted EBITDA down vs Q3, citing seasonality, holidays, budget exhaustion, and continued low pricing; 2025 capex remains $15–$25M, likely at the low end .
Street consensus (S&P Global) was not available for EPS/Revenue; therefore we cannot characterize a Street beat/miss this quarter. Consensus coverage appeared insufficient; see Estimates Context for details (values via S&P Global) [Values retrieved from S&P Global].

What Went Well and What Went Wrong

What Went Well
- International tools momentum: international revenue up ~19% YTD vs 2024, driven by UAE/Argentina/Australia; management anticipates full-year growth despite a tough backdrop .
- Technical execution: completed a landmark high-heat/high-pressure cementing job in the Haynesville using a latex-based slurry that enabled higher rates, lower pump pressures, and full returns .
- Natural gas exposure supportive: gas prices “mostly supportive,” aiding Northeast/Haynesville efficiency and sentiment; management remains positive on medium/long-term gas outlook .
What Went Wrong
- Broad pricing pressure and market softness: Permian-led rig declines since Q1 led to outsized price pressure across service lines; Q3 revenue fell sequentially in every division .
- Completion tools domestic share loss: customer consolidation and casing-size design changes drove share loss and revenue/earnings impact; R&D is redesigning tools to the new casing mix .
- Liquidity headwinds: expected ABL borrowing base step-downs (~$2.2M each on 10/31, 11/30, 12/31, 1/31) will reduce availability and total liquidity, pending a mid-December appraisal .

Financial Results

Consolidated P&L Snapshot (oldest → newest)

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Revenue ($M)	138.2	150.5	147.3	132.0
Net Loss ($M)	(10.1)	(7.1)	(10.4)	(14.6)
Diluted EPS ($)	(0.26)	(0.18)	(0.25)	(0.35)
EBITDA ($M)	11.6	14.4	12.2	7.6
Adjusted EBITDA ($M)	14.3	16.5	14.1	9.6
Gross Profit ($M)	16.1	19.5	17.3	11.9

Notes: EBITDA is GAAP; Adjusted EBITDA adds stock comp, cash awards, restructuring, etc., per reconciliations .

Segment Revenue (2025 progression)

Segment Revenue ($M)	Q1 2025	Q2 2025	Q3 2025
Cementing	57.2	52.2	49.3
Wireline	29.6	33.0	28.2
Completion Tools	33.9	37.0	31.2
Coiled Tubing	29.9	25.1	23.4

KPIs and Operating Metrics

KPI	Q1 2025	Q2 2025	Q3 2025
Cementing Jobs (count)	1,245	1,061	1,015
Wireline Stages (count)	7,713	8,585	8,267
Completion Tools Stages (count)	29,057	30,331	22,067
Coiled Tubing Days Worked (trend)	+36% q/q	−23% q/q	−11% q/q
DSO (days)	57.6	55.9	56.8
Capex ($M)	4.3	6.1	3.5

Balance Sheet and Liquidity (selected)

Liquidity $40.3M at 9/30/25 (cash $14.4M, availability $25.9M); ABL borrowings $63.3M at quarter-end; expected ABL borrowing base step-downs ~$2.2M/month Oct–Jan pending appraisal .
Total liabilities $436.6M; stockholders’ deficit $(95.9)M at 9/30/25 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($M)	Q3 2025	$135–$145 (original)	Actual: $132.0	Miss vs prior guide (below range)
Revenue ($M)	Q4 2025	N/A	$122–$132	New guide (down q/q)
Adj. EBITDA	Q4 2025	N/A	“Down vs Q3” (directional)	New directional guide
Capex ($M)	FY 2025	$15–$25	$15–$25; likely low end	Maintained; narrowed to low end

Additional liquidity outlook: borrowing base expected to reduce ~$2.2M on 10/31, 11/30, 12/31, 1/31 (reduces availability and liquidity) .

Earnings Call Themes & Trends

Topic	Q1 2025 (prior)	Q2 2025 (prior)	Q3 2025 (current)	Trend
Pricing pressure/Permian	Mostly stable pricing, early NE wireline repricing noted	Pricing pressure emerged across lines (Permian)	Continued significant pricing pressure across all lines; unsolicited competitive bids	Deteriorating
Rig activity	US rig flat; outlook uncertain	~53 rigs fell Mar–Jul; Permian declines	Rig count down ~7% from Q1 to Q3; Permian ~15% decline	Worse q/q
Natural gas basins	Supportive gas; flat activity	Gas supportive; NE efficiency helped	Gas supportive; drought delays in Northeast	Mixed
International tools	Positive outlook; product focus	H1 intl tools +20% YoY	Intl revenue +~19% YTD; continued growth expected	Positive
R&D/Technology	Completion tools facility plan; innovation focus	New completion tools test facility opening next year	Redesigning for casing size changes; Haynesville cementing innovation	Executing
Tariffs/costs	Tariffs to be passed to customers	Tariff cost pressures continued	Tariffs cited among market pressures	Persistent
Liquidity/ABL	New $125M ABL closed 5/1	Liquidity $65.5M (6/30)	Liquidity $40.3M; borrowing base to step down	Tightening

Management Commentary

CEO on Q3 setup: “Q3 was a challenging quarter following significant rig declines and subsequent pricing pressure beginning in Q2... Activity declines and pricing pressure negatively impacted revenue and earnings across all of our service lines” .
On Completion Tools share and response: “Market share losses... due mostly to customer consolidation and a change in certain of our domestic customers’ completion designs... Our R&D team is working real-time to design, test and commercialize new technology to address the market need” .
Technical highlight: “Completed a landmark cementing job in the Haynesville... proprietary, latex-based slurry... pumped at increased rates and reduced pumping pressures, all while maintaining full fluid returns” .
Outlook and strategy: “For Q4... anticipate typical seasonality... and continued low pricing of services... we anticipate Q4 revenue and earnings will be down compared to Q3... remain focused on growing market share... while simultaneously lowering our costs” .

Q&A Highlights

Industry pricing inflection: Asked when customers may recognize need for relief, CEO said the market is “flirting with that point,” with underinvestment and asset moves causing frac availability issues in the Northeast; upstream costs rising as operators move to tier-two acreage complicates relief .
Coiled tubing equipment step-change: Longer laterals “beg for a step change” in equipment, but sector capital under pressure may constrain investment despite technical need .
2026 visibility: Too early; many operators still evaluating 2026 capex amid oil price volatility .

Estimates Context

S&P Global consensus for Q3 2025 EPS and revenue was not available; the dataset returned actuals but no consensus values, suggesting insufficient coverage. Therefore, no Street beat/miss assessment can be made this quarter (values via S&P Global).
- Revenue actual: $132.0M (S&P dataset actual) [Values retrieved from S&P Global].
- EBITDA actual (GAAP): $7.56M (S&P dataset actual aligns with company EBITDA) [Values retrieved from S&P Global] .

Key Takeaways for Investors

Sequential slowdown will likely persist into Q4 given seasonality and pricing pressure; management’s $122–$132M Q4 revenue guide and directional EBITDA down imply near-term negative revisions risk to internal plans rather than Street (given limited coverage) .
Pricing pressure and customer re-bids outside typical cycles signal a tougher competitive environment; watch for signs of stabilization in Permian activity and bidding cadence into early 2026 .
Completion Tools domestic share loss is a watch item; near-term pain, but rapid R&D response to casing-size shifts and international momentum could limit duration of impact .
Liquidity trending tighter near term due to ABL borrowing base step-downs; December appraisal is a swing factor—investors should monitor subsequent availability updates .
Gas-levered exposure remains a relative bright spot; drought-related completion delays in the Northeast are a transient operational headwind rather than a structural one .
Technical differentiation (e.g., Haynesville cementing, new completion tools facility) remains central to defending price/mix and regaining share as activity normalizes .
Capex discipline (low end of $15–$25M) is appropriate given macro; expect continued cost actions and asset reallocation to underpin margin defense in a soft pricing backdrop .

Nine Energy Service, Inc. (NINE)·Q3 2025 Earnings Summary