Revenue Growth - Acquisition revenues for Q3 2025 increased 217.6% to $14.8 million compared to $4.7 million in Q3 2024, primarily due to increased crew utilization [94] - Canadian acquisition revenues for Q3 2025 rose to $166,000 from $11,000 in Q3 2024, with a 53.9% increase to $13.0 million for the first nine months of 2025 compared to $8.5 million in the same period of 2024 [95] - Total revenues for Q3 2025 were $22.7 million, up from $14.4 million in Q3 2024, despite a $2.0 million decrease in reimbursable revenues [96] Operating Costs and Expenses - Total operating costs for Q3 2025 were $23.9 million, an 18.6% increase from Q3 2024, while operating expenses for the first nine months of 2025 decreased 17.8% to $51.2 million [102] - General and administrative expenses decreased 19.8% to $2.1 million in Q3 2025 compared to $2.6 million in Q3 2024, reflecting cost reduction initiatives [100] Equipment and Capital Expenditures - The company entered into an equipment purchase agreement for new single point node channels for approximately $24.2 million, with $4.8 million paid upon execution and $18.2 million financed through promissory notes [90] - As of September 30, 2025, the company had taken delivery of $10.4 million of equipment and issued two promissory notes totaling approximately $7.5 million [91] - Capital expenditures for the nine months ended September 30, 2025, totaled $12.6 million, primarily for new node channels and maintenance capital requirements [113] Cash Flow and Financing Activities - For the nine months ended September 30, 2025, net cash provided by operating activities was $11.9 million, an increase from $3.6 million for the same period in 2024, primarily due to an increase in deferred revenue [110] - Net cash used in investing activities increased to $5.7 million for the nine months ended September 30, 2025, compared to $0.9 million for the same period in 2024, driven by a rise in capital expenditures to $6.1 million from $1.6 million [111] - Net cash used in financing activities was $2.5 million for the nine months ended September 30, 2025, down from $11.4 million in the same period of 2024, which included $9.9 million in dividends paid [112] Debt and Interest Expenses - Interest expenses for Q3 2025 were $71,000, up from $35,000 in Q3 2024, primarily due to additional debt from capital leases and new equipment notes [103] - The company executed Geospace Notes totaling approximately $7.5 million, with a fixed interest rate of 8.75% and monthly payments of about $239,000 [121] - The company has finance leases totaling $2.5 million as of September 30, 2025, with interest rates ranging from 4.86% to 8.74% [123] Tax and Market Risk - The effective tax rate for Q3 2025 was -0.9%, compared to 0.6% for Q3 2024, influenced by net operating loss carryovers and adjustments to deferred tax assets [104] - No material change in market risk profile during the three months ended September 30, 2025 [131] - Company is exposed to credit risk and interest rate changes due to financial instruments used in business operations [132] - No hedge arrangements or derivative financial instruments have been entered into by the company [132] - Business operations in Canada expose the company to foreign currency exchange rate risk [132] Future Outlook - The company expects to ramp up seasonal operations in Canada and has multiple small channel crew jobs contracted for Q4 2025, anticipating revenue growth quarter-over-quarter [92] - The company believes its capital resources will be adequate to meet current operational needs and fund future capital requirements, depending on future operating performance [126] - The maximum borrowing limit under the Revolving Credit Note is $5,035,032, with a 13% interest rate, payable in 36 monthly installments [117] Dividends - The company declared a special cash dividend of $0.32 per share, totaling approximately $9.9 million, paid on May 6, 2024 [115]

Financial Performance - For Q3 2025, Dawson Geophysical reported fee revenues of $14.9 million, a 220% increase from $4.7 million in Q3 2024[5] - Gross margin for Q3 2025 was 15%, compared to negative 37% in Q3 2024, attributed to increased fee revenue and operational efficiencies[5] - The company incurred a net loss of $1.2 million or $0.04 per share in Q3 2025, an improvement from a net loss of $5.6 million or $0.18 per share in Q3 2024[6] - Year-to-date, the net loss for 2025 was $2.5 million or $0.08 per share, compared to a net loss of $3.3 million or $0.11 per share in 2024[7] - EBITDA for Q3 2025 was $0.2 million, a significant improvement from negative EBITDA of $4.3 million in Q3 2024[6] - EBITDA for the nine months ended September 30, 2025, was $1,397,000, compared to $932,000 for the same period in 2024, indicating a year-over-year increase of 50%[18] - The company reported a comprehensive loss of $(1,224,000) for the three months ended September 30, 2025, compared to a comprehensive loss of $(5,588,000) in the same period of 2024[22] Cash Flow and Assets - The company generated $11.9 million in cash flows from operations year-to-date, increasing cash balance to $5.1 million as of September 30, 2025[9] - Total assets increased to $40,575,000 as of September 30, 2025, up from $30,870,000 on December 31, 2024, representing a growth of 31.5%[16] - Total current liabilities rose to $16,535,000 as of September 30, 2025, compared to $9,930,000 on December 31, 2024, an increase of 66.5%[16] - Net cash used in operating activities for the three months ended September 30, 2025, was $(4,736,000), compared to $(4,231,000) in the same period of 2024[18] - The accumulated deficit increased to $(140,129,000) as of September 30, 2025, from $(137,619,000) at the end of 2024[16] Operational Developments - Dawson Geophysical has over 180,000 channels of legacy and new equipment available, with plans for increased deployment of new single node channels[3] - The Canadian segment acquired several passive monitoring surveys in Q3 2025, with positive customer feedback on new equipment[4] - The company expects revenue to continue increasing quarter-over-quarter due to multiple small channel crew jobs contracted in Q4 2025[8] - Dawson plans to capitalize on the potential of new equipment with the first large channel crew deployment in Q4 2025[5] - Operating revenues for the three months ended September 30, 2025, totaled $22,746,000, a significant increase from $14,421,000 in the same period of 2024, reflecting a growth of 57.5%[20] - Fee revenue for the three months ended September 30, 2025, was $14,942,000, compared to $4,663,000 in the same period of 2024, marking an increase of 220%[22] Expenses - General and administrative expenses for the three months ended September 30, 2025, were $2,110,000, up from $2,630,000 in the same period of 2024[20]

Core Viewpoint - Dawson Geophysical Company reported significant growth in its third-quarter financial results, driven by the deployment of new single node channels and increased demand for its services, leading to a substantial rise in fee revenues and improved operational efficiencies [4][5][6]. Financial Performance - For the third quarter ended September 30, 2025, the company reported fee revenues of $14.9 million, a 220% increase from $4.7 million in the same quarter of 2024 [4]. - Total revenue for the quarter included reimbursable revenue of $7.8 million, compared to $9.8 million in the prior year [4]. - The gross margin improved to 15% from a negative 37% year-over-year, attributed to increased fee revenue and operational efficiencies [4]. - The net loss for the quarter was $1.2 million, or $0.04 per share, compared to a net loss of $5.6 million, or $0.18 per share, in the same quarter of 2024 [5]. Year-to-Date Results - Year-to-date, the company incurred a net loss of $2.5 million, or $0.08 per share, compared to a net loss of $3.3 million, or $0.11 per share, in 2024 [6]. - EBITDA for the nine months ended September 30, 2025, was $1.4 million, up from $0.9 million in the same period of 2024 [6]. Operations Update - The company has over 180,000 channels of legacy and new equipment available for service, with ongoing efforts in passive seismic monitoring showing positive activity [2][3]. - In the U.S., a large channel crew is scheduled to complete its current job in mid-November and will immediately start another project using the new single node channels [6]. - Seasonal operations in Canada resumed in October, with expectations for a successful winter season [6]. Capital Budget and Liquidity - Year-to-date, the company generated $11.9 million in cash flows from operations, increasing its cash balance to $5.1 million as of September 30, 2025, compared to $1.4 million at the end of 2024 [7]. - In October 2025, the company entered into a revolving credit facility with a maximum commitment of $5 million, which is expected to support its cash flow requirements and debt obligations [7]. Industry Position - Dawson Geophysical Company is recognized as a leading provider of onshore seismic data acquisition services in North America, catering to major oil and gas companies as well as independent operators [8]. - The company is actively involved in Carbon Capture Utilization and Storage (CCUS) seismic monitoring, with plans to acquire more base surveys in the future [9].

[Part I. FINANCIAL INFORMATION](index=3&type=section&id=Part%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited Q2 2025 financials show increased assets and operating cash flow, with a net loss for the period [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets reached **$45.7 million** by June 30, 2025, driven by cash and contract assets, and liabilities increased Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash and cash equivalents | $16,228 | $1,385 | +$14,843 | | Accounts receivable, net | $3,524 | $9,970 | -$6,446 | | Contract assets | $7,454 | $391 | +$7,063 | | Total current assets | $31,428 | $14,541 | +$16,887 | | Property and equipment, net | $11,330 | $12,979 | -$1,649 | | **Total assets** | **$45,684** | **$30,870** | **+$14,814** | | **Liabilities & Equity** | | | | | Deferred revenue | $17,935 | $1,570 | +$16,365 | | Total current liabilities | $26,545 | $9,930 | +$16,615 | | Total liabilities | $29,271 | $13,589 | +$15,682 | | Total stockholders' equity | $16,413 | $17,281 | -$868 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20(Loss)%20Income) Q2 2025 net loss was **$2.3 million**, an improvement, but YTD net loss was **$1.4 million** from reduced revenues Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenues | $9,851 | $12,512 | $25,929 | $44,096 | | (Loss) Income from Operations | $(2,371) | $(3,769) | $(1,337) | $2,033 | | Net (Loss) Income | $(2,349) | $(3,546) | $(1,357) | $2,300 | | Basic (Loss) Income per Share | $(0.08) | $(0.12) | $(0.04) | $0.07 | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations significantly increased to **$16.6 million** for H1 2025, primarily due to deferred revenue Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $16,627 | $7,790 | | Net cash used in investing activities | $(305) | $(1,254) | | Net cash used in financing activities | $(1,497) | $(11,053) | | **Net increase (decrease) in cash** | **$14,843** | **$(4,614)** | | Cash at beginning of period | $1,385 | $15,772 | | **Cash at end of period** | **$16,228** | **$11,158** | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, segment operations, and a **$24.2 million** equipment purchase from GTC - The company operates as a provider of North American onshore seismic data acquisition services for major and independent oil and gas companies[18](index=18&type=chunk) - Revenue is recognized as services are performed, generally based on square miles of data recorded compared to the total anticipated for the contract[31](index=31&type=chunk) - On **August 8, 2025**, the company entered into an agreement to purchase seismic equipment from GTC, Inc. for an aggregate price of approximately **$24.2 million**. The purchase is financed through a combination of cash and **three 36-month promissory notes** at an **8.75% interest rate**[73](index=73&type=chunk)[74](index=74&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses decreased Q2 and H1 2025 revenues, a **$24.2 million** equipment investment, and improved liquidity - The company made a significant capital investment by agreeing to purchase new single point node channels from GTC for approximately **$24.2 million** to meet increased demand for high-resolution surveys[79](index=79&type=chunk)[80](index=80&type=chunk) Revenue by Segment (in thousands) | Segment & Period | Fee Revenue 2025 | Fee Revenue 2024 | % Change | | :--- | :--- | :--- | :--- | | **U.S. Operations** | | | | | Q2 | $8,404 | $8,321 | +1.0% | | YTD | $11,130 | $26,608 | -58.2% | | **Canada Operations** | | | | | Q2 | $331 | $5 | N/A | | YTD | $12,864 | $8,456 | +52.1% | - Net cash from operating activities increased to **$16.6 million** for the first six months of 2025, up from **$7.8 million** in the same period of 2024, mainly due to an increase in deferred revenue[100](index=100&type=chunk) - The company's **$5 million revolving credit facility** with Dominion Bank was terminated on **May 2, 2024**, upon the release of the collateral deposit[48](index=48&type=chunk)[108](index=108&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material change in market risk profile for Q2 2025, with risks from credit, interest rates, and foreign currency - There has been no material change in the company's market risk profile during the **three months ended June 30, 2025**[118](index=118&type=chunk) - Primary market risks arise from credit risk concentration, interest rate changes, and foreign currency exchange risk related to Canadian business[119](index=119&type=chunk) [Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes - The President and Chief Executive Officer and the Chief Financial Officer concluded that as of **June 30, 2025**, the company's disclosure controls and procedures were effective in all material respects[120](index=120&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the **three and six months ended June 30, 2025**[121](index=121&type=chunk) [Part II. OTHER INFORMATION](index=31&type=section&id=Part%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) Management expects no material adverse effect from ongoing legal proceedings on the company's financial condition - The company refers to Note 7 of the financial statements for discussion of legal proceedings, stating that management believes the resolution of pending actions will not have a material adverse effect[55](index=55&type=chunk)[124](index=124&type=chunk) [Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) No material changes to significant risk factors since the Annual Report on Form 10-K for December 31, 2024 - No material changes in significant risk factors have occurred since the company's Annual Report on Form 10-K for the year ended **December 31, 2024**[125](index=125&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds reported during the period - None[126](index=126&type=chunk) [Exhibits](index=32&type=section&id=Item%206.%20Exhibits) Key exhibits include the Equipment Purchase Agreement with GTC, Inc. and related financing documents - Key exhibits filed include the Equipment Purchase Agreement with GTC, Inc. dated **August 8, 2025**, and related financing documents[130](index=130&type=chunk)

[Dawson Geophysical Q2 2025 Earnings Report](index=1&type=section&id=Dawson%20Geophysical%20Q2%202025%20Earnings%20Report) [Management Commentary and Strategic Initiatives](index=1&type=section&id=Management%20Commentary%20and%20Strategic%20Initiatives) The company made a significant capital investment in new seismic data acquisition technology to meet rising demand and enhance operational efficiency - The company made a **significant capital investment** to purchase new single-node channels from a subsidiary of Geospace Technologies[3](index=3&type=chunk) - The new channels are lightweight and autonomous, expected to **improve operational efficiency** through faster field deployment and retrieval[3](index=3&type=chunk) - This investment aims to meet the rising demand for high-resolution, high channel count surveys and **improve both top-line and bottom-line results**[3](index=3&type=chunk)[4](index=4&type=chunk) - The company's **backlog is improving**, with multiple jobs contracted for the newly purchased equipment[4](index=4&type=chunk) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) The company reported a 5% increase in Q2 fee revenues and a reduced net loss, though year-to-date net income declined significantly from the prior year Q2 Financial Performance (Three Months Ended June 30) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Fee Revenues | $8.7 million | $8.3 million | +5% | | Gross Margin | 13% | 1% | +12 p.p. | | Net Loss | ($2.3 million) | ($3.5 million) | Improved | | Loss per Share | ($0.08) | ($0.12) | Improved | | EBITDA | ($1.2 million) | ($2.3 million) | Improved | YTD Financial Performance (Six Months Ended June 30) | Metric | YTD 2025 | YTD 2024 | Change | | :--- | :--- | :--- | :--- | | Net (Loss) Income | ($1.4 million) | $2.3 million | Declined | | (Loss) Income per Share | ($0.04) | $0.07 | Declined | | EBITDA | $1.2 million | $5.2 million | -77% | - Revenues in the United States **increased over 200%** quarter over quarter due to improved crew utilization[4](index=4&type=chunk) [Operations and Capital Allocation](index=3&type=section&id=Operations%20and%20Capital%20Allocation) The company deployed a large crew with high expected utilization, committed to a $24.2 million equipment purchase, and significantly increased its cash position - One large channel crew was deployed at the beginning of April and is expected to be **highly utilized** through the end of the year[7](index=7&type=chunk) - The company entered into an Equipment Purchase Agreement with GTC, Inc to acquire single point node channels for an aggregate price of approximately **$24.2 million**[8](index=8&type=chunk)[9](index=9&type=chunk) - The equipment purchase is financed with approximately **$6.0 million in cash** and **$18.2 million through three 36-month promissory notes** at an 8.75% interest rate[9](index=9&type=chunk) Liquidity Position as of June 30, 2025 | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash Position | $16.2 million | $1.4 million | | Working Capital | $4.9 million | $4.6 million | [Detailed Financial Statements](index=5&type=section&id=Detailed%20Financial%20Statements) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 total revenues decreased due to lower reimbursable revenue, but the operating loss improved year-over-year because of lower operating expenses Q2 Statement of Operations Highlights (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Fee Revenue | $8,735 | $8,326 | | Total Operating Revenues | $9,851 | $12,512 | | Total Operating Costs | $12,222 | $16,281 | | (Loss) from Operations | ($2,371) | ($3,769) | | Net (Loss) | ($2,349) | ($3,546) | YTD Statement of Operations Highlights (in thousands) | Line Item | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | Fee Revenue | $23,994 | $35,064 | | Total Operating Revenues | $25,929 | $44,096 | | (Loss) Income from Operations | ($1,337) | $2,033 | | Net (Loss) Income | ($1,357) | $2,300 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet shows a significant increase in cash and total assets, alongside a rise in current liabilities driven by higher deferred revenue Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $16,228 | $1,385 | | Total current assets | $31,428 | $14,541 | | Property and equipment, net | $11,330 | $12,979 | | Total assets | $45,684 | $30,870 | | Total current liabilities | $26,545 | $9,930 | | Total stockholders' equity | $16,413 | $17,281 | [Segment Operations](index=8&type=section&id=Segment%20Operations) USA Operations drove Q2 revenue but incurred a loss, while Canada Operations was profitable on a year-to-date basis despite a Q2 loss Q2 2025 Operations by Segment (in thousands) | Metric | USA Operations | Canada Operations | Consolidated | | :--- | :--- | :--- | :--- | | Operating Revenues | $9,520 | $331 | $9,851 | | (Loss) from Operations | ($1,317) | ($1,054) | ($2,371) | | Net (Loss) | ($1,297) | ($1,052) | ($2,349) | | EBITDA | ($303) | ($856) | ($1,159) | YTD 2025 Operations by Segment (in thousands) | Metric | USA Operations | Canada Operations | Consolidated | | :--- | :--- | :--- | :--- | | Operating Revenues | $12,816 | $13,113 | $25,929 | | (Loss) Income from Operations | ($5,838) | $4,501 | ($1,337) | | Net (Loss) Income | ($5,843) | $4,486 | ($1,357) | | EBITDA | ($3,706) | $4,885 | $1,179 | [Non-GAAP Measures and Reconciliations](index=3&type=section&id=Non-GAAP%20Measures%20and%20Reconciliations) - The company uses **EBITDA**, a non-GAAP measure, to assess financial performance, liquidity, and operating performance over time[12](index=12&type=chunk) [Reconciliation of EBITDA to Net Income](index=7&type=section&id=Reconciliation%20of%20EBITDA%20to%20Net%20Income) Consolidated EBITDA improved year-over-year for Q2 2025 but showed a significant decrease for the six-month period EBITDA Reconciliation (in thousands) | Period | Net (Loss) Income | Depreciation & Amortization | EBITDA | | :--- | :--- | :--- | :--- | | **Q2 2025** | ($2,349) | $1,174 | ($1,159) | | **Q2 2024** | ($3,546) | $1,406 | ($2,337) | | **YTD 2025** | ($1,357) | $2,445 | $1,179 | | **YTD 2024** | $2,300 | $2,995 | $5,233 | [Reconciliation of EBITDA to Net Cash from Operating Activities](index=7&type=section&id=Reconciliation%20of%20EBITDA%20to%20Net%20Cash%20from%20Operating%20Activities) The company generated $14.9 million in net cash from operating activities in Q2 2025, which reconciles to its negative EBITDA after adjustments EBITDA to Operating Cash Flow Reconciliation - Q2 2025 (in thousands) | Line Item | Amount | | :--- | :--- | | Net cash provided by operating activities | $14,875 | | Changes in working capital and other items | ($15,737) | | Non-cash adjustments to net loss | ($297) | | **EBITDA** | **($1,159)** | [Company Information and Disclosures](index=3&type=section&id=Company%20Information%20and%20Disclosures) [About Dawson Geophysical](index=3&type=section&id=About%20Dawson%20Geophysical) The company is a leading provider of onshore seismic data acquisition services in North America, with a growing focus on CCUS monitoring - The company is a leading provider of **North American onshore seismic data acquisition services**[11](index=11&type=chunk) - Services include acquiring and processing **2-D, 3-D, and multi-component seismic data** for clients[11](index=11&type=chunk) - **Carbon Capture Utilization and Storage (CCUS)** seismic monitoring is a growing and intricate part of the business[11](index=11&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section outlines risks and uncertainties related to future performance, including energy price volatility and dependence on industry spending - Forward-looking statements relate to future events, financial performance, expected utilization, and **anticipated benefits from the new equipment purchase**[14](index=14&type=chunk) - Key risks include **dependence on energy industry spending**, volatility of oil and gas prices, contract delays, and risks associated with the new equipment[14](index=14&type=chunk)

Core Viewpoint - Dawson Geophysical Company reported a significant increase in demand for high-resolution seismic surveys, leading to a capital investment in new equipment to enhance operational efficiency and competitiveness in the market [2][3][7]. Financial Performance - For Q2 2025, the company reported fee revenues of $8.7 million, a 5% increase from $8.3 million in Q2 2024. Total revenue for the quarter was $9.9 million, down from $12.5 million in the same quarter last year [3][13]. - Gross margin improved to 13% in Q2 2025 from 1% in Q2 2024, attributed to enhanced operational efficiencies [3]. - The company incurred a net loss of $2.3 million or $0.08 per share in Q2 2025, compared to a net loss of $3.5 million or $0.12 per share in Q2 2024 [4][13]. - Year-to-date, the company reported a net loss of $1.4 million or $0.04 per share, a decline from a net income of $2.3 million or $0.07 per share in the same period of 2024 [5][13]. Operational Update - A large channel crew was deployed in April 2025, expected to maintain high utilization through the end of the year. The company is also improving its backlog with multiple jobs contracted for quick deployment of new equipment [3][5]. - The company anticipates that the new equipment will enhance both top-line and bottom-line results as it is deployed [3]. Capital Investment - On August 8, 2025, the company entered into an Equipment Purchase Agreement to acquire single point node channels for approximately $24.2 million, with deliveries scheduled from August 2025 to January 2026 [6][7]. - The payment structure includes an initial cash payment of $4.8 million, followed by additional payments upon delivery, with the remainder financed through promissory notes at an interest rate of 8.75% [7]. Liquidity Position - As of June 30, 2025, the company increased its cash position to $16.2 million and improved its working capital to $4.9 million, compared to $1.4 million and $4.6 million at the end of 2024 [8][16].

Financial Data and Key Metrics Changes - The meeting confirmed that a quorum exists with 27,698,961 shares represented, approximately 89.4% of all shares entitled to vote [7] Business Line Data and Key Metrics Changes - No specific data on business lines or key metrics was provided during the meeting Market Data and Key Metrics Changes - No specific market data or key metrics were discussed during the meeting Company Strategy and Development Direction and Industry Competition - The company ratified the selection of RSM US LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, indicating a focus on maintaining strong financial oversight [10][12] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during the meeting Other Important Information - The annual report on Form 10-K was made available to shareholders on April 2, 2025, ensuring transparency and compliance with regulatory requirements [5] Q&A Session All Questions and Answers Question: No questions were submitted during the meeting - The meeting concluded with zero questions from shareholders, indicating either satisfaction with the information provided or a lack of engagement [13]

Revenue Performance - U.S. fee revenues for Q1 2025 decreased 85% to $2.7 million compared to $18.3 million in Q1 2024, primarily due to decreased crew utilization [81]. - Canadian fee revenues for Q1 2025 increased 48% to $12.5 million compared to $8.5 million in Q1 2024, driven by increased crew utilization and the use of single node channels [82]. - Total revenues for Q1 2025 were $16.1 million, down from $31.6 million in Q1 2024, including a $4.0 million decrease in reimbursable revenues [82]. - The company expects revenue to increase in the U.S. in Q2 2025 due to a strong backlog [76]. Operating Costs and Financial Performance - Total operating costs for Q1 2025 were $15.0 million, representing a 63% decrease from the same period in 2024 [88]. - Adjusted EBITDA for Q1 2025 was $2.3 million, compared to $7.6 million in Q1 2024 [94]. - Net cash provided by operating activities was $1.8 million for Q1 2025, compared to $1.9 million for the same period in 2024 [96]. Capital Expenditures and Investments - Capital expenditures for 2025 are budgeted at $6.0 million, with funding primarily from cash flow from operations and cash reserves [99]. - The company plans to invest in new single node channels to improve revenue and margins through enhanced crew efficiency [78]. Dividends and Shareholder Returns - A special cash dividend of $0.32 per share was declared on March 28, 2024, totaling approximately $9.9 million [100]. Debt and Financial Obligations - As of March 31, 2025, the company has outstanding short-term notes payable totaling $1.5 million, an increase from $168,000 as of December 31, 2024 [103]. - The company has finance leases of $2.2 million as of March 31, 2025, down from $2.4 million as of December 31, 2024 [104]. - The interest rates on outstanding notes payable to finance companies range from 6.35% to 9.74% [105]. - The aggregate maturities of finance leases for the period April 2025 to March 2026 amount to $836,000 [105]. - The Loan Agreement with Dominion Bank provided a secured revolving credit facility of up to $5 million, which was terminated on May 2, 2024 [101]. - As of March 31, 2025, the company has no outstanding letters of credit [102]. Risk Management - The company believes its capital resources will be adequate to meet current operational needs and finance 2025 capital expenditures through cash flow from operations [106]. - There has been no material change in the company's market risk profile during the three months ended March 31, 2025 [110]. - The company is exposed to foreign currency exchange rate risk due to operations in Canada [111]. - The company has not entered into any hedge arrangements or derivative financial instruments [111].

Financial Performance - For Q1 2025, the company reported revenues of $16.1 million, a decrease of 49% compared to $31.6 million in Q1 2024[4] - The gross margin for Q1 2025 was 28%, down from 36% in Q1 2024[4] - The company generated net income of $1 million, or $0.03 per share, compared to $5.8 million, or $0.19 per share, in Q1 2024[5] - Adjusted EBITDA for Q1 2025 was $2.3 million, a decline from $7.6 million in Q1 2024[5] - Consolidated operating revenues for Q1 2025 were $16,078, a decrease of 48.9% compared to $31,584 in Q1 2024[20] - Net loss for Q1 2025 was $992, compared to a net income of $5,846 in Q1 2024, indicating a significant decline in profitability[20] - Adjusted EBITDA for Q1 2025 was $2,338, down from $7,570 in Q1 2024, reflecting a decrease of 69.1% year-over-year[21] - Operating costs for Q1 2025 totaled $15,044, a decrease of 41.5% from $25,782 in Q1 2024[20] - Fee revenue in the USA for Q1 2025 was $2,726, a sharp decline from $18,287 in Q1 2024, representing a decrease of 85.1%[20] - The company reported a loss from operations of $1,034 in Q1 2025, contrasting with an income from operations of $5,802 in Q1 2024[20] Cash and Assets - The company’s cash position increased to $2.7 million as of March 31, 2025, up from $1.4 million at December 31, 2024[9] - The total assets of the company increased to $33.3 million as of March 31, 2025, compared to $30.9 million at December 31, 2024[18] - Net cash provided by operating activities for Q1 2025 was $1,752, a decrease from $1,870 in Q1 2024[22] - Changes in working capital and other items for Q1 2025 resulted in a net impact of $1,057, compared to $5,971 in Q1 2024[22] Operational Highlights - Canadian operations reported a 48% increase in fee revenue compared to Q1 2024, generating net income of $5.5 million[7] - Canada operations generated fee revenue of $12,533 in Q1 2025, compared to $8,451 in Q1 2024, showing an increase of 48.8%[20] - The company expects revenue to increase in the U.S. in Q2 2025 due to a strong backlog[6] Future Plans - The capital budget approved for 2025 is $6 million, allowing for potential investments in new single node channels[9] - The company plans to reinvest profits into new single node channels to improve efficiency and margins[3] Financing Costs - Interest expense for Q1 2025 was $76, compared to $46 in Q1 2024, indicating an increase in financing costs[21]

Company Operations - Dawson Geophysical Company operates 130 vibrator energy source units and approximately 326,000 recording channels as of December 31, 2024[25]. - The company has invested in cableless recording systems, which have led to increased crew efficiencies and higher channel counts on projects[23]. - The majority of projects are conducted under turnkey agreements, which provide more profit potential but involve higher operational risks[35]. - The company utilizes advanced 3-D seismic survey techniques to produce high-resolution images of subsurface conditions, enhancing operational efficiencies for clients[19]. - The company has provided seismic acquisition services for carbon capture and sequestration projects, expanding its service offerings beyond traditional oil and gas[13]. - The company operated two crews in the U.S. and resumed seasonal operations in Canada, maintaining high crew utilization in the fourth quarter[118]. - The company began testing new single node channels in Q4 2024, which improved efficiency and margins, with ongoing evaluations based on field operations[119]. - The majority of revenues were derived from turnkey contracts, which are expected to remain prevalent in operations across the Midwest, Western, and Southwestern U.S.[121]. - The company has a strong backlog of projects extending through the end of Q2 2025, indicating positive future demand for services[118]. Financial Performance - The company incurred net losses of $4.1 million for the year ended December 31, 2024, and $12.1 million for the year ended December 31, 2023[53]. - Total revenues for the year ended December 31, 2024, were $74.2 million, a decrease from $96.8 million in 2023, including a $14.7 million drop in reimbursable revenues[129]. - U.S. acquisition revenues for the year ended December 31, 2024, were $40.7 million, down from $49.0 million in 2023, primarily due to decreased demand for services[127]. - Canadian acquisition revenues increased slightly to $12.7 million in 2024 from $12.4 million in 2023, attributed to higher demand and utilization of single node channels[128]. - General and administrative expenses decreased by 25% to $9.5 million for the year ended December 31, 2024, compared to $12.6 million for the same period in 2023[133]. - Total operating costs for the year ended December 31, 2024, were $78.7 million, representing a 28% decrease from the corresponding period in 2023[136]. - Net cash used in operating activities was $1.9 million for the year ended December 31, 2024, compared to net cash provided of $814,000 for the same period in 2023[145]. - Net cash used in investing activities was $0.7 million for the year ended December 31, 2024, which includes cash capital expenditures of $1.9 million[146]. - Net cash used in financing activities was $11.6 million for the year ended December 31, 2024, including dividend payments of approximately $9.9 million[147]. - As of December 31, 2024, the company had $1.4 million in cash and a positive working capital balance of $4.6 million[149]. - Adjusted EBITDA for the year ended December 31, 2024, was $1.961 million, compared to an Adjusted EBITDA of $(2.016) million for the same period in 2023[140]. Client Concentration and Risks - The company generated approximately 43% of its revenues from two clients during the twelve months ended December 31, 2024[28]. - Approximately 43% of the company's revenues for the twelve months ended December 31, 2024, were derived from its two largest clients[47]. - The company has a concentration of clients, which increases exposure to credit risks; a default by a significant client could materially affect operating results[52]. - The company is significantly affected by the volatility of oil and natural gas prices, which influence client expenditures on exploration and production activities[43]. - The company’s business is significantly influenced by fluctuations in oil and natural gas prices, impacting exploration and development activities[117]. - The company is monitoring geopolitical events, such as the military conflict between Russia and Ukraine, which may impact oil and gas prices and demand for its services[40]. Operational Challenges - The company faces high fixed costs, primarily due to depreciation and maintenance expenses, which could lead to continuing or increasing operating losses during periods of low demand[55]. - The company operates in a highly competitive market, which may lead to downward pricing pressure and loss of market share[61]. - The company is subject to delays related to obtaining land access rights, which could adversely affect its operations[64]. - The company relies on a limited number of key suppliers for seismic services and equipment, which could affect productivity if supply is disrupted[67]. - Legislative measures addressing greenhouse gas emissions could negatively impact the exploration and production of oil and gas, affecting demand for the company's services[85]. - The company faces risks related to cybersecurity threats that could disrupt operations and lead to loss of sensitive information[81]. - The company is subject to significant government regulation, which may adversely affect operations and lead to increased compliance costs[82]. - The company may be held liable for the actions of subcontractors, which could result in additional risks and liabilities[78]. Capital Expenditures and Investments - The Board of Directors approved a capital expenditure budget of $6 million for 2025, reflecting a strategic increase from the initial $2.5 million budget for 2024[26]. - The company operates in a capital-intensive industry, requiring significant investment to maintain and expand seismic data acquisition capabilities[65]. - Working capital requirements remain high due to infrastructure expansion in response to client demand for improved data quality[65]. Stock and Market Activity - The company's common stock experienced price volatility, with high and low sales prices for the twelve months ended December 31, 2024, at $2.22 and $1.27, respectively[72]. - As of December 31, 2024, Wilks and its affiliates owned approximately 80% of the company's common stock, limiting public market activity and increasing price volatility[73]. - The company is subject to foreign currency exchange rate risk, which could impact results of operations and cash flows[71]. Financial Management and Compliance - The company adopted ASU 2023-07 for the fiscal year ended December 31, 2024, which aims to improve disclosures about reportable segments and their expenses[174]. - The company does not expect the adoption of ASU 2023-09 to have a material impact on its financial statements and disclosures, effective January 1, 2025[175]. - The company has not experienced any changes in its internal control over financial reporting that materially affected its effectiveness as of December 31, 2024[187]. - The company evaluates lease agreements to determine their classification as operating or finance leases, with most operating leases being non-cancelable[169]. - The company recognizes revenue based on the performance of services under cancelable service contracts, with revenue recognized as services are performed[163]. - The company has not entered into any hedge arrangements or derivative financial instruments, exposing it to market risks from fluctuations in commodity prices and interest rates[177]. - The Company filed several amendments to the Agreement and Plan of Merger with Wilks Brothers, LLC and WB Acquisitions Inc. between October 2021 and January 2022, indicating ongoing strategic consolidation efforts[203]. - An Asset Purchase Agreement was executed on March 24, 2023, involving the acquisition of Breckenridge Geophysical, LLC, reflecting the Company's market expansion strategy[203]. - The Company has made multiple loan modification agreements with Dominion Bank from September 2019 to March 2023, indicating ongoing financial management and restructuring efforts[206][207]. - The Company has implemented several employment agreements and separation agreements in December 2023, suggesting a focus on talent management and organizational restructuring[207]. - The Company has incorporated various certifications as per the Sarbanes-Oxley Act of 2002, ensuring compliance and governance standards are maintained[207].