Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From to Commission File No. 001-32472 DAWSON GEOPHYSICAL COMPANY (Exact name of registrant as specified in its charter) Texas 74-2095844 (State or other jurisdi ...

Exhibit 99.1 NEWS RELEASE Dawson Geophysical Company 508 W. Wall, Suite 800 Midland, TX 79701 DAWSON GEOPHYSICAL REPORTS SECOND QUARTER 2025 RESULTS MIDLAND, Texas, August 12, 2025/PR Newswire/Dawson Geophysical Company (NASDAQ: DWSN) (the "Company") today reported unaudited financial results for its second quarter ended June 30, 2025. Management Comment Tony Clark, Dawson's President and CEO, commented, "Due to the observed increase in demand for large integrated high-resolution, high channel count surveys ...

MIDLAND, Texas, Aug. 12, 2025 /PRNewswire/ -- Dawson Geophysical Company (NASDAQ: DWSN) (the "Company") today reported unaudited financial results for its second quarter ended June 30, 2025.Management CommentTony Clark, Dawson's President and CEO, commented, "Due to the observed increase in demand for large integrated high-resolution, high channel count surveys and improvement to our backlog, we made the decision to make a significant capital investment to purchase new single node channels from a wholly-own ...

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]

Financial Performance - For Q4 2024, the company reported revenues of $15.6 million, a decrease of 36% compared to $24.3 million in Q4 2023[4] - The company generated a net loss of $0.8 million or $0.03 per common share in Q4 2024, compared to a net loss of $2.1 million or $0.07 per common share in Q4 2023[5] - For the full year 2024, revenues were $74.2 million, down 23% from $96.8 million in 2023[6] - Net loss for the year ended December 31, 2024, was $4,119 million, compared to a net loss of $12,147 million in 2023, representing a 66% improvement[22] - Consolidated operating revenues for Q4 2024 were $15,637 million, a decrease of 35.6% compared to $24,258 million in Q4 2023[26] - Net loss for Q4 2024 was $802 million, compared to a net loss of $2,106 million in Q4 2023, representing a 61.9% improvement[26] Adjusted EBITDA - The company achieved adjusted EBITDA of $2 million for the year ended December 31, 2024, compared to an adjusted EBITDA loss of $2 million in 2023[8] - Adjusted EBITDA for the year ended December 31, 2024, was $1,961 million, compared to $(2,016) million in 2023, indicating a significant turnaround[23] - Adjusted EBITDA for Q4 2024 was $943 million, down from $1,677 million in Q4 2023, indicating a decline of 43.8%[26] Expenses and Cost Management - The company reduced general and administrative expenses by 25% year-over-year[2] - Operating expenses for Q4 2024 totaled $12,519 million, down from $19,845 million in Q4 2023, reflecting a reduction of 37.1%[26] - General and administrative expenses for Q4 2024 were $2,199 million, compared to $2,757 million in Q4 2023, a decrease of 20.3%[26] - Severance expenses for the year ended December 31, 2024, were $486 million, down from $2,208 million in 2023[22] Assets and Liabilities - Total current assets decreased from $37,426 million in 2023 to $14,541 million in 2024, a decline of approximately 61%[21] - Total assets decreased from $57,519 million in 2023 to $30,870 million in 2024, a reduction of about 46%[21] - Total current liabilities decreased from $22,418 million in 2023 to $9,930 million in 2024, a decline of approximately 56%[21] - Total stockholders' equity fell from $31,434 million in 2023 to $17,281 million in 2024, a decrease of about 45%[21] Cash and Working Capital - Cash at December 31, 2024, was $1.4 million, with positive working capital of $4.6 million[11] - Cash and cash equivalents dropped from $10,772 million in 2023 to $1,385 million in 2024, a decrease of about 87%[21] - Accounts receivable decreased from $12,735 million in 2023 to $9,970 million in 2024, a decline of approximately 22%[21] Future Outlook and Investments - The current backlog for the six months ending September 30, 2025, is greater than 150% of revenues for the comparable period in 2024[2] - A capital budget of $6 million for 2025 has been approved, allowing for potential investment in new single node channels[11] - The company is testing new single node channels in West Texas and Canada, with positive results expected to enhance efficiency and margins[10] Revenue and Income - Fee revenue for Q4 2024 was $13,752 million, a decrease of 26.0% from $18,558 million in Q4 2023[26] - Interest income for Q4 2024 was $18 million, down from $140 million in Q4 2023, a decline of 87.1%[26] - The company reported a loss from operations of $834 million in Q4 2024, compared to a loss of $2,217 million in Q4 2023, an improvement of 62.4%[26] - Total operating costs for Q4 2024 were $16,471 million, a decrease of 37.8% from $26,475 million in Q4 2023[26] - The company recorded an income tax benefit of $29 million in Q4 2024, compared to no tax benefit in Q4 2023[26] Gross Margin - Gross margin improved to 21% for the year ended December 31, 2024, up from 16% in 2023[6]

Revenue Performance - Acquisition revenues for Q3 2024 decreased 52% to $4.7 million compared to $9.7 million in Q3 2023, primarily due to decreased crew utilization [76]. - Total revenues for Q3 2024 were $14.4 million, down from $23.0 million in Q3 2023, including a $3.5 million decrease in reimbursable revenues [78]. - Canadian acquisition revenues for Q3 2024 remained flat at $11,000 compared to Q3 2023, while revenues for the first nine months of 2024 decreased 16% to $8.5 million from $10.1 million in the same period of 2023 [77]. - The company expects increased revenues and profitability from Canadian operations through Q1 2025 [73]. Operating Costs and Expenses - Total operating costs for Q3 2024 were $20.2 million, representing a 30% decrease from Q3 2023, with first nine months costs down 25% to $62.4 million [84]. - General and administrative expenses for the first nine months of 2024 decreased 26% to $6.6 million compared to $9.0 million in the same period of 2023 [82]. - Acquisition expenses for Q3 2024 decreased 43% to $5.7 million from $10.1 million in Q3 2023, primarily due to decreased crew production and utilization [79]. Cash Flow and Financing - Net cash provided by operating activities was $3.6 million for the nine months ended September 30, 2024, compared to $2.5 million for the same period of 2023, indicating an increase of 44% [94]. - Net cash used in investing activities decreased to $0.9 million for the nine months ended September 30, 2024, from $3.5 million in the same period of 2023, a reduction of $2.5 million [95]. - Net cash used in financing activities was $11.4 million for the nine months ended September 30, 2024, primarily due to dividends paid of $9.9 million [96]. Capital Expenditures and Investments - The Board of Directors approved an increase in the 2024 capital budget from $2.5 million to $6.0 million to invest in additional single node channels [97]. - The company is testing new single node channels and plans to invest in increasing channel count to improve revenue and margins [74]. Financial Position and Resources - As of September 30, 2024, the company had no outstanding letters of credit, with a previously issued letter of credit of $265,000 not renewed [100]. - The company has no outstanding short-term notes payable as of September 30, 2024, compared to $910,000 as of December 31, 2023 [101]. - The aggregate principal amount of finance leases as of September 30, 2024, was $2.2 million, with interest rates ranging from 4.86% to 8.74% [103]. - The company believes that its capital resources will be adequate to meet current operational needs and fund 2024 capital expenditures [104]. Market and Risk Factors - The company anticipates that fluctuations in oil and natural gas prices will continue to significantly impact demand for its services [72]. - There has been no material change in the company's market risk profile during the nine months ended September 30, 2024 [108]. Internal Controls and Legal Proceedings - There have been no changes in internal control over financial reporting during the quarter ended September 30, 2024, that materially affected or are likely to affect internal control [111]. - Refer to Note 7 for a discussion of the Company's legal proceedings, indicating ongoing commitments and contingencies [113].

Financial Performance - For Q3 2024, the company reported revenues of $14.4 million, a decrease of 37% from $23 million in Q3 2023[3] - The net loss for Q3 2024 was $5.6 million, or $0.18 per share, compared to a net loss of $5.2 million, or $0.20 per share, in Q3 2023[4] - The company generated negative EBITDA of $4.3 million in Q3 2024, compared to negative EBITDA of $3.4 million in Q3 2023[4] - For the nine months ended September 30, 2024, the company incurred a net loss of $3.3 million, or $0.11 per share, compared to a net loss of $10 million, or $0.40 per share, for the same period in 2023[5] - The company reported operating revenues of $14.4 million for Q3 2024, which included reimbursable revenue of $9.8 million[3] - Fee revenue for Q3 2024 was $4,663 million, a decrease of 52.0% compared to $9,735 million in Q3 2023[19] - Total operating revenues for the nine months ended September 30, 2024, were $39,727 million, down from $72,588 million in the same period of 2023, representing a decline of 45.4%[19] - The net loss for Q3 2024 was $5,617 million, compared to a net loss of $5,198 million in Q3 2023, indicating a worsening of 8.1%[19] - The company reported a comprehensive loss of $5,588 million for Q3 2024, compared to a comprehensive loss of $5,416 million in Q3 2023[20] Cash and Assets - As of September 30, 2024, the company had cash of $7 million and positive working capital of $4.4 million[7] - Total current assets decreased from $37,426,000 on December 31, 2023, to $13,179,000 on September 30, 2024, a decline of approximately 64.8%[15] - Cash and cash equivalents fell from $10,772,000 to $6,980,000, representing a decrease of about 35.2%[15] - Accounts receivable, net, dropped from $12,735,000 to $2,788,000, a decline of approximately 78.1%[15] - Stockholders' equity fell from $31,434,000 to $18,244,000, a decrease of about 42.0%[15] Liabilities and Expenses - Total liabilities decreased from $57,519,000 on December 31, 2023, to $30,181,000 on September 30, 2024, a reduction of about 47.5%[15] - Current liabilities decreased from $22,418,000 to $8,770,000, a reduction of about 60.9%[15] - Operating expenses for Q3 2024 totaled $20,212 million, compared to $28,653 million in Q3 2023, reflecting a decrease of 29.5%[19] - The total operating costs for the nine months ended September 30, 2024, were $51,322 million, compared to $83,630 million in the same period of 2023, a decrease of 38.7%[19] Operational Developments - The board approved an increase in the capital budget to $6 million for the potential purchase of new single node channels, expected to enhance revenue and margins[6] - The company is testing new single node channels in the field and plans to invest in increasing channel count through new equipment purchases[3] - Seasonal operations in Canada resumed in October 2024, with expectations of increased revenues and profitability through Q1 2025[2] - The company continues to evaluate its assets for potential divestiture of under-utilized assets to improve return on capital[6] Tax and Interest - The income tax benefit for Q3 2024 was $35 million, compared to an expense of $3 million in Q3 2023, showing a positive shift in tax position[20] - Interest income for Q3 2024 was $72 million, a decrease from $192 million in Q3 2023, representing a decline of 62.5%[20]

Core Viewpoint - Dawson Geophysical Company reported a significant decline in revenues and increased net losses for the third quarter of 2024 compared to the same period in 2023, while also outlining plans for operational improvements and equipment investments to enhance efficiency and profitability [3][4][6]. Financial Performance - For Q3 2024, the company reported revenues of $14.4 million, a decrease of 37% from $23 million in Q3 2023 [3]. - The net loss for Q3 2024 was $5.6 million, or $0.18 per share, compared to a net loss of $5.2 million, or $0.20 per share, in Q3 2023 [4]. - Year-to-date, for the nine months ended September 30, 2024, the net loss was $3.3 million, or $0.11 per share, an improvement from a net loss of $10 million, or $0.40 per share, for the same period in 2023 [5]. Operational Update - The company began Q3 2024 with one crew operating in the U.S. and later added two small channel crews, with plans for a second large channel crew to deploy in mid-November [2]. - Seasonal operations in Canada resumed in October, with expectations for increased revenues and profitability through Q1 2025 [2]. - The Board approved a capital budget increase to $6 million for the purchase of new single node channels, aimed at improving revenue and margins through enhanced crew efficiency [6]. Liquidity Position - As of September 30, 2024, the company had cash of $7 million and positive working capital of $4.4 million, having generated $3.6 million in cash from operations for the nine months ended September 30, 2024 [7]. Industry Context - Dawson Geophysical Company is a leading provider of onshore seismic data acquisition services in North America, serving a diverse client base including major and independent oil and gas operators [8]. - The company is also expanding its services in Carbon Capture Utilization and Storage (CCUS) seismic monitoring, which is becoming an integral part of its business strategy [8].