Core Insights - NCS Multistage Holdings, Inc. (NCSM) reported total revenues of $36.5 million in Q2 2025, reflecting a 22.8% year-over-year increase, driven by strong fracturing systems activity and frac plug sales in the U.S. and Canada [1][5] - The company experienced a 52% sequential revenue decline in Canada due to spring break-up, while international revenues decreased year-over-year but increased 67.2% sequentially, supported by higher equipment sales in the North Sea [1][5] - U.S. revenues rose 45% sequentially as previously delayed projects resumed, with adjusted gross margins at 35.7%, down from 40.3% in Q2 2024 [1][5] Financial Performance - Adjusted EBITDA improved to $2.2 million, and earnings per share (EPS) was reported at $0.34, which includes a $1.4 million tax benefit [5] - The acquisition of ResMetrics was completed in Q2 2025, expected to contribute $4-5 million in revenue and $1-1.5 million in EBITDA for FY25 [5] Future Outlook - The company anticipates modest revenue and margin growth through FY25, supported by resilience in core product lines and contributions from the recent acquisition of ResMetrics [1]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, cash flows, and accompanying notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $158.0 million, while total liabilities decreased and total equity rose as of June 30, 2025 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $110,970 | $105,570 | | **Total Assets** | **$157,977** | **$152,812** | | **Total Current Liabilities** | $23,806 | $25,419 | | **Total Liabilities** | **$33,998** | **$36,703** | | **Total Equity** | **$123,979** | **$116,109** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a net income of $0.9 million in Q2 2025, a significant turnaround driven by a 22.8% revenue increase Q2 and H1 2025 vs 2024 Statement of Operations (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $36,454 | $29,690 | $86,459 | $73,548 | | **Income (Loss) from Operations** | $(2,030) | $(4,150) | $2,259 | $(1,649) | | **Net Income (Loss) Attributable to NCS** | $924 | $(3,095) | $4,980 | $(1,025) | | **Diluted EPS** | $0.34 | $(1.21) | $1.84 | $(0.41) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities decreased to $1.9 million for H1 2025, with overall cash and equivalents decreasing by $0.5 million Six Months Ended June 30 Cash Flow Summary (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $1,876 | $4,099 | | **Net cash used in investing activities** | $(474) | $(393) | | **Net cash used in financing activities** | $(2,240) | $(1,669) | | **Net change in cash and cash equivalents** | $(508) | $1,894 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail financial aspects including Canada's market growth, ABL facility, ongoing patent litigation, a deferred tax benefit, and a subsequent acquisition - Canada is the company's largest market, with revenues growing **27.4% to $55.7 million** for the six months ended June 30, 2025, compared to the prior year period[27](index=27&type=chunk) - The company has an undrawn ABL Facility with an available borrowing base of **$17.2 million** as of June 30, 2025. Total debt of **$7.7 million** consists solely of finance leases[42](index=42&type=chunk)[45](index=45&type=chunk) - The company is involved in ongoing patent litigation. An appeal in a Canadian case against Kobold was heard in April 2025, with a decision expected by late 2025 or early 2026. Favorable U.S. verdicts against Nine Energy and TCO are also under appeal[56](index=56&type=chunk)[58](index=58&type=chunk) - A deferred income tax benefit of **$1.4 million** was recorded during the period due to the reversal of a valuation allowance against its Canadian subsidiary's deferred tax assets[66](index=66&type=chunk) - On July 31, 2025, the company acquired Reservoir Metrics, LLC for **$5.9 million** in cash and assumed debt, plus a potential earn-out[69](index=69&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 financial performance, Q2 2025 revenue growth, market outlook, key risks, and the company's sufficient liquidity position [Overview and Outlook](index=19&type=section&id=Overview%20and%20Outlook) NCS provides oil and gas well optimization products, with a 2025 outlook of stable Canadian activity, U.S. decline, and international growth, facing commodity and tariff risks - The company acquired Reservoir Metrics, LLC on July 31, 2025, to expand and complement its existing tracer diagnostics offerings[74](index=74&type=chunk) - Management's 2025 outlook anticipates: (i) stable or slightly decreased activity in Canada, (ii) continued decline in the U.S. market, and (iii) potential activity increases in international markets where NCS participates[76](index=76&type=chunk) - The company faces risks from competitive pressures, cost inflation, and trade tariffs on steel and chemicals from China, which could negatively impact costs and margins[78](index=78&type=chunk)[79](index=79&type=chunk) [Market Conditions](index=20&type=section&id=Market%20Conditions) Q2 2025 saw volatile commodity prices and declining U.S. and Canadian rig counts, reflecting seasonal market conditions Average Quarterly Commodity Prices | Quarter Ended | WTI Crude (per Bbl) | Henry Hub Natural Gas (per MMBtu) | | :--- | :--- | :--- | | 3/31/2025 | $71.78 | $4.14 | | 6/30/2025 | $64.57 | $3.19 | Average Quarterly Drilling Rig Count | Quarter Ended | U.S. Land | Canada Land | | :--- | :--- | :--- | | 6/30/2024 | 583 | 134 | | 3/31/2025 | 574 | 214 | | 6/30/2025 | 559 | 127 | [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Q2 2025 total revenues increased **22.8% to $36.5 million**, driven by product sales, resulting in net income despite a gross margin decrease due to mix shift Q2 2025 vs Q2 2024 Results (in thousands) | Metric | Q2 2025 | Q2 2024 | Change % | | :--- | :--- | :--- | :--- | | **Total Revenues** | $36,454 | $29,690 | 22.8% | | Product Sales | $27,776 | $19,022 | 46.0% | | Services | $8,678 | $10,668 | (18.7)% | | **Total Gross Profit** | $12,269 | $11,318 | 8.4% | | **Total Gross Margin** | 33.7% | 38.1% | - | | **Net Income (Loss)** | $1,698 | $(2,839) | 159.8% | - Revenue growth in Q2 was primarily driven by increased fracturing systems activity in Canada and higher frac plug sales by Repeat Precision in the United States[96](index=96&type=chunk) - SG&A expenses decreased by **8.1% to $13.6 million** in Q2 2025, mainly due to lower professional fees and payroll expenses[98](index=98&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity with **$25.4 million** cash and an undrawn ABL facility, despite a decrease in H1 2025 operating cash flow to **$1.9 million** - As of June 30, 2025, the company had **$25.4 million** in cash and cash equivalents and **$17.2 million** available under its ABL facility, with no outstanding borrowings[109](index=109&type=chunk) - Planned capital expenditures for the full year 2025 are estimated to be between **$1.4 million and $1.6 million**[112](index=112&type=chunk) - Net cash provided by operating activities for the first six months of 2025 was **$1.9 million**, a decrease from **$4.1 million** in the same period of 2024[115](index=115&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risk exposure remains largely unchanged since year-end 2024, though customer concentration risk increased due to a merger - There has been no material change in market risk exposure since year-end 2024[126](index=126&type=chunk) - A business combination of two large customers resulted in a single entity constituting **17%** of trade receivables as of June 30, 2025, increasing customer concentration risk[126](index=126&type=chunk) [Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control - Management concluded that disclosure controls and procedures were effective as of June 30, 2025[127](index=127&type=chunk) - No material changes in internal control over financial reporting were identified during the quarter ended June 30, 2025[128](index=128&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 10 of the financial statements for detailed information on ongoing legal proceedings - For information regarding legal proceedings, the report refers to "Note 10. Commitments and Contingencies" in the financial statements[130](index=130&type=chunk) [Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors disclosed in the company's 2024 Annual Report on Form 10-K have occurred - There have been no material changes to the risk factors disclosed in the company's 2024 Annual Report[131](index=131&type=chunk) [Other Information](index=34&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the second quarter of 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading plan during the quarter ended June 30, 2025[132](index=132&type=chunk) [Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL data files - The report lists filed exhibits, including CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[133](index=133&type=chunk)

Core Insights - Ncs Multistage reported a significant turnaround to profitability in Q2 2025, with GAAP revenue of $36.5 million, exceeding analyst estimates by 31.6% [1][2] - The company achieved GAAP earnings per share of $0.34, contrasting with an expected loss of $1.29, indicating strong operational performance despite cost pressures and margin contraction [1][2] Financial Performance - Revenue increased by 23.0% year-over-year, driven by strong activity in Canada and the U.S., with Canadian revenue rising to $17.97 million and U.S. revenue to $13.61 million [5][6] - Adjusted EBITDA more than doubled to $2.2 million, while free cash flow for the first half of 2025 decreased to $1.4 million from $3.7 million in the same period of 2024 [2][7] - Adjusted gross margin fell by 4.0 percentage points to 36%, attributed to a shift towards lower-margin products and increased cost pressures [6][11] Business Overview and Strategy - Ncs Multistage specializes in oil and gas well completions, focusing on pinpoint stimulation technology to enhance hydrocarbon extraction efficiency [3][4] - The company aims to expand the adoption of its pinpoint stimulation technology and introduce new products like sliding sleeves and tracer diagnostics [4][8] Market Dynamics - Canadian revenue surged by approximately 49%, while U.S. revenue grew by about 15.5%, despite a decline in the overall Canadian rig count [5] - International revenue decreased by 16.6%, primarily due to a slowdown in tracer diagnostics work in the Middle East [5] Innovation and Acquisitions - The company acquired ResMetrics for $5.9 million, which generated over $10 million in revenue and has EBITDA margins above 30%, enhancing Ncs's tracer diagnostics capabilities [10] - Ongoing innovation includes the commercialization of new products and expansion of field trials for advanced tracer diagnostics systems [9][10] Future Outlook - Management did not provide updated guidance for Q3 or full fiscal year 2025, maintaining a cautious tone due to deteriorating market conditions and potential risks affecting customer activity [12][13] - Investors are expected to monitor the adoption of new technologies and the impact of cost pressures on future performance [13]

NCS Multistage (NCSM) Q2 2025 Earnings Call August 01, 2025 08:30 AM ET Company ParticipantsMike Morrison - CFORyan Hummer - CEODave Storms - Director - Equity ResearchJoshua Jayne - Managing DirectorConference Call ParticipantsGowshihan Sriharan - Equity Research AnalystOperatorGood day and thank you for standing by. Welcome to the Second Quarter twenty twenty five NCS Multistage Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will ...

Financial Data and Key Metrics Changes - The company's second quarter revenue for 2025 was $36,500,000, representing a year-over-year improvement of 23% [18] - Adjusted EBITDA for the second quarter was $2,200,000, an improvement compared to $900,000 for the same period in 2024 [21] - Net income for the second quarter was $900,000, or diluted earnings per share of $0.34, compared to a net loss of $3,100,000 or a loss per share of $1.21 in the prior year [20] Business Line Data and Key Metrics Changes - Revenue in Canada for 2025 was $56,000,000, increasing 27% compared to the same period in 2024, driven by strong performance in fracturing systems [7] - U.S. revenues improved by 15%, reflecting an increase in fracturing system sales and higher frac plug sales at Repeat Precision [18] - International revenues decreased by 17%, primarily due to the timing of tracer diagnostic projects in the Middle East [18] Market Data and Key Metrics Changes - The Canadian rig count was approximately 10% to 15% below the previous year, impacting the company's performance [34] - The company expects continued success in the North Sea, with an increase in customers from two in 2022 to seven in 2025 [10] Company Strategy and Development Direction - The company aims to build upon its leading market positions, particularly in Canada, and capitalize on international and offshore opportunities [8][9] - The acquisition of ResMetrics is expected to enhance the company's tracer diagnostics capabilities and expand its market presence in the Middle East [15][16] - The company is focused on commercializing innovative solutions to complex customer challenges, with ongoing field trials for new products [11] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the second half of 2025 due to deteriorating market conditions, including a decline in U.S. rig counts and potential oversupply in the oil market [24] - The company maintains a strong balance sheet and liquidity position, expecting to generate positive free cash flow in 2025 [27] Other Important Information - The total purchase price for ResMetrics is up to $7,150,000, with an earn-out component of up to $1,250,000 to be paid in 2026 [21] - The company expects third quarter total revenue in the range of $42,000,000 to $46,000,000 [22] Q&A Session Summary Question: Opportunities for cross-selling post-acquisition - Management indicated that there are distinct customer bases for ResMetrics and the existing tracer diagnostics business, suggesting potential revenue synergy opportunities as they integrate offerings [30] Question: Targeting new geographies - Management expressed excitement about expanding in the North Sea and the Middle East, while also considering other offshore markets [32] Question: Factors to tighten guidance range - Management noted that the Canadian rig count is a key factor, with a need for it to recover to provide more confidence in tightening guidance [34] Question: Margin improvement opportunities - Management highlighted that operational synergies could lead to cost reductions, but refrained from specifying margin percentages [40] Question: Customer mindset in volatile market conditions - Management observed a cautiously optimistic tone among customers, with a wait-and-see approach regarding oil prices and market conditions [44]

Financial Performance & Metrics - As of July 29, 2025, the share price was $30.25, with 2.7 million diluted shares outstanding, resulting in an equity value of $82.7 million[10] - The company's enterprise value is $82.5 million, calculated with $7.7 million in total debt, $17.5 million in non-controlling interest, and $25.4 million in cash[10] - The company has a strong cash position, with net debt (cash) at $(17.7) million and net working capital of $64.0 million[10] - Q2 2025 total revenue reached $36.5 million, a 23% increase compared to Q2 2024[53] - The company's adjusted EBITDA for Q2 2025 was $2.2 million, a $1.3 million increase compared to Q2 2024[53] - The company anticipates full year 2025 revenue to be between $168 million and $176 million, representing a 6% year-over-year increase at the midpoint[57] - The company projects adjusted EBITDA for full year 2025 to be between $21 million and $24 million[57] Strategic Initiatives & Acquisitions - NCS acquired ResMetrics in July 2025 for up to $7.15 million, with $5.90 million in cash and assumed debt at close, and an earnout of up to $1.25 million[29, 42] - ResMetrics is expected to contribute $4 million to $5 million in revenue to NCS in 2025 (August through December)[42] Market Expansion & Diversification - NCS has expanded its addressable market, with revenue increasing from $98 million in 2016 to $163 million in 2024[38] - The customer base has grown from over 140 customers in 2016 to over 200 customers in 2024[38]

[NCS Multistage Holdings, Inc. Second Quarter 2025 Results](index=1&type=section&id=NCS%20MULTISTAGE%20HOLDINGS%2C%20INC.%20ANNOUNCES%20SECOND%20QUARTER%202025%20RESULTS) NCS Multistage Holdings reports strong Q2 2025 results with significant revenue and Adjusted EBITDA growth, alongside a strategic acquisition, while maintaining a cautious outlook for the second half of the year [Review and Outlook](index=1&type=section&id=Review%20and%20Outlook) In Q2 2025, NCS Multistage Holdings exceeded expectations with a 23% year-over-year revenue increase, outperforming industry activity levels, and announced a strategic acquisition | Metric | Q2 2025 (in millions) | YoY Change | | :--- | :--- | :--- | | Total Revenues | $36.5 | +23% | | Net Income | $0.9 | N/A (from loss) | | Diluted EPS | $0.34 | N/A (from loss) | | Adjusted EBITDA | $2.2 | +$1.3 | | Metric | H1 2025 vs H1 2024 | Change Amount (in millions) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | Improvement | +$12.9 | +18% | | Adjusted EBITDA | Improvement | +$3.4 | +49% | - Announced the acquisition of Reservoir Metrics, LLC ("ResMetrics"), a leader in reservoir analysis, which had unaudited revenue over **$10 million** with an EBITDA margin over **30%** for the trailing twelve months ended June 30, 2025[6](index=6&type=chunk) - The company maintains a strong balance sheet with over **$25 million** in cash, over **$17 million** in credit facility availability, and only **$8 million** in debt (capital leases) as of the end of Q2[5](index=5&type=chunk) - Management expressed caution for the second half of the year due to deteriorating market conditions, including U.S. rig count declines, a slow Canadian rig count recovery, potential oil oversupply from OPEC+, and trade uncertainties[7](index=7&type=chunk) [Financial Review](index=2&type=section&id=Financial%20Review) Total revenues for Q2 2025 grew to $36.5 million, a 23% increase year-over-year, driven by strong activity in Canada and the U.S., which offset a decline in international revenues | Period | Revenue (in millions) | Change | | :--- | :--- | :--- | | Q2 2025 vs Q2 2024 | $36.5 vs $29.7 | +23% | | Q2 2025 vs Q1 2025 | $36.5 | -27% | | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | | :--- | :--- | :--- | | Gross Profit | $12.3 | $11.3 | | Gross Margin | 34% | 38% | | Adjusted Gross Profit | $13.0 | $12.0 | | Adjusted Gross Margin | 36% | 40% | - SG&A expenses decreased by **$1.2 million** compared to Q2 2024, primarily due to lower professional fees and payroll expenses[13](index=13&type=chunk) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | | :--- | :--- | :--- | | Net Income (Loss) | $0.9 | $(3.1) | | Diluted EPS | $0.34 | $(1.21) | - A deferred income tax benefit of **$1.4 million** was recorded due to the reversal of a valuation allowance against Canadian deferred tax assets, reflecting sustained improvements in operating results[15](index=15&type=chunk) [Liquidity and Capital Expenditures](index=3&type=section&id=Liquidity%20and%20Capital%20Expenditures) As of June 30, 2025, NCS maintained a strong liquidity position with $25.4 million in cash and $17.2 million available under its undrawn credit facility | Liquidity Metric (as of June 30, 2025) | Amount (in millions) | | :--- | :--- | | Cash | $25.4 | | Total Indebtedness | $7.7 | | ABL Facility Availability | $17.2 | | Working Capital | $87.2 | - Net working capital increased to **$64.0 million** as of June 30, 2025, up from **$56.4 million** at December 31, 2024, mainly due to higher accounts receivable and inventory[20](index=20&type=chunk) - Capital expenditures, net of proceeds from sales, were **$0.5 million** for the six months ended June 30, 2025[21](index=21&type=chunk) [Strategic Acquisition of Reservoir Metrics, LLC](index=3&type=section&id=Strategic%20Acquisition%20of%20Reservoir%20Metrics%2C%20LLC) On July 31, 2025, NCS acquired 100% of Reservoir Metrics, LLC (ResMetrics), a provider of tracer diagnostics services, for $5.9 million in cash - NCS acquired ResMetrics for **$5.9 million** in cash, with a potential earn-out of up to **$1.3 million** based on international trade tariff rates[23](index=23&type=chunk) - The acquisition is a strategic move to enhance the company's tracer diagnostics service offerings[23](index=23&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents the company's condensed consolidated statements of operations, balance sheets, cash flows, and revenues by geographic area for the reported periods [Condensed Consolidated Statements of Operations](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For the second quarter of 2025, NCS reported total revenues of $36.5 million and net income of $0.9 million, a significant improvement from a net loss in the prior-year period Q2 Performance (Three Months Ended June 30) | Metric (in thousands, except EPS) | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenues | $36,454 | $29,690 | | Gross Profit (Calculated) | $12,998 | $11,971 | | (Loss) Income from Operations | $(2,030) | $(4,150) | | Net Income (Loss) Attributable to NCS | $924 | $(3,095) | | Diluted EPS | $0.34 | $(1.21) | H1 Performance (Six Months Ended June 30) | Metric (in thousands, except EPS) | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenues | $86,459 | $73,548 | | Income from Operations | $2,259 | $(1,649) | | Net Income (Loss) Attributable to NCS | $4,980 | $(1,025) | | Diluted EPS | $1.84 | $(0.41) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, the company's balance sheet showed total assets of $158.0 million, an increase from year-end 2024, with total liabilities decreasing and total equity increasing | Balance Sheet Item (in thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $25,372 | $25,880 | | Total current assets | $110,970 | $105,570 | | Total assets | $157,977 | $152,812 | | Total current liabilities | $23,806 | $25,419 | | Total liabilities | $33,998 | $36,703 | | Total equity | $123,979 | $116,109 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, net cash provided by operating activities was $1.9 million, a decrease from the prior year, with net cash used in investing and financing activities Cash Flow Summary (Six Months Ended June 30, in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,876 | $4,099 | | Net cash used in investing activities | $(474) | $(393) | | Net cash used in financing activities | $(2,240) | $(1,669) | | **Net change in cash and cash equivalents** | **$(508)** | **$1,894** | | **Cash and cash equivalents end of period** | **$25,372** | **$18,614** | [Revenues by Geographic Area](index=8&type=section&id=REVENUES%20BY%20GEOGRAPHIC%20AREA) In Q2 2025, Canada was the largest market with $18.0 million in revenue, while U.S. revenue also grew, offsetting a decline in other international countries Q2 Revenues by Geography (in thousands) | Region | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | United States | $13,612 | $11,791 | | Canada | $17,969 | $12,058 | | Other Countries | $4,873 | $5,841 | | **Total Revenues** | **$36,454** | **$29,690** | H1 Revenues by Geography (in thousands) | Region | H1 2025 | H1 2024 | | :--- | :--- | :--- | | United States | $22,984 | $21,802 | | Canada | $55,687 | $43,727 | | Other Countries | $7,788 | $8,019 | | **Total Revenues** | **$86,459** | **$73,548** | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=9&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20NON-GAAP%20FINANCIAL%20INFORMATION) This section provides reconciliations of key non-GAAP financial measures including net working capital, adjusted gross profit, EBITDA, and free cash flow [Net Working Capital](index=9&type=section&id=NET%20WORKING%20CAPITAL) The company calculates Net Working Capital by excluding cash and current debt maturities from the standard working capital definition, showing an increase to $64.0 million as of June 30, 2025 Net Working Capital Reconciliation (in thousands) | Component (in thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Working capital | $87,164 | $80,151 | | Less: Cash and cash equivalents | $(25,372) | $(25,880) | | Plus: Current maturities of long term debt | $2,200 | $2,141 | | **Net working capital** | **$63,992** | **$56,412** | [Adjusted Gross Profit and Adjusted Gross Margin](index=10&type=section&id=ADJUSTED%20GROSS%20PROFIT%20AND%20ADJUSTED%20GROSS%20MARGIN) Adjusted Gross Profit, which excludes depreciation and amortization from cost of sales, was $13.0 million in Q2 2025, though the Adjusted Gross Margin declined to 36% Adjusted Gross Profit Reconciliation (in thousands) | Metric (in thousands) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Gross Profit (GAAP) | $12,269 | $11,318 | $33,409 | $28,273 | | Gross Margin (GAAP) | 34% | 38% | 39% | 38% | | **Adjusted Gross Profit** | **$12,998** | **$11,971** | **$34,853** | **$29,542** | | **Adjusted Gross Margin** | **36%** | **40%** | **40%** | **40%** | [EBITDA and Adjusted EBITDA](index=11&type=section&id=EBITDA%2C%20ADJUSTED%20EBITDA%2C%20ADJUSTED%20EBITDA%20MARGIN%2C%20AND%20ADJUSTED%20EBITDA%20LESS%20SHARE-BASED%20COMPENSATION) For Q2 2025, Adjusted EBITDA more than doubled to $2.2 million from $0.9 million in Q2 2024, with the margin improving from 3% to 6% Adjusted EBITDA Reconciliation (in thousands) | Metric (in thousands) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $1,698 | $(2,839) | $6,152 | $(286) | | EBITDA | $2,136 | $(1,153) | $8,676 | $3,227 | | **Adjusted EBITDA** | **$2,223** | **$916** | **$10,437** | **$6,993** | | **Adjusted EBITDA Margin** | **6%** | **3%** | **12%** | **10%** | [Free Cash Flow](index=12&type=section&id=FREE%20CASH%20FLOW%20AND%20FREE%20CASH%20FLOW%20LESS%20DISTRIBUTIONS%20TO%20NON-CONTROLLING%20INTEREST) For the first six months of 2025, Free Cash Flow was $1.4 million, a decrease from the prior year, with Free Cash Flow less distributions to non-controlling interests at $0.5 million Free Cash Flow Reconciliation (Six Months Ended June 30, in thousands) | Metric (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,876 | $4,099 | | Less: Capital Expenditures | $(745) | $(686) | | Plus: Proceeds from sales of property | $271 | $293 | | **Free cash flow** | **$1,402** | **$3,706** | | Less: Distributions to non-controlling interest | $(900) | $(500) | | **Free cash flow less distributions** | **$502** | **$3,206** |

Core Viewpoint - NCS Multistage Holdings, Inc. reported strong operational and financial performance in Q2 2025, with revenues and Adjusted EBITDA exceeding expectations and demonstrating a year-over-year revenue growth of 23% [2][3]. Financial Performance - Total revenues for Q2 2025 were $36.5 million, a 23% increase from $29.7 million in Q2 2024, driven by increased fracturing systems activity and frac plug sales in North America [8][9]. - Net income for Q2 2025 was $0.9 million, or $0.34 per diluted share, compared to a net loss of $(3.1) million, or $(1.21) per share, in Q2 2024 [15][9]. - Adjusted EBITDA for Q2 2025 was $2.2 million, reflecting a $1.3 million improvement year-over-year, with an Adjusted EBITDA margin of 6% compared to 3% in the same period last year [16][9]. Operational Highlights - The company maintained a strong balance sheet with over $25 million in cash and only $8 million in debt as of June 30, 2025 [4][9]. - The acquisition of Reservoir Metrics, LLC for $5.9 million is expected to enhance NCS's tracer diagnostics service line, with ResMetrics generating over $10 million in revenue and an EBITDA margin exceeding 30% [5][22]. Market Conditions - The company remains cautiously optimistic about the second half of 2025, despite deteriorating market conditions, including declining U.S. rig counts and potential oversupply in the oil market [6][2]. Geographic Revenue Breakdown - In Q2 2025, U.S. revenues totaled $13.6 million, while Canadian revenues reached $18 million, reflecting strong product sales despite a decline in Canadian rig counts [36][37]. - International revenues decreased primarily due to reduced tracer diagnostics activity in the Middle East, although there was an increase in sales of well construction products in other regions [8][10]. Cash Flow and Capital Expenditures - Cash flow from operating activities for the first half of 2025 was a source of cash of $1.9 million, a decrease from $4.1 million in the same period of 2024 [17]. - Capital expenditures for the first half of 2025 were $0.5 million, slightly up from $0.4 million in the same period of 2024 [20]. Liquidity and Working Capital - As of June 30, 2025, NCS had a working capital of $87.2 million, an increase from $80.2 million at the end of 2024, with net working capital at $64.0 million [18][19].

NCS Multistage Holdings, Inc. is a leading provider of highly engineered products and support services that facilitate the optimization of oil and natural gas well construction, well completions and field development strategies. NCS provides products and services primarily to exploration and production companies for use in onshore and offshore wells, predominantly wells that have been drilled with horizontal laterals in both unconventional and conventional oil and natural gas formations. NCS's products and ...

Core Viewpoint - NCS Multistage Holdings, Inc. will discuss its second quarter 2025 results in a conference call scheduled for August 1, 2025, at 7:30 a.m. Central Time [1] Company Overview - NCS Multistage Holdings, Inc. is a leading provider of engineered products and support services for optimizing oil and natural gas well construction, completions, and field development strategies [3] - The company primarily serves exploration and production companies for both onshore and offshore wells, focusing on those drilled with horizontal laterals in unconventional and conventional formations [3] - NCS's products and services are utilized across various oil and natural gas basins in North America and selected international markets, including the North Sea, Middle East, Argentina, and China [3] - The company's common stock is traded on the Nasdaq Capital Market under the symbol "NCSM" [3]