Summary of NCS Multistage (NCSM) Conference Call - May 21, 2025 Company Overview - NCS Multistage is a technology-focused oil field services and equipment company, primarily selling to exploration and production (E&P) companies such as Chevron, Conoco, Oxy, BP, and others [3][4] - The company competes with larger, established firms like Schlumberger, Halbern, and Core Lab [4] Core Business Strategies - NCS Multistage has three core business strategies: 1. **Build on Leading Market Positions**: Focus on fracturing systems, Canadian completions, and tracer diagnostics [8] 2. **Capitalize on Offshore and International Opportunities**: International markets are growing faster than North America, allowing for stronger customer relationships based on technical characteristics [9] 3. **Commercialize Innovative Solutions**: Understanding customer needs and delivering solutions that provide tangible value [9] Financial Performance - Revenue grew by approximately 14% or $20 million in 2024, with expectations for continued growth in 2025 despite a challenging market [10] - Gross margin is around 40%, with an improvement of approximately 250 basis points in 2024 compared to the previous year [11] - The company operates with a capital-light model, expecting to convert about 50% to 60% of adjusted EBITDA to free cash flow [11] Market Environment and Challenges - The market is expected to be flat or slightly declining in the U.S., with slight growth in Canada and opportunities outside North America [15] - Spot oil prices are about $10 per barrel lower, leading to reduced drilling and completion spending by customers [16] - Customer consolidation in Canada may lead to fewer wells being drilled, reducing market opportunities [16] Cash Management and Future Plans - As of March 31, the company had approximately $23 million in cash and $27 million available through a revolving credit facility [13] - Priorities for cash usage include investing in internal R&D for organic growth and exploring strategic acquisitions [20][21] - If no suitable M&A opportunities arise, the company may consider returning capital to shareholders [21] Conclusion - NCS Multistage presents a compelling investment opportunity with a strong organic growth track record, innovative technology, and a robust balance sheet [12] - The company is focused on navigating market uncertainties while pursuing attractive commercial opportunities [19]

Core Insights - NCS Multistage Holdings, Inc. (NCSM) reported total revenues of $50.0 million in Q1 2025, marking a 14% year-over-year increase and the highest quarterly revenue since Q1 2020 [1][5] - The growth was primarily driven by increased product sales in Canada and services revenue across all geographies, despite a decline in U.S. product sales due to project delays [1] - The company expects modest revenue growth through FY25, despite potential threats from increasing tariffs [1] Revenue Breakdown - Canadian sales saw a 26% sequential increase, while international revenue experienced a 34% decline due to timing of tracer work and a 13% drop in U.S. revenue compared to Q4 2024 [1] - International revenue was supported by tracer diagnostics work in the Middle East and product and service sales in the North Sea [1] Financial Metrics - Consolidated gross margins improved from 40.1% in Q1 2024 to 43.7% in Q1 2025 [1] - NCSM reported a liquidity position of $49.8 million, up from $34.4 million in Q1 2024 [5] - Adjusted EBITDA reached $8.2 million, reflecting a $2.1 million year-over-year improvement [5]

PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited condensed consolidated financial statements for Q1 2025 show increased revenue and net income, driven by strong Canadian and international market performance [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $155.1 million, liabilities decreased, and equity rose to $120.8 million as of March 31, 2025 Condensed Consolidated Balance Sheet Highlights (In thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $109,041 | $105,570 | | **Total Assets** | $155,118 | $152,812 | | **Total Current Liabilities** | $23,865 | $25,419 | | **Total Liabilities** | $34,282 | $36,703 | | **Total Equity** | $120,836 | $116,109 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 total revenues rose 14.0% to $50.0 million, with net income significantly increasing to $4.1 million, or $1.51 diluted EPS Statements of Operations Highlights (In thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total Revenues** | $50,005 | $43,858 | | **Income from Operations** | $4,289 | $2,501 | | **Net Income** | $4,454 | $2,553 | | **Net Income attributable to NCS** | $4,056 | $2,070 | | **Diluted EPS** | $1.51 | $0.82 | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income attributable to the company for Q1 2025 significantly increased to $4.0 million, primarily due to higher net income Comprehensive Income (In thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $4,454 | $2,553 | | Comprehensive Income | $4,443 | $2,057 | | **Comprehensive Income attributable to NCS** | **$4,045** | **$1,574** | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Total stockholders' equity increased to $120.8 million by March 31, 2025, primarily due to net income and share-based compensation - Key changes in stockholders' equity for Q1 2025 include a **$4.5 million** increase from net income and a **$0.6 million** increase from share-based compensation[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities improved slightly in Q1 2025, with overall cash and equivalents decreasing by $2.9 million to $23.0 million Summary of Cash Flows (In thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(1,645) | $(1,880) | | Net cash used in investing activities | $(451) | $(136) | | Net cash used in financing activities | $(790) | $(630) | | **Net change in cash and cash equivalents** | **$(2,883)** | **$(2,716)** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail revenue by geography, debt facilities, and ongoing patent litigation, supporting the unaudited financial statements Revenue by Geographic Area (In thousands) | Region | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | United States | $9,372 | $10,011 | | Canada | $37,718 | $31,669 | | Other Countries | $2,915 | $2,178 | | **Total Revenues** | **$50,005** | **$43,858** | - The company has a **$35.0 million** ABL Facility with an available borrowing base of **$26.8 million** as of March 31, 2025, with no outstanding indebtedness under the facility[47](index=47&type=chunk) - The company is involved in ongoing patent litigation. A Canadian court ruled against NCS, a decision which is under appeal. Separately, NCS received favorable jury verdicts against Nine Energy Services and TCO AS in the U.S., which are also under appeal[57](index=57&type=chunk)[58](index=58&type=chunk)[60](index=60&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 performance, highlighting 14.0% revenue growth, strong liquidity, and market outlook with key risks [Overview and Outlook](index=18&type=section&id=Overview%20and%20Outlook) The 2025 outlook anticipates stable Canadian activity, modest U.S. decline, and international growth, with risks from commodity prices and competition - The 2025 market outlook anticipates stable activity in Canada, a modest decline in the U.S., and increased activity in international markets like the North Sea, Middle East, and Argentina[74](index=74&type=chunk) - The company faces risks from competitive pressures, which constrain pricing, and potential cost increases from tariffs on steel and chemicals from China[77](index=77&type=chunk)[78](index=78&type=chunk) - Geopolitical conflicts in the Middle East and the Russia-Ukraine war, along with global economic concerns, contribute to oil price volatility[76](index=76&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Q1 2025 revenues increased 14.0% to $50.0 million, and net income grew 74.5% to $4.5 million, driven by Canadian and international growth Q1 2025 vs. Q1 2024 Operational Results (In thousands) | Metric | Q1 2025 | Q1 2024 | Variance ($) | Variance (%) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $50,005 | $43,858 | $6,147 | 14.0% | | **Total Gross Profit** | $21,140 | $16,955 | $4,185 | 24.7% | | **Income from Operations** | $4,289 | $2,501 | $1,788 | 71.5% | | **Net Income** | $4,454 | $2,553 | $1,901 | 74.5% | - Revenue growth was driven by a **$6.0 million (19.1%)** increase in Canada and a **$0.7 million (33.8%)** increase in other countries, while U.S. revenue declined by **$0.6 million (6.4%)**[98](index=98&type=chunk) - Gross margin as a percentage of revenue improved from **61.3%** to **57.7%** due to higher-margin international work and supply chain efficiencies[99](index=99&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, liquidity includes $23.0 million cash and $26.8 million available ABL facility, sufficient for future operations - The company's liquidity position as of March 31, 2025 includes **$23.0 million** in cash and **$26.8 million** available under its ABL Facility, with no outstanding borrowings[104](index=104&type=chunk) - Total planned capital expenditures for 2025 are estimated to be between **$1.5 million** and **$1.8 million**[107](index=107&type=chunk) Cash Flow Summary (In thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(1,645) | $(1,880) | | Net cash used in investing activities | $(451) | $(136) | | Net cash used in financing activities | $(790) | $(630) | [Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk exposure has not materially changed since the disclosures in its 2024 Annual Report - There have been no material changes in the company's market risk exposure since December 31, 2024[121](index=121&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2025[122](index=122&type=chunk) - No material changes to internal control over financial reporting occurred during the first quarter of 2025[123](index=123&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) For information regarding legal proceedings, refer to Note 10 of the unaudited condensed consolidated financial statements - For information regarding legal proceedings, refer to Note 10 of the unaudited condensed consolidated financial statements[126](index=126&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes from the risk factors previously disclosed in the 2024 Annual Report on Form 10-K - There have been no material changes to the risk factors disclosed in the 2024 Annual Report[127](index=127&type=chunk) [Other Information](index=30&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during Q1 2025 - No director or officer of the company adopted or terminated a Rule 10b5-1 trading arrangement during the first quarter of 2025[128](index=128&type=chunk) [Exhibits](index=31&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 - The exhibits filed with this report include CEO and CFO certifications pursuant to the Sarbanes-Oxley Act and Inline XBRL documents[129](index=129&type=chunk) Signatures [Signatures](index=32&type=section&id=Signatures) The report was formally signed and submitted by the Chief Financial Officer and Treasurer on May 1, 2025 - The Form 10-Q was signed on May 1, 2025, by Mike Morrison, Chief Financial Officer and Treasurer[133](index=133&type=chunk)

Financial Data and Key Metrics Changes - The first quarter revenue was $50 million, exceeding the high end of the guided range by $4 million, marking the highest quarterly revenue since Q1 2020 [4][12] - Adjusted gross margin was 44%, up from 40% year-over-year, reflecting strong operating leverage [5][12] - Adjusted EBITDA was $8.2 million, an increase from $6.1 million in Q1 2024 [12] Business Line Data and Key Metrics Changes - Canadian revenue reached $38 million, a 19% increase compared to Q1 2024, driven by the fracturing systems product line [6][12] - International revenue increased by 34%, primarily from activities in the Middle East and North Sea [12] - U.S. revenue declined by 6%, indicating challenges in that market [12] Market Data and Key Metrics Changes - The average rig count in Canada increased by 3%, but NCS's revenue growth outpaced this, indicating strong market performance [6] - International revenue accounted for 10% of total revenue in 2024, with expectations for continued growth in the North Sea and Middle East [7][8] Company Strategy and Development Direction - The company aims to build on its leading market positions, capitalize on international opportunities, and commercialize innovative solutions [6][9] - NCS is focusing on technology development and expanding its addressable market through new product introductions [10][21] - The company is evaluating M&A opportunities while maintaining a strong balance sheet for strategic investments [40][41] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the second half of 2025 due to geopolitical uncertainties and potential impacts from tariffs [17][19] - The company maintains a revenue guidance of $165 million to $175 million for 2025, reflecting a 5% year-over-year growth at the midpoint [18] - There is an expectation for free cash flow of $7 million to $11 million, which will strengthen the balance sheet [18][21] Other Important Information - Selling, general, and administrative costs increased by $2.4 million due to higher incentive bonuses and stock-based compensation [13] - The company had a cash balance of $23 million and total liquidity of approximately $50 million at the end of Q1 [14][21] Q&A Session Summary Question: Are there any capacity constraints on the horizon? - Management indicated no significant breakpoints in capacity, with sufficient supply chain capacity to support growth [26][28] Question: What is the current sales pipeline like? - The company noted ongoing scenario planning among customers, with expectations for decisions impacting market activity in the near term [30][32] Question: How do you see product sales in the U.S. playing out for the remainder of 2025? - Management highlighted deferred opportunities in frac systems and successful customer trials converting into regular activity [34][35] Question: Will the company pursue M&A opportunities given the strong balance sheet? - Management confirmed active evaluation of M&A opportunities while also considering internal investment options [40][41] Question: How is the pricing environment affected by tariffs and commodity prices? - Management acknowledged challenges in passing through costs due to low commodity prices but emphasized the differentiation of their products [54][58]

Financial Data and Key Metrics Changes - The company's Q1 2025 revenue was $50 million, exceeding the high end of the guided range by $4 million, marking the highest quarterly revenue since Q1 2020 [4][12] - Adjusted gross margin improved to 44%, up from 40% year-over-year, benefiting from operating leverage and higher margin international activity [5][12] - Adjusted EBITDA for Q1 2025 was $8.2 million, surpassing the estimated range of $4.5 million to $6.5 million, and representing a year-over-year increase of $2.1 million [5][12] Business Line Data and Key Metrics Changes - Revenue in Canada for Q1 2025 was $38 million, a 19% increase compared to Q1 2024, driven by the adoption of fracturing systems [6][12] - International revenue increased by 34%, primarily due to activity in the Middle East and North Sea, while U.S. revenue declined by 6% [12] Market Data and Key Metrics Changes - The average rig count in Canada increased by 3%, but the company's revenue growth outpaced this, indicating strong market performance [6] - The company anticipates a seasonal decline in Canadian revenue for Q2 2025 due to spring breakup, projecting total revenue in the range of $26 million to $29 million [15] Company Strategy and Development Direction - The company aims to build on its leading market positions, capitalize on international opportunities, and commercialize innovative solutions to customer challenges [6][8] - The company is focusing on expanding its presence in international markets, particularly in the North Sea and the Middle East, and plans to establish a local entity in the UK [6][29] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the second half of 2025 due to geopolitical uncertainties and potential impacts from tariffs, while maintaining a revenue guidance of $165 million to $175 million for the year [17][19] - The company expects to generate positive free cash flow in 2025, strengthening its balance sheet and providing opportunities for strategic investments [19][22] Other Important Information - The company reported a net income of $4.1 million for Q1 2025, with diluted earnings per share of $1.51, an improvement from $2.1 million and $0.82 per share in Q1 2024 [12] - The company maintains a strong liquidity position with $23 million in cash and total liquidity of approximately $50 million [22] Q&A Session Summary Question: Are there any capacity constraints to be aware of? - Management indicated no significant breakpoints in capacity, citing a robust supply chain and infrastructure to support growth [27][29] Question: What is the current sales pipeline like? - Management noted ongoing scenario planning among customers and anticipated decisions that could affect market activity, particularly in North America [30][32] Question: How does the company view M&A opportunities? - Management is open to evaluating M&A opportunities but also sees strong internal investment potential if suitable external opportunities do not arise [39][40] Question: How is the pricing environment affected by tariffs and commodity prices? - Management acknowledged challenges in passing through increased costs due to low commodity prices but emphasized the differentiation of their products [54][56]

[NCS Multistage Holdings, Inc. First Quarter 2025 Results](index=1&type=section&id=NCS%20Multistage%20Holdings%2C%20Inc.%20First%20Quarter%202025%20Results) [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) NCS reported strong Q1 2025 results, with revenue reaching **$50.0 million**, net income **$4.1 million**, and Adjusted EBITDA **$8.2 million** Q1 2025 Key Financial Metrics (YoY, in millions) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $50.0 | $43.9 | +14% | | Net Income | $4.1 | $2.1 | +95% | | Diluted EPS | $1.51 | $0.82 | +84% | | Adjusted EBITDA | $8.2 | $6.1 | +35% | | Adjusted Gross Margin | 44% | 40% | +400 bps | - The CEO noted that Q1 2025 total revenues and Adjusted EBITDA surpassed prior guidance, primarily led by strong performance in Canada[3](index=3&type=chunk) - The company's cash balance was **$23.0 million** with a total liquidity of **$49.8 million** as of March 31, 2025, an increase of **$15.4 million** from the previous year[8](index=8&type=chunk) - NCS has not experienced a significant impact from global trade tensions but acknowledges potential risks to commodity prices and activity levels for the second half of 2025 if tensions escalate[9](index=9&type=chunk) [Detailed Financial Review](index=2&type=section&id=Financial%20Review) Q1 2025 revenues increased 14% to **$50.0 million**, driven by Canadian and international sales, improving gross margin to 42% and net income to **$4.1 million** - YoY revenue growth was driven by increased Canadian product sales and higher services revenue across all geographic regions, partially offset by a decline in U.S. product sales due to project delays[12](index=12&type=chunk) - Sequentially, total revenues increased by 11% from Q4 2024, with a 26% rise in Canada offset by declines of 34% in international revenue and 13% in U.S. revenue[13](index=13&type=chunk) - Gross margin improved to **42%** (Adjusted Gross Margin to **44%**) due to higher-margin international work in the Middle East and North Sea, increased Canadian sales, and supply chain efficiencies[14](index=14&type=chunk) - SG&A expenses increased by **$2.4 million** YoY to **$16.2 million**, reflecting higher annual incentive bonus accruals, professional fees, and share-based compensation expense[15](index=15&type=chunk) [Liquidity and Capital Position](index=2&type=section&id=Liquidity%20and%20Capital%20Position) NCS maintained a strong balance sheet as of March 31, 2025, with **$23.0 million** cash, **$49.8 million** total liquidity, and **$64.4 million** net working capital Liquidity and Debt Profile (as of March 31, 2025, in millions) | Metric | Value | | :--- | :--- | | Cash | $23.0 | | Total Indebtedness | $7.6 | | ABL Facility Availability | $26.8 | | Total Liquidity | $49.8 | | Working Capital | $85.2 | - Net working capital increased to **$64.4 million** at the end of Q1 2025 from **$56.4 million** at year-end 2024, mainly due to higher accounts receivable and lower accrued expenses after paying 2024 incentive bonuses[21](index=21&type=chunk) - Cash flow from operating activities was a use of **$(1.6) million**, a **$0.2 million** improvement from Q1 2024 Free cash flow was a use of **$(2.1) million**[19](index=19&type=chunk) - Net capital expenditures were **$0.5 million** for the first quarter of 2025, compared to **$0.1 million** in the same period of 2024[22](index=22&type=chunk) [Geographic Performance](index=8&type=section&id=Geographic%20Performance) Canada led Q1 2025 performance with 19% revenue growth to **$37.7 million**, comprising 75% of total revenue, while U.S. revenue declined and international grew 34% Revenues by Geographic Area (in thousands) | Region | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | United States | $9,372 | $10,011 | -6.4% | | Canada | $37,718 | $31,669 | +19.1% | | Other Countries | $2,915 | $2,178 | +33.8% | | **Total Revenues** | **$50,005** | **$43,858** | **+14.0%** | - Canada's contribution to total revenue increased to **75.4%** in Q1 2025 from **72.2%** in Q1 2024[36](index=36&type=chunk) - The increase in international service revenues was driven by Middle East tracer diagnostics projects and North Sea fracturing systems sales and services[12](index=12&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) Q1 2025 financial statements detail 14% revenue growth to **$50.0 million**, net income of **$4.5 million**, total assets of **$155.1 million**, and total equity of **$120.8 million** [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 Statement of Operations Highlights (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenues | $50,005 | $43,858 | | Gross Profit | $21,140 | $16,955 | | Income from Operations | $4,289 | $2,501 | | Net Income | $4,454 | $2,553 | | Net Income Attributable to NCS | $4,056 | $2,070 | | Diluted EPS | $1.51 | $0.82 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $22,997 | $25,880 | | Total Current Assets | $109,041 | $105,570 | | Total Assets | $155,118 | $152,812 | | Total Current Liabilities | $23,865 | $25,419 | | Total Liabilities | $34,282 | $36,703 | | Total Equity | $120,836 | $116,109 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 Cash Flow Highlights (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(1,645) | $(1,880) | | Net cash used in investing activities | $(451) | $(136) | | Net cash used in financing activities | $(790) | $(630) | | Net change in cash | $(2,883) | $(2,716) | | Cash at end of period | $22,997 | $14,004 | [Non-GAAP Financial Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures) NCS provides non-GAAP measures including Adjusted Gross Profit, Adjusted EBITDA, Free Cash Flow, and Net Working Capital to assess core business performance [Reconciliation of Adjusted Gross Profit](index=10&type=section&id=Reconciliation%20of%20Adjusted%20Gross%20Profit) Adjusted Gross Profit Reconciliation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Gross Profit (GAAP) | $21,140 | $16,955 | | Gross Margin (GAAP) | 42% | 39% | | Add: D&A in cost of sales | $715 | $616 | | **Adjusted Gross Profit** | **$21,855** | **$17,571** | | **Adjusted Gross Margin** | **44%** | **40%** | [Reconciliation of Adjusted EBITDA](index=11&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA) Adjusted EBITDA Reconciliation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income (GAAP) | $4,454 | $2,553 | | D&A, Interest, Taxes | $1,884 | $1,827 | | EBITDA | $6,540 | $4,380 | | Adjustments (Share-based comp, etc.) | $1,674 | $1,697 | | **Adjusted EBITDA** | **$8,214** | **$6,077** | | **Adjusted EBITDA Margin** | **16%** | **14%** | [Reconciliation of Free Cash Flow](index=12&type=section&id=Reconciliation%20of%20Free%20Cash%20Flow) Free Cash Flow Reconciliation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(1,645) | $(1,880) | | Less: Purchases of property & equipment | $(464) | $(312) | | Plus: Proceeds from sales of property & equipment | $13 | $176 | | **Free Cash Flow** | **$(2,096)** | **$(2,016)** | [Reconciliation of Net Working Capital](index=9&type=section&id=Reconciliation%20of%20Net%20Working%20Capital) Net Working Capital Reconciliation (in thousands) | Line Item | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Working capital (GAAP) | $85,176 | $80,151 | | Less: Cash and cash equivalents | $(22,997) | $(25,880) | | Add: Current maturities of long term debt | $2,250 | $2,141 | | **Net working capital** | **$64,429** | **$56,412** |

First Quarter Results Total revenues of $50.0 million, a 14% year-over-year improvementGross margin improved to 42% from 39%; adjusted gross margin improved to 44% from 40% in the first quarter of 2024Net income of $4.1 million and diluted earnings per share of $1.51, an improvement compared to $2.1 million and diluted earnings per share of $0.82 one year agoAdjusted EBITDA of $8.2 million, a $2.1 million year-over-year improvement$23.0 million in cash and $7.6 million of total debt as of March 31, 2025 HOU ...

Core Viewpoint - NCS Multistage Holdings, Inc. will discuss its first quarter 2025 results in a conference call scheduled for May 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 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]

Company Overview - NCS Multistage Holdings, Inc. is a leading provider of highly engineered products and support services for optimizing oil and natural gas well construction, completions, and field development strategies [2] - 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 [2] - NCS's products and services are utilized across North America and selected international markets, including the North Sea, Middle East, Argentina, and China [2] - The company's common stock is traded on the Nasdaq Capital Market under the symbol "NCSM" [2] Upcoming Events - Ryan Hummer, the Chief Executive Officer of NCS, is scheduled to present at the Emerging Growth Conference on March 27, 2025, at 11:35 a.m. Central Time [1] - Interested parties can register for the presentation via a provided link, and a webcast will be available on the company's website for approximately 90 days following the event [1]

Core Insights - NCS Multistage Holdings, Inc. (NCSM) reported a 28% year-over-year increase in total revenues for Q4 2024, reaching $45.0 million [1][6] - The growth was primarily driven by a significant rise in international revenues, particularly from the Middle East tracer diagnostics projects, and a 19.5% increase in Canada [1] - U.S. results were mixed, with product sales increasing by 29.1% while services revenues decreased by 9.5% [1] - The company expects modest revenue growth through FY25 despite potential tariff increases [1] - Consolidated gross margins improved from 36.6% in Q4 2023 to 43.1% in Q4 2024 [1] Financial Performance - Total revenues for Q4 2024 were $45.0 million, marking a 28% year-over-year improvement [6] - The liquidity position of the company increased to $46.0 million from $37.0 million in Q3 2024 [6] - Adjusted EBITDA for the quarter was $8.2 million, reflecting a $5.7 million year-over-year improvement [6]