Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $147.3 million, within the guidance range of $138 million to $148 million, despite significant rig declines [6] - Adjusted EBITDA for the quarter was $14.1 million, reflecting the impact of declining oil prices and increased costs due to tariffs [6][18] - Cash and cash equivalents as of June 30, 2025, were $14.2 million, with total liquidity of $65.5 million [11] Business Line Data and Key Metrics Changes - Completion tool revenue grew by approximately 9%, driven by increased sales in the Northeast and Haynesville, as well as international tool sales [9] - Wireline revenue increased by approximately 11%, benefiting from strong market share in the Northeast [10] - Cementing revenue decreased by approximately 9%, with a 15% decline in completed jobs [12] - Coiled tubing revenue decreased by approximately 16%, with a 23% decline in days worked [13] Market Data and Key Metrics Changes - U.S. rig count declined by almost 10% from March 28 to July 3, with significant declines in oil-levered basins like the Permian [7] - Natural gas prices declined from an average of approximately $4.14 in Q1 to approximately $3.19 in Q2, but remained supportive for operations in the Northeast [8] Company Strategy and Development Direction - The company is focused on increasing market share with current and potential customers, R&D, and technological advances across service lines [16] - There is a strategic emphasis on growing the international tools business, with a 20% revenue increase in the first half of 2025 compared to 2024 [17] - The company plans to construct a new completion tool facility to enhance testing capabilities and support international customers [35] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued pricing pressure and activity declines in the Permian, impacting all service lines [16] - The outlook for Q3 projects revenue between $135 million and $145 million, with expectations of lower revenue and adjusted EBITDA compared to Q2 [18] - Management remains optimistic about the medium and long-term outlook for natural gas, particularly in the Northeast and Haynesville [8][42] Other Important Information - The company has taken significant sustainable costs out of the business over the last twelve months, including improvements in fleet management and reductions in corporate and field employees [17] - CapEx spend during Q2 was $6.1 million, with a full-year CapEx budget unchanged at $15 million to $25 million [15] Q&A Session Summary Question: Expectations on private operators reducing work - Management indicated that private operators typically react more quickly to commodity price changes than public operators, leading to potential reductions in activity [21] Question: Visibility into Q4 activity - Management stated there is no visibility into Q4 changes, but some customers indicated increased activity in Q1 [22][24] Question: International sales performance - Management reported a 20% increase in international sales in the first half of 2025 compared to the same period in 2024, with traction in Argentina and the Middle East [26][27] Question: Completion tools facility details - The new facility will be over 30,000 square feet, located next to the assembly and manufacturing site in Jacksboro, and is expected to open next year [35][38] Question: Procurement dynamics with private operators - Smaller private operators tend to be more operationally driven and decisive, which can be beneficial for the company [40][42] Question: Incremental market share in remedial wireline business - The company has focused on diversifying its top line from pump down work, leading to increased market share in the remedial wireline business [43]

Company Overview - Nine's business is largely driven by technology-based services, with approximately 60% of revenue coming from completion tools and cementing[9] - The company's strategy focuses on growing completion tool revenue in both domestic and international markets[9] - In Q2 2025, completion tool revenue increased by approximately 9% quarter-over-quarter, driven by increased sales in the Northeast and Haynesville regions, as well as an increase in international tool sales[75] - Total H1 2025 international tools revenue increased by approximately 20% compared to H1 2024[70] Financial Performance - The company's asset-light model reduces capital expenditure needs, with the average 3-year capex from 2017-2019 being approximately $53 million, compared to approximately $21 million for the 4-year average from 2021-2024, a reduction of approximately 60%[20] - Q2 2025 revenue was at the upper end of management's original guidance[70] - The company reported net cash provided by operating activities of $10.1 million for Q2 2025[77] - As of June 30, 2025, the company had cash of $14.2 million, total debt of $349.4 million, and net debt of $335.2 million[76] Market Position and Technology - The company has a significant share in the US dissolvable plug market, with approximately 75% of the market concentrated among four competitors, including Nine[46] - The company's dissolvable pumpdown rings have been shown to reduce horsepower requirements by approximately 48%, water usage by approximately 28%, and diesel fuel usage by approximately 42%[61]

分组1 - Nine Energy Service reported a quarterly loss of $0.25 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.22, and an improvement from a loss of $0.4 per share a year ago, indicating an earnings surprise of -13.64% [1] - The company posted revenues of $147.25 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.54% and showing an increase from year-ago revenues of $132.4 million [2] - Nine Energy shares have declined approximately 35% since the beginning of the year, contrasting with the S&P 500's gain of 7.6% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is -$0.25 on revenues of $137.9 million, and for the current fiscal year, it is -$0.94 on revenues of $563.2 million [7] - The Zacks Industry Rank for Oil and Gas - Field Services is currently in the bottom 8% of over 250 Zacks industries, indicating a challenging environment for the sector [8]

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for the period ended June 30, 2025, show an increase in total revenues and a reduction in net loss compared to the same period in 2024, despite a decrease in cash and an increased stockholders' deficit [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets slightly increased to **$361.2 million**, while total liabilities rose to **$442.9 million**, leading to a larger **total stockholders' deficit** of **$(81.7) million** and a significant decrease in cash to **$14.2 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $14,216 | $27,880 | | Total current assets | $175,731 | $170,464 | | Total assets | $361,165 | $360,076 | | **Liabilities & Equity** | | | | Total current liabilities | $93,930 | $81,545 | | Long-term debt | $323,454 | $317,264 | | Total liabilities | $442,902 | $426,140 | | Total stockholders' equity (deficit) | $(81,737) | $(66,064) | [Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)%20and%20Comprehensive%20Income%20(Loss)) For Q2 2025, revenues increased to **$147.3 million** and **net loss** narrowed to **$(10.4) million**, with similar improvements for the six-month period Income Statement Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $147,251 | $132,401 | $297,717 | $274,521 | | Income (loss) from operations | $3,378 | $(1,436) | $9,007 | $2,983 | | Net loss | $(10,391) | $(14,041) | $(17,452) | $(22,096) | | Basic & Diluted Loss per share | $(0.25) | $(0.40) | $(0.43) | $(0.64) | [Condensed Consolidated Statements of Stockholders' Equity (Deficit)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity%20(Deficit)) The **total stockholders' deficit** increased from **$(66.1) million** at year-end 2024 to **$(81.7) million** by June 30, 2025, primarily due to a **net loss** of **$17.5 million** - For the six months ended June 30, 2025, the **total stockholders' deficit** increased by **$15.7 million**, mainly due to a **net loss** of **$17.5 million**[20](index=20&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities was **$4.8 million**, but net cash used in investing and financing activities led to a net decrease in cash of **$10.1 million** Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $4,811 | $4,057 | | Net cash used in investing activities | $(9,746) | $(8,093) | | Net cash used in financing activities | $(5,471) | $(719) | | **Net decrease in cash and cash equivalents** | **$(10,125)** | **$(4,813)** | [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, revenue disaggregation showing growth in Cementing and Wireline services, the new **$125.0 million** 2025 ABL Credit Facility, and contingent liabilities including a patent infringement lawsuit Disaggregated Revenues for Six Months Ended June 30 (in thousands) | Service Line | 2025 | 2024 | | :--- | :--- | :--- | | Cement | $109,349 | $94,077 | | Coiled tubing | $54,928 | $56,949 | | Wireline | $62,561 | $55,838 | | Tools (Product) | $70,879 | $67,657 | | **Total revenues** | **$297,717** | **$274,521** | - On May 1, 2025, the Company entered into a new **$125.0 million** asset-based revolving credit facility (2025 ABL Credit Facility), which matures in May 2028 and was used to repay all borrowings under the previous 2018 ABL Credit Facility[55](index=55&type=chunk)[57](index=57&type=chunk) - The company is a defendant in a patent infringement lawsuit regarding its Breakthru Casing Flotation Device and has posted a **$2.2 million** letter of credit, with management believing they will prevail on appeal and thus no accrual has been made[67](index=67&type=chunk)[68](index=68&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses an **11%** revenue increase in Q2 2025 driven by cementing and wireline services, a cautious outlook due to declining oil prices, enhanced liquidity of **$65.5 million** from a new ABL credit facility, and a **45%** increase in **Adjusted EBITDA** for Q2 2025 [Industry Trends and Outlook](index=23&type=section&id=Industry%20Trends%20and%20Outlook) The company's business is heavily influenced by volatile commodity prices, with declining WTI oil prices in Q2 2025 leading to decreased customer activity and anticipated lower revenue and earnings in Q3 2025 - Declining WTI oil prices in Q2 2025, which fell below **$60** per barrel for the first time in four years, led to an **8%** decrease in **U.S. rig count** from Q1 2025, negatively impacting the company's activity and pricing[87](index=87&type=chunk)[89](index=89&type=chunk) - The company anticipates that revenue and earnings in the third quarter of 2025 will be down compared to the second quarter of 2025, reflecting a full quarter's impact of activity and pricing declines[90](index=90&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) For Q2 2025, revenues rose **11%** to **$147.3 million** and Adjusted Gross Profit increased **27%** to **$25.8 million**, driven by increased activity in cementing, wireline, and tools, despite pricing pressure in coiled tubing Q2 2025 vs Q2 2024 Performance (in thousands) | Metric | Q2 2025 | Q2 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenues | $147,251 | $132,401 | $14,850 | 11% | | Adjusted gross profit | $25,812 | $20,353 | $5,459 | 27% | | Income (loss) from operations | $3,378 | $(1,436) | $4,814 | 335% | | Net loss | $(10,391) | $(14,041) | $3,650 | (26)% | H1 2025 vs H1 2024 Performance (in thousands) | Metric | H1 2025 | H1 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenues | $297,717 | $274,521 | $23,196 | 8% | | Adjusted gross profit | $53,808 | $46,467 | $7,341 | 16% | | Income from operations | $9,007 | $2,983 | $6,024 | 202% | | Net loss | $(17,452) | $(22,096) | $4,644 | (21)% | [Non-GAAP Financial Measures](index=27&type=section&id=Non-GAAP%20Financial%20Measures) The company's **Adjusted EBITDA** increased **45%** to **$14.1 million** in Q2 2025 and **24%** to **$30.7 million** for H1 2025, with **Adjusted ROIC** significantly improving to **6.7%** in Q2 2025 Adjusted EBITDA Reconciliation (in thousands) | Period | Net loss | Adjusted EBITDA | | :--- | :--- | :--- | | **Q2 2025** | $(10,391) | $14,123 | | **Q2 2024** | $(14,041) | $9,735 | | **H1 2025** | $(17,452) | $30,660 | | **H1 2024** | $(22,096) | $24,769 | Adjusted ROIC Calculation | Period | ROIC | Adjusted ROIC | | :--- | :--- | :--- | | **Q2 2025** | (16.2)% | 6.7% | | **Q2 2024** | (19.5)% | (1.5)% | | **H1 2025** | (13.7)% | 7.8% | | **H1 2024** | (15.5)% | 2.4% | [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company's **total liquidity** was **$65.5 million**, supported by **$14.2 million** in cash and **$51.3 million** available under its new **$125.0 million** 2025 ABL Credit Facility, with a 2025 **capital expenditure budget** of **$15 million** to **$25 million** - **Total liquidity** was **$65.5 million** at June 30, 2025, comprising **$14.2 million** in cash and **$51.3 million** of availability under the 2025 ABL Credit Facility[125](index=125&type=chunk) - On May 1, 2025, the company entered into a new 2025 ABL Credit Agreement for **$125.0 million**, maturing in 2028, and used the initial borrowing of **$48.9 million** to repay the previous 2018 ABL facility[136](index=136&type=chunk)[137](index=137&type=chunk) - The planned **capital expenditure budget** for 2025 is between **$15 million** and **$25 million**, excluding potential acquisitions[123](index=123&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is not required to provide this information as it qualifies as a "smaller reporting company" under the Securities Exchange Act of 1934 - As a "smaller reporting company," the company is exempt from providing quantitative and qualitative disclosures about market risk[146](index=146&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[148](index=148&type=chunk) - No changes occurred during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[149](index=149&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various claims and lawsuits, but management believes the ultimate liability will not have a material adverse effect on its business, operating results, or financial condition - The company states that any ultimate liability from pending legal proceedings is not expected to have a material adverse effect on its financial condition[152](index=152&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) A significant new risk factor involves the company's non-compliance with **NYSE** continued listing standards, including minimum market capitalization and stock price requirements, which could lead to **delisting** and negatively impact **common stock** liquidity and price - The company is out of compliance with the **NYSE's** minimum market capitalization standard as of October 2024 and has submitted a plan to regain compliance within an 18-month cure period[154](index=154&type=chunk) - The company received a notice in April 2025 for its average stock price being below **$1.00** for 30 consecutive trading days and has a six-month period to regain compliance[155](index=155&type=chunk) - Failure to regain compliance with **NYSE** standards could lead to the **delisting** of the company's **common stock**, which would likely reduce its liquidity and market price[156](index=156&type=chunk)[157](index=157&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the reporting period - None[158](index=158&type=chunk) [Item 3. Defaults Upon Senior Securities](index=35&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reporting period - None[159](index=159&type=chunk) [Item 4. Mine Safety Disclosures](index=36&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[160](index=160&type=chunk) [Item 5. Other Information](index=36&type=section&id=Item%205.%20Other%20Information) There is no other information to report for this item - None[161](index=161&type=chunk) [Item 6. Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the report, including certifications by the CEO and CFO, and the Loan and Security Agreement for the new credit facility

[Nine Energy Service Second Quarter 2025 Results](index=1&type=section&id=Nine%20Energy%20Service%20Announces%20Second%20Quarter%202025%20Results) [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Nine Energy Service reported Q2 2025 revenue at the upper end of guidance, driven by strong sequential growth in key segments despite market challenges Q2 2025 Key Financial Metrics | Metric | Value | | :--- | :--- | | Revenue | $147.3 million | | Net Loss | $(10.4) million | | Diluted EPS | $(0.25) | | Adjusted EBITDA | $14.1 million | | Total Liquidity (as of June 30, 2025) | $65.5 million | - Despite significant US rig declines, Q2 revenue met the upper end of the company's original guidance of **$138.0 to $148.0 million**[2](index=2&type=chunk)[3](index=3&type=chunk) - The company saw strong sequential growth in key segments: Completion Tool revenue increased by **~9%** and Wireline revenue grew by **~11%** quarter-over-quarter[4](index=4&type=chunk)[5](index=5&type=chunk) - International revenue for the first half of 2025 increased by approximately **20%** compared to the first half of 2024[5](index=5&type=chunk) [Management Commentary and Market Overview](index=1&type=section&id=Management%20Commentary%20and%20Market%20Overview) CEO Ann Fox highlighted strong operational performance and robust growth in key businesses despite challenging market conditions - The US market faced headwinds in Q2 as declining WTI prices and global uncertainty led to a drop of over **50 rigs**, primarily in oil-levered basins, resulting in pricing pressure across service lines[4](index=4&type=chunk) - A more positive sentiment and efficient operations in natural gas-levered basins, particularly the Northeast, benefited Nine's performance[4](index=4&type=chunk) - The Completion Tool business revenue grew **~9%** QoQ, driven by international sales and strength in gas basins, while the Wireline business revenue increased **~11%** QoQ due to efficiency gains and market share growth[4](index=4&type=chunk) [Business Outlook & Strategy](index=2&type=section&id=Business%20Outlook%20%26%20Strategy) The company implements strategies for market share and international growth, anticipating Q3 revenue and earnings decline due to Q2 activity and pricing impacts - Strategic initiatives include gaining market share, growing the international tools business, advancing R&D, and constructing a new completion tool facility, while simultaneously reducing costs[6](index=6&type=chunk) - The company anticipates Q3 revenue and earnings will be lower than Q2 due to the full-quarter impact of activity and pricing declines that occurred throughout the second quarter[6](index=6&type=chunk) - Nine's diversification in services, technology, and commodity exposure is expected to help navigate market uncertainty and capitalize on growth opportunities[6](index=6&type=chunk) [Detailed Financial Performance](index=2&type=section&id=Detailed%20Financial%20Performance) Nine Energy Service generated **$147.3 million** in Q2 2025 revenues, achieving a **6.7%** adjusted ROIC Q2 2025 Operating Results | Metric | Value | | :--- | :--- | | Revenues | $147.3 million | | Gross Profit | $17.3 million | | Adjusted Gross Profit | $25.8 million | | ROIC | -16.2% | | Adjusted ROIC | 6.7% | - General and administrative (G&A) expense was **$13.9 million**, and Depreciation and amortization (D&A) expense was **$8.6 million** for the second quarter of 2025[7](index=7&type=chunk) - The company recorded a tax benefit of approximately **$0.3 million** year-to-date, resulting from a **$0.5 million** discrete tax benefit in Q2[8](index=8&type=chunk) [Liquidity and Capital Expenditures](index=2&type=section&id=Liquidity%20and%20Capital%20Expenditures) The company reported **$10.1 million** net cash from operations and **$65.5 million** total liquidity, maintaining full-year capex guidance - Net cash provided by operating activities was **$10.1 million** in Q2 2025[9](index=9&type=chunk) Capital Expenditures | Period | Amount | | :--- | :--- | | Q2 2025 | $6.1 million | | H1 2025 | $10.4 million | | Full-Year 2025 Guidance | $15 - $25 million | - As of June 30, 2025, total liquidity was **$65.5 million**, comprising **$14.2 million** in cash and **$51.3 million** available under the revolving credit facility. An additional **$13.4 million** was borrowed in July 2025[10](index=10&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) [Condensed Consolidated Statements of Income (Loss)](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20(LOSS)%20AND%20COMPREHENSIVE%20INCOME%20(LOSS)) Q2 2025 revenue slightly decreased to **$147.3 million**, and net loss widened to **$10.4 million** due to higher interest expenses Statement of Income Highlights (in thousands) | Account | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Revenues | $147,251 | $150,466 | | Income from operations | $3,378 | $5,629 | | Interest expense | $14,729 | $12,876 | | Net loss | $(10,391) | $(7,061) | | Diluted loss per share | $(0.25) | $(0.18) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, total assets increased to **$361.2 million**, with total liabilities rising to **$442.9 million**, leading to a larger stockholders' deficit Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Cash and cash equivalents | $14,216 | $17,275 | | Total current assets | $175,731 | $174,577 | | Total assets | $361,165 | $359,181 | | Total current liabilities | $93,930 | $86,029 | | Long-term debt | $323,454 | $319,137 | | Total liabilities | $442,902 | $431,294 | | Total stockholders' equity (deficit) | $(81,737) | $(72,113) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Q2 2025 generated **$10.1 million** cash from operations, a turnaround from Q1, with cash used in investing and financing activities Statement of Cash Flows Highlights (in thousands) | Account | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $10,088 | $(5,277) | | Net cash used in investing activities | $(5,765) | $(3,981) | | Net cash used in financing activities | $(3,915) | $(1,556) | | Net (decrease) increase in cash | $480 | $(10,605) | [Reconciliation of Non-GAAP Financial Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) [Reconciliation of Adjusted EBITDA](index=8&type=section&id=RECONCILIATION%20OF%20ADJUSTED%20EBITDA) Adjusted EBITDA for Q2 2025 was **$14.1 million**, a decrease from Q1, derived by adjusting net loss for various non-cash items Adjusted EBITDA Reconciliation (in thousands) | Account | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net loss | $(10,391) | $(7,061) | | EBITDA | $12,157 | $14,424 | | **Adjusted EBITDA** | **$14,123** | **$16,537** | [Reconciliation and Calculation of Adjusted ROIC](index=9&type=section&id=RECONCILIATION%20AND%20CALCULATION%20OF%20ADJUSTED%20ROIC) The company's Adjusted ROIC was **6.7%** for Q2 2025, a decrease from Q1, calculated from adjusted after-tax net operating income and average total capital Adjusted ROIC Calculation | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Adjusted after-tax net operating income | $4,325 thousand | $5,676 thousand | | Average total capital | $257,097 thousand | $258,254 thousand | | **Adjusted ROIC** | **6.7%** | **8.8%** | [Reconciliation of Adjusted Gross Profit](index=10&type=section&id=RECONCILIATION%20OF%20ADJUSTED%20GROSS%20PROFIT%20(LOSS)) Adjusted Gross Profit for Q2 2025 was **$25.8 million**, derived by adding back non-cash D&A to GAAP gross profit Adjusted Gross Profit Reconciliation (in thousands) | Account | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Gross profit | $17,333 | $19,477 | | Add: Depreciation | $5,683 | $5,723 | | Add: Amortization of intangibles | $2,796 | $2,796 | | **Adjusted gross profit** | **$25,812** | **$27,996** |

Core Viewpoint - Nine Mile Metals Ltd. is initiating a private placement to raise up to $400,000 through both Flow-through (FT) and Non-flow-through (NFT) units to fund exploration activities and operational expenses [1][4][6]. Group 1: Private Placement Details - The FT private placement will involve the sale of up to 12,500,000 units at a price of $0.02 per unit, aiming for gross proceeds of up to $250,000 [2]. - Each FT unit consists of one common share and one warrant, allowing the purchase of one common share at $0.05 for 36 months [2]. - The NFT private placement will consist of up to 10,000,000 units at $0.015 each, targeting gross proceeds of up to $150,000 [5]. - Each NFT unit includes one common share and one-half warrant, with each full warrant allowing the purchase of one common share at $0.05 for 36 months [5]. Group 2: Use of Proceeds - Proceeds from the FT private placement will be allocated for drilling at the Wedge Project and the California Lake East VMS Trend, specifically Target 6, along with other exploration-related expenditures [4]. - Proceeds from the NFT private placement will be used for operating expenses and general working capital [6]. Group 3: Finder's Fees - Finders for the FT private placement may receive an 8% cash commission and 8% in common share purchase warrants, exercisable at $0.05 for 36 months [3]. - Finders for the NFT private placement may also receive an 8% cash commission and 8% in common share purchase warrants, but these warrants will be exercisable for 24 months [6]. Group 4: Company Overview - Nine Mile Metals Ltd. is a Canadian public mineral exploration company focused on VMS (Cu, Pb, Zn, Ag, and Au) exploration in the Bathurst Mining Camp, New Brunswick [7]. - The company aims to explore its four VMS projects, positioning itself for growth in critical minerals required for EV and green technologies [7].

Core Viewpoint - The article discusses the rapid growth and challenges in the lawn mowing robot industry, highlighting the increasing competition and market dynamics as domestic companies expand into overseas markets, particularly in Europe and the United States [2][5][12]. Group 1: Market Dynamics - Lawn mowing robots have become a mainstream product for domestic companies entering the European and American markets, with significant sales growth reported [3][4]. - Major markets for exported lawn mowers include Germany, the UK, and the US, with Germany being the largest consumer [4][9]. - The market for lawn mowing robots is currently valued at $2.5 billion, with a sales penetration rate of only 12.5% and a volume penetration rate of 4-5% [27][29]. Group 2: Industry Challenges - The industry is experiencing a mix of successes and failures, with some companies facing operational challenges and even dissolution due to restructuring and funding issues [6][12]. - The competitive landscape is intensifying, with many new entrants and established players vying for market share, leading to a potential "bloodbath" in the market by 2025 [14][33]. - The survival of companies in this sector depends on their ability to innovate and manage costs effectively, as any weakness in technology, supply chain, or distribution can jeopardize their success [12][33]. Group 3: Technological Advancements - The evolution of lawn mowing robots is marked by a shift from manual to fully automated systems, driven by the need for efficient lawn maintenance in outdoor spaces [15][21]. - Advanced technologies such as RTK positioning and laser radar are being integrated into lawn mowing robots to enhance their operational capabilities [25][23]. - The introduction of innovative designs, such as the use of roll blade technology, aims to address common issues with traditional mowing methods [12]. Group 4: Future Outlook - The global lawn mower market is projected to reach $32.31 billion in 2023, with an expected compound annual growth rate (CAGR) of 6.0% from 2023 to 2030 [32]. - By 2030, the market for lawn mowing robots is anticipated to exceed $15.937 billion, with a penetration rate of 33% [32]. - The competitive landscape will continue to evolve, with both traditional and new players focusing on technological innovation and market penetration strategies [33][34].

Core Viewpoint - Nine Mile Metals Ltd. has received a $40,000 grant from the New Brunswick Department of Natural Resources and Energy Development to support exploration on the California Lake East VMS Project [1][4]. Exploration Plans - The company submitted a proposal in April 2025 for specific exploration on the California Lake East VMS Project, where previous drilling in 2022 confirmed the presence of a VMS system [2]. - Planned exploration will focus on the stratigraphic horizon and EM strong late-time conductors, with ground-based geophysics to define prioritized drill targets [2][6]. - Target 6 has been identified as a high-priority new target, potentially the source of the previously successful VMS drill program at Target 8 [2][8]. Support and Community Engagement - The New Brunswick government continues to support the mining community in the Bathurst Mining Camp through the Junior Mining Assistance Program, which funds projects of high interest [4]. - The company expresses gratitude for the ongoing support from the New Brunswick Department of Natural Resources and the local mining community [8]. Company Overview - Nine Mile Metals Ltd. is focused on Critical Minerals VMS exploration in the Bathurst Mining Camp, with projects including Nine Mile Brook, California Lake, Canoe Landing Lake, and Wedge VMS Projects [9]. - The company aims to position itself for the demand in EV and green technologies, which require critical minerals such as Copper, Silver, Lead, and Zinc, while also having a hedge on Gold [9].

Group 1 - The article emphasizes the transformative power of consumption in shaping the Chinese economy, highlighting the significant potential of the consumer market with a projected retail sales total of 48.79 trillion yuan in 2024, reflecting a 3.5% year-on-year growth [7] - The consumption structure is undergoing a historic shift, with service consumption accounting for 46.1% of total consumption, surpassing goods consumption for the first time, particularly in areas like cultural tourism [7][8] - The article identifies four dimensions driving the deep transformation of the consumer market: policy, technology, culture, and value [8] Group 2 - The article discusses the emergence of "atypical" brands that redefine market rules by transcending traditional product sales and becoming "translators of new lifestyles" for Generation Z [4] - The third annual brand festival, themed "Global New Trends," aims to explore and capture the pulse of new lifestyles among global youth [4] - The festival features a multi-faceted approach, including forums, awards, exhibitions, and online and offline content, to engage with the evolving consumer landscape [4] Group 3 - The article highlights the importance of understanding consumer motivations, noting a shift from "pleasing others" to "pleasing oneself," with consumers increasingly favoring niche designs and high-quality products [19] - It points out that consumers are becoming proactive researchers, taking control of their decision-making processes through comparison and analysis [19][20] - The article also notes a trend towards diverse consumption behaviors, with consumers valuing emotional and spiritual satisfaction over mere functionality [19] Group 4 - The article outlines the rapid growth of the smart short transportation sector, with Ninebot achieving cumulative sales of 7 million electric scooters in less than six years, becoming the global leader in smart electric vehicle sales [25] - Ninebot's strategy focuses on decoding user pain points through data-driven insights and emotional resonance, fostering user co-creation and engagement [26] - The brand aims to redefine "cool" by aligning its products with diverse consumer identities and values, emphasizing a balance between restraint in brand narrative and excellence in product experience [26] Group 5 - The article discusses the role of technology in enhancing brand marketing efficiency, with JD.com implementing a data-driven solution to optimize resource allocation and improve marketing effectiveness [31] - JD.com emphasizes the integration of online and offline resources to create a comprehensive marketing platform that connects brands with consumers [32] - The platform aims to facilitate a complete marketing loop from awareness to conversion, focusing on key scenarios such as new product launches and promotional events [32] Group 6 - The article highlights the significance of data-driven decision-making for brands entering international markets, with Similarweb providing insights to help brands optimize their marketing strategies [53][55] - It presents case studies demonstrating how data analysis can enhance market understanding and competitive positioning, particularly in emerging markets [54] - The focus is on leveraging data to reduce operational costs and improve marketing efficiency for brands seeking global growth [55] Group 7 - The article discusses BYD's commitment to technological innovation and its impact on brand recognition, with the company becoming a leading player in the global automotive market [58][60] - BYD's strategy includes significant investment in R&D, resulting in a comprehensive technology system that supports various vehicle models [58] - The brand aims to balance technological advancement with sustainable development goals, contributing to carbon neutrality efforts [60] Group 8 - The article emphasizes the importance of authentic brand storytelling in connecting with younger consumers, particularly Generation Z and Alpha [77][78] - It highlights the need for brands to understand and resonate with consumer emotions and daily lives, rather than relying on traditional marketing templates [78][80] - The focus is on building brand identity through genuine consumer engagement and understanding their unique preferences [79]

Core Viewpoint - Nine Energy Service, Inc. is conducting its Q1 2025 earnings conference call to discuss financial results and future outlook [1][3]. Group 1: Company Overview - The conference call is hosted by Heather Schmidt, VP of Strategic Development and Investor Relations, with participation from Ann Fox, President and CEO, and Guy Sirkes, SVP and CFO [2][3]. - The call includes forward-looking statements that reflect the company's views on future events, which are subject to risks and uncertainties [4]. Group 2: Financial Reporting - The company will discuss non-GAAP financial measures during the call, with additional details and reconciliations provided in the Q1 press release and on the Investor Relations section of the website [5].