Revenue and Growth - Revenue growth of 357% from $35 million in 2012 to $160 million projected in 2025[18] - E&P operators now account for over 45% of revenue, up from less than 10% in 2014[26] - Total revenue for the year ended December 31, 2025, was $159.6 million, an increase of $5.2 million, or 3%, compared to 2024[174] - Western Hemisphere revenue decreased by $3.8 million, or 3%, to $148.6 million due to lower customer activity levels[175] - Eastern Hemisphere revenue increased by $10.3 million, or 78%, to $23.5 million, driven by recent acquisitions[176] Market Position and Operations - Market share in North American land drilling has increased, with active tool rentals on over 50% of working locations[18] - Expansion of service and support centers from 3 to 15 in North America and establishment of 11 additional international centers[18] - The company operates from 15 locations in North America and 11 international service and support centers across Europe, the Middle East, and Asia-Pacific[160] - The company operates in the oil and gas industry, which is subject to significant hazards that could lead to substantial liabilities and revenue loss[44] Financial Performance and Costs - Net cash provided by operating activities was $19.9 million, significantly up from $6.1 million in 2024[192] - Net cash used in investing activities was $13.3 million, including $5.6 million for the acquisition of Titan[193] - Net cash used in financing activities was $9.3 million, resulting from net debt repayments of $8.0 million[195] - Corporate and other expenses decreased by $1.6 million, or 10%, to $13.9 million due to reallocation of expenses[178] - Depreciation and amortization increased by $3.5 million, or 15%, to $27.3 million, primarily from the acquisition of Titan Tools[179] - Interest expense increased by $1.6 million, or 50%, to $5.1 million due to a full year of interest on the credit facility[180] Risks and Challenges - Demand for the company's products and services is heavily influenced by oil and gas prices, which have historically been volatile, potentially affecting capital spending by customers[45] - The cyclical nature of the oil and gas industry can lead to downturns, resulting in reduced demand for the company's services and downward pressure on pricing[46] - Customer expenditure levels may decline if they face liquidity constraints due to falling commodity prices, adversely impacting the company's financial condition[47] - The company relies on a limited number of customers, and the loss of a significant customer could materially impact its financial results[49] - The company faces risks related to labor shortages and rising wage costs, which could hinder its ability to meet customer demands and expand operations[54] - Inflation has led to increased costs for freight, materials, and labor, although the company has managed to pass some of these costs onto customers[63] - The oil and gas drilling tool rental industry is highly competitive, with potential price competition affecting profitability and utilization rates[68] - The company may face challenges in executing and integrating acquisitions, which could disrupt operations and adversely affect results[69] Regulatory and Environmental Factors - Compliance with complex environmental laws and regulations may adversely affect the company's operations and financial results, particularly in the oil and gas sector[94] - Increased regulatory scrutiny regarding greenhouse gas emissions could negatively impact demand for the company's products and services[96] - The company is required to invest resources to comply with environmental regulations, which may increase operational costs and affect profitability[95] - Political and regulatory disruptions in international markets could negatively impact demand for the company's products and services[81] - Delays in obtaining permits or authorizations for drilling activities could impair the company's business operations[65] Shareholder and Capital Management - There are no current plans to pay cash dividends on Common Stock for the foreseeable future, meaning returns on investment depend on selling shares at a higher price[125] - The company may issue additional shares of Common Stock or other equity securities without shareholder approval, which could dilute ownership interests[123] - The potential for Nasdaq to delist the Common Stock could limit trading and subject the company to additional restrictions[126] - The company has broad discretion over cash usage, which may not align with shareholder interests, potentially compromising growth strategies[124] Technology and Innovation - The exclusive agreement for the RotoSteer system has shown strong adoption since its launch in 2023[27] - New technology in the industry may enhance competition, and the company may struggle to acquire advanced tools, impacting market share[73] Economic and Global Factors - The company faces uncertainties due to global economic conditions, including inflation and geopolitical tensions, which could disrupt market stability[91] - Rising international tariffs could materially affect the company's business and results of operations[90] - The company expects continued inflationary pressures on its cost structure, impacting the outlook for oil demand and potentially affecting demand for its goods and services[211] Internal Controls and Cybersecurity - The company may face challenges in maintaining effective internal controls over financial reporting, which could impact investor confidence and stock price[106] - Cybersecurity risks are overseen by the Chief Financial Officer and VP of Finance, with regular updates provided to the Board of Directors[144] - The company has a cybersecurity Risk Management Policy in place to identify and manage risks, but future material incidents cannot be ruled out[134]

Exhibit 99.1 NEWS RELEASE Drilling Tools International Corp. Reports 2025 Year End and Fourth Quarter Results Expects Continued Growth in 2026 Consolidated Revenue, Adjusted EBITDA and Adjusted Free Cash Flow HOUSTON — March 5, 2026 — Drilling Tools International Corp., (NASDAQ: DTI) ("DTI" or the "Company"), a global oilfield services company that designs, engineers, manufactures and provides a differentiated, rental-focused offering of tools for use in onshore and offshore horizontal and directional drill ...