NCS Multistage(NCSM) - 2025 Q3 - Quarterly Results

Financial Performance - Total revenues for Q3 2025 were $46.5 million, a 6% year-over-year increase from $44.0 million in Q3 2024[8] - Net income for Q3 2025 was $3.8 million, or $1.37 per diluted share, compared to $4.1 million, or $1.60 per diluted share in Q3 2024[13] - Adjusted EBITDA for Q3 2025 was $7.0 million, consistent with the same quarter of 2024, resulting in an adjusted EBITDA margin of 15%[14] - Gross profit for Q3 2025 was $18.6 million, with a gross margin of 40%, slightly down from 41% in Q3 2024[11] - Net income for the nine months ended September 30, 2025, was $10,394,000, significantly higher than $4,418,000 for the same period in 2024, representing a 135.2% increase[31] - Net income for Q3 2025 was $4,242,000, a decrease from $4,704,000 in Q3 2024, while net income for the nine months ended September 30, 2025, was $10,394,000, compared to $4,418,000 in the same period last year[44] Revenue Breakdown - U.S. revenues increased by 37% year-over-year, while international revenues rose by 38%, offset by a 19% decline in Canadian revenues[3] - Total revenues from the United States for the three months ended September 30, 2025, were $17,146,000, an increase of 54.5% from $11,134,000 in 2024[33] - Total revenues for the three months ended September 30, 2025, were $46,538,000, an increase of 5.7% compared to $44,006,000 for the same period in 2024[27] - Product sales for the nine months ended September 30, 2025, reached $94,062,000, up 14.1% from $82,455,000 in 2024[27] Cash Flow and Liquidity - Cash from operations for the first nine months of 2025 improved by approximately $7 million compared to the same period in 2024[5] - The company ended Q3 2025 with over $25 million in cash and $19 million available under its undrawn credit facility[5] - Free cash flow for the nine months ended September 30, 2025, was $8,742,000, significantly higher than $1,350,000 for the same period in 2024[49] - Cash and cash equivalents at the end of the period were $25,295,000, down from $25,880,000 at the beginning of the period[31] - Cash and cash equivalents as of September 30, 2025, were $25,295,000, a slight decrease from $25,880,000 as of December 31, 2024[38] Assets and Liabilities - Total current assets as of September 30, 2025, were $111,336,000, an increase from $105,570,000 as of December 31, 2024[29] - The company reported total liabilities of $34,911,000 as of September 30, 2025, a decrease from $36,703,000 as of December 31, 2024[29] - Total stockholders' equity increased to $110,137,000 as of September 30, 2025, compared to $98,839,000 at the end of 2024[29] - Net working capital as of September 30, 2025, was $63,002,000, an increase from $56,412,000 as of December 31, 2024[38] Operational Insights - The company anticipates continued strong operational performance despite deteriorating market conditions and potential oversupply in the oil market[7] - The acquisition of Reservoir Metrics, LLC contributed approximately $2 million to services revenue in the U.S.[9] - Capital expenditures for the nine months ended September 30, 2025, were $0.3 million, down from $0.7 million in the same period of 2024[18] Earnings and Margins - Basic earnings per share attributable to NCS Multistage Holdings, Inc. for the three months ended September 30, 2025, were $1.47, compared to $1.63 in 2024, reflecting a decrease of 9.8%[27] - Adjusted gross profit for Q3 2025 was $19,413,000, up from $18,532,000 in Q3 2024, resulting in an adjusted gross margin of 42%[41] - EBITDA for Q3 2025 was $5,327,000, compared to $6,133,000 in Q3 2024, with adjusted EBITDA at $7,041,000, reflecting a margin of 15%[44] - Adjusted EBITDA less share-based compensation for Q3 2025 was $6,378,000, slightly down from $6,424,000 in Q3 2024[44] Costs - Total cost of sales, exclusive of depreciation and amortization, was $27,125,000 for Q3 2025, compared to $25,474,000 in Q3 2024[41] - Distributions to non-controlling interest for the nine months ended September 30, 2025, were $1,900,000, compared to $1,000,000 in the same period of 2024[49]