Drilling Tools International (DTI) - 2025 Q3 - Quarterly Results

Financial Performance - Total consolidated revenue for Q3 2025 was $38.8 million, with Tool Rental revenue at $31.9 million and Product Sales revenue at $7.0 million[3]. - Net loss attributable to common stockholders for Q3 2025 was $903,000, equating to a loss of $0.03 per diluted share[3]. - Adjusted EBITDA for Q3 2025 was $9.1 million, with Adjusted Free Cash Flow of $5.6 million[3]. - Total revenue for the nine months ended September 30, 2025, was $121.1 million, compared to $114.6 million for the same period in 2024[16]. - The company reported a net loss of $4.98 million for the nine months ended September 30, 2025, compared to a net income of $4.36 million for the same period in 2024[16]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $29,202 million, a decrease of 5.7% from $30,983 million in 2024[30]. - For the three months ended September 30, 2025, the net loss was $904,000 compared to a net income of $867,000 in the same period of 2024[33]. - Adjusted net income for the three months ended September 30, 2025, was $751,000, down from $4,630,000 in 2024, reflecting a decrease of approximately 84.8%[35]. Guidance and Projections - The company maintained its full year 2025 revenue guidance range of $145 million to $165 million, with Adjusted EBITDA guidance of $32 million to $42 million[7]. - Estimated adjusted EBITDA for the twelve months ending December 31, 2025, is projected to be between $32,000,000 and $42,000,000, with a revenue forecast of $145,000,000 to $165,000,000[37]. - The adjusted EBITDA margin for the estimated period is expected to range from 22% to 25%[37]. - The company anticipates adjusted free cash flow for the twelve months ending December 31, 2025, to be between $14,000,000 and $19,000,000, with a margin of 10% to 12%[38]. Cash Flow and Debt Management - DTI paid down $5.6 million in debt and increased its cash position by $3.2 million during the quarter[4]. - Cash at the end of the period was $4,373 million, down from $11,961 million at the end of the previous period, reflecting a decrease of 63.5%[20]. - The company reported a net cash flow from operating activities of $14,588 million for the nine months ended September 30, 2025, compared to $9,723 million in 2024, an increase of 50.5%[20]. Expenses and Liabilities - Selling, general, and administrative expenses for Q3 2025 were $20.4 million, slightly up from $19.9 million in Q3 2024[14]. - Total current liabilities increased to $31,756 million as of September 30, 2025, compared to $30,963 million at December 31, 2024, an increase of 2.6%[18]. - The total liabilities increased to $106,277 million as of September 30, 2025, up from $102,472 million at December 31, 2024, an increase of 3.9%[18]. - The company reported a depreciation and amortization expense of $20,386 million for the nine months ended September 30, 2025, compared to $17,232 million in 2024, an increase of 12.5%[30]. Strategic Initiatives - DTI's proactive strategy included strategic pricing adjustments to offset pricing pressure and stimulate higher activity levels[4]. - Transaction expenses for the nine months ended September 30, 2025, were $1,118,000, down from $4,766,000 in 2024, indicating a reduction of approximately 76.6%[35]. - Capital expenditures for the nine months ended September 30, 2025, were $(16,136,000), compared to $(19,678,000) in 2024, showing a decrease of 12.9%[35]. Stock and Shareholder Information - The basic weighted-average common shares outstanding increased to 35,516,692 for the nine months ended September 30, 2025, from 30,893,602 in 2024, reflecting an increase of approximately 15.5%[35]. - The company purchased treasury stock at a cost of $1,152 million during the nine months ended September 30, 2025[20]. Segment Performance - The Eastern Hemisphere segment saw a 41% revenue growth quarter over quarter, contributing approximately 15% of total revenue in the current quarter[5]. - The company incurred a goodwill impairment charge of $1,901 million during the nine months ended September 30, 2025[30]. - The company reported a goodwill impairment of $1,901,000 for the nine months ended September 30, 2025, with no such impairment reported in 2024[35].