Revenue Performance - Tool rental revenues accounted for 82% of total revenues for the three months ended September 30, 2025, compared to 70% for the same period in 2024[187]. - Total revenue for the three months ended September 30, 2025, was $38.8 million, a decrease of $1.3 million or 3% from $40.1 million in 2024[197]. - Western Hemisphere revenue decreased by $3.8 million, or 10%, to $35.0 million for the three months ended September 30, 2025, due to lower customer activity levels[199]. - Eastern Hemisphere revenue increased by $1.8 million, or 41%, to $6.2 million for the three months ended September 30, 2025, driven by recent acquisitions[200]. - For the nine months ended September 30, 2025, total revenue was $121.1 million, an increase of $6.5 million or 6% from $114.6 million in 2024[198]. - Eastern Hemisphere revenue for the nine months ended September 30, 2025, was $17.4 million, an increase of $7.5 million or 76% compared to 2024, attributed to acquisitions[206]. Income and Expenses - Net income for the three months ended September 30, 2025, was a loss of $0.9 million, compared to a profit of $0.9 million in 2024, representing a decrease of 204%[197]. - Corporate and other expenses decreased by $1.1 million, or 10%, to $10.6 million for the nine months ended September 30, 2025, due to reallocation of expenses[207]. - Depreciation and amortization expense increased by $0.6 million, or 10%, to $6.8 million for the three months ended September 30, 2025, reflecting higher asset balances[201]. - Interest expense, net increased by $0.3 million, or 29%, to $1.3 million for the three months ended September 30, 2025, primarily due to new loans[203]. - Depreciation and amortization expenses increased by $3.2 million, or 18%, to $20.4 million for the nine months ended September 30, 2025, compared to the same period in 2024[208]. - Interest expense, net rose by $2.0 million, or 96%, to $3.9 million for the nine months ended September 30, 2025, primarily due to interest on a term loan and credit facility[209]. - Other operating and non-operating expenses decreased by $0.8 million, or 15%, to $4.4 million for the nine months ended September 30, 2025, mainly due to lower transaction fees[210]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $29.2 million, a decrease from $30.98 million in 2024[215]. Cash Flow and Liquidity - Cash provided by operating activities was $14.6 million for the nine months ended September 30, 2025, compared to $9.7 million in 2024[222]. - Net cash used in investing activities was $12.7 million for the nine months ended September 30, 2025, primarily due to purchases of property, plant, and equipment[223]. - Net cash used in financing activities was $3.7 million for the nine months ended September 30, 2025, resulting from net debt decreases and treasury stock purchases[225]. - As of September 30, 2025, the company had $4.4 million in cash and cash equivalents, with sufficient liquidity for at least the next 12 months[216]. - The company expects federal net operating loss carryforwards to significantly reduce cash tax payments over the next several years[220]. Cybersecurity Measures - The company has implemented a suite of controls including technology hardware and software solutions to address cybersecurity risks[237]. - Regular testing of system resiliency includes penetration and disaster recovery testing[237]. - The company conducts regular training sessions on cybersecurity risks and mitigation strategies[237]. - An incident response plan and team have been established to manage cybersecurity incidents[237]. - There is no assurance that current efforts will fully mitigate cybersecurity risks[237]. - Mitigation efforts do not guarantee that no cybersecurity incidents will occur[237]. Foreign Currency Risk - The company has not entered into any hedging arrangements to manage foreign currency risk, which may affect future results as it expands internationally[232].
Rank One Computing(ROC) - 2025 Q3 - Quarterly Report