Drilling Tools International Corp. Reports 2025 Third Quarter Results

Core Insights - Drilling Tools International Corp. (DTI) reported a total consolidated revenue of $38.8 million for Q3 2025, with tool rental revenue at $31.9 million and product sales at approximately $7.0 million. The net loss attributable to common stockholders was $903,000, equating to a loss of $0.03 per share. Adjusted net income was $751,000, with an adjusted diluted EPS of $0.02 per share [2][3][4]. Financial Performance - DTI's Q3 2025 adjusted EBITDA was $9.1 million, and adjusted free cash flow was $5.6 million. As of September 30, 2025, the company had approximately $4.4 million in cash and cash equivalents, with net debt totaling $46.9 million [2][3][4]. - The company experienced a 41% revenue growth in its Eastern Hemisphere segment quarter-over-quarter, contributing approximately 15% to total revenue for the quarter [4]. Strategic Actions - The proactive strategy implemented by DTI, which included preparing for market downturns and adjusting pricing, allowed the company to outperform expectations despite challenging market conditions. The company successfully stimulated higher activity levels through effective communication with customers and flexible pricing options [3][4]. - DTI demonstrated strong financial discipline by reducing debt by $5.6 million, increasing cash reserves by $3.2 million, and repurchasing $550,000 of common shares [3][4]. Outlook - DTI maintains its full-year 2025 guidance, expecting revenue between $145 million and $165 million, adjusted EBITDA between $32 million and $42 million, and adjusted free cash flow between $14 million and $19 million. The company anticipates typical fourth-quarter seasonality to impact activity levels, pricing, and utilization [5][6].