Core Insights - NCS Multistage Holdings, Inc. reported strong operational and financial performance for Q3 2025, with total revenues of $46.5 million, a 6% increase year-over-year, driven by contributions from the acquisition of Reservoir Metrics, LLC [3][9][10] - The company experienced a 37% increase in U.S. revenues and a 38% increase in international revenues, although Canadian revenues declined by 19% due to reduced activity [3][4][9] - The company maintained a strong balance sheet with over $25 million in cash and only $7 million in debt, primarily from finance leases [5][16] Financial Performance - Total revenues for Q3 2025 were $46.5 million compared to $44.0 million in Q3 2024, with product sales remaining relatively flat [9][26] - Net income for Q3 2025 was $3.8 million, or $1.37 per diluted share, down from $4.1 million, or $1.60 per diluted share in Q3 2024 [9][13] - Adjusted EBITDA for Q3 2025 was $7.0 million, consistent with the same quarter of 2024, reflecting an adjusted EBITDA margin of 15% [14][47] Operational Highlights - The integration of ResMetrics is progressing well, with operational initiatives ahead of schedule, positioning the combined business as a market leader in reservoir analysis [6][7] - Cash flow from operations improved by approximately $7 million for the first nine months of 2025 compared to the same period in 2024, with free cash flow less distributions to non-controlling interest improving by over $6 million [5][15] Market Conditions - The company noted deteriorating market conditions, particularly in Canada, with reduced drilling and completion activity and potential oversupply in the oil market due to OPEC+ production increases [7][8] - Despite these challenges, the company aims to maintain momentum through the end of the year [7] Legal Matters - In October 2025, a Canadian court overturned a prior judgment against the company in a patent dispute, reducing the cost award from approximately $1.8 million to $0.9 million [20]