Financial Data and Key Metrics Changes - Revenue for 2025 increased by 13% year-over-year, reaching $183.6 million, exceeding the high end of guidance [5][20] - Adjusted EBITDA rose by 20% year-over-year to $26.7 million, with an adjusted EBITDA margin of 14.5% [5][23] - Free cash flow after distributions to non-controlling interest totaled $18.9 million, representing over 70% conversion from adjusted EBITDA [5][11] Business Line Data and Key Metrics Changes - The U.S. market saw a 69% year-over-year revenue increase, while Canada experienced a 7% decline, and international revenue grew by 5% [16][21] - ResMetrics contributed $5.2 million to revenue in 2025, slightly above expectations, with a total of $2.9 million in Q4 [16][21] Market Data and Key Metrics Changes - The U.S. market led revenue growth, driven by improved fracturing system sales and higher plug revenue [16] - Canada faced lower activity levels due to market headwinds, impacting revenue negatively [16] Company Strategy and Development Direction - The company aims to advance efficient and sustainable energy development, targeting the $10 billion global completions market [6] - Core strategies include building market positions, capitalizing on high-margin growth opportunities, and commercializing innovative solutions [7][9] Management's Comments on Operating Environment and Future Outlook - The management anticipates a challenging market environment in 2026, with flat to lower customer activity in North America but potential growth in international markets [26][27] - Full-year revenue guidance for 2026 is projected between $184 million and $194 million, with adjusted EBITDA expected between $26 million and $29 million [27][28] Other Important Information - The company maintains a strong balance sheet with a net cash position of approximately $29 million and total liquidity of about $61 million [23][31] - The integration of ResMetrics is expected to enhance the company's tracer diagnostics platform and open new market opportunities [12][13] Q&A Session Questions and Answers Question: Guidance and Revenue Timing - The management indicated that revenue is expected to be weighted towards the back half of the year due to seasonality and market conditions [37][39] Question: Cross-Selling Potential in the Middle East - Initial benefits from ResMetrics are more evident in North America, with potential for future cross-selling in international markets [40][42] Question: North Sea Market Updates - The North Sea has been a success, with new customer orders and ongoing projects expected to expand into shallow water markets [46][48]

Financial Data and Key Metrics Changes - Revenue for 2025 was $183.6 million, a 13% increase compared to 2024, exceeding the high end of guidance [21][24] - Adjusted EBITDA increased by 20% year-over-year to $26.7 million, with an adjusted EBITDA margin of 14.5% [24] - Free cash flow after distributions to non-controlling interest totaled $18.9 million, representing over 70% conversion from adjusted EBITDA [5][12] Business Line Data and Key Metrics Changes - Revenue growth was achieved across U.S., Canada, and international markets, with U.S. revenue increasing by 69% year-over-year [17] - Adjusted gross profit for Q4 was $21.2 million, with an adjusted gross margin of 42% [18] - ResMetrics contributed $5.2 million in revenue for the five months following its acquisition [21] Market Data and Key Metrics Changes - U.S. market led revenue growth, while Canada experienced a 7% decline due to lower activity levels [17] - International revenue increased by 5%, indicating resilience despite market challenges [17] Company Strategy and Development Direction - The company aims to advance efficient and sustainable energy development through innovative solutions [6][7] - Core strategies include building market positions, capitalizing on high-margin growth opportunities, and commercializing innovative solutions [8][10] - The integration of ResMetrics is expected to enhance the company's tracer diagnostics platform and expand market reach [13] Management's Comments on Operating Environment and Future Outlook - The management anticipates a challenging market environment in 2026, with flat to lower customer activity in North America [27] - Full-year revenue guidance for 2026 is projected between $184 million and $194 million, with adjusted EBITDA between $26 million and $29 million [28] - The company expects to continue expanding its market share and product adoption internationally [28] Other Important Information - The company maintains a strong balance sheet with a net cash position of approximately $29 million [24] - Free cash flow guidance for 2026 is expected to exceed 50% of adjusted EBITDA [33] Q&A Session Questions and Answers Question: Guidance on revenue timing and potential shifts - Management indicated that revenue is expected to be weighted towards the back half of the year due to seasonality and project timelines [38][39] Question: Cross-selling potential in the Middle East - Management noted that while some benefits from ResMetrics are seen in North America, international cross-selling will take more time to develop [41][43] Question: Updates on North Sea projects - Management reported success in the North Sea with new customer orders and plans to leverage technology in shallow water markets [48][50]

Financial Data and Key Metrics Changes - Revenue for 2025 was $183.6 million, a 13% increase compared to 2024, exceeding the high end of guidance [20][21] - Adjusted EBITDA increased by 20% year-over-year to $26.7 million, with an adjusted EBITDA margin of 14.5% [23][20] - Free cash flow after distributions to non-controlling interest totaled $19 million, representing over 70% conversion from adjusted EBITDA [31][12] Business Line Data and Key Metrics Changes - Revenue growth was driven by a 69% increase in the U.S., while Canada saw a 7% decline and international revenue increased by 5% [16][20] - The acquisition of ResMetrics contributed $5.2 million to revenue for the year, enhancing the company's position in the tracer diagnostic space [20][5] - Adjusted gross profit for Q4 was $21.2 million, with an adjusted gross margin of 42%, slightly down from 43% in Q4 2024 [17][21] Market Data and Key Metrics Changes - The U.S. market showed strong performance, while Canada faced headwinds due to lower activity levels [16][20] - The company expects flat to lower overall customer activity in North America for 2026, with potential increases in international markets, particularly in the Middle East [26][27] Company Strategy and Development Direction - The company aims to advance efficient and sustainable energy development, targeting the $10 billion global completions market [6][4] - Core strategies include building market positions, capitalizing on high-margin growth opportunities, and commercializing innovative solutions [8][10] - The integration of ResMetrics is expected to enhance the company's tracer diagnostics platform and expand market reach [13][12] Management's Comments on Operating Environment and Future Outlook - Management anticipates a challenging market environment in 2026, with expectations of revenue growth primarily from U.S. and international markets [26][27] - The company aims to grow revenue in excess of underlying market activity and convert over 50% of adjusted EBITDA to free cash flow [14][29] - Management expressed confidence in the company's ability to utilize deferred tax assets, contributing to improved net income [19][23] Other Important Information - The company maintains a strong balance sheet with a net cash position of approximately $29 million and total liquidity of over $61 million [23][31] - Guidance for Q1 2026 includes expected revenue of $49 million to $53 million, with adjusted gross margin anticipated between 39% and 41% [24][25] Q&A Session Questions and Answers Question: Guidance on revenue weighting towards the back half of the year - Management indicated that seasonality affects revenue, with the majority of earnings and cash flow expected in the second half of the year [37][38] Question: Cross-selling potential in the Middle East with ResMetrics - Management noted that while benefits are seen in North America, international cross-selling will take more time to develop [40][42] Question: Updates on the North Sea pipeline and project opportunities - Management highlighted success in the North Sea, with new customer orders and ongoing projects, indicating a strong product-market fit [46][48]

Financial Data and Key Metrics Changes - The company's second quarter revenue for 2025 was $36,500,000, representing a year-over-year improvement of 23% and the highest second quarter revenue since 2019 [18] - Adjusted EBITDA for the second quarter was $2,200,000, an improvement compared to $900,000 for the same period in 2024 [21] - Net income for the second quarter was $900,000, or diluted earnings per share of $0.34, compared to a net loss of $3,100,000 or a loss per share of $1.21 in the prior year [20] - Adjusted gross profit was $13,000,000, with an adjusted gross margin of 36%, down from 40% a year ago [19] Business Line Data and Key Metrics Changes - Revenue in Canada for 2025 was $56,000,000, increasing 27% compared to the same period in 2024, driven by strong performance in fracturing systems [7] - U.S. revenues improved by 15%, reflecting an increase in fracturing system sales and higher frac plug sales at Repeat Precision [18] - International revenues decreased by 17%, primarily due to the timing of tracer diagnostic projects in the Middle East [18] Market Data and Key Metrics Changes - The Canadian rig count was approximately 10% to 15% below the previous year, impacting the company's performance [38] - The company expects continued success in the North Sea, with an increase in customers from two in 2022 to seven in 2025 [10] - The Middle East market is seeing increased well construction sales, partially offsetting delays in tracer diagnostics projects [10] Company Strategy and Development Direction - The company aims to build upon its leading market positions, capitalize on international opportunities, and commercialize innovative solutions [11] - The acquisition of ResMetrix is expected to enhance the company's tracer diagnostics capabilities and expand its presence in the Middle East [15] - The company maintains a strong balance sheet and liquidity position, utilizing cash on hand for strategic acquisitions [16] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the second half of 2025 due to deteriorating market conditions, including a decline in U.S. rig counts and potential oversupply in the oil market [25] - The company is maintaining a wider than normal range for annual operating guidance, with expected revenue growth of 6% at the midpoint [25] - Management noted a cautiously optimistic tone among customers, with a focus on the fourth quarter and potential impacts from OPEC supply [48] Other Important Information - The total purchase price for ResMetrics is up to a maximum cash amount of $7,150,000, with an earn-out component of up to $1,250,000 [22] - The company expects ResMetrics to contribute an additional $4,000,000 to $5,000,000 of revenue and $1,000,000 to $1,500,000 of adjusted EBITDA for the last five months of 2025 [27] Q&A Session Summary Question: Opportunities for cross-selling post-acquisition of ResMetrics - Management indicated that there are distinct customer bases for ResMetrics and the existing tracer diagnostics business, with potential revenue synergy opportunities as new technologies are introduced to a broader customer set [33][34] Question: Targeting new geographies and market uncertainty - Management expressed interest in continuing momentum in the North Sea and expanding into other offshore markets, while remaining cautious due to market uncertainties [35] Question: Factors needed to tighten guidance range - Management highlighted the importance of Canadian rig counts and indicated that narrowing the guidance range would depend on improvements in rig activity [36][38] Question: Margin opportunities and integration of ResMetrics - Management discussed potential operational synergies and cost reductions through the adoption of best practices, with a long-term goal of generating $1,000,000 to $2,000,000 in operational synergies [42][43] Question: Customer mindset in the current market environment - Management noted a cautiously optimistic tone among customers, with a focus on the potential impacts of OPEC supply and a reassessment of forecasts in Canada [46][50]

Financial Data and Key Metrics Changes - The company's Q1 2025 revenue was $50 million, exceeding the high end of the guided range by $4 million, marking the highest quarterly revenue since Q1 2020 [4][12] - Adjusted gross margin improved to 44%, up from 40% year-over-year, benefiting from operating leverage and higher margin international activity [5][12] - Adjusted EBITDA for Q1 2025 was $8.2 million, surpassing the estimated range of $4.5 million to $6.5 million, and representing a year-over-year increase of $2.1 million [5][12] Business Line Data and Key Metrics Changes - Revenue in Canada for Q1 2025 was $38 million, a 19% increase compared to Q1 2024, driven by the adoption of fracturing systems [6][12] - International revenue increased by 34%, primarily due to activity in the Middle East and North Sea, while U.S. revenue declined by 6% [12] Market Data and Key Metrics Changes - The average rig count in Canada increased by 3%, but the company's revenue growth outpaced this, indicating strong market performance [6] - The company anticipates a seasonal decline in Canadian revenue for Q2 2025 due to spring breakup, projecting total revenue in the range of $26 million to $29 million [15] Company Strategy and Development Direction - The company aims to build on its leading market positions, capitalize on international opportunities, and commercialize innovative solutions to customer challenges [6][8] - The company is focusing on expanding its presence in international markets, particularly in the North Sea and the Middle East, and plans to establish a local entity in the UK [6][29] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the second half of 2025 due to geopolitical uncertainties and potential impacts from tariffs, while maintaining a revenue guidance of $165 million to $175 million for the year [17][19] - The company expects to generate positive free cash flow in 2025, strengthening its balance sheet and providing opportunities for strategic investments [19][22] Other Important Information - The company reported a net income of $4.1 million for Q1 2025, with diluted earnings per share of $1.51, an improvement from $2.1 million and $0.82 per share in Q1 2024 [12] - The company maintains a strong liquidity position with $23 million in cash and total liquidity of approximately $50 million [22] Q&A Session Summary Question: Are there any capacity constraints to be aware of? - Management indicated no significant breakpoints in capacity, citing a robust supply chain and infrastructure to support growth [27][29] Question: What is the current sales pipeline like? - Management noted ongoing scenario planning among customers and anticipated decisions that could affect market activity, particularly in North America [30][32] Question: How does the company view M&A opportunities? - Management is open to evaluating M&A opportunities but also sees strong internal investment potential if suitable external opportunities do not arise [39][40] Question: How is the pricing environment affected by tariffs and commodity prices? - Management acknowledged challenges in passing through increased costs due to low commodity prices but emphasized the differentiation of their products [54][56]

Financial Data and Key Metrics Changes - In Q4 2024, total revenues were $45.0 million, a 20% increase year-over-year, with international revenue up by 280%, Canada up by 20%, and the U.S. up by 18% [21][22] - For the full year 2024, revenues reached $162.6 million, a 14% increase compared to 2023, with adjusted gross margin improving to 41% from 39% [23] - Adjusted EBITDA for Q4 2024 was $8.2 million, up from $2.5 million in Q4 2023, while full-year adjusted EBITDA was $22.3 million, significantly higher than $11.9 million in 2023 [26][27] Business Line Data and Key Metrics Changes - The company achieved its highest ever revenue outside of North America in 2024, with international revenue doubling from 5% to 10% of total revenue [12] - Adjusted gross profit for Q4 2024 was $19.4 million, with an adjusted gross margin of 43%, up from 37% in Q4 2023, driven by higher margin international revenues [22] Market Data and Key Metrics Changes - The company reported a significant increase in international revenue, which reached an all-time high of $16.5 million in 2024 [23] - The U.S. revenue for Q1 2025 is expected to be between $8 million and $9 million, while Canadian revenue is projected to be between $32 million and $34 million [28] Company Strategy and Development Direction - The company aims to grow revenue in excess of underlying market activity in 2025, focusing on international markets and new technology introductions [18] - Strategic objectives include enhancing operational efficiency, improving employee engagement, and generating free cash flow [19] - The company is actively looking for M&A opportunities to integrate small tech-related businesses that align with its strategic goals [56] Management's Comments on Operating Environment and Future Outlook - Management expects customer activity in 2025 to be flat to down in the U.S., with slight increases in Canada and core international markets [30] - The strengthening of the U.S. dollar is anticipated to negatively impact revenue and adjusted EBITDA for 2025 [31] - The company is monitoring potential trade actions and has plans to mitigate impacts from increased tariffs [33] Other Important Information - The company ended 2024 with a cash balance of nearly $26 million and expects to generate positive free cash flow in 2025 [36][37] - Capital expenditures for 2025 are expected to be between $1.5 million and $2 million, with free cash flow after distributions projected at $7 million to $10 million [34] Q&A Session Summary Question: Insights on the cadence for the year and spring breakup in Canada - Management expects 2025 seasonality to mimic 2024, with typical activity patterns anticipated [43][44] Question: Factors driving margin expansion - Margin expansion was driven by international growth, operating leverage, and cost reduction actions taken in 2023 [48][50] Question: Interest in small tech-related businesses for M&A - The company is actively looking for M&A opportunities that align strategically and operationally [56][58] Question: R&D developments and upcoming market introductions - Exciting technologies are in development, with some nearing prototype stage and potential market introduction [60][61]