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 [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]

Core Viewpoint - NCS Multistage Holdings, Inc. reported strong operational and financial performance in Q2 2025, with revenues and Adjusted EBITDA exceeding expectations and demonstrating a year-over-year revenue growth of 23% [2][3]. Financial Performance - Total revenues for Q2 2025 were $36.5 million, a 23% increase from $29.7 million in Q2 2024, driven by increased fracturing systems activity and frac plug sales in North America [8][9]. - Net income for Q2 2025 was $0.9 million, or $0.34 per diluted share, compared to a net loss of $(3.1) million, or $(1.21) per share, in Q2 2024 [15][9]. - Adjusted EBITDA for Q2 2025 was $2.2 million, reflecting a $1.3 million improvement year-over-year, with an Adjusted EBITDA margin of 6% compared to 3% in the same period last year [16][9]. Operational Highlights - The company maintained a strong balance sheet with over $25 million in cash and only $8 million in debt as of June 30, 2025 [4][9]. - The acquisition of Reservoir Metrics, LLC for $5.9 million is expected to enhance NCS's tracer diagnostics service line, with ResMetrics generating over $10 million in revenue and an EBITDA margin exceeding 30% [5][22]. Market Conditions - The company remains cautiously optimistic about the second half of 2025, despite deteriorating market conditions, including declining U.S. rig counts and potential oversupply in the oil market [6][2]. Geographic Revenue Breakdown - In Q2 2025, U.S. revenues totaled $13.6 million, while Canadian revenues reached $18 million, reflecting strong product sales despite a decline in Canadian rig counts [36][37]. - International revenues decreased primarily due to reduced tracer diagnostics activity in the Middle East, although there was an increase in sales of well construction products in other regions [8][10]. Cash Flow and Capital Expenditures - Cash flow from operating activities for the first half of 2025 was a source of cash of $1.9 million, a decrease from $4.1 million in the same period of 2024 [17]. - Capital expenditures for the first half of 2025 were $0.5 million, slightly up from $0.4 million in the same period of 2024 [20]. Liquidity and Working Capital - As of June 30, 2025, NCS had a working capital of $87.2 million, an increase from $80.2 million at the end of 2024, with net working capital at $64.0 million [18][19].