Nine(US:NINE)2025-10-31 16:00Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $132 million, below the original guidance of $135 to $145 million, with adjusted EBITDA of $9.6 million [6][14] - The U.S. rig count declined from 592 at the end of Q1 to 549 at the end of Q3, a decrease of approximately 7% [6][7] - Cash and cash equivalents were $14.4 million, with total liquidity of $40.3 million as of September 30, 2025 [12] Business Line Data and Key Metrics Changes - Cementing revenue decreased by approximately 6% to $49.3 million, with a 4% decrease in completed jobs [14] - Wireline revenue fell by approximately 15% to $28.2 million, with a 4% decrease in completed stages [14] - Completion tools revenue decreased by approximately 16% to $31.2 million, with a 27% decrease in completed stages [14] - Coiled tubing revenue decreased by approximately 7% to $23.4 million, despite an average blended day rate increase of approximately 5% [14][15] Market Data and Key Metrics Changes - The average rig count in the Permian Basin declined by approximately 15% from Q1 to Q3 [7] - Natural gas prices averaged approximately $3.03 in Q3, down from $3.19 in Q2 [8] - International revenue grew by approximately 19% year-over-year, driven by increased sales in the UAE, Argentina, and Australia [8] Company Strategy and Development Direction - The company aims to grow market share both domestically and internationally while lowering costs without compromising service quality [19] - The completion tools division is focusing on R&D to adapt to customer consolidation and changes in completion designs [8] - The company is navigating challenging market dynamics and anticipates typical seasonality affecting Q4 activity [19] Management Comments on Operating Environment and Future Outlook - The management noted significant pricing pressure and market share losses due to competition and declining activity levels [7][19] - For Q4, the company projects revenue between $122 million and $132 million, expecting continued low pricing and seasonal slowdowns [19] - The management expressed concerns about the pressure on operators and the service sector, complicating the outlook for relief in pricing [23] Other Important Information - The company did not generate excess cash flow in the last two fiscal quarters, resulting in no cash flow offers to noteholders [14] - CapEx spend during Q3 was $3.5 million, with a full-year budget unchanged at $15 to $25 million, likely coming in at the lower end [16] Q&A Session Summary Question: When will customers recognize the need for relief in the service market? - Management indicated that the industry is nearing a point where operators are starting to consider the need for relief due to underinvestment and rising costs [23] Question: Is there potential for a step change in coiled tubing equipment needs? - Management acknowledged the technical need for a step change in equipment but noted that capital investment is currently challenging due to pressure on the service sector [24]