Drilling Tools shares surge 17.10% intraday after Q3 revenue of $38.8M, $5.6M free cash flow, and strategic debt reduction.

Drilling Tools International Corp. (DTI) surged 17.10% intraday following its Q3 2025 earnings report, which highlighted $38.8 million in revenue (exceeding expectations) and $5.6 million in adjusted free cash flow. The company demonstrated financial discipline by reducing debt by $5.6 million, increasing cash reserves by $3.2 million, and repurchasing $550,000 of shares. Management emphasized proactive pricing strategies, improved activity levels amid commodity volatility, and 41% year-over-year growth in Eastern Hemisphere revenue (15% of total revenue). These results, coupled with maintained full-year guidance and expanded liquidity via an $80 million ABL credit facility, signaled operational resilience and strategic execution, driving immediate investor optimism.