Drilling Tools shares surge 23.27% premarket after Q3 revenue beats, strong adjusted EBITDA, and debt reduction.

Drilling Tools International Corp. (DTI) surged 23.27% in premarket trading following the release of its Q3 2025 earnings report, which highlighted stronger-than-expected financial performance. The company reported $38.8 million in revenue, with $31.9 million from tool rentals, and delivered adjusted net income of $751,000 and adjusted EBITDA of $9.1 million. Management emphasized proactive pricing strategies, debt reduction ($5.6 million paid down), and a 41% revenue growth in its Eastern Hemisphere operations. Additionally, DTI expanded its ABL credit facility to $80 million and maintained full-year guidance, signaling financial resilience. These results, coupled with positive operational metrics like improved liquidity and strategic acquisitions, drove investor optimism ahead of the earnings call.