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- **Revenue Miss and Market Challenges**: Q3 revenue of $132 million fell short of guidance due to 7% rig count decline and pricing pressure, with completion tools revenue down 16%.
- **International Growth**: Year-to-date international revenue up 19%, driven by UAE, Argentina, and Australia.
- **Operational Innovation**: Landmark cementing job in Haynesville basin with latex-based slurry, despite Northeast drought-related inefficiencies.
- **2026 Outlook Uncertainty**: Operators evaluating CapEx amid oil price volatility; service sector capital constraints limit equipment upgrades.

**【Heather Schmidt's Opening Remarks】**
- Welcomed participants and outlined the call's purpose, emphasizing forward-looking statements and non-GAAP financial measures.
- Highlighted the importance of reviewing risk factors in SEC filings and the reconciliation of non-GAAP measures.

**【Ann Fox's CEO Commentary】**
- Q3 2025 revenue was $132 million, below guidance of $135-145 million, due to market challenges including a 7% rig count decline and pricing pressure.
- Market share losses in completion tools due to customer consolidation and casing size changes; international revenue grew 19% year-to-date.
- Operational challenges in the Northeast due to droughts; highlighted a technical achievement in the Haynesville basin with innovative cementing solutions.
- Q4 2025 revenue projected at $122-132 million, with continued pricing and activity headwinds.

**【Guy Sirkes' CFO Financial Commentary】**
- Liquidity as of Q3 2025: $40.3 million (cash + credit facility), with borrowing base reductions expected through January 2026.
- Revenue declines across services: cementing (-6%), wireline (-15%), completion tools (-16%), coiled tubing (-7%).
- G&A expenses $12.8 million; CapEx $3.5 million (Q3) and $13.9 million (year-to-date), with full-year budget unchanged at $15-25 million.
- Q3 net cash used in operations: $9.9 million; DSO 56.8 days.

**【Q&A Highlights】**
- **Market Dynamics**: Operators may delay 2026 CapEx decisions amid oil price volatility; service sector underinvestment risks straining equipment availability.
- **Equipment Needs**: Long laterals require step-change in coiled tubing technology, but capital constraints limit investment.
- **Operator Pressures**: Upstream sector facing cost curve challenges and acreage quality decline, complicating service sector relief efforts.

Nine Energy Service, Inc. (NINE) Q3 2025 Earnings Call Transcript

Completion Solutions

Service

Tools

NINE

NINE fundamentals

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