nine-20250930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_________________________________

FORM 10-Q

_________________________________

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-38347

__________________________________________________________________

Nine Energy Service, Inc.

(Exact name of registrant as specified in its charter)

__________________________________________________________________


Delaware			80-0759121
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

2001 Kirby Drive, Suite 200

Houston, TX 77019

(Address of principal executive offices) (Zip Code)

(281) 730-5100

(Registrant’s telephone number, including area code)


Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	NINE	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

☒

Smaller reporting company

☒

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

The number of shares of the registrant’s common stock, par value $0.01 per share, outstanding at October 28, 2025 was 43,361,339.

TABLE OF CONTENTS

PART I

FINANCIAL INFORMATION

Item 1.

Financial Statements (Unaudited)

Condensed Consolidated Balance Sheets

Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)

Condensed Consolidated Statements of Stockholders’ Equity (Deficit)

Condensed Consolidated Statements of Cash Flows

Notes to the Condensed Consolidated Financial Statements

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Item 4.

Controls and Procedures

Unregistered Sales of Equity Securities and Use of Proceeds

Item 3.

Defaults Upon Senior Securities

Item 4.

Mine Safety Disclosures

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements that are subject to a number of risks and uncertainties, many of which are beyond our control. All statements other than statements of historical fact, including those regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans, and objectives of management, are forward-looking statements. When used in this Quarterly Report on Form 10-Q, the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words.

All forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q; we disclaim any obligation to update these statements unless required by law, and we caution you not to place undue reliance on them. Although we believe that our plans, intentions, and expectations reflected in or suggested by the forward-looking statements we make in this Quarterly Report on Form 10-Q are reasonable, we can give no assurance that these plans, intentions, or expectations will be achieved.

We disclose important factors that could cause our actual results to differ materially from our expectations under “Risk Factors” in Item 1A of Part I in our Annual Report on Form 10-K for the year ended December 31, 2024 and in Item 1A of Part II in this Quarterly Report on Form 10-Q. These factors, some of which are beyond our control, include the following:

•Our business is cyclical and depends on capital spending and well completions by the onshore oil and natural gas industry, and the level of such activity is volatile and strongly influenced by current and expected oil and natural gas prices. If the prices of oil and natural gas decline, our business, financial condition, results of operations, cash flows, and prospects may be materially and adversely affected. Significant factors that are likely to affect near-term commodity prices include geopolitical and economic developments in the U.S. and globally, including conflicts, tariffs imposed by the U.S. and other countries or retaliatory trade measures, instability, acts of war, and terrorism in oil producing countries or regions, particularly the Middle East, Russia, South America, and Africa; actions by the members of the Organization of the Petroleum Exporting Countries (“OPEC”) and other oil exporting nations that relate to or impact oil production and supply; weather conditions; the effect of U.S. energy, monetary, and trade policies; and the pace of economic growth in the U.S. and throughout the world.

•Inflation may adversely affect our financial position and operating results; in particular, cost inflation with labor or materials could offset any price increases for our products and services.

•If we are unable to attract and retain key employees, technical personnel, and other skilled and qualified workers, our business, financial condition, or results of operations could suffer.

•We may be unable to maintain existing prices or implement price increases on our products and services, and intense competition in the markets for our dissolvable plug products may lead to pricing pressures, reduced sales, or reduced market share.

•Our substantial debt obligations could have significant adverse consequences on our business and future prospects, and restrictions in our debt agreements could limit our growth and our ability to engage in certain activities.

•Our current and potential competitors may have longer operating histories, significantly greater financial or technical resources, and greater name recognition than we do.

•Tariffs and other trade measures could adversely affect our business, results of operations, financial position, and cash flows, including by increasing the cost of certain raw materials, parts, and components that are manufactured and supplied for our operations, disrupting our supply chain and logistics, restricting or limiting the availability of materials or supplies, and causing adverse financial impacts due to volatility in foreign exchange rates and interest rates or inflationary pressures on raw materials and energy.

•Our operations are subject to conditions inherent in the oilfield services industry, such as equipment defects, liabilities arising from accidents or damage involving our fleet of trucks or other equipment, explosions and uncontrollable flows of gas or well fluids, and loss of well control.

•If we are unable to accurately predict customer demand, including that of our international customers, or if customers cancel their orders on short notice, we may hold excess or obsolete inventory, which would reduce gross margins. Conversely, insufficient inventory would result in lost revenue opportunities and potentially loss of market share and damaged customer relationships.

•We are dependent on customers in a single industry. The loss of one or more significant customers, including certain of our customers outside of the U.S., could adversely affect our financial condition, prospects, and results of operations. Sales to customers outside of the U.S. also exposes us to risks inherent in doing business internationally, including political, social, and economic instability and disruptions, export controls, economic sanctions, embargoes or trade restrictions, and fluctuations in foreign currency exchange rates.

•We may be subject to claims for personal injury and property damage or other litigation, which could materially adversely affect our financial condition, prospects, and results of operations.

•We are subject to federal, state, and local laws and regulations regarding issues of health, safety, and protection of the environment. Under these laws and regulations, we may become liable for penalties, damages, or costs of remediation or other corrective measures. Any changes in laws or government regulations could increase our costs of doing business.

•Our success may be affected by the use and protection of our proprietary technology as well as our ability to enter into license agreements. There are limitations to our intellectual property rights and, thus, our right to exclude others from the use of our proprietary technology.

•Our success may be affected by our ability to implement new technologies and services.

•We may be adversely affected by disputes regarding intellectual property rights.

•If our systems for protecting against cybersecurity risks prove not to be sufficient, we could be adversely affected by, among other things, loss or damage of intellectual property, proprietary information, customer or business data; interruption of business operations; or additional costs to prevent, respond to, or mitigate cybersecurity attacks.

•Our future financial condition and results of operations could be adversely impacted by asset impairment charges.

•Increased scrutiny of sustainability matters could have an adverse effect on our business and damage our reputation.

•Increased attention to climate change and conservation measures may reduce oil and natural gas demand, and we face various risks associated with increased activism and related litigation against oil and natural gas exploration and development activities.

•Seasonal and adverse weather conditions adversely affect demand for our products and services.

•We are currently out of compliance with certain of the New York Stock Exchange’s (the “NYSE”) continued listing standards and are at risk of the NYSE delisting our common stock, which would have an adverse impact on the liquidity and market price of our common stock.

Additional risks or uncertainties that are not currently known to us, that we currently deem to be immaterial, or that could apply to any company could also materially adversely affect our business, financial condition, or future results.

These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf.

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

NINE ENERGY SERVICE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

(Unaudited)


	September 30, 2025		December 31, 2024
Assets
Current assets
Cash and cash equivalents	$	14,389	$	27,880
Restricted cash	2,086		—
Accounts receivable, net	81,446		81,157
Income taxes receivable	—		284
Inventories, net	56,806		50,781
Prepaid expenses	6,219		9,982
Other current assets	1,951		380
Total current assets	162,897		170,464
Property and equipment, net	66,424		70,518
Operating lease right of use assets, net	35,852		37,252
Finance lease right of use assets, net	19		29
Intangible assets, net	70,859		79,246
Other long-term assets	4,650		2,567
Total assets	$	340,701	$	360,076
Liabilities and Stockholders’ Equity (Deficit)
Current liabilities
Accounts payable	$	37,072	$	36,052
Accrued expenses	23,329		30,676
Income taxes payable	169		—
Current portion of long-term debt	—		3,580
Current portion of operating lease obligations	13,214		11,216
Current portion of finance lease obligations	13		21
Total current liabilities	73,797		81,545
Long-term liabilities
Long-term debt	339,390		317,264
Long-term operating lease obligations	23,290		26,710
Other long-term liabilities	90		621
Total liabilities	436,567		426,140
Commitments and contingencies (Note 10)
Stockholders’ equity (deficit)
Common stock (120,000,000 shares authorized at $0.01 par value; 43,361,339 and 42,348,643 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively)	434		423
Additional paid-in capital	807,976		806,231
Accumulated other comprehensive loss	(4,865)		(5,406)
Accumulated deficit	(899,411)		(867,312)
Total stockholders’ equity (deficit)	(95,866)		(66,064)
Total liabilities and stockholders’ equity (deficit)	$	340,701	$	360,076

The accompanying notes are an integral part of these condensed consolidated financial statements.

NINE ENERGY SERVICE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)

(In thousands, except share and per share amounts)

(Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Revenues
Service	$	100,846	$	106,744	$	327,684	$	313,608
Product	31,182		31,413		102,061		99,070
	132,028		138,157		429,745		412,678
Cost and expenses
Cost of revenues (exclusive of depreciation and amortization shown separately below)
Service	87,879		89,142		276,787		266,415
Product	23,849		24,309		78,850		75,090
General and administrative expenses	12,756		12,366		39,893		37,113
Depreciation	5,759		6,226		17,392		19,562
Amortization of intangibles	2,795		2,796		8,387		8,388
Loss on revaluation of contingent liability	96		383		169		191
Loss on sale of property and equipment	61		484		427		485
Income (loss) from operations	(1,167)		2,451		7,840		5,434
Interest expense	13,714		12,879		41,319		38,453
Interest income	(114)		(196)		(572)		(660)
Other income	(173)		(162)		(522)		(486)
Loss before income taxes	(14,594)		(10,070)		(32,385)		(31,873)
Provision (benefit) for income taxes	53		73		(286)		366
Net loss	$	(14,647)	$	(10,143)	$	(32,099)	$	(32,239)
Loss per share
Basic	$	(0.35)	$	(0.26)	$	(0.79)	$	(0.89)
Diluted	$	(0.35)	$	(0.26)	$	(0.79)	$	(0.89)
Weighted average shares outstanding
Basic	41,297,925		39,209,798		40,787,178		36,188,175
Diluted	41,297,925		39,209,798		40,787,178		36,188,175
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments, net of $0 tax in each period	$	51	$	(9)	$	541	$	(166)
Total other comprehensive income (loss), net of tax	51		(9)		541		(166)
Total comprehensive loss	$	(14,596)	$	(10,152)	$	(31,558)	$	(32,405)

The accompanying notes are an integral part of these condensed consolidated financial statements.

NINE ENERGY SERVICE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)

(In thousands, except share amounts)

(Unaudited)


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings (Accumulated Deficit)		Total Stockholders’ Equity (Deficit)
	Shares	Amounts
Balance, June 30, 2025	43,370,187	$	434	$	807,509	$	(4,916)	$	(884,764)	$	(81,737)
Issuance of common stock under stock compensation plan, net of forfeitures	(8,848)	—		—		—		—		—
Stock-based compensation expense	—	—		467		—		—		467
Other comprehensive income	—	—		—		51		—		51
Net loss	—	—		—		—		(14,647)		(14,647)
Balance, September 30, 2025	43,361,339	$	434	$	807,976	$	(4,865)	$	(899,411)	$	(95,866)


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings (Accumulated Deficit)		Total Stockholders’ Equity (Deficit)
	Shares	Amounts
Balance, June 30, 2024	41,167,385	$	412	$	803,215	$	(5,016)	$	(848,326)	$	(49,715)
Issuance of common stock under stock compensation plan, net of forfeitures	15,330	—		—		—		—		—
Stock-based compensation expense	—	—		837		—		—		837
Issuance of common stock under ATM program	1,181,090	12		1,457		—		—		1,469
Other comprehensive loss	—	—		—		(9)		—		(9)
Net loss	—	—		—		—		(10,143)		(10,143)
Balance, September 30, 2024	42,363,805	$	424	$	805,509	$	(5,025)	$	(858,469)	$	(57,561)


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings (Accumulated Deficit)		Total Stockholders’ Equity (Deficit)
	Shares	Amounts
Balance, December 31, 2024	42,348,643	$	423	$	806,231	$	(5,406)	$	(867,312)	$	(66,064)
Issuance of common stock under stock compensation plan, net of forfeitures	1,012,696	11		(11)		—		—		—
Stock-based compensation expense	—	—		1,756		—		—		1,756
Other comprehensive income	—	—		—		541		—		541
Net loss	—	—		—		—		(32,099)		(32,099)
Balance, September 30, 2025	43,361,339	$	434	$	807,976	$	(4,865)	$	(899,411)	$	(95,866)


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings (Accumulated Deficit)		Total Stockholders’ Equity (Deficit)
	Shares	Amounts
Balance, December 31, 2023	35,324,861	$	353	$	795,106	$	(4,859)	$	(826,230)	$	(35,630)
Issuance of common stock under stock compensation plan, net of forfeitures	1,658,780	17		(17)		—		—		—
Stock-based compensation expense	—	—		2,225		—		—		2,225
Issuance of common stock under ATM program	5,380,164	54		8,195		—		—		8,249
Other comprehensive loss	—	—		—		(166)		—		(166)
Net loss	—	—		—		—		(32,239)		(32,239)
Balance, September 30, 2024	42,363,805	$	424	$	805,509	$	(5,025)	$	(858,469)	$	(57,561)

The accompanying notes are an integral part of these condensed consolidated financial statements.

NINE ENERGY SERVICE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


	Nine Months Ended September 30,
	2025		2024
Cash flows from operating activities
Net loss	$	(32,099)	$	(32,239)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation	17,392		19,562
Amortization of intangibles	8,387		8,388
Amortization of operating leases	11,105		9,948
Amortization of deferred financing costs and non-cash interest	10,221		5,592
Provision for doubtful accounts	51		457
Provision for inventory obsolescence	1,370		987
Stock-based compensation expense	1,756		2,225
Loss on sale of property and equipment	427		485
Loss on revaluation of contingent liability	169		191
Changes in operating assets and liabilities
Accounts receivable, net	(292)		8,251
Inventories, net	(7,161)		(2,396)
Prepaid expenses and other current assets	2,205		3,585
Accounts payable and accrued expenses	(6,891)		(15,961)
Income taxes receivable/payable	449		(124)
Operating lease obligations	(11,026)		(9,813)
Other assets and liabilities	(1,196)		(931)
Net cash used in operating activities	(5,133)		(1,793)
Cash flows from investing activities
Proceeds from sales of property and equipment	162		352
Purchases of property and equipment	(13,324)		(11,528)
Net cash used in investing activities	(13,162)		(11,176)
Cash flows from financing activities
Proceeds from issuance of common stock under ATM program	—		8,249
Proceeds from revolving credit facilities	65,946		3,000
Payments on revolving credit facilities	(51,000)		(10,000)
Payments of short-term debt	(3,580)		(2,859)
Cost of debt issuance	(4,558)		—
Principal payments on finance leases	(26)		(40)
Payments of contingent liability	(223)		(466)
Net cash provided by (used in) financing activities	6,559		(2,116)
Impact of foreign currency exchange on cash	331		(103)
Net decrease in cash and cash equivalents	(11,405)		(15,188)
Cash, cash equivalents, and restricted cash
Cash, cash equivalents, and restricted cash at beginning of period	$	27,880	$	30,840
Cash, cash equivalents, and restricted cash at end of period	$	16,475	$	15,652

Supplemental disclosures of cash flow information:
Cash paid for interest	$	41,609	$	42,681


	Nine Months Ended September 30,
	2025		2024
Cash paid (refunded) for income taxes	$	(777)	$	487
Right of use assets obtained in exchange for operating lease obligations	$	8,030	$	3,199
Supplemental schedule of non-cash investing and financing activities:
Right of use assets obtained in exchange for finance lease obligations	$	26	$	26
Capital expenditures in accounts payable and accrued expenses	$	1,402	$	1,229

The accompanying notes are an integral part of these condensed consolidated financial statements.

NINE ENERGY SERVICE, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. Company and Organization

Background

Nine Energy Service, Inc. (the “Company” or “Nine”), a Delaware corporation, is an oilfield services business that provides services integral to the completion of unconventional wells through a full range of tools and methodologies. The Company is headquartered in Houston, Texas.

Risks and Uncertainties

As Nine is a spot-market business, the Company’s business and its pricing depends, to a significant extent, on the level of unconventional resource development activity and corresponding capital spending of oil and natural gas companies. These activity and spending levels are strongly influenced by current and expected oil and natural gas prices, which have been extremely volatile historically and in recent years. In addition, the Company’s earnings are affected by its ability to maintain current pricing levels, the impact of wage and labor inflation, labor shortages, and supply chain constraints. Due to the spot-market nature of its business, the Company’s revenue and earnings generally move very similarly to rig, frac, and stage counts in U.S. rig count.

Historically, the Company has met its liquidity needs principally from cash on hand, cash flow from operations and, if needed, external borrowings and issuances of debt securities. At September 30, 2025, the Company had $14.4 million of cash and cash equivalents and $25.9 million of availability under the 2025 ABL Credit Facility (as defined in Note 8 – Debt Obligations), which resulted in a total liquidity position of $40.3 million. As in the past, the Company expects its liquidity position to be materially impacted by the semi-annual interest payments ($19.5 million each, based on amounts outstanding as of September 30, 2025) to the holders of the 2028 Notes (as defined in Note 8 – Debt Obligations).

At September 30, 2025, the Company had $63.3 million of outstanding borrowings under the 2025 ABL Credit Facility. The Company also had $300.0 million aggregate principal amount of 2028 Notes outstanding as of September 30, 2025. In order to satisfy these debt obligations and meet its long-term liquidity requirements generally, the Company may seek to refinance or restructure its indebtedness, seek additional sources of capital, sell assets, or undertake a combination thereof. Any such transactions may involve the issuance of additional equity or convertible debt securities that could result in material dilution to the Company’s stockholders, and these securities could have rights superior to holders of the Company’s common stock and could contain covenants that will restrict the Company’s operations. The Company’s ability to successfully execute any such plans is dependent on its operating performance, which, as noted above, depends, to a significant extent, on the level of activity and capital spending of oil and natural gas companies. There can be no assurance that the Company will succeed in executing these plans. If unsuccessful, the Company may not have sufficient liquidity and capital resources to repay its indebtedness when it matures or otherwise meet its long-term cash requirements.

2. Basis of Presentation

Condensed Consolidated Financial Information

In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of September 30, 2025, and its results of operations for the three and nine months ended September 30, 2025 and 2024, and cash flows for the nine months ended September 30, 2025 and 2024. These condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, in a manner consistent with the accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, unless otherwise disclosed herein, and should be read in conjunction therewith. The Condensed Consolidated Balance Sheet at December 31, 2024 was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of Nine and its wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in the consolidation.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates are based on management’s best knowledge of current events and actions that the Company may undertake in the future. Such estimates include fair value assumptions used in analyzing long-lived assets for possible impairment, useful lives used in depreciation and amortization expense, recognition of provisions for contingencies, and stock-based compensation fair value. It is at least reasonably possible that the estimates used will change within the next year.

Restricted Cash

Amounts included in restricted cash represent those required to be set aside, under a contractual agreement with a bank, as collateral for certain letters of credit and other general purposes.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Condensed Consolidated Balance Sheet that sum to the total of the same such amounts shown in the Condensed Consolidated Statement of Cash Flows.


	September 30, 2025
	(in thousands)
Cash and cash equivalents	$	14,389
Restricted cash	2,086
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	16,475

3. New Accounting Standards

In November 2024, the (the “FASB”) issued Accounting Standards Update (“ASU”) 2024-03, Income Statement- Reporting Comprehensive Income- Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, an update which requires additional disclosure of certain expense captions presented on the face of the Company’s income statement as well as disclosures about selling expenses. The ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027, and should be applied on a prospective or retrospective basis, with early adoption permitted. The Company is currently evaluating the impact that this guidance will have on the disclosures within its condensed consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments require disclosure of specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold and further disaggregation of income taxes paid for individually significant jurisdictions. The ASU is effective for fiscal years beginning after December 15, 2024. The Company does not expect this guidance to have a significant impact on the disclosures within its condensed consolidated financial statements.

4. Revenues

Disaggregation of Revenues

Disaggregated revenues for the three and nine months ended September 30, 2025 and 2024 were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
	(in thousands)
Cement	$	49,294	$	51,185	$	158,643	$	145,262
Coiled tubing	23,390		27,654		78,318		84,603
Wireline	28,162		27,905		90,723		83,743
Service revenues	$	100,846	$	106,744	$	327,684	$	313,608

Tools	$	31,182	$	31,413	$	102,061	$	99,070
Product revenues	$	31,182	$	31,413	$	102,061	$	99,070

SEC Form 10-Q filed by Nine Energy Service Inc.