Drilling Tools International Corp.

Drilling Tools International Corp. reported FY 2025 revenue of $159.6 million, a 3% increase year-over-year. However, the company recorded a net loss of $3.8 million, a significant decline from a net income of $3.0 million in FY 2024. The net loss was driven by a goodwill impairment charge of $1.9 million, increased depreciation and amortization expense of $27.3 million (up 15% YoY), and higher interest expense of $5.1 million (up 50% YoY). Segment performance was mixed: Western Hemisphere revenue declined 3% to $148.6 million due to lower customer activity, while Eastern Hemisphere revenue grew 78% to $23.5 million primarily from acquisitions. The company generated strong operating cash flow of $19.9 million, but cash decreased by $2.5 million due to significant investing activities including $20.1 million in capital expenditures and a $5.6 million acquisition. Management believes existing liquidity sources are sufficient for at least the next twelve months.

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