DWSN · Dawson Geophysical Company

Dawson Geophysical's Q4 2025 results showed strong sequential improvement with revenue surging 72% year-over-year to $27.0 million, driven by high crew utilization from one large channel crew and three smaller crews in the US, plus resumption of Canadian operations. Fee revenue specifically rose 67% to $22.9 million, maintaining gross margins at 23%. This operational leverage delivered net income of $0.6 million ($0.02/share) and Adjusted EBITDA of $3.3 million, a 248% increase from Q4 2024's $0.9 million. For the full year, revenue edged up 2% to $75.6 million despite lower reimbursables, with fee revenue growing 16% to $61.9 million and gross margins steady at 21%. The net loss narrowed significantly to $1.9 million ($0.06/share) from $4.1 million ($0.13/share) in 2024, reflecting better cost control and Adjusted EBITDA up 139% to $4.7 million. Management highlighted $14.0 million in operating cash flow, enabling $7.2 million free cash flow and investment in single node channels for future growth. G&A expenses dropped 9% YoY through AI automation in receiver point mapping, slashing processing time dramatically. CEO Tony Clark emphasized competitive advantages in high-channel count seismic jobs and expansion into carbon capture, geothermal, and minerals exploration. Cash rose to $4.9 million, bolstered by a $5 million revolving credit facility (undrawn). A $3 million 2026 capex budget includes final single node payments. Discussions with 80%-owner Wilks Brothers for potential asset deals or business combinations are ongoing via a special committee, with $528k Q4 expenses incurred. Forward comments signal Q1 2026 revenue/utilization growth and continued profitability gains.