0001738827-26-000021
SEC filingMixed Q1 with revenue decline and net loss, but operating loss narrowed and cash flow turned positive on working capital management.
Revenue for the first quarter of 2026 was $144.7 million, a decrease of 6% compared to $154.0 million in the same period last year. The overall decrease reflects a decline in activity during the quarter, leading to lower demand for our services. Cost of sales as a percentage of revenues increased primarily due to lower revenues during the quarter.
Net cash provided by operating activities was $0.3 million, a significant improvement from -$37.6 million in the prior year quarter. The improvement was attributable to management of working capital and an increase in days payable outstanding. Capital expenditures were $8.7 million, down from $15.0 million, resulting in free cash flow of -$8.4 million.
Looking ahead, it is difficult to estimate the future direction of WTI prices or global oil inventories, or whether our customers will meaningfully increase planned drilling this year given ongoing uncertainty. The Company expects to continue to pursue opportunistic, strategic, accretive acquisitions that would further strengthen competitive positioning and capital structure, drive efficiencies, accelerate growth, and create long-term stockholder value.