Research Reports

Key takeaways

Revenue fell 72.4% to $41.6M from $150.5M YoY, driven entirely by fresh start accounting adoption following Chapter 11 emergence on March 5, 2026, which reset the financial reporting baseline.

Operating income declined to -$856K (vs. $5.6M prior) and operating margin was -2.1%, as historical cost structures were replaced with new fair-value-based asset and liability measurements.

Net income remained unchanged at -$7.1M YoY, consistent with the absence of material non-recurring gains or losses in the quarter beyond the fresh start adjustment.

Diluted EPS held steady at -$0.18, reflecting both the net income stability and the reconstituted share count under fresh start accounting.

Net cash used in operating activities improved to -$2.4M (vs. -$5.3M YoY), supported by working capital dynamics—including an increase in accounts receivable due to timing of customer invoices and payments.

Full analysis

Fresh Start Accounting Reset Defines Q1 FY2026 Results

Operating Performance Reflects Structural Rebaseline

Operating income turned negative at -$856K (versus $5.6M in Q1 FY2025), and operating margin settled at -2.1%. These outcomes stem directly from the fresh start adjustments, including revised depreciation schedules, updated lease obligations, and revalued inventory and equipment. As noted in management commentary, the nature of capital expenditures now comprises 'a base level of investment required to support current operations'—confirming that near-term spending is focused on continuity, not growth expansion. The absence of meaningful changes in net income (-$7.1M YoY) and diluted EPS (-$0.18) further underscores that the quarter’s financial profile reflects accounting realignment, not a shift in underlying earnings power.

NINE · Nine Energy Service, Inc.

Summary

Key takeaways

Full analysis

Fresh Start Accounting Reset Defines Q1 FY2026 Results

Operating Performance Reflects Structural Rebaseline

Cash Flow Dynamics Driven by Working Capital Timing