Nine Energy Posts Revenue of $142.0 Million and Quarterly Loss of $5.1 Million
Key Facts
Nine Energy Service said on November 9 that revenue was $142.0 million in the third quarter of 2026, with a net loss of $5.1 million, or $0.36 per basic and diluted share. Adjusted EBITDA was $8.3 million, according to the company. Revenue was close to the $141.8 million reported in the second quarter, while the net loss widened from $4.9 million and adjusted EBITDA fell from $8.6 million. The figures comparing results with analyst expectations could not be verified. The company's shares, listed under the ticker NINE, closed at $6.67 in the November 9 session, according to EL7 data.
Gross profit was $13.3 million in the third quarter, while adjusted gross profit reached $20.6 million, the company said. By business line, cementing services generated revenue of $61.154 million, followed by completion tools revenue of $31.340 million. Wireline services generated $24.956 million, while coiled tubing revenue was $24.555 million, according to the company's filing with the U.S. Securities and Exchange Commission. The figures reflect the distribution of quarterly revenue across four main business lines, as cementing revenue rose 11% from the second quarter. The company said the improvement in cementing was driven by continued customer demand, increased activity and market-share gains.
Chief Executive Ann Fox attributed the improvement in results to “improved activity in the U.S. and stronger performance in cementing services.” The impact of those factors was offset by the continued downtime of a large coiled tubing unit, as well as lower international completion tools activity than in the second quarter because of order timing, the company said. Nine said in August that two large-diameter coiled tubing units, representing about 17% of its large-diameter fleet, had been taken out of service for maintenance issues. One unit returned to service at the beginning of the third quarter, while the other remained under repair. The company said at the time that the remaining unit could return near year-end, before indicating in its November announcement that it might return in December 2026.
Net cash generated from operating activities was $4.7 million in the third quarter, according to the earnings release. The company spent $2.8 million on capital expenditures during the period, compared with $4.8 million in the second quarter. It kept its 2026 capital expenditure guidance unchanged at a range of $20 million to $30 million, and expects spending to be near the midpoint of that range. As of September 30, cash and cash equivalents totaled $16.1 million, while the revolving credit facility provided an additional $29.9 million, bringing total liquidity to $46.0 million. Outstanding borrowings under the facility were $98.7 million on the same date.
Nine expects fourth-quarter revenue to remain at the third-quarter level, with a slight increase in profitability as the revenue mix shifts toward higher-margin cementing and international completion tools. The company said it expects U.S. activity to continue improving in the fourth quarter. The large-diameter coiled tubing unit that was down during the third quarter may also return to service in December 2026, a potential timing the company tied to the continuation of repair work. The company is scheduled to hold a call to discuss results on November 10, 2026, at 9:00 a.m. U.S. Central Time. Nine operates in a spot market and says its activity and service pricing depend to a large extent on unconventional resource development and oil and gas companies' capital spending.
The quarterly comparison carries important accounting context: Nine emerged from bankruptcy proceedings on March 5, 2026, after its reorganization plan took effect. The company says fresh-start accounting makes its financial data after that date not directly comparable with earlier data. The company had attributed second-quarter profitability pressure to a significant contraction in coiled tubing business margins, as well as inflationary pressures across consumables, labor, maintenance and repairs. In August, it reported that two large-diameter units had been taken out of service because of maintenance issues, with one returning at the beginning of the third quarter. This background helps place the remaining unit's downtime among the operational factors the company is monitoring in the fourth quarter.