Nine Energy Service: Q2 TAKE THREE

Nine expects Q3 revenue and earnings to decline due to weak oil prices and rising tariffs. It is cutting costs while expanding market share and international presence. Q2 margins deteriorated, but gas basins and overseas markets offered some support. Free cash flow turned positive, though liquidity remains limited and leverage is high.

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Downfall To Continue In Q3: Nine expects the tariff pressure and soft commodity prices to persist. The company will focus on cost control and operational efficiency. It also aims to grow market share and expand internationally to offset domestic challenges. Overall, it anticipates “Q3 revenue and earnings will be down compared to Q2.” Read more about NINE’s recent past in our article here .

Revenue and EBITDA Margin Deteriorated in Q2 : Quarter-over-quarter, NINE's revenues decreased by 2.1% in Q2, while its adjusted EBITDA margin contracted by 140 basis points. US rig activity, primarily at the oil-levered basins like the Permian, declined sharply. On the other hand, its international revenue increased, partially mitigating the fall in Q2. In the US, activity in gas-levered basins like the Haynesville and Northeast also improved in Q2.

Cash Flows And Debt : NINE's cash flow from operations turned positive in Q2 2025 compared to a negative cash flow a quarter ago. As a result, free cash flow turned positive in Q2. Due to negative shareholders' equity, its debt-to-equity ratio remained negative as of June 30, 2025. In July 2025, the company borrowed $13.4 million under its revolving credit facility, leaving a total liquidity of $65.5 million.

Thanks for reading the NINE Take Three, designed to give you three critical takeaways from NINE's earnings report. Soon, we will present a second update on NINE earnings, highlighting its current strategy, news, and notes we extracted from our deeper dive.

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