Drilling Tools International Corp. Reports 2026 Second Quarter Results
Rhea-AI Summary
Drilling Tools International (NASDAQ: DTI) reported 2026 second-quarter revenue of $38.1 million, including $29.6 million from tool rentals and $8.5 million from product sales. Net loss attributable to common shareholders was about $1.8 million, or -$0.05 per share. Adjusted net loss was $0.6 million, Adjusted EPS was -$0.02 per share, and Adjusted EBITDA reached $8.4 million. Adjusted free cash flow was $4.1 million. As of June 30, 2026, cash and cash equivalents totaled $2.5 million and Net Debt was $51.7 million.
For full-year 2026, DTI reaffirmed its outlook, targeting revenue of $155–$170 million, Adjusted EBITDA of $35–$45 million, Adjusted EBITDA margin of 23–26%, and Adjusted Free Cash Flow of $17–$22 million. Management highlighted traction for its ClearPath stabilizer technology and ongoing expansion across key international regions.
Positive
- Adjusted EBITDA of $8.4 million in Q2 2026
- Adjusted free cash flow of $4.1 million in Q2 2026
- Net loss narrowed to $1.8 million vs. $2.4 million in Q2 2025
- SG&A expense reduced to $19.9 million from $21.0 million year over year in Q2
- Reaffirmed 2026 guidance: revenue $155–$170 million; Adjusted EBITDA $35–$45 million; Adjusted FCF $17–$22 million
Negative
- Q2 2026 revenue declined to $38.1 million from $39.4 million year over year
- First-half 2026 revenue down to $76.0 million from $82.3 million year over year
- Continuing net losses: $1.8 million in Q2 and $3.3 million for first half 2026
- Negative operating cash flow of $5.5 million for the first half of 2026
- Net Debt of $51.7 million with revolving credit balance rising to $39.3 million
- Cash balance declined to $2.5 million at June 30, 2026 from $3.6 million at year-end 2025
News Explained
June 30 financing detail shows DTI relying on a $39,330 thousand revolver alongside debt maturities, while six-month operations used $5,466 thousand of cash.
As a completed report for the period ended
DTI defines Adjusted Free Cash Flow as Adjusted EBITDA less gross capital expenditures and explicitly describes it as a performance measure rather than a liquidity measure.
The six-month cash-flow statement reports operating cash use of
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 23 | Earnings call schedule | Neutral | +0.0% | Announced second-quarter results release timing and conference call access details. |
| Jul 07 | Property acquisition | Neutral | +2.8% | FCPT acquired a DTI facility for $4.7 million under a long-term lease. |
| May 07 | First-quarter results | Neutral | -10.2% | Reported first-quarter results and reaffirmed full-year 2026 financial guidance. |
| Apr 23 | Earnings call schedule | Neutral | +6.1% | Scheduled first-quarter results disclosure and conference call for May 8. |
| Mar 05 | Year-end results | Positive | +9.1% | Reported 2025 results and provided 2026 revenue and EBITDA outlook ranges. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
DTI's recent news reactions varied, ranging from -10.18% after first-quarter results to +9.06% after year-end results.
Key Terms
adjusted ebitda financial
adjusted free cash flow financial
net debt financial
bottom-hole assembly technical
non-gaap financial measure financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Reaffirms 2026 Outlook
For the second quarter of 2026, DTI generated total consolidated revenue of
Wayne Prejean, Chairman of the Board and Chief Executive Officer, stated, "I'm pleased with our performance in the second quarter, which reflects the resilience of our operations, the benefits of our geographic diversification and the durability of our unique platform. Despite softer North American land activity and disruption in the
"As we look forward, we are encouraged by early signs of recovery in several of the key regions in which we operate. The
"We are excited about the future and believe we are well positioned to benefit from recent activity trends. We have built a solid foundation, further strengthened by our recent acquisitions, as we continue to penetrate new markets and grow throughout the Eastern Hemisphere. Our differentiated technology portfolio is enabling us to win new business on improving commercial terms, and price-focused customers are returning to DTI as they come to appreciate the value we deliver in the field. As we have done successfully in the past, we will continue to strategically evaluate growth opportunities, including accretive acquisitions that meet our stringent return profile, but always with a disciplined focus on profitable growth and lasting value creation for our shareholders," concluded Prejean.
2026 Full Year Outlook
Revenue | — | | ||||||
Adjusted EBITDA(1) | | — | ||||||
Adjusted EBITDA Margin(1) | 23 % | — | 26 % | |||||
Adjusted Free Cash Flow(1)(2) | | — | | |||||
(1) | Adjusted Net Income (Loss), Adjusted Basic EPS, Adjusted Diluted EPS, Adjusted EBITDA, Adjusted EBITDA Margin, Net Debt, and Adjusted Free Cash Flow are non-GAAP financial measures. See "Non-GAAP Financial Measures" at the end of this release for a discussion of reconciliations to the most directly comparable financial measures calculated and presented in accordance with |
(2) | Adjusted Free Cash Flow is defined as Adjusted EBITDA less Gross Capital Expenditures. |
2026 Second Quarter Conference Call Information
DTI's 2026 second quarter conference call can be accessed live via dial-in or webcast on Friday, August 7, 2026 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) by dialing 201-389-0869 and asking for the DTI call at least 10 minutes prior to the start time, or via live webcast by logging onto the webcast at this URL address: https://investors.drillingtools.com/news-events/events. An audio replay will be available through August 14, 2026 by dialing 201-612-7415 and using passcode 13761577#. Also, an archive of the webcast will be available shortly after the call at https://investors.drillingtools.com/news-events/events for 90 days. Please submit any questions for management prior to the call via email to DTI@dennardlascar.com.
About Drilling Tools International Corp.
DTI is a Houston, Texas based leading oilfield services company that manufactures and rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas wells. With roots dating back to 1984, DTI operates from 15 service and support centers across North America and maintains 11 international service and support centers across the EMEA and APAC regions. To learn more about DTI, please visit: www.drillingtools.com.
Contact:
DTI Investor Relations
Ken Dennard / Natalie Hairston
InvestorRelations@drillingtools.com
Forward-Looking Statements
This press release may include, and oral statements made from time to time by representatives of the Company may include, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements other than statements of historical fact included in this press release are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "will," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward looking. These forward-looking statements include, but are not limited to, statements regarding DTI and its management team's expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Forward-looking statements in this press release may include, for example, statements about: (1) the demand for DTI's products and services, which is influenced by the general level activity in the oil and gas industry; (2) DTI's ability to retain its customers, particularly those that contribute to a large portion of its revenue; (3) DTI's ability to employ and retain a sufficient number of skilled and qualified workers, including its key personnel; (4) DTI's ability to source tools and raw materials at a reasonable cost; (5) DTI's ability to market its services in a competitive industry; (6) DTI's ability to execute, integrate and realize the benefits of acquisitions, and manage the resulting growth of its business; (7) potential liability for claims arising from damage or harm caused by the operation of DTI's tools, or otherwise arising from the dangerous activities that are inherent in the oil and gas industry; (8) DTI's ability to obtain additional capital; (9) potential political, regulatory, economic and social disruptions in the countries in which DTI conducts business, including changes in tax laws or tax rates; (10) DTI's dependence on its information technology systems, in particular Customer Order Management Portal and Support System, for the efficient operation of DTI's business; (11) DTI's ability to comply with applicable laws, regulations and rules, including those related to the environment, greenhouse gases and climate change; (12) DTI's ability to maintain an effective system of disclosure controls and internal control over financial reporting; (13) the potential for volatility in the market price of DTI's common stock; (14) the impact of increased legal, accounting, administrative and other costs incurred as a public company, including the impact of possible shareholder litigation; (15) the potential for issuance of additional shares of DTI's common stock or other equity securities; (16) DTI's ability to maintain the listing of its common stock on Nasdaq; and (17) other risks and uncertainties described from time to time in DTI's most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the Securities and Exchange Commission (the "SEC"). You should carefully consider the risks and uncertainties including those described in Part I, Item 1A – "Risk Factors" of our Annual Report on Form 10-K filed on March 6, 2026 and in comparable "Risk Factor" sections of our Quarterly Reports on Form 10-Q filed after such Form 10-K. Such forward-looking statements are based on the beliefs of management of DTI, as well as assumptions made by, and information currently available to DTI's management and are subject to numerous conditions, many of which are beyond the control of DTI. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors detailed in DTI's most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the SEC. All subsequent written or oral forward-looking statements attributable to the Company or persons acting on its behalf are qualified in their entirety by this paragraph. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
Drilling Tools International Corp. | ||||
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) | ||||
(In thousands of | ||||
Three Months Ended June 30, | ||||
2026 | 2025 | |||
Revenue, net: | ||||
Tool rental | $ 29,572 | $ 32,756 | ||
Product sale | 8,500 | 6,665 | ||
Total revenue, net | 38,072 | 39,421 | ||
Costs and other deductions: | ||||
Cost of tool rental revenue | 7,655 | 7,402 | ||
Cost of product sale revenue | 3,258 | 2,494 | ||
Selling, general, and administrative expense | 19,896 | 21,023 | ||
Depreciation and amortization expense | 6,916 | 6,830 | ||
Interest expense, net | 1,111 | 1,336 | ||
Loss (gain) on asset disposal | (2) | 85 | ||
Goodwill impairment | — | — | ||
Other operating and non-operating expense, net | 1,106 | 1,912 | ||
Total costs and other deductions | 39,940 | 41,082 | ||
Income (loss) before income tax expense | (1,868) | (1,661) | ||
Income tax benefit (expense) | 76 | (746) | ||
Net income (loss) | $ (1,792) | $ (2,407) | ||
Less: Net income (loss) attributable to non-controlling interest | (4) | — | ||
Net income (loss) attributable to Drilling Tools International shareholders | $ (1,788) | $ (2,407) | ||
Basic earnings (loss) per share | $ (0.05) | $ (0.07) | ||
Diluted earnings (loss) per share | $ (0.05) | $ (0.07) | ||
Basic weighted-average common shares outstanding | 35,276,155 | 35,573,749 | ||
Diluted weighted-average common shares outstanding | 35,276,155 | 35,573,749 | ||
Comprehensive income (loss): | ||||
Net income (loss) | $ (1,792) | $ (2,407) | ||
Foreign currency translation adjustment, net of tax | 131 | 2,199 | ||
Comprehensive income (loss): | (1,661) | (208) | ||
Less: comprehensive income (loss) attributable to non-controlling interest | (4) | — | ||
Comprehensive income (loss) attributable to Drilling Tools International shareholders | $ (1,657) | $ (208) | ||
Drilling Tools International Corp. | ||||
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) | ||||
(In thousands of | ||||
Six months ended June 30, | ||||
2026 | 2025 | |||
Revenue, net: | ||||
Tool rental | $ 58,482 | $ 67,289 | ||
Product sale | 17,549 | 15,012 | ||
Total revenue, net | 76,031 | 82,301 | ||
Costs and other deductions: | ||||
Cost of tool rental revenue | 15,405 | 15,090 | ||
Cost of product sale revenue | 6,620 | 6,051 | ||
Selling, general, and administrative expense | 40,122 | 42,633 | ||
Depreciation and amortization expense | 13,843 | 13,552 | ||
Interest expense, net | 2,124 | 2,645 | ||
Loss (gain) on asset disposal | (2) | 72 | ||
Goodwill impairment | — | 1,901 | ||
Other operating and non-operating expense, net | 1,882 | 3,846 | ||
Total costs and other deductions | 79,994 | 85,790 | ||
Income (loss) before income tax expense | (3,963) | (3,489) | ||
Income tax benefit (expense) | 633 | (587) | ||
Net income (loss) | $ (3,330) | $ (4,076) | ||
Less: Net income (loss) attributable to non-controlling interest | (2) | — | ||
Net income (loss) attributable to Drilling Tools International shareholders | $ (3,328) | $ (4,076) | ||
Basic earnings (loss) per share | $ (0.09) | $ (0.11) | ||
Diluted earnings (loss) per share | $ (0.09) | $ (0.11) | ||
Basic weighted-average common shares outstanding | 35,202,327 | 35,583,139 | ||
Diluted weighted-average common shares outstanding | 35,202,327 | 35,583,139 | ||
Comprehensive income (loss): | ||||
Net income (loss) | $ (3,330) | $ (4,076) | ||
Foreign currency translation adjustment, net of tax | (623) | 3,141 | ||
Comprehensive income (loss): | (3,953) | (935) | ||
Less: comprehensive income (loss) attributable to non-controlling interest | (2) | — | ||
Comprehensive income (loss) attributable to Drilling Tools International shareholders | $ (3,951) | $ (935) | ||
Drilling Tools International Corp. | ||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||
(In thousands of | ||||
June 30, | December 31, | |||
2026 | 2025 | |||
ASSETS | ||||
Current assets | ||||
Cash | $ 2,520 | $ 3,648 | ||
Accounts receivable, net | 43,494 | 37,683 | ||
Related party note receivable, current | 1,541 | 1,541 | ||
Inventories | 20,160 | 18,149 | ||
Prepaid expenses and other current assets | 6,073 | 3,866 | ||
Total current assets | 73,788 | 64,887 | ||
Property, plant and equipment, net | 71,815 | 72,602 | ||
Operating lease right-of-use asset | 24,458 | 25,181 | ||
Intangible assets, net | 38,143 | 39,674 | ||
Goodwill, net | 14,543 | 14,616 | ||
Deferred financing costs, net | 512 | 468 | ||
Related party note receivable, less current portion | 4,019 | 3,836 | ||
Deposits and other long-term assets | 1,313 | 917 | ||
Total assets | $ 222,181 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current liabilities | ||||
Accounts payable | $ 14,544 | $ 9,785 | ||
Accrued expenses and other current liabilities | 8,759 | 10,711 | ||
Current portion of operating lease liabilities | 4,639 | 4,335 | ||
Current maturities of long-term debt | 5,932 | 5,989 | ||
Total current liabilities | 33,874 | 30,820 | ||
Operating lease liabilities, less current portion | 20,552 | 21,494 | ||
Revolving line of credit | 39,330 | 25,000 | ||
Long-term debt, less current portion | 8,957 | 14,827 | ||
Deferred tax liabilities, net | 6,157 | 7,167 | ||
Total liabilities | 108,870 | 99,308 | ||
Commitments and contingencies | ||||
Shareholders' equity | ||||
Common stock, | 4 | 4 | ||
Less: Treasury stock at cost, 775,368 and 505,169 shares, respectively | (2,192) | (1,265) | ||
Additional paid-in-capital | 132,528 | 130,801 | ||
Accumulated deficit | (10,670) | (7,343) | ||
Accumulated other comprehensive income (loss) | 41 | 664 | ||
Total Drilling Tools International shareholder's equity | 119,711 | 122,861 | ||
Non-controlling interest | 10 | 12 | ||
Total Equity | 119,721 | 122,873 | ||
Total liabilities and shareholders' equity | $ 222,181 | |||
Drilling Tools International Corp. | |||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | |||||
(In thousands of | |||||
For the six months ended June 30, | |||||
2026 | 2025 | ||||
Cash flows provided (used in) by operating activities: | |||||
Net income (loss) | $ (3,330) | $ (4,076) | |||
Adjustments to reconcile net income (loss) to net cash from operating activities: | |||||
Depreciation and amortization | 13,843 | 13,552 | |||
Amortization of deferred financing costs | 85 | 174 | |||
Non-cash lease expense | 2,611 | 2,466 | |||
Unrealized loss (gain) on currency translation | (389) | 567 | |||
Write off of excess and obsolete inventory | 11 | 510 | |||
Write off of excess and obsolete property and equipment | — | 195 | |||
Provision (recovery) for credit losses | 241 | 356 | |||
Deferred tax expense (benefit) | (1,195) | (1,766) | |||
Loss (gain) on sale of property | (2) | 72 | |||
Gain on sale of lost-in-hole equipment | (7,249) | (5,454) | |||
Stock-based compensation expense | 1,627 | 1,183 | |||
Interest income on related party note receivable | (184) | (182) | |||
Goodwill impairment | — | 1,901 | |||
Changes in operating assets and liabilities: | |||||
Accounts receivable, net | (6,159) | 453 | |||
Prepaid expenses and other current assets | (3,128) | 670 | |||
Inventories | (797) | 1,291 | |||
Operating lease liabilities | (2,446) | (2,250) | |||
Accounts payable | 3,485 | (3,963) | |||
Accrued expenses and other current liabilities | (2,490) | (1,073) | |||
Net cash flows provided by (used in) operating activities | (5,466) | 4,626 | |||
Cash flows provided by (used in) investing activities: | |||||
Acquisition of a business, net of cash acquired | — | (5,622) | |||
Purchase of intangible assets | (762) | (1,095) | |||
Proceeds from sale of property, plant, and equipment | — | 38 | |||
Purchase of property, plant, and equipment | (11,916) | (12,594) | |||
Proceeds from sale of lost-in-hole equipment | 8,992 | 7,132 | |||
Net cash flows provided by (used in) investing activities | (3,686) | (12,141) | |||
Cash flows provided by (used in) financing activities: | |||||
Proceeds from exercise of stock options | 101 | — | |||
Payment of deferred financing costs | (129) | — | |||
Purchase of treasury stock | (706) | (608) | |||
Repayment of term loan | (5,163) | (2,500) | |||
Repayment of promissory note | (462) | (442) | |||
Proceeds from revolving line of credit | 35,789 | 33,789 | |||
Repayment on revolving line of credit | (21,459) | (27,791) | |||
Net cash flows provided by financing activities | 7,971 | 2,448 | |||
Effect of changes in foreign exchange rates | 53 | 27 | |||
Net change in cash | (1,128) | (5,040) | |||
Cash at beginning of period | 3,648 | 6,185 | |||
Cash at end of period | $ 2,520 | $ 1,145 | |||
Non-GAAP Financial Measures
This release includes Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow, Adjusted Free Cash Flow Margin, Net Debt, Adjusted Basic Earnings (Loss) Per Share, Adjusted Diluted Earnings (Loss) Per Share and Adjusted Net Income (Loss) measures. Each of these metrics is a "non-GAAP financial measure" as defined in Regulation G of the Securities Exchange Act of 1934.
Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. Adjusted EBITDA is not a measure of net earnings or cash flows as determined by GAAP. We define Adjusted EBITDA as net earnings (loss) before interest, taxes, depreciation and amortization, further adjusted for (i) goodwill and/or long-lived asset impairment charges, (ii) stock-based compensation expense, (iii) restructuring charges, (iv) transaction and integration costs related to acquisitions and (v) other expenses or charges to exclude certain items that we believe are not reflective of ongoing performance of our business.
We believe Adjusted EBITDA and Adjusted EBITDA Margin are useful because they allow us to supplement the GAAP measures in order to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to our financing methods or capital structure. We exclude the items listed above in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP, or as an indicator of our operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA. Our computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies.
Adjusted Free Cash Flow is a supplemental non-GAAP financial measure, and we define Adjusted Free Cash Flow as Adjusted EBITDA less Gross Capital Expenditures. We use Adjusted Free Cash Flow as a financial performance measure for planning, forecasting, and evaluating our performance. We believe that Adjusted Free Cash Flow is useful to enable investors and others to perform comparisons of current and historical performance of the Company. As a performance measure, rather than a liquidity measure, the most closely comparable GAAP measure is net income (loss).
Net Debt is a supplemental non-GAAP financial measure, and we define Net Debt as total debt less cash and cash equivalents. We use Net Debt to determine our outstanding debt obligations that would not be readily satisfied by our cash and cash equivalents on hand. We believe this metric is useful to analysts and investors in determining our leverage position since we have the ability to, and may decide to, use a portion of our cash and cash equivalents to reduce debt. As of June 30, 2026, Net Debt was
We define Adjusted Net Income (Loss) as consolidated net income (loss) adjusted for (i) goodwill and/or long-lived asset impairment charges, (ii) restructuring charges, (iii) transaction and integration costs related to acquisitions, (iv) income tax expense (or loss) which is calculated by applying a
We define Adjusted Basic Earnings (Loss) and Adjusted Diluted Earnings (Loss) per share as the quotient of adjusted net income (loss) and diluted weighted average common shares. We believe that Adjusted Diluted Earnings (Loss) per share provides useful information to investors because it allows us to exclude non-recurring items in evaluating our operating performance on a diluted per share basis.
This release also includes certain projections of non-GAAP financial measures. The reconciliations of estimated Adjusted EBITDA and estimated Adjusted Free Cash Flow to estimated net income (loss) include estimates of interest expense, income tax expense, depreciation and amortization, management fees, other expense, stock option exercise, goodwill impairment, transaction expense, and capital expenditures, which are difficult to predict and estimate and are primarily dependent on future events.
The following tables and narrative reconciliations of the non-GAAP financial measures of Adjusted EBITDA, Adjusted Free Cash Flow, Net Debt, and Adjusted Net Income to the most directly comparable GAAP financial measures for the periods indicated:
Drilling Tools International Corp. | ||||
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) | ||||
(In thousands of | ||||
Three months ended June 30, | ||||
2026 | 2025 | |||
Net income (loss) | $ (1,792) | $ (2,407) | ||
Add (deduct): | ||||
Income tax expense (benefit) | (76) | 746 | ||
Depreciation and amortization | 6,916 | 6,830 | ||
Interest expense, net | 1,111 | 1,336 | ||
Stock option expense | 908 | 642 | ||
Management fees | 188 | 188 | ||
Loss (gain) on sale of property | (1) | 85 | ||
Goodwill impairment | — | — | ||
Transaction expense | 832 | 215 | ||
Other operating and non-operating expense, net | 272 | 1,697 | ||
Adjusted EBITDA | $ 8,358 | $ 9,332 | ||
Six months ended June 30, | ||||
2026 | 2025 | |||
Net income (loss) | $ (3,330) | $ (4,076) | ||
Add (deduct): | ||||
Income tax expense (benefit) | (633) | 587 | ||
Depreciation and amortization | 13,843 | 13,552 | ||
Interest expense, net | 2,124 | 2,645 | ||
Stock option expense | 1,627 | 1,183 | ||
Management fees | 375 | 375 | ||
Loss (gain) on sale of property | (2) | 71 | ||
Goodwill impairment | — | 1,901 | ||
Transaction expense | 1,234 | 947 | ||
Other operating and non-operating expense, net | 647 | 2,900 | ||
Adjusted EBITDA | $ 15,885 | $ 20,085 | ||
Drilling Tools International Corp. | ||||
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) | ||||
(In thousands of | ||||
Three months ended June 30, | ||||
2026 | 2025 | |||
Net income (loss) | $ (1,792) | $ (2,407) | ||
Add (deduct): | ||||
Income tax expense (benefit) | (76) | 746 | ||
Depreciation and amortization | 6,916 | 6,830 | ||
Interest expense, net | 1,111 | 1,336 | ||
Stock option expense | 908 | 642 | ||
Management fees | 188 | 188 | ||
Loss (gain) on sale of property | (1) | 85 | ||
Goodwill impairment | — | — | ||
Transaction expense | 832 | 215 | ||
Other operating and non-operating expense, net | 272 | 1,697 | ||
Capital expenditures | (4,229) | (7,551) | ||
Adjusted Free Cash Flow | $ 4,129 | $ 1,781 | ||
Six months ended June 30, | ||||
2026 | 2025 | |||
Net income (loss) | $ (3,330) | $ (4,076) | ||
Add (deduct): | ||||
Income tax expense (benefit) | (633) | 587 | ||
Depreciation and amortization | 13,843 | 13,552 | ||
Interest expense, net | 2,124 | 2,645 | ||
Stock option expense | 1,627 | 1,183 | ||
Management fees | 375 | 375 | ||
Loss (gain) on sale of property | (2) | 71 | ||
Goodwill impairment | — | 1,901 | ||
Transaction expense | 1,234 | 947 | ||
Other operating and non-operating expense, net | 647 | 2,900 | ||
Capital expenditures | (11,916) | (12,594) | ||
Adjusted Free Cash Flow | $ 3,969 | $ 7,491 | ||
Drilling Tools International Corp. | ||||
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) | ||||
(In thousands of | ||||
Three months ended June 30, | ||||
2026 | 2025 | |||
Net income (loss) | $ (1,792) | $ (2,407) | ||
Add (deduct): | ||||
Transaction expense | 832 | 215 | ||
Goodwill impairment | — | — | ||
Restructuring charges | 48 | 629 | ||
Software implementation | 222 | 316 | ||
Income tax expense (benefit) | (76) | 746 | ||
Adjusted Income Before Tax | $ (766) | $ (501) | ||
Adjusted Income tax expense (benefit) | (192) | 125 | ||
Adjusted Net Income (loss) | $ (575) | $ (626) | ||
Adjusted Basic earnings (loss) per share | $ (0.02) | $ (0.02) | ||
Adjusted Diluted earnings (loss) per share | $ (0.02) | $ (0.02) | ||
Basic weighted-average common shares outstanding | 35,276,155 | 35,573,749 | ||
Diluted weighted-average common shares outstanding | 35,276,155 | 35,573,749 | ||
Six months ended June 30, | ||||
2026 | 2025 | |||
Net income (loss) | $ (3,330) | $ (4,076) | ||
Transaction expense | 1,234 | 947 | ||
Goodwill impairment | — | 1,901 | ||
Restructuring charges | 262 | 998 | ||
Software implementation | 353 | 448 | ||
Income tax expense (benefit) | (633) | 587 | ||
Adjusted Income Before Tax | $ (2,114) | $ 805 | ||
Adjusted Income tax expense (benefit) | (529) | 201 | ||
Adjusted Net Income (loss) | $ (1,586) | $ 604 | ||
Adjusted Basic earnings (loss) per share | $ (0.05) | $ 0.02 | ||
Adjusted Diluted earnings (loss) per share | $ (0.05) | $ 0.02 | ||
Basic weighted-average common shares outstanding | 35,202,327 | 35,583,139 | ||
Diluted weighted-average common shares outstanding | 35,202,327 | 35,622,914 | ||
Drilling Tools International Corp. | |||||
Reconciliation of Estimated Consolidated Net Income (Loss) to Adjusted EBITDA | |||||
(In thousands of | |||||
(Unaudited) | |||||
Twelve Months Ended December 31, 2026 | |||||
Low | High | ||||
Net income (loss) | $ (500) | $ 1,000 | |||
Add (deduct): | |||||
Interest expense, net | 3,500 | 4,500 | |||
Income tax expense (benefit) | - | 1,200 | |||
Depreciation and amortization | 27,500 | 30,000 | |||
Management fees | 700 | 800 | |||
Other expense | 800 | 1,500 | |||
Stock option expense | 3,000 | 4,000 | |||
Goodwill impairment | - | - | |||
Transaction expense | - | 2,000 | |||
Adjusted EBITDA | $ 35,000 | $ 45,000 | |||
Revenue | 155,000 | 170,000 | |||
Adjusted EBITDA Margin | 23 % | 26 % | |||
Drilling Tools International Corp. | ||||||
Reconciliation of Estimated Consolidated Net Income (Loss) to Adjusted Free Cash Flow | ||||||
(In thousands of | ||||||
(Unaudited) | ||||||
Twelve Months Ended December 31, 2026 | ||||||
Low | High | |||||
Net income (loss) | $ (500) | $ 1,000 | ||||
Add (deduct): | ||||||
Interest expense, net | 3,500 | 4,500 | ||||
Income tax expense (benefit) | - | 1,200 | ||||
Depreciation and amortization | 27,500 | 30,000 | ||||
Management fees | 700 | 800 | ||||
Other expense | 800 | 1,500 | ||||
Stock option expense | 3,000 | 4,000 | ||||
Goodwill impairment | - | - | ||||
Transaction expense | - | 2,000 | ||||
Capital expenditures | (18,000) | (23,000) | ||||
Adjusted Free Cash Flow | $ 17,000 | $ 22,000 | ||||
Adjusted Free Cash Flow Margin | 11 % | 13 % | ||||
View original content:https://www.prnewswire.com/news-releases/drilling-tools-international-corp-reports-2026-second-quarter-results-302845086.html
SOURCE Drilling Tools International Corp.