Stonegate Updates Coverage on NCS Multistage Holdings, Inc. (NCSM) 2025 Q4

Rhea-AI Summary

NCS Multistage Holdings (NASDAQ: NCSM) reported FY25 revenue of $183.6M, up 13% year-over-year, driven by U.S. fracturing systems, Repeat Precision, North Sea and Middle East activity, and a $5.2M contribution from ResMetrics after its July acquisition. Adj. EBITDA rose 20% to $26.7M, EBITDA margin expanded ~80 bps to 15%, adjusted gross margin held at 41%, and free cash flow after NCI nearly doubled to $18.9M. The company exits FY25 with a strong balance sheet supporting reinvestment, integration and tuck-in M&A flexibility.

Positive

• Revenue +13% to $183.6M in FY25
• Adj. EBITDA +20% to $26.7M
• Free cash flow after NCI nearly doubled to $18.9M
• EBITDA margin expanded ~80 bps to 15%
• ResMetrics added $5.2M contribution post-acquisition

Negative

• Service-mix pressure noted despite adjusted gross margin holding at 41%

Key Figures

FY25 revenue: $183.6M Revenue growth: 13% ResMetrics contribution: $5.2M +5 more

8 metrics

FY25 revenue $183.6M Full-year 2025 revenue, up year over year

Revenue growth 13% FY25 revenue growth versus prior year

ResMetrics contribution $5.2M FY25 revenue from ResMetrics after July acquisition

Ex-ResMetrics growth 10% FY25 revenue growth excluding ResMetrics

Adjusted EBITDA $26.7M FY25 adjusted EBITDA, up 20%

EBITDA margin 15% FY25 EBITDA margin after ~80 bps expansion

Adjusted gross margin 41% FY25 adjusted gross margin despite service-mix pressure

Free cash flow $18.9M FY25 free cash flow after non-controlling interest

Market Reality Check

Price: $48.35 Vol: Volume 31,730 is 4.26x th...

high vol

$48.35 Last Close

Volume Volume 31,730 is 4.26x the 20-day average of 7,442, signaling elevated interest ahead of/around this update. high

Technical Trading above 200-day MA at $37.73, sitting 17.23% below the 52-week high and 86.02% above the 52-week low.

Peers on Argus

NCSM gained 12.08% with strong volume while 4 tracked peers (e.g., DTI, RCON, LS...

4 Up

NCSM gained 12.08% with strong volume while 4 tracked peers (e.g., DTI, RCON, LSE, DWSN) also moved up, with a momentum scanner median move of 8.1%, indicating sector-wide strength rather than an isolated reaction.

Common Catalyst Peer strength appears driven by broader oilfield services momentum; no same-day peer-specific headlines were flagged.

Historical Context

5 past events · Latest: Mar 04 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Mar 04	FY25 earnings	Positive	+12.1%	Reported strong FY25 revenue, EBITDA growth and net income lift.
Feb 25	Earnings scheduling	Neutral	+3.0%	Announced timing and access details for Q4 2025 earnings call.
Nov 20	Investor conference	Neutral	+3.6%	Planned presentation and 1:1 meetings at Sidoti virtual conference.
Oct 30	Q3 coverage update	Positive	-1.7%	Stonegate update highlighting Q3 revenue growth and ResMetrics impact.
Oct 29	Q3 2025 earnings	Positive	-7.0%	Reported Q3 revenue growth, positive EPS and improved cash balance.

Pattern Detected

Positive operational/earnings news has often seen supportive reactions, though there is a history of occasional selloffs on strong quarterly results.

Recent Company History

Over the last several months, NCS Multistage has reported a series of improving fundamentals. The company posted Q3 2025 revenue of $46.5M and followed with strong FY 2025 results of $183.6M revenue and $26.7M adjusted EBITDA, plus a net cash position. Earnings releases on 10/29/2025 and the related Q3 update on 10/30/2025 saw negative price reactions, but the more recent full-year 2025 report on 03/04/2026 produced a notable 12.08% gain. Today’s Stonegate coverage update reiterates these FY25 strengths and execution themes.

Market Pulse Summary

This announcement reinforces that FY25 performance was driven by execution, with revenue up 13% to $...

Analysis

This announcement reinforces that FY25 performance was driven by execution, with revenue up 13% to $183.6M, adjusted EBITDA of $26.7M and free cash flow of $18.9M. Stonegate highlights share gains, product strength and the ResMetrics acquisition as key drivers. Historically, NCSM’s news flow has included both strong earnings and occasional post-earnings volatility, so investors may watch future quarters for sustained cash generation, margin stability and continued international traction.

Key Terms

adjusted EBITDA, free cash flow, asset-light model, fracturing systems, +1 more

5 terms

adjusted EBITDA financial

"adj EBITDA rose 20% to $26.7M, and EBITDA margin expanded"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

free cash flow financial

"Free cash flow after NCI nearly doubled to $18.9M"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

asset-light model financial

"reinforcing the benefits of the Company's asset-light model"

A business approach that avoids owning lots of factories, equipment or property and instead relies on partners, contractors or digital platforms to deliver products or services—think renting instead of buying the tools to build everything yourself. Investors care because this model usually requires less upfront cash and can scale faster, potentially boosting profit margins, but it also creates dependence on outside providers and more variable costs, which affects risk and future returns.

fracturing systems technical

"U.S. momentum in fracturing systems and Repeat Precision"

Fracturing systems are the equipment and methods used to create and hold open small cracks in underground rock so oil or natural gas can flow to a well more easily. Investors care because these systems determine how much product a well can produce, how fast revenue starts, and the costs and regulatory or environmental risks a company faces—much like choosing the right tools to clear and keep open a clogged pipe affects flow and repair bills.

M&A financial

"supporting continued reinvestment, integration execution, and tuck-in M&A flexibility"

M&A, short for mergers and acquisitions, involves one company combining with or purchasing another company to grow, streamline operations, or gain competitive advantages. For investors, M&A activity can signal potential for increased value, new opportunities, or changes in market dynamics, making it an important factor to watch in the business landscape.

AI-generated analysis. Not financial advice.

Dallas, Texas--(Newsfile Corp. - March 6, 2026) - NCS Multistage Holdings, Inc. (NASDAQ: NCSM): Stonegate Capital Partners Updates Coverage on NCS Multistage Holdings, Inc. (NASDAQ: NCSM). In FY25, NCSM grew revenue 13% to $183.6M despite a still-challenging activity backdrop, driven by product strength across regions, U.S. momentum in fracturing systems and Repeat Precision, continued traction in the North Sea and Middle East, and a $5.2M contribution from ResMetrics following the July acquisition. The quality of growth was solid with ex-ResMetrics revenue still increased 10%, adj EBITDA rose 20% to $26.7M, and EBITDA margin expanded ~80 bps to 15%, while adjusted gross margin held at 41% despite some service-mix pressure. Free cash flow after NCI nearly doubled to $18.9M, reinforcing the benefits of the Company's asset-light model and supporting the view that FY25 outperformance was driven more by share gains, product execution, and targeted expansion than by a stronger underlying market.

To view the full announcement, including downloadable images, bios, and more, click here.

Key Takeaways:

• FY25 outperformance reflected real execution, with share gains, product traction, and and incremental contribution from ResMetrics.
• 4Q25 materially outpaced expectations as U.S. fracturing demand accelerated and international markets stayed constructive.
• NCSM exits FY25 with a strong balance sheet, supporting continued reinvestment, integration execution, and tuck-in M&A flexibility.

Click image above to view full announcement.

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About Stonegate

Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking, equity research and capital raising for public and private companies.

Contacts:

Stonegate Capital Partners
(214) 987-4121
info@stonegateinc.com

Source: Stonegate, Inc.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/286492

FAQ

What drove NCSM's 13% revenue growth to $183.6M in FY25?

Growth was driven by product strength and regional momentum, especially U.S. fracturing systems and Repeat Precision. According to the company, international traction in the North Sea and Middle East plus a $5.2M ResMetrics contribution also supported the increase.

How did NCSM's profitability change in FY25 and what were key margins?

Adjusted EBITDA rose 20% to $26.7M and EBITDA margin expanded ~80 bps to 15%. According to the company, adjusted gross margin remained stable at 41% despite some service-mix pressure.

What was NCSM's free cash flow performance in FY25 and why does it matter?

Free cash flow after NCI nearly doubled to $18.9M, boosting financial flexibility. According to the company, this reinforces an asset-light model and supports reinvestment, integration activities, and tuck-in M&A optionality.

How did the ResMetrics acquisition affect NCSM's FY25 results?

ResMetrics contributed $5.2M to FY25 revenue following the July acquisition. According to the company, the incremental contribution aided top-line growth and complemented existing product traction across regions.

Does NCSM have balance sheet capacity to pursue further M&A after FY25?

Yes. NCSM exits FY25 with a strong balance sheet that management says supports continued reinvestment and tuck-in M&A flexibility. According to the company, cash flow strength underpins that capacity.