[10-Q] OIL STATES INTERNATIONAL, INC. Quarterly Earnings Report

Rhea-AI Filing Summary

PROS Holdings (NYSE: PRO) Q2 2025 Form 10-Q highlights

• Top-line growth: Total revenue rose 8% YoY to $88.7 million, driven by a 12% jump in subscription revenue to $73.3 million. Recurring revenue (subscription + maintenance) represented 86% of total sales.
• Margin expansion: Overall gross margin improved two points to 67%. Subscription gross margin reached 79% (up 1 ppt) due to cloud-infrastructure efficiency.
• Profitability trend: Net loss narrowed to $1.8 million (-$0.04 basic EPS) from $7.4 million (-$0.16). Operating loss was roughly flat at $7.6 million.
• Cash & liquidity: Cash and equivalents increased to $179.0 million from $162.0 million at year-end; operating cash flow turned positive at $4.4 million (vs. $1.8 million).
• Debt actions: Exchanged $186.9 million of 2.25% 2027 notes for new 2.5% 2030 notes and sold an additional $50 million of 2030 notes; recorded a $4.2 million extinguishment gain and purchased capped calls that effectively raise the conversion price to $30.34 per share.
• Balance sheet: Total assets $443.0 million; total liabilities $527.9 million; stockholders’ deficit widened to $84.9 million mainly from share-based compensation and capped-call premium.
• Retention & mix: Gross revenue retention remained above 93%; U.S. accounted for 36% of revenue, Europe 30%, Rest-of-World 34%.

Management cites continued macro uncertainty but notes improving subscription mix, higher gross margins and stronger cash generation as key progress toward profitability.

Positive

• Subscription revenue up 12% YoY, reinforcing shift to high-margin recurring model.
• Net loss reduced by 76% YoY and operating cash flow turned positive to $4.4 million.
• Debt maturity extended to 2030 with a $4.2 million gain on extinguishment, lessening near-term refinancing pressure.
• Gross margin expanded to 67% on cloud-delivery efficiencies.

Negative

• Company remains in stockholders’ deficit of $84.9 million.
• Share-based compensation high at $12 million (14% of revenue), diluting shareholders.
• Convertible issuance adds $50 million principal and slightly higher coupon (2.5%), increasing leverage.
• Still operating loss of $7.6 million; profitability not yet achieved.

Insights

Equity Research Analyst

TL;DR: Solid revenue growth, narrower loss, positive OCF; dilution risk from new converts offset by capped call.

Quarter shows PROS transitioning toward a SaaS-heavy model—subscription revenue +12% YoY now 83% of mix, supporting 79% segment margin. Net loss shrank by $5.6 million and operating cash turned positive, indicating operating leverage despite high SBC ($12 million this quarter). Debt exchange lengthens maturity profile to 2030 and removes >$185 million of 2027 paper; coupon rises 25 bps but capped call lifts effective conversion to $30.34, tempering dilution. However, shareholders’ deficit deepened and total liabilities exceed assets, so path to sustained GAAP profitability remains critical.

Credit Analyst

TL;DR: Refinancing enhances tenor, liquidity strong; leverage still high, equity deficit persists.

Liquidity headroom is comfortable: $179 million cash plus $50 million undrawn revolver versus $39 million lease liabilities through 2030. Exchange into 2.5% 2030 notes pushes weighted-average maturity to ~5 years, lowering near-term refinancing risk. Net debt/annualized revenue approximates 0.8×, acceptable for a recurring-revenue software issuer. Yet equity deficit of $85 million and ongoing operating losses constrain credit quality. Positive operating cash flow must sustain to cover ~ $6 million annual coupon and sizeable purchase commitments ($96 million through 2029). Overall impact rated modestly positive.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________

FORM 10-Q

____________________

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission file number: 001-16337

OIL STATES INTERNATIONAL, INC.

(Exact name of registrant as specified in its charter)

Delaware						76-0476605
(State or other jurisdiction of						(I.R.S. Employer
incorporation or organization)						Identification No.)
Three Allen Center, 333 Clay Street
Suite 4620						77002
Houston,			Texas			(Zip Code)
(Address of principal executive offices)

(713) 652-0582

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, par value $0.01 per share

OIS

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer

☐

Accelerated filer

☒

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

As of July 25, 2025, the number of shares of common stock outstanding was 60,592,651.

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

			Page
Part I – FINANCIAL INFORMATION
Item 1. Financial Statements:
Condensed Consolidated Financial Statements
Unaudited Consolidated Statements of Operations									3
Unaudited Consolidated Statements of Comprehensive Income (Loss)									4
Consolidated Balance Sheets									5
Unaudited Consolidated Statements of Stockholders’ Equity									6
Unaudited Consolidated Statements of Cash Flows									8
Notes to Unaudited Condensed Consolidated Financial Statements			9			–			20
Cautionary Statement Regarding Forward-Looking Statements			21			–			22
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			22			–			36
Item 3. Quantitative and Qualitative Disclosures About Market Risk									36
Item 4. Controls and Procedures									37
Part II – OTHER INFORMATION
Item 1. Legal Proceedings									38
Item 1A. Risk Factors									38
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds									38
Item 3. Defaults Upon Senior Securities									38
Item 4. Mine Safety Disclosures									38
Item 5. Other Information									39
Item 6. Exhibits									40
Signature Page									41

2

Table of Contents

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

PART I – FINANCIAL INFORMATION

ITEM 1. Financial Statements

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(In Thousands, Except Per Share Amounts)

			Three Months Ended June 30,												Six Months Ended June 30,
			2025						2024						2025						2024
Revenues:
Products			$	107,342					$	108,579					$	207,893					$	202,908
Services			58,064						77,804						117,451						150,737
			165,406						186,383						325,344						353,645
Costs and expenses:
Product costs			83,936						82,503						164,265						157,640
Service costs			41,404						59,530						83,752						116,344
Cost of revenues (exclusive of depreciation and amortization expense presented below)			125,340						142,033						248,017						273,984
Selling, general and administrative expense			22,981						26,373						45,511						48,869
Depreciation and amortization expense			11,898						14,698						23,923						28,893
Impairment of goodwill			—						—						—						10,000
Impairments of operating lease assets			1,358						—						1,358						—
Other operating (income) expense, net			(1,448)						1,234						(4,381)						1,031
			160,129						184,338						314,428						362,777
Operating income (loss)			5,277						2,045						10,916						(9,132)
Interest expense, net			(1,692)						(2,061)						(3,270)						(4,162)
Other income, net			636						652						774						580
Income (loss) before income taxes			4,221						636						8,420						(12,714)
Income tax benefit (provision)			(1,410)						665						(2,451)						641
Net income (loss)			$	2,811					$	1,301					$	5,969					$	(12,073)
Net income (loss) per share:
Basic			$	0.05					$	0.02					$	0.10					$	(0.19)
Diluted			0.05						0.02						0.10						(0.19)
Weighted average number of common shares outstanding:
Basic			59,154						62,483						59,661						62,493
Diluted			59,154						62,704						59,661						62,493

The accompanying notes are an integral part of these financial statements.

3

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In Thousands)

			Three Months Ended June 30,												Six Months Ended June 30,
			2025						2024						2025						2024
Net income (loss)			$	2,811					$	1,301					$	5,969					$	(12,073)
Other comprehensive income (loss):
Currency translation adjustments			9,092						(3,151)						14,631						(6,178)
Comprehensive income (loss)			$	11,903					$	(1,850)					$	20,600					$	(18,251)

The accompanying notes are an integral part of these financial statements.

4

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share Amounts)

			June 30, 2025						December 31, 2024
			(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents			$	53,858					$	65,363
Accounts receivable, net			196,706						194,336
Inventories, net			216,430						214,836
Prepaid expenses and other current assets			20,660						23,691
Total current assets			487,654						498,226
Property, plant, and equipment, net			273,674						266,871
Operating lease assets, net			17,799						19,537
Goodwill, net			70,751						69,709
Other intangible assets, net			118,714						125,862
Other noncurrent assets			25,153						24,903
Total assets			$	993,745					$	1,005,108
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt			$	108,813					$	633
Accounts payable			57,579						57,708
Accrued liabilities			35,351						36,861
Current operating lease liabilities			7,689						7,284
Income taxes payable			712						2,818
Deferred revenue			50,307						52,399
Total current liabilities			260,451						157,703
Long-term debt			1,916						124,654
Long-term operating lease liabilities			15,772						17,989
Deferred income taxes			6,534						5,350
Other noncurrent liabilities			18,434						18,758
Total liabilities			303,107						324,454
Stockholders’ equity:
Common stock, $.01 par value, 200,000,000 shares authorized, 80,623,166 shares and 78,605,848 shares issued, respectively			806						786
Additional paid-in capital			1,141,788						1,137,949
Retained earnings			279,629						273,660
Accumulated other comprehensive loss			(64,901)						(79,532)
Treasury stock, at cost, 20,013,495 and 17,112,853 shares, respectively			(666,684)						(652,209)
Total stockholders’ equity			690,638						680,654
Total liabilities and stockholders’ equity			$	993,745					$	1,005,108

The accompanying notes are an integral part of these financial statements.

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OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In Thousands)

Three Months Ended June 30, 2025			Common Stock						Additional Paid-In Capital						Retained Earnings						Accumulated Other Comprehensive Loss						Treasury Stock						Total Stockholders’ Equity
Balance, March 31, 2025			$	805					$	1,139,768					$	276,818					$	(73,993)					$	(659,987)					$	683,411
Net income			—						—						2,811						—						—						2,811
Currency translation adjustments (excluding intercompany advances)			—						—						—						7,205						—						7,205
Currency translation adjustments on intercompany advances			—						—						—						1,887						—						1,887
Stock-based compensation expense			1						2,020						—						—						—						2,021
Surrender of stock to settle taxes on stock awards			—						—						—						—						—						—
Stock repurchases			—						—						—						—						(6,697)						(6,697)
Balance, June 30, 2025			$	806					$	1,141,788					$	279,629					$	(64,901)					$	(666,684)					$	690,638

Six Months Ended June 30, 2025			Common Stock						Additional Paid-In Capital						Retained Earnings						Accumulated Other Comprehensive Loss						Treasury Stock						Total Stockholders' Equity
Balance, December 31, 2024			$	786					$	1,137,949					$	273,660					$	(79,532)					$	(652,209)					$	680,654
Net income			—						—						5,969						—						—						5,969
Currency translation adjustments (excluding intercompany advances)			—						—						—						10,541						—						10,541
Currency translation adjustments on intercompany advances			—						—						—						4,090						—						4,090
Stock-based compensation expense			20						3,839						—						—						—						3,859
Surrender of stock to settle taxes on stock awards			—						—						—						—						(2,432)						(2,432)
Stock repurchases			—						—						—						—						(12,043)						(12,043)
Balance, June 30, 2025			$	806					$	1,141,788					$	279,629					$	(64,901)					$	(666,684)					$	690,638

The accompanying notes are an integral part of these financial statements.

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OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In Thousands)

Three Months Ended June 30, 2024			Common Stock						Additional Paid-In Capital						Retained Earnings						Accumulated Other Comprehensive Loss						Treasury Stock						Total Stockholders’ Equity
Balance, March 31, 2024			$	785					$	1,130,979					$	271,544					$	(73,011)					$	(637,979)					$	692,318
Net income			—						—						1,301						—						—						1,301
Currency translation adjustments (excluding intercompany advances)			—						—						—						(79)						—						(79)
Currency translation adjustments on intercompany advances			—						—						—						(3,072)						—						(3,072)
Stock-based compensation expense			1						2,303						—						—						—						2,304
Surrender of stock to settle taxes on stock awards			—						—						—						—						(9)						(9)
Stock repurchases			—						—						—						—						(2,374)						(2,374)
Balance, June 30, 2024			$	786					$	1,133,282					$	272,845					$	(76,162)					$	(640,362)					$	690,389

Six Months Ended June 30, 2024			Common Stock						Additional Paid-In Capital						Retained Earnings						Accumulated Other Comprehensive Loss						Treasury Stock						Total Stockholders’ Equity
Balance, December 31, 2023			$	772					$	1,129,240					$	284,918					$	(69,984)					$	(635,401)					$	709,545
Net loss			—						—						(12,073)						—						—						(12,073)
Currency translation adjustments (excluding intercompany advances)			—						—						—						(974)						—						(974)
Currency translation adjustments on intercompany advances			—						—						—						(5,204)						—						(5,204)
Stock-based compensation expense			14						4,042						—						—						—						4,056
Surrender of stock to settle taxes on stock awards			—						—						—						—						(2,587)						(2,587)
Stock repurchases			—						—						—						—						(2,374)						(2,374)
Balance, June 30, 2024			$	786					$	1,133,282					$	272,845					$	(76,162)					$	(640,362)					$	690,389

The accompanying notes are an integral part of these financial statements.

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OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

			Six Months Ended June 30,
			2025						2024
Cash flows from operating activities:
Net income (loss)			$	5,969					$	(12,073)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization expense			23,923						28,893
Impairment of goodwill			—						10,000
Impairments of operating lease assets			1,358						—
Stock-based compensation expense			3,859						4,056
Amortization of deferred financing costs			660						841
Deferred income tax provision (benefit)			669						(2,299)
Gains on disposals of assets			(4,282)						(1,355)
Gains on extinguishment of convertible senior notes			(381)						(515)
Other, net			(1,423)						(379)
Changes in operating assets and liabilities, net of effect from acquired business:
Accounts receivable			2,601						(2,335)
Inventories			1,348						(16,436)
Accounts payable and accrued liabilities			(1,014)						(9,504)
Deferred revenue			(2,092)						(2,353)
Other operating assets and liabilities, net			(6,905)						2,341
Net cash flows provided by (used in) operating activities			24,290						(1,118)
Cash flows from investing activities:
Capital expenditures			(19,480)						(15,881)
Proceeds from disposition of property and equipment			4,217						2,472
Proceeds from disposition of assets held for sale			8,409						10,279
Other, net			(62)						(68)
Net cash flows used in investing activities			(6,916)						(3,198)
Cash flows from financing activities:
Revolving credit facility borrowings			204						22,619
Revolving credit facility repayments			(204)						(22,619)
Purchases of 4.75% convertible senior notes			(14,284)						(10,846)
Other debt and finance lease repayments			(344)						(318)
Payment of financing costs			(7)						(1,111)
Purchases of treasury stock			(12,043)						(2,374)
Shares added to treasury stock as a result of net share settlements due to vesting of stock awards			(2,432)						(2,587)
Net cash flows used in financing activities			(29,110)						(17,236)
Effect of exchange rate changes on cash and cash equivalents			231						(371)
Net change in cash and cash equivalents			(11,505)						(21,923)
Cash and cash equivalents, beginning of period			65,363						47,111
Cash and cash equivalents, end of period			$	53,858					$	25,188
Cash paid for:
Interest			$	3,628					$	3,899
Income taxes, net			3,660						1,346

The accompanying notes are an integral part of these financial statements.

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OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1.    Organization and Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of Oil States International, Inc. and its subsidiaries (the “Company”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial information. Certain information in footnote disclosures normally included with financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to these rules and regulations. The unaudited financial statements included in this report reflect all the adjustments, consisting of normal recurring adjustments, which the Company considers necessary for a fair statement of the results of operations for the interim periods covered and for the financial condition of the Company at the date of the interim balance sheet. Results for the interim periods are not necessarily indicative of results for the full year.

The preparation of condensed consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Examples of such estimates include, but are not limited to, goodwill and long-lived asset impairments, revenue and income recognized over time, valuation allowances recorded on deferred tax assets, reserves on inventory, allowances for doubtful accounts, settlement of litigation and potential future adjustments related to contractual indemnification and other agreements. Actual results could materially differ from those estimates.

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, which are adopted by the Company as of the specified effective date. Management believes that recently issued standards, which are not yet effective, will not have a material impact on the Company’s consolidated financial statements upon adoption.

The financial statements included in this report should be read in conjunction with the Company’s audited financial statements and accompanying notes included in its Annual Report on Form 10-K for the year ended December 31, 2024.

2.    Asset Impairments and Other Charges and Credits

Management has implemented certain cost reduction actions including: the consolidation, relocation and exit of certain operating locations; the exit of certain service offerings; reductions in the Company’s workforce in the United States; and the realignment in 2024 of operations within two of the Company’s reportable segments. The Company also incurred legal costs associated with patent defense and purchased a portion of its outstanding 4.75% convertible senior notes (the “2026 Notes”) at a discount. As a result of these events, actions and assessments, the Company recorded the following charges and credits during the three and six months ended June 30, 2025 and 2024 (in thousands):

			Offshore Manufactured Products						Completion and Production Services						Downhole Technologies						Corporate						Total
Three Months Ended June 30, 2025
Impairment of operating lease assets			$	—					$	403					$	955					$	—					$	1,358
Facility exit charges			273						1,776						252						—						2,301
Gains on extinguishment of debt			—						—						—						(381)						(381)
Pre-tax totals			$	273					$	2,179					$	1,207					$	(381)					3,278
Income tax benefit																											688
After-tax total																											$	2,590
Six Months Ended June 30, 2025
Impairment of operating lease assets			$	—					$	403					$	955					$	—					$	1,358
Facility exit charges			273						2,706						252						—						3,231
Gains on extinguishment of debt			—						—						—						(381)						(381)
Pre-tax totals			$	273					$	3,109					$	1,207					$	(381)					4,208
Income tax benefit																											884
After-tax total																											$	3,324

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

			Offshore Manufactured Products						Completion and Production Services						Downhole Technologies						Corporate						Total
Three Months Ended June 30, 2024
Impairment of goodwill			$	—					$	—					$	—					$	—					$	—
Facility consolidation and other charges			1,547						1,916						—						—						3,463
Patent defense costs			—						963						—						—						963
Gains on extinguishment of debt			—						—						—						(515)						(515)
Pre-tax totals			$	1,547					$	2,879					$	—					$	(515)					3,911
Income tax benefit																											821
After-tax total																											$	3,090
Six Months Ended June 30, 2024
Impairment of goodwill			$	—					$	—					$	10,000					$	—					$	10,000
Facility consolidation and other charges			3,010						2,601						—						—						5,611
Patent defense costs			—						1,324						—						—						1,324
Gains on extinguishment of debt			—						—						—						(515)						(515)
Pre-tax totals			$	3,010					3,925						10,000						$	(515)					16,420
Income tax benefit																											1,829
After-tax total																											$	14,591

Goodwill

The Company’s remaining goodwill exists in the Offshore Manufactured Products segment, totaling $70.8 million and $69.7 million, respectively, as of June 30, 2025 and December 31, 2024.

The Company does not amortize goodwill, but rather assesses goodwill for impairment annually and when an event occurs or circumstances change that indicate the carrying amounts may not be recoverable. If the carrying amount of a reporting unit exceeds its fair value, goodwill is considered impaired and an impairment loss is recorded.

Management uses a combination of valuation methodologies including the income approach and guideline public company comparables. The fair values of each of the Company’s reporting units were determined using significant unobservable inputs (Level 3 fair value measurements). The income approach estimates fair value by discounting the Company’s forecasts of future cash flows by a discount rate (expected return) that a market participant is expected to require on its investment.

Significant assumptions and estimates used in the income approach include, among others, estimated future net annual cash flows and discount rates for each reporting unit, current and anticipated market conditions, estimated growth rates and historical data. These estimates rely upon significant management judgment.

In the first quarter of 2024, certain short-cycle, consumable product operations historically reported within the Offshore Manufactured Products segment (legacy frac plug and elastomer products) were integrated into the Downhole Technologies segment to better align with the underlying activity demand drivers and current segment management structure, as well as provide for additional operational synergies. In connection with this realignment, goodwill of $10.0 million was reassigned from the Offshore Manufactured Products segment to the Downhole Technologies segment based on estimated relative fair values. The Company performed an interim quantitative assessment of goodwill recorded within the Offshore Manufactured Products segment as of February 29, 2024 (prior to realignment) which indicated that the fair value of the reporting unit exceeded its carrying value.

The Company also performed an interim quantitative assessment of goodwill transferred to the Downhole Technologies segment (subsequent to the realignment). This interim assessment indicated that the fair value of the reporting unit was less than its carrying amount and the Company concluded that goodwill reassigned to the Downhole Technologies business was fully impaired. The Company therefore recognized a non-cash goodwill impairment charge totaling $10.0 million in the first quarter of 2024.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

3.    Details of Selected Balance Sheet Accounts

Additional information regarding selected balance sheet accounts as of June 30, 2025 and December 31, 2024 is presented below (in thousands):

			June 30, 2025						December 31, 2024
Accounts receivable, net:
Trade			$	116,960					$	128,167
Unbilled revenue			17,467						22,242
Contract assets			58,027						40,101
Other			7,252						6,440
Total accounts receivable			199,706						196,950
Allowance for doubtful accounts			(3,000)						(2,614)
			$	196,706					$	194,336
Allowance for doubtful accounts as a percentage of total accounts receivable			2		%				1		%

			June 30, 2025						December 31, 2024
Deferred revenue (contract liabilities)			$	50,307					$	52,399

As of June 30, 2025, accounts receivable, net in the United States and the United Kingdom represented 58% and 20%, respectively, of the total. No other country or single customer accounted for more than 10% of the Company’s total accounts receivable as of June 30, 2025.

For the six months ended June 30, 2025, the $17.9 million net increase in contract assets was primarily attributable to $38.3 million in revenue recognized during the period, which was partially offset by $20.4 million transferred to accounts receivable. Deferred revenue (contract liabilities) decreased by $2.1 million in the first six months of 2025, primarily reflecting the recognition of $23.7 million of revenue that was deferred at the beginning of the period, partially offset by $20.2 million in new customer billings which were not recognized as revenue during the period.

The following provides a summary of activity in the allowance for doubtful accounts for the six months ended June 30, 2025 and 2024 (in thousands):

			Six Months Ended June 30,
			2025						2024
Allowance for doubtful accounts – January 1			$	2,614					$	4,497
Provisions			99						135
Write-offs			(42)						(655)
Other			329						(9)
Allowance for doubtful accounts – June 30			$	3,000					$	3,968

			June 30, 2025						December 31, 2024
Inventories, net:
Finished goods and purchased products			$	111,022					$	110,850
Work in process			36,342						34,539
Raw materials			106,765						108,421
Total inventories			254,129						253,810
Allowance for excess or obsolete inventory			(37,699)						(38,974)
			$	216,430					$	214,836

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

									June 30, 2025						December 31, 2024
Property, plant and equipment, net:
Property, plant and equipment						$	754,482					$	734,548
Accumulated depreciation						(480,808)						(467,677)
																					$	273,674					$	266,871

For the three months ended June 30, 2025 and 2024, depreciation expense was $8.1 million and $10.4 million, respectively. Depreciation expense was $16.4 million and $20.3 million, respectively, for the six months ended June 30, 2025 and 2024.

			June 30, 2025																		December 31, 2024
			Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount						Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount
Other intangible assets:
Customer relationships			$	123,132					$	59,303					$	63,829					$	122,859					$	55,534					$	67,325
Patents/Technology/Know-how			70,437						42,315						28,122						70,206						39,699						30,507
Tradenames and other			47,758						20,995						26,763						47,729						19,699						28,030
			$	241,327					$	122,613					$	118,714					$	240,794					$	114,932					$	125,862

For the three months ended June 30, 2025 and 2024, amortization expense was $3.8 million and $4.3 million, respectively. Amortization expense was $7.6 million and $8.5 million for the six months ended June 30, 2025 and 2024, respectively.

			June 30, 2025						December 31, 2024
Other noncurrent assets:
Deferred compensation plan			$	18,076					$	18,245
Deferred financing costs			1,350						1,619
Deferred income taxes			2,264						1,964
Other			3,463						3,075
			$	25,153					$	24,903

			June 30, 2025						December 31, 2024
Accrued liabilities:
Accrued compensation			$	17,138					$	22,350
Accrued taxes, other than income taxes			3,315						1,234
Insurance liabilities			3,303						3,383
Accrued interest			1,376						1,555
Accrued commissions			3,191						3,237
Other			7,028						5,102
			$	35,351					$	36,861

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

4.    Long-term Debt

As of June 30, 2025 and December 31, 2024, long-term debt consisted of the following (in thousands):

			June 30, 2025						December 31, 2024
Revolving credit facility(1)			$	—					$	—
2026 Notes(2)			108,222						122,505
Other debt and finance lease obligations			2,507						2,782
Total debt			110,729						125,287
Less: Current portion			(108,813)						(633)
Total long-term debt			$	1,916					$	124,654

____________________

(1)Unamortized deferred financing costs of $1.4 million and $1.6 million as of June 30, 2025 and December 31, 2024, respectively, are presented in other noncurrent assets.

(2)The outstanding principal amount of the 2026 Notes was $108.8 million as of June 30, 2025 and $123.5 million as of December 31, 2024.

Revolving Credit Facility

Through July 27, 2025

The Company has a senior secured credit facility, which provides for an asset-based revolving credit facility (the “ABL Facility”), under which credit availability is subject to a borrowing base calculation.

The ABL Facility is governed by a credit agreement, with Wells Fargo Bank, National Association, as administrative agent and the lenders and other financial institutions from time to time party thereto (as amended, the “ABL Agreement”). The ABL Facility matures on February 16, 2028, with a springing maturity 91 days prior to the stated maturity of any outstanding indebtedness with an outstanding principal balance equal to or greater than $17.5 million.

The ABL Agreement provides funding based on a borrowing base calculation that includes eligible U.S. customer accounts receivable and inventory and, prior to July 28, 2025, provided for aggregate lender commitments of $125.0 million, including a $50.0 million sub-limit for the issuance of letters of credit. Borrowings under the ABL Agreement are secured by a pledge of substantially all of the Company’s domestic assets (other than real property) and the stock of certain foreign subsidiaries.

Borrowings under the ABL Agreement bear interest at a rate equal to the Secured Overnight Financing Rate (“SOFR”) (subject to a floor rate of 0%) plus, prior to July 28, 2025, a margin of 2.75% to 3.25%, or at a base rate plus a margin of 1.75% to 2.25%, in each case based on average borrowing availability. Monthly, the Company must also pay a commitment fee of either 0.375% or 0.50% per annum, based on average unused commitments under the ABL Agreement.

The ABL Agreement places restrictions on the Company’s ability to incur additional indebtedness, grant liens on assets, pay dividends or make distributions on equity interests, dispose of assets, make investments, repay other indebtedness (including the 2026 Notes discussed below), engage in mergers, and other matters, in each case, subject to certain exceptions. The ABL Agreement contains customary default provisions, which, if triggered, could result in acceleration of repayment of all amounts then outstanding. The ABL Agreement also requires the Company to satisfy and maintain a fixed charge coverage ratio of not less than 1.0 to 1.0 (i) in the event that availability under the ABL Agreement is less than the greater of (a) 15% of the “line cap” (which is the lesser of the maximum revolver amount and the borrowing base) and prior to July 28, 2025, (b) approximately $14.1 million; (ii) to complete certain specified transactions; or (iii) if an event of default has occurred and is continuing.

As of June 30, 2025, the Company had no borrowings outstanding under the ABL Agreement and $17.1 million of outstanding letters of credit. The total amount available to be drawn as of June 30, 2025 was $59.3 million, calculated based on the then-current borrowing base less outstanding borrowings, if any, and letters of credit. As of June 30, 2025, the Company was in compliance with its debt covenants under the ABL Agreement.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

Effective July 28, 2025

On July 28, 2025, the ABL Agreement was amended to increase advance rates, lower interest charges and plan for the retirement of all 2026 Notes that remain outstanding at maturity in April of 2026. The following provides a summary of the more significant modifications to the ABL Agreement:

Through July 27, 2025

Effective July 28, 2025

Lender commitments

$125.0 million

$100.0 million

Maturity

Earlier of (i) February 16, 2028 and (ii) 91 days prior to the stated maturity of any outstanding indebtedness with an outstanding principal balance equal to or greater than $17.5 million

Earlier of (i) February 16, 2028 and (ii) 91 days prior to the stated maturity of any outstanding indebtedness with an outstanding principal balance equal or greater than $17.5 million, unless as of such date such indebtedness has been refinanced, defeased or adequately reserved for (either against the borrowing base or the maximum revolver amount) or escrowed or cash collateralized in a deposit account.

Interest rate on outstanding borrowings:

SOFR based borrowings

SOFR plus a margin of 2.75% to 3.25%

SOFR plus a margin of 2.25% to 2.75%

Base-rate borrowings

Base rate plus a margin of 1.75% to 2.25%

Base rate plus a margin of 1.25% to 1.75%

Letter of credit sublimit

$50.0 million

$25.0 million

Maintenance covenant:

Fixed charge coverage ratio of not less than 1.0 to 1.0

(i) in the event that availability under the ABL Agreement is less than the greater of (a) 15% of the line cap and (b) approximately $14.1 million

(i) in the event that availability under the ABL Agreement is less than the greater of (a) 15% of the line cap and (b) approximately $11.3 million

2026 Notes

The Company issued $135.0 million aggregate principal amount of its 4.75% convertible senior notes due 2026 pursuant to an indenture, dated as of March 19, 2021 (the “2026 Indenture”), between the Company and Computershare Trust Company, National Association, as successor trustee.

The following table provides a summary of the Company's purchases of outstanding 2026 Notes during the three and six months ended June 30, 2025 and 2024, with non-cash gains reported within other income, net (in thousands):

			Principal Amount						Carrying Value of Liability						Cash Paid						Non-cash Pre-tax Gains Recognized
Three and Six Months Ended June 30, 2025			$	14,750					$	14,665					$	14,284					$	381
Three and Six Months Ended June 30, 2024			11,500						11,361						10,846						515

The outstanding 2026 Notes bear interest at a rate of 4.75% per year and will mature on April 1, 2026, unless earlier repurchased, redeemed or converted. Interest is payable semi-annually in arrears on April 1 and October 1 of each year. Additional interest and special interest may accrue on the 2026 Notes under certain circumstances as described in the 2026 Indenture. The initial conversion rate is 95.3516 shares of the Company’s common stock per $1,000 principal amount of the 2026 Notes (equivalent to an initial conversion price of $10.49 per share of common stock). The conversion rate, and thus the conversion price, may be adjusted under certain circumstances as described in the 2026 Indenture. The Company’s intent is to repay the principal amount of the 2026 Notes in cash and settle the conversion feature (if any) in shares of the Company’s common stock. As of June 30, 2025, none of the conditions allowing holders of the 2026 Notes to convert, or requiring the Company to repurchase the 2026 Notes, had been met.

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OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

5.    Fair Value Measurements

The Company’s financial instruments consist of cash and cash equivalents, investments, receivables, payables and debt instruments. The Company believes that the carrying values of these instruments, other than the 2026 Notes, on the accompanying consolidated balance sheets approximate their fair values. The estimated fair value of the 2026 Notes as of June 30, 2025 was $107.9 million based on quoted market prices (a Level 2 fair value measurement), which compares to the principal amount of $108.8 million.

6.    Stockholders’ Equity

Common and Preferred Stock

The following table provides details with respect to the changes to the number of shares of common stock, $0.01 par value, outstanding during the first six months of 2025 (in thousands):

Shares of common stock outstanding – December 31, 2024															61,493
Restricted stock awards, net of forfeitures															2,017
Shares withheld for taxes on vesting of stock awards															(457)
Purchases of treasury stock															(2,443)
Shares of common stock outstanding – June 30, 2025															60,610

As of June 30, 2025 and December 31, 2024, the Company had 25,000,000 shares of preferred stock, $0.01 par value, authorized, with no shares issued or outstanding.

In October 2024, the Company’s Board of Directors terminated the Company’s existing common stock repurchase program and replaced it with a new $50.0 million authorization for the repurchase of the Company’s common stock, par value $0.01 per share, through October 2026. Subject to applicable securities laws, such purchases will be at such times and in such amounts as the Company deems appropriate.

During the six months ended June 30, 2025, the Company purchased 2.4 million shares of common stock under the program at a total cost of $12.0 million. The amount remaining under the Company’s share repurchase authorization as of June 30, 2025 was $29.3 million.

Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss, reported as a component of stockholders’ equity, primarily relates to fluctuations in currency exchange rates against the U.S. dollar as used to translate certain of the international operations of the Company’s operating segments. Accumulated other comprehensive loss decreased from $79.5 million at December 31, 2024 to $64.9 million at June 30, 2025. For the three and six months ended June 30, 2025 and 2024, currency translation adjustments recognized as a component of other comprehensive income (loss) were primarily attributable to the United Kingdom and Brazil.

During the six months ended June 30, 2025, the exchange rates for the British pound and the Brazilian real strengthened by 9% and 13%, respectively, compared to the U.S. dollar, contributing to other comprehensive income of $14.6 million. During the six months ended June 30, 2024, the exchange rates for the British pound and the Brazilian real weakened by 1% and 12%, respectively, compared to the U.S. dollar, contributing to other comprehensive loss of $6.2 million.

7.    Income Taxes

Income tax benefit (provision) for the three and six months ended June 30, 2025 and 2024 was calculated using a discrete approach. This methodology was used because changes in the Company’s results of operations and non-deductible expenses can materially impact the estimated annual effective tax rate.

For the three months ended June 30, 2025, the Company’s income tax expense was $1.4 million, which included adjustments to valuation allowances recorded against deferred tax assets, certain discrete tax items and other non-deductible expenses, on pre-tax income of $4.2 million. This compares to an income tax benefit of $0.7 million, which included adjustments to valuation allowances recorded against deferred tax assets and certain non-deductible expenses, on pre-tax income of $0.6 million for the three months ended June 30, 2024.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

For the six months ended June 30, 2025, the Company’s income tax expense was $2.5 million, which included the impact of certain discrete tax items and other non-deductible expenses, on pre-tax income of $8.4 million. This compares to an income tax benefit of $0.6 million, which included the impact of a goodwill impairment charge, other non-deductible expenses and adjustments to valuation allowances recorded against deferred tax assets, on a pre-tax loss of $12.7 million for the six months ended June 30, 2024.

On July 4, 2025, the United States enacted tax reform legislation which resulted in changes to U.S. tax and related law, including certain key federal income tax provisions applicable to multinational companies such as Oil States. These include, among others: the reinstatement of 100% bonus depreciation election for investments in qualifying property; the immediate deduction of domestic research and development expenditures; and manufacturing tax incentives related to goods sold outside the United States. While the Company continues to evaluate these new laws and regulations, it does not expect they will have a material impact on its consolidated financial position or results of operations.

8.    Net Income (Loss) Per Share

The table below provides a reconciliation of the numerators and denominators of basic and diluted net income (loss) per share for the three and six months ended June 30, 2025 and 2024 (in thousands, except per share amounts):

			Three Months Ended June 30,												Six Months Ended June 30,
			2025						2024						2025						2024
Numerators:
Net income (loss)			$	2,811					$	1,301					$	5,969					$	(12,073)
Less: Income attributable to unvested restricted stock awards			(103)						(31)						(218)						—
Numerator for basic net income (loss) per share			2,708						1,270						5,751						(12,073)
Effect of dilutive securities:
Unvested restricted stock awards			—						—						—						—
Numerator for diluted net income (loss) per share			$	2,708					$	1,270					$	5,751					$	(12,073)
Denominators:
Weighted average number of common shares outstanding			61,408						64,025						61,729						63,954
Less: Weighted average number of unvested restricted stock awards outstanding			(2,254)						(1,542)						(2,068)						(1,461)
Denominator for basic net income (loss) per share			59,154						62,483						59,661						62,493
Effect of dilutive securities:
Performance share units			—						221						—						—
Denominator for diluted net income (loss) per share			59,154						62,704						59,661						62,493
Net income (loss) per share:
Basic			$	0.05					$	0.02					$	0.10					$	(0.19)
Diluted			0.05						0.02						0.10						(0.19)

Shares issuable upon conversion of the Company’s 2026 Notes were excluded from each period due to, among other factors, the Company’s share price.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

9.    Long-Term Incentive Compensation

The following table presents a summary of activity for service-based restricted stock and stock unit awards, and performance-based stock unit awards for the six months ended June 30, 2025 (in thousands):

			Service-based Restricted Stock						Performance- and Service-based Stock Units
Outstanding – December 31, 2024			1,513						1,033
Granted			1,568						297
Vested and distributed			(803)						(467)
Forfeited			(18)						—
Outstanding – June 30, 2025			2,260						863
Weighted average grant date fair value (2025 awards)			$	5.31					$	5.31

The restricted stock program consists of a combination of service-based restricted stock and stock units, as well as performance-based stock units. Service-based restricted stock awards vest on a straight-line basis over a term of three years. Service-based stock unit awards (180 thousand outstanding as of June 30, 2025) vest over one year, with the underlying shares issued at a specified future date. Performance-based stock unit awards vest at the end of a three-year period, with the number of shares ultimately issued under the program dependent upon achievement of predefined specific performance objectives based on the Company’s cumulative EBITDA over a three-year period.

In the event the predefined targets are exceeded for any performance-based award, additional shares up to a maximum of 200% of the target award may be granted. Conversely, if actual performance falls below the predefined target, the number of shares vested is reduced. If the actual performance falls below the threshold performance level, no shares will vest.

The Company issued conditional long-term cash incentive awards (“Cash Awards”) with targeted values of $1.4 million and $1.5 million in the first quarters of 2025 and 2024, respectively. The performance measure for each of these Cash Awards is relative total stockholder return compared to a peer group of companies over a three-year period. The ultimate dollar amount to be awarded for each annual grant may range from zero to a maximum of $2.9 million for 2025 awards and from zero to a maximum of $3.1 million for 2024 awards, limited to their targeted value if the Company’s total stockholder return were to be negative over the performance period. Obligations related to the Cash Awards are classified as liabilities and recognized over their respective vesting periods.

Stock-based compensation expense recognized during the three and six months ended June 30, 2025 totaled $2.0 million and $3.9 million, respectively. Stock-based compensation expense recognized during the three and six months ended June 30, 2024 totaled $2.3 million and $4.1 million, respectively. As of June 30, 2025, there was $12.9 million of pre-tax compensation costs related to service-based and performance-based stock awards, which will be recognized in future periods as vesting conditions are satisfied.

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OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

10.    Segments and Related Information

The Company operates through three operating segments: Offshore Manufactured Products, Completion and Production Services and Downhole Technologies. Financial information by operating segment as of and for the three and six months ended June 30, 2025 and 2024 is summarized in the following tables (in thousands).

			Three Months Ended June 30, 2025
			Offshore Manufactured Products(1)						Completion and Production Services(2)						Downhole Technologies(3)						Corporate						Total
Revenues			$	106,586					$	29,424					$	29,396					$	—					$	165,406
Costs and expenses:
Cost of revenues (exclusive of depreciation and amortization expense presented below)			75,304						23,593						26,443						—						125,340
Selling, general and administrative expense			9,475						2,017						1,999						9,490						22,981
Depreciation and amortization expense			3,703						4,083						4,005						107						11,898
Impairments of operating lease assets			—						403						955						—						1,358
Other operating (income) loss, net			1,115						(2,549)						(14)						—						(1,448)
			89,597						27,547						33,388						9,597						160,129
Operating income (loss)			$	16,989					$	1,877					$	(3,992)					$	(9,597)					$	5,277
Capital expenditures			$	8,003					$	1,825					$	428					$	66					$	10,322

________________

(1)Operating income included charges of $0.3 million primarily associated with the consolidation and relocation of certain manufacturing and service locations.

(2)Operating income included $2.2 million of facility exit and other charges.

(3)Operating loss included $1.2 million in costs associated primarily with the exit of a leased facility.

			Six Months Ended June 30, 2025
			Offshore Manufactured Products(1)						Completion and Production Services(2)						Downhole Technologies(3)						Corporate						Total
Revenues			$	199,182					$	63,943					$	62,219					$	—					$	325,344
Costs and expenses:
Cost of revenues (exclusive of depreciation and amortization expense presented below)			142,219						50,498						55,300						—						248,017
Selling, general and administrative expense			18,110						4,013						3,998						19,390						45,511
Depreciation and amortization expense			7,311						8,355						8,034						223						23,923
Impairments of operating lease assets			—						403						955						—						1,358
Other operating (income) loss, net			277						(4,706)						48						—						(4,381)
			167,917						58,563						68,335						19,613						314,428
Operating income (loss)			$	31,265					$	5,380					$	(6,116)					$	(19,613)					$	10,916
Capital expenditures			$	12,826					$	5,350					$	1,219					$	85					$	19,480
Total assets (as of June 30, 2025)			$	532,179					$	134,031					$	262,758					$	64,777					$	993,745

________________

(1)Operating income included charges of $0.3 million primarily associated with the consolidation and relocation of certain manufacturing and service locations.

(2)Operating income included $3.1 million of facility exit and other charges.

(3)Operating loss included $1.2 million in costs associated primarily with the exit of a leased facility.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

			Three Months Ended June 30, 2024
			Offshore Manufactured Products(1)						Completion and Production Services(2)						Downhole Technologies						Corporate						Total
Revenues			$	101,556					$	46,421					$	38,406					$	—					$	186,383
Costs and expenses:
Cost of revenues (exclusive of depreciation and amortization expense presented below)			71,236						37,895						32,902						—						142,033
Selling, general and administrative expense			10,400						3,083						2,403						10,487						26,373
Depreciation and amortization expense			4,247						6,047						4,255						149						14,698
Impairment of goodwill			—						—						—						—						—
Other operating (income) loss, net			1,316						(69)						(13)						—						1,234
			87,199						46,956						39,547						10,636						184,338
Operating income (loss)			$	14,357					$	(535)					$	(1,141)					$	(10,636)					$	2,045
Capital expenditures			$	1,552					$	3,918					$	310					$	9					$	5,789

________________

(1)Operating income included $1.5 million of facility consolidation charges.

(2)Operating loss included $2.9 million of facility consolidation and other charges.

			Six Months Ended June 30, 2024
			Offshore Manufactured Products(1)						Completion and Production Services(2)						Downhole Technologies(3)						Corporate						Total
Revenues			$	188,413					$	93,713					$	71,519					$	—					$	353,645
Costs and expenses:
Cost of revenues (exclusive of depreciation and amortization expense presented below)			134,737						77,709						61,538						—						273,984
Selling, general and administrative expense			18,958						5,609						4,686						19,616						48,869
Depreciation and amortization expense			7,940						12,126						8,525						302						28,893
Impairment of goodwill			—						—						10,000						—						10,000
Other operating (income) loss, net			1,818						(777)						(10)						—						1,031
			163,453						94,667						84,739						19,918						362,777
Operating income (loss)			$	24,960					$	(954)					$	(13,220)					$	(19,918)					$	(9,132)
Capital expenditures			$	8,773					$	6,332					$	756					$	20					$	15,881
Total assets (as of June 30, 2024)			$	502,582					$	177,098					$	279,947					$	41,551					$	1,001,178

________________

(1)Operating income included $3.0 million of facility consolidation charges.

(2)Operating loss included $3.9 million in facility consolidation and other charges.

(3)Operating loss included a $10.0 million non-cash goodwill impairment charge.

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OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

The following tables provide supplemental disaggregated revenue from contracts with customers by operating segment for the three and six months ended June 30, 2025 and 2024 (in thousands):

			Offshore Manufactured Products												Completion and Production Services												Downhole Technologies												Total
			2025						2024						2025						2024						2025						2024						2025						2024
Three Months Ended June 30
Project-driven:
Products			$	68,653					$	59,752					$	—					$	—					$	—					$	—					$	68,653					$	59,752
Services			27,907						31,024						—						—						—						—						27,907						31,024
Total project-driven			96,560						90,776						—						—						—						—						96,560						90,776
Military and other products			10,026						10,780						—						—						—						—						10,026						10,780
Short-cycle products and services			—						—						29,424						46,421						29,396						38,406						58,820						84,827
			$	106,586					$	101,556					$	29,424					$	46,421					$	29,396					$	38,406					$	165,406					$	186,383

			Offshore Manufactured Products												Completion and Production Services												Downhole Technologies												Total
			2025						2024						2025						2024						2025						2024						2025						2024
Six Months Ended June 30
Project-driven:
Products			$	127,777					$	112,889					$	—					$	—					$	—					$	—					$	127,777					$	112,889
Services			52,331						56,257						—						—						—						—						52,331						56,257
Total project-driven			180,108						169,146						—						—						—						—						180,108						169,146
Military and other products			19,074						19,267						—						—						—						—						19,074						19,267
Short-cycle products and services			—						—						63,943						93,713						62,219						71,519						126,162						165,232
			$	199,182					$	188,413					$	63,943					$	93,713					$	62,219					$	71,519					$	325,344					$	353,645

Revenues from products and services transferred to customers over time accounted for approximately 63% and 66% of consolidated revenues for the six months ended June 30, 2025 and 2024, respectively. The balance of revenues for the respective periods relates to products and services transferred to customers at a point in time. As of June 30, 2025, the Company had $260 million of remaining backlog related to contracts with an original expected duration of greater than one year. Approximately 38% of this remaining backlog is expected to be recognized as revenue over the remaining six months of 2025, with an additional 36% recognized in 2026 and the balance thereafter.

11.    Commitments and Contingencies

The Company is a party to various pending or threatened claims, lawsuits and administrative proceedings seeking damages or other remedies concerning its commercial operations, products, employees and other matters. Although the Company can give no assurance about the outcome of pending legal and administrative proceedings and the effect such outcomes may have on the Company, management believes that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise covered by insurance, will not have a material adverse effect on the Company’s consolidated financial position, results of operations or liquidity.

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Cautionary Statement Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q and other statements we make contain certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”). Actual results could differ materially from those projected in the forward-looking statements as a result of a number of important factors, including incorrect or changed assumptions. For a discussion of known material factors that could affect our results, please refer to “Part I, Item 1. Business,” “Part I, Item 1A. Risk Factors,” “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Part II, Item 7A. Quantitative and Qualitative Disclosures about Market Risk” included in our 2024 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 21, 2025.

You can typically identify “forward-looking statements” by the use of forward-looking words such as “may,” “will,” “could,” “project,” “believe,” “anticipate,” “expect,” “estimate,” “potential,” “plan,” “forecast,” “proposed,” “should,” “seek,” and other similar words. Such statements may relate to our future financial position, budgets, capital expenditures, projected costs, plans and objectives of management for future operations and possible future strategic transactions. Actual results frequently differ from assumed facts and such differences can be material, depending upon the circumstances.

While we believe we are providing forward-looking statements expressed in good faith and on a reasonable basis, there can be no assurance that actual results will not differ from such forward-looking statements. The following are important factors that could cause actual results to differ materially from those expressed in any forward-looking statement made by, or on behalf of, us:

•the impact of changes in tariffs and duties on imported materials and exported finished goods;

•the ability and willingness of the Organization of Petroleum Exporting Countries and other producing nations (“OPEC+”) to set and maintain oil production levels and pricing;

•the level of supply of and demand for oil and natural gas;

•fluctuations in the current and future prices of oil and natural gas;

•the level of exploration, drilling and completion activity;

•the cyclical nature of the oil and natural gas industry;

•the level of offshore oil and natural gas developmental activities;

•inflation, including our ability to increase prices to our customers as our costs increase;

•the impact of disruptions in the bank and capital markets;

•the financial health of our customers;

•the impact of the ongoing military actions in Europe and the Middle East, or any similar future military actions or unrest, including, but not limited to, energy market disruptions, supply chain disruptions and increased costs, government sanctions, and delays or potential cancellation of planned customer projects;

•the impact of environmental matters, including executive actions and federal, state and local regulatory or legislative efforts to adopt environmental or climate change regulations that may result in increased operating costs or reduced oil and natural gas production or demand globally, such as previous attempts to prohibit or otherwise limit new exports of liquefied natural gas (“LNG”), hydraulic fracturing, and lease development;

•political, economic and litigation efforts to restrict or eliminate certain oil and natural gas exploration, development and production activities due to concerns over the threat of climate change;

•the availability of and access to attractive oil and natural gas field prospects, which may be affected by governmental actions or actions of other parties restricting drilling and completion activities;

•general global economic conditions;

•global weather conditions and natural disasters, including hurricanes in the Gulf of America (formerly named the Gulf of Mexico);

•changes in tax laws and regulations as well as volatility in the political, legal and regulatory environments in connection with the new U.S. presidential administration; including changes such as the One Big Beautiful Bill Act (the “OBBBA”);

•supply chain disruptions, including as a result of the adoption of or increase in tariffs, or the threat thereof;

•our ability to timely obtain and maintain critical permits for operating facilities;

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•our ability to attract and retain skilled personnel;

•our ability to develop new competitive technologies and products;

•fluctuations in currency exchange rates;

•physical, digital, cyber, internal and external security breaches and other incidents affecting information security and data privacy;

•the cost of capital in the bank and capital markets and our ability to access them;

•our ability to protect and enforce our intellectual property rights;

•negative outcome of litigation, threatened litigation or government proceedings;

•the potential for future federal or state requirements related to the enhanced disclosure of a range of climate-related information and risks;

•our ability to complete the integration of acquired businesses and achieve the expected accretion in earnings; and

•the other factors identified in “Part I, Item 1A. Risk Factors” in our 2024 Annual Report on Form 10-K, as well as in “Part II, Item 1A. Risk Factors” included in this Quarterly Report on Form 10-Q.

Should one or more of these risks or uncertainties materialize, or should the assumptions on which our forward-looking statements are based prove incorrect or change, actual results may differ materially from those expected, estimated or projected. In addition, the factors identified above may not necessarily be all of the important factors that could cause actual results to differ materially from those expressed in any forward-looking statement made by us, or on our behalf. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no responsibility to publicly release the result of any revision of our forward-looking statements after the date they are made.

In addition, in certain places in this Quarterly Report on Form 10-Q, we refer to information and reports published by third parties that purport to describe trends or developments in the energy industry. We do so for the convenience of our stockholders and in an effort to provide information available in the market that will assist our investors in better understanding the market environment in which we operate. However, we specifically disclaim any responsibility for the accuracy and completeness of such information and undertake no obligation to update such information.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read together with our condensed consolidated financial statements and notes to those statements included elsewhere in this Quarterly Report on Form 10-Q and our consolidated financial statements and notes to those statements included in our 2024 Annual Report on Form 10-K in order to understand factors, such as charges and credits, financing transactions and changes in tax regulations, which may impact comparability from period to period.

We provide a broad range of manufactured products and services to customers in the energy, industrial and military sectors through our Offshore Manufactured Products, Completion and Production Services and Downhole Technologies segments. Demand for our products and services is cyclical and substantially dependent upon activity levels in the oil and gas industry, particularly our customers’ willingness to invest capital in the exploration for and development of crude oil and natural gas reserves. Our customers’ capital spending programs are generally based on their cash flows and their outlook for near-term and long-term commodity prices, making demand for our products and services sensitive to expectations regarding future crude oil and natural gas prices, as well as economic growth, commodity demand and estimates of resource production and regulatory pressures.

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Recent Developments

Brent and West Texas Intermediate (“WTI”) crude oil and natural gas pricing trends were as follows:

						Average Price(1) for quarter ended																								Average Price(1) for year ended December 31
Year						March 31						June 30						September 30						December 31
Brent Crude (per bbl)
2025						$	75.87					$	68.07
2024						82.92						$	84.68					$	80.01					$	74.66					$	80.52
WTI Crude (per bbl)
2025						$	71.78					$	64.57
2024						77.50						$	81.81					$	76.43					$	70.73					$	76.61
Henry Hub Natural Gas (per MMBtu)
2025						$	4.14					$	3.19
2024						2.15						$	2.07					$	2.11					$	2.44					$	2.19

________________

(1)Source: U.S. Energy Information Administration (spot prices).

The average spot price of WTI crude oil declined 10% in the second quarter of 2025 following to the imposition of broad-based trade tariffs by the United States on imported goods and the announcement by OPEC+ of plans to increase crude oil production. These actions have led to ongoing uncertainty regarding the broad future effect of reciprocal trade tariff increases on the global economy as well as the future demand for and supply of crude oil, and negatively impacted the demand for and pricing of our products and services in the U.S. land-based market during the second quarter of 2025.

The ultimate magnitude and duration of the trade conflict and increased crude oil production by OPEC+, and the related impacts on crude oil prices and the global economy, remain uncertain. While it is difficult for management to assess or predict with precision the broad future effect of these events on the global economy, the energy industry or the Company, management expects that it may adversely affect demand for our products and services, particularly in the United States, over the balance of 2025 and possibly beyond.

We have implemented certain initiatives to optimize our operations and reduce future costs. These actions include: the consolidation, relocation and exit of certain operating locations; the exit of certain service offerings; reductions in our U.S. workforce as well as the realignment in 2024 of operations within two of our reportable segments. We also incurred legal costs associated with patent defense. As a result of these events, actions and assessments, our reported pre-tax results for the six months ended June 30, 2024 included $10.0 million in non-cash goodwill impairment charges as well as $6.9 million of facility consolidation and exit, patent defense and other charges. During the first six months of 2025, we made the strategic decision to exit three additional service facilities, continued the exit of facilities closed in 2024 and further reduced headcount, incurring $4.6 million of associated pre-tax charges.

During the first six months of 2025, we sold facilities, equipment and inventory for net proceeds of $12.6 million. Additionally, during the first six months of 2025, we purchased $14.8 million principal amount of our 4.75% convertible senior notes due 2026 (the “2026 Notes”) and $12.0 million of our common stock.

On July 4, 2025, the United States enacted tax reform legislation through the OBBBA, which resulted in changes to U.S. tax and related law, including certain key federal income tax provisions applicable to multinational companies such as Oil States. These include, among others: the reinstatement of 100% bonus depreciation election for investments in qualifying property; the immediate deduction of domestic research and development expenditures; and manufacturing tax incentives related to goods sold outside the United States.

On July 28, 2025, we amended our asset-based revolving credit facility to increase advance rates, lower interest charges and plan for the retirement of all 2026 Notes that remain outstanding at maturity in April of 2026.

Overview

Current and expected future pricing for WTI crude oil and natural gas and inflationary cost increases, along with expectations regarding the regulatory environment in the regions in which we operate, are factors that will continue to influence our customers’ willingness to invest capital in their businesses. Expectations for the longer-term price for Brent crude oil will continue to influence our customers’ spending related to global offshore and international drilling and development and, thus, a significant portion of the activity of our Offshore Manufactured Products segment.

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Crude oil and natural gas prices and levels of demand for crude oil and natural gas are likely to remain highly volatile due to numerous factors, including: geopolitical conflicts in Europe and the Middle East, along with associated international tensions; the moderate perceived risk of a global economic recession; the levels of domestic or international crude oil and natural gas production; changes in governmental rules and regulations; sanctions; tariffs; the willingness of operators to invest capital in the exploration for and development of resources; use of alternative fuels; improved vehicle fuel efficiency; timing of capital investments in alternative energy sources; a more sustained movement to electric vehicles; and the potential for ongoing supply/demand imbalances.

U.S. drilling, completion and production activity and, in turn, our financial results, are sensitive to near-term fluctuations in commodity prices, particularly U.S. crude oil and natural gas prices, given the short-term, call-out nature of our U.S. operations.

Customer spending in the natural gas shale plays has declined in recent years due to technological advancements and consolidation of oil and gas producers that have led to significant amounts of natural gas being produced from prolific basins in the Northeastern United States and from associated gas produced from the drilling and completion of unconventional oil wells in the United States. However, the extended outlook for natural gas in the United States is positive with increased exports of LNG, as well as increased power needs for the technology sector, namely data centers.

Our Offshore Manufactured Products segment provides technology-driven, highly-engineered products and services for offshore oil and natural gas production systems and facilities globally, as well as certain products and services to the offshore drilling and completion markets. This segment is particularly influenced by global spending on deepwater drilling and production, which is primarily driven by our customers’ longer-term commodity demand forecasts and outlook for crude oil and natural gas prices. Approximately 90% of Offshore Manufactured Products segment sales in the first six months of 2025 were driven by our customers’ capital spending for products and services used in exploratory and developmental drilling, greenfield offshore production infrastructure, and subsea pipeline tie-in and repair system applications, along with upgraded equipment for existing offshore drilling rigs and other vessels (referred to herein as “project-driven products and services”). Deepwater oil and gas development projects typically involve significant capital investments and multi-year development plans. Such projects are generally undertaken by larger exploration, field development and production companies (primarily international oil companies and state-run national oil companies) using relatively conservative crude oil and natural gas pricing assumptions. Given the long lead times associated with field development, we believe some of these deepwater projects, once approved for development, are generally less susceptible to change based on short-term fluctuations in the price of crude oil and natural gas. Deepwater oil and gas development projects may also be impacted by federal legislative and regulatory actions, including the OBBBA, signed into law in July 2025. The OBBBA mandates that the Bureau of Ocean Energy Management conduct at least two offshore lease sales annually, of a minimum of 80 million acres (if available), in the Central and Western Gulf of America Planning Areas for the next 15 years, beginning in August 2025. This segment also produces a variety of products for use in industrial, military and other applications outside the traditional energy industry. Additionally, we are investing in research and product development (and have been awarded select contracts and are bidding on additional projects) to facilitate the development of alternative energy sources, including offshore wind and deep-sea mineral gathering opportunities.

Backlog reported by our Offshore Manufactured Products segment increased to $363 million as of June 30, 2025 from $311 million as of December 31, 2024. Bookings totaled $112 million in the second quarter of 2025, yielding a quarterly book-to-bill ratio of 1.1x (1.2x year-to-date). The following table sets forth backlog as of the dates indicated (in millions).

						Backlog as of
Year						March 31						June 30						September 30						December 31
2025						$	357					$	363
2024						305						300						$	313					$	311
2023						316						328						341						327

Our Completion and Production Services segment provides completion and production services in the United States (including the Gulf of America) and internationally. Prior to the sale of its drilling rigs in August of 2024, the segment also provided land drilling services in the United States. U.S. drilling and completion activity and, in turn, our Completion and Production Services segment’s results, are sensitive to near-term fluctuations in commodity prices, particularly WTI crude oil prices, given the short-term, call-out nature of its operations. We primarily supply equipment and service personnel utilized in the completion of, and initial production from, new and recompleted wells in our U.S. operations, which are dependent primarily upon the level and complexity of drilling, completion and workover activity in our areas of operations.

Our Downhole Technologies segment provides oil and gas perforation systems, downhole tools and services in support of completion, intervention, wireline and well abandonment operations. This segment designs, manufactures and markets its consumable engineered products to oilfield service as well as exploration and production companies. Product and service offerings for this segment include innovations in perforation technology through patented and proprietary systems combined

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with advanced modeling and analysis tools. This expertise has led to the optimization of perforation hole size, depth, and quality of tunnels, which are key factors for maximizing the effectiveness of hydraulic fracturing. Additional offerings include frac plugs, toe valves and other elastomer products, which are focused on zonal isolation for hydraulic fracturing of horizontal wells, and a broad range of consumable products, such as setting tools and bridge plugs, that are used in completion, intervention and decommissioning applications. Hydraulic fracturing activity, and, in turn, our Downhole Technologies segment’s results, are sensitive to commodity prices, particularly WTI crude oil prices, given that lower activity may result in lower demand for our consumable products. Demand drivers for the Downhole Technologies segment include continued trends toward longer lateral lengths, increased frac stages and more perforation clusters to target increased unconventional well productivity.

Demand for our completion-related products and services within our Completion and Production Services and Downhole Technologies segments is highly correlated to changes in the total number of wells drilled in the United States, total footage drilled, the number of drilled wells that are completed and changes in the drilling rig count. The following table sets forth a summary of the U.S. drilling rig count, as measured by Baker Hughes Company, as of and for the periods indicated.

			As of July 25, 2025						Average for the
									Three Months Ended June 30,												Six Months Ended June 30,
									2025						2024						2025						2024
United States Rig Count:
Land – Oil			401						451						479						460						481
Land – Natural gas and other			125						105						104						105						112
Offshore			16						15						20						14						20
			542						571						603						579						613

The U.S. energy industry is primarily focused on crude oil and liquids-rich exploration and development activities in U.S. shale plays utilizing horizontal drilling and completion techniques. As of June 30, 2025, oil-directed drilling accounted for 79% of the total U.S. rig count – with the balance largely natural gas related.

We use a variety of domestically produced and imported raw materials and component products, including steel, in the manufacture of our products. In the first quarter of 2025, the United States imposed new or additional tariffs on a variety of imported raw materials and products, including steel and aluminum. In response to the U.S. tariffs on steel and aluminum, the European Union and several other countries, including Canada and China, have threatened and/or imposed retaliatory tariffs. In addition, in response to Russia’s invasion of Ukraine, governments in the European Union, the United States, the United Kingdom, Switzerland and other countries have enacted sanctions against Russia and Russian interests. Subsequently, the U.S. government announced additional tariffs on goods imported into the United States, including steel and other metal products. The effect of these sanctions and tariffs and the application and interpretation of existing trade agreements and customs, anti-dumping and countervailing duty regulations continue to evolve, and we continue to monitor these matters. While many of these tariffs are currently deferred, we cannot predict with certainty the impact of any new or increased tariffs, or the impact of any retaliatory tariffs, if we encounter difficulty in procuring these raw materials and component products, or if the prices we have to pay for these products increase and we are unable to pass corresponding cost increases on to our customers, our financial position, cash flows and results of operations could be adversely affected. Furthermore, uncertainty with respect to potential costs in the drilling and completion of oil and gas wells could cause our customers to delay or cancel planned projects which, if this occurred, would adversely affect our financial position, cash flows and results of operations.

Other factors that can affect our business and financial results include but are not limited to: the general global economic environment; competitive pricing pressures; customer consolidations; labor market constraints; supply chain disruptions; inflation in wages, materials, parts, equipment and other costs; climate-related and other regulatory changes; geopolitical conflicts and tensions; management’s implementation of strategic decisions; public health crises; natural disasters; and changes in tax laws in the United States and in the international markets in which we operate. We continue to monitor the global economy, the prices of and demand for crude oil and natural gas, and the resultant impact on the capital spending plans and operations of our customers in order to plan and manage our business.

Human Capital

For more information on our health and safety policy and other workforce policies, please see “Part I, Item 1. Business – Human Capital” in our Annual Report on Form 10-K for the year ended December 31, 2024.

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Selected Financial Data

This selected financial data should be read in conjunction with our Unaudited Condensed Consolidated Financial Statements and related notes included in “Part I, Item 1. Financial Statements” of this Quarterly Report on Form 10-Q and “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our Consolidated Financial Statements and related notes included in “Part II, Item 8. Financial Statements and Supplementary Data” of our Annual Report on Form 10-K for the year ended December 31, 2024 in order to understand factors, such as charges and credits, which may impact comparability of the selected financial data.

Unaudited Consolidated Results of Operations

The following summarizes our consolidated results of operations for the three and six months ended June 30, 2025 and 2024 (in thousands, except per share amounts):

			Three Months Ended June 30,																		Six Months Ended June 30,
			2025						2024						Variance						2025						2024						Variance
Revenues:
Products			$	107,342					$	108,579					$	(1,237)					$	207,893					$	202,908					$	4,985
Services			58,064						77,804						(19,740)						117,451						150,737						(33,286)
			165,406						186,383						(20,977)						325,344						353,645						(28,301)
Costs and expenses:
Product costs			83,936						82,503						1,433						164,265						157,640						6,625
Service costs			41,404						59,530						(18,126)						83,752						116,344						(32,592)
Cost of revenues (exclusive of depreciation and amortization expense presented below)			125,340						142,033						(16,693)						248,017						273,984						(25,967)
Selling, general and administrative expenses			22,981						26,373						(3,392)						45,511						48,869						(3,358)
Depreciation and amortization expense			11,898						14,698						(2,800)						23,923						28,893						(4,970)
Impairment of goodwill			—						—						—						—						10,000						(10,000)
Impairments of operating lease assets			1,358						—						1,358						1,358						—						1,358
Other operating income, net			(1,448)						1,234						(2,682)						(4,381)						1,031						(5,412)
			160,129						184,338						(24,209)						314,428						362,777						(48,349)
Operating income (loss)			5,277						2,045						3,232						10,916						(9,132)						20,048
Interest expense, net			(1,692)						(2,061)						369						(3,270)						(4,162)						892
Other income, net			636						652						(16)						774						580						194
Income (loss) before income taxes			4,221						636						3,585						8,420						(12,714)						21,134
Income tax benefit (provision)			(1,410)						665						(2,075)						(2,451)						641						(3,092)
Net income (loss)			$	2,811					$	1,301					$	1,510					$	5,969					$	(12,073)					$	18,042
Net income (loss) per share:
Basic			$	0.05					$	0.02											$	0.10					$	(0.19)
Diluted			0.05						0.02												0.10						(0.19)
Weighted average number of common shares outstanding:
Basic			59,154						62,483												59,661						62,493
Diluted			59,154						62,704												59,661						62,493

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Unaudited Segment Results of Operations

We manage and measure our business performance in three operating segments: Offshore Manufactured Products, Completion and Production Services and Downhole Technologies. Supplemental financial information by operating segment for the three and six months ended June 30, 2025 and 2024 is summarized below (in thousands):

			Three Months Ended June 30,																		Six Months Ended June 30,
			2025						2024						Variance						2025						2024						Variance
Revenues:
Offshore Manufactured Products
Project-driven:
Products			$	68,653					$	59,752					$	8,901					$	127,777					$	112,889					$	14,888
Services			27,907						31,024						(3,117)						52,331						56,257						(3,926)
			96,560						90,776						5,784						180,108						169,146						10,962
Military and other products			10,026						10,780						(754)						19,074						19,267						(193)
			106,586						101,556						5,030						199,182						188,413						10,769
Completion and Production Services			29,424						46,421						(16,997)						63,943						93,713						(29,770)
Downhole Technologies			29,396						38,406						(9,010)						62,219						71,519						(9,300)
			$	165,406					$	186,383					$	(20,977)					$	325,344					$	353,645					$	(28,301)
Operating income (loss):
Offshore Manufactured Products(1)			$	16,989					$	14,357					$	2,632					$	31,265					$	24,960					$	6,305
Completion and Production Services(2)			1,877						(535)						2,412						5,380						(954)						6,334
Downhole Technologies(3)			(3,992)						(1,141)						(2,851)						(6,116)						(13,220)						7,104
Corporate			(9,597)						(10,636)						1,039						(19,613)						(19,918)						305
			$	5,277					$	2,045					$	3,232					$	10,916					$	(9,132)					$	20,048

_______________

(1)During the three and six months ended June 30, 2025, we recognized charges of $0.3 million within the Offshore Manufactured Products segment, associated primarily with the consolidation and relocation of certain manufacturing and service locations. During the three and six months ended June 30, 2024, the segment incurred facility consolidation charges of $1.5 million and $3.0 million, respectively, associated primarily with the segment’s consolidation and relocation of a manufacturing and service location.

(2)During the three and six months ended June 30, 2025, we recognized charges of $2.2 million and $3.1 million, respectively, within the Completion and Production Services segment, associated primarily with the exit of service locations. During the three and six months ended June 30, 2024, the segment incurred charges of $2.9 million and $3.9 million, respectively, associated primarily with the consolidation and exit of certain underperforming service locations and the defense of certain patents.

(3)During the three and six months ended June 30, 2025, we recognized charges of $1.2 million within the Downhole Technologies segment, associated primarily with the exit of a leased facility. During the six months ended June 30, 2024, the segment incurred a $10.0 million non-cash impairment charge related to goodwill reassigned to the business in connection with the realignment of operations between segments.

For further discussion of charges recognized during the three and six months ended June 30, 2025 and 2024, see Note 2, “Asset Impairments and Other Charges and Credits,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional discussion.

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Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024

We reported net income for the three months ended June 30, 2025 of $2.8 million, or $0.05 per share. The reported second quarter net income included charges of $3.7 million ($2.9 million after tax, or $0.05 per share) associated primarily with the exit of U.S. land-based facilities and personnel reductions, partially offset by non-cash gains of $0.4 million ($0.3 million after-tax, or $0.01 per share) associated with debt extinguishment. These results compare to net income for the three months ended June 30, 2024 of $1.3 million, or $0.02 per share, which included facility consolidation and other charges of $4.4 million ($3.5 million after-tax, or $0.06 per share), partially offset by non-cash gains of $0.5 million ($0.4 million after-tax, or $0.01 per share) associated with debt extinguishment.

Our results of operations for the second quarter of 2025 reflect the impact of management’s decision to exit certain underperforming locations and service offerings in the United States, as well as the effect of a reduction by operators in U.S. land-based activity levels due to lower crude oil prices and competitive market conditions. These impacts were partially offset by stronger offshore and international project activity, supported by backlog growth over recent quarters.

Revenues. Consolidated total revenues in the second quarter of 2025 decreased $21.0 million, or 11%, from the second quarter of 2024 due primarily to our exit of underperforming service offerings and locations and lower U.S. land-based activity levels. Excluding the impact of exited operations, which generated $12.8 million of revenues in the second quarter of 2024, consolidated revenues decreased $8.2 million, or 5%, year-over-year.

Consolidated product revenues in the second quarter of 2025 decreased $1.2 million, or 1%, from the second quarter of 2024, with the impact of reduced U.S. customer demand for completion and perforating products substantially offset by higher customer demand for project-driven products. Consolidated service revenues in the second quarter of 2025 decreased $19.7 million, or 25%, from the second quarter of 2024. This decrease was concentrated in the United States – driven by our exit of certain underperforming service offerings and locations and an industry-wide reduction in land-based activity levels.

The following table provides supplemental disaggregated revenue from contracts with customers by operating segment for the three months ended June 30, 2025 and 2024 (in thousands):

			Offshore Manufactured Products												Completion and Production Services												Downhole Technologies												Total
Three Months Ended June 30			2025						2024						2025						2024						2025						2024						2025						2024
Project-driven:
Products			$	68,653					$	59,752					$	—					$	—					$	—					$	—					$	68,653					$	59,752
Services			27,907						31,024						—						—						—						—						27,907						31,024
Total project-driven			96,560						90,776						—						—						—						—						96,560						90,776
Military and other products			10,026						10,780						—						—						—						—						10,026						10,780
Short-cycle:
Products			—						—						—						—						28,663						38,047						28,663						38,047
Services			—						—						29,424						46,421						733						359						30,157						46,780
Total short-cycle			—						—						29,424						46,421						29,396						38,406						58,820						84,827
			$	106,586					$	101,556					$	29,424					$	46,421					$	29,396					$	38,406					$	165,406					$	186,383
By destination:
Offshore and international			$	99,620					$	94,372					$	11,478					$	13,629					$	8,016					$	10,624					$	119,114					$	118,625
U.S. land			6,966						7,184						17,946						32,792						21,380						27,782						46,292						67,758
			$	106,586					$	101,556					$	29,424					$	46,421					$	29,396					$	38,406					$	165,406					$	186,383

As a percentage of total:
Offshore and international																																							72		%				64		%
U.S. land																																							28		%				36		%

Cost of Revenues (exclusive of Depreciation and Amortization Expense). Our consolidated total cost of revenues (exclusive of depreciation and amortization expense) in the second quarter of 2025 decreased $16.7 million, or 12%, compared to the level reported in the second quarter of 2024.

Consolidated product costs in the second quarter of 2025 increased $1.4 million, or 2%, from the second quarter of 2024 driven primarily by a shift in product sales mix. Consolidated service costs in the second quarter of 2025 decreased $18.1 million, or 30%, from the second quarter of 2024, due to lower revenue levels and strategic actions implemented in our U.S. land operations to improve reported results.

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Selling, General and Administrative Expense. Selling, general and administrative expense was $23.0 million in the second quarter of 2025. This compares to an expense of $26.4 million in the second quarter of 2024, which included $1.0 million of costs associated with enforcing certain of our patents. Excluding these patent litigation costs, selling, general and administrative costs decreased $2.4 million, or 10%, from the second quarter of 2024, due primarily to lower incentive-based compensation, marketing and bad debt expenses.

Depreciation and Amortization Expense. Depreciation and amortization expense decreased $2.8 million, or 19%, in the second quarter of 2025 compared to the prior-year quarter. Note 10, “Segments and Related Information,” to our Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q presents depreciation and amortization expense by segment.

Impairment of Operating Lease Assets. In the second quarter of 2025, management continued its restructuring efforts to reduce costs in its U.S. land-based operations. As a result of these decisions, our Completion and Productions Services and Downhole Technologies segments recognized non-cash impairment charges totaling $1.4 million in connection with its exit of leased locations. See Note 2, “Asset Impairments and Other Charges and Credits,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional discussion.

Operating Income. Our consolidated operating income was $5.3 million in the second quarter of 2025, which included $1.4 million in non-cash operating lease impairment charges as well as charges totaling $2.3 million associated with facility consolidations and exits and other management actions. This compares to second quarter 2024 consolidated operating income of $2.0 million, which included facility consolidation and other charges of $4.4 million. Excluding these charges, operating income increased by $2.5 million year-over-year, driven primarily by growth in offshore and international activity and actions taken to improve U.S. land-based operating results.

Interest Expense, Net. Net interest expense totaled $1.7 million in the second quarter of 2025, which compares to $2.1 million in the same period of 2024. Interest expense as a percentage of total debt outstanding was approximately 7% in the second quarters of 2025 and 2024.

Income Tax. Income tax benefit (provision) for the three months ended June 30, 2025 and 2024 was calculated using a discrete approach. This methodology was used because changes in our results of operations and non-deductible expenses can materially impact the estimated annual effective tax rate. For the three months ended June 30, 2025, our income tax provision was $1.4 million, which included the impact of valuation allowance adjustments for deferred tax assets, certain discrete tax items and other non-deductible expenses, on pre-tax income of $4.2 million. This compares to an income tax benefit of $0.7 million, which included the impact of favorable changes in valuation allowances recorded against deferred tax assets and certain non-deductible expenses, on pre-tax income of $0.6 million for the three months ended June 30, 2024.

Other Comprehensive Income (Loss). Reported comprehensive income (loss) is the sum of reported net income and other comprehensive income (loss). Other comprehensive income was $9.1 million in the second quarter of 2025 compared to other comprehensive loss of $3.2 million in the second quarter of 2024 due to fluctuations in currency exchange rates compared to the U.S. dollar which are used to translate certain of the international operations of our operating segments. For the three months ended June 30, 2025 and 2024, currency translation adjustments recognized as a component of other comprehensive income (loss) were primarily attributable to the United Kingdom and Brazil. During the second quarter of 2025, the exchange rate for the British pound and the Brazilian real strengthened compared to the U.S. dollar. In the second quarter of 2024, the exchange rates for the British pound was flat while the Brazilian real weakened compared to the U.S. dollar.

Segment Operating Results

Offshore Manufactured Products

Revenues. Our Offshore Manufactured Products segment revenues increased $5.0 million, or 5%, in the second quarter of 2025 compared to the second quarter of 2024 due to increased international and offshore project-driven product revenue, supported by backlog growth over recent quarters.

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Operating Income. Our Offshore Manufactured Products segment reported operating income of $17.0 million in the second quarter of 2025, which included $0.3 million in facility consolidation and relocation charges. This compares to operating income in the second quarter of 2024 of $14.4 million, which included $1.5 million in facility consolidation charges. Excluding these charges, operating income increased $1.4 million year-over-year.

Backlog. Backlog in our Offshore Manufactured Products segment totaled $363 million as of June 30, 2025, with second quarter 2025 bookings of $112 million and a quarterly book-to-bill ratio of 1.1x.

Completion and Production Services

Revenues. Our Completion and Production Services segment revenues decreased $17.0 million, or 37%, in the second quarter of 2025 compared to the prior-year period, driven by the exit of underperforming service offerings and facilities and lower U.S. land-based activity levels. Excluding the impact of exited operations, which generated $12.8 million of revenues in the second quarter of 2024, revenues declined $4.2 million, or 13%, year-over-year – driven primarily by the industry-wide reduction in U.S. land completion-related activity.

Operating Income (Loss). Our Completion and Production Services segment reported operating income of $1.9 million in the second quarter of 2025, which included charges totaling $2.2 million associated primarily with the exit of service locations. This compares to an operating loss of $0.5 million in the second quarter of 2024, which included charges totaling $2.9 million associated with facility consolidations and exits, and the defense of patents. Excluding these charges, the Completion and Production Services segment’s operating results improved $1.7 million from the prior-year period, supported by the segment’s U.S. land-based restructuring efforts and gains recognized on the sales of idle facilities.

Downhole Technologies

Revenues. Our Downhole Technologies segment revenues decreased $9.0 million, or 23%, in the second quarter of 2025 from the prior-year period, driven primarily by lower U.S. customer activity levels.

Operating Loss. Our Downhole Technologies segment reported an operating loss of $4.0 million in the second quarter of 2025, which included charges totaling $1.2 million primarily associated with the exit of a leased facility. This compares to an operating loss of $1.1 million in the second quarter of 2024. Excluding charges, the Downhole Technologies operating results declined $1.6 million year-over-year, driven by the decline in revenues.

Corporate

Operating Loss. Corporate expenses decreased $1.0 million, or 10%, in the second quarter of 2025 from the prior-year period due primarily to lower performance-based incentive expense.

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Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024

We reported net income for the six months ended June 30, 2025 of $6.0 million, or $0.10 per share. The reported first six months net income included charges of $4.6 million ($3.6 million after tax, or $0.07 per share) associated with the restructuring of certain of our U.S. land-based operations, facility consolidations and closures, and personnel reductions, partially offset by non-cash gains of $0.4 million ($0.3 million after-tax, or $0.01 per share) associated with debt extinguishment. These results compare to a net loss for the six months ended June 30, 2024 of $12.1 million, or $0.19 per share, which included: a non-cash goodwill impairment charge of $10.0 million ($9.5 million after-tax, or $0.15 per share) and facility consolidation and other charges of $6.9 million ($5.5 million after-tax, or $0.09 per share), partially offset by non-cash gains of $0.5 million ($0.4 million after-tax, or $0.01 per share) associated with debt extinguishment.

Our results of operations for the first six months of 2025 reflect the impact of management’s decision to exit certain underperforming locations and service offerings in the United States as well as the effect of a reduction by operators in U.S. land-based activity due to lower crude oil prices and competitive market conditions. These impacts were partially offset by stronger offshore and international project activity, supported by backlog growth over recent quarters.

Revenues. Consolidated total revenues in the first six months of 2025 decreased $28.3 million, or 8%, from the first six months of 2024 due primarily to our exit of underperforming service offerings and locations and lower U.S. land-based activity levels. Excluding the impact of exited operations, which generated $29.6 million of revenues in the first six months of 2024, consolidated revenues increased $1.3 million year-over-year.

Consolidated product revenues in the first six months of 2025 increased $5.0 million, or 2%, from the first six months of 2024, with the impact of higher customer demand for connector and valve products partially offset by a reduced U.S. customer demand for completion and perforating products. Consolidated service revenues in the first six months of 2025 decreased $33.3 million, or 22%, from the first six months of 2024. This decrease was concentrated in the United States – driven by our exit of certain underperforming service offerings and locations and an industry-wide reduction in land-based activity levels.

The following table provides supplemental disaggregated revenue from contracts with customers by operating segment for the six months ended June 30, 2025 and 2024 (in thousands):

			Offshore Manufactured Products												Completion and Production Services												Downhole Technologies												Total
Six Months Ended June 30			2025						2024						2025						2024						2025						2024						2025						2024
Project-driven:
Products			$	127,777					$	112,889					$	—					$	—					$	—					$	—					$	127,777					$	112,889
Services			52,331						56,257						—						—						—						—						52,331						56,257
Total project-driven			180,108						169,146						—						—						—						—						180,108						169,146
Military and other products			19,074						19,267						—						—						—						—						19,074						19,267
Short-cycle:
Products			—						—						—						—						61,042						70,752						61,042						70,752
Services			—						—						63,943						93,713						1,177						767						65,120						94,480
Total short-cycle			—						—						63,943						93,713						62,219						71,519						126,162						165,232
			$	199,182					$	188,413					$	63,943					$	93,713					$	62,219					$	71,519					$	325,344					$	353,645
By destination:
Offshore and international			$	184,861					$	174,174					$	24,868					$	25,064					$	15,622					$	19,567					$	225,351					$	218,805
U.S. land			14,321						14,239						39,075						68,649						46,597						51,952						99,993						134,840
			$	199,182					$	188,413					$	63,943					$	93,713					$	62,219					$	71,519					$	325,344					$	353,645

As a percentage of total:
Offshore and international																																							69		%				62		%
U.S. land																																							31		%				38		%

Cost of Revenues (exclusive of Depreciation and Amortization Expense). Our consolidated total cost of revenues (exclusive of depreciation and amortization expense) in the first six months of 2025 decreased $26.0 million, or 9%, compared to the first six months of 2024.

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Consolidated product costs in the first six months of 2025 increased $6.6 million, or 4%, compared to the first six months of 2024 due primarily to the reported increase in product revenue as well as an unfavorable shift in product sales mix. Consolidated service costs in the first six months of 2025 decreased $32.6 million, or 28%, compared to the first six months of 2024, due to lower revenue levels and the strategic actions implemented in our U.S. land-based operations to improve reported results.

Selling, General and Administrative Expense. Selling, general and administrative expense totaled $45.5 million in the first six months of 2025. This compares to an expense of $48.9 million in the first six months of 2024, which included $1.3 million of costs associated with enforcing certain of our patents. Excluding these patent litigation costs, selling, general and administrative costs decreased $2.0 million, or 4%, from the prior-year period, due primarily to lower compensation, marketing and bad debt expenses.

Depreciation and Amortization Expense. Depreciation and amortization expense in the first six months of 2025 decreased $5.0 million, or 17%, compared to the prior-year period. Note 10, “Segments and Related Information,” to our Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q presents depreciation and amortization expense by segment.

Impairment of Operating Lease Assets. In the first six months of 2025, management continued its restructuring efforts to reduce costs in its U.S. land-based operations. As a result of these decisions, our Completion and Productions Services and Downhole Technologies segments recognized non-cash impairment charges totaling $1.4 million in connection with its exit of leased locations. See Note 2, “Asset Impairments and Other Charges and Credits,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional discussion.

Impairment of Goodwill. In the first quarter of 2024, our Downhole Technologies operations recognized a non-cash impairment charge of $10.0 million related to goodwill transferred to the business in connection with the realignment of operations between segments. See Note 2, “Asset Impairments and Other Charges and Credits,” to our Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.

Operating Income (Loss). Our consolidated operating income was $10.9 million in the first six months of 2025, which included $1.4 million in non-cash operating lease asset impairment charges as well as charges totaling $3.2 million associated with facility consolidations and exits and other management actions. This compares to a consolidated operating loss of $9.1 million in the first six months of 2024, which included a $10.0 million non-cash goodwill impairment charge and $6.9 million in facility consolidation and other charges. Excluding these charges, operating results improved by $7.7 million year-over-year, driven primarily by growth in offshore and international activity and actions taken to improve our U.S. land-based operating results.

Interest Expense, Net. Net interest expense totaled $3.3 million in the first six months of 2025, which compares to $4.2 million in the first six months of 2024. Interest expense as a percentage of total debt outstanding was approximately 7% in the first six months of 2025 and 2024.

Income Tax. Income tax benefit (provision) for the first six months of 2025 and 2024 was calculated using a discrete approach. This methodology was used because changes in our results of operations and non-deductible expenses can materially impact the estimated annual effective tax rate. For the first six months of 2025, our income tax provision was $2.5 million, which included the impact of certain discrete tax items and other non-deductible expenses on pre-tax income of $8.4 million. This compares to an income tax benefit of $0.6 million, which included the impact of a $10.0 million goodwill impairment charge, other non-deductible expenses and favorable changes in valuation allowances recorded against deferred tax assets, on a pre-tax loss of $12.7 million for the first six months of 2024.

Other Comprehensive Income (Loss). Reported comprehensive income (loss) is the sum of reported net income (loss) and other comprehensive income (loss). Other comprehensive income was $14.6 million in the first six months of 2025 compared to other comprehensive loss of $6.2 million in the first six months of 2024 due to fluctuations in foreign currency exchange rates compared to the U.S. dollar for certain of the international operations of our operating segments. For the first six months of 2025 and 2024, currency translation adjustments recognized as a component of other comprehensive income (loss) were primarily attributable to the United Kingdom and Brazil. During the first six months of 2025, the exchange rates for both the British pound and the Brazilian real strengthened compared to the U.S. dollar. This compares to the first six months of 2024, when the exchange rates for both the British pound and the Brazilian real weakened compared to the U.S. dollar.

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Segment Operating Results

Offshore Manufactured Products

Revenues. Our Offshore Manufactured Products segment revenues increased $10.8 million, or 6%, in the first six months of 2025 compared to the first six months of 2024 due primarily to increased demand for the segment’s international and offshore project-driven connector and valve products.

Operating Income. Our Offshore Manufactured Products segment reported operating income of $31.3 million in the first six months of 2025, which included $0.3 million in facility consolidation and relocation charges. This compares to operating income of $25.0 million in the first six months of 2024, which included $3.0 million in facility consolidation and other charges. Excluding these charges, the Offshore Manufactured Products segment’s operating income increased $3.6 million year-over-year due primarily to the reported revenue growth.

Backlog. Backlog in our Offshore Manufactured Products segment totaled $363 million as of June 30, 2025 compared to $311 million as of December 31, 2024. Bookings during the first six months of 2025 were $248 million, yielding a book-to-bill ratio of 1.2x.

Completion and Production Services

Revenues. Our Completion and Production Services segment revenues decreased $29.8 million, or 32%, in the first six months of 2025 compared to the first six months of 2024, driven primarily by the exit of underperforming U.S. service offerings and facilities. Excluding the impact of exited operations, which generated $29.6 million of revenues in the first six months of 2024, revenues were consistent year-over-year.

Operating Income (Loss). Our Completion and Production Services segment reported operating income of $5.4 million in the first six months of 2025, which included $3.1 million in facility exit charges. This compares to an operating loss of $1.0 million in the first six months of 2024, which included charges totaling $3.9 million associated with facility consolidations and exits, and the defense of patents. Excluding these charges, the Completion and Production Services segment’s operating results improved $5.5 million from the prior-year period, due primarily to the cost reduction measures implemented.

Downhole Technologies

Revenues. Our Downhole Technologies segment revenues decreased $9.3 million, or 13%, in the first six months of 2025 from the first six months of 2024, driven primarily by lower U.S. customer activity levels and competitive market conditions.

Operating Loss. Our Downhole Technologies segment reported an operating loss of $6.1 million in the first six months of 2025, which included charges totaling $1.2 million primarily associated with the exit of a leased facility. This compares to an operating loss of $13.2 million reported in the first six months of 2024, which included the $10.0 million non-cash goodwill impairment charge related to the segment realignment in the first quarter of 2024. Excluding charges, the Downhole Technologies segment’s operating results declined $1.7 million from the prior-year period, due primarily to the decrease in activity levels and lower fixed-cost coverage.

Corporate

Operating Loss. Corporate expenses in the first six months of 2025 decreased $0.3 million, or 2%, from the first six months of 2024, due primarily to lower performance-based incentive expense.

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Liquidity, Capital Resources and Other Matters

Our primary liquidity needs are to fund operating and capital expenditures, new product development, general working capital needs and debt repayment. In addition, capital has been used to fund share repurchases and fund strategic business acquisitions. Our primary sources of funds are cash flow from operations and proceeds from borrowings under our ABL Facility and, less frequently, capital markets transactions.

Operating Activities

Cash flows from operations totaled $24.3 million during the first six months of 2025, compared to $1.1 million used in operations during the first six months of 2024.

During the first six months of 2025, $6.1 million was used to fund net working capital increases, which includes a decrease in accounts payable and payment of accrued short- and long-term cash incentive compensation, as well as a decrease in accounts receivable. During the first six months of 2024, $28.3 million was used to fund net working capital increases, primarily due to an activity-driven increase in inventories, the payment of accrued 2023 short- and long-term cash incentives in the first quarter of 2024 and a decrease in accounts payable.

Investing Activities

Net cash used in investing activities during the first six months of 2025 totaled $6.9 million, compared to $3.2 million used in investing activities during the first six months of 2024.

Capital expenditures totaled $19.5 million and $15.9 million during the first six months of 2025 and 2024, respectively. These investments were offset by proceeds from the sale of property, equipment and assets held for sale of $12.6 million and $12.8 million during the first six months of 2025 and 2024, respectively.

Including investments associated with the continuing construction of a new facility in Batam, Indonesia, we expect to invest approximately $30 million in capital expenditures during 2025. We plan to fund our capital expenditures with available cash, internally generated funds and, if necessary, borrowings under our amended ABL Facility discussed below.

Financing Activities

During the first six months of 2025, net cash of $29.1 million was used in financing activities, which included the purchase of $14.8 million principal amount of our outstanding 2026 Notes for $14.3 million in cash and the repurchase of 2.4 million shares of our common stock (or 4% of our common stock outstanding as of January 1, 2025) for $12.0 million. This compares to $17.2 million of cash used in financing activities during the first six months of 2024, which included the purchase of $11.5 million principal amount of our outstanding 2026 Notes for $10.8 million in cash and the repurchase of $2.4 million of our common stock.

As of June 30, 2025, we had cash and cash equivalents totaling $53.9 million, which compared to $65.4 million as of December 31, 2024.

As of June 30, 2025, we had no borrowings outstanding under our ABL Facility, $108.8 million principal amount of our 2026 Notes outstanding and other debt of $2.5 million. Our reported interest expense included amortization of deferred financing costs of $0.7 million during the first six months of 2025. For the first six months of 2025, our contractual cash interest expense was $3.4 million, or approximately 6% of the average principal balance of debt outstanding.

We believe that cash on-hand, cash flow from operations and borrowing capacity available under our ABL Facility will be sufficient to meet our liquidity needs in the coming twelve months. Our 2026 Notes mature on April 1, 2026, and we anticipate that cash on hand, cash flow from operations and borrowings under our amended ABL Facility will be sufficient to permit us to fully retire the remaining balance of the 2026 Notes. As further discussed below, on July 28, 2025 we amended our ABL Facility to increase advance rates, lower interest charges and plan for the retirement of all 2026 Notes that remain outstanding at maturity in April of 2026. If our plans or assumptions change, or are inaccurate, we may need to raise additional capital from other sources. Our ability to obtain capital to repay debt, for general liquidity needs and for additional projects to implement our growth strategy over the longer term will depend upon our future operating performance, financial condition and, more broadly, on the availability of equity and debt financing. Capital availability will be affected by prevailing conditions in our industry, the global economy, the global banking and financial markets and other factors, many of which are beyond our control. For companies like ours that support the energy industry, disruptions affecting the availability of capital have in the past and may in

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the future negatively impact the value of our common stock and may reduce our ability to access capital in the bank and capital markets or result in such capital being available on less favorable terms, which could negatively affect our liquidity.

On March 6, 2024, the SEC finalized rules relating to the disclosure of a range of climate-related information (the “Rules”). The Rules were temporarily stayed by the SEC on April 4, 2024 pending judicial review, and on March 27, 2025, the SEC announced it would end its defense of the Rules. Although the SEC’s rules are unlikely to become effective, certain states have enacted or are considering the adoption of similar rules. Thus, the ultimate impact on our business is uncertain, and we and our customers may incur increased compliance costs related to the assessment and disclosure of climate-related risks. For more information on our risks related to climate change, see the risk factors in “Part I, Item 1A. Risk Factors” included in our 2024 Annual Report on Form 10-K titled, “Our and our customers’ operations are subject to a series of risks arising out of the threat of climate change that could result in increased operating costs, limit the areas in which oil and natural gas production may occur, and reduce demand for the products and services we provide,” “The Inflation Reduction Act of 2022 could accelerate the transition to a low carbon economy and could impose new costs on our customers’ operations” and “Increasing attention to ESG matters may impact our business.”

Stock Repurchase Program. In October 2024, our Board of Directors authorized $50.0 million for repurchases of our common stock, par value $0.01 per share, through October 2026. Subject to applicable securities laws, such purchases will be at such times and in such amounts as we deem appropriate.

During the six months ended June 30, 2025, $12.0 million in repurchases of common stock were made under this program. The amount remaining under our new share repurchase authorization as of June 30, 2025 was $29.3 million.

Revolving Credit Facility. Our senior secured credit facility provides for an asset-based revolving credit facility (the “ABL Facility”) under which credit availability is subject to a borrowing base calculation.

The ABL Facility is governed by a credit agreement with Wells Fargo Bank, National Association, as administrative agent and the lenders and other financial institutions from time to time party thereto (as amended, the “ABL Agreement”). The ABL Agreement matures on February 16, 2028. On July 28, 2025, we amended our ABL Agreement to increase advance rates, lower interest charges and plan for the retirement of all 2026 Notes that remain outstanding at maturity in April of 2026. See Note 4, “Long-term Debt,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for further information regarding the ABL Agreement.

As of June 30, 2025, we had $17.1 million of outstanding letters of credit, but no borrowings outstanding under the ABL Agreement. The total amount available to be drawn as of June 30, 2025 was $59.3 million, calculated based on the then-current borrowing base less outstanding letters of credit.

2026 Notes. We issued $135.0 million aggregate principal amount of the 2026 Notes pursuant to an indenture, dated as of March 19, 2021 (the “2026 Indenture”), between us and Computershare Trust Company, National Association, as successor trustee. As of June 30, 2025, we have purchased a cumulative $26.3 million principal amount of the 2026 Notes for $25.1 million in cash, with $108.8 million principal amount outstanding. The outstanding 2026 Notes will mature on April 1, 2026, unless earlier repurchased, redeemed or converted.

The 2026 Indenture contains certain events of default, including certain defaults by us with respect to other indebtedness of at least $40.0 million. See Note 4, “Long-term Debt,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for further information regarding the 2026 Notes. As of June 30, 2025, none of the conditions allowing holders of the 2026 Notes to convert, or requiring us to repurchase the 2026 Notes, had been met.

Our total debt represented 14% and 16% of our combined total debt and stockholders’ equity as of June 30, 2025 and December 31, 2024, respectively.

Contingencies and Other Obligations. We are a party to various pending or threatened claims, lawsuits and administrative proceedings seeking damages or other remedies concerning our commercial operations, products, employees and other matters.

See Note 11, “Commitments and Contingencies,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional discussion.

Off-Balance Sheet Arrangements. As of June 30, 2025, we had no off-balance sheet arrangements.

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Critical Accounting Policies

For a discussion of the critical accounting policies and estimates that we use in the preparation of our condensed consolidated financial statements, see “Part II Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024. These estimates require significant judgments, assumptions and estimates. We have discussed the development, selection, and disclosure of these critical accounting policies and estimates with the audit committee of our Board of Directors. There have been no material changes to the judgments, assumptions and estimates upon which our critical accounting estimates are based.

Recent Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, which are adopted by us as of the specified effective date. Management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on our consolidated financial statements upon adoption.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Market risk refers to the potential losses arising from changes in interest rates, foreign currency exchange rates, equity prices and commodity prices, including the correlation among these factors and their volatility.

Our principal market risks are our exposure to changes in interest rates and foreign currency exchange rates. We enter into derivative instruments only to the extent considered necessary to meet risk management objectives and do not use derivative contracts for speculative purposes.

Interest Rate Risk. We have a revolving credit facility that is subject to the risk of higher interest charges associated with increases in interest rates. As of June 30, 2025, we had no floating-rate obligations outstanding under our ABL Facility. The use of floating-rate obligations would expose us to the risk of increased interest expense in the event of increases in short-term interest rates.

Foreign Currency Exchange Rate Risk. Our operations are conducted in various countries around the world and we receive revenue from these operations in a number of different currencies. As such, our earnings are subject to movements in foreign currency exchange rates when transactions are denominated in (i) currencies other than the U.S. dollar, which is our functional currency, or (ii) the functional currency of our subsidiaries, which is not necessarily the U.S. dollar. In order to mitigate the effects of foreign currency exchange rate risks in areas outside of the United States (primarily in our Offshore Manufactured Products segment), we generally pay a portion of our expenses in local currencies and a substantial portion of our contracts provide for collections from customers in U.S. dollars. During the first six months of 2025, our reported foreign currency exchange losses were $1.2 million and are included in “other operating (income) expense, net” in the consolidated statements of operations.

Accumulated other comprehensive loss, reported as a component of stockholders’ equity, primarily relates to fluctuations in currency exchange rates against the U.S. dollar as used to translate certain of the international operations of our operating segments. Our accumulated other comprehensive loss decreased $14.6 million from $79.5 million as of December 31, 2024 to $64.9 million as of June 30, 2025, due to changes in currency exchange rates. During the six months ended June 30, 2025, the exchange rates for the British pound and the Brazilian real strengthened by 9% and 13%, respectively, compared to the U.S. dollar.

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ITEM 4. Controls and Procedures

(i) Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this Quarterly Report on Form 10-Q, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)) of the Exchange Act. Our disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed by us in reports that we file under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of June 30, 2025 at the reasonable assurance level.

(ii) Changes in Internal Control Over Financial Reporting

There have been no changes in the Company’s internal control over financial reporting (as that term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the three months ended June 30, 2025, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

ITEM 1. Legal Proceedings

The information with respect to this Item 1 is set forth under Note 11, “Commitments and Contingencies.”

ITEM 1A. Risk Factors

“Part I, Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2024 includes a detailed discussion of our risk factors. The risks described in such report are not the only risks we face. Additional risks and uncertainties not currently known to us, or that we currently deem to be immaterial, may materially adversely affect our business, financial conditions or future results. There have been no material changes to our risk factors as set forth in our 2024 Annual Report on Form 10-K.

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a) None.

(b) None.

(c)

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

Period						Total Number of Shares Purchased(1)(2)						Average Price Paid per Share(1)(2)						Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs						Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs(3)
April 1 through April 30, 2025						—						$	—					—						$	35,960,503
May 1 through May 31, 2025						812,553						4.54						812,553						32,237,927
June 1 through June 30, 2025						594,128						4.96						594,128						29,262,936
Total						1,406,681						$	4.72					1,406,681

________________

(1)Average price paid per share excludes the impact of excise taxes.

(2)During the three-month period ended June 30, 2025, no shares were acquired from employees in connection with the settlement of income tax or related benefit withholding obligations arising from vesting of stock awards.

(3)In October 2024, our Board of Directors authorized $50.0 million for repurchases of our common stock, par value $0.01 per share, through October 2026. As of June 30, 2025, $20.7 million of share repurchases have been made under this authorization.

ITEM 3. Defaults Upon Senior Securities

None.

ITEM 4. Mine Safety Disclosures

Not applicable.

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ITEM 5. Other Information

Rule 10b5-1 Trading Arrangement

During the three months ended June 30, 2025, no director or executive officer adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement” (as each is defined in Item 408 of Regulation S-K) related to securities of our company.

Amendment to Credit Agreement

On July 28, 2025, the Company, as borrower, Wells Fargo Bank, National Association, as administrative agent (the “Administrative Agent”) and the other lenders signatory thereto entered into the Fifth Amendment to Credit Agreement (the “Fifth Amendment”). The Fifth Amendment amended the ABL Agreement, dated as of February 10, 2021 (as amended by the Fifth Amendment, the “Credit Agreement”). Please see Note 4 “Long-term Debt,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for further information regarding the Credit Agreement.

The Administrative Agent, the other lenders party to the Credit Agreement, and their respective affiliates have from time to time performed, and may in the future perform, various financial advisory, commercial banking and investment banking services for the Company and its affiliates in the ordinary course of business for which they have received and would receive customary compensation. In addition, in the ordinary course of their various business activities, such parties and their respective affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for their own account and for the accounts of their customers, and such investments and securities activities may involve the Company’s securities and/or instruments.

The description of the Credit Agreement contained herein represents only a summary of the material terms of the Fifth Amendment, does not purport to be complete and is qualified in its entirety by reference to the complete text of the amendment to the Credit Agreement, which is filed as Exhibit 10.1 to this Quarterly Report on Form 10-Q, and is incorporated by reference herein.

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ITEM 6. Exhibits

Exhibit No.						Description
3.1			—			Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q, as filed with the SEC on July 27, 2023 (File No. 001-16337)).
3.2			—			Fifth Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 to the Company’s Annual Report on Form 10-K, as filed with the SEC on February 17, 2023 (File No. 001-16337)).
3.3			—			Certificate of Designations of Special Preferred Voting Stock of Oil States International, Inc. (incorporated by reference to Exhibit 3.3 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2000, as filed with the SEC on March 30, 2001 (File No. 001-16337)).
10.1*			—			Fifth Amendment to Credit Agreement, dated July 28, 2025, among Oil States International, Inc., as Borrower, the Lenders from time to time thereto, and Wells Fargo Bank, National Association as Agent.
31.1*			—			Certification of Chief Executive Officer of Oil States International, Inc. pursuant to Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended.
31.2*			—			Certification of Chief Financial Officer of Oil States International, Inc. pursuant to Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended.
32.1**			—			Certification of Chief Executive Officer of Oil States International, Inc. pursuant to Rules 13a-14(b) or 15d-14(b) under the Securities Exchange Act of 1934, as amended.
32.2**			—			Certification of Chief Financial Officer of Oil States International, Inc. pursuant to Rules 13a-14(b) or 15d-14(b) under the Securities Exchange Act of 1934, as amended.
101.INS*			—			XBRL Instance Document
101.SCH*			—			XBRL Taxonomy Extension Schema Document
101.CAL*			—			XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*			—			XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*			—			XBRL Taxonomy Extension Label Linkbase Document
101.PRE*			—			XBRL Taxonomy Extension Presentation Linkbase Document
104			—			Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

---------

*			Filed herewith.
**			Furnished herewith.

40

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

OIL STATES INTERNATIONAL, INC.

Date:

July 31, 2025

By:

/s/ LLOYD A. HAJDIK

Lloyd A. Hajdik

Executive Vice President, Chief Financial Officer and

Treasurer (Duly Authorized Officer and Principal Financial Officer)

41

FAQ

How much revenue did PROS Holdings (PRO) generate in Q2 2025?

$88.7 million, an 8% year-over-year increase.

What was PROS’ Q2 2025 EPS?

Basic EPS was -$0.04, improving from -$0.16 in Q2 2024.

How did the convertible debt exchange affect the balance sheet?

PROS swapped $186.9 million of 2027 notes for new 2030 notes and issued another $50 million, booking a $4.2 million gain and extending maturities.

What is PROS Holdings’ cash position after the quarter?

Cash and equivalents stood at $179.0 million with an additional $10 million in restricted cash.

What are the current gross and subscription margins?

Total gross margin is 67%; subscription gross margin reached 79%.

Did PROS generate positive operating cash flow?

Yes, $4.4 million in operating cash flow for the first six months of 2025.