ATLANTA, Feb. 3, 2026 /PRNewswire/ -- RPC, Inc. (NYSE: RES) ("RPC" or the "Company"), a leading diversified oilfield services company, announced its unaudited results for the fourth quarter and full year ended December 31, 2025.
Non-GAAP and adjusted measures may include adjusted revenues, adjusted operating income, adjusted net income, adjusted net income margin, adjusted earnings per share (diluted), EBITDA and adjusted EBITDA, adjusted EBITDA margin, and free cash flow which are reconciled to the most directly comparable GAAP measures in the appendices of this earnings release.
Sequential comparisons are to 3Q:25. The Company believes quarterly sequential comparisons are most useful in assessing industry trends and RPC's recent financial results. Both sequential and year-over-year comparisons are available in the tables at the end of this earnings release.
Fourth Quarter 2025 Highlights
- Revenues decreased 5% sequentially to $425.8 million
- Net loss was $3.1 million, compared to net income of $13.0 million in the prior quarter, and Loss Per Share was $0.02; Net (loss) income margin decreased 360 basis points sequentially to (0.7)%
- Adjusted net income was $9.4 million, compared to $16.8 million in the prior quarter, and adjusted diluted Earnings per Share (EPS) was $0.04; Adjusted net income margin was 2.2%. See Appendices B and C for additional details
- Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) was $55.1 million, compared to $67.8 million in the prior quarter; Adjusted EBITDA margin decreased 230 basis points sequentially to 12.9%. Adjusted EBITDA was negatively impacted by approximately $4.6 million in wireline cable expenses incurred during the quarter. Previously, wireline cables were capitalized. See Appendix C for additional details
Full Year 2025 Highlights
- Revenues increased 15% compared to the prior year to $1.6 billion primarily due to the Pintail Completions acquisition which closed April 1, 2025
- Net income was $32.1 million, down 65% compared to the prior year, and EPS was $0.15; Net income margin decreased 450 basis points compared to the prior year to 2.0%
- Adjusted net income was $53.6 million, down 41% compared to the prior year, and adjusted diluted EPS was $0.25; Adjusted net income margin was 3.3%
- Adjusted EBITDA was $232.7 million, essentially unchanged from the prior year; Adjusted EBITDA margin decreased 220 basis points sequentially to 14.3%
- Net cash from operating activities was $201.3 million; free cash flow was $52.9 million unaffected by the transition to expensing wireline cables
- The Company paid $35.1 million in dividends, and repurchased $2.9 million of common stock in 2025
Management Commentary
"During the fourth quarter we experienced modest revenue declines primarily due to the holiday slowdowns. Our Technical Services segment revenues declined 4% sequentially. Within Technical Services, Thru Tubing Solutions' downhole tools declined 9% driven by softer activity in the Rocky Mountain and International districts. Cudd Energy Services' pumping and Pintail Completions' wireline declined 6% and 3%, respectively, partially offset by Cudd Pressure Control's snubbing revenues, which grew by 13%. Our Support Services segment revenues declined 18% sequentially, primarily due to Patterson Services' rental tools declining 22% during the quarter as several jobs shifted into early 2026," stated Ben M. Palmer, RPC's President and Chief Executive Officer. "As we enter 2026, we are focused on disciplined execution, leveraging our strong brands and diversified offerings."
"We experienced a solid start to the fourth quarter but encountered a weak December as a number of our customers reduced activity, particularly late in the month. The macro environment remains challenging, with crude oil prices showing increased volatility due to recent geopolitical developments. As we look ahead, our focus remains on delivering full cycle returns by maintaining cost discipline, deploying capital strategically, and positioning the company for long-term success."
Selected Industry Data(Source: Baker Hughes, Inc., U.S. Energy Information Administration)
4Q:25 3Q:25 Change % Change 4Q:24 Change % Change
U.S. rig count (avg) 548 540 8 1.5 586 (38) (6.5)
% %
Oil price ($/barrel) $
59.79 $
65.85 $
(6.06) (9.2) $
70.59 $
(10.80) (15.3)
% %
Natural gas ($/Mcf) $
3.69 $
3.04 $
0.65 21.4 $
2.43 $
1.26 51.9
% %
4Q:25 Consolidated Financial Results (sequential comparisons to previous quarter)
Revenues were $425.8 million, down 5%. Within the Technical Services segment, we saw revenues decrease 4% sequentially with snubbing and cementing showing sequential growth offset by declines in our other service lines. Within the Support Services segment we saw an 18% sequential decrease with rental tools showing a sequential decrease of 22%, slightly offset by increases in tubular services.
Cost of revenues, which excludes depreciation and amortization of $33.8 million, was $336.6 million, up slightly from $334.7 million. Despite lower revenues, the cost of revenues increased during the quarter due to expensing year-to-date wireline cable purchases of approximately $12 million that were previously being capitalized, and increases in other materials and supplies expenses related to job mix.
Selling, general and administrative expenses were $47.7 million, up from $44.6 million, primarily related to employment incentives and higher other employment related costs.
Acquisition related employment costs were approximately $7.3 million during 4Q:25 and represent non-cash accounting adjustments related to the Pintail acquisition costs that are contingent upon continued employment.
Interest income totaled $1.7 million, approximating the prior quarter.
Interest expense totaled $942 thousand, approximating the prior quarter.
Income tax provision was $3.2 million, with an unusually high effective tax rate primarily due to the liquidation of company-owned life insurance policies that were part of the previously announced dissolution of the company's non-qualified supplemental retirement plan, coupled with the non-deductible portion of Acquisition related employment costs.
Net loss and Loss per share were a loss of $3.1 million and $0.02 respectively, versus net income of $13.0 million and diluted earnings per share of $0.06, respectively, in 3Q:25. Net income margin decreased 360 basis points sequentially to (0.7)%.
Adjusted net income and Adjusted diluted EPS were $9.4 million and $0.04, respectively, versus $16.8 million and $0.08, respectively, in 3Q:25. Adjusted net income margin decreased to 2.2% from 3.8% in 3Q:25
Adjusted EBITDA was $55.1 million, down from $67.8 million. Adjusted EBITDA margin decreased 230 basis points sequentially to 12.9%. Adjusted EBITDA was negatively impacted by approximately $4.6 million in wireline cable expenses incurred during the quarter. Previously, wireline cables were capitalized. See Appendix C for additional details.
Balance Sheet, Cash Flow and Capital Allocation
Cash and cash equivalents increased to $210.0 million at the end of the fourth quarter, with no outstanding borrowings under the Company's $100 million revolving credit facility.
Net cash provided by operating activities and Free cash flow were $201.3 million and $52.9 million, respectively, year-to-date through 4Q:25.
Payment of dividends totaled $35.1 million year-to-date through 4Q:25. As previously announced, the Board of Directors declared a regular quarterly cash dividend of $0.04 per share, payable on March 10, 2026, to common stockholders of record at the close of business on February 10, 2026.
Share repurchases totaled $2.9 million year-to-date through 4Q:25, all of which related to tax withholding for restricted stock vesting.
Segment Operations (sequential comparisons versus the previous quarter)
Technical Services performs value-added completion, production and maintenance services directly to a customer's well. These services include pressure pumping, downhole tools, wireline, coiled tubing, cementing, and other offerings.
- Revenues were $405.2 million, down 4%
- Operating income was $8.5 million, down 65%
- Operating income was negatively impacted by approximately $8 million due to the transition to expensing wireline cables during the quarter. See Appendix A for additional details
Support Services provides equipment for customer use or services to assist customer operations, including rental tools, pipe inspection services and storage.
- Revenues were $20.5 million, down 18%
- Operating income was $1.7 million, down 63%
- Lower revenues were driven by decreased activity in rental tools, particularly in December
Three Months Ended Year Ended
December 31, September 30, December 31, December 31, December 31,
(In thousands) 2025 2025 2024 2025 2024
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues:
Technical Services $
405,244 $
422,206 $
314,635 $
1,536,048 $
1,326,005
Support Services 20,533 24,897 20,726 90,518 88,994
Total revenues $
425,777 $
447,103 $
335,361 $
1,626,566 $
1,414,999
Operating (loss) income:
Technical Services $
8,457 (1) $
24,448 $
10,603 $
68,031 $
89,101
Support Services 1,688 4,604 2,572 13,592 15,836
Corporate expenses (7,748) (5,348) (4,515) (24,771) (15,598)
Acquisition related employment costs (7,291) (6,467) (20,312)
Gain on disposition of assets, net 904 3,563 1,857 8,192 8,199
Total operating (loss) income $
(3,990) $
20,800 $
10,517 $
44,732 $
97,538
Interest expense (942) (949) (130) (3,029) (724)
Interest income 1,654 1,748 3,303 8,415 13,134
Other income, net 3,426 968 350 6,431 2,854
Income before income taxes $
148 $
22,567 $
14,040 $
56,549 $
112,802
(1) Beginning in the fourth quarter of 2025, wireline cables, previously capitalized and depreciated over 18 months, are now being expensed due to a change in their estimated useful lives. Wireline cable adjustments year-to-date totaled approximately $13.8 million: $4.7 million in second quarter, $4.5 million in the third quarter, and $4.6 million in the fourth quarter. Wireline cable purchase expenses are offset by a decrease in depreciation of $1.9 million in the second quarter, $2.5 million in the
third quarter and $1.0 million in the fourth quarter. The net year-to-date operating income impact was additional expense of $8.3 million comprised of $2.8 million in the second quarter, $2.0 million in the third quarter and $3.5 million in the third quarter.
Conference Call Information
RPC, Inc. will hold a conference call today, February 3, 2026, at 9:00 a.m. ET to discuss the results for the quarter. Interested parties may listen in by accessing a live webcast in the investor relations section of RPC, Inc.'s website at www.rpc.net. The live conference call can also be accessed by calling (800) 715-9871, or (646) 307-1963 for international callers, and using conference ID number 5388095. For those not able to attend the live conference call, a replay will be available in the investor relations section of RPC, Inc.'s website beginning approximately two hours after the call and for a period of 90 days.
About RPC
RPC provides a broad range of specialized oilfield services and equipment primarily to independent and major oilfield companies engaged in the exploration, production and development of oil and gas properties throughout the United States, including the Gulf of America, mid-continent, southwest, Appalachian and Rocky Mountain regions, and in selected international markets. RPC's investor website can be found at www.rpc.net.
Forward Looking Statements
Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements that look forward in time or express management's beliefs, expectations or hopes. In particular, such statements include, without limitation: our focus on disciplined execution, leveraging our strong brands and diversified offerings, our belief that the macro environment remains challenging, with crude oil prices showing increased volatility due to recent geopolitical developments, and our focus on delivering full cycle returns by maintaining cost discipline, deploying capital strategically, and positioning the company for long-term success. Risk factors that could cause such future events not to occur as expected include the following: the price of oil and natural gas and overall performance of the U.S. economy, both of which can impact capital spending by our customers and demand for our services; the impact of tariffs, which may increase our cost of materials and impact our profitability, business interruptions due to adverse weather conditions; changes in the competitive environment of our industry, including the potential impact of the recent U.S. actions in Venezuela; political instability in the petroleum-producing regions of the world; the actions of the OPEC oil cartel; our customers' drilling and production activities; and our ability to identify, complete and successfully integrate acquisitions and/or other strategic investments or transactions. Additional factors that could cause the actual results to differ materially from management's projections, forecasts, estimates, and expectations are contained in RPC's Form 10-K for the year ended December 31, 2024.
For information about RPC, Inc., please contact:
Joshua Large,
Vice President, Corporate Finance and Investor Relations
(404) 321-2152
jlarge@rpc.net
Michael L. Schmit,
Chief Financial Officer
(404) 321-2140
irdept@rpc.net
RPC INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data)
Year Ended
Three Months Ended
December 31, September 30, December 31, December 31, December 31,
2025 2025 2024 2025 2024
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
REVENUES $
425,777 $
447,103 $
335,361 $
1,626,566 $
1,414,999
COSTS AND EXPENSES:
Cost of revenues (exclusive of depreciation and amortization 336,568 334,673 250,248 1,232,882 1,036,648
shown separately below)
Selling, general and administrative expenses 47,687 44,628 41,249 175,639 156,437
Acquisition related employment costs 7,291 6,467 20,312
Depreciation and amortization 39,125 44,098 35,204 161,193 132,575
Gain on disposition of assets, net (904) (3,563) (1,857) (8,192) (8,199)
Operating (loss) income (3,990) 20,800 10,517 44,732 97,538
Interest expense (942) (949) (130) (3,029) (724)
Interest income 1,654 1,748 3,303 8,415 13,134
Other income, net 3,426 968 350 6,431 2,854
Income before income taxes 148 22,567 14,040 56,549 112,802
Income tax provision 3,209 9,604 1,278 24,469 21,358
NET (LOSS) INCOME $
(3,061) $
12,963 $
12,762 $
32,080 $
91,444
(LOSS) EARNINGS PER SHARE (1)
Basic $
(0.02) $
0.06 $
0.06 $
0.15 $
0.43
Diluted $
(0.02) $
0.06 $
0.06 $
0.15 $
0.43
WEIGHTED AVERAGE SHARES OUTSTANDING (2)
Basic 212,247 220,575 214,950 219,362 214,942
Diluted 212,247 220,575 214,950 219,362 214,942
(1) For the three months ended December 31, 2025, loss per share reflects a reduction of $0.01, due to the adjustment for earnings attributable to participating securities under the two-class method.
Participating securities are share-based payment awards with non-forfeitable rights to dividends.
(2) Average shares outstanding were reduced by 8,327 and 7,204 shares of participating securities for the three and twelve months ended December 31,2025, respectively, both under the two-class method and
because the inclusion of such securities would be anti-dilutive.
RPC INCORPORATED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, December 31,
2025 2024
(Unaudited)
ASSETS
Cash and cash equivalents $
209,974 $
325,975
Accounts receivable, net 327,668 276,577
Inventories 119,004 107,628
Income taxes receivable 6,302 4,332
Prepaid expenses 18,307 16,136
Other current assets 23,215 2,194
Total current assets 704,470 732,842
Property, plant and equipment, net 531,556 513,516
Operating lease right-of-use assets 24,094 27,465
Finance lease right-of-use assets 1,934 4,400
Goodwill 83,422 50,824
Other intangibles, net 97,499 13,843
Retirement plan assets 30,666
Other assets 25,410 12,933
Total assets $
1,468,385 $
1,386,489
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Accounts payable $
119,757 $
84,494
Accrued payroll and related expenses 38,636 25,243
Accrued insurance expenses 7,194 7,942
Accrued state, local and other taxes 3,543 3,234
Income taxes payable 787 446
Unearned revenue 13,233 45,376
Current portion of operating lease liabilities 7,606 7,108
Current portion of finance lease liabilities 977 3,522
Current portion of notes payable 20,000
Accrued expenses and other liabilities 5,419 4,548
Total current liabilities 217,152 181,913
Accrued insurance expenses 15,570 12,175
Retirement plan liabilities 24,539
Notes payable 30,000
Operating lease liabilities 17,762 21,724
Finance lease liabilities 1,041 559
Other long-term liabilities 10,814 9,099
Deferred income taxes 76,875 58,189
Total liabilities 369,214 308,198
STOCKHOLDERS' EQUITY
Common stock 22,057 21,494
Capital in excess of par value
Retained earnings 1,079,664 1,059,625
Accumulated other comprehensive loss (2,550) (2,828)
Total stockholders' equity 1,099,171 1,078,291
Total liabilities and stockholders' equity $
1,468,385 $
1,386,489
RPC INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Twelve months ended December 31, 2025 2024
(Unaudited)
OPERATING ACTIVITIES
Net income $
32,080 $
91,444
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 161,193 132,575
Acquisition related employment costs 20,312
Working capital (37,395) 116,663
Other operating activities 25,141 8,704
Net cash provided by operating activities 201,331 349,386
INVESTING ACTIVITIES
Capital expenditures (148,407) (219,930)
Proceeds from sale of assets 19,508 18,379
Purchase of business, net of cash and debt assumed (153,420)
Proceeds from benefit plan financing arrangement 33,096 2,380
Distribution from benefit plan financing arrangement (24,474) (2,380)
Net cash used for investing activities (273,697) (201,551)
FINANCING ACTIVITIES
Payment of dividends (35,122) (34,433)
Repayment of debt assumed at acquisition (4,502)
Cash paid for common stock purchased and retired (2,868) (9,938)
Cash paid for finance lease and finance obligations (1,143) (799)
Net cash used for financing activities (43,635) (45,170)
Net (decrease) increase in cash and cash equivalents (116,001) 102,665
Cash and cash equivalents at beginning of period 325,975 223,310
Cash and cash equivalents at end of period $
209,974 $
325,975
Non-GAAP Measures
RPC, Inc. has used the non-GAAP financial measures of adjusted revenues, adjusted operating income, adjusted net income, adjusted net income margin, adjusted earnings per share, adjusted EBITDA, adjusted EBITDA margin and free cash flow in today's earnings release. These measures should not be considered in isolation or as a substitute for performance or liquidity measures prepared in accordance with GAAP. Management believes that presenting these non-GAAP measures, other than free cash flow, enables investors to compare the operating performance of our core business consistently over various time periods, and in the case of Adjusted EBITDA, without regard to changes in our capital structure or changes in our accounting for purchases of wireline cables. Management believes that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating RPC's liquidity. Free cash flow should be considered in addition to, rather than as a substitute for, net cash provided by operating activities as a measure of our liquidity. Additionally, RPC's definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, management believes it is important to view free cash flow as a measure that provides supplemental information to our Condensed Consolidated Statements of Cash Flows.
A non-GAAP financial measure is a numerical measure of financial performance, financial position, or cash flows that either 1) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of operations, balance sheet or statement of cash flows, or 2) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented.
Set forth in the appendices below are reconciliations of these non-GAAP measures with their most directly comparable GAAP measures. These reconciliations also appear on RPC, Inc.'s investor website, which can be found at www.rpc.net.
Appendix A
(Unaudited)
Three Months Ended Year Ended
December 31, September
30, December 31, December 31, December 31,
(In thousands) 2025 2025 2024 2025 2024
Reconciliation of Operating (Loss) Income to
Adjusted Operating Income
Operating (loss) income $
(3,990) $
20,800 $
10,517 $
44,732 $
97,538
Wireline cable expenses 4,818 (1) (2,040) (2)
Acquisition related employment costs 7,291 6,467 20,312
Adjusted operating income $
8,119 $
25,226 $
10,517 $
65,044 $
97,538
(1) Beginning in the fourth quarter of 2025, wireline cables, previously capitalized and depreciated over 18 months, are now being expensed due to a change in their estimated useful lives. Wireline cable adjustments year-to-date totaled approximately $13.8 million: $4.7 million in second quarter, $4.5 million in the third quarter, and $4.6 million in the fourth quarter. Wireline cable purchase expenses are offset by a decrease in depreciation of $1.9 million in the second quarter, $2.5 million in the
third quarter and $1.0 million in the fourth quarter. The net year-to-date operating income impact was additional expense of $8.3 million comprised of $2.8 million in the second quarter, $2.0 million in the third quarter and $3.5 million in the third quarter. We have made an adjustment to add back the second and third quarter charges to the fourth quarter results in order to provide better comparability going forward.
(2) Third quarter operating income would have been negatively impacted by $2.0 million had wireline cables been expensed during the period instead of capitalized. This adjustment has been made to the third quarter presentation to provide better comparability to the fourth quarter.
Appendix B
(Unaudited)
Three Months Ended Year Ended
December 31, September 30, December 31, December 31, December 31,
(In thousands) 2025 2025 2024 2025 2024
Reconciliation of Net (Loss) Income to Adjusted Net Income
Net (loss) income $
(3,061) $
12,963 $
12,762 $
32,080 $
91,444
Adjustments:
Wireline cable expenses, before taxes (1) 4,818 (2,040) (2)
Tax effect of wireline cable expenses (1,132) 479
Acquisition related employment costs, before taxes (1) 7,291 6,467 20,312
Tax effect of Acquisition related employment costs (2,504) (1,051) (2,753)
Taxes on company owned life insurance liquidation 3,962 3,962
Total adjustments, net of tax 12,435 3,855 21,521
Adjusted net income $
9,373 $
16,818 $
12,762 $
53,601 $
91,444
(1) Beginning in the fourth quarter of 2025, wireline cables, previously capitalized and depreciated over 18 months, are now being expensed due to a change in their estimated useful lives. Wireline cable adjustments year-to-date totaled approximately $13.8 million: $4.7 million in second quarter, $4.5 million in the third quarter, and $4.6 million in the fourth quarter. Wireline cable purchase expenses are offset by a decrease in depreciation of $1.9 million in the second quarter, $2.5 million in the
third quarter and $1.0 million in the fourth quarter. The net year-to-date operating income impact was additional expense of $8.3 million comprised of $2.8 million in the second quarter, $2.0 million in the third quarter and $3.5 million in the third quarter. We have made an adjustment to add back the second and third quarter charges to the fourth quarter results in order to provide better comparability going forward.
(2) Third quarter net income would have been negatively impacted by $2.0 million had wireline cables been expensed during the period instead of capitalized. This adjustment has been made to the third quarter presentation to provide better comparability to the fourth quarter.
(Unaudited)
Three Months Ended Year Ended
December 31, September
30, December 31, December 31, December 31,
2025 2025 2024 2025 2024
Reconciliation of Diluted (Loss) Earnings Per Share to
Adjusted Diluted Earnings Per Share
Diluted (loss) earnings per share $
(0.02) $
0.06 $
0.06 $
0.15 $
0.43
Adjustments:
Wireline cable expenses, before taxes (1) 0.02 (2) (0.01) (3)
Tax effect of wireline cable expenses
Acquisition related employment costs, before taxes 0.03 0.03 0.09
Tax effect of Acquisition related employment costs (0.01) (0.01)
Taxes on company owned life insurance liquidation 0.02 0.02
Total adjustments, net of tax 0.06 0.02 0.10
Adjusted diluted earnings per share $
0.04 $
0.08 $
0.06 $
0.25 $
0.43
Weighted average shares outstanding (in thousands) 220,574 (2) 220,575 214,950 219,362 214,942
(1) Beginning in the fourth quarter of 2025, wireline cables, previously capitalized and depreciated over 18 months, are now being expensed due to a change in their estimated useful lives. Wireline cable adjustments year-to-date totaled approximately $13.8 million: $4.7 million in second quarter, $4.5 million in the third quarter, and $4.6 million in the fourth quarter. Wireline cable purchase expenses are offset by a decrease in depreciation of $1.9 million in the second quarter, $2.5 million in the
third quarter and $1.0 million in the fourth quarter. The net year-to-date operating income impact was additional expense of $8.3 million comprised of $2.8 million in the second quarter, $2.0 million in the third quarter and $3.5 million in the third quarter. We have made an adjustment to add back the second and third quarter charges to the fourth quarter results in order to provide better comparability going forward.
(2) Includes participating securities that were excluded in the computation of loss per share since they were anti-dilutive.
(3) Third quarter EPS would have been negatively impacted by ($0.01) had wireline cables been expensed during the period instead of capitalized. This adjustment has been made to the third quarter presentation to provide better comparability to the fourth quarter.
Appendix C
(Unaudited)
Three Months Ended Year Ended
December 31, September
30, December 31, December 31, December 31,
(In thousands) 2025 2025 2024 2025 2024
Reconciliation of Net Income to EBITDA and Adjusted
EBITDA, and Net Income Margin to Adjusted Net Income
Margin and Adjusted EBITDA Margin
Net (loss) income $
(3,061) $
12,963 $
12,762 $
32,080 $
91,444
Adjustments:
Add: Income tax provision 3,209 9,604 1,278 24,469 21,358
Add: Interest expense 942 949 130 3,029 724
Add: Depreciation and amortization 39,125 44,098 35,204 161,193 132,575
Less: Interest income 1,654 1,748 3,303 8,415 13,134
EBITDA $
38,561 $
65,866 $
46,071 $
212,356 $
232,967
Add: Wireline cable expenses 9,251 (2) (4,531) (3)
Add: Acquisition related employment costs 7,291 6,467 20,312
Adjusted EBITDA $
55,103 $
67,802 (3) $
46,071 $
232,668 $
232,967
Revenues $
425,777 $
447,103 $
335,361 $
1,626,566 $
1,414,999
Net (loss) income margin(1) (0.72) % 2.90 % 3.81 % 1.97 % 6.46 %
Adjusted net income margin(1) 2.20 % (2) 3.76 % 3.81 % 3.30 % 6.46 %
Adjusted EBITDA margin(1) 12.94 % (2) 15.16 % (3) 13.74 % 14.30 % 16.46 %
(1) Net income margin is calculated as Net income divided by Revenues. Adjusted net income margin is calculated as Adjusted net income divided by Revenues. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Revenues.
(2) Beginning in the fourth quarter of 2025, wireline cables, previously capitalized and depreciated over 18 months, are now being expensed due to a change in their estimated useful lives. Wireline cable adjustments year-to-date totaled approximately $13.8 million: $4.7 million in second quarter, $4.5 million in the third quarter, and $4.6 million in the fourth quarter. Wireline cable purchase expenses are offset by a decrease in depreciation of $1.9 million in the second quarter, $2.5 million in the
third quarter and $1.0 million in the fourth quarter. The net year-to-date operating income impact was additional expense of $8.3 million comprised of $2.8 million in the second quarter, $2.0 million in the third quarter and $3.5 million in the third quarter. We have made an adjustment to add back the second and third quarter charges to the fourth quarter results in order to provide better comparability going forward.
(3) Third quarter Adjusted EBITDA would have been negatively impacted by approximately $4.5 million had wireline cables been expensed in the period. Adjusted EBITDA would have been $67.8 million. This adjustment has been made to the third quarter presentation to provide better comparability to the fourth quarter.
Appendix D
(Unaudited) Twelve months ended December
31,
(In thousands) 2025 2024
Reconciliation of Operating Cash Flow to Free Cash Flow
Net cash provided by operating activities $
201,331 $
349,386
Capital expenditures (148,407) (219,930)
Free cash flow $
52,924 $
129,456
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SOURCE RPC, Inc.
