Expects Continued Growth in 2026 Consolidated Revenue, Adjusted EBITDA and Adjusted Free Cash Flow
HOUSTON, March 5, 2026 /PRNewswire/ -- Drilling Tools International Corp., (NASDAQ: DTI) ("DTI" or the "Company"), a global oilfield services company that designs, engineers, manufactures and provides a differentiated, rental-focused offering of tools for use in onshore and offshore horizontal and directional drilling operations, as well as other cutting-edge solutions across the well life cycle, today reported its results for the twelve months and fourth quarter ended December 31, 2025.
For the twelve months of 2025, DTI generated total consolidated revenue of $159.6 million. 2025 Tool Rental revenue was $129.6 million and Product Sale revenue totaled approximately $30.1 million. Net Loss attributable to shareholders for 2025 was a loss of approximately $3.8 million or a loss of $0.11 per share. Adjusted Net Income(1) and Adjusted Diluted EPS(1) for 2025 were $3.4 million and $0.10 per diluted share, respectively. Adjusted EBITDA(1) was $39.3 million and Adjusted Free Cash Flow(1)(2) was $19.2 million. As of December 31, 2025, DTI had $3.6 million of cash and cash equivalents, and net debt of $42.2 million.
For the fourth quarter of 2025, DTI generated total consolidated revenue of $38.5 million. Fourth quarter Tool Rental revenue was $30.4 million, and Product Sales revenue totaled approximately $8.1 million. Net Income attributable to common stockholders for the fourth quarter was $1.2 million or $0.03 per share. Adjusted Net Income(1) was $1.5 million and Adjusted Diluted EPS(1) for the fourth quarter was $0.04 per diluted share, respectively. Fourth quarter Adjusted EBITDA(1) was $10.1 million and Adjusted Free Cash Flow(1)(2) was $6.1 million.
Wayne Prejean, President, Chief Executive Officer, and interim Chairman of the Board of Directors of DTI, stated, "Our strong fourth quarter results demonstrate our ability to consistently deliver favorable returns in the face of muted industry-wide activity levels. With the help of more moderate seasonality and budget exhaustion than historical trends would have indicated, we exceeded our internal expectations for the quarter and again generated meaningful free cash flow. Despite global rig count declining nearly 7% in 2025, we are pleased that our consistent operational performance and our team's ability to adapt to the ever-changing market environment enabled us to achieve the high-end of our guidance ranges. In addition, we have now grown annual free cash flow every year since going public, an achievement we take great pride in. This is a testament to the organization that we have built, the efficiency with which we operate and the significant demand for our tools.
"We also demonstrated prudent capital discipline in 2025 by simultaneously reducing debt and returning capital to shareholders through share buybacks. When the market softened mid-year, we were able to shift our focus away from growth capital expenditures and prioritize harvesting our cash flow. Leveraging this flexibility allowed us to pay down over $11 million of debt in the second half of the year and buy back, approximately, an additional $660,000 of common shares over the same period. This strategic decision brought down our net debt to trailing twelve-month Adjusted EBITDA multiple to a conservative 1.1x, even after recently completing four acquisitions," added Prejean.
"Throughout 2025, our Eastern Hemisphere operations experienced immense growth. This segment nearly doubled its revenue contribution to 14% of our total revenue, and we aim to build on this momentum in 2026. We continue to believe that the downhole drilling tool industry remains fragmented, is in need of consolidation, and we intend to continue being part of the solution. The energy landscape is constantly evolving, and we plan to actively pursue deals that improve our standing within the market.
"Looking forward, we expect overall activity, particularly in the first half of 2026, to remain relatively soft. However, we have identified several potential catalysts across multiple geographies that offer upside potential in the back half of the year. We have completed four acquisitions within the last 24 months and have added industry leading tools and technological solutions while penetrating new markets. This positions us well to generate resilient results despite the subdued US Land market conditions, and as anticipated activity levels improve, we expect that the work we have done to strengthen DTI will deliver meaningful financial improvement. As an indication of the solid foundation we have built, we are introducing our 2026 outlook ranges that reflect year-over-year growth at the midpoint," concluded Prejean.
2026 Full Year Outlook
Revenue $155 million -- $170 million
Adjusted EBITDA(1) $35 million -- $45 million
Adjusted EBITDA Margin(1) 23 % -- 26 %
Adjusted Free Cash Flow(1)(2) $17 million -- $22 million
(1) Adjusted Net Income (Loss), Adjusted Diluted EPS, Adjusted EBITDA,
Adjusted EBITDA Margin, Net Debt, and Adjusted Free Cash Flow are
non-GAAP financial measures. See "Non-GAAP Financial Measures" at the end
of this release for a discussion of reconciliations to the most directly
comparable financial measures calculated and presented in accordance with
U.S. generally accepted accounting principles ("GAAP").
(2) Adjusted Free Cash Flow is defined as Adjusted EBITDA less Gross Capital
Expenditures.
2025 Fourth Quarter Conference Call Information
DTI's 2025 fourth quarter conference call can be accessed live via dial-in or webcast on Friday, March 6, 2026 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) by dialing 201-389-0869 and asking for the DTI call at least 10 minutes prior to the start time, or via live webcast by logging onto the webcast at this URL address: https://investors.drillingtools.com/news-events/events. An audio replay will be available through March 13, 2026 by dialing 201-612-7415 and using passcode 13758213#. Also, an archive of the webcast will be available shortly after the call at https://investors.drillingtools.com/news-events/events for 90 days. Please submit any questions for management prior to the call via email to DTI@dennardlascar.com.
About Drilling Tools International Corp.
DTI is a Houston, Texas based leading oilfield services company that manufactures and rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas wells. With roots dating back to 1984, DTI operates from 15 service and support centers across North America and maintains 11 international service and support centers across the EMEA and APAC regions. To learn more about DTI, please visit: www.drillingtools.com.
Contact:
DTI Investor Relations
Ken Dennard / Natalie Hairston
InvestorRelations@drillingtools.com
Forward-Looking Statements
This press release may include, and oral statements made from time to time by representatives of the Company may include, "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements other than statements of historical fact included in this press release are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "will," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward looking. These forward-looking statements include, but are not limited to, statements regarding DTI and its management team's expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Forward-looking statements in this press release may include, for example, statements about: (1) the demand for DTI's products and services, which is influenced by the general level activity in the oil and gas industry; (2) DTI's ability to retain its customers, particularly those that contribute to a large portion of its revenue; (3) DTI's ability to employ and retain a sufficient number of skilled and qualified workers, including its key personnel; (4) DTI's ability to source tools and raw materials at a reasonable cost; (5) DTI's ability to market its services in a competitive industry; (6) DTI's ability to execute, integrate and realize the benefits of acquisitions, and manage the resulting growth of its business; (7) potential liability for claims arising from damage or harm caused by the operation of DTI's tools, or otherwise arising from the dangerous activities that are inherent in the oil and gas industry; (8) DTI's ability to obtain additional capital; (9) potential political, regulatory, economic and social disruptions in the countries in which DTI conducts business, including changes in tax laws or tax rates; (10) DTI's dependence on its information technology systems, in particular Customer Order Management Portal and Support System, for the efficient operation of DTI's business; (11) DTI's ability to comply with applicable laws, regulations and rules, including those related to the environment, greenhouse gases and climate change; (12) DTI's ability to maintain an effective system of disclosure controls and internal control over financial reporting; (13) the potential for volatility in the market price of DTI's common stock; (14) the impact of increased legal, accounting, administrative and other costs incurred as a public company, including the impact of possible shareholder litigation; (15) the potential for issuance of additional shares of DTI's common stock or other equity securities;
(16) DTI's ability to maintain the listing of its common stock on Nasdaq; and (17) other risks and uncertainties separately provided to you and indicated from time to time described in DTI's most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the Securities and Exchange Commission (the "SEC"). You should carefully consider the risks and uncertainties including those described in Part I, Item 1A -- "Risk Factors" of our Annual Report on Form 10-K filed on March 14, 2025 and in comparable "Risk Factor" sections of our Quarterly Reports on Form 10-Q filed after such Form 10-K. Such forward-looking statements are based on the beliefs of management of DTI, as well as assumptions made by, and information currently available to DTI's management and are subject to numerous conditions, many of which are beyond the control of DTI. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors detailed in DTI's most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the SEC. All subsequent written or oral forward-looking statements attributable to the Company or persons acting on its behalf are qualified in their entirety by this paragraph. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
Drilling Tools International Corp
Consolidated Statements of Comprehensive Income (Loss)
(In thousands of U.S. dollars and rounded)
Year Ended December 31,
----------------------------------------------------
2025 2024
------------------------- -------------------------
Revenue, net:
Tool rental $ 129,562 $ 117,926
Product sale 30,064 36,520
------------------------- -------------------------
Total revenue, net 159,626 154,446
Costs and other
deductions:
Cost of tool rental
revenue, exclusive
of depreciation and
amortization 28,911 24,110
Cost of product sale
revenue, exclusive
of depreciation and
amortization 12,369 14,381
Selling, general,
and administrative
expense 82,239 78,695
Depreciation and
amortization
expense 27,290 23,832
Interest expense,
net 5,053 3,369
Loss (gain) on asset
disposal 65 (60)
Loss (gain) on
remeasurement of
previously held
equity interest -- (368)
Goodwill impairment 1,901 --
Other operating and
non-operating
expense, net 4,654 7,503
Total costs and
other deductions 162,482 151,462
------------------------- -------------------------
Income (loss) before
income tax expense (2,856) 2,984
Income tax benefit
(expense) (905) 30
------------------------- -------------------------
Net income (loss) $ (3,761) $ 3,014
------------------------- -------------------------
Less: Net income
(loss) attributable
to non-controlling
interest -- --
------------------------- -------------------------
Net income (loss)
attributable to
Drilling Tools
International
stockholders $ (3,761) $ 3,014
========================= =========================
Basic earnings
(loss) per share $ (0.11) $ 0.09
========================= =========================
Diluted earnings
(loss) per share $ (0.11) $ 0.09
========================= =========================
Basic
weighted-average
common shares
outstanding 35,533,268 31,938,847
Diluted
weighted-average
common shares
outstanding 35,533,268 32,308,179
------------------------- -------------------------
Comprehensive income
(loss): 0
Net income (loss) $ (3,761) $ 3,014
Foreign currency
translation
adjustment, net of
tax 2,541 (1,652)
Net income (loss)
attributable to
non-controlling
interest -- --
------------------------- -------------------------
Net comprehensive
income (loss) $ (1,220) $ 1,362
========================= =========================
Drilling Tools International Corp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
(In thousands of U.S. dollars and rounded)
Three Months Ended December 31,
----------------------------------------------------
2025 2024
------------------------- -------------------------
Revenue, net:
Tool rental $ 30,414 $ 31,516
Product sale 8,094 8,330
------------------------- -------------------------
Total revenue, net 38,508 39,846
Costs and other
deductions:
Cost of tool rental
revenue, exclusive
of depreciation and
amortization 6,735 6,552
Cost of product sale
revenue, exclusive
of depreciation and
amortization 3,291 3,602
Selling, general,
and administrative
expense 19,193 21,280
Depreciation and
amortization
expense 6,904 6,600
Interest expense,
net 1,072 1,339
Loss (gain) on asset
disposal (5) 1
Loss (gain) on
remeasurement of
previously held
equity interest -- --
Goodwill impairment -- --
Other operating and
non-operating
expense, net 220 2,262
Total costs and
other deductions 37,410 41,636
------------------------- -------------------------
Income (loss) before
income tax expense 1,098 (1,790)
Income tax benefit
(expense) 119 445
------------------------- -------------------------
Net income (loss) $ 1,217 $ (1,345)
Less: Net income
(loss) attributable
to non-controlling
interest 1 --
------------------------- -------------------------
Net income (loss)
attributable to
Drilling Tools
International
stockholders $ 1,216 $ (1,345)
========================= =========================
Basic earnings
(loss) per share $ 0.03 $ (0.04)
========================= =========================
Diluted earnings
(loss) per share $ 0.03 $ (0.04)
========================= =========================
Basic
weighted-average
common shares
outstanding 35,196,495 34,704,696
Diluted
weighted-average
common shares
outstanding 35,257,536 34,704,696
------------------------- -------------------------
Comprehensive
income (loss):
Net income (loss) $ 1,217 $ (1,345)
Foreign currency
translation
adjustment, net of
tax 5 (2,405)
Net income (loss)
attributable to
non-controlling
interest 1 --
------------------------- -------------------------
Net comprehensive
income (loss) $ 1,223 $ (3,750)
========================= =========================
Drilling Tools International Corp
Consolidated Balance Sheets (Unaudited)
(In thousands of U.S. dollars and rounded)
December 31, December 31,
2025 2024
------------------------ ------------------------
ASSETS
Current assets
Cash $ 3,648 $ 6,185
Accounts
receivable, net 37,683 39,606
Related party note
receivable,
current 1,541 909
Inventories 18,149 17,502
Prepaid expenses
and other current
assets 3,866 3,874
------------------------ ------------------------
Total current assets 64,887 68,076
Property, plant and
equipment, net 72,602 75,571
Operating lease
right-of-use
asset 25,181 22,718
Intangible assets,
net 39,674 37,232
Goodwill 14,616 12,147
Deferred financing
costs, net 468 817
Related party note
receivable, less
current portion 3,836 4,262
Deposits and other
long-term assets 917 1,608
------------------------ ------------------------
Total assets $ 222,181 $ 222,431
======================== ========================
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 9,785 $ 11,983
Accrued expenses
and other current
liabilities 10,711 7,864
Current portion of
operating lease
liabilities 4,335 4,121
Current maturities
of long-term debt 5,989 6,995
------------------------ ------------------------
Total current
liabilities 30,820 30,963
Operating lease
liabilities, less
current portion 21,494 18,765
Revolving line of
credit 25,000 27,142
Long-term debt,
less current
portion 14,827 19,676
Deferred tax
liabilities, net 7,167 5,926
------------------------ ------------------------
Total liabilities 99,308 102,472
Commitments and
contingencies (See
Note 14)
Shareholders' equity
Common stock,
$0.0001 par value,
shares authorized
500,000,000 as of
December 31, 2025
and December 31,
2024, 35,661,297
issued and
outstanding as of
December 31, 2025
and 34,704,696
shares issued and
outstanding as of
December 31, 2024 4 3
Less: Treasury
stock at cost,
505,169 and 0
shares as of
December 31, 2025
and December 31,
2024,
respectively (1,265) --
Additional
paid-in-capital 130,801 125,415
Accumulated deficit (7,343) (3,582)
Accumulated other
comprehensive
income (loss) 664 (1,877)
------------------------ ------------------------
Total Drilling Tools
International
stockholder's equity 122,861 119,959
Non-controlling
interest 12 --
Total Equity 122,873 119,959
------------------------ ------------------------
Total liabilities and
shareholders' equity $ 222,181 $ 222,431
======================== ========================
Drilling Tools International Corp
Consolidated Statements of Cash Flows (Unaudited)
(In thousands of U.S. dollars and rounded)
Year Ended December 31,
--------------------------------------------------------------
2025 2024
------------------------------ ------------------------------
Cash flows from
operating
activities:
Net income (loss) $ (3,761) $ 3,014
Adjustments to
reconcile net income
(loss) to net cash
from operating
activities:
Depreciation and
amortization 27,290 23,832
Amortization of
deferred financing
costs 349 313
Non-cash lease
expense 5,519 5,121
Unrealized loss on
currency
remeasurement 194 225
Write off of
excess and
obsolete
inventory 797 --
Write off of
property and
equipment 720 --
Provision
(recovery) for
credit losses 584 424
Deferred tax
expense/(benefit) (539) (778)
Loss (gain) on sale
of property 59 (60)
Realized loss on
equity securities -- 12
Unrealized (gain)
loss on equity
securities -- (368)
Gain on sale of
lost-in-hole
equipment (11,591) (10,027)
Stock-based
compensation
expense 2,464 2,092
Interest income on
related party note
receivable (207) (151)
Goodwill impairment 1,901
Changes in operating
assets and
liabilities:
Accounts
receivable, net 4,026 (4,015)
Prepaid expenses
and other current
assets 1,993 874
Inventories, net 953 (4,320)
Operating lease
liabilities (4,871) (4,832)
Accounts payable (4,755) (78)
Accrued expenses
and other current
liabilities (1,202) (5,220)
Net cash flows from
operating activities 19,923 6,058
------------------------------ ------------------------------
Cash flows from
investing
activities:
Acquisition of a
business, net of
cash acquired (5,622) (47,258)
Proceeds from sale
of property and
equipment 38 79
Purchase of
property, plant
and equipment (20,147) (22,892)
Proceeds from sale
of lost-in-hole
equipment 14,154 15,253
Proceeds from sale
of equity
securities -- 1,244
Purchases of
intangible assets (1,693) (12)
------------------------------ ------------------------------
Net cash flows from
investing activities (13,270) (53,586)
------------------------------ ------------------------------
Cash flows from
financing
activities:
Investment from
non-controlling
interest into VIE 12 --
Purchase of
treasury stock (1,265) --
Payment of deferred
financing costs -- (722)
Proceeds from
revolving line of
credit 53,341 38,618
Payments on
revolving line of
credit (55,483) (11,476)
Repayment of
promissory note (903) --
Proceeds from term
loan -- 25,000
Payments on term
loan (5,000) (3,535)
Net cash flows from
financing activities (9,298) 47,885
------------------------------ ------------------------------
Effect of Changes in
Foreign Exchange
Rate 108 (175)
Net change in cash (2,537) 182
Cash at beginning of
period 6,185 6,003
------------------------------ ------------------------------
Cash at end of period $ 3,648 $ 6,185
============================== ==============================
Non-GAAP Financial Measures
This release includes Adjusted EBITDA, Adjusted Free Cash Flow, Net Debt, Adjusted Basic Earnings (Loss) Per Share, Adjusted Diluted Earnings (Loss) Per Share and Adjusted Net Income (Loss) measures. Each of the metrics are "non-GAAP financial measures" as defined in Regulation G of the Securities Exchange Act of 1934.
Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. Adjusted EBITDA is not a measure of net earnings or cash flows as determined by GAAP. We define Adjusted EBITDA as net earnings (loss) before interest, taxes, depreciation and amortization, further adjusted for (i) goodwill and/or long-lived asset impairment charges, (ii) stock-based compensation expense, (iii) restructuring charges, (iv) transaction and integration costs related to acquisitions and (v) other expenses or charges to exclude certain items that we believe are not reflective of ongoing performance of our business.
We believe Adjusted EBITDA and Adjusted EBITDA Margin is useful because it allows us to supplement the GAAP measures in order to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to our financing methods or capital structure. We exclude the items listed above in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP, or as an indicator of our operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA. Our computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies.
Adjusted Free Cash Flow is a supplemental non-GAAP financial measure, and we define Adjusted Free Cash Flow as Adjusted EBITDA less Gross Capital Expenditures. We use Adjusted Free Cash Flow as a financial performance measure used for planning, forecasting, and evaluating our performance. We believe that Adjusted Free Cash Flow is useful to enable investors and others to perform comparisons of current and historical performance of the Company. As a performance measure, rather than a liquidity measure, the most closely comparable GAAP measure is net income (loss).
Net Debt is a supplemental non-GAAP financial measure, and we define Net Debt as total debt less cash and cash equivalents. We use Net Debt to determine our outstanding debt obligations that would not be readily satisfied by our cash and cash equivalents on hand. We believe this metric is useful to analysts and investors in determining our leverage position since we have the ability to, and may decide to, use a portion of our cash and cash equivalents to reduce debt.
We define Adjusted Net Income (Loss) as consolidated net income (loss) adjusted for (i) goodwill and/or long-lived asset impairment charges, (ii) restructuring charges, (iii) transaction and integration costs related to acquisitions, (iv) income taxes expense which is calculated by applying our effective tax rate on unadjusted net income to adjusted pre-tax income, and (v) other expenses or charges to exclude certain items that we believe are not reflective of the ongoing performance of our business. We believe Adjusted Net Income (Loss) is useful because it allows us to exclude non-recurring items in evaluating our operating performance.
We define Adjusted Basic Earnings (Loss) and Adjusted Diluted Earnings (Loss) per share as the quotient of adjusted net income (loss) and diluted weighted average common shares. We believe that Adjusted Diluted Earnings (Loss) per share provides useful information to investors because it allows us to exclude non-recurring items in evaluating our operating performance on a diluted per share basis.
This release also includes certain projections of non-GAAP financial measures. Reconciliation of these items to net income include gains or losses on sale or consolidation transactions, accelerated depreciation, impairment charges, gains or losses on retirement of debt, variations in effective tax rate and fluctuations in net working capital, which are difficult to predict and estimate and are primarily dependent on future events.
The following tables present a reconciliation of the non-GAAP financial measures of Adjusted EBITDA, Adjusted Free Cash Flow and Adjusted Net Income to the most directly comparable GAAP financial measures for the periods indicated:
Drilling Tools International Corp
Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
(In thousands of U.S. dollars and rounded)
Year Ended December 31,
------------------------------------------------------------------------
2025 2024
----------------------------------- -----------------------------------
Net income (loss) $ (3,761) $ 3,014
Add (deduct):
Income tax
expense
(benefit) 905 (30)
Depreciation
and
amortization 27,290 23,832
Interest
expense, net 5,053 3,369
Stock option
expense 2,464 2,092
Management fees 750 750
Loss (gain) on
sale of
property 65 (60)
Loss (gain) on
remeasurement
of previously
held equity
interest -- (368)
Goodwill
impairment 1,901 --
Transaction
expense 1,155 7,036
Other operating
and
non-operating
expense, net 3,499 467
----------------------------------- -----------------------------------
Adjusted EBITDA $ 39,321 $ 40,102
=================================== ===================================
Drilling Tools International Corp
Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
(In thousands of U.S. dollars and rounded)
Three months ended December 31,
------------------------------------------------------------------------
2025 2024
----------------------------------- -----------------------------------
Net income (loss) $ 1,217 $ (1,345)
Add (deduct):
Income tax
expense
(benefit) (119) (445)
Depreciation
and
amortization 6,904 6,600
Interest
expense, net 1,072 1,339
Stock option
expense 644 520
Management fees 187 187
Loss (gain) on
sale of
property (5) 1
Loss (gain) on
remeasurement
of previously
held equity
interest -- --
Goodwill
impairment -- --
Transaction
expense 37 2,270
Other operating
and
non-operating
expense, net 182 (7)
----------------------------------- -----------------------------------
Adjusted EBITDA $ 10,119 $ 9,120
=================================== ===================================
Drilling Tools International Corp
Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
(In thousands of U.S. dollars and rounded)
Year Ended December 31,
------------------------------------------------------------------------
2025 2024
----------------------------------- -----------------------------------
Net income (loss) $ (3,761) $ 3,014
Add (deduct):
Income tax
expense
(benefit) 905 (30)
Depreciation
and
amortization 27,290 23,832
Interest
expense, net 5,053 3,369
Stock option
expense 2,464 2,092
Management fees 750 750
Loss (gain) on
sale of
property 65 (60)
Loss (gain) on
remeasurement
of previously
held equity
interest -- (368)
Goodwill
impairment 1,901 --
Transaction
expense 1,155 7,036
Other operating
and
non-operating
expense, net 3,499 467
Capital
expenditures (20,147) (22,892)
----------------------------------- -----------------------------------
Adjusted Free Cash
Flow $ 19,174 $ 17,210
=================================== ===================================
Three Months Ended December 31,
------------------------------------------------------------------------
2025 2024
----------------------------------- -----------------------------------
Net income (loss) $ 1,217 $ (1,345)
Add (deduct):
Income tax
expense
(benefit) (119) (445)
Depreciation
and
amortization 6,904 6,600
Interest
expense, net 1,072 1,339
Stock option
expense 644 520
Management fees 187 187
Loss (gain) on
sale of
property (5) 1
Loss (gain) on
remeasurement
of previously
held equity
interest -- --
Goodwill
impairment -- --
Transaction
expense 37 2,270
Other operating
and
non-operating
expense, net 182 (7)
Capital
expenditures (4,011) (3,214)
----------------------------------- -----------------------------------
Adjusted Free Cash
Flow $ 6,108 $ 5,906
=================================== ===================================
Drilling Tools International Corp
Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
(In thousands of U.S. dollars and rounded)
Year Ended December 31,
--------------------------------------------------------------------------
2025 2024
------------------------------------ ------------------------------------
Net income (loss) $ (3,761) $ 3,014
Transaction
expense 1,155 7,036
Goodwill
impairment 1,901 --
Restructuring
charges 1,814 --
Software
implementation 568 --
Income tax
expense
(benefit) 905 (30)
------------------------------------ ------------------------------------
Adjusted Income
Before Tax $ 2,582 $ 10,020
==================================== ====================================
Adjusted Income
tax expense
(benefit) (818) (101)
Adjusted Net Income
(loss) $ 3,400 $ 10,121
==================================== ====================================
Adjusted Basic
earnings (loss)
per share $ 0.10 $ 0.32
Adjusted Diluted
earnings (loss)
per share $ 0.10 $ 0.31
Basic
weighted-average
common shares
outstanding 35,533,268 31,938,847
Diluted
weighted-average
common shares
outstanding 35,617,481 32,308,179
Drilling Tools International Corp
Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
(In thousands of U.S. dollars and rounded)
Three Months Ended December 31,
--------------------------------------------------------------------------
2025 2024
------------------------------------ ------------------------------------
Net income (loss) $ 1,217 $ (1,345)
Transaction
expense 37 2,270
Goodwill
impairment -- --
Restructuring
charges 325 --
Software
implementation (73) --
Income tax
expense
(benefit) (119) (445)
------------------------------------ ------------------------------------
Adjusted Income
Before Tax $ 1,387 $ 480
==================================== ====================================
Adjusted Income
tax expense
(benefit) (150) 119
Adjusted Net Income
(loss) $ 1,537 $ 361
==================================== ====================================
Adjusted Basic
earnings (loss)
per share $ 0.04 $ 0.01
Adjusted Diluted
earnings (loss)
per share $ 0.04 $ 0.01
Basic
weighted-average
common shares
outstanding 35,196,495 34,704,696
Diluted
weighted-average
common shares
outstanding 35,257,536 34,704,696
Drilling Tools International Corp
Reconciliation of Estimated Consolidated Net
Income (Loss) to Adjusted EBITDA
(In thousands of U.S. dollars and rounded)
(Unaudited)
Twelve Months Ended December 31, 2026
Low High
-------------------- ------------------
Net income (loss) $ (500) $ 3,000
Add (deduct)
Interest expense, net 3,000 4,500
Income tax expense
(benefit) - 1,200
Depreciation and
amortization 28,000 30,000
Management fees 700 800
Other expense 800 1,500
Stock option expense 3,000 4,000
Goodwill impairment - -
Transaction expense - -
Adjusted EBITDA $ 35,000 $ 45,000
==================== ==================
Revenue 155,000 170,000
Adjusted EBITDA Margin 23 % 26 %
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March 05, 2026 16:15 ET (21:15 GMT)