Revenue growth remains stagnant with an 11.5% year-over-year decline in 2026Q1, while operating margins have deteriorated to -5.5% due to rigid SG&A expenses.
| Sales/Revenue | 154.71M | 159.63M | 154.45M | 152.03M | 129.56M | 77.38M |
| Revenue Growth % | -3.52% | 3.35% | 1.59% | 17.35% | 67.43% | - |
| Cost of Goods Sold | 54.88M | 68.57M | 62.32M | 55.87M | 52.71M | 23.63M |
| COGS % of Revenue | - | 42.96% | 40.35% | 36.75% | 40.69% | 30.54% |
| Gross Profit | 99.82M | 91.06M | 92.12M | 96.16M | 76.84M | 53.75M |
| Gross Margin % | 64.53% | 57.04% | 59.65% | 63.25% | 59.31% | 69.46% |
| Gross Profit Growth % | - | -1.16% | -4.2% | 25.14% | 42.96% | - |
| Operating Expenses | 89.57M | 82.24M | 78.69M | 68.26M | 51.57M | 60.03M |
| OpEx % of Revenue | - | 51.52% | 50.95% | 44.9% | 39.8% | 77.58% |
| Selling, General & Admin | 80.86M | 82.24M | 78.69M | 70.6M | 51.57M | 38.31M |
| SG&A % of Revenue | - | 51.52% | 50.95% | 46.44% | 39.8% | 49.51% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 0 | -2.34M | 0 | 21.72M |
| Operating Income | 10.25M | 8.82M | 13.43M | 27.9M | 25.28M | -6.28M |
| Operating Margin % | 6.63% | 5.52% | 8.69% | 18.35% | 19.51% | -8.11% |
| Operating Income Growth % | - | -34.34% | -51.87% | 10.37% | 502.69% | - |
| EBITDA | 37.75M | 36.11M | 37.26M | 48.25M | 44.99M | 15.44M |
| EBITDA Margin % | 24.4% | 22.62% | 24.12% | 31.74% | 34.72% | 19.96% |
| EBITDA Growth % | 2.6% | -3.09% | -22.78% | 7.26% | 191.34% | - |
| D&A (Non-Cash Add-back) | 27.49M | 27.29M | 23.83M | 20.35M | 19.71M | 21.72M |
| EBIT | 836K | 8.82M | 6.35M | 20.9M | 25.25M | 3.12M |
| Net Interest Income | -4.46M | -5.05M | -3.17M | -1.05M | -425K | -1.23M |
| Interest Income | 301K | 0 | 197K | 48K | 52K | 0 |
| Interest Expense | 4.76M | 5.05M | 3.37M | 1.1M | 477K | 1.23M |
| Other Income/Expense | -13.38M | -11.67M | -10.44M | -8.11M | -500K | 8.17M |
| Pretax Income | -3.12M | -2.86M | 2.98M | 19.79M | 24.78M | 1.89M |
| Pretax Margin % | -2.02% | -1.79% | 1.93% | 13.02% | 19.12% | 2.45% |
| Income Tax | 507K | 905K | -30K | 5.05M | 3.7M | -209K |
| Effective Tax Rate % | -16.23% | -31.69% | -1.01% | 25.49% | 14.92% | -11.05% |
| Net Income | -3.63M | -3.76M | 3.01M | 14.75M | 21.08M | 2.1M |
| Net Margin % | -2.35% | -2.36% | 1.95% | 9.7% | 16.27% | 2.72% |
| Net Income Growth % | -103.87% | -224.78% | -79.56% | -30.04% | 903.33% | - |
| Net Income (Continuing) | -3.63M | -3.76M | 3.01M | 14.75M | 21.08M | 2.1M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 14K | 12K | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.10 | -0.11 | 0.09 | 0.59 | 1.01 | -0.01 |
| EPS Growth % | -113.17% | -217.9% | -84.19% | -41.58% | - | - |
| EPS (Basic) | - | -0.11 | 0.09 | 0.50 | 1.66 | -0.01 |
| Diluted Shares Outstanding | 35.12M | 35.53M | 32.31M | 25.13M | 19.68M | 26.85M |
| Basic Shares Outstanding | 35.12M | 35.53M | 31.94M | 29.77M | 26.85M | 26.85M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Limited liquidity and utilization
According to the provided quarterly data, DTI's revenue has exhibited a contracting trend, with the most recent 2026Q1 figure of $38.0 million representing an 11.5% year-over-year decline, signaling significant headwinds in the company's core North American land-based drilling rental market and overall activity levels.
The revenue volatility suggests that DTI is highly susceptible to the cyclical nature of domestic rig counts, which currently appear to be providing little support for volume expansion. Investors should monitor whether the company's international expansion efforts can eventually offset the persistent weakness in its primary domestic revenue streams.
Based on reported financial statements, DTI's gross margin has fluctuated significantly, ranging from a high of 83.6% in 2024Q4 to a low of 56.0% in 2025Q4, indicating that the company's cost of goods sold is highly sensitive to operational utilization and potential tool maintenance cycles.
The wide variance in gross profitability suggests that DTI lacks the pricing power to fully insulate its margins from the high fixed-cost nature of its rental fleet. This instability warrants further investigation into whether the company is effectively managing its fleet refurbishment costs or if competitive pricing pressures are eroding the value-add of its specialized BHA components.
As reported in recent filings, DTI's operating margin has struggled to maintain positive territory, falling to -5.5% in 2026Q1, which suggests that the company's SG&A expenses are currently too rigid to scale effectively against the recent contraction in top-line revenue and gross profit generation.
The inability to achieve consistent operating profitability implies that the company's current administrative and logistical overhead is disproportionate to its current scale. This structural mismatch may indicate that the transition to a public entity has introduced persistent cost burdens that continue to weigh on the bottom line.
Based on DTI's reported figures, the company has struggled to convert gross profit into consistent net income, with a net margin of -2.36% and a recent net loss of $1.5 million in 2026Q1, highlighting the impact of non-operating costs and potential interest burdens on shareholder returns.
The divergence between gross profit and net income suggests that the company's bottom line is being heavily impacted by factors beyond core operational performance, such as administrative costs or financing expenses. Investors should remain cautious regarding the sustainability of earnings until the company can demonstrate a clear path to consistent net profitability.
As indicated by the company's financial data, DTI's cash position of $3.6 million appears insufficient given the capital-intensive nature of its rental business, raising concerns about the company's ability to fund necessary fleet maintenance or navigate prolonged periods of low drilling activity without seeking external financing.
The combination of negative net income and a thin cash buffer suggests that the company faces a narrow margin for error in its capital allocation strategy. This vulnerability may force management to prioritize liquidity preservation over growth investments, potentially hindering the company's ability to remain competitive in the specialized tool rental market.
Quick answers to the most common questions about buying DTI stock.
For fiscal year 2025, Drilling Tools International Corp. (DTI) reported total revenue of $159.6M. This represents a 106.3% increase compared to $77.4M in 2021.
Drilling Tools International Corp. (DTI) reported a net loss of $3.8M for the fiscal year ending 2025.
Drilling Tools International Corp. (DTI) reported an operating income of $8.8M, resulting in an operating profit margin of 5.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Drilling Tools International Corp. (DTI) generated $91.1M in gross profit for the year, representing a gross profit margin of 57.0%. This demonstrates the company's core pricing power and production efficiency.