Revenue growth remains in a contractionary phase, evidenced by a 13.6% year-over-year decline in 2026Q1 alongside a precarious 4.3% gross margin.
| Sales/Revenue | 541.44M | 561.91M | 554.1M | 609.53M | 593.38M | 349.42M | 310.85M | 832.94M | 827.17M | 543.66M | 282.35M | 478.52M |
| Revenue Growth % | -3.74% | 1.41% | -9.09% | 2.72% | 69.82% | 12.41% | -62.68% | 0.7% | 52.15% | 92.55% | -40.99% | - |
| Cost of Goods Sold | 495.01M | 501.75M | 493.51M | 531.41M | 497.34M | 353.01M | 351.06M | 738.89M | 703.11M | 510.69M | 310.45M | 440.74M |
| COGS % of Revenue | - | 89.29% | 89.06% | 87.18% | 83.81% | 101.03% | 112.93% | 88.71% | 85% | 93.94% | 109.95% | 92.1% |
| Gross Profit | 46.43M | 60.16M | 60.6M | 78.12M | 96.04M | -3.59M | -40.2M | 94.05M | 124.06M | 32.97M | -28.1M | 37.79M |
| Gross Margin % | 8.58% | 10.71% | 10.94% | 12.82% | 16.19% | -1.03% | -12.93% | 11.29% | 15% | 6.06% | -9.95% | 7.9% |
| Gross Profit Growth % | - | -0.72% | -22.43% | -18.66% | 2772.29% | 91.06% | -142.75% | -24.19% | 276.26% | 217.35% | -174.36% | - |
| Operating Expenses | 58.2M | 59.75M | 51.66M | 60.55M | 52.47M | 46.42M | 342.96M | 276.77M | 75.99M | 49.55M | 39.39M | 42.86M |
| OpEx % of Revenue | - | 10.63% | 9.32% | 9.93% | 8.84% | 13.29% | 110.33% | 33.23% | 9.19% | 9.11% | 13.95% | 8.96% |
| Selling, General & Admin | 58.2M | 59.75M | 51.3M | 59.82M | 51.65M | 45.3M | 49.35M | 81.33M | 75.99M | 49.55M | 39.39M | 42.86M |
| SG&A % of Revenue | - | 10.63% | 9.26% | 9.81% | 8.7% | 12.96% | 15.87% | 9.76% | 9.19% | 9.11% | 13.95% | 8.96% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.75M | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | 0.21% | - | - | - |
| Other Operating Expenses | 0 | 0 | 360K | 729K | 821K | 1.12M | 293.62M | 195.45M | 0 | 0 | 0 | 0 |
| Operating Income | -11.77M | 416K | 8.94M | 17.57M | 43.57M | -50.02M | -383.17M | -182.73M | -28.29M | -56.97M | -83.01M | -42.62M |
| Operating Margin % | -2.17% | 0.07% | 1.61% | 2.88% | 7.34% | -14.31% | -123.26% | -21.94% | -3.42% | -10.48% | -29.4% | -8.91% |
| Operating Income Growth % | - | -95.35% | -49.13% | -59.67% | 187.11% | 86.95% | -109.69% | -545.84% | 50.33% | 31.38% | -94.78% | - |
| EBITDA | 37.98M | 50.02M | 58.97M | 70.75M | 92.48M | 3.03M | -325.37M | -113.82M | 35.52M | 5.25M | -18.67M | 24.93M |
| EBITDA Margin % | 7.01% | 8.9% | 10.64% | 11.61% | 15.59% | 0.87% | -104.67% | -13.66% | 4.29% | 0.97% | -6.61% | 5.21% |
| EBITDA Growth % | -36.07% | -15.19% | -16.65% | -23.5% | 2956.34% | 100.93% | -185.87% | -420.41% | 575.97% | 128.15% | -174.9% | - |
| D&A (Non-Cash Add-back) | 49.75M | 49.6M | 50.03M | 53.18M | 48.92M | 53.04M | 57.8M | 68.91M | 63.81M | 62.22M | 64.34M | 67.54M |
| EBIT | -8.3M | 3.71M | 10.44M | 19.49M | 47.42M | -32.07M | -344.65M | -181.87M | -37.09M | -56.42M | -83.01M | -42.62M |
| Net Interest Income | -47.5M | -54.52M | -50.47M | -49.85M | -32.18M | -32.5M | -36.14M | -38.91M | -22.32M | -15.7M | -14.19M | -9.89M |
| Interest Income | 627K | 683K | 849K | 1.27M | 305K | 26K | 615K | 860K | 0 | 0 | 0 | 0 |
| Interest Expense | 48.13M | 55.21M | 51.32M | 51.12M | 32.49M | 32.53M | 36.76M | 39.77M | 22.32M | 15.7M | 14.19M | 9.89M |
| Other Income/Expense | 73.86M | -51.91M | -49.82M | -49.2M | -28.63M | -14.59M | 1.76M | -38.91M | -22.32M | -15.7M | -14.19M | -9.89M |
| Pretax Income | 62.1M | -51.49M | -40.88M | -31.63M | 14.94M | -64.6M | -381.41M | -221.64M | -50.61M | -72.67M | -97.2M | -52.51M |
| Pretax Margin % | 11.47% | -9.16% | -7.38% | -5.19% | 2.52% | -18.49% | -122.7% | -26.61% | -6.12% | -13.37% | -34.42% | -10.97% |
| Income Tax | -268K | -171K | 198K | 585K | 546K | -25K | -2.46M | -3.89M | 2.38M | -4.99M | -26.29M | -14.32M |
| Effective Tax Rate % | -0.43% | 0.33% | -0.48% | -1.85% | 3.65% | 0.04% | 0.64% | 1.75% | -4.69% | 6.86% | 27.04% | 27.28% |
| Net Income | 62.37M | -51.32M | -41.08M | -32.21M | 14.39M | -64.58M | -378.95M | -217.75M | -52.98M | -67.68M | -70.91M | -39.12M |
| Net Margin % | 11.52% | -9.13% | -7.41% | -5.28% | 2.43% | -18.48% | -121.91% | -26.14% | -6.41% | -12.45% | -25.11% | -8.17% |
| Net Income Growth % | 255.57% | -24.93% | -27.53% | -323.81% | 122.29% | 82.96% | -74.03% | -310.98% | 21.72% | 4.55% | -81.28% | - |
| Net Income (Continuing) | 62.37M | -51.32M | -41.08M | -32.21M | 14.39M | -64.58M | -378.95M | -217.75M | -52.98M | -67.68M | -70.91M | -38.18M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.44 | -1.25 | -1.11 | -0.97 | 0.45 | -2.13 | -12.74 | -7.43 | -2.17 | -2.92 | -3.30 | -1.82 |
| EPS Growth % | 233.96% | -12.61% | -14.43% | -315.56% | 121.13% | 83.28% | -71.47% | -242.4% | 25.68% | 11.52% | -81.32% | - |
| EPS (Basic) | - | -1.25 | -1.11 | -0.97 | 0.47 | -2.13 | -12.74 | -7.43 | -2.17 | -2.92 | -3.30 | -1.82 |
| Diluted Shares Outstanding | 43.33M | 40.92M | 37.17M | 33.28M | 32.25M | 30.3M | 29.74M | 29.31M | 24.41M | 23.18M | 21.49M | 21.49M |
| Basic Shares Outstanding | 43.33M | 40.92M | 37.17M | 33.28M | 30.93M | 30.3M | 29.74M | 29.31M | 24.41M | 23.18M | 21.49M | 21.49M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - |
Liquidity and solvency constraints
As indicated by the most recent quarterly data, NINE's revenue has experienced a consistent downward trend, culminating in a 13.6% year-over-year decline in 2026Q1, which underscores the company's sensitivity to the plateauing US rig count and reduced completion activity within the Permian Basin.
The persistent revenue decay suggests that the company is struggling to maintain market share in a highly transactional, project-based environment. Investors should monitor whether this trend reflects a broader structural decline in demand for the company's service-intensive lines or merely a temporary cyclical trough.
According to reported financial statements, NINE's gross margin has compressed to a precarious 4.3% in 2026Q1, highlighting the company's inability to effectively pass through inflationary input costs while maintaining competitive pricing in its commoditized cementing and wireline service segments.
The thin margin profile suggests that the company lacks the pricing power necessary to offset the high variable costs associated with its specialized tool and equipment fleet. This lack of buffer leaves the firm highly exposed to any further volatility in raw material prices or service demand.
Based on the provided income statement data, NINE's operating income has frequently dipped into negative territory, with a -4.7% operating margin in 2026Q1, demonstrating that the company has failed to achieve the necessary scale to cover its fixed SG&A and depreciation burdens.
The inability to scale operating income faster than gross profit suggests that the company's cost structure is overly rigid for its current revenue volume. This operational inefficiency warrants further investigation into whether management can rationalize its overhead without compromising its core technical service capabilities.
As observed in the 2026Q1 filings, NINE reported a net income of $106.6M despite operating losses, a figure that appears to be driven by non-operating items rather than core business performance, complicating the assessment of the company's true underlying profitability and long-term earnings sustainability.
The disconnect between operating losses and positive net income suggests that investors should be cautious of relying on headline net income as a proxy for operational health. Such anomalies often mask the underlying cash-burning nature of the business and require careful reconciliation against core operating cash flows.
While NINE maintains a niche technical leadership in dissolvable plug technology, the company's limited cash position of $19.8M, as noted in recent context, suggests a high risk of liquidity stress that could force dilutive financing or asset divestitures in the near term.
Short-sellers would likely focus on the company's inability to generate consistent positive net margins, which threatens its long-term viability in a capital-intensive industry. The potential for a tech-led re-rating remains speculative until the company can demonstrate a sustainable path to positive free cash flow.
Quick answers to the most common questions about buying NINE stock.
For fiscal year 2025, Nine Energy Service, Inc. (NINE) reported total revenue of $561.9M. This represents a 17.4% increase compared to $478.5M in 2015.
Nine Energy Service, Inc. (NINE) reported a net loss of $51.3M for the fiscal year ending 2025.
Nine Energy Service, Inc. (NINE) reported an operating income of $0.4M, resulting in an operating profit margin of 0.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Nine Energy Service, Inc. (NINE) generated $60.2M in gross profit for the year, representing a gross profit margin of 10.7%. This demonstrates the company's core pricing power and production efficiency.