Quarterly and Annual Revenue Growth
Q4 revenue of $138.3M, up 3% sequentially and up 7% year-over-year; full year 2025 revenue $526.5M, slightly higher than 2024.
Service Revenue Strength
Service revenue (more international) was $107.0M in Q4, up 6% sequentially and 11% year-over-year; full year service revenue $399.4M, up 3% versus $388.2M in 2024.
Reservoir Description Outperformance
Reservoir Description Q4 revenue up ~5% sequentially (Q4 revenue cited as $92.3M for 2025 period), Q4 operating margin ex items at 14% (expanded ~60 bps sequentially); operating income ex items $12.7M and incremental margins ~27%.
Production Enhancement Year-over-Year Improvement
Production Enhancement revenue in Q4 was $46.0M, up over 8% year-over-year; Q4 operating margin ex items improved to 7% from 4% in 2024 (though down from Q3).
Capital Allocation and Shareholder Returns
Q4 repurchased >3,633,000 shares valued at $5.7M; full year repurchases $15.5M (1,200,000 shares). Company continues quarterly dividend and fifth consecutive quarter of buybacks.
Balance Sheet and Leverage Improvement
Long-term debt $113.0M, cash $22.8M, net debt $90.2M; net debt reduced by $18.7M in 2025 and reduced by $205.8M (≈70%) since 2019; year-end leverage ratio improved to 1.09.
Operational Wins and Technology Adoption
Multiple technical/commercial successes highlighted: advanced geomechanics/reservoir characterization projects in Colombia; Nitro Digital Rock Tomography work supporting a CCS project in Brazil; commercial expansion and award recognition for the Pulverizer system (2025 offshore well intervention global award); SpectraStim tracers validated plugless completion diagnostics.
Working Capital and Inventory Improvements
DSO improved to 69 days from 71 days sequentially; inventory decreased to $54.5M (down $3.7M QoQ) and inventory turns improved to 2.1 from 2.0.
Q1 2026 Guidance
Company guided Q1 2026 revenue $124M–$130M, operating income $9.7M–$12.2M (~9% operating margin); EPS guidance $0.11–$0.15; segment guidance: Reservoir Description revenue $82M–$86M (op income $6.8M–$8.2M); Production Enhancement revenue $42M–$44M (op income $2.8M–$3.8M).