Dawson Geophysical Reports Q3 Revenue Increase to $22.7 Million, Net Loss Improves

Dawson Geophysical Company reported its financial results for the third quarter and nine months ended September 30, 2025, revealing a total revenue of $22.7 million for the quarter, a significant increase from $14.4 million in the same period of 2024. For the nine-month period, total revenue was $48.7 million, down from $58.5 million year-over-year. The company experienced a notable rise in fee revenue, which reached $14.9 million in the third quarter, up 217.6% from $4.7 million in the prior year, primarily due to increased crew utilization. However, the overall decrease in nine-month revenue was attributed to a decline in reimbursable revenues, which fell by $9.1 million compared to the previous year.

In terms of profitability, Dawson Geophysical reported a net loss of $1.2 million for the third quarter, an improvement from a loss of $5.6 million in the same quarter of 2024. The nine-month net loss was $2.5 million, compared to a loss of $3.3 million in the prior year. The company’s operating expenses for the third quarter increased to $23.9 million, reflecting a rise in costs associated with higher crew utilization, while total operating costs for the nine months decreased by 17.8% to $51.2 million.

Strategically, Dawson Geophysical has made significant investments in new equipment, entering into an equipment purchase agreement with GTC, Inc. for approximately $24.2 million. As of September 30, 2025, the company had taken delivery of $10.4 million worth of equipment and issued two promissory notes totaling approximately $7.5 million. This acquisition is expected to enhance operational capabilities and improve service delivery. The company also reported a cash position of $5.1 million and a negative working capital balance of $3.3 million as of the end of the reporting period.

Operationally, Dawson Geophysical's U.S. operations saw a substantial increase in fee revenues, while Canadian operations also reported growth, with revenues rising to $166,000 in the third quarter from $11,000 a year earlier. The company’s total assets increased to $40.6 million from $30.9 million at the end of 2024, driven by investments in property and equipment. The employee headcount remained stable, with 31,047,801 shares of common stock outstanding as of November 10, 2025.

Looking ahead, Dawson Geophysical anticipates continued revenue growth as it ramps up operations in Canada and completes ongoing projects in the U.S. The company is focused on improving crew productivity and negotiating favorable contract terms to enhance profitability. However, it remains cautious about market conditions, particularly fluctuations in oil and natural gas prices, which significantly impact demand for its services. The company believes its current financial position and cash flows from operations will support its operational needs and capital expenditures moving forward.