Nine Energy Service Reports Modest Revenue Increase but Significant Net Loss Amid Bankruptcy Restructuring

Nine Energy Service, Inc. has reported its financial performance for the fiscal year ending December 31, 2025, revealing a modest increase in revenue but a significant net loss. The company generated total revenues of $561.9 million, a 1% increase from $554.1 million in 2024. This growth was primarily driven by a 6% rise in cementing revenue, which totaled $211.3 million, and a 4% increase in wireline revenue, amounting to $115.8 million. However, the overall financial results were negatively impacted by a 6% decline in coiled tubing revenue and a 1% decrease in tools revenue, leading to a net loss of $51.3 million, compared to a loss of $41.1 million in the previous year.

The company is currently undergoing a Chapter 11 bankruptcy process, having filed for protection on February 1, 2026. This restructuring aims to address its substantial debt obligations, which included $300 million in 2028 Notes and $63.3 million under a Prepetition ABL Facility as of December 31, 2025. The restructuring plan, which has been confirmed by the Bankruptcy Court, involves the cancellation of existing common stock and the issuance of new equity to holders of the 2028 Notes. The company anticipates emerging from bankruptcy on March 5, 2026, although this is contingent on meeting certain conditions.

Operationally, Nine Energy Service has faced challenges, including a decrease in customer demand and increased pricing pressures across its service lines. The company reported a total of 30,300 cementing jobs completed with an on-time rate of approximately 89%. As of December 31, 2025, Nine employed 1,072 full-time employees, a slight decrease from the previous year. The company operates in major U.S. basins, including the Permian and Bakken, and has a presence in Canada, which contributed to 5.2% of its revenue in 2025.

Looking ahead, Nine Energy Service's management has expressed uncertainty regarding future financial performance due to ongoing market volatility and the impact of the restructuring process. The company expects first-quarter 2026 revenue and earnings to decline compared to the fourth quarter of 2025, primarily due to operational inefficiencies and costs associated with the bankruptcy proceedings. The outlook remains cautious as the company navigates the complexities of its financial restructuring while aiming to stabilize its operations and regain market confidence.