Nine Energy Service Reports Q2 2026 Revenue Decline to $141.8 Million

Nine Energy Service, Inc. reported its financial results for the second quarter of 2026, revealing a total revenue of $141.8 million, a decrease from $147.3 million in the same quarter of the previous year. The company experienced a net loss of $4.9 million for the quarter, compared to a net loss of $10.4 million in the prior year. The decline in revenue was attributed to lower service revenues, particularly in the wireline segment, which saw a drop in completed stages. The company’s service revenue was $104.7 million, while product revenue was $37.1 million, reflecting a slight increase from the previous year.

In terms of operational performance, Nine Energy's total cementing revenue for the quarter was $55.3 million, with a utilization rate of 96%. The company reported approximately 28,000 completion tool stages and 6,400 wireline stages during the quarter. The overall cost of revenues was $121.9 million, leading to an operating loss of $2.9 million. General and administrative expenses increased to $15.6 million, up from $13.9 million in the prior year, primarily due to higher employee-related costs and professional fees.

The company has undergone significant changes following its emergence from bankruptcy in March 2026. As part of its restructuring plan, Nine Energy issued 13,949,990 shares of common stock to holders of its 2028 Notes, which were subsequently canceled. The restructuring has allowed Nine Energy to establish a new financial foundation, with total assets reported at $317.7 million and total liabilities at $188.1 million as of June 30, 2026. The company’s long-term debt was reduced to $97.3 million, down from $341.6 million at the end of 2025.

Looking ahead, Nine Energy anticipates that the average U.S. rig count will remain relatively flat to slightly increase in the third quarter of 2026, contingent on the sustainability of commodity prices. The company noted that while oil prices have been elevated, operators are maintaining disciplined capital spending. However, the company faces challenges, including inflationary pressures on costs and the need for maintenance on its coiled tubing units, which could impact revenue and profitability in the near term.

Overall, Nine Energy Service, Inc. is navigating a complex market environment post-bankruptcy, with a focus on stabilizing its operations and addressing cost pressures while seeking to capitalize on potential growth opportunities in the oil and gas sector.