NCS Multistage Holdings, Inc.

First-quarter revenue was $45.6 million, down 9% year over year and about $5 million below the midpoint of prior guidance. Adjusted gross profit was $18.2 million, with adjusted gross margin at 40% versus 44% in the year-ago quarter. Net loss was $0.4 million, or $0.14 per share, compared with net income of $4.1 million, or $1.51 per diluted share, last year. Adjusted EBITDA was $5.6 million, below the low end of guidance and down from $8.2 million a year ago. For cash flow, operating cash flow was $1.3 million and free cash flow was $0.7 million; cash was $34.5 million, debt was $7.2 million, and total liquidity was $53 million. For Q2 2026, management guided to revenue of $36 million-$39 million, adjusted gross margin of 35.5%-37.5%, adjusted EBITDA of breakeven to $2 million, and D&A of about $1.6 million. For full-year 2026, revenue guidance is $186 million-$194 million, adjusted EBITDA is $26 million-$29 million, capex is $2.2 million-$2.8 million, and free cash flow after JV distributions is expected at $11 million-$15 million.

Ryan Hummer framed the quarter as operationally mixed: the company missed on revenue, but converted several opportunities that should show up later in 2026 and beyond. He emphasized U.S. traction, including a large multi-well, multi-basin project and Repeat Precision’s growing adoption, while also pointing to offshore and international opportunities as longer-cycle growth drivers. His tone was constructive but measured, repeatedly noting that the guidance does not assume any upside from a higher oil-price environment.

Mike Morrison focused on the financial drivers behind the quarter: lower Canada activity and weaker higher-margin international service revenue pressured results, while U.S. revenue more than doubled and international product revenue rose 63%. He cited adjusted gross profit of $18.2 million and a 40% margin, SG&A of $15.7 million down 3%, other income of $1.9 million, and adjusted EBITDA of $5.6 million. He also highlighted a strong balance sheet with $34.5 million in cash, $7.2 million of finance-lease debt, and $53 million of total liquidity, then guided Q2 revenue, margin, EBITDA, and D&A, plus the full-year revenue, EBITDA, capex, and free cash flow ranges.

Analysts focused on whether Canada’s Q1 miss was a one-off and whether deferred work would return in the second half. Management said the miss was a combination of weather, an early spring breakup, deferred customer activity, and some drilling issues, and it expects much of that work to recover later in the year if customer budgets hold. Questions also centered on the deepwater opportunity, where management said it is working through final metallurgy and testing with the customer and regulators, targeting December delivery for the first well but acknowledging that it could slip into 2027. On margins and scaling, management said Q2 EBITDA compression is mostly due to seasonal gross margin pressure and the fixed-cost structure in cost of sales, with breakeven EBITDA roughly around $35 million of revenue.