NCS Multistage第二季轉虧461萬美元 續推進Weatherford合併

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Includes $2.7 million and $2.8 million of professional services related to strategic acquisition activities, including the Weatherford transaction, for the three and six months ended June 30, 2026, respectively. See “Note 1. Basis of Presentation, Weatherford Transaction” for additional information. 

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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

(Mark One)

 

☑ Quarterly Report Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

 

For the quarterly period ended June 30, 2026

 

OR

 

☐ Transition Report Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

 

For the transition period from   ______  to  ______

 

Commission file number: 001-38071

 

NCS Multistage Holdings, Inc.

(Exact name of registrant as specified in its charter)

 

  Delaware
   46-1527455
  

  (State or other jurisdiction of
 incorporation or organization)
   (IRS Employer
 Identification number)
  

     

  19350 State Highway 249, Suite 600
    

  Houston, Texas 
   77070
  

  (Address of principal executive offices)
   (Zip Code)
  

 

Registrant’s telephone number, including area code: (281) 453-2222

 

Securities registered pursuant to Section 12(b) of the Act:

 

 Title of each class
 Trading Symbol(s)
 Name of each exchange on which registered
 

 Common Stock, $0.01 par value
 NCSM
 Nasdaq Capital Market
 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes ☑   No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes ☑   No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

  Large accelerated filer
 ☐
 Accelerated filer
 ☐
  

  Non-accelerated filer
 ☑  
 Smaller reporting company
 ☑
  

    Emerging growth company
 ☐
  

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes ☐   No ☑

 

As of July 28, 2026, there were 2,624,523 shares of common stock outstanding.

 

 
 
 
  
 

 

 

 
 
 
 
 Table of Contents
 

 

 

 

 
  
 

 
 TABLE OF CONTENTS

  

 
 
 
  
  
 Page
 
 

 
 PART I. FINANCIAL INFORMATION
 
 

 
  
  
  
 

 
 Item 1.
 
 Financial Statements (Unaudited)
 
  
 

 
  
 Condensed Consolidated Balance Sheets
 
 3
 
 

 
  
 Condensed Consolidated Statements of Operations
 
 4
 
 

 
  
 Condensed Consolidated Statements of Comprehensive (Loss) Income
 
 5
 
 

 
  
 Condensed Consolidated Statements of Stockholders’ Equity
 
 6
 
 

 
  
 Condensed Consolidated Statements of Cash Flows
 
 7
 
 

 
  
 Notes to Unaudited Condensed Consolidated Financial Statements
 
 8
 
 

 
  
  
  
 

 
 Item 2.
 
 Management’s Discussion and Analysis of Financial Condition and Results of Operations
 
 22
 
 

 
  
  
  
 

 
 Item 3.
 
 Quantitative and Qualitative Disclosures About Market Risk
 
 38
 
 

 
  
  
  
 

 
 Item 4.
 
 Controls and Procedures
 
 38
 
 

 
  
  
  
 

 
 PART II. OTHER INFORMATION
 
 

 
  
  
  
 

 
 Item 1.
 
 Legal Proceedings
 
 39
 
 

 
  
  
  
 

 
 Item 1A.
 
 Risk Factors
 
 39
 
 

 
  
  
  
 

 
 Item 5.
 Other Information
 40
 

 
  
  
  
 

 
 Item 6.
 
 Exhibits
 
 41
 
 

 
  
  
  
 

 
 Signatures
 
  
 42
 
 

 
 
 
  
 

  

 
 
 
 
 2
 

 

 

 
 
 
 
 Table of Contents
 

 

 

 

  

 

 
  
 

 PART I. FINANCIAL INFORMATION

 ITEM 1.  Financial Statements

 NCS MULTISTAGE HOLDINGS, INC.

 CONDENSED CONSOLIDATED BALANCE SHEETS

 (In thousands, except share data)

 (Unaudited)

  

 
    June 30,
    December 31,
  

   2026
    2025
  

 Assets
         

 Current assets
         

 Cash and cash equivalents
  $31,318  $36,725 

 Accounts receivable—trade, net
   33,101   40,507 

 Inventories, net
   44,544   39,011 

 Prepaid expenses and other current assets
   2,986   2,031 

 Other current receivables
   5,486   3,644 

 Total current assets
   117,435   121,918 

 Noncurrent assets
         

 Property and equipment, net
   19,568   19,849 

 Goodwill
   16,387   16,387 

 Identifiable intangibles, net
   5,384   5,989 

 Operating lease assets
   4,857   4,817 

 Deposits and other assets
   1,889   586 

 Deferred income taxes, net
   12,036   11,653 

 Total noncurrent assets
   60,121   59,281 

 Total assets
  $177,556  $181,199 

 Liabilities and Stockholders’ Equity
         

 Current liabilities
         

 Accounts payable—trade
  $12,879  $8,517 

 Accrued expenses
   7,129   9,461 

 Income taxes payable
   841   1,151 

 Operating lease liabilities
   1,732   1,587 

 Contingent purchase consideration
   —   1,250 

 Current maturities of long-term debt
   2,326   2,385 

 Other current liabilities
   2,605   4,175 

 Total current liabilities
   27,512   28,526 

 Noncurrent liabilities
         

 Long-term debt, less current maturities
   5,195   5,259 

 Operating lease liabilities, long-term
   3,527   3,716 

 Other long-term liabilities
   197   202 

 Deferred income taxes, net
   375   398 

 Total noncurrent liabilities
   9,294   9,575 

 Total liabilities
   36,806   38,101 

 Commitments and contingencies (Note 11)
           

 Stockholders’ equity
         

 Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued and outstanding at June 30, 2026 and December 31, 2025
   —   — 

 Common stock, $0.01 par value, 11,250,000 shares authorized, 2,719,733 shares issued and 2,624,523 shares outstanding at June 30, 2026 and 2,613,603 shares issued and 2,545,535 shares outstanding at December 31, 2025
   27   26 

 Additional paid-in capital
   451,015   449,890 

 Accumulated other comprehensive loss
   (87,236)  (86,132)

 Retained deficit
   (240,253)  (235,276)

 Treasury stock, at cost, 95,210 shares at June 30, 2026 and 68,068 shares at December 31, 2025
   (3,343)  (2,269)

 Total stockholders' equity
   120,210   126,239 

 Non-controlling interest
   20,540   16,859 

 Total equity
   140,750   143,098 

 Total liabilities and equity
  $177,556  $181,199 

 

  

 The accompanying notes are an integral part of these condensed consolidated financial statements.

  

 
 
 
 
 3
 

 

 

 
 
 
 
 Table of Contents
 

 

 

 

 
  
 

  

 NCS MULTISTAGE HOLDINGS, INC.

 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 (In thousands, except per share data)

 (Unaudited)

  

 
 
 
 
  
  
 Three Months Ended
 
  
  
 Six Months Ended
 
  
 

 
  
  
 June 30,
 
  
  
 June 30,
 
  
 

 
  
  
 2026
 
  
  
 2025
 
  
  
 2026
 
  
  
 2025
 
  
 

 
 Revenues
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 Product sales
 
  
 $
 27,678
  
  
 $
 27,776
  
  
 $
 60,261
  
  
 $
 62,842
  
 

 
 Services
 
  
  
 10,686
  
  
  
 8,678
  
  
  
 23,740
  
  
  
 23,617
  
 

 
 Total revenues
 
  
  
 38,364
  
  
  
 36,454
  
  
  
 84,001
  
  
  
 86,459
  
 

 
 Cost of sales
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 Cost of product sales, exclusive of depreciation and amortization expense shown below
 
  
  
 18,059
  
  
  
 18,214
  
  
  
 37,788
  
  
  
 38,566
  
 

 
 Cost of services, exclusive of depreciation and amortization expense shown below
 
  
  
 6,358
  
  
  
 5,242
  
  
  
 14,095
  
  
  
 13,040
  
 

 
 Total cost of sales, exclusive of depreciation and amortization expense shown below
 
  
  
 24,417
  
  
  
 23,456
  
  
  
 51,883
  
  
  
 51,606
  
 

 
 Selling, general and administrative expenses
 
  
  
 17,958
  
  
  
 13,626
  
  
  
 33,686
  
  
  
 29,821
  
 

 
 Depreciation
 
  
  
 1,289
  
  
  
 1,235
  
  
  
 2,582
  
  
  
 2,439
  
 

 
 Amortization
 
  
  
 303
  
  
  
 167
  
  
  
 605
  
  
  
 334
  
 

 
 (Loss) income from operations
 
  
  
 (5,603
 )
  
  
 (2,030
 )
  
  
 (4,755
 )
  
  
 2,259
  
 

 
 Other income (expense)
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 Interest expense, net
 
  
  
 (84
 )
  
  
 (68
 )
  
  
 (110
 )
  
  
 (110
 )
 

 
 Other income, net
 
  
  
 1,558
  
  
  
 1,563
  
  
  
 3,421
  
  
  
 2,446
  
 

 
 Foreign currency exchange (loss) gain
 
  
  
 (275
 )
  
  
 1,201
  
  
  
 (385
 )
  
  
 1,198
  
 

 
 Total other income
 
  
  
 1,199
  
  
  
 2,696
  
  
  
 2,926
  
  
  
 3,534
  
 

 
 (Loss) income before income tax
 
  
  
 (4,404
 )
  
  
 666
  
  
  
 (1,829
 )
  
  
 5,793
  
 

 
 Income tax benefit
 
  
  
 (1,367
 )
  
  
 (1,032
 )
  
  
 (533
 )
  
  
 (359
 )
 

 
 Net (loss) income
 
  
  
 (3,037
 )
  
  
 1,698
  
  
  
 (1,296
 )
  
  
 6,152
  
 

 
 Net income attributable to non-controlling interest
 
  
  
 1,569
  
  
  
 774
  
  
  
 3,681
  
  
  
 1,172
  
 

 
 Net (loss) income attributable to NCS Multistage Holdings, Inc.
 
  
 $
 (4,606
 )
  
 $
 924
  
  
 $
 (4,977
 )
  
 $
 4,980
  
 

 
 (Loss) earnings per common share
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 Basic (loss) earnings per common share attributable to NCS Multistage Holdings, Inc.
 
  
 $
 (1.71
 )
  
 $
 0.36
  
  
 $
 (1.87
 )
  
 $
 1.93
  
 

 
 Diluted (loss) earnings per common share attributable to NCS Multistage Holdings, Inc.
 
  
 $
 (1.71
 )
  
 $
 0.34
  
  
 $
 (1.87
 )
  
 $
 1.84
  
 

 
 Weighted average common shares outstanding
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 Basic
 
  
  
 2,687
  
  
  
 2,594
  
  
  
 2,658
  
  
  
 2,581
  
 

 
 Diluted
 
  
  
 2,687
  
  
  
 2,734
  
  
  
 2,658
  
  
  
 2,704
  
 

 
 
 

  

 The accompanying notes are an integral part of these condensed consolidated financial statements.

  

 
 
 
 
 4
 

 

 

 
 
 
 
 Table of Contents
 

 

 

 

 
  
 

  

 NCS MULTISTAGE HOLDINGS, INC.

 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

 (In thousands)

 (Unaudited)

  

 
    Three Months Ended
    Six Months Ended
  

   June 30,
    June 30,
  

   2026
    2025
    2026
    2025
  

 Net (loss) income
  $(3,037) $1,698  $(1,296) $6,152 

 Foreign currency translation adjustments, net of tax of $0
   (653)  1,699   (1,104)  1,688 

 Comprehensive (loss) income
   (3,690)  3,397   (2,400)  7,840 

 Less: Comprehensive income attributable to non-controlling interest
   1,569   774   3,681   1,172 

 Comprehensive (loss) income attributable to NCS Multistage Holdings, Inc.
  $(5,259) $2,623  $(6,081) $6,668 

 

  

 The accompanying notes are an integral part of these condensed consolidated financial statements.

  

 
 
 
 
 5
 

 

 

 
 
 
 
 Table of Contents
 

 

 

 

 
  
 

  

 NCS MULTISTAGE HOLDINGS, INC.

 CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY 

 (In thousands, except share data)

 (Unaudited)

  

 
 
 
 
  
  
 Three and Six Months Ended June 30, 2026
 
  
 

 
  
  
 Preferred Stock
 
  
  
 Common Stock
 
  
  
 Additional
 Paid-In
 
  
  
 Accumulated
 Other
 Comprehensive
 
  
  
 Retained
 
  
  
 Treasury Stock
 
  
  
 Non-controlling
 
  
  
 Total
 Stockholders' 
 
  
 

 
  
  
 Shares
 
  
  
 Amount
 
  
  
 Shares
 
  
  
 Amount
 
  
  
 Capital
 
  
  
 Loss
 
  
  
 Deficit
 
  
  
 Shares
 
  
  
 Amount
 
  
  
 Interest
 
  
  
 Equity
 
  
 

 
 Balances as of December 31, 2025
 
  
  
 —
  
  
 $
 —
  
  
  
 2,613,603
  
  
 $
 26
  
  
 $
 449,890
  
  
 $
 (86,132
 )
  
 $
 (235,276
 )
  
  
 (68,068
 )
  
 $
 (2,269
 )
  
 $
 16,859
  
  
 $
 143,098
  
 

 
 Share-based compensation
 
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 490
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 490
  
 

 
 Net (loss) income
 
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 (371
 )
  
  
 —
  
  
  
 —
  
  
  
 2,112
  
  
  
 1,741
  
 

 
 Vesting of restricted stock
 
  
  
 —
  
  
  
 —
  
  
  
 106,130
  
  
  
 1
  
  
  
 (1
 )
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
 

 
 Shares withheld
 
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 (27,142
 )
  
  
 (1,074
 )
  
  
 —
  
  
  
 (1,074
 )
 

 
 Currency translation adjustment
 
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 (451
 )
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 (451
 )
 

 
 Balances as of March 31, 2026
 
  
  
 —
  
  
 $
 —
  
  
  
 2,719,733
  
  
 $
 27
  
  
 $
 450,379
  
  
 $
 (86,583
 )
  
 $
 (235,647
 )
  
  
 (95,210
 )
  
 $
 (3,343
 )
  
 $
 18,971
  
  
 $
 143,804
  
 

 
 Share-based compensation
 
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 636
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 636
  
 

 
 Net (loss) income
 
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 (4,606
 )
  
  
 —
  
  
  
 —
  
  
  
 1,569
  
  
  
 (3,037
 )
 

 
 Currency translation adjustment
 
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 (653
 )
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 (653
 )
 

 
 Balances as of June 30, 2026
 
  
  
 —
  
  
 $
 —
  
  
  
 2,719,733
  
  
 $
 27
  
  
 $
 451,015
  
  
 $
 (87,236
 )
  
 $
 (240,253
 )
  
  
 (95,210
 )
  
 $
 (3,343
 )
  
 $
 20,540
  
  
 $
 140,750
  
 

 
 
 

  

 
 
 
 
  
  
 Three and Six Months Ended June 30, 2025
 
  
 

 
  
  
 Preferred Stock
 
  
  
 Common Stock
 
  
  
 Additional
 Paid-In
 
  
  
 Accumulated
 Other
 Comprehensive
 
  
  
 Retained
 
  
  
 Treasury Stock
 
  
  
 Non-controlling
 
  
  
 Total
 Stockholders' 
 
  
 

 
  
  
 Shares
 
  
  
 Amount
 
  
  
 Shares
 
  
  
 Amount
 
  
  
 Capital
 
  
  
 Loss
 
  
  
 Deficit
 
  
  
 Shares
 
  
  
 Amount
 
  
  
 Interest
 
  
  
 Equity
 
  
 

 
 Balances as of December 31, 2024
 
  
  
 —
  
  
 $
 —
  
  
  
 2,563,979
  
  
 $
 26
  
  
 $
 447,384
  
  
 $
 (87,604
 )
  
 $
 (259,024
 )
  
  
 (56,549
 )
  
 $
 (1,943
 )
  
 $
 17,270
  
  
 $
 116,109
  
 

 
 Share-based compensation
 
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 552
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 552
  
 

 
 Net income
 
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 4,056
  
  
  
 —
  
  
  
 —
  
  
  
 398
  
  
  
 4,454
  
 

 
 Vesting of restricted stock
 
  
  
 —
  
  
  
 —
  
  
  
 43,383
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
 

 
 Shares withheld
 
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 (9,964
 )
  
  
 (268
 )
  
  
 —
  
  
  
 (268
 )
 

 
 Currency translation adjustment
 
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 (11
 )
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 (11
 )
 

 
 Balances as of March 31, 2025
 
  
  
 —
  
  
 $
 —
  
  
  
 2,607,362
  
  
 $
 26
  
  
 $
 447,936
  
  
 $
 (87,615
 )
  
 $
 (254,968
 )
  
  
 (66,513
 )
  
 $
 (2,211
 )
  
 $
 17,668
  
  
 $
 120,836
  
 

 
 Share-based compensation
 
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 646
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 646
  
 

 
 Net income
 
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 924
  
  
  
 —
  
  
  
 —
  
  
  
 774
  
  
  
 1,698
  
 

 
 Distribution to noncontrolling interest
 
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 (900
 )
  
  
 (900
 )
 

 
 Currency translation adjustment
 
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 1,699
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 1,699
  
 

 
 Balances as of June 30, 2025
 
  
  
 —
  
  
 $
 —
  
  
  
 2,607,362
  
  
 $
 26
  
  
 $
 448,582
  
  
 $
 (85,916
 )
  
 $
 (254,044
 )
  
  
 (66,513
 )
  
 $
 (2,211
 )
  
 $
 17,542
  
  
 $
 123,979
  
 

 
 
 

  

 The accompanying notes are an integral part of these condensed consolidated financial statements.

  

 
 
 
 
 6
 

 

 

 
 
 
 
 Table of Contents
 

 

 

 

 
  
 

  

 NCS MULTISTAGE HOLDINGS, INC.

 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 

 (In thousands)

 (Unaudited)

  

 
 
 
 
  
  
 Six Months Ended
 
  
 

 
  
  
 June 30,
 
  
 

 
  
  
 2026
 
  
  
 2025
 
  
 

 
 Cash flows from operating activities
 
  
  
  
  
  
  
  
  
 

 
 Net (loss) income
 
  
 $
 (1,296
 )
  
 $
 6,152
  
 

 
 Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
 
  
  
  
  
  
  
  
  
 

 
 Depreciation and amortization
 
  
  
 3,187
  
  
  
 2,773
  
 

 
 Amortization of deferred loan costs
 
  
  
 124
  
  
  
 104
  
 

 
 Share-based compensation
 
  
  
 2,551
  
  
  
 2,837
  
 

 
 Provision for inventory obsolescence
 
  
  
 286
  
  
  
 191
  
 

 
 Deferred income tax benefit
 
  
  
 (439
 )
  
  
 (1,398
 )
 

 
 Gain on sale of property and equipment
 
  
  
 (84
 )
  
  
 (475
 )
 

 
 Provision for credit losses
 
  
  
 —
  
  
  
 19
  
 

 
 Net foreign currency unrealized loss (gain)
 
  
  
 264
  
  
  
 (1,854
 )
 

 
 Changes in operating assets and liabilities:
 
  
  
  
  
  
  
  
  
 

 
 Accounts receivable—trade
 
  
  
 6,992
  
  
  
 (1,827
 )
 

 
 Inventories, net
 
  
  
 (6,675
 )
  
  
 (1,476
 )
 

 
 Prepaid expenses and other assets
 
  
  
 (2,227
 )
  
  
 972
  
 

 
 Accounts payable—trade
 
  
  
 4,384
  
  
  
 1,719
  
 

 
 Accrued expenses
 
  
  
 (2,262
 )
  
  
 (1,680
 )
 

 
 Other liabilities
 
  
  
 (3,908
 )
  
  
 (4,101
 )
 

 
 Income taxes receivable/payable
 
  
  
 (1,533
 )
  
  
 (80
 )
 

 
 Net cash (used in) provided by operating activities
 
  
  
 (636
 )
  
  
 1,876
  
 

 
 Cash flows from investing activities
 
  
  
  
  
  
  
  
  
 

 
 Purchases of property and equipment
 
  
  
 (1,084
 )
  
  
 (745
 )
 

 
 Purchase and development of software and technology
 
  
  
 (68
 )
  
  
 —
  
 

 
 Proceeds from sales of property and equipment
 
  
  
 144
  
  
  
 271
  
 

 
 Net cash used in investing activities
 
  
  
 (1,008
 )
  
  
 (474
 )
 

 
 Cash flows from financing activities
 
  
  
  
  
  
  
  
  
 

 
 Payments on finance leases
 
  
  
 (1,216
 )
  
  
 (1,072
 )
 

 
 Line of credit borrowings
 
  
  
 8,355
  
  
  
 2,338
  
 

 
 Payments of line of credit borrowings
 
  
  
 (8,355
 )
  
  
 (2,338
 )
 

 
 Payment of contingent consideration
 
  
  
 (1,250
 )
  
  
 —
  
 

 
 Treasury shares withheld
 
  
  
 (1,074
 )
  
  
 (268
 )
 

 
 Distribution to noncontrolling interest
 
  
  
 —
  
  
  
 (900
 )
 

 
 Net cash used in financing activities
 
  
  
 (3,540
 )
  
  
 (2,240
 )
 

 
 Effect of exchange rate changes on cash and cash equivalents
 
  
  
 (223
 )
  
  
 330
  
 

 
 Net change in cash and cash equivalents
 
  
  
 (5,407
 )
  
  
 (508
 )
 

 
 Cash and cash equivalents beginning of period
 
  
  
 36,725
  
  
  
 25,880
  
 

 
 Cash and cash equivalents end of period
 
  
 $
 31,318
  
  
 $
 25,372
  
 

 
 Noncash investing and financing activities
 
  
  
  
  
  
  
  
  
 

 
 Assets obtained in exchange for new finance lease liabilities
 
  
 $
 1,287
  
  
 $
 723
  
 

 
 Assets obtained in exchange for new operating lease liabilities
 
  
 $
 869
  
  
 $
 247
  
 

 
 
 

  

 The accompanying notes are an integral part of these condensed consolidated financial statements.

 
  
 

 
 
 
 
 7
 

 

 

 
 
 
 
 Table of Contents
 

 

 
 
 NCS MULTISTAGE HOLDINGS, INC.
 

 

 
 
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 

 

 

 

 
  
 

 
 Note 1.  Basis of Presentation

  

 Nature of Business 

  

 NCS Multistage Holdings, Inc., a Delaware corporation, through its wholly owned subsidiaries and subsidiaries for which it has a controlling voting interest (collectively referred to as the “Company,” “NCS,” “we,” “our” and “us”), is primarily engaged in providing engineered products and support services for oil and natural gas well construction, well completion and field development strategies. We offer our products and services primarily to exploration and production (“E&P”) companies for use both in onshore and offshore wells. We operate through service facilities principally located in Houston and Odessa, Texas; Tulsa and Oklahoma City, Oklahoma; Calgary, Red Deer, Grande Prairie and Estevan, Canada; Neuquén, Argentina; Aberdeen, United Kingdom and Stavanger, Norway. 

  

 Basis of Presentation 

  

 Our accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the Securities Exchange Act of 1934, as amended, issued by the Securities and Exchange Commission (“SEC”) and have not been audited by our independent registered public accounting firm. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with our financial statements and related notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2025 (“Annual Report”). We consolidate Repeat Precision, LLC and its subsidiary (“Repeat Precision”), an entity in which we own a 50% interest and have a controlling voting interest, operating in the United States and Mexico. The other party’s 50% ownership interest is presented separately as a non-controlling interest. In the opinion of management, these condensed consolidated financial statements reflect all normal, recurring adjustments necessary for a fair statement of the interim periods presented. The results of operations for interim periods are not necessarily indicative of those for a full year. All intercompany accounts and transactions have been eliminated for purposes of preparing these condensed consolidated financial statements. 

  

 Weatherford Transaction

  

 As previously disclosed on Form 8-K filed on June 2, 2026, on May 31, 2026, NCS entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Weatherford International plc (“Weatherford”) and Trinity Bell Sub, Inc., a wholly owned subsidiary of Weatherford (“Merger Sub”). Pursuant to the Merger Agreement, and subject to the terms and conditions therein, Merger Sub will merge with and into NCS (the “Merger”), with NCS continuing as the surviving corporation, becoming a wholly owned subsidiary of Weatherford. 

  

 On July 6, 2026 (as amended on July 17, 2026), Weatherford filed a Registration Statement on Form S-4 with the SEC, which was declared effective on July 21, 2026. At the effective time of the Merger (the “Effective Time”), each share of the Company’s common stock, par value $0.01 per share, issued and outstanding immediately prior to the Effective Time (other than certain excluded shares) will be converted into the right to receive, at the election of the holder: (i) 0.5537 Weatherford ordinary shares (the “Share Consideration”), or (ii) a combination of cash and Weatherford ordinary shares consisting of (a) cash in an amount equivalent to 0.1371 Weatherford ordinary shares (subject to a maximum cash election amount) and (b) 0.2392 Weatherford ordinary shares (together with the Share Consideration, the “Merger Consideration”). Shares for which no election is made will be converted into the right to receive the Share Consideration. 

  

 The completion of the Merger is subject to the satisfaction or waiver of customary closing conditions, including required regulatory approvals and other customary conditions. On May 31, 2026, the holder of more than 50% of our outstanding common stock executed a written consent approving and adopting the Merger Agreement; accordingly, no further stockholder approval is required. The Merger is expected to close in the second half of 2026. The descriptions of the Merger contained in this Quarterly Report on Form 10-Q, including the descriptions of the Merger Agreement, Merger Consideration and related election mechanics and the treatment of outstanding equity awards, do not purport to be complete and are qualified in their entirety by reference to the full text of the Merger Agreement. 

  

 The Merger Agreement contains customary representations, warranties, covenants, and termination provisions, including termination rights for each party under certain circumstances. The Merger Agreement also provides for the payment of termination fees under specified conditions, including a fee of $9.7 million payable by Weatherford or $5.5 million payable by NCS, as applicable. 

  

 
 
 
 
 8
 

 

 

 
 
 
 
 Table of Contents
 

 

 
 
 NCS MULTISTAGE HOLDINGS, INC.
 

 

 
 
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 

 

 

 
  
 During the three and six months ended June 30, 2026, we recorded approximately $2.3 million of transaction-related costs associated with the Merger, which are included in selling, general and administrative expenses in the condensed consolidated statements of operations.

  

 Significant Accounting Policies 

  

 Our significant accounting policies are described in “Note 2. Summary of Significant Accounting Policies” in our Annual Report.

  

 Recent Accounting Pronouncements

  

 In September 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2025-06, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This ASU modernizes the accounting for internal-use software costs to be less prescriptive, allowing capitalization once management has authorized and committed to a software project that is deemed probable to complete, without significant development uncertainty. In addition, this pronouncement clarifies that certain disclosures for capitalized internal-use software intangible assets are not required and amends existing guidance on website development cost. The new standard is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted. We are currently evaluating the impact of the adoption of this guidance.

  

 In November 2024, the FASB issued ASU No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU requires additional disclosure of certain costs and expenses within the notes to the financial statements. The new standard is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. We are currently evaluating the impact of the adoption of this guidance.

  

 
 
  
 

 
 Note 2.  Acquisition of ResMetrics

  

 On July 31, 2025, we acquired 100% of the equity interests of Reservoir Metrics, LLC, and its related entities (“ResMetrics”), a provider of tracer diagnostics services, for $7.1 million, on a cash-free, debt-free basis. Purchase consideration consisted of $5.8 million in cash, including a working capital adjustment, $0.3 million of debt assumed and a $1.1 million initial estimate of contingent consideration, payable solely depending on changes in international trade tariffs for certain chemical imports from the date of acquisition through the measurement date of  December 31, 2025. We remeasured the contingent consideration and increased this liability to $1.3 million, presented separately on the accompanying balance sheet, and recognized the change in fair value of the contingent consideration as an expense of $0.2 million during the fourth quarter of 2025. The contingent consideration was paid in January 2026. We believe the purchase of ResMetrics further expands and complements our existing tracer diagnostics offerings. 

  

 The purchase price was allocated to the estimated fair value of assets acquired and liabilities assumed as of the acquisition date. Goodwill was calculated as the excess of consideration transferred over the fair value of the net assets recognized. The fair value of the assets and liabilities of ResMetrics were determined utilizing a third-party valuation for certain long-term assets and intangibles, as well as various estimates and assumptions that we deemed reasonable based on available information. The purchase price allocation was finalized during the first quarter of 2026. We recognized goodwill of $1.2 million associated with this transaction, which we expect to be fully deductible for income tax purposes. 

  

 Total acquisition costs associated with the ResMetrics acquisition were $0.2 million during 2025, of which $0.1 million was incurred during the three and six months ended June 30, 2025 and is included in general and administrative expense in the accompanying condensed consolidated statement of operations.

  

 
 
 
 
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 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 

 

 

 
  
 The following table presents the purchase price allocation as of the acquisition date for the ResMetrics business combination (in thousands):

  

 
 Consideration
     

 Cash consideration
  $7,853 

 Debt assumed
   324 

 Initial estimate of contingent consideration
   1,064 

 Less: Cash acquired
   (2,095)

 Total consideration
  $7,146 

 Purchase price allocation
     

 Accounts receivable
  $2,744 

 Inventories
   311 

 Prepaid expenses and other current assets
   180 

 Property and equipment
   716 

 Intangible assets
   3,192 

 Other long-term assets
   19 

 Total identifiable assets acquired
   7,162 

 Accounts payable—trade
   144 

 Accrued expenses and other current liabilities
   1,037 

 Total liabilities assumed
   1,181 

 Net identifiable assets acquired
   5,981 

 Goodwill
   1,165 

 Net assets acquired
  $7,146 

 
  

 Definite-lived intangible assets acquired were $3.2 million, primarily associated with customer relationships. The intangible assets are amortized on a straight-line basis over the estimated useful lives of approximately six years, resulting in amortization expense of $0.2 million and $0.3 million for the three and six months ended June 30, 2026.

  

 ResMetrics has contributed revenue and income before tax of $2.3 million and $0.3 million, respectively, for the three months ended June 30, 2026, and $4.1 million and $0.1 million, respectively, for the six months ended June 30, 2026. We have prepared unaudited pro forma information, as if the acquisition occurred on January 1, 2025, based on available information and certain assumptions we believe are reasonable, including: (i) adjustments for depreciation and amortization of the fair value of acquired intangibles and fixed assets, (ii) accounting policy conforming changes, (iii) elimination of interest income that could have been earned on invested cash associated with the purchase price, (iv) tax effect on earnings of ResMetrics and pro forma adjustments assuming a statutory rate of 21%, and (v) other adjustments deemed appropriate. The pro forma combined financial information has been included for comparative purposes and is not necessarily indicative of the results that might have actually occurred had the ResMetrics acquisition taken place on January 1, 2025; furthermore, the financial information is not intended to be a projection of future results. The following table summarizes our unaudited selected financial information on a pro forma basis (in thousands):

  

 
    Pro Forma
  

   Three Months Ended
    Six Months Ended
  

   June 30,
    June 30,
  

   2025
    2025
  

 Revenue
  $39,139  $91,585 

 Net income attributable to NCS Multistage Holdings, Inc.
  $1,120  $5,199 

 
  

 
 
 
 
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 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 

 

 

 
  
 
 
  
 

 
 Note 3.  Segment and Geographic Information 

  

 We sell complementary products and services largely to E&P customers in the oil and gas industry, through one reportable segment, as more fully described in our Annual Report, “Note 4. Segment and Geographic Information.” We manage our activities on a consolidated basis applying qualitative factors including the nature of the products and services, the nature and commonality of production processes, a shared customer base primarily in North America, the scope of geographic operations and a common industry and regulatory environment. Our chief operating decision maker (“CODM”) is the Chief Executive Officer.

  

 We evaluate our performance on a consolidated basis by reviewing key income statement items such as revenue, gross margin, and net income, as well as other specific balance sheet and cash flow items; comparing certain key financial figures to financial guidance; and evaluating our share price performance and estimated trading multiple relative to sele