/DAWSON GEOPHYSICAL REPORTS SECOND QUARTER 2026 RESULTS

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DAWSON GEOPHYSICAL REPORTS SECOND QUARTER 2026 RESULTS

PRNewswire

2026/08/13Earnings

DAWSON GEOPHYSICAL REPORTS SECOND QUARTER 2026 RESULTS

MIDLAND, Texas, Aug. 13, 2026 — Dawson Geophysical Company (NASDAQ: DWSN) (the "Company") today reported unaudited financial results for its second quarter ended June 30, 2026.

Second quarter 2026 Highlights

Recognized fee revenue of $14 million, a 60% increase over the second quarter of 2025
Net loss of $3.4 million, $0.11 per share, which included $1.7 million of strategic transaction costs
Generated Adjusted EBITDA of $0.6 million, an improvement of $1.8 million over the second quarter of 2025
Fourth consecutive quarter of positive Adjusted EBITDA, for the first time since the three months ended September 30, 2018

Year-to-Date 2026 Highlights

Increased fee revenue 94% to $46.5 million
Net income of $4.2 million, $0.14 per share, which included $2.4 million of strategic transaction costs
Generated Adjusted EBITDA of $11.5 million, an 875% increase over the six months ended June 30, 2025

Adjusted EBITDA is a non-GAAP financial measure. See "Non-GAAP Financial Measures" below for our definition and reconciliation of Adjusted EBITDA.

Management Comment

Tony Clark, Dawson's President and CEO, commented, "Approximately a year ago, we made a significant capital investment to position this Company to have a competitive advantage in the market for providing seismic data acquisition services with high channel count parameters. Since then, we have improved our revenues, margins, profitability and cash-flows. This equipment is still new to us, and we are continuing to identify areas of improvement in the deployment of the new single node channels, which we expect will result in further operational efficiencies. Additionally, we are investing in compute power to improve the speed of getting our data from the field to our customers. At the end of the second quarter, we started a high-density channel count job, based upon the degree of success we believe will increase the demand for seismic data acquisition services. We believe that if we can provide better data to our customers and improve the speed with which they can benefit from that data, we will continue to increase our competitive advantage and improve our profitability."

Second Quarter and Year-to-Date Results

For the second quarter ended June 30, 2026, the Company reported revenues of $17.9 million, an increase of 82% compared to $9.9 million for the comparable quarter ended June 30, 2025. Revenue included reimbursable revenue of $3.9 million and $1.1 million for the quarters ended June 30, 2026, and June 30, 2025, respectively. Gross margin1 for the quarter ended June 30, 2026, was 19% compared to 13% for the comparable quarter ended June 30, 2026.

We incurred a net loss of $3.4 million or $0.11 per common share and generated Adjusted EBITDA of $0.6 million in the quarter ended June 30, 2026, compared to negative Adjusted EBITDA of $1.2 million in the quarter ended June 30, 2025.

For the six months ended June 30, 2026, we generated net income of $4.2 million or $0.14 per common share compared to a net loss of $1.4 million or $0.04 per common share for the same period of 2025. For the six months ended June 30, 2026, we generated Adjusted EBITDA of $11.5 million, compared to Adjusted EBITDA of $1.2 million in the same period of 2025.

Operations Update

The Company completed two large channel crew jobs during the quarter and had two smaller channel crews operating in the second quarter in the United States. At the end of the quarter, we started a high-density channel count job, deploying 70,000 single node channels over a concentrated area. The high-density channel count combined with our new single node channels is expected to provide significant improvement in the resolution of the seismic data provided by our services. If this test is successful, we expect the demand for other high-density seismic acquisition services to increase significantly.

Our seasonal operations in Canada halted in April but are expected to resume in the fourth quarter of 2026. We are already seeing increased bid activity for larger channel count jobs in the Canadian market for the fourth quarter of 2026 and into 2027.

We continue to schedule and bid larger channel count jobs due to our significant inventory of the new single node channels. Additionally, we have seen an increase in activity related to non-traditional seismic exploration including geothermal Carbon Capture Utilization and Storage ("CCUS") seismic monitoring, and other rare minerals.

Capital Budget and Liquidity

The Company's Board of Directors approved a capital budget of $3 million for 2026, including the final payment under the single node purchase of $0.9 million, which was made in January 2026.

As of June 30, 2026, our cash position was $5.8 million, our working capital deficit was $2.9 million, compared to a deficit of $5 million at December 31, 2025, and our credit facility had no balance outstanding with a borrowing base of $4.1 million. We believe that our cash on hand, operating cash flows and cash available under our revolving credit facility are sufficient to fund our cash flow requirements as well as our debt obligations.

About Dawson

Dawson Geophysical Company is a leading provider of North American onshore seismic data acquisition services with operations throughout the continental United States and Canada. Dawson acquires and processes 2-D, 3-D and multi-component seismic data solely for its clients, ranging from major oil and gas companies to independent oil and gas operators, critical mineral and other non-traditional operators as well as providers of multi-client data libraries.

Defined as fee revenues less fee operating expenses, divided by fee revenues

Non-GAAP Financial Measures

In an effort to provide investors with additional information regarding the Company's preliminary and unaudited results as determined by U.S. generally accepted accounting principles ("GAAP"), the Company has included in this press release information about the Company's Adjusted EBITDA, a non-GAAP financial measure as defined by Regulation G promulgated by the U.S. Securities and Exchange Commission. The Company defines Adjusted EBITDA as our net income, before (i) interest expense, net, (ii) income tax expense or benefit, (iii) depreciation and amortization and (iv) non-recurring and other charges that we believe are not indicative of our core operating performance, such as strategic transaction costs. The Company uses Adjusted EBITDA as a supplemental financial measure to assess:

the financial performance of its assets without regard to financing methods, capital structures, taxes or historical cost basis;
its liquidity and operating performance over time in relation to other companies that own similar assets and that the Company believes calculate Adjusted EBITDA in a similar manner; and
the ability of the Company's assets to generate cash sufficient for the Company to pay potential interest costs.

The Company also understands that such data are used by investors to assess the Company's performance. However, the term Adjusted EBITDA is not defined under U.S. GAAP, and Adjusted EBITDA is not a measure of operating income or operating performance presented in accordance with GAAP. When assessing the Company's operating performance, investors and others should not consider this data in isolation or as a substitute for net income, the most directly comparable GAAP financial measure, cash flow from operating activities or other cash flow data calculated in accordance with GAAP. In addition, the Company may modify how we calculate Adjusted EBITDA, and our use of Adjusted EBITDA may not be comparable to Adjusted EBITDA or similarly titled measures utilized by other companies since other companies may not calculate Adjusted EBITDA in the same manner as the Company. Further, the results presented by Adjusted EBITDA cannot be achieved without incurring the costs that the measure excludes: interest, taxes, and depreciation and amortization. A reconciliation of the Company's Adjusted EBITDA to its net loss is presented in the table following the text of this press release.

Discussions with Controlling Stockholder

As of June 30, 2026, Wilks Brothers, LLC ("Wilks") and its affiliates control approximately 80% of our common stock. We have been in discussion with Wilks and certain of its affiliates with respect to one or more transactions involving assets owned by Wilks and/or certain of its affiliates, which may include, among other things, asset contributions or sales, a business combination transaction or other similar transactions. In connection with these discussions, the Company incurred approximately $1.7 million and $2.4 million in expenses for the three and six months ended June 30, 2026, respectively, which are included in general and administrative expense in our consolidated statements of operations.

There is no guarantee that we will enter into a definitive agreement with any such parties regarding any such transaction. The terms of any potential agreement between us and Wilks, and/or any of its affiliates, would be contingent on certain conditions, including completion of due diligence and the negotiation of definitive transaction documents. Our Board of Directors has formed a special committee of independent directors (the "Special Committee"), which has retained independent legal and financial advisors, to evaluate, negotiate and make recommendations to the Board regarding any such transaction with Wilks and/or its affiliates, including whether to pursue or decline to pursue any proposed transaction.

DAWSON GEOPHYSICAL COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(unaudited and amounts in thousands, except share and per share data)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Operating revenues:

Fee Revenue

14,006

8,735

46,514

23,994

Reimbursable Revenue

3,906

1,116

8,097

1,935

17,912

9,851

54,611

25,929

Operating costs:

Operating expenses

Fee operating expenses

11,398

7,601

30,828

18,561

Reimbursable operating expenses

3,906

1,116

8,097

1,935

Total operating expenses

15,304

8,717

38,925

20,496

General and administrative

3,652

2,331

6,593

4,325

Depreciation and amortization

1,985

1,174

3,982

2,445

20,941

12,222

49,500

27,266

(Loss) income from operations

(3,029)

(2,371)

5,111

(1,337)

Other income (expense):

Interest income

Interest expense, including related party

(426)

(58)

(927)

(134)

Other (expense) income, net

(2)

(Loss) income before income tax

(3,425)

(2,356)

4,246

(1,361)

Income tax (expense) benefit

(15)

(25)

Net (loss) income

(3,440)

(2,349)

4,221

(1,357)

Other comprehensive income (loss):

Net unrealized income (loss) on foreign currency translation

477

(101)

447

Comprehensive (loss) income

(3,355)

(1,872)

4,120

(910)

Basic net (loss) income per share of common stock

(0.11)

(0.08)

0.14

(0.04)

Diluted net (loss) income per share of common stock

(0.11)

(0.08)

0.14

(0.04)

Weighted average equivalent common shares outstanding

31,052,871

30,986,929

31,052,855

30,985,212

Weighted average equivalent common shares outstanding - assuming dilution

31,052,871

30,986,929

31,137,963

30,985,212

DAWSON GEOPHYSICAL COMPANY

CONSOLIDATED BALANCE SHEETS

(unaudited and amounts in thousands, except share data)

June 30,

December 31,

2026

2025

Assets

Current assets:

Cash and cash equivalents

5,755

4,907

Short-term investments

370

Accounts receivable, net

7,317

9,389

Prepaid expenses and other current assets

7,077

7,169

Total current assets

20,519

21,835

Property and equipment

253,096

254,017

Less accumulated depreciation

(221,372)

(223,242)

Property and equipment, net

31,724

30,775

Operating lease right-of-use assets

2,729

3,036

Intangibles, net

352

364

Total assets

55,324

56,010

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

7,040

9,578

Accrued liabilities:

Payroll costs and other taxes

1,660

1,474

Other

1,183

994

Deferred revenue

5,341

7,477

Current maturities of notes payable and finance leases

7,255

6,232

Current maturities of operating lease liabilities

981

1,082

Total current liabilities

23,460

26,837

Long-term liabilities:

Notes payable and finance leases, net of current maturities

10,135

11,324

Operating lease liabilities, net of current maturities

1,675

2,024

Deferred tax liabilities, net

Total liabilities

35,287

40,202

Commitments and contingencies (Note 8)

Stockholders' equity:

Preferred stock-par value $1.00 per share; 4,000,000 shares authorized, none outstanding

—

Common stock-par value $0.01 per share; 35,000,000 shares authorized,

31,055,618 and 31,052,840 shares issued and outstanding at June 30, 2026

and December 31, 2025, respectively

311

Additional paid-in capital

157,263

157,154

Accumulated deficit

(135,339)

(139,560)

Accumulated other comprehensive loss, net

(2,198)

(2,097)

Total stockholders' equity

20,037

15,808

Total liabilities and stockholders' equity

55,324

56,010

DAWSON GEOPHYSICAL COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited and amounts in thousands)

Six Months Ended June 30,

2026

2025

Cash flows from operating activities:

Net income (loss)

4,221

(1,357)

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

Depreciation and amortization

3,982

2,445

Non-cash operating lease cost

386

504

Non-cash compensation

116

Bad debt expense

—

177

Gain on disposal of assets

(121)

(378)

Other

(50)

Change in operating assets and liabilities:

Decrease in accounts receivable

1,964

6,673

Decrease (increase) in contract assets

(7,063)

Decrease in prepaid expenses and other assets

132

322

Decrease in accounts payable

(2,451)

(439)

Increase (decrease) in accrued liabilities

394

(171)

Decrease in operating lease liabilities

(529)

(554)

Decrease (increase) in deferred revenue

(2,137)

16,365

Net cash provided by operating activities

5,998

16,627

Cash flows from investing activities:

Capital expenditures, net of non-cash capital expenditures summarized below

(1,652)

(683)

Proceeds from disposal of assets

156

378

Net cash used in investing activities

(1,496)

(305)

Cash flows from financing activities:

Principal payments on notes payable

(3,025)

(1,066)

Principal payments on finance leases

(613)

(386)

Borrowings on related-party line of credit

6,250

—

Repayments on related-party line of credit

(6,250)

—

Tax withholdings related to stock based compensation awards

(7)

(45)

Net cash used in financing activities

(3,645)

(1,497)

Effect of exchange rate changes on cash and cash equivalents

(9)

Net increase in cash and cash equivalents

848

14,843

Cash and cash equivalents at beginning of period

4,907

1,385

Cash and cash equivalents at end of period

5,755

16,228

Supplemental cash flow information:

Cash paid for interest, including related-party amounts of $101 and $0, respectively (see Note 11)

819

128

Non-cash operating, investing and financing activities:

Finance leases incurred

673

—

Increase in right-of-use assets and operating lease liabilities

106

—

Financed equipment purchases

2,698

—

Financed insurance premiums

128

1,746

Reconciliation of EBITDA to Net (Loss) Income

(amounts in thousands)

Three Months Ended June 30,

2026 US

2026 CA

2026 Consol.

2025 US

2025 CA

2025 Consol.

Net (loss) income

(2,034)

(1,406)

(3,440)

(1,297)

(1,052)

(2,349)

Depreciation and amortization

1,755

230

1,985

981

193

1,174

Interest expense (income), net

381

394

Income tax expense (benefit)

—

(7)

—

(7)

EBITDA

117

(1,163)

(1,046)

(303)

(856)

(1,159)

Strategic transaction expenses

1,689

—

1,689

—

Adjusted EBITDA

1,806

(1,163)

643

(303)

(856)

(1,159)

Six Months Ended June 30,

2026 US

2026 CA

2026 Consol.

2025 US

2025 CA

2025 Consol.

Net income (loss)

242

3,979

4,221

(5,843)

4,486

(1,357)

Depreciation and amortization

3,521

461

3,982

2,058

387

2,445

Interest expense (income), net

859

886

Income tax expense (benefit)

—

(4)

—

(4)

EBITDA

4,647

4,467

9,114

(3,706)

4,885

1,179

Strategic transaction expenses

2,384

—

2,384

—

Adjusted EBITDA

7,031

4,467

11,498

(3,706)

4,885

1,179

Reconciliation of EBITDA to Net Cash Provided By (Used in) Operating Activities

(amounts in thousands)

Three Months Ended June 30,

2026 US

2026 CA

2026 Consol.

2025 US

2025 CA

2025 Consol.

Net cash (used in) provided by operating activities

(1,799)

8,262

6,463

6,742

8,133

14,875

Changes in working capital and other items

2,119

(9,364)

(7,245)

(6,805)

(8,932)

(15,737)

Non-cash adjustments to net (loss) income

(203)

(61)

(264)

(240)

(57)

(297)

EBITDA

117

(1,163)

(1,046)

(303)

(856)

(1,159)

Strategic transaction expenses

1,689

—

1,689

—

Adjusted EBITDA

1,806

(1,163)

643

(303)

(856)

(1,159)

Six Months Ended June 30,

2026 US

2026 CA

2026 Consol.

2025 US

2025 CA

2025 Consol.

Net cash provided by (used in) operating activities

100

5,898

5,998

8,286

8,341

16,627

Changes in working capital and other items

4,928

(1,310)

3,618

(11,335)

(3,345)

(14,680)

Non-cash adjustments to net income (loss)

(381)

(121)

(502)

(657)

(111)

(768)

EBITDA

4,647

4,467

9,114

(3,706)

4,885

1,179

Strategic transaction expenses

2,384

—

2,384

—

Adjusted EBITDA

7,031

4,467

11,498

(3,706)

4,885

1,179

Statements of Operations by operating segment for the three months ended June 30, 2026, and 2025.

Three Months Ended June 30, 2026

Six Months Ended June 30, 2026

USA Operations

Canada Operations

Consolidated

USA Operations

Canada Operations

Consolidated

Operating revenues

Fee revenue

13,176

830

14,006

34,041

12,473

46,514

Reimbursable revenue

3,902

3,906

7,910

187

8,097

17,078

834

17,912

41,951

12,660

54,611

Operating costs:

Fee operating expenses

9,779

1,619

11,398

23,661

7,167

30,828

Reimbursable operating expenses

3,902

3,906

7,910

187

8,097

Operating expenses

13,681

1,623

15,304

31,571

7,354

38,925

General and administrative

3,324

328

3,652

5,800

793

6,593

Depreciation and amortization

1,755

230

1,985

3,521

461

3,982

18,760

2,181

20,941

40,892

8,608

49,500

(Loss) income from operations

(1,682)

(1,347)

(3,029)

1,059

4,052

5,111

Other income (expense):

Interest income

Interest expense

(407)

(19)

(426)

(891)

(36)

(927)

Other income (expense), net

(46)

(2)

(46)

(Loss) income before income tax

(2,019)

(1,406)

(3,425)

267

3,979

4,246

Income tax expense

(15)

—

(15)

(25)

—

(25)

Net (loss) income

(2,034)

(1,406)

(3,440)

242

3,979

4,221

Adjusted EBITDA

1,806

(1,163)

643

7,031

4,467

11,498

Three Months Ended June 30, 2025

Six Months Ended June 30, 2025

USA Operations

Canada Operations

Consolidated

USA Operations

Canada Operations

Consolidated

Operating revenues

Fee revenue

8,404

331

8,735

11,130

12,864

23,994

Reimbursable revenue

1,116

—

1,116

1,686

249

1,935

9,520

331

9,851

12,816

13,113

25,929

Operating costs:

Fee operating expenses

6,742

859

7,601

11,357

7,204

18,561

Reimbursable operating expenses

1,116

—

1,116

1,686

249

1,935

Operating expenses

7,858

859

8,717

13,043

7,453

20,496

General and administrative

1,998

333

2,331

3,553

772

4,325

Depreciation and amortization

981

193

1,174

2,058

387

2,445

10,837

1,385

12,222

18,654

8,612

27,266

(Loss) income from operations

(1,317)

(1,054)

(2,371)

(5,838)

4,501

(1,337)

Other income (expense):

Interest income

Interest expense

(46)

(12)

(58)

(109)

(25)

(134)

Other income (expense), net

(3)

(Loss) income before income tax

(1,304)

(1,052)

(2,356)

(5,847)

4,486

(1,361)

Income tax benefit

—

Net (loss) income

(1,297)

(1,052)

(2,349)

(5,843)

4,486

(1,357)

Adjusted EBITDA

(303)

(856)

(1,159)

(3,706)

4,885

1,179

Summary

MIDLAND, Texas, Aug. 13, 2026 /PRNewswire/ -- Dawson Geophysical Company (NASDAQ: DWSN) (the "Company") today reported unaudited financial results for its second quarter ended June 30, 2026. Second quarter 2026 Highlights Recognized fee revenue of $14 million, a 60% increase over the...