DAWSON GEOPHYSICAL REPORTS THIRD QUARTER 2025 RESULTS

By PR Newswire | November 12, 2025, 4:05 PM

MIDLAND, Texas, Nov. 12, 2025 /PRNewswire/ -- Dawson Geophysical Company (NASDAQ: DWSN) (the "Company") today reported unaudited financial results for its third quarter ended September 30, 2025.

Management Comment

Tony Clark, Dawson's President and CEO, commented, "We received our first delivery of our new single node channels in mid-August and immediately deployed the new equipment on a small channel crew with promising results. Due to the high demand from our customers for this equipment, we have accelerated our delivery timeline and received two additional equipment deliveries, at the end of September and October. We expect that the increase in our channel count will allow us to continue to improve our top-line results as we continue to utilize our legacy equipment and deploy our new equipment. Currently we have over 180,000 channels of legacy and new equipment available to service the industry, and we are increasing our efforts on passive seismic monitoring with positive activity.

Our Canadian segment acquired several passive monitoring surveys in the third quarter while preparing for a robust winter season. We are incorporating the new single node channels in this market, with positive feedback from our customers.

Overall, we saw the potential that this new equipment can have in terms of our competitive position in the market, and our financial results. We expect to capitalize on that potential with our first large channel crew deployment of the single node channels in the fourth quarter."

Third Quarter and Year-to-Date Results

For the third quarter ended September 30, 2025, the Company reported fee revenues of $14.9 million, an increase of 220% compared to $4.7 million for the comparable quarter ended September 30, 2024. Total revenue included reimbursable revenue of $7.8 million and $9.8 million for the quarters ended September 30, 2025, and September 30, 2024, respectively. Gross margin¹ for the quarter ended September 30, 2025, was 15% compared to negative 37% for the comparable quarter ended September 30, 2024, due to the increase in fee revenue and improved efficiencies in our operations.

We incurred a net loss of $1.2 million or $0.04 per common share compared to a net loss of $5.6 million or $0.18 per common share for the quarter ended September 30, 2024. During the quarter ended September 30, 2025, we generated EBITDA of $0.2 million, compared to negative EBITDA of $4.3 million in the quarter ended September 30, 2024.

Year-to-date, we incurred a net loss of $2.5 million or $0.08 per common share in 2025 compared to a net loss of $3.3 million or $0.11 per common share in 2024. We generated EBITDA of $1.4 million in the nine months ended September 30, 2025, compared to EBITDA of $0.9 million in the nine months ended September 30, 2024.

¹Defined as fee revenues less fee operating expenses, divided by fee revenues

Operations Update

In the United States, we continued to operate one large channel crew throughout the third quarter utilizing our legacy channels. That crew is scheduled to complete that job in mid-November and immediately start another large channel job, utilizing the new single node channels, scheduled to end in April. Our seasonal operations in Canada resumed in October, and we expect them to ramp up into another successful season. We have multiple small channel crew jobs contracted in the fourth quarter in the United States and Canada and expect our revenue to continue to increase quarter-over-quarter.

Capital Budget and Liquidity

Year-to-date, we have generated $11.9 million in cash flows from our operations, and increased our cash balance to $5.1 million at September 30, 2025, compared to $1.4 million at December 31, 2024. In October 2025, we entered into a revolving credit facility with a maximum lender commitment amount of $5 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, as well as providers of multi-client data libraries. Carbon Capture Utilization and Storage ("CCUS") seismic monitoring continues to grow and be an intricate part of our business. Dawson has acquired several CCUS base surveys and plan to acquire more in the future.

Non-GAAP Financial Measures

In an effort to provide investors with additional information regarding the Company's preliminary and unaudited results as determined by generally accepted accounting principles ("GAAP"), the Company has included in this press release information about the Company's EBITDA, a non-GAAP financial measure as defined by Regulation G promulgated by the U.S. Securities and Exchange Commission. The Company defines EBITDA as net income (loss) plus interest expense, interest income, income taxes, depreciation and amortization expense. The Company uses EBITDA, further adjusted for other unusual items (Adjusted EBITDA), when applicable, 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;
our operating performance over time in relation to other companies that own similar assets and that we believe calculate 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 our performance. However, the term EBITDA is not defined under generally accepted accounting principles ("GAAP"), and 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 (loss), cash flow from operating activities or other cash flow data calculated in accordance with GAAP. In addition, the Company's EBITDA may not be comparable to EBITDA or similarly titled measures utilized by other companies since other companies may not calculate EBITDA in the same manner as the Company. Further, the results presented by EBITDA cannot be achieved without incurring the costs that the measure excludes: interest, taxes, depreciation and amortization, and other unusual items. For the three and nine months ended September 30, 2025, and 2024, there were no unusual items and therefore Adjusted EBITDA and EBITDA were equal, and only EBITDA is presented in the tables following the text of this press release.

Forward-Looking Statements

In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company cautions that statements in this press release which are forward-looking and which provide other than historical information involve risks and uncertainties that may materially affect the Company's actual results of operations. Forward-looking statements generally relate to future events or the Company's future financial or operating performance and may be identified by words such as "may," "should," "expect," "intend," "will," "estimate," "anticipate," "believe," "predict," or similar words. Such statements include, but are not limited to, statements about the Company's future financial or operating performance, statements of the Company's position in the marketplace; statements about the Company's growth potential and strategies for growth; statements about the Company's ability to realize the benefits expected from the new single node channels; and any indication that the Company may be able to sustain or increase its sales, earnings or earnings per share, or its sales, earnings or earnings per share growth rates. Such forward-looking statements are based on the beliefs of management as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors. These risks include, but are not limited to, the Company's status as a controlled public company, which exempts the Company from certain corporate governance requirements; the limited market for the Company's shares, which could result in the delisting of the Company's shares from Nasdaq and the Company no longer being required to make filings with the U.S. Securities and Exchange Commission (the "SEC"); the impact of general economic, industry, market or political conditions; dependence upon energy industry spending; changes in exploration and production spending by our customers and changes in the level of oil and natural gas exploration and development; the results of operations and financial condition of our customers, particularly during extended periods of low prices for crude oil and natural gas; the volatility of oil and natural gas prices; changes in economic conditions; surplus in the supply of oil and the ability of the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+ to agree on and comply with supply limitations; the duration and magnitude of the unprecedented disruption in the oil and gas industry currently resulting from the impact of the foregoing factors, which is negatively impacting our business; the potential for contract delays; reductions or cancellations of service contracts; limited number of customers; credit risk related to our customers; reduced utilization; high fixed costs of operations and high capital requirements; industry competition; external factors affecting the Company's crews such as weather interruptions and inability to obtain land access rights of way; whether the Company enters into turnkey or day rate contracts; crew productivity; risks that the Company's cash reserves, liquidity or capital resources may be insufficient; risks related to our indebtedness and compliance with covenants contained in our revolving credit facility; the Company's ability to execute its business strategies and plans for growth; the failure to operationalize the new single node channels in a timely manner or at all; disruptions in the global economy, including export controls and financial and economic sanctions imposed on certain industry sectors and parties as a result of the developments in Ukraine and related activities, and whether or not a future transaction or other action occurs that causes the Company to be delisted from Nasdaq and no longer be required to make filings with the SEC. A discussion of these and other factors, including risks and uncertainties, is set forth in the Company's Annual Report on Form 10-K that was filed with the SEC on April 2, 2025. The Company disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future events or otherwise.

DAWSON GEOPHYSICAL COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited and amounts in thousands, except share and per share data)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Operating revenues:
Fee Revenue	$	14,942	$	4,663	$	38,936	$	39,727
Reimbursable Revenue		7,804		9,758		9,739		18,790
		22,746		14,421		48,675		58,517
Operating costs:
Operating expenses
Fee operating expenses		12,655		6,393		31,216		31,712
Reimbursable operating expenses		7,804		9,758		9,739		18,790
Total operating expenses		20,459		16,151		40,955		50,502
General and administrative		2,110		2,630		6,435		7,347
Depreciation and amortization		1,349		1,388		3,794		4,383
		23,918		20,169		51,184		62,232

Loss from operations		(1,172)		(5,748)		(2,509)		(3,715)

Other income (expense):
Interest income		59		72		98		290
Interest expense		(71)		(35)		(205)		(120)
Other income (expense), net		41		59		112		264

Loss before income tax		(1,143)		(5,652)		(2,504)		(3,281)

Income tax (expense) benefit		(10)		35		(6)		(36)

Net loss		(1,153)		(5,617)		(2,510)		(3,317)

Other comprehensive income (loss):
Net unrealized (loss) income on foreign exchange rate translation		(71)		29		376		(241)

Comprehensive loss	$	(1,224)	$	(5,588)	$	(2,134)	$	(3,558)

Basic loss per share of common stock	$	(0.04)	$	(0.18)	$	(0.08)	$	(0.11)

Diluted loss per share of common stock	$	(0.04)	$	(0.18)	$	(0.08)	$	(0.11)

Weighted average equivalent common shares outstanding		31,047,801		30,906,777		31,006,304		30,845,076

Weighted average equivalent common shares outstanding - assuming dilution		31,047,801		30,906,777		31,006,304		30,845,076

DAWSON GEOPHYSICAL COMPANY CONSOLIDATED BALANCE SHEETS (unaudited and amounts in thousands, except share data)


	September 30,		December 31,
	2025		2024
Assets
Current assets:
Cash and cash equivalents	$	5,081	$	1,385
Accounts receivable, net		2,171		9,970
Prepaid expenses and other current assets		5,934		3,186
Total current assets		13,186		14,541

Property and equipment		250,374		238,064
Less accumulated depreciation		(226,553)		(225,085)
Property and equipment, net		23,821		12,979

Operating lease right-of-use assets		3,209		3,002

Intangibles, net		359		348

Total assets	$	40,575	$	30,870

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	5,698	$	3,381
Accrued liabilities:
Payroll costs and other taxes		1,403		2,014
Other		1,052		830
Deferred revenue		3,709		1,570
Current maturities of notes payable and finance leases		3,598		1,010
Current maturities of operating lease liabilities		1,075		1,125
Total current liabilities		16,535		9,930

Long-term liabilities:
Notes payable and finance leases, net of current maturities		6,545		1,512
Operating lease liabilities, net of current maturities		2,290		2,131
Deferred tax liabilities, net		16		16
Total long-term liabilities		8,851		3,659

Commitments and contingencies		—		—

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,
31,047,801 and 30,983,437 shares issued and outstanding at September 30, 2025
and December 31, 2024, respectively		310		310
Additional paid-in capital		157,115		157,073
Accumulated deficit		(140,129)		(137,619)
Accumulated other comprehensive loss, net		(2,107)		(2,483)
Total stockholders' equity		15,189		17,281

Total liabilities and stockholders' equity	$	40,575	$	30,870

Reconciliation of EBITDA to Net Income (Loss) (amounts in thousands)

	Three Months Ended September 30,
	2025 US		2025 CA		2025 Consol.		2024 US		2024 CA		2024 Consol.
Net income (loss)	$	60	$	(1,213)	$	(1,153)	$	(4,423)	$	(1,194)	$	(5,617)
Depreciation and amortization		1,160		189		1,349		1,144		244		1,388
Interest expense (income), net		11		1		12		(34)		(3)		(37)
Income tax expense (benefit)		10		—		10		(35)		—		(35)
EBITDA	$	1,241	$	(1,023)	$	218	$	(3,348)	$	(953)	$	(4,301)

	Nine Months Ended September 30,
	2025 US		2025 CA		2025 Consol.		2024 US		2024 CA		2024 Consol.
Net (loss) income	$	(5,783)	$	3,273	$	(2,510)	$	(4,552)	$	1,235	$	(3,317)
Depreciation and amortization		3,218		576		3,794		3,611		772		4,383
Interest expense (income), net		94		13		107		(157)		(13)		(170)
Income tax expense		6		—		6		36		—		36
EBITDA	$	(2,465)	$	3,862	$	1,397	$	(1,062)	$	1,994	$	932

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

	Three Months Ended September 30,
	2025 US		2025 CA		2025 Consol.		2024 US		2024 CA		2024 Consol.
Net cash used in operating activities	$	(4,042)	$	(694)	$	(4,736)	$	(3,331)	$	(900)	$	(4,231)
Changes in working capital and other items		5,459		(271)		5,188		252		(2)		250
Non-cash adjustments to net income (loss)		(176)		(58)		(234)		(269)		(51)		(320)
EBITDA	$	1,241	$	(1,023)	$	218	$	(3,348)	$	(953)	$	(4,301)

	Nine Months Ended September 30,
	2025 US		2025 CA		2025 Consol.		2024 US		2024 CA		2024 Consol.
Net cash provided by (used in) operating activities	$	4,244	$	7,647	$	11,891	$	(33)	$	3,592	$	3,559
Changes in working capital and other items		(5,877)		(3,615)		(9,492)		(26)		(1,446)		(1,472)
Non-cash adjustments to net (loss) income		(832)		(170)		(1,002)		(1,003)		(152)		(1,155)
EBITDA	$	(2,465)	$	3,862	$	1,397	$	(1,062)	$	1,994	$	932

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

	Three Months Ended September 30, 2025						Nine Months Ended September 30, 2025
	USA Operations		Canada Operations		Consolidated		USA Operations		Canada Operations		Consolidated
Operating revenues
Fee revenue	$	14,776	$	166	$	14,942	$	25,906	$	13,030	$	38,936
Reimbursable revenue		7,803		1		7,804		9,489		250		9,739
		22,579		167		22,746		35,395		13,280		48,675

Operating costs:
Fee operating expenses		11,729		926		12,655		23,086		8,130		31,216
Reimbursable operating expenses		7,803		1		7,804		9,489		250		9,739
Operating expenses		19,532		927		20,459		32,575		8,380		40,955
General and administrative		1,839		271		2,110		5,392		1,043		6,435
Depreciation and amortization		1,160		189		1,349		3,218		576		3,794
		22,531		1,387		23,918		41,185		9,999		51,184

Income (loss) from operations		48		(1,220)		(1,172)		(5,790)		3,281		(2,509)

Other income (expense):
Interest income		49		10		59		75		23		98
Interest expense		(60)		(11)		(71)		(169)		(36)		(205)
Other income (expense), net		33		8		41		107		5		112
Income (loss) before income tax		70		(1,213)		(1,143)		(5,777)		3,273		(2,504)
Income tax expense		(10)		—		(10)		(6)		—		(6)
Net income (loss)	$	60	$	(1,213)	$	(1,153)	$	(5,783)	$	3,273	$	(2,510)
Other Comprehensive income (loss):
Net unrealized (loss) income on foreign exchange rate translation		-		(71)		(71)		-		376		376
Comprehensive income (loss)	$	60	$	(1,284)	$	(1,224)	$	(5,783)	$	3,649	$	(2,134)

EBITDA	$	1,241	$	(1,023)	$	218	$	(2,465)	$	3,862	$	1,397

Statements of Operations by operating segment for the three and nine months ended September 30, 2024.

	Three Months Ended September 30, 2024						Nine Months Ended September 30, 2024
	USA Operations		Canada Operations		Consolidated		USA Operations		Canada Operations		Consolidated
Operating revenues
Fee revenue	$	4,652	$	11	$	4,663	$	31,260	$	8,467	$	39,727
Reimbursable revenue		9,758		—		9,758		18,753		37		18,790
		14,410		11		14,421		50,013		8,504		58,517

Operating costs:
Fee operating expenses		5,652		741		6,393		26,193		5,519		31,712
Reimbursable operating expenses		9,758		—		9,758		18,753		37		18,790
Operating expenses		15,410		741		16,151		44,946		5,556		50,502
General and administrative		2,405		225		2,630		6,416		931		7,347
Depreciation and amortization		1,144		244		1,388		3,611		772		4,383
		18,959		1,210		20,169		54,973		7,259		62,232

(Loss) income from operations		(4,549)		(1,199)		(5,748)		(4,960)		1,245		(3,715)

Other income (expense):
Interest income		58		14		72		246		44		290
Interest expense		(24)		(11)		(35)		(89)		(31)		(120)
Other income (expense), net		57		2		59		287		(23)		264
(Loss) income before income tax		(4,458)		(1,194)		(5,652)		(4,516)		1,235		(3,281)
Income tax benefit (expense)		35		—		35		(36)		—		(36)
Net (loss) income	$	(4,423)	$	(1,194)	$	(5,617)	$	(4,552)	$	1,235	$	(3,317)
Other Comprehensive income (loss):
Net unrealized income (loss) on foreign exchange rate translation		—		29		29		—		(241)		(241)
Comprehensive (loss) income	$	(4,423)	$	(1,165)	$	(5,588)	$	(4,552)	$	994	$	(3,558)

EBITDA	$	(3,348)	$	(953)	$	(4,301)	$	(1,062)	$	1,994	$	932

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