, /PRNewswire/ – RPC, Inc. (NYSE: RES) ("RPC" or the "Company"), a leading diversified oilfield services company, announced its unaudited results for the fourth quarter and full year ended December 31, 2025.

***Non-GAAP and adjusted measures ***may include adjusted revenues, adjusted operating income, adjusted net income, adjusted net income margin, adjusted earnings per share (diluted), EBITDA and adjusted EBITDA, adjusted EBITDA margin, and free cash flow which are reconciled to the most directly comparable GAAP measures in the appendices of this earnings release.

Sequential comparisons* are to 3Q:25. The Company believes quarterly sequential comparisons are most useful in assessing industry trends and RPC’s recent financial results. Both sequential and year-over-year comparisons are available in the tables at the end of this earnings release.*

Fourth Quarter 2025 Highlights

• Revenues decreased 5% sequentially to $425.8 million
• Net loss was $3.1 million, compared to net income of $13.0 million in the prior quarter, and Loss Per Share was $0.02; Net (loss) income margin decreased 360 basis points sequentially to (0.7)%
• Adjusted net income was $9.4 million, compared to $16.8 million in the prior quarter, and adjusted diluted Earnings per Share (EPS) was $0.04; Adjusted net income margin was 2.2%. See Appendices B and C for additional details
• Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) was $55.1 million, compared to $67.8 million in the prior quarter; Adjusted EBITDA margin decreased 230 basis points sequentially to 12.9%. Adjusted EBITDA was negatively impacted by approximately $4.6 million in wireline cable expenses incurred during the quarter. Previously, wireline cables were capitalized. See Appendix C for additional details

Full Year 2025 Highlights

• Revenues increased 15% compared to the prior year to $1.6 billion primarily due to the Pintail Completions acquisition which closed April 1, 2025
• Net income was $32.1 million, down 65% compared to the prior year, and EPS was $0.15; Net income margin decreased 450 basis points compared to the prior year to 2.0%
• Adjusted net income was $53.6 million, down 41% compared to the prior year, and adjusted diluted EPS was $0.25; Adjusted net income margin was 3.3%
• Adjusted EBITDA was $232.7 million, essentially unchanged from the prior year; Adjusted EBITDA margin decreased 220 basis points sequentially to 14.3%
• Net cash from operating activities was $201.3 million; free cash flow was $52.9 million unaffected by the transition to expensing wireline cables
• The Company paid $35.1 million in dividends, and repurchased $2.9 million of common stock in 2025

Management Commentary

"During the fourth quarter we experienced modest revenue declines primarily due to the holiday slowdowns. Our Technical Services segment revenues declined 4% sequentially. Within Technical Services, Thru Tubing Solutions’ downhole tools declined 9% driven by softer activity in the Rocky Mountain and International districts. Cudd Energy Services’ pumping and Pintail Completions’ wireline declined 6% and 3%, respectively, partially offset by Cudd Pressure Control’s snubbing revenues, which grew by 13%. Our Support Services segment revenues declined 18% sequentially, primarily due to Patterson Services’ rental tools declining 22% during the quarter as several jobs shifted into early 2026," stated Ben M. Palmer, RPC’s President and Chief Executive Officer. "As we enter 2026, we are focused on disciplined execution, leveraging our strong brands and diversified offerings."

"We experienced a solid start to the fourth quarter but encountered a weak December as a number of our customers reduced activity, particularly late in the month. The macro environment remains challenging, with crude oil prices showing increased volatility due to recent geopolitical developments. As we look ahead, our focus remains on delivering full cycle returns by maintaining cost discipline, deploying capital strategically, and positioning the company for long-term success."

Selected Industry Data (Source: Baker Hughes, Inc., U.S. Energy Information Administration)

4Q:25

3Q:25

Change

% Change

4Q:24

Change

% Change

U.S. rig count (avg)

548

540

8

1.5

%

586

(38)

(6.5)

%

Oil price ($/barrel)

$

59.79

$

65.85

$

(6.06)

(9.2)

%

$

70.59

$

(10.80)

(15.3)

%

Natural gas ($/Mcf)

$

3.69

$

3.04

$

0.65

21.4

%

$

2.43

$

1.26

51.9

%

4Q:25 Consolidated Financial Results (sequential comparisons to previous quarter)

Revenues were $425.8 million, down 5%. Within the Technical Services segment, we saw revenues decrease 4% sequentially with snubbing and cementing showing sequential growth offset by declines in our other service lines. Within the Support Services segment we saw an 18% sequential decrease with rental tools showing a sequential decrease of 22%, slightly offset by increases in tubular services.

Cost of revenues, which excludes depreciation and amortization of $33.8 million, was $336.6 million, up slightly from $334.7 million. Despite lower revenues, the cost of revenues increased during the quarter due to expensing year-to-date wireline cable purchases of approximately $12 million that were previously being capitalized, and increases in other materials and supplies expenses related to job mix.

Selling, general and administrative expenses were $47.7 million, up from $44.6 million, primarily related to employment incentives and higher other employment related costs.

Acquisition related employment costs were approximately $7.3 million during 4Q:25 and represent non-cash accounting adjustments related to the Pintail acquisition costs that are contingent upon continued employment.

Interest income totaled $1.7 million, approximating the prior quarter.

Interest expense totaled $942 thousand, approximating the prior quarter.

Income tax provision was $3.2 million, with an unusually high effective tax rate primarily due to the liquidation of company-owned life insurance policies that were part of the previously announced dissolution of the company’s non-qualified supplemental retirement plan, coupled with the non-deductible portion of Acquisition related employment costs.

Net loss and Loss per share were a loss of $3.1 million and $0.02 respectively, versus net income of $13.0 million and diluted earnings per share of $0.06, respectively, in 3Q:25. Net income margin decreased 360 basis points sequentially to (0.7)%.

Adjusted net income and Adjusted diluted EPS were $9.4 million and $0.04, respectively, versus $16.8 million and $0.08, respectively, in 3Q:25. Adjusted net income margin decreased to 2.2% from 3.8% in 3Q:25

Adjusted EBITDA was $55.1 million, down from $67.8 million. Adjusted EBITDA margin decreased 230 basis points sequentially to 12.9%. Adjusted EBITDA was negatively impacted by approximately $4.6 million in wireline cable expenses incurred during the quarter. Previously, wireline cables were capitalized. See Appendix C for additional details.

Balance Sheet, Cash Flow and Capital Allocation

Cash and cash equivalents increased to $210.0 million at the end of the fourth quarter, with no outstanding borrowings under the Company’s $100 million revolving credit facility.

Net cash provided by operating activities and Free cash flow were $201.3 million and $52.9 million, respectively, year-to-date through 4Q:25.

Payment of dividends totaled $35.1 million year-to-date through 4Q:25. As previously announced, the Board of Directors declared a regular quarterly cash dividend of $0.04 per share, payable on March 10, 2026, to common stockholders of record at the close of business on February 10, 2026.

Share repurchases totaled $2.9 million year-to-date through 4Q:25, all of which related to tax withholding for restricted stock vesting.

Segment Operations (sequential comparisons versus the previous quarter)

Technical Services performs value-added completion, production and maintenance services directly to a customer’s well. These services include pressure pumping, downhole tools, wireline, coiled tubing, cementing, and other offerings.

• Revenues were $405.2 million, down 4%
• Operating income was $8.5 million, down 65%
• Operating income was negatively impacted by approximately $8 million due to the transition to expensing wireline cables during the quarter. See Appendix A for additional details

Support Services provides equipment for customer use or services to assist customer operations, including rental tools, pipe inspection services and storage.

• Revenues were $20.5 million, down 18%
• Operating income was $1.7 million, down 63%
• Lower revenues were driven by decreased activity in rental tools, particularly in December

**Three Months Ended **

**Year Ended **

**December 31, **

September 30,

December 31,

**December 31, **

December 31,

(In thousands)

2025

2025

2024

2025

2024

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Revenues:

Technical Services

$

405,244

$

422,206

$

314,635

$

1,536,048

$

1,326,005

Support Services

20,533

24,897

20,726

90,518

88,994

Total revenues

$

425,777

$

447,103

$

335,361

$

1,626,566

$

1,414,999

Operating (loss) income:

Technical Services

$

8,457

(1)

$

24,448

$

10,603

$

68,031

$

89,101

Support Services

1,688

4,604

2,572

13,592

15,836

Corporate expenses

(7,748)

(5,348)

(4,515)

(24,771)

(15,598)

Acquisition related employment costs

(7,291)

(6,467)

—

(20,312)

—

Gain on disposition of assets, net

904

3,563

1,857

8,192

8,199

Total operating (loss) income

$

(3,990)

$

20,800

$

10,517

$

44,732

$

97,538

Interest expense

(942)

(949)

(130)

(3,029)

(724)

Interest income

1,654

1,748

3,303

8,415

13,134

Other income, net

3,426

968

350

6,431

2,854

Income before income taxes

$

148

$

22,567

$

14,040

$

56,549

$

112,802

(1) Beginning in the fourth quarter of 2025, wireline cables, previously capitalized and depreciated over 18 months, are now being expensed due to a change in their estimated useful lives. Wireline cable adjustments year-to-date totaled approximately $13.8 million: $4.7 million in second quarter, $4.5 million in the third quarter, and $4.6 million in the fourth quarter. Wireline cable purchase expenses are offset by a decrease in depreciation of $1.9 million in the second quarter, $2.5 million in the third quarter and $1.0 million in the fourth quarter. The net year-to-date operating income impact was additional expense of $8.3 million comprised of $2.8 million in the second quarter, $2.0 million in the third quarter and $3.5 million in the third quarter.

Conference Call Information

RPC, Inc. will hold a conference call today, February 3, 2026, at 9:00 a.m. ET to discuss the results for the quarter. Interested parties may listen in by accessing a live webcast in the investor relations section of RPC, Inc.’s website at www.rpc.net. The live conference call can also be accessed by calling (800) 715-9871, or (646) 307-1963 for international callers, and using conference ID number 5388095. For those not able to attend the live conference call, a replay will be available in the investor relations section of RPC, Inc.’s website beginning approximately two hours after the call and for a period of 90 days.

About RPC

RPC provides a broad range of specialized oilfield services and equipment primarily to independent and major oilfield companies engaged in the exploration, production and development of oil and gas properties throughout the United States, including the Gulf of America, mid-continent, southwest, Appalachian and Rocky Mountain regions, and in selected international markets. RPC’s investor website can be found at www.rpc.net.

Forward Looking Statements

Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements that look forward in time or express management’s beliefs, expectations or hopes. In particular, such statements include, without limitation: our focus on disciplined execution, leveraging our strong brands and diversified offerings, our belief that the macro environment remains challenging, with crude oil prices showing increased volatility due to recent geopolitical developments, and our focus on delivering full cycle returns by maintaining cost discipline, deploying capital strategically, and positioning the company for long-term success. Risk factors that could cause such future events not to occur as expected include the following: the price of oil and natural gas and overall performance of the U.S. economy, both of which can impact capital spending by our customers and demand for our services; the impact of tariffs, which may increase our cost of materials and impact our profitability, business interruptions due to adverse weather conditions; changes in the competitive environment of our industry, including the potential impact of the recent U.S. actions in Venezuela; political instability in the petroleum-producing regions of the world; the actions of the OPEC oil cartel; our customers’ drilling and production activities; and our ability to identify, complete and successfully integrate acquisitions and/or other strategic investments or transactions. Additional factors that could cause the actual results to differ materially from management’s projections, forecasts, estimates, and expectations are contained in RPC’s Form 10-K for the year ended December 31, 2024.

For information about RPC, Inc., please contact:

Joshua Large, Vice President, Corporate Finance and Investor Relations (404) 321-2152 [email protected]

Michael L. Schmit, Chief Financial Officer (404) 321-2140 [email protected]

RPC INCORPORATED AND SUBSIDIARIES

** CONSOLIDATED STATEMENTS OF OPERATIONS** (In thousands except per share data)

** Three Months Ended **

**Year Ended **

**December 31, **

September 30,

December 31,

**December 31, **

December 31,

2025

2025

2024

2025

2024

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

REVENUES

$

425,777

$

447,103

$

335,361

$

1,626,566

$

1,414,999

COSTS AND EXPENSES:

Cost of revenues (exclusive of depreciation and amortization shown separately below)

336,568

334,673

250,248

1,232,882

1,036,648

Selling, general and administrative expenses

47,687

44,628

41,249

175,639

156,437

Acquisition related employment costs

7,291

6,467

—

20,312

—

Depreciation and amortization

39,125

44,098

35,204

161,193

132,575

Gain on disposition of assets, net

(904)

(3,563)

(1,857)

(8,192)

(8,199)

Operating (loss) income

(3,990)

20,800

10,517

44,732

97,538

Interest expense

(942)

(949)

(130)

(3,029)

(724)

Interest income

1,654

1,748

3,303

8,415

13,134

Other income, net

3,426

968

350

6,431

2,854

Income before income taxes

148

22,567

14,040

56,549

112,802

Income tax provision

3,209

9,604

1,278

24,469

21,358

NET (LOSS) INCOME

$

(3,061)

$

12,963

$

12,762

$

32,080

$

91,444

(LOSS) EARNINGS PER SHARE (1)

Basic

$

(0.02)

$

0.06

$

0.06

$

0.15

$

0.43

Diluted

$

(0.02)

$

0.06

$

0.06

$

0.15

$

0.43

WEIGHTED AVERAGE SHARES OUTSTANDING (2)

Basic

212,247

220,575

214,950

219,362

214,942

Diluted

212,247

220,575

214,950

219,362

214,942

(1)	For the three months ended December 31, 2025, loss per share reflects a reduction of $0.01, due to the adjustment for earnings attributable to participating securities under the two-class method. Participating securities are share-based payment awards with non-forfeitable rights to dividends.
(2)	Average shares outstanding were reduced by 8,327 and 7,204 shares of participating securities for the three and twelve months ended December 31,2025, respectively, both under the two-class method and because the inclusion of such securities would be anti-dilutive.

RPC INCORPORATED AND SUBSIDIARIES

** CONSOLIDATED BALANCE SHEETS**

(In thousands)*

**December 31, **

December 31,

2025

2024

(Unaudited)

ASSETS

Cash and cash equivalents

$

209,974

$

325,975

Accounts receivable, net

327,668

276,577

Inventories

119,004

107,628

Income taxes receivable

6,302

4,332

Prepaid expenses

18,307

16,136

Other current assets

23,215

2,194

Total current assets

704,470

732,842

Property, plant and equipment, net

531,556

513,516

Operating lease right-of-use assets

24,094

27,465

Finance lease right-of-use assets

1,934

4,400

Goodwill

83,422

50,824

Other intangibles, net

97,499

13,843

Retirement plan assets

—

30,666

Other assets

25,410

12,933

Total assets

$

1,468,385

$

1,386,489

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES

Accounts payable

$

119,757

$

84,494

Accrued payroll and related expenses

38,636

25,243

Accrued insurance expenses

7,194

7,942

Accrued state, local and other taxes

3,543

3,234

Income taxes payable

787

446

Unearned revenue

13,233

45,376

Current portion of operating lease liabilities

7,606

7,108

Current portion of finance lease liabilities

977

3,522

Current portion of notes payable

20,000

—

Accrued expenses and other liabilities

5,419

4,548

Total current liabilities

217,152

181,913

Accrued insurance expenses

15,570

12,175

Retirement plan liabilities

—

24,539

Notes payable

30,000

—

Operating lease liabilities

17,762

21,724

Finance lease liabilities

1,041

559

Other long-term liabilities

10,814

9,099

Deferred income taxes

76,875

58,189

Total liabilities

369,214

308,198

STOCKHOLDERS’ EQUITY

Common stock

22,057

21,494

Capital in excess of par value

—

—

Retained earnings

1,079,664

1,059,625

Accumulated other comprehensive loss

(2,550)

(2,828)

Total stockholders’ equity

1,099,171

1,078,291

Total liabilities and stockholders’ equity

$

1,468,385

$

1,386,489

RPC INCORPORATED AND SUBSIDIARIES

** CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

(In thousands)*

**Twelve months ended December 31, **

2025

2024

(Unaudited)

OPERATING ACTIVITIES

**Net income **

$

32,080

$

91,444

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

161,193

132,575

Acquisition related employment costs

20,312

—

Working capital

(37,395)

116,663

Other operating activities

25,141

8,704

Net cash provided by operating activities

201,331

349,386

INVESTING ACTIVITIES

Capital expenditures

(148,407)

(219,930)

Proceeds from sale of assets

19,508

18,379

Purchase of business, net of cash and debt assumed

(153,420)

—

Proceeds from benefit plan financing arrangement

33,096

2,380

Distribution from benefit plan financing arrangement

(24,474)

(2,380)

Net cash used for investing activities

(273,697)

(201,551)

FINANCING ACTIVITIES

Payment of dividends

(35,122)

(34,433)

Repayment of debt assumed at acquisition

(4,502)

—

Cash paid for common stock purchased and retired

(2,868)

(9,938)

Cash paid for finance lease and finance obligations

(1,143)

(799)

Net cash used for financing activities

(43,635)

(45,170)

Net (decrease) increase in cash and cash equivalents

(116,001)

102,665

Cash and cash equivalents at beginning of period

325,975

223,310

Cash and cash equivalents at end of period

$

209,974

$

325,975

Non-GAAP Measures

RPC, Inc. has used the non-GAAP financial measures of adjusted revenues, adjusted operating income, adjusted net income, adjusted net income margin, adjusted earnings per share, adjusted EBITDA, adjusted EBITDA margin and free cash flow in today’s earnings release. These measures should not be considered in isolation or as a substitute for performance or liquidity measures prepared in accordance with GAAP. Management believes that presenting these non-GAAP measures, other than free cash flow, enables investors to compare the operating performance of our core business consistently over various time periods, and in the case of Adjusted EBITDA, without regard to changes in our capital structure or changes in our accounting for purchases of wireline cables. Management believes that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating RPC’s liquidity. Free cash flow should be considered in addition to, rather than as a substitute for, net cash provided by operating activities as a measure of our liquidity. Additionally, RPC’s definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, management believes it is important to view free cash flow as a measure that provides supplemental information to our Condensed Consolidated Statements of Cash Flows.

A non-GAAP financial measure is a numerical measure of financial performance, financial position, or cash flows that either 1) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of operations, balance sheet or statement of cash flows, or 2) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented.

Set forth in the appendices below are reconciliations of these non-GAAP measures with their most directly comparable GAAP measures. These reconciliations also appear on RPC, Inc.’s investor website, which can be found at www.rpc.net.

Appendix A

(Unaudited)

**Three Months Ended **

**Year Ended **

**December 31, **

September 30,

December 31,

**December 31, **

December 31,

(In thousands)

2025

2025

2024

2025

2024

Reconciliation of Operating (Loss) Income to Adjusted Operating Income

Operating (loss) income

$

(3,990)

$

20,800

$

10,517

$

44,732

$

97,538

Wireline cable expenses

4,818

(1)

(2,040)

(2)

—

—

—

Acquisition related employment costs

7,291

6,467

—

20,312

—

Adjusted operating income

$

8,119

$

25,226

$

10,517

$

65,044

$

97,538

(1) Beginning in the fourth quarter of 2025, wireline cables, previously capitalized and depreciated over 18 months, are now being expensed due to a change in their estimated useful lives. Wireline cable adjustments year-to-date totaled approximately $13.8 million: $4.7 million in second quarter, $4.5 million in the third quarter, and $4.6 million in the fourth quarter. Wireline cable purchase expenses are offset by a decrease in depreciation of $1.9 million in the second quarter, $2.5 million in the third quarter and $1.0 million in the fourth quarter. The net year-to-date operating income impact was additional expense of $8.3 million comprised of $2.8 million in the second quarter, $2.0 million in the third quarter and $3.5 million in the third quarter. We have made an adjustment to add back the second and third quarter charges to the fourth quarter results in order to provide better comparability going forward.
(2) Third quarter operating income would have been negatively impacted by $2.0 million had wireline cables been expensed during the period instead of capitalized. This adjustment has been made to the third quarter presentation to provide better comparability to the fourth quarter.

Appendix B

(Unaudited)

**Three Months Ended **

**Year Ended **

**December 31, **

September 30,

December 31,

**December 31, **

December 31,

(In thousands)

2025

2025

2024

2025

2024

Reconciliation of Net (Loss) Income to Adjusted Net Income

Net (loss) income

$

(3,061)

$

12,963

$

12,762

$

32,080

$

91,444

Adjustments:

Wireline cable expenses, before taxes (1)

4,818

(2,040)

(2)

—

—

—

Tax effect of wireline cable expenses

(1,132)

479

—

—

Acquisition related employment costs, before taxes (1)

7,291

6,467

—

20,312

—

Tax effect of Acquisition related employment costs

(2,504)

(1,051)

—

(2,753)

—

Taxes on company owned life insurance liquidation

3,962

—

—

3,962

—

Total adjustments, net of tax

12,435

3,855

—

21,521

—

Adjusted net income

$

9,373

$

16,818

$

12,762

$

53,601

$

91,444

(1) Beginning in the fourth quarter of 2025, wireline cables, previously capitalized and depreciated over 18 months, are now being expensed due to a change in their estimated useful lives. Wireline cable adjustments year-to-date totaled approximately $13.8 million: $4.7 million in second quarter, $4.5 million in the third quarter, and $4.6 million in the fourth quarter. Wireline cable purchase expenses are offset by a decrease in depreciation of $1.9 million in the second quarter, $2.5 million in the third quarter and $1.0 million in the fourth quarter. The net year-to-date operating income impact was additional expense of $8.3 million comprised of $2.8 million in the second quarter, $2.0 million in the third quarter and $3.5 million in the third quarter. We have made an adjustment to add back the second and third quarter charges to the fourth quarter results in order to provide better comparability going forward.
(2) Third quarter net income would have been negatively impacted by $2.0 million had wireline cables been expensed during the period instead of capitalized. This adjustment has been made to the third quarter presentation to provide better comparability to the fourth quarter.

(Unaudited)

**Three Months Ended **

**Year Ended **

**December 31, **

September 30,

December 31,

**December 31, **

December 31,

2025

2025

2024

2025

2024

Reconciliation of Diluted (Loss) Earnings Per Share to Adjusted Diluted Earnings Per Share

Diluted (loss) earnings per share

$

(0.02)

$

0.06

$

0.06

$

0.15

$

0.43

Adjustments:

Wireline cable expenses, before taxes (1)

0.02

(2)

(0.01)

(3)

—

—

—

Tax effect of wireline cable expenses

—

—

—

—

—

Acquisition related employment costs, before taxes

0.03

0.03

—

0.09

—

Tax effect of Acquisition related employment costs

(0.01)

—

—

(0.01)

—

Taxes on company owned life insurance liquidation

0.02

0.02

Total adjustments, net of tax

0.06

0.02

—

0.10

—

Adjusted diluted earnings per share

$

0.04

$

0.08

$

0.06

$

0.25

$

0.43

Weighted average shares outstanding (in thousands)

220,574

(2)

220,575

214,950

219,362

214,942

(1) Beginning in the fourth quarter of 2025, wireline cables, previously capitalized and depreciated over 18 months, are now being expensed due to a change in their estimated useful lives. Wireline cable adjustments year-to-date totaled approximately $13.8 million: $4.7 million in second quarter, $4.5 million in the third quarter, and $4.6 million in the fourth quarter. Wireline cable purchase expenses are offset by a decrease in depreciation of $1.9 million in the second quarter, $2.5 million in the third quarter and $1.0 million in the fourth quarter. The net year-to-date operating income impact was additional expense of $8.3 million comprised of $2.8 million in the second quarter, $2.0 million in the third quarter and $3.5 million in the third quarter. We have made an adjustment to add back the second and third quarter charges to the fourth quarter results in order to provide better comparability going forward.
(2) Includes participating securities that were excluded in the computation of loss per share since they were anti-dilutive.
(3) Third quarter EPS would have been negatively impacted by ($0.01) had wireline cables been expensed during the period instead of capitalized. This adjustment has been made to the third quarter presentation to provide better comparability to the fourth quarter.

Appendix C

(Unaudited)

**Three Months Ended **

**Year Ended **

**December 31, **

September 30,

December 31,

**December 31, **

December 31,

(In thousands)

2025

2025

2024

2025

2024

Reconciliation of Net Income to EBITDA and Adjusted EBITDA, and Net Income Margin to Adjusted Net Income Margin and Adjusted EBITDA Margin

Net (loss) income

$

(3,061)

$

12,963

$

12,762

$

32,080

$

91,444

Adjustments:

Add: Income tax provision

3,209

9,604

1,278

24,469

21,358

Add: Interest expense

942

949

130

3,029

724

Add: Depreciation and amortization

39,125

44,098

35,204

161,193

132,575

Less: Interest income

1,654

1,748

3,303

8,415

13,134

EBITDA

$

38,561

$

65,866

$

46,071

$

212,356

$

232,967

Add: Wireline cable expenses

9,251

(2)

(4,531)

(3)

—

—

—

Add: Acquisition related employment costs

7,291

6,467

—

20,312

—

Adjusted EBITDA

$

55,103

$

67,802

(3)

$

46,071

$

232,668

$

232,967

Revenues

$

425,777

$

447,103

$

335,361

$

1,626,566

$

1,414,999

Net (loss) income margin(1)

(0.72) %

2.90 %

3.81 %

1.97 %

6.46 %

Adjusted net income margin(1)

2.20 %

(2)

3.76 %

3.81 %

3.30 %

6.46 %

Adjusted EBITDA margin(1)

12.94 %

(2)

15.16 %

(3)

13.74 %

14.30 %

16.46 %

(1) Net income margin is calculated as Net income divided by Revenues. Adjusted net income margin is calculated as Adjusted net income divided by Revenues. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Revenues.
(2) Beginning in the fourth quarter of 2025, wireline cables, previously capitalized and depreciated over 18 months, are now being expensed due to a change in their estimated useful lives. Wireline cable adjustments year-to-date totaled approximately $13.8 million: $4.7 million in second quarter, $4.5 million in the third quarter, and $4.6 million in the fourth quarter. Wireline cable purchase expenses are offset by a decrease in depreciation of $1.9 million in the second quarter, $2.5 million in the third quarter and $1.0 million in the fourth quarter. The net year-to-date operating income impact was additional expense of $8.3 million comprised of $2.8 million in the second quarter, $2.0 million in the third quarter and $3.5 million in the third quarter. We have made an adjustment to add back the second and third quarter charges to the fourth quarter results in order to provide better comparability going forward.
(3) Third quarter Adjusted EBITDA would have been negatively impacted by approximately $4.5 million had wireline cables been expensed in the period. Adjusted EBITDA would have been $67.8 million. This adjustment has been made to the third quarter presentation to provide better comparability to the fourth quarter.

Appendix D

(Unaudited)

Twelve months ended December 31,

(In thousands)

2025

2024

Reconciliation of Operating Cash Flow to Free Cash Flow

Net cash provided by operating activities

$

201,331

$

349,386

Capital expenditures

(148,407)

(219,930)

Free cash flow

$

52,924

$

129,456

SOURCE RPC, Inc.