DTI reports a Q1 net loss of $1.5 million but maintains full-year guidance amid mixed regional activity and offshore momentum.
Drilling Tools International (NASDAQ:DTI) reported first-quarter revenue of $38.0 million and a net loss of $1.5 million, or $1.0 million on an adjusted basis. Adjusted EBITDA reached $7.5 million, while adjusted free cash flow was negative $0.16 million. Management attributed the results to softer North American land activity and an early Canadian spring breakup, offset by strength in international offshore markets and technology adoption.
The company reaffirmed its 2026 guidance, targeting revenue of $155–170 million, adjusted EBITDA of $35–45 million, and adjusted free cash flow of $17–22 million. Tool rental gross margins remained above 70% despite pricing pressure. Capital expenditures totaled $7.7 million for the quarter, with cash balances at $2.8 million and net debt of $48.9 million.
DTI’s primary sponsor completed the distribution of its remaining shares, increasing the public float to approximately 90% and transitioning the company to full public ownership. Management described the quarter as “largely as anticipated” during the earnings call.