--- title: "NCS Multistage | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 45.64 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/284827762.md" datetime: "2026-04-30T20:11:40.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/284827762.md) - [en](https://longbridge.com/en/news/284827762.md) - [zh-HK](https://longbridge.com/zh-HK/news/284827762.md) --- # NCS Multistage | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 45.64 M Revenue: As of FY2026 Q1, the actual value is USD 45.64 M, missing the estimate of USD 51 M. EPS: As of FY2026 Q1, the actual value is USD -0.14, missing the estimate of USD 1.58. EBIT: As of FY2026 Q1, the actual value is USD 874 K. ### Segment Revenue NCS Multistage Holdings, Inc.’s total revenues for the three months ended March 31, 2026, were $45.6 million, a decrease of - $4.4 million or -8.7% compared to $50.0 million for the same period in 2025. #### Product Sales Product sales totaled $32.6 million for the three months ended March 31, 2026, a decrease of - $2.5 million or -7.1% from $35.1 million in 2025, constituting 71% of total revenues in 2026 and 70% in 2025. #### Services Revenue Services revenue was $13.1 million for the three months ended March 31, 2026, marking a decrease of - $1.9 million or -12.6% from $14.9 million in 2025, and accounted for 29% of total revenues in 2026 versus 30% in 2025. #### Revenue by Geographic Area Total revenues in the United States increased to $19.1 million in Q1 2026 from $9.4 million in Q1 2025, an increase of $9.8 million or 104.2%. Product sales in the U.S. increased by $7.3 million (106.9%) to $14.2 million, while services revenue increased by $2.4 million (96.8%) to $4.9 million. Conversely, total revenues in Canada decreased to $23.2 million in Q1 2026 from $37.7 million in Q1 2025, a decrease of - $14.5 million or -38.5%. Canadian product sales decreased by - $10.7 million (-39.8%) to $16.2 million, and services revenue decreased by - $3.8 million (-35.2%) to $7.0 million. Canada’s revenues accounted for approximately 51% of total revenues for Q1 2026, down from 75% for Q1 2025. Revenues from other countries increased to $3.3 million in Q1 2026 from $2.9 million in Q1 2025, an increase of $0.4 million or 12.7%. Product sales in other countries increased by $0.9 million (63.0%) to $2.2 million, while services revenue decreased by - $0.5 million (-31.0%) to $1.1 million. ### Operational Metrics NCS Multistage Holdings, Inc. reported a net loss attributable to the company of - $0.4 million for the three months ended March 31, 2026, a significant decrease from net income of $4.1 million for the same period in 2025. Income from operations decreased by - $3.4 million or -80.2%, to $0.8 million for Q1 2026 from $4.3 million in Q1 2025. #### Gross Margin Total gross margin decreased to 38.1% in Q1 2026 from 42.3% in Q1 2025. Product sales gross margin decreased to 37.8% from 40.5%, and services gross margin decreased to 38.8% from 46.4% over the same periods. #### Operating Costs Total cost of sales (exclusive of D&A) was $27.5 million in Q1 2026, a decrease of - $0.7 million or -2.4% from $28.2 million in Q1 2025. Selling, General and Administrative (SG&A) expenses decreased by - $0.5 million or -2.9% to $15.7 million in Q1 2026 from $16.2 million in Q1 2025. Within SG&A, payroll and employee benefits decreased from $9.95 million to $9.6 million, and share-based compensation decreased from $1.4 million to $1.2 million. Depreciation increased by $0.1 million or 7.4% to $1.3 million, and amortization increased by $0.1 million or 80.8% to $0.3 million. Operating costs denominated in Canadian dollars approximated 21% for Q1 2026, down from 35% for Q1 2025. #### Other Income (Expense) Net interest expense was - $0.03 million in Q1 2026 compared to - $0.04 million in Q1 2025. Other income, net, increased by $1.0 million or 111.0% to $1.9 million in Q1 2026 from $0.9 million in Q1 2025. A foreign currency exchange loss, net, of - $0.11 million was reported in Q1 2026 compared to - $0.003 million in Q1 2025. #### Income Tax Expense Income tax expense was $0.8 million in Q1 2026, up from $0.7 million in Q1 2025, with an effective tax rate of 32.4% for Q1 2026 compared to 13.1% for Q1 2025. ### Cash Flow Net cash provided by operating activities was $1.3 million for the three months ended March 31, 2026, an increase from - $1.6 million used in operating activities for the same period in 2025. Net cash used in investing activities was - $0.6 million for Q1 2026, compared to - $0.5 million for Q1 2025, primarily due to purchases of property and equipment, and the purchase and development of software and technology. Net cash used in financing activities was - $2.9 million for Q1 2026, compared to - $0.8 million for Q1 2025, driven by payments on finance leases, payment of contingent consideration, and treasury shares withheld for equity-settled awards. Cash and cash equivalents were $34.5 million as of March 31, 2026, down from $36.7 million as of December 31, 2025. ### Unique Metrics NCS Multistage Holdings, Inc. acquired Reservoir Metrics, LLC for $7.1 million on July 31, 2025, with $1.3 million of contingent consideration paid in January 2026. ResMetrics contributed $1.8 million in revenue and a loss of - $0.2 million before tax to consolidated results for Q1 2026. Total outstanding indebtedness related to finance lease obligations was $7.2 million as of March 31, 2026. The ABL Facility had an available borrowing base of $18.5 million with no outstanding borrowings, and the Repeat Precision Promissory Note had a $2.5 million borrowing capacity with no outstanding indebtedness. Capital expenditures were $0.6 million for Q1 2026 and $0.5 million for Q1 2025. ### Future Outlook and Strategy NCS Multistage Holdings, Inc. anticipates stable activity levels in Canadian and U.S. markets for 2026, consistent with 2025, due to E&P operators’ focus on capital discipline and returns-focused spending, despite elevated commodity prices. International spending is also expected to remain stable relative to 2025. The company projects capital expenditures between $2.2 million and $2.8 million in 2026, primarily for manufacturing upgrades, R&D equipment, and field service equipment, with an increased focus on expanding Repeat Precision’s manufacturing capacity in Mexico to meet rising demand. ### Related Stocks - [NCSM.US](https://longbridge.com/en/quote/NCSM.US.md) ## Related News & Research - [NCS Multistage Holdings, Inc. 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