--- title: "RPC | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 454.76 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285762364.md" datetime: "2026-05-08T18:22:25.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285762364.md) - [en](https://longbridge.com/en/news/285762364.md) - [zh-HK](https://longbridge.com/zh-HK/news/285762364.md) --- # RPC | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 454.76 M Revenue: As of FY2026 Q1, the actual value is USD 454.76 M, beating the estimate of USD 406.68 M. EPS: As of FY2026 Q1, the actual value is USD 0. EBIT: As of FY2026 Q1, the actual value is USD 1.68 M. #### Consolidated Performance - **Operating Income**: Operating income decreased to $2,620 thousand in 2026 from $12,386 thousand in 2025. - **Net Income**: Net income was $855 thousand in 2026, a significant decrease from $12,030 thousand in 2025. - **Net Income Margin**: The net income margin declined to 0.2% in 2026 from 3.6% in 2025. - **Cost of Revenues**: Cost of revenues (exclusive of depreciation and amortization) increased by 45.8% to $355,585 thousand in 2026 from $243,895 thousand in 2025, primarily due to costs from the Pintail acquisition and higher activity levels. - **Selling, General and Administrative Expenses**: These expenses rose to $48,207 thousand in 2026 from $42,499 thousand in 2025, driven by variable expenses from increased activity and Pintail acquisition-related costs. - **Acquisition Related Employment Costs**: These costs were $7,292 thousand in 2026, with no comparable costs in 2025, representing non-cash accounting adjustments for the Pintail acquisition. - **Depreciation and Amortization**: Depreciation and amortization increased by 20.3% to $42,854 thousand in 2026 from $35,623 thousand in 2025, due to additional fixed assets and intangibles from the Pintail acquisition and capital expenditures. - **Interest Expense**: Interest expense increased significantly to $830 thousand in 2026 from $131 thousand in 2025, mainly due to interest on the Seller Note from the Pintail acquisition. - **Interest Income**: Interest income decreased to $1,770 thousand in 2026 from $3,395 thousand in 2025, attributed to a lower average cash balance following the Pintail acquisition. - **Income Tax Provision**: The income tax provision was $3,454 thousand in 2026 compared to $4,505 thousand in 2025, with the effective tax rate increasing to 80.1% in 2026 from 27.2% in 2025 due to non-deductible acquisition-related employment costs impacting lower pretax income disproportionately. #### Technical Services Segment - **Revenues**: Technical Services revenues increased by 39.3% to $434,282 thousand in 2026 from $311,844 thousand in 2025. - **Operating Income**: The segment’s operating income rose to $15,978 thousand in 2026 from $14,003 thousand in 2025. - **Major Service Line Revenues (2026 vs. 2025)**: - Pressure Pumping: $140,792 thousand vs $133,617 thousand - Downhole Tools: $105,910 thousand vs $93,865 thousand - Wireline: $103,213 thousand vs $3,918 thousand - Coiled Tubing: $38,479 thousand vs $31,930 thousand - Cementing: $26,154 thousand vs $27,662 thousand - Nitrogen: $7,404 thousand vs $7,912 thousand - Snubbing: $7,882 thousand vs $7,336 thousand - All other Technical Services: $4,448 thousand vs $5,604 thousand #### Support Services Segment - **Revenues**: Support Services revenues decreased by 2.7% to $20,473 thousand in 2026 from $21,033 thousand in 2025. - **Operating Income**: The segment’s operating income decreased significantly to $401 thousand in 2026 from $2,661 thousand in 2025. - **Major Service Line Revenues (2026 vs. 2025)**: - Rental Tools: $13,808 thousand vs $15,402 thousand - All other Support Services: $6,665 thousand vs $5,631 thousand #### Cash Flow - **Net Cash Provided by Operating Activities**: Operating cash flow decreased to $31,173 thousand in 2026 from $39,865 thousand in 2025. - **Net Cash Used for Investing Activities**: Investing cash flow remained stable at - $27,840 thousand in 2026 compared to - $27,443 thousand in 2025. - **Net Cash Used for Financing Activities**: Financing cash flow increased to - $12,577 thousand in 2026 from - $11,673 thousand in 2025. - **Free Cash Flow**: Free cash flow was - $932 thousand in 2026, a decrease from $7,595 thousand in 2025. #### Unique Metrics (Non-GAAP) - **Adjusted EBITDA**: Adjusted EBITDA increased to $53,515 thousand in 2026 from $48,894 thousand in 2025. - **Adjusted EBITDA Margin**: The Adjusted EBITDA margin decreased to 11.8% in 2026 from 14.7% in 2025. #### Outlook and Strategy RPC, Inc. expects capital expenditures for 2026 to be between $160 million and $180 million, focusing on capitalized maintenance, growth opportunities, and system upgrades. 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