--- title: "Drilling Tools | 8-K: FY2026 Q1 Revenue Misses Estimate at USD 37.96 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285617551.md" datetime: "2026-05-07T20:53:16.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285617551.md) - [en](https://longbridge.com/en/news/285617551.md) - [zh-HK](https://longbridge.com/zh-HK/news/285617551.md) generator: "portal-rs" --- # Drilling Tools | 8-K: FY2026 Q1 Revenue Misses Estimate at USD 37.96 M Revenue: As of FY2026 Q1, the actual value is USD 37.96 M, missing the estimate of USD 38.21 M. EPS: As of FY2026 Q1, the actual value is USD -0.04, missing the estimate of USD 0.01. EBIT: As of FY2026 Q1, the actual value is USD -1.082 M. ### Financial and Operational Highlights for Drilling Tools International Corporation (Q1 2026 vs. Q1 2025) #### Revenue - Total consolidated revenue was $38.0 million in Q1 2026, down from $42.88 million in Q1 2025 . - Tool Rental revenue decreased to $28.9 million in Q1 2026 from $34.53 million in Q1 2025 . - Product Sales revenue increased to $9.0 million in Q1 2026 from $8.35 million in Q1 2025 . #### Net Income / Loss - Net Loss attributable to common stockholders improved to -$1.5 million in Q1 2026 from -$1.67 million in Q1 2025 . - Adjusted Net Loss was -$1.01 million in Q1 2026, compared to an Adjusted Net Income of $1.01 million in Q1 2025 . #### Profitability Metrics - Adjusted EBITDA was $7.5 million in Q1 2026, a decrease from $10.75 million in Q1 2025 . - Income (loss) before income tax expense was -$2.10 million in Q1 2026, compared to -$1.83 million in Q1 2025 . - Income tax benefit (expense) increased to $0.56 million in Q1 2026 from $0.16 million in Q1 2025 . #### Operating Costs - Cost of tool rental revenue was $7.75 million in Q1 2026, slightly up from $7.69 million in Q1 2025 . - Cost of product sale revenue was $3.36 million in Q1 2026, down from $3.56 million in Q1 2025 . - Selling, general, and administrative expense decreased to $20.23 million in Q1 2026 from $21.61 million in Q1 2025 . - Depreciation and amortization expense was $6.93 million in Q1 2026, compared to $6.72 million in Q1 2025 . - Interest expense, net was $1.01 million in Q1 2026, down from $1.31 million in Q1 2025 . #### Cash Flow - Adjusted Free Cash Flow was -$0.16 million in Q1 2026, a significant decrease from $5.71 million in Q1 2025 . - Net cash flows from operating activities were -$3.16 million in Q1 2026, compared to $2.43 million in Q1 2025 . - Net cash flows from investing activities improved to -$2.97 million in Q1 2026 from -$7.28 million in Q1 2025 . - Net cash flows from financing activities increased to $5.28 million in Q1 2026 from $1.39 million in Q1 2025 . #### Balance Sheet Items - As of March 31, 2026, cash and cash equivalents stood at $2.8 million . - Net debt as of March 31, 2026, was $48.9 million . #### Operational Insights - First quarter results were largely in-line with expectations, despite softness in Canada and a 4% year-over-year decline in global rig count . - Drilling Tools International Corporation is focusing on leveraging its specialized product suite to capture international market share and enhance its mix towards higher-margin, technology-enabled solutions . - The company completed its transition to a fully independent public company with broader ownership and a refreshed Board of Directors . #### 2026 Full Year Outlook - Drilling Tools International Corporation reaffirms its full-year guidance for 2026, expecting revenue to range between $155 million and $170 million . - Adjusted EBITDA is projected to be between $35 million and $45 million, with an Adjusted EBITDA Margin of 23% to 26% . - Adjusted Free Cash Flow is anticipated to be between $17 million and $22 million . ### Related Stocks - [DTI.US](https://longbridge.com/en/quote/DTI.US.md) ## Related News & Research - [DTI: 2026 outlook projects strong revenue and free cash flow growth amid global expansion](https://longbridge.com/en/news/296002043.md) - [Drilling Tools International publishes investor presentation outlining strategy and drilling-tool portfolio expansion](https://longbridge.com/en/news/295961182.md) - [ZTO Express Q2 2026 Earnings Preview](https://longbridge.com/en/news/296149351.md) - [Public Storage announces R$ 0.41 per unit dividend for Q3 2026](https://longbridge.com/en/news/296635332.md) - [REG - UIL Limited UIL Finance Ltd - Purchase of 2026 ZDP Shares](https://longbridge.com/en/news/296518280.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**