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 .