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Dawson Geophysical Co

DAWSON GEOPHYSICAL REPORTS SECOND QUARTER 2025 RESULTS

MIDLAND, Texas , Aug. 12, 2025 /PRNewswire/ -- Dawson Geophysical Company (NASDAQ: DWSN) (the "Company") today reported unaudited financial results for its second quarter ended June 30, 2025.

Management Comment

Tony Clark, Dawson's President and CEO, commented, "Due to the observed increase in demand for large integrated high-resolution, high channel count surveys and improvement to our backlog, we made the decision to make a significant capital investment to purchase new single node channels from a wholly-owned subsidiary of Geospace Technologies. These new channels are a small, lightweight, single-component, autonomous land wireless seismic data acquisition solution. Each sub-1-pound wireless geophone (5 HZ), battery, 24-bit digitizer, and GPS receiver are enclosed in its sealed case, allowing for a more efficient and faster field deployment and retrieval operation, which we expect will significantly improve our operational efficiency. Increasing our channel count with this purchase coupled with our existing channels will allow us to be able to acquire higher and more intensive seismic surveys in North America, as well as be more competitive on the smaller 2D & 3D surveys.

We deployed one large channel crew at the beginning of April, which should keep that crew highly utilized throughout the end of the year. We continue to improve our backlog, and have multiple jobs contracted for quick deployment of our recently purchased equipment. We expect that this investment will improve our top line and bottom-line results as the equipment is deployed and we capitalize on the anticipated efficiencies."

Second Quarter and Year-to-Date Results

For the second quarter ended June 30, 2025, the Company reported fee revenues of $8.7 million, an increase of 5% compared to $8.3 million for the comparable quarter ended June 30, 2024. Total revenue included reimbursable revenue of $1.1 million and $4.2 million for the quarters ended June 30, 2025, and June 30, 2024, respectively. Gross margin1 for the quarter ended June 30, 2025, was 13% compared to 1% for the comparable quarter ended June 30, 2024, due to improved efficiencies in our operations. Our revenues in the United States increased over 200% quarter over quarter due to improved crew utilization, and we expect our revenue to continue to increase in the third quarter due to our strong backlog.

We incurred a net loss of $2.3 million or $0.08 per common share compared to a net loss of $3.5 million or $0.12 per common share for the quarters ended June 30, 2025 and 2024, respectively. During the quarter ended June 30, 2025, we generated negative EBITDA of $1.2 million, compared to negative EBITDA of $2.3 million in the same quarter of 2024.

For the year to date ended June 30, 2025, we incurred a net loss of $1.4 million or $0.04 per common share compared to net income of $2.3 million or $0.07 per common share for the same period of 2024. For the year to date ended June 30, 2025, we generated EBITDA of $1.2 million, compared to EBITDA of $5.2 million in the same period of 2024.

1 Defined as fee revenues less fee operating expenses, divided by fee revenues

Operations Update

We deployed one large channel crew at the beginning of April, which should keep that crew highly utilized throughout the remainder of the year in the United States. We continue to improve our backlog and have multiple small channel crew jobs contracted in the third quarter for quick deployment of our recently purchased equipment.

Capital Budget and Liquidity

On August 8, 2025, Dawson Operating LLC, a wholly-owned subsidiary of the Company ("Dawson Operating"), entered into an Equipment Purchase Agreement, with GTC, Inc., a wholly-owned subsidiary of Geospace Technologies Corporation("GTC"), to acquire single point node channels (the "Purchase Agreement"). Under the Purchase Agreement, the equipment is to be delivered in three shipments commencing in August 2025, with the final shipment scheduled for delivery by early January 2026.

The Purchase Agreement provides that, subject to the terms and conditions set forth therein, Dawson Operating will pay to GTC an aggregate purchase price of approximately $24.2 million, as follows: (i) approximately $4.8 million paid in cash in connection with the execution of the Purchase Agreement; (ii) approximately $1.2 million will be payable in cash upon acceptance of the third and final delivery of the equipment; and (iii) approximately $18.2 million in the aggregate will be financed by the delivery of three separate thirty-six (36) month promissory notes each with a fixed interest rate of 8.75% (each, a "Note" and collectively, the "Geospace Notes") payable by Dawson Operating and the Company, jointly and severally, to GTC, with each Note to be issued in connection with the Dawson Operating's acceptance of one of the three equipment deliveries. We believe this investment will allow the Company to be a leader in the industry, giving us a competitive advantage for large integrated high-resolution, high channel count surveys currently demanded by the exploration & production efforts of our customers.

We increased our cash position to $16.2 million at June 30, 2025 and improved our positive working capital position to $4.9 million, compared to $1.4 million and $4.6 million, at December 31, 2024, respectively. We believe that our cash on hand and operating cash flows are sufficient to fund our operating and investing cash flow requirements as well as our obligations under the Geospace Notes.

About Dawson

Dawson Geophysical Company is a leading provider of North American onshore seismic data acquisition services with operations throughout the continental United States and Canada. Dawson acquires and processes 2-D, 3-D and multi-component seismic data solely for its clients, ranging from major oil and gas companies to independent oil and gas operators, as well as providers of multi-client data libraries. Carbon Capture Utilization and Storage ("CCUS") seismic monitoring continues to grow and be an intricate part of our business.  Dawson has acquired several CCUS base surveys and plan to acquire more in the future.

Non-GAAP Financial Measures

In an effort to provide investors with additional information regarding the Company's preliminary and unaudited results as determined by generally accepted accounting principles ("GAAP"), the Company has included in this press release information about the Company's EBITDA, a non-GAAP financial measure as defined by Regulation G promulgated by the U.S. Securities and Exchange Commission. The Company defines EBITDA as net income (loss) plus interest expense, interest income, income taxes, depreciation and amortization expense. The Company uses EBITDA, further adjusted for other unusual items, when applicable, as a supplemental financial measure to assess:

  • the financial performance of its assets without regard to financing methods, capital structures, taxes or historical cost basis;
  • its liquidity and operating performance over time in relation to other companies that own similar assets and that the Company believes calculate EBITDA in a similar manner; and
  • the ability of the Company's assets to generate cash sufficient for the Company to pay potential interest costs.

The Company also understands that such data are used by investors to assess the Company's performance. However, the term EBITDA is not defined under GAAP, and EBITDA is not a measure of operating income, operating performance or liquidity presented in accordance with GAAP.  When assessing the Company's operating performance or liquidity, investors and others should not consider this data in isolation or as a substitute for net income (loss), cash flow from operating activities or other cash flow data calculated in accordance with GAAP. In addition, the Company's EBITDA may not be comparable to EBITDA or similar titled measures utilized by other companies since such other companies may not calculate EBITDA in the same manner as the Company. Further, the results presented by EBITDA cannot be achieved without incurring the costs that the measure excludes: interest, taxes, and depreciation and amortization. Reconciliations of the Company's EBITDA to its net loss and to net cash provided by operating activities is presented in the tables following the text of this press release.

Forward-Looking Statements

Certain statements in this press release may be considered "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be accompanied by words such as "may," "should," "expect," "intend," "will," "estimate," "anticipate," "believe," "predict," or similar words. Forward-looking statements relate to future events or the Company's future financial or operating performance. These forward-looking statements include, among other things, statements regarding: expected utilization levels; the Company's; statements regarding the anticipated benefits of the transactions contemplated by the Purchase Agreement, including statements related to potential competitive advantages and improved efficiencies resulting from such transactions, and the benefits of the purchased single node channels are expected to deliver;; the Company's currently expected guidance regarding its planned operations levels and capital expenditures; the Company's strategies and plans for growth; the Company's positioning, resources, capabilities, and expectations for future performance; customer, market and industry demand and expectations; statements regarding the Company's liquidity; the amount of capital that may be available to the Company in future periods; any financial or other information based upon or otherwise incorporating judgments or estimates relating to future performance, events or expectations; any estimates and forecasts of financial and other performance metrics; and the Company's outlook and financial and other guidance. Such forward-looking statements are based upon assumptions made by the Company as of the date hereof and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include, but are not limited to, risks relating to the efficacy of the purchased single node channels; the risk that the delivery of the equipment may not be delivered in a timely manner or at all; the Company's ability to execute its business strategies and plans for growth; the failure to operationalize the acquired equipment in a timely manner or at all; risks associated with the Company's  ability to finance the transaction contemplated by the Purchase Agreement; the Company's status as a controlled public company, which exempts the Company from certain corporate governance requirements; the limited market for the Company's shares; the impact of general economic, industry, market or political conditions, including tariffs; dependence upon energy industry spending; changes in exploration and production spending by our customers and changes in the level of oil and natural gas exploration and development; the results of operations and financial condition of our customers, particularly during extended periods of low prices for crude oil and natural gas; the volatility of oil and natural gas prices and markets; changes in economic conditions; surplus in the supply of oil and the ability of the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+ to agree on and comply with supply limitations; the duration and magnitude of the unprecedented disruption in the oil and gas industry currently resulting from the impact of the foregoing factors, which is negatively impacting our business; the potential for contract delays; reductions or cancellations of service contracts; limited number of customers; credit risk related to our customers; reduced utilization; high fixed costs of operations and high capital requirements; industry competition; external factors affecting the Company's crews such as weather interruptions and inability to obtain land access rights of way; whether the Company enters into turnkey or day rate contracts; crew productivity; the availability of capital resources; disruptions in the global economy, including export controls and financial and economic sanctions imposed on certain industry sectors and parties as a result of the developments in Ukraine and related activities, and whether or not a future transaction or other action occurs that causes the Company to be delisted from Nasdaq and no longer be required to make filings with the SEC. A discussion of these and other factors, including risks and uncertainties, is set forth in the Company's Annual Report on Form 10-K that was filed with the SEC on April 2, 2025. The Company disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

DAWSON GEOPHYSICAL COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(unaudited and amounts in thousands, except share and per share data)



Three Months Ended June 30, 


Six Months Ended June 30, 



2025


2024


2025


2024


Operating revenues:













Fee Revenue

$

8,735


$

8,326


$

23,994


$

35,064


Reimbursable Revenue


1,116



4,186



1,935



9,032




9,851



12,512



25,929



44,096


Operating costs:













Operating expenses













Fee operating expenses


7,601



8,205



18,561



25,319


Reimbursable operating expenses


1,116



4,186



1,935



9,032


   Total operating expenses


8,717



12,391



20,496



34,351


General and administrative


2,331



2,484



4,325



4,717


Depreciation and amortization


1,174



1,406



2,445



2,995




12,222



16,281



27,266



42,063















(Loss) income from operations


(2,371)



(3,769)



(1,337)



2,033















Other income (expense):













Interest income


35



105



39



218


Interest expense


(58)



(39)



(134)



(85)


Other income (expense), net


38



26



71



205















(Loss) income before income tax


(2,356)



(3,677)



(1,361)



2,371















Income tax benefit (expense)


7



131



4



(71)















Net (loss) income


(2,349)



(3,546)



(1,357)



2,300















Other comprehensive income (loss):













     Net unrealized income (loss) on foreign exchange rate translation


477



(110)



447



(270)















Comprehensive (loss) income

$

(1,872)


$

(3,656)


$

(910)


$

2,030















Basic (loss) income per share of common stock

$

(0.08)


$

(0.12)


$

(0.04)


$

0.07















Diluted (loss) income per share of common stock

$

(0.08)


$

(0.12)


$

(0.04)


$

0.07















Weighted average equivalent common shares outstanding


30,986,929



30,815,443



30,985,212



30,813,886















Weighted average equivalent common shares outstanding -
assuming dilution


30,986,929



30,815,443



30,985,212



30,813,886


 

DAWSON GEOPHYSICAL COMPANY

CONSOLIDATED BALANCE SHEETS

(unaudited and amounts in thousands, except share data)




June 30, 


December 31,




2025


2024


Assets








Current assets:








Cash and cash equivalents


$

16,228


$

1,385


Accounts receivable, net



3,524



9,970


Contract assets



7,454



391


Prepaid expenses and other current assets



4,222



2,795


Total current assets



31,428



14,541










Property and equipment



237,255



238,064


Less accumulated depreciation



(225,925)



(225,085)


Property and equipment, net



11,330



12,979










Operating lease right-of-use assets



2,559



3,002










Intangibles, net



367



348










Total assets


$

45,684


$

30,870










Liabilities and Stockholders' Equity








Current liabilities:








Accounts payable


$

2,991


$

3,381


Accrued liabilities:








Payroll costs and other taxes



1,786



2,014


Other



932



830


Deferred revenue



17,935



1,570


Current maturities of notes payable and finance leases



1,723



1,010


Current maturities of operating lease liabilities



1,178



1,125


Total current liabilities



26,545



9,930










Long-term liabilities:








Notes payable and finance leases, net of current maturities



1,127



1,512


Operating lease liabilities, net of current maturities



1,583



2,131


Deferred tax liabilities, net



16



16


Total long-term liabilities



2,726



3,659










Commitments and contingencies



—



—










Stockholders' equity:








Preferred stock-par value $1.00 per share; 4,000,000 shares authorized, none outstanding



—



—


Common stock-par value $0.01 per share; 35,000,000 shares authorized,








        31,047,801 and 30,983,437 shares issued and outstanding at June 30, 2025








        and December 31, 2024, respectively



310



310


Additional paid-in capital



157,115



157,073


Accumulated deficit



(138,976)



(137,619)


Accumulated other comprehensive loss, net



(2,036)



(2,483)


Total stockholders' equity



16,413



17,281










Total liabilities and stockholders' equity


$

45,684


$

30,870


 

Reconciliation of EBITDA to Net (Loss) Income

(amounts in thousands)



Three Months Ended June 30,


2025 US


2025 CA


2025 Consol.


2024 US


2024 CA


2024 Consol.

Net loss

$

(1,297)


$

(1,052)


$

(2,349)


$

(2,434)


$

(1,112)


$

(3,546)

Depreciation and amortization


981



193



1,174



1,162



244



1,406

Interest expense (income), net


20



3



23



(60)



(6)



(66)

Income tax benefit


(7)



—



(7)



(131)



—



(131)

EBITDA

$

(303)


$

(856)


$

(1,159)


$

(1,463)


$

(874)


$

(2,337)






































Six Months Ended June 30,


2025 US


2025 CA


2025 Consol.


2024 US


2024 CA


2024 Consol.

Net (loss) income

$

(5,843)


$

4,486


$

(1,357)


$

(129)


$

2,429


$

2,300

Depreciation and amortization


2,058



387



2,445



2,467



528



2,995

Interest income, net


83



12



95



(123)



(10)



(133)

Income tax (benefit) expense


(4)



—



(4)



71



—



71

EBITDA

$

(3,706)


$

4,885


$

1,179


$

2,286


$

2,947


$

5,233

 

Reconciliation of EBITDA to Net Cash Provided By Operating Activities

(amounts in thousands) 



Three Months Ended June 30,


2025 US


2025 CA


2025 Consol.


2024 US


2024 CA


2024 Consol.

Net cash provided by operating activities

$

6,742


$

8,133


$

14,875


$

1,302


$

4,618


$

5,920

Changes in working capital and other items


(6,805)



(8,932)



(15,737)



(2,251)



(5,442)



(7,693)

Non-cash adjustments to net loss


(240)



(57)



(297)



(514)



(50)



(564)

EBITDA

$

(303)


$

(856)


$

(1,159)


$

(1,463)


$

(874)


$

(2,337)






































Six Months Ended June 30,


2025 US


2025 CA


2025 Consol.


2024 US


2024 CA


2024 Consol.

Net cash provided by operating activities

$

8,286


$

8,341


$

16,627


$

3,298


$

4,492


$

7,790

Changes in working capital and other items


(11,335)



(3,345)



(14,680)



(278)



(1,444)



(1,722)

Non-cash adjustments to net (loss) income


(657)



(111)



(768)



(734)



(101)



(835)

EBITDA

$

(3,706)


$

4,885


$

1,179


$

2,286


$

2,947


$

5,233

 

Statements of Operations by operating segment for the three and six months ended June 30, 2025, and 2024.



Three Months Ended June 30, 2025


Six Months Ended June 30, 2025


USA Operations


Canada Operations


Consolidated


USA Operations


Canada Operations


Consolidated

Operating revenues


















   Fee revenue

$

8,404


$

331


$

8,735


$

11,130


$

12,864


$

23,994

   Reimbursable revenue


1,116



—



1,116



1,686



249



1,935



9,520



331



9,851



12,816



13,113



25,929



















Operating costs:


















      Fee operating expenses


6,742



859



7,601



11,357



7,204



18,561

      Reimbursable operating expenses


1,116



—



1,116



1,686



249



1,935

   Operating expenses


7,858



859



8,717



13,043



7,453



20,496

   General and administrative


1,998



333



2,331



3,553



772



4,325

   Depreciation and amortization


981



193



1,174



2,058



387



2,445



10,837



1,385



12,222



18,654



8,612



27,266



















(Loss) income from operations


(1,317)



(1,054)



(2,371)



(5,838)



4,501



(1,337)



















Other income (expense):


















   Interest income


26



9



35



26



13



39

   Interest expense


(46)



(12)



(58)



(109)



(25)



(134)

   Other income (expense), net


33



5



38



74



(3)



71

(Loss) income before income tax


(1,304)



(1,052)



(2,356)



(5,847)



4,486



(1,361)

   Current


7



—



7



4



—



4

   Deferred


—



—



—



—



—



—

Income tax benefit


7



—



7



4



—



4

Net (loss) income

$

(1,297)


$

(1,052)


$

(2,349)


$

(5,843)


$

4,486


$

(1,357)



















EBITDA

$

(303)


$

(856)


$

(1,159)


$

(3,706)


$

4,885


$

1,179






































Three Months Ended June 30, 2024


Six Months Ended June 30, 2024


USA Operations


Canada Operations


Consolidated


USA Operations


Canada Operations


Consolidated

Operating revenues


















   Fee revenue

$

8,321


$

5


$

8,326


$

26,608


$

8,456


$

35,064

   Reimbursable revenue


4,186



—



4,186



8,995



37



9,032



12,507



5



12,512



35,603



8,493



44,096



















Operating costs:


















      Fee operating expenses


7,648



557



8,205



20,541



4,778



25,319

      Reimbursable operating expenses


4,186



—



4,186



8,995



37



9,032

   Operating expenses


11,834



557



12,391



29,536



4,815



34,351

   General and administrative


2,181



303



2,484



4,011



706



4,717

   Depreciation and amortization


1,162



244



1,406



2,467



528



2,995



15,177



1,104



16,281



36,014



6,049



42,063



















(loss) income from operations


(2,670)



(1,099)



(3,769)



(411)



2,444



2,033



















Other income (expense):


















   Interest income


89



16



105



188



30



218

   Interest expense


(29)



(10)



(39)



(65)



(20)



(85)

   Other income (expense), net


45



(19)



26



230



(25)



205

(Loss) income before income tax


(2,565)



(1,112)



(3,677)



(58)



2,429



2,371

   Current


131



—



131



(71)



—



(71)

   Deferred


—



—



—



—



—



—

Income tax benefit (expense)


131



—



131



(71)



—



(71)

Net (loss) income

$

(2,434)


$

(1,112)


$

(3,546)


$

(129)


$

2,429


$

2,300



















EBITDA

$

(1,463)


$

(874)


$

(2,337)


$

2,286


$

2,947


$

5,233

 

Cision View original content:https://www.prnewswire.com/news-releases/dawson-geophysical-reports-second-quarter-2025-results-302528204.html

SOURCE Dawson Geophysical Company