v3.26.1
Note 3 - Segment and Geographic Information
6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

Note 3.  Segment and Geographic Information 

 

We sell complementary products and services largely to E&P customers in the oil and gas industry, through one reportable segment, as more fully described in our Annual Report, “Note 4. Segment and Geographic Information.” We manage our activities on a consolidated basis applying qualitative factors including the nature of the products and services, the nature and commonality of production processes, a shared customer base primarily in North America, the scope of geographic operations and a common industry and regulatory environment. Our chief operating decision maker (“CODM”) is the Chief Executive Officer.

 

We evaluate our performance on a consolidated basis by reviewing key income statement items such as revenue, gross margin, and net income, as well as other specific balance sheet and cash flow items; comparing certain key financial figures to financial guidance; and evaluating our share price performance and estimated trading multiple relative to selected peers.

 

Our CODM utilizes the GAAP measures of net income and cash flow from operations as primary measures of profitability and cash flow, respectively, as well as secondary non-GAAP measures of Adjusted EBITDA and free cash flow (cash flow from operations less capital expenditures). The CODM assesses performance using these measures, and he decides how to allocate resources (including capital expenditures, financial resources and employees) through an integrated annual budget and more frequent forecasting processes, with the annual budget subject to approval by our Board of Directors (“Board”). The CODM allocates resources in a manner that he believes will maximize value for the consolidated corporate entity and its stockholders. The CODM considers variances from actual to budget, our most recent estimate and the prior year on a monthly basis when making decisions about the allocation of operating and capital resources. The CODM also regularly reviews consolidated cash flow, as well as the non-GAAP measure of free cash flow. The CODM assesses business performance consistent with the presentation on our consolidated financial statements supplemented with a review of certain significant selling, general and administrative (“SG&A”) expense categories. Such expenses are reviewed on a with and without basis for business combinations, until fully integrated into actual results for all periods presented.

 

The following table summarizes significant SG&A expenses that are reviewed by the CODM but are not separately presented on our condensed consolidated statements of operations (in thousands):

 

  

Three Months Ended

  

Six Months Ended

 
  

June 30,

  

June 30,

 
  

2026

  

2025

  

2026

  

2025

 

Payroll and employee benefits

 $8,897  $8,231  $18,529  $18,183 

Share-based compensation

  1,324   1,392   2,551   2,837 

Professional services (1)

  4,761   1,322   6,926   3,524 

Insurance

  631   523   1,213   1,014 

Software and hardware

  613   578   1,200   1,153 

Other

  1,732   1,580   3,267   3,110 

Total SG&A

 $17,958  $13,626  $33,686  $29,821 

 


(1)

Includes $2.7 million and $2.8 million of professional services related to strategic acquisition activities, including the Weatherford transaction, for the three and six months ended June 30, 2026, respectively. See “Note 1. Basis of Presentation, Weatherford Transaction” for additional information.

 

The following table summarizes revenue by geographic area attributed based on the current billing address of the customer (in thousands):

 

  

Three Months Ended

  

Six Months Ended

 
  

June 30,

  

June 30,

 
  

2026

  

2025

  

2026

  

2025

 

United States

                

Product sales

 $15,220  $11,930  $29,429  $18,797 

Services

  5,244   1,682   10,175   4,187 

Total United States

  20,464   13,612   39,604   22,984 

Canada

                

Product sales

  9,737   13,021   25,901   39,864 

Services

  3,677   4,948   10,724   15,823 

Total Canada

  13,414   17,969   36,625   55,687 

Other Countries

                

Product sales

  2,721   2,825   4,931   4,181 

Services

  1,765   2,048   2,841   3,607 

Total other countries

  4,486   4,873   7,772   7,788 

Total

                

Product sales

  27,678   27,776   60,261   62,842 

Services

  10,686   8,678   23,740   23,617 

Total revenues

 $38,364  $36,454  $84,001  $86,459 

 

The following table summarizes long-lived assets (defined as property and equipment, net and operating lease assets, net) by geographic area (in thousands):

 

  

June 30,

  

December 31,

 
  

2026

  

2025

 

United States

 $12,533  $11,789 

Canada

  8,570   9,448 

Other Countries

  3,322   3,429 

Total

 $24,425  $24,666