DAWSON GEOPHYSICAL REPORTS FIRST QUARTER 2026 RESULTS
Rhea-AI Summary
Dawson Geophysical (NASDAQ:DWSN) reported strong first quarter 2026 results, driven by full deployment of new single node channels and high crew utilization.
Revenue was $36.7 million, up 128% year-over-year, with fee revenue of $32.5 million. Net income reached $7.7 million ($0.25 per share), and Adjusted EBITDA was $10.9 million, up 364%.
Gross margin1 improved to 40% from 28%. Cash was $1.4 million, working capital improved to $0.4 million, and the $4.5 million credit facility was undrawn. A $3 million 2026 capital budget includes the final $0.9 million payment for node purchases.
AI-generated analysis. Not financial advice.
Positive
- Total revenue $36.7 million, up 128% year-over-year
- Fee revenue $32.5 million, up 113% year-over-year
- Adjusted EBITDA $10.9 million, up 364% year-over-year
- Gross margin improved to 40% from 28%
- Net income $7.7 million, $0.25 per share
- Working capital improved from $5 million deficit to $0.4 million
Negative
- Cash balance remains modest at $1.4 million
- Working capital, while improved, stands at only $0.4 million
News Market Reaction – DWSN
On the day this news was published, DWSN gained 1.30%, reflecting a mild positive market reaction. Argus tracked a peak move of +37.6% during that session. Our momentum scanner triggered 23 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $2M to the company's valuation, bringing the market cap to $152.12M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Peers showed mixed action: RCON -8%, SND -6.11%, LSE -2.82% while DTI +4.08% and NCSM +2.69%. With DWSN down 2.29% and only one momentum peer (NINE) modestly up, the move appears stock-specific rather than a coordinated sector rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 12 | Q3 2025 earnings | Positive | -2.4% | Strong YoY fee revenue growth and margin swing to positive, loss narrowed sharply. |
| Aug 12 | Q2 2025 earnings | Positive | +0.0% | Fee revenue and gross margin improved with large single node investment and stronger cash. |
| May 13 | Q1 2025 earnings | Negative | -3.1% | Revenue and margin declined YoY despite remaining profitable and generating EBITDA. |
| Nov 12 | Q3 2024 earnings | Negative | -18.5% | Revenues fell sharply and losses remained large despite future ramp expectations. |
| Aug 12 | Q2 2024 earnings | Neutral | -12.6% | Revenue declined but losses narrowed and YTD swung to net income with cost cuts. |
Earnings releases have produced an average next-day move of -7.34%, with several instances of shares trading lower despite operational or margin improvements.
Over the last five earnings cycles from Aug 2024 to Nov 2025, Dawson progressed from steep revenue declines and losses toward improving gross margins and narrowing or reversing losses. Investments in single-node channels and rising fee revenues gradually improved EBITDA and cash flow. Yet, share reactions were often negative or muted, even when margins or utilization improved. Today’s Q1 2026 report continues the theme of operational gains and profitability following these earlier capital investments and utilization ramp-ups.
Historical Comparison
Past 5 earnings releases saw an average move of -7.34%, often negative even on operational gains. Today’s -2.29% reaction to a clearly stronger, profitable quarter fits the pattern but is less severe than prior selloffs.
Earnings releases trace a shift from revenue declines and sizable losses in 2024 toward improving margins, EBITDA, and eventual profitability in late 2025, supported by heavy investment in single-node channel capacity and rising crew utilization.
Market Pulse Summary
This announcement highlights a sharp operational inflection: Q1 2026 fee revenue reached $32.5M, net income was $7.7M or $0.25 per share, and Adjusted EBITDA rose to $10.9M. Gross margin improved to 40%, while working capital swung to a $0.4M surplus and the credit facility remained undrawn with a $4.5M borrowing base. Investors may watch future crew utilization, non-traditional seismic demand, liquidity trends, and ongoing capital spending against these improved results.
Key Terms
adjusted ebitda financial
non-gaap financial
carbon capture utilization and storage ("ccus") technical
revolving credit facility financial
seismic exploration technical
AI-generated analysis. Not financial advice.
First quarter 2026 Highlights
- Recognized fee revenue of
$32.5 million 113% increase over the first quarter of 2025 - Net income of
$7.7 million $0.25 - Generated Adjusted EBITDA of
$10.9 million 364% increase over the first quarter of 2025
Adjusted EBITDA is a non-GAAP measure. See "Supplemental Non-GAAP Financial Measures" below for our definition and reconciliation of Adjusted EBITDA.
Management Comment
Tony Clark, Dawson's President and CEO, commented, "We received our final delivery of the single node channels at the beginning of the year, and all of the new equipment purchased was fully utilized throughout the first quarter in our operations in
First Quarter Results
For the first quarter ended March 31, 2026, the Company reported revenues of
We generated net income of
1 Defined as fee revenues less fee operating expenses, divided by fee revenues |
Operations Update
The Company had one large channel crew and three smaller channel crews operating in the first quarter in
Capital Budget and Liquidity
The Company's Board of Directors approved a capital budget of
As of March 31, 2026, our cash position was
About Dawson
Dawson Geophysical Company is a leading provider of North American onshore seismic data acquisition services with operations throughout the continental
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 Adjusted EBITDA, a non-GAAP financial measure as defined by Regulation G promulgated by the
- 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 Adjusted EBITDA is not defined under GAAP, and Adjusted EBITDA is not a measure of operating income or operating performance presented in accordance with GAAP. When assessing the Company's operating performance, investors and others should not consider this data in isolation or as a substitute for net income, cash flow from operating activities or other cash flow data calculated in accordance with GAAP. In addition, the Company's Adjusted EBITDA may not be comparable to Adjusted EBITDA or similarly titled measures utilized by other companies since other companies may not calculate Adjusted EBITDA in the same manner as the Company. Further, the results presented by Adjusted EBITDA cannot be achieved without incurring the costs that the measure excludes: interest, taxes, and depreciation and amortization. A reconciliation of the Company's Adjusted EBITDA to its net loss is presented in the table following the text of this press release.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company cautions that all statements other than statements of historical fact contained in this press release are forward-looking statements, including without limitation statements regarding our forecasts, estimates or other expectations regarding future events, operations or financial results, and regarding technological advancements and our financial position, business strategy, and plans and objectives of our management including statements under "Management Comment" for future operations; statements regarding our expectations regarding liquidity; statements regarding the anticipated benefits of our purchased single node channels; statements regarding our ability to identify areas of improvement in the deployment of the new single node channels and the expected operational efficiencies resulting therefrom; statements regarding our financial performance and our ability to capitalize on current market opportunities; and statements regarding any potential transaction(s) with our controlling stockholder and any of its affiliates. In some cases, you can identify forward-looking statements by terms such as "aim," "may," "will," "should," "expects," "plans," "anticipates," "continues," "could," "intends," "goals," "target," "projects," "contemplates," "believes," "estimates," "predicts" or "potential" or the negative of these terms or other similar expressions. Such forward-looking statements are based on the beliefs of our management, as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors. These factors include, but are not limited to, risks relating to the Company's ability to execute its business strategies and plans for growth; the efficacy of the purchased single node channels; 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; risks relating to any potential transaction(s) with our controlling stockholder and any of its affiliates, the impact on our stock price of such potential transaction(s), our ability to consummate any such transaction, and our ability to achieve the anticipated benefits of any such potential transaction(s); our status as a controlled public company, which exempts us from certain corporate governance requirements; the limited market for our common stock; 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 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; risks that the Company's cash reserves, liquidity or capital resources may be insufficient; risks associated with the identification of suitable acquisition candidates and the successful, efficient execution of acquisition transactions, the integration of any such acquisition candidates, the value of those acquisitions to our customers and shareholders, and the financing of such acquisitions; risks related to our indebtedness and compliance with covenants contained in our revolving credit note; the Company's ability to execute its business strategies and plans for growth; the failure to operationalize the new single node channels in a timely manner or at all; the risk that expected improvements in deployment of the new single node channels may not result in anticipated operational efficiencies or improved operating and financial performance; disruptions in the global economy, including the Russian-Ukrainian conflict, the
DAWSON GEOPHYSICAL COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (unaudited and amounts in thousands, except share and per share data)
| |||||||
Three Months Ended March 31, | |||||||
2026 | 2025 | ||||||
Operating revenues: | |||||||
Fee Revenue | $ | 32,508 | $ | 15,259 | |||
Reimbursable Revenue | 4,191 | 819 | |||||
36,699 | 16,078 | ||||||
Operating costs: | |||||||
Operating expenses | |||||||
Fee operating expenses | 19,430 | 10,960 | |||||
Reimbursable operating expenses | 4,191 | 819 | |||||
Total operating expenses | 23,621 | 11,779 | |||||
General and administrative | 2,941 | 1,994 | |||||
Depreciation and amortization | 1,997 | 1,271 | |||||
28,559 | 15,044 | ||||||
Income from operations | 8,140 | 1,034 | |||||
Other income (expense): | |||||||
Interest income | 9 | 4 | |||||
Interest expense | (501) | (76) | |||||
Other income, net | 23 | 33 | |||||
Income before income tax | 7,671 | 995 | |||||
Income tax expense | (10) | (3) | |||||
Net income | 7,661 | 992 | |||||
Other comprehensive income (loss): | |||||||
Net unrealized loss on foreign exchange rate translation | (186) | (30) | |||||
Comprehensive income | $ | 7,475 | $ | 962 | |||
Basic income per share of common stock | $ | 0.25 | $ | 0.03 | |||
Diluted income per share of common stock | $ | 0.25 | $ | 0.03 | |||
Weighted average equivalent common shares outstanding | 31,052,840 | 30,983,445 | |||||
Weighted average equivalent common shares outstanding - assuming dilution | 31,107,820 | 31,035,189 | |||||
DAWSON GEOPHYSICAL COMPANY CONSOLIDATED BALANCE SHEETS (unaudited and amounts in thousands, except share data)
| |||||||
March 31, | December 31, | ||||||
2026 | 2025 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 1,374 | $ | 4,907 | |||
Short-term investments | 370 | 370 | |||||
Accounts receivable, net | 19,440 | 9,389 | |||||
Prepaid expenses and other current assets | 6,667 | 7,169 | |||||
Total current assets | 27,851 | 21,835 | |||||
Property and equipment | 253,620 | 254,017 | |||||
Less accumulated depreciation | (220,373) | (223,242) | |||||
Property and equipment, net | 33,247 | 30,775 | |||||
Operating lease right-of-use assets | 2,939 | 3,036 | |||||
Intangibles, net | 359 | 364 | |||||
Total assets | $ | 64,396 | $ | 56,010 | |||
Liabilities and Stockholders' Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 9,127 | $ | 9,578 | |||
Accrued liabilities: | |||||||
Payroll costs and other taxes | 2,211 | 1,474 | |||||
Other | 1,361 | 994 | |||||
Deferred revenue | 6,370 | 7,477 | |||||
Current maturities of notes payable and finance leases | 7,319 | 6,232 | |||||
Current maturities of operating lease liabilities | 1,087 | 1,082 | |||||
Total current liabilities | 27,475 | 26,837 | |||||
Long-term liabilities: | |||||||
Notes payable and finance leases, net of current maturities | 11,726 | 11,324 | |||||
Operating lease liabilities, net of current maturities | 1,848 | 2,024 | |||||
Deferred tax liabilities, net | 17 | 17 | |||||
Total liabilities | 41,066 | 40,202 | |||||
Commitments and contingencies | |||||||
Stockholders' equity: | |||||||
Preferred stock-par value | — | — | |||||
Common stock-par value | |||||||
31,052,840 shares issued and outstanding at March 31, 2026 | |||||||
and December 31, 2025 | 311 | 311 | |||||
Additional paid-in capital | 157,201 | 157,154 | |||||
Accumulated deficit | (131,899) | (139,560) | |||||
Accumulated other comprehensive loss, net | (2,283) | (2,097) | |||||
Total stockholders' equity | 23,330 | 15,808 | |||||
Total liabilities and stockholders' equity | $ | 64,396 | $ | 56,010 | |||
DAWSON GEOPHYSICAL COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited and amounts in thousands) | |||||||
Three Months Ended March 31, | |||||||
2026 | 2025 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 7,661 | $ | 992 | |||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||
Depreciation and amortization | 1,997 | 1,271 | |||||
Non-cash operating lease cost | 191 | 250 | |||||
Non-cash compensation | 47 | 44 | |||||
Bad debt expense | — | 177 | |||||
Gain on disposal of assets | (93) | (185) | |||||
Other | (13) | 11 | |||||
Change in operating assets and liabilities: | |||||||
Increase in accounts receivable | (10,207) | (1,259) | |||||
Decrease in prepaid expenses and other assets | 640 | 161 | |||||
(Decrease) increase in accounts payable | (437) | 516 | |||||
Increase (decrease) in accrued liabilities | 1,121 | (107) | |||||
Decrease in operating lease liabilities | (265) | (272) | |||||
(Decrease) increase in deferred revenue | (1,107) | 153 | |||||
Net cash (used in) provided by operating activities | (465) | 1,752 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures, net of non-cash capital expenditures summarized below | (1,433) | — | |||||
Proceeds from disposal of assets | 93 | 185 | |||||
Net cash (used in) provided by investing activities | (1,340) | 185 | |||||
Cash flows from financing activities: | |||||||
Principal payments on notes payable | (1,413) | (440) | |||||
Principal payments on finance leases | (274) | (191) | |||||
Borrowings on line of credit (related party) | 4,250 | — | |||||
Repayments on line of credit (related party) | (4,250) | — | |||||
Net cash used in financing activities | (1,687) | (631) | |||||
Effect of exchange rate changes on cash and cash equivalents | (41) | (26) | |||||
Net (decrease) increase in cash and cash equivalents | (3,533) | 1,280 | |||||
Cash and cash equivalents at beginning of period | 4,907 | 1,385 | |||||
Cash and cash equivalents at end of period | $ | 1,374 | $ | 2,665 | |||
Supplemental cash flow information: | |||||||
Cash paid for interest | $ | 383 | $ | 65 | |||
Non-cash operating, investing and financing activities: | |||||||
Finance leases incurred | $ | 361 | $ | — | |||
Increase in right-of-use assets and operating lease liabilities | $ | 106 | $ | — | |||
Financed equipment purchases | $ | 2,698 | $ | — | |||
Financed insurance premiums | $ | 128 | $ | 1,746 | |||
Reconciliation of EBITDA to Net (Loss) Income (amounts in thousands) | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2026 US | 2026 CA | 2026 Consol. | 2025 US | 2025 CA | 2025 Consol. | ||||||||||||
Net income (loss) | $ | 2,276 | $ | 5,385 | $ | 7,661 | $ | (4,546) | $ | 5,538 | $ | 992 | |||||
Depreciation and amortization | 1,766 | 231 | 1,997 | 1,077 | 194 | 1,271 | |||||||||||
Interest expense (income), net | 478 | 14 | 492 | 63 | 9 | 72 | |||||||||||
Income tax expense | 10 | — | 10 | 3 | — | 3 | |||||||||||
EBITDA | 4,530 | 5,630 | 10,160 | (3,403) | 5,741 | 2,338 | |||||||||||
Strategic transaction costs | 695 | — | 695 | — | — | — | |||||||||||
Adjusted EBITDA | $ | 5,225 | $ | 5,630 | $ | 10,855 | $ | (3,403) | $ | 5,741 | $ | 2,338 | |||||
Reconciliation of EBITDA to Net Cash Provided By (Used in) Operating Activities (amounts in thousands) | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2026 US | 2026 CA | 2026 Consol. | 2025 US | 2025 CA | 2025 Consol. | ||||||||||||
Net cash provided by (used in) operating activities | $ | 1,899 | $ | (2,364) | $ | (465) | $ | 1,544 | $ | 208 | $ | 1,752 | |||||
Changes in working capital and other items | 2,809 | 8,054 | 10,863 | (4,530) | 5,587 | 1,057 | |||||||||||
Non-cash adjustments to net income (loss) | (178) | (60) | (238) | (417) | (54) | (471) | |||||||||||
EBITDA | 4,530 | 5,630 | 10,160 | (3,403) | 5,741 | 2,338 | |||||||||||
Strategic transaction costs | 695 | — | 695 | — | — | — | |||||||||||
Adjusted EBITDA | $ | 5,225 | $ | 5,630 | $ | 10,855 | $ | (3,403) | $ | 5,741 | $ | 2,338 | |||||
Statements of Operations by operating segment for the three months ended March 31, 2026 and 2025.
| |||||||||
Three Months Ended March 31, 2026 | |||||||||
Canada Operations | Consolidated | ||||||||
Operating revenues | |||||||||
Fee revenue | $ | 20,865 | $ | 11,643 | $ | 32,508 | |||
Reimbursable revenue | 4,008 | 183 | 4,191 | ||||||
24,873 | 11,826 | 36,699 | |||||||
Operating costs: | |||||||||
Fee operating expenses | 13,882 | 5,548 | 19,430 | ||||||
Reimbursable operating expenses | 4,008 | 183 | 4,191 | ||||||
Operating expenses | 17,890 | 5,731 | 23,621 | ||||||
General and administrative | 2,476 | 465 | 2,941 | ||||||
Depreciation and amortization | 1,766 | 231 | 1,997 | ||||||
22,132 | 6,427 | 28,559 | |||||||
Income from operations | 2,741 | 5,399 | 8,140 | ||||||
Other income (expense): | |||||||||
Interest income | 6 | 3 | 9 | ||||||
Interest expense | (484) | (17) | (501) | ||||||
Other income (expense), net | 23 | — | 23 | ||||||
Income before income tax | 2,286 | 5,385 | 7,671 | ||||||
Income tax expense | (10) | — | (10) | ||||||
Net income | $ | 2,276 | $ | 5,385 | $ | 7,661 | |||
Other Comprehensive loss: | |||||||||
Net unrealized loss on foreign exchange rate translation | - | (186) | (186) | ||||||
Comprehensive income | $ | 2,276 | $ | 5,199 | $ | 7,475 | |||
Adjusted EBITDA | $ | 5,225 | $ | 5,630 | $ | 10,855 | |||
Three Months Ended March 31, 2025 | |||||||||
Canada Operations | Consolidated | ||||||||
Operating revenues | |||||||||
Fee revenue | $ | 2,726 | $ | 12,533 | $ | 15,259 | |||
Reimbursable revenue | 570 | 249 | 819 | ||||||
3,296 | 12,782 | 16,078 | |||||||
Operating costs: | |||||||||
Fee operating expenses | 4,615 | 6,345 | 10,960 | ||||||
Reimbursable operating expenses | 570 | 249 | 819 | ||||||
Operating expenses | 5,185 | 6,594 | 11,779 | ||||||
General and administrative | 1,555 | 439 | 1,994 | ||||||
Depreciation and amortization | 1,077 | 194 | 1,271 | ||||||
7,817 | 7,227 | 15,044 | |||||||
(Loss) income from operations | (4,521) | 5,555 | 1,034 | ||||||
Other income (expense): | |||||||||
Interest income | — | 4 | 4 | ||||||
Interest expense | (63) | (13) | (76) | ||||||
Other income (expense), net | 41 | (8) | 33 | ||||||
(Loss) income before income tax | (4,543) | 5,538 | 995 | ||||||
Income tax expense | (3) | — | (3) | ||||||
Net (loss) income | $ | (4,546) | $ | 5,538 | $ | 992 | |||
Other Comprehensive loss: | |||||||||
Net unrealized loss on foreign exchange rate translation | — | (30) | (30) | ||||||
Comprehensive (loss) income | $ | (4,546) | $ | 5,508 | $ | 962 | |||
Adjusted EBITDA | $ | (3,403) | $ | 5,741 | $ | 2,338 | |||
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SOURCE Dawson Geophysical Company