Dawson Geophysical Company

and welcome to the Dawson Geophysical Fourth Quarter 2025 Earnings Conference Call. Statements made by management during this call with respect to forecasts, estimates, or other expectations regarding future events or which provide any information other than historical facts may constitute forward-looking statements within the meaning of the Private Security Certification Reform Act of 1995. These forward-looking statements are based on management's current expectations and include known and unknown risks uncertainties, and other factors, many of which the company is unable to predict or control, that may cause the company's actual future results or performance to materially differ from any future results or performance expressed or implied by those statements. Wherever possible, we will try to identify those forward-looking statements by using words such as believe, expect, anticipate, pursue, forecast, and similar expressions. This risk and uncertainties include the risk factors disclosed by the company from time to time, and its filings with the SEC, including in the company's annual report on Form 10K, expected to be filed with the SEC on March 31, 2026. Furthermore, as we start this call, please also refer to the statement regarding forward-looking statements incorporated in the company's press release issued yesterday, and please note that the contents of the company's conference call this morning is covered by those statements. During this conference call, management will make references to adjusted EBITDA and free cash flow, which are non-GAAP financial measures. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures can be found in the company's current earnings release, a copy of which is located on the company's website, www.dawson3d.com. The call is scheduled for 30 minutes and the company will not provide any guidance. Shareholders who might have questions are encouraged to contact the company directly. I would now like to send a call over to Tony Clark, President and CEO of Dawson Geophysical Company. Please go ahead, sir.

Thank you, Olivia. Good morning and welcome to Dawson Geophysical's fourth quarter 2025 earnings and operations conference call. As Olivia said, my name is Tony Clark, President and CEO of the company. Joining me on the call is Ian Shaw. Chief Financial Officer. Before I start the call, I have a few items to cover. If you would like to listen to a replay of today's call, it will be available via webcast by going to the investor relations section of the company's website at www.dawson3d.com. Information reported on this call speaks only of today, Tuesday, March 31st, 2026, and therefore you are advised that time-sensitive information may no longer be accurate as the time of any replay listening. Turning to a review of our current operations outlook in fourth quarter, year-end December 31st, 2025 results. I am proud of the continued progress the Dawson team made during 2025, generating $14 million in cash from our operations and reinvesting the portion of that into new single-node channels to increase our capacity and strengthen our foundation for possibility in our future. We purchased 24.2 million of new equipment, primarily new single and no channels, and received our first delivery in August 2025. Excuse me. Due to demand from our customers, we accelerated our delivery timeline throughout the fourth quarter and received the final delivery in January 2026. This equipment has been highly utilized in our U.S. and Canadian operations. These single-node channels weigh approximately one pound compared to our legacy equipment, which weighs approximately 10 pounds. We believe that this lighter-weight equipment will provide us with improved efficiency in our operations. Currently, we have over 180,000 channels of legacy and new equipment available to service the industry, and we are increasing our efforts to secure passive-sizing monitoring with positive activity. We believe that we have a significant competitive advantage for larger size of jobs due to our high channel count and our quality of vibrator energy source units. While we continue to grow our top line and invest in our future, we are continuing to monitor our cost structure and reduce our general and administrative expenses 9% in 2025 compared to 2024. We believe that the Dawson team has shown continuous improvement Over the past two years, which is evidenced by the continued improvement in our profitability metrics, we expect that improvement to continue into 2026. I will now turn the call over to Ian Shaw, who will review the financial results. Then I will return with some final remarks on our operations and outlook into the first quarter of 2026. Ian?

Thank you, Tony, and good morning. For the fourth quarter into December 31st, 2025, the company reported fee revenues of $22.9 million, an increase of 67% compared to $13.8 million for the fourth quarter of 24. The company reported net income of $0.6 million or $0.02 per common share compared to a net loss of $0.8 million or $0.03 per common share for the quarter into December 31st, 24. The company reported adjusted EBITDA of 3.3 million compared to 0.9 million quarter over quarter. Now, we'll cover some results for the year ended December 2025. The company reported fee revenues of 16.9 million, an increase of 16% compared to 53.5 million in 2024. In 2025, the company reported a net loss of $1.9 million or $0.06 per common share compared to a net loss of $4.7 million or $0.13 per common share in 2024. The company reported adjusted EBITDA of $4.7 million for the year in 2025 compared to adjusted EBITDA of $2 million for the year in 2024, which was 139% increase year-over-year. Regarding our capital budget and liquidity, in 2025, we generated $14 million in operating cash flow and increased our cash balance to $4.9 million as of the end of the year, compared to $1.4 million at the end of 2024. In October 25, we entered into a revolving credit facility with a maximum lender commitment of $5 million and had a borrowing base of $4.9 million and no balance outstanding on our revolver as of December 31, 2025. The company's board of directors approved a capital budget of $3 million for 2026, which included the final payment under the equipment single-node channel purchase of $0.9 million, which was made in January of 2026. And with that, I'll turn the call back to Tony for some comments on our operations and outlook.