Dnow Inc. Posts $959M Q4 Revenue, $0.95 Loss Drives 19% Sell-Off
Dnow Inc. reported fourth-quarter 2025 revenue of $959 million and a GAAP loss of $0.95 per share, missing analyst forecasts. Operating margin declined to -17.7% from +5.1% a year earlier, triggering a 19% share price plunge following its all-stock acquisition of MRC Global.
1. Q4 2025 Results
Dnow Inc. reported fourth-quarter 2025 revenue of $959 million, falling short of analyst forecasts, and recorded a GAAP loss of $0.95 per share versus the $0.15 per share profit analysts expected.
2. Margin Contraction
The quarter’s operating margin collapsed to negative 17.7%, a steep reversal from positive 5.1% in the same period of 2024, reflecting higher integration costs and lower pricing power.
3. MRC Global Acquisition Impact
The recent all-stock acquisition of MRC Global, which exchanged 0.9489 Dnow shares for each MRC share, aims to generate $70 million in annual cost savings within three years but has pressured near-term earnings.
4. Share Price Reaction
Following the earnings release, shares plunged 19.1% and now trade 24.1% below their 52-week high, signaling investor concern over the company’s profitability and integration execution.