RPC's Q4 Revenue Drops 5% to $425.8M as Net Loss Hits $3.1M
RPC's Q4 revenue fell 5% sequentially to $425.8M, with Technical Services down 4% and Support Services down 18%, while net loss was $3.1M (loss of $0.02/share) versus net income of $13M in Q3. Adjusted EBITDA declined 19% to $55.1M (12.9% margin) after expensing $4.6M in wireline cable costs previously capitalized.
1. Earnings Per Share Falls Short of Estimates
RPC, Inc. reported adjusted earnings per share of $0.04 for the fourth quarter of 2025, falling short of the consensus estimate of $0.07 by 42.9%. This result also represented a decline from the $0.06 earned in the same period a year earlier. The company’s net loss amounted to $3.1 million, or $0.02 per share, compared with net income of $13.0 million, or $0.06 per share, in the third quarter of 2025. Investors should note the sharp swing to a net loss, driven largely by increased operating costs and the decision to expense previously capitalized wireline cable purchases.
2. Revenue Growth Driven by Acquisition Benefits
Total revenues rose 27% year-over-year to $425.8 million, topping the consensus forecast of $419.3 million. Revenue growth was fueled by the April 1, 2025 acquisition of Pintail Completions, which contributed to full-year revenues of $1.63 billion, up 15% over 2024. Within Technical Services, revenues declined sequentially by 4% to $405.2 million but remained 29% higher than the prior year period, while Support Services revenues fell 18% sequentially to $20.5 million but were roughly flat year-over-year. The acquisition’s integration helped offset seasonal holiday slowdowns and regional activity variations.
3. Margin Compression from Higher Costs
Adjusted EBITDA totaled $55.1 million, down 19% from the $67.8 million reported in the third quarter, with the adjusted EBITDA margin contracting to 12.9% from 15.2%. The change was primarily attributable to $4.6 million in wireline cable expenses incurred during the quarter and an additional $7.3 million of acquisition-related employment costs tied to the Pintail integration. Selling, general and administrative expenses increased to $47.7 million from $44.6 million in the prior quarter, reflecting higher employment incentives and benefits, further compressing operating margins.
4. Strong Cash Position and Disciplined Capital Allocation
RPC ended the quarter with $210.0 million in cash and cash equivalents and zero borrowings on its $100 million revolving credit facility. Operating activities generated $201.3 million of cash year-to-date, supporting free cash flow of $52.9 million after expensing wireline cables. The company returned $38.0 million to shareholders through $35.1 million in dividends and $2.9 million in share repurchases tied to tax withholdings. A quarterly dividend of $0.04 per share is scheduled for payment on March 10, 2026, underscoring management’s commitment to disciplined capital deployment.