DWSN

• Tony Clark mentioned the Dawson team generated $14 million in cash from operations in 2025 and reinvested in new single-node channels. Purchased $24.2 million of new equipment, with final delivery in January 2026. Lighter-weight equipment (1 pound vs 10 pounds legacy) provides improved efficiency. Over 180,000 channels available. Reduced general and administrative expenses 9% in 2025.
• Ian Shaw reviewed financial results for Q4 and year-end 2025.
• Tony Clark noted activity levels increased in Q4 with crews operating in US and Canada, high crew utilization in Q4 led to healthy margins, and anticipation of successful Canadian operations in Q1 2026. Expanded customer base to include unconventional exploration like carbon capture, geothermal, etc., and seeing increased bid activity for these and oil & gas exploration.

The company will not provide any guidance.

For the fourth quarter ended December 31, 2025, fee revenues were $22.9 million, an increase of 67% compared to $13.8 million in the fourth quarter of 2024. Net income was $0.6 million or $0.02 per common share compared to a net loss of $0.8 million or $0.03 per common share in the prior year's fourth quarter. Adjusted EBITDA was $3.3 million compared to $0.9 million quarter over quarter. For the year ended December 2025, fee revenues were $16.9 million, an increase of 16% compared to 2024. Net loss was $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. Adjusted EBITDA was $4.7 million for 2025 compared to $2 million in 2024, a 139% increase year-over-year.

Forward-looking statements are based on current expectations and include known and unknown risks, uncertainties, and other factors that may cause actual results to differ. Risk factors disclosed in SEC filings, including the annual report on Form 10K expected to be filed on March 31, 2026.

Q: How would you characterize the quality of service technology today versus five to ten years ago and key developments?

A: The big factor is moving to single nodes, going from 10-pound nodes to 1-pound nodes, which helps in acquisition characterizations, reduces field footprint, HSE impact, and upgraded from 10-hertz phone to 5-hertz phone.

Q: Have you seen early signs of changes in demand for services due to Middle East conflict?

A: Saw uptick in bid opportunities and utilization in last three quarters, but not sure of major uptick from conflict; anticipate activity level would remain consistent if conflict resolved soon.