Select Water Solutions, Inc.

Previous wording

This discussion relates to the three and six months ended June 30, 2025 (the “Current Quarter” and the “Current Period”, respectively) and the three and six months ended June 30, 2024 (the “Prior Quarter” and the “Prior Period”, respectively).

Current wording

This discussion relates to the three and nine months ended September 30, 2025 (the “Current Quarter” and the “Current Period”, respectively) and the three and nine months ended September 30, 2024 (the “Prior Quarter” and the “Prior Period”, respectively).

Previous wording

In addition, we have wound down our fluids hauling operations in the Haynesville region and intend to divest the remaining lower-margin fluids hauling operations in the Midcon region. We will continue to operate our higher-margin fluids hauling businesses in the Permian, Rockies and Eagle Ford regions, which also have more integration with our disposal infrastructure.

Current wording

In addition, we have wound down our fluids hauling operations in the Haynesville region and divested the remaining lower-margin fluids hauling operations in the Midcon region. We will continue to operate our higher margin fluids hauling businesses in the Permian, Rockies and Eagle Ford regions, which also have more integration with our disposal infrastructure.

Previous wording

In the first six months of 2025, Select executed four asset acquisitions totaling $14.6 million, enhancing current and future water infrastructure capabilities. These asset acquisitions collectively position Select for future growth and operational efficiency in the Water Infrastructure segment. We also acquired certain wastewater treatment facilities for the accommodations and rentals business line in the Permian and Eagle Ford regions for $1.7 million. In parallel, Select has continued to win new long-term contracts in its infrastructure segment, further strengthening its recurring revenue base and supporting sustained growth. Additionally, several Water Infrastructure projects currently under development are anticipated to commence operations in the second half of 2025. Further, we made a $72.1 million equity method investment in an entity to consolidate one of the largest water holdings and storage portfolios in Colorado to serve agricultural, municipal, and industrial stakeholders in the region (Refer to “Note 1—Business and Basis of Presentation” for further discussion on AV Farms). Additionally, on January 24, 2025, we entered into a $550.0 million sustainability-linked senior secured credit facility and extinguished our prior debt (Refer to “Note 8—Debt” for further discussion of the Sustainability-Linked Credit Facility).

Current wording

In parallel, Select has continued to win new long-term contracts in its infrastructure segment, further strengthening its recurring revenue base and supporting sustained growth. Additionally, several Water Infrastructure projects currently under development are anticipated to commence operations in the fourth quarter of 2025. Further, we made a $72.1 million equity method investment in an entity to consolidate one of the largest water holdings and storage portfolios in Colorado to serve agricultural, municipal, and industrial stakeholders in the region (Refer to “Note 2—Significant Accounting Policies” for further discussion on AV Farms). Additionally, on January 24, 2025, we entered into a $550.0 million sustainability-linked senior secured credit facility and extinguished our prior debt (Refer to “Note 8—Debt” for further discussion of the Sustainability-Linked Credit Facility).

Previous wording

Select is prioritizing investments in Water Infrastructure projects, which often bring a more predictable and steady revenue stream through long-term contracts and production-related operations. These investments typically produce higher gross margins and also foster stronger partnerships with customers, as Select becomes an integral partnerin ensuring well productivity for ongoing customer production over the life of a well. Our focus is on integrated solutions that enhance contracted infrastructure projects with logistics services and chemical solutions, and expanding the value we provide to our customers. Our approach, historically and during the year ended December 31, 2024, has been to streamline operations and offer a more comprehensive and valuable overall package to customers that is built around optimizing the entire water lifecycle as such integrated solutions drive revenue growth and enhance overall value to clients.

Current wording

Select is prioritizing investments in Water Infrastructure projects, which often bring a more predictable and steady revenue stream through long-term contracts and production-related operations. These investments typically produce higher gross margins and also foster stronger partnerships with customers, as Select becomes an integral partnerin ensuring well productivity for ongoing customer production over the life of a well. Our focus is on integrated solutions that enhance contracted infrastructure projects with logistics services and chemical solutions, and expanding the value we provide to our customers. Our approach has been to streamline operations and offer a more comprehensive

Previous wording

The Russia-Ukraine conflict, and the resulting sanctions and concerns regarding global energy security, has contributed to, and conflicts in the Middle East may contribute to, increases and volatility in the prices for oil and natural gas. Such volatility, coupled with an increased cost of capital, due, in part to elevated rates of inflation and interest rates, may lead to a more difficult investing and planning environment for us and our customers. The ultimate geopolitical and macroeconomic consequences of these conflicts and associated sanctions and/or international responses cannot be predicted, and such events, or any further hostilities elsewhere, could severely impact the world economy and may adversely affect our financial condition. An end to these conflicts and an easing or elimination of the related sanctions and/or international response could result in a significant fall in commodity prices as hydrocarbons become more readily accessible in global markets, which could have an adverse effect on our customers, and therefore adversely affect our

Current wording

The Russia-Ukraine conflict, and the resulting sanctions and concerns regarding global energy security, have contributed to, and conflicts in the Middle East may contribute to, increases and volatility in the prices for oil and natural gas. Such volatility, coupled with an increased cost of capital, due, in part to elevated rates of inflation and interest rates, may lead to a more difficult investing and planning environment for us and our customers. The ultimate geopolitical and macroeconomic consequences of these conflicts and associated sanctions and/or international responses cannot be predicted, and such events, or any further hostilities elsewhere, could severely impact the world economy and may adversely affect our financial condition. An end to these conflicts and an easing or elimination of the related sanctions and/or international response could result in a significant fall in commodity prices as hydrocarbons become more readily accessible in global markets, which could have an adverse effect on our customers, and therefore, adversely affect our

Previous wording

In addition, since 2021, OPEC+ countries have instituted production cuts (as well as voluntary production cuts), which currently cut output by approximately 4.66 million barrels/day in the aggregate, comprised of a core production cut of 3.66 million barrels/day and voluntary production cuts of approximately 1.0 million barrels/day, which is set to be fully unwound by the end of September. Most recently, on July 28, 2025, OPEC+ reaffirmed the existing production cuts including the next scheduled winddown of 0.5 million barrels/day of voluntary production cuts in August. OPEC+ may, at its discretion, continue to decrease, or increase, production, which will continue to impact crude oil and natural gas price volatility. The actions of OPEC+ countries with respect to oil production levels and announcements of potential changes in such levels, including agreement on and compliance with production targets, may result in volatility in the industry in which we and our customers operate. The average price of West Texas Intermediate (“WTI”) crude oil decreased in the Current Quarter versus the Prior Quarter due to a combination of factors, including heightened trade tensions, weakening global demand, rising domestic production, the threat of a global recession and increased production from OPEC+ countries. During the Current Quarter, the average spot price of WTI crude oil was $64.57 versus an average price of $81.81 for the Prior Quarter. The average Henry Hub natural gas spot price during the Current Quarter was $3.19 versus an average of $2.07 for the Prior Quarter. Henry Hub natural gas price levels in the Current

Current wording

Since 2021, OPEC+ countries have instituted production cuts (as well as voluntary production cuts), which currently cut output by approximately 4.2 million barrels/day in the aggregate, comprised of a core production cut of 3.65 million barrels/day and voluntary production cuts of approximately 0.55 million barrels/day, which are being gradually unwound. Most recently, in September 2025, OPEC+ announced the beginning of the unwinding of the core production cuts, with 0.14 million barrels/day expected to be unwound in October 2025, followed by an additional 0.14 million barrels/day in November 2025. OPEC+ may, at its discretion, continue to decrease, or increase, production, which will continue to impact crude oil and natural gas price volatility. The actions of OPEC+ countries with respect to oil production levels and announcements of potential changes in such levels, including agreement on and compliance with production targets, may result in volatility in the industry in which we and our customers operate. The average price of West Texas Intermediate (“WTI”) crude oil decreased in the Current Quarter versus the Prior Quarter due to a combination of factors, including heightened trade tensions, weakening global demand, rising domestic production, the threat of a global recession and increased production from OPEC+ countries and the unwinding of OPEC+ production

Previous wording

Quarter have increased relative to the Prior Quarterdue to a variety of factors, including increased demand driven by severe weather events, infrastructure disruptions, lower than expected inventories, and the ongoing LNG export growth in the U.S., and have positively impacted activity levels in natural gas basins.

Current wording

cuts. During the Current Quarter, the average spot price of WTI crude oil was $65.78 versus an average price of $76.43 for the Prior Quarter. The average Henry Hub natural gas spot price during the Current Quarter was $3.03 versus an average of $2.11 for the Prior Quarter. Henry Hub natural gas price levels in the Current Quarter have increased relative to the Prior Quarterdue to a variety of factors, including increased demand driven by power consumption, severe weather events, infrastructure disruptions, lower than expected inventories, and the ongoing LNG export growth in the U.S., and have positively impacted activity levels in natural gas basins.

Previous wording

Separately, global macroeconomic developments, such as the development or change in international trade policies, including the imposition of tariffs, may adversely affect our ability to source raw materials and the demand for our services. While we have positioned ourselves to largely not be reliant on any sole supplier and believe we would beable to find alternative sources for our raw materials, any trading disruption (such as tariffs, product restrictions, etc.) in the trading relationships between the U.S. and other nations may adversely impact our business. For instance, on April 2, 2025, the United States government announced that a 10% base tariff will be applied to all imports to the United States effective April 5, 2025, subject to limited exceptions for Mexico and Canada, and that almost 60 countries will, in lieu of the 10% base tariff, be assigned higher reciprocal tariffs on imports that extend as high as 50%, effective April 9, 2025. Although most of the reciprocal tariffs were later suspended and replaced by a base tariff of 10% for a period of 90 days, it is uncertain if and to what extent the tariffs may be reimposed. For instance, despite the suspension of most reciprocal tariffs, the governments of the U.S. and China maintained substantial tariffs on one another, before eventually agreeing to temporarily roll back certain of the tariffs in May 2025. Tariffs and any additional changes in U.S. trade policy could result in one or more other jurisdictions adopting responsive trade policies. The adoption and expansion of trade restrictions, the occurrence of a trade war, or other governmental action related to tariffs or trade agreements or policies has the potential to adversely impact us and the global economy.

Current wording

Separately, global macroeconomic developments, such as the development or change in international trade policies, including the imposition of tariffs, may adversely affect our ability to source raw materials and the demand for our services. While we have positioned ourselves to largely not be reliant on any sole supplier and believe we would beable to find alternative sources for our raw materials, any trading disruption (such as tariffs, product restrictions, etc.) in the trading relationships between the U.S. and other nations may adversely impact our business. For instance, beginning in the first quarter of 2025, the U.S. imposed new or additional tariffs, through executive orders, on a variety of imported raw materials and products, including steel and aluminum. In response to the U.S. tariffs on steel and aluminum, the European Union and several other countries, including Canada and China, have threatened and/or imposed retaliatory tariffs. We continue to monitor the effects of the ever-evolving global trade landscape, including with respect to sanctions, tariffs, existing trade agreements, anti-dumping and countervailing duty regulations and more. President Trump has threatened additional increased tariffs on goods imported from China as result of current Chinese trade policy. A portion of those tariffs might by overturned depending on the resolution of certain U.S. litigation. Specifically, the U.S. Supreme Court has agreed to hear a case determining whether a federal law giving the president certain emergency powers allowed President Trump to levy tariffs on nearly all goods imported into the United States through a series of executive orders. The Court is scheduled to begin hearing oral arguments on November 5, with a ruling on the challenges potentially expected at the end of 2025. Tariffs and any additional changes in U.S. trade policy could result in one or more other jurisdictions adopting responsive trade policies. The adoption and expansion of trade restrictions, the occurrence of a trade war, or other governmental action related to tariffs or trade agreements or policies has the potential to adversely impact us and the global economy.

Previous wording

From an operational standpoint, many of the recent efficiency trends still apply to ongoing unconventional oil and gas development. The continued trend towards multi-well pad development and simultaneous well completions, executed within a limited time frame, combined with service price inflation and elevated interest rates, has increased the overall intensity, complexity and cost of well completions, while increasing fracturing efficiency and the use of lower-cost in-basin sand has decreased total costs for our customers. However, we note the continued efficiency gains in the

Current wording

From an operational standpoint, many of the recent efficiency trends still apply to ongoing unconventional oil and gas development. The continued trend towards multi-well pad development and simultaneous well completions, executed within a limited time frame, combined with service price inflation and elevated interest rates, has increased the overall intensity, complexity and cost of well completions, while increasing fracturing efficiency and the use of lower-cost in-basin sand has decreased total costs for our customers. However, we note the continued efficiency gains in the well completions process can limit the days we spend on the wellsite and, therefore, negatively impact the total revenue opportunity for certain of our services utilizing day-rate pricing models.

Previous wording

recognized when delivery of services is provided, generally at our customers’ sites. While we have a growing portfolio of contracts incorporating long-term pricing arrangements, particularly in our Water Infrastructure segment, the majority of our water and water-related services are priced based on prevailing market conditions, giving due consideration to the customer’s specific requirements.

Current wording

We currently generate most of our revenue through our water-management services associated with well completions as well as ongoing produced water management, provided through our Water Services and Water Infrastructure segments. Most of this revenue is realized through customer agreements with fixed pricing terms and is recognized when delivery of services is provided, generally at our customers’ sites. While we have a growing portfolio of contracts incorporating long-term pricing arrangements, particularly in our Water Infrastructure segment, the majority of our water and water-related services are priced based on prevailing market conditions, giving due consideration to the customer’s specific requirements.

Previous wording

Labor costs associated with our employees and contract labor comprise the largest portion of our costs of doing business. We incurred labor and labor-related costs of $124.4 million, $126.7 million, $253.8 million and $265.0 million for the Current Quarter, Prior Quarter, Current Period and Prior Period, respectively. The majority of our recurring labor costs are variable and dependent on the market environment and are incurred only while we are providing our operational services. We also incur costs to employ personnel to ensure safe operations, sell and supervise our services and perform maintenance on our assets, which is not as directly tied to our level of business activity. Additionally, we incur selling, general and administrative costs for compensation of our administrative personnel at our field sites and in our operational and corporate headquarters, as well as for third-party support, permitting, licensing and services.

Current wording

Labor costs associated with our employees and contract labor comprise the largest portion of our costs of doing business. We incurred labor and labor-related costs of $115.8 million, $134.2 million, $369.6 million and $399.2 million for the Current Quarter, Prior Quarter, Current Period and Prior Period, respectively. The majority of our recurring labor costs are variable and dependent on the market environment and are incurred only while we are providing our operational services. We also incur costs to employ personnel to ensure safe operations, sell and supervise our services and perform maintenance on our assets, which is not as directly tied to our level of business activity. Additionally, we incur selling, general and administrative costs for compensation of our administrative personnel at our field sites and in our operational and corporate headquarters, as well as for third-party support, permitting, licensing and services.

Previous wording

We incur significant vehicle and equipment costs in connection with the services we provide, including depreciation, repairs and maintenance, rental and leasing costs. We incurred vehicle and equipment costs of $79.7 million, $79.0 million, $159.2 million and $158.5 million for the Current Quarter, Prior Quarter, Current Period and Prior Period, respectively.

Current wording

We incur significant vehicle and equipment costs in connection with the services we provide, including depreciation, repairs and maintenance, rental and leasing costs. We incurred vehicle and equipment costs of $71.7 million, $80.0 million, $230.9 million and $238.5 million for the Current Quarter, Prior Quarter, Current Period and Prior Period, respectively.

Previous wording

We incur raw material costs in manufacturing our chemical products, as well as for water that we source for our customers. We incurred raw material costs of $58.8 million, $63.2 million, $123.9 million and $124.9 million for the Current Quarter, Prior Quarter, Current Period and Prior Period, respectively.

Current wording

We incur raw material costs in manufacturing our chemical products, as well as for water that we source for our customers. We incurred raw material costs of $60.4 million, $54.8 million, $184.4 million and $179.7 million for the Current Quarter, Prior Quarter, Current Period and Prior Period, respectively.

Previous wording

We incur variable transportation costs associated with our service lines, predominantly fuel and freight. We incurred fuel and freight costs of $18.4 million, $21.0 million, $40.7 million and $45.0 million for the Current Quarter, Prior Quarter, Current Period and Prior Period, respectively. Changes to fuel prices impact our transportation costs, which affects the results of our operations.

Current wording

We incur variable transportation costs associated with our service lines, predominantly fuel and freight. We incurred fuel and freight costs of $16.0 million, $19.7 million, $56.8 million and $64.7 million for the Current Quarter, Prior Quarter, Current Period and Prior Period, respectively. Changes to fuel prices impact our transportation costs, which affects the results of our operations.

Previous wording

We view EBITDA and Adjusted EBITDA as important indicators of performance. We define EBITDA as net income, plus interest expense, income taxes, and depreciation, amortization and accretion. We define Adjusted EBITDA as EBITDA plus any impairment and abandonment charges or asset write-offs pursuant to accounting principles generally accepted in the U.S. (“GAAP”), plus non-cash losses on the sale of assets or subsidiaries, non-recurring compensation expense, non-cash compensation expense, and non-recurring or unusual expenses or charges, including severance expenses, transaction costs, or facilities-related exit and disposal-related expenditures, plus/(minus) foreign currency losses/(gains), plus/(minus) losses/(gains) on unconsolidated entities and plus tax receivable agreements expense. The adjustments to EBITDA are generally consistent with such adjustments described in our Sustainability-Linked Credit Facility. See “—Comparison of Non-GAAP Financial Measures—EBITDA and Adjusted EBITDA” for

Current wording

We view EBITDA and Adjusted EBITDA as important indicators of performance. We define EBITDA as net income, plus interest expense, income taxes, and depreciation, amortization and accretion. We define Adjusted EBITDA as EBITDA plus any impairment and abandonment charges or asset write-offs pursuant to accounting principles generally accepted in the U.S. (“GAAP”), plus non-cash losses on the sale of assets or subsidiaries less remeasurement

Previous wording

We view EBITDA and Adjusted EBITDA as important indicators of performance. We define EBITDA as net income, plus interest expense, income taxes, and depreciation, amortization and accretion. We define Adjusted EBITDA as EBITDA plus any impairment and abandonment charges or asset write-offs pursuant to GAAP, plus non-cash losses on the sale of assets or subsidiaries, non-recurring compensation expense, non-cash compensation expense, and non-recurring or unusual expenses or charges, including severance expenses, transaction costs, or facilities-related exit and disposal-related expenditures, plus/(minus) foreign currency losses/(gains), plus/(minus) losses/(gains) on unconsolidated entities and plus tax receivable agreements expense. The adjustments to EBITDA are generally consistent with such adjustments described in our Sustainability-Linked Credit Facility. See “—Comparison of Non-GAAP Financial Measures” for more information and a reconciliation of EBITDA and Adjusted EBITDA to net income, the most directly comparable financial measure calculated and presented in accordance with GAAP.

Current wording

gains on fixed assets related to business combinations, non-recurring compensation expense, non-cash compensation expense, and non-recurring or unusual expenses or charges, including severance expenses, transaction costs, or facilities-related exit and disposal-related expenditures, plus/(minus) foreign currency losses/(gains), plus/(minus) losses/(earnings) on unconsolidated entities and plus tax receivable agreements expense. The adjustments to EBITDA are generally consistent with such adjustments described in our Sustainability-Linked Credit Facility. See “—Comparison of Non-GAAP Financial Measures—EBITDA and Adjusted EBITDA” for more information and a reconciliation of EBITDA and Adjusted EBITDA to net income, the most directly comparable financial measure calculated and presented in accordance with GAAP.

Previous wording

We define free cash flow as net cash provided by (used in) operating activities less purchases of property and equipment, plus proceeds received from sales of property and equipment. Our board of directors and executive management team use free cash flow to assess our liquidity and ability to fund operations, make additional investments, pay dividends and distributions, repay maturing debt and repurchase common stock. We believe free cash flow provides similarly useful information to investors for assessing the recent and ongoing financial and operational performance, outlook and liquidity position of the Company. Our measure of free cash flow may not be directly comparable to similar measures reported by other companies. Furthermore, free cash flow is not a substitute for, or more meaningful than, net cash provided by (used in) operating activities nor any other measure prescribed by GAAP, and there are limitations to using non-GAAP measures such as free cash flow. Accordingly, free cash flow should not be considered a measure of the income generated by our business or discretionary cash available to it to invest in the growth of our business.

Current wording

We define free cash flow as net cash provided by (used in) operating activities less purchases of property and equipment, plus proceeds received from sale of property and equipment. Our board of directors and executive management team use free cash flow to assess our liquidity and ability to repay maturing debt, fund operations and make additional investments. We believe free cash flow provides useful information to investors because it is an important indicator of our liquidity including our ability to reduce net debt, make strategic investments, pay dividends and distributions and repurchase common stock. Our measure of free cash flow may not be directly comparable to similar measures reported by other companies. Furthermore, free cash flow is not a substitute for, or more meaningful than, net cash provided by (used in) operating activities nor any other measure prescribed by GAAP, and there are limitations to using non-GAAP measures such as free cash flow. Accordingly, free cash flow should not be considered a measure of the income generated by our business or discretionary cash available to it to invest in the growth of our business.

Previous wording

During the Current Period, we completed five asset acquisitions. Our historical financial statements for periods prior to the respective date each acquisition was completed do not include the results of operations of that acquisition. See “—Recent Developments” and “Note 3—Acquisitions” for a description of these transactions.

Current wording

During the Current Period, we completed one business combination and nine asset acquisitions. Our historical financial statements for periods prior to the respective date each acquisition was completed do not include the results of operations of that acquisition. See “—Recent Developments” and “Note 3—Acquisitions” for a description of these transactions.

Previous wording

The following tables set forth our results of operations for the periods presented, including revenue by segment.

Current wording

The following tables set forth our results of operations for the periods presented.

Previous wording

Our revenue decreased by $0.9 million, or 0.3%, to $364.2 million for the Current Quarter compared to $365.1 million for the Prior Quarter. This decrease was composed of a $14.3 million decrease in Water Services revenue, partially offset by a $12.3 million increase in Water Infrastructure revenue and a $1.1 million increase in Chemical Technologies revenue. For the Current Quarter, our Water Infrastructure, Water Services and Chemical Technologies constituted 22.2%, 59.2% and 18.6% of our total revenue, respectively, compared to 18.8%, 63.0% and 18.2%, respectively, for the Prior Quarter. The revenue changes by reportable segment are as follows:

Current wording

Our revenue decreased by $49.1 million, or 13.2%, to $322.2 million for the Current Quarter compared to $371.3 million for the Prior Quarter. This decrease was composed of a $67.1 million decrease in Water Services revenue and a $3.2 million decrease in Water Infrastructure revenue partially offset by a $21.2 million increase in Chemical Technologies revenue. For the Current Quarter, our Water Infrastructure, Water Services and Chemical Technologies constituted 24.5%, 51.7% and 23.8% of our total revenue, respectively, compared to 22.1%, 63.0% and 14.9%, respectively, for the Prior Quarter. The revenue changes by reportable segment are as follows:

Previous wording

Water Services. Revenue decreased $14.3 million, or 6.2%, to $215.7 million for the Current Quarter compared to $230.0 million in the Prior Quarter. The decrease was primarily due to a decline in water sourcing revenue, reflecting a shift from legacy freshwater to produced water operations. Also impacting the change were increases in water transfer and accommodations and rentals revenue partially offset by declines in fluids hauling and well testing revenue.

Current wording

Water Services. Revenue decreased $67.1 million, or 28.7%, to $166.9 million for the Current Quarter compared to $234.0 million in the Prior Quarter. The decrease was primarily due to declines in Water Transfer and Well Testing revenue due to macroeconomic factors, including a reduction in hydraulic fracturing crews impacting activity and pricing. This was also impacted by lower Water Sourcing revenue, reflecting the transition from freshwater to produced water and lower Fluids Hauling revenue stemming from divested operations in connection with the Omni transaction.

Previous wording

Chemical Technologies. Revenue increased by $1.1 million, or 1.7%, to $67.7 million for the Current Quarter compared to $66.6 million for the Prior Quarter. The increase in revenues was primarily driven by enhanced sales performance and new product developments.

Current wording

Chemical Technologies. Revenue increased by $21.2 million, or 38.4%, to $76.6 million for the Current Quarter compared to $55.3 million for the Prior Quarter. The increase in revenues was primarily driven by enhanced sales performance and new product developments.

Previous wording

Chemical Technologies. Costs of revenue increased $0.2 million, or 0.4%, to $55.9 million for the Current Quarter compared to $55.6 million for the Prior Quarter. Cost of revenue as a percentage of revenue decreased from 83.6% to 82.5% attributable to a higher proportion of sales from higher margin products, coupled with reduced freight costs resulting from a shift from third-party providers to internal logistics execution.

Current wording

Chemical Technologies. Costs of revenue increased $12.9 million, or 26.6%, to $61.4 million for the Current Quarter compared to $48.5 million for the Prior Quarter. Cost of revenue as a percentage of revenue decreased from 87.6% to 80.1% attributable to a higher proportion of sales from higher margin products, coupled with reduced freight costs resulting from a shift from third-party providers to internal logistics execution.

Previous wording

Depreciation, amortization and accretion. Depreciation, amortization and accretion expense increased $3.6 million, or 9.6%, to $41.1 million for the Current Quarter compared to $37.4 million for the Prior Quarter primarily due to a higher fixed asset base resulting from recent acquisitions as well as increased capital expenditures made into new organic infrastructure projects.

Current wording

Depreciation, amortization and accretion. Depreciation, amortization and accretion expense increased $4.7 million, or 12.0%, to $43.6 million for the Current Quarter compared to $38.9 million for the Prior Quarter primarily due to a higher fixed asset base resulting from recent acquisitions as well as increased capital expenditures made into new organic infrastructure projects.

Previous wording

Gross profit was $57.8 million for the Current Quarter compared to $60.2 million for the Prior Quarter primarily driven by a $9.7 million increase in gross profit from our Water Infrastructure segment and a $0.9 million increase in our Chemical Technologies segment, offset by a $9.4 million decline in our Water Services segment and a $3.6 million increase in depreciation, amortization and accretion expense. Gross margin as a percentage of revenue was 15.9% and 16.5% in the Current Quarter and Prior Quarter, respectively.

Current wording

Gross profit was $43.6 million for the Current Quarter compared to $62.4 million for the Prior Quarter primarily driven by a $17.9 million decrease in gross profit from our Water Service segment, a $4.7 million decrease in gross profit from our Water Infrastructure segment and a $4.7 million increase in depreciation, amortization and accretion expense partially offset by an $8.3 million increase in gross profit from our Chemical Technologies segment. Gross margin as a percentage of revenue was 13.5% and 16.8% in the Current Quarter and Prior Quarter, respectively.

Previous wording

Selling, general and administrative expenses decreased $0.1 million, or 0.1%, to $38.9 million for the Current Quarter compared to $39.0 million for the Prior Quarter, driven primarily by a $2.6 million decrease in incentive and equity-based compensation and a $1.1 million decrease in transaction and rebranding related expenses being partially offset by a $1.6 million increase in wages and associated taxes and benefits and contract labor and $2.0 million in higher information technology costs and other expenses.

Current wording

Selling, general and administrative expenses increased $4.4 million, or 11.8%, to $41.7 million for the Current Quarter compared to $37.3 million for the Prior Quarter, driven primarily by a $1.5 million severance charge in the Current Quarter in connection with the termination of certain former management employees related to a reorganization, a $1.4 million increase in wages and associated taxes and benefits and contract labor, $1.4 million in higher information technology costs and a $0.6 million increase in incentive and equity-based compensation partially offset by a decrease in other expenses of $0.5 million.

Previous wording

Net interest expense increased by $3.6 million, or 178.6%, to $5.6 million for the Current Quarter compared to $2.0 million in the Prior Quarter due to interest expense on the new Term Loan Facility as well as higher amortization of deferred debt issuance costs in connection with our new Sustainability-Linked Credit Facility.

Current wording

Net interest expense increased by $4.1 million, or 212.9%, to $6.0 million for the Current Quarter compared to $1.9 million in the Prior Quarter due to interest expense on the new Term Loan Facility as well as higher amortization of deferred debt issuance costs in connection with our new Sustainability-Linked Credit Facility.

Previous wording

Net income decreased by $3.2 million, or 21.7%, to $11.7 million for the Current Quarter compared to $14.9 million for the Prior Quarter, driven primarily by lower gross profit, higher net interest expense and higher income tax expense partially offset by gains on sales of property and equipment in the Current Quarter.

Current wording

Net income decreased by $16.5 million, or 87.8%, to $2.3 million for the Current Quarter compared to $18.8 million for the Prior Quarter, driven primarily by lower gross profit, higher net interest expense, higher selling, general and administrative expenses and equity losses in the Current Quarter partially offset by lower income tax expense and the remeasurement gain on business combination in the Current Quarter.

Previous wording

Our revenue increased by $6.9 million, or 0.9%, to $738.6 million for the Current Period compared to $731.7 million for the Prior Period. This increase was composed of a $21.2 million increase in Water Infrastructure revenue and a $2.8 million increase in Chemical Technologies revenue partially offset by a $17.0 million decrease in Water Services revenue. The net $6.9 million increase was driven primarily by recent capital investments in our Water Infrastructure segment and enhanced sales performance in Chemical Technologies. For the Current Period, our Water Infrastructure, Water Services and Chemical Technologies constituted 20.7%, 59.8% and 19.5% of our total revenue, respectively, compared to 18.1%, 62.6% and 19.3%, respectively, for the Prior Period. The revenue changes by reportable segment are as follows:

Current wording

Our revenue decreased by $42.2 million, or 3.8%, to $1.061 billion for the Current Period compared to $1.103 billion for the Prior Period. This decrease was composed of a $84.1 million decrease in Water Services revenue partially offset by a $24.0 million increase in Chemical Technologies revenue and a $18.0 million increase in Water Infrastructure revenue. The net $42.2 million decrease was driven primarily by macroeconomic conditions, including fewer hydraulic fracturing crews, partially offset by increases as a result of recent capital investments in our Water Infrastructure segment and enhanced sales performance in Chemical Technologies. For the Current Period, our Water Infrastructure, Water Services and Chemical Technologies constituted 21.9%, 57.3% and 20.8% of our total revenue, respectively, compared to 19.4%, 62.8% and 17.8%, respectively, for the Prior Period. The revenue changes by reportable segment are as follows:

Previous wording

Chemical Technologies. Revenue increased by $2.8 million, or 1.9%, to $144.0 million for the Current Period compared to $141.3 million for the Prior Period. The increase in revenues was primarily driven by enhanced sales performance.

Current wording

Chemical Technologies. Revenue increased by $24.0 million, or 12.2%, to $220.6 million for the Current Period compared to $196.6 million for the Prior Period. The increase in revenues was primarily driven by enhanced sales performance.

Previous wording

Water Services. Costs of revenue decreased $4.8 million, or 1.3%, to $355.0 million for the Current Period compared to $359.8 million for the Prior Period. As a percentage of revenue, cost of revenue increased from 78.5% in the Prior Period to 80.4% in the Current Period. This increase was primarily driven by a decline in water sourcing revenue and reduced margins in the water transfer, poly and containment and well testing business lines, reflecting selective price reductions implemented to retain key customer relationships. These impacts were partially offset by improved gross margins in our fluids hauling business lines, attributable to continued cost discipline and operational efficiencies.

Current wording

Water Services. Costs of revenue decreased $54.1 million, or 9.9%, to $491.8 million for the Current Period compared to $545.9 million for the Prior Period. As a percentage of revenue, cost of revenue increased from 78.8% in the Prior Period to 80.9% in the Current Period. The increase was primarily impacted by lower revenue levels in the Water Transfer, Well Testing and Accommodation and Rentals business lines, as not all costs could be proportionally reduced. This increase was also impacted by a decline water sourcing revenue and margins, reflecting a transition from fresh water to produced water operations. This was partially offset by improved gross margins in our Fluids Hauling business line, favorably impacted by the divestment of lower margin operations in connection with the Omni transaction.

Previous wording

Depreciation, amortization and accretion. Depreciation, amortization and accretion expense increased $5.4 million, or 7.3%, to $79.7 million for the Current Period compared to $74.3 million for the Prior Period primarily due to a higher fixed asset base resulting from recent acquisitions as well as increased capital expenditures made into new organic infrastructure projects.

Current wording

Depreciation, amortization and accretion. Depreciation, amortization and accretion expense increased $10.1 million, or 8.9%, to $123.3 million for the Current Period compared to $113.2 million for the Prior Period primarily due to a higher fixed asset base resulting from recent acquisitions as well as increased capital expenditures made into new organic infrastructure projects.

Previous wording

Gross profit was $113.5 million for the Current Period compared to $112.8 million for the Prior Period primarily driven by a $18.7 million increase in gross profit from our Water Infrastructure segment, partially offset by a $12.2 million decline in our Water Services segment, a $0.5 million decline in our Chemical Technologies segment and a $5.4 million increase in depreciation, amortization and accretion expense. Gross margin as a percentage of revenue remained flat at 15.4% in both the Current Period and Prior Period.

Current wording

Gross profit was $157.1 million for the Current Period compared to $175.3 million for the Prior Period primarily driven by a $30.1 million decrease in gross profit from our Water Services segment and a $10.1 million increase in depreciation, amortization and accretion expense partially offset by a $14.1 million increase in gross profit

Previous wording

Selling, general and administrative expenses decreased $6.6 million, or 7.9%, to $76.4 million for the Current Period compared to $83.0 million for the Prior Period. The decrease was primarily driven by a $5.4 million decline in incentive and equity-based compensation, $4.8 million in lower transaction and rebranding costs, a $1.5 million reduction in contract labor, a $1.1 million reduction in legal and professional fees and a $0.6 million reduction in severance expense, partially offset by a $3.5 million increase in wages, associated payroll taxes, and employer 401(k) matching contributions, $2.6 million in higher information technology costs and $0.7 million from a combination of other expenses.

Current wording

Selling, general and administrative expenses decreased $2.2 million, or 1.8%, to $118.0 million for the Current Period compared to $120.2 million for the Prior Period. The decrease was primarily driven by $4.6 million in lower transaction and rebranding costs, a $4.5 million decline in incentive and equity-based compensation and a $1.0 million reduction in legal and professional fees and other expenses, partially offset by $4.0 million in higher information technology costs, a $3.1 million increase in wages and associated taxes and benefits and contract labor and $0.8 million in higher severance expense.

Previous wording

During the Current Period, we recognized $2.6 million in impairments and abandonments, consisting of $1.3 million related to the abandonment of back-office software development costs, $0.7 million in the Water Infrastructure segment primarily associated with the termination of a disposal lease and $0.6 million of property and equipment in the Water Services segment related to the relocation of operations from a leased facility.

Current wording

During the Current Period, the Company recognized $4.9 million in impairments and abandonments, consisting of $3.1 million in the Water Infrastructure segment primarily associated with SWD abandonments and the termination of a disposal lease, $1.2 million in Other related to abandonment of back-office software development costs previously classified as Other long-term assets and $0.6 million in the Water Services segment related to the relocation of operations from a leased facility. Prior Period impairments and abandonments were less than $0.1 million.

Previous wording

During the Current Period, we recognized $7.9 million in gains on sales of property and equipment and divestitures, primarily consisting of $4.7 million related to the sale of excess land in the Haynesville/E. Texas region in our Water Infrastructure segment, $2.5 million in underutilized or obsolete property and equipment in our Water Services segment and $0.7 million of obsolete property and equipment in our Chemical Technologies segment. Prior Period amounts were due primarily to sales of underutilized or obsolete property and equipment.

Current wording

During the Current Period, we recognized $10.5 million in gains on sales of property and equipment and divestitures, primarily consisting of $5.5 million in underutilized or obsolete property and equipment in our Water Services segment, $4.0 million in our Water Infrastructure segment related to the sale of excess land in the Haynesville/E. Texas region and $1.0 million of obsolete property and equipment in our Chemical Technologies segment. Prior Period amounts were due primarily to sales of underutilized or obsolete property and equipment.

Previous wording

Net interest expense increased by $7.2 million, or 219.0%, to $10.5 million for the Current Period compared to $3.3 million in the Prior Period due to interest expense on the new Term Loan Facility as well as higher amortization of deferred debt issuance costs in connection with our new Sustainability-Linked Credit Facility and extinguishment costs related to our Prior Sustainability-Linked Credit Facility.

Current wording

Net interest expense increased by $11.3 million, or 216.8%, to $16.5 million for the Current Period compared to $5.2 million in the Prior Period due to interest expense on the new Term Loan Facility as well as higher amortization of deferred debt issuance costs in connection with our new Sustainability-Linked Credit Facility and extinguishment costs related to our Prior Sustainability-Linked Credit Facility.

Previous wording

Net income increased by $2.5 million, or 13.1%, to $21.2 million for the Current Period compared to $18.8 million for the Prior Period, driven primarily by lower selling, general and administrative expenses and increased gains on sales of property and equipment and divestitures, net, partially offset by increases in net interest expense and income tax expense.

Current wording

Net income decreased by $14.1 million, or 37.4%, to $23.5 million for the Current Period compared to $37.6 million for the Prior Period, driven primarily by lower gross profit, an increase in interest expense and equity investment losses in the Current Period partially offset by lower income tax expense, the remeasurement gain on business combination and increased gains on sales of property and equipment and divestitures, net.

Previous wording

EBITDA was $121.7 million for the Current Period compared to $103.8 million for the Prior Period. The $17.9 million increase in EBITDA was driven primarily by a $7.2 million increase in gains on asset sales, a $6.1 million increase in gross profit and a $6.6 million decrease in selling, general and administrative expense partially offset by a $2.5 million increase in impairments and abandonments. Adjusted EBITDA was $136.6 million for the Current Period compared to $129.4 million for the Prior Period.

Current wording

EBITDA was $175.3 million for the Current Period compared to $170.0 million for the Prior Period. The $5.3 million increase in EBITDA was driven primarily by a $14.9 million remeasurement gain on business combination with Omni, a $8.1 million increase in gains on asset sales and a $2.2 million decrease in selling, general and administrative expense partially offset by lower gross profit of $8.1 million, $5.0 million less in equity earnings in unconsolidated investments and a $4.8 million increase in impairments and abandonments. Adjusted EBITDA was $196.1 million for the Current Period compared to $202.2 million for the Prior Period.

Previous wording

We prioritize sustained positive free cash flow and a strong balance sheet and evaluate potential acquisitions and investments in the context of those priorities, in addition to the economics of the opportunity. We believe this approach provides us with additional flexibility to evaluate larger investments as well as improved resilience in a sustained downturn versus many of our peers.

Current wording

We prioritize sustained positive free cash flow and a strong balance sheet and evaluate potential acquisitions and investments in the context of those priorities, in addition to the economics of the opportunity. We believe this