DAWSON GEOPHYSICAL CO
For the period ended Sep 30, 2025. Filed Nov 13, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 13, 2025
DWSN$1.64+3.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-13.
0001558370-25-011393
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-13.
0001104659-25-111340
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 57 previous paragraphs and 59 current paragraphs.
22 unchanged; 24 reworded; 11 added; 7 removed; 4 previous and 2 current paragraphs rearranged.
Tables are not compared: 9 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
In August 2025, Dawson Operating LLC (“Dawson Operating”), a wholly-owned subsidiary of Dawson Geophysical Company, entered into an equipment purchase agreement with GTC, Inc. (“GTC”), a wholly-owned subsidiary of Geospace Technologies Corporation (“Geospace”), pursuant to which, among other things, Dawson Operating agreed to acquire new single point node channels from GTC in three shipments for an aggregate purchase price of approximately $24.2 million (the “Equipment Purchase Agreement”) subject to the terms and conditions thereof. The Company paid cash of approximately $4.8 million upon execution of the Equipment Purchase Agreement, agreed to pay approximately $1.2 million in cash upon final delivery, and agreed to finance approximately $18.2 million through separate promissory notes to be issued in connection with each delivery of equipment (each, a “Geospace Note” and collectively, the “Geospace Notes”). Each Geospace Note is payable by Dawson Geophysical Company and Dawson Operating, jointly and severally, to GTC. The Geospace Notes will each have a term of 36 months, bear a fixed interest rate of 8.75% annually and may be prepaid in whole or in part at any time without penalty.
Current report
As of September 30, 2025, we have taken delivery of $10.4 million of equipment and issued two Geospace Notes with an aggregate principal of approximately $7.5 million. We immediately deployed our first delivery of this equipment in August, with promising results.
Current report
In the United States, we continued to operate one large channel crew throughout the third quarter utilizing our legacy channels. That crew is scheduled to complete recording on that project in mid-November and immediately start another large channel project utilizing the new single node channels. That project is anticipated to end in the second quarter of 2026. Our seasonal operations in Canada resumed in October, and we expect them to ramp up into another successful season. We have multiple small channel crew jobs contracted in the fourth quarter in the United States and Canada and expect our revenue to continue to increase quarter-over-quarter.
Current report
Interest Expense. Interest expenses for the third quarter of 2025 were $71,000, compared to 35,000 for the same period of 2024. Interest expenses for the first nine months of 2025 were $205,000 compared to $120,000 for the same period of 2024. The primary factors for the increase in interest expense for both periods is additional debt from capital leases and the addition of the Geospace equipment notes.
Current report
Revolving Credit Note
Current report
On October 31, 2025, Dawson Geophysical Company and Dawson Operating, as borrowers (the “Borrowers”), entered into a Revolving Credit Note (the “Revolving Credit Note”) in favor of Equify Financial, as lender (the “Lender”), a related party affiliated through common control.
Current report
Pursuant to the Revolving Credit Note, the Borrowers, jointly and severally, may, from time to time until November 20, 2028, request loans from the Lender for up to an aggregate principal amount of $5,035,032. The loans outstanding under the Revolving Credit Note are payable by the Borrowers in thirty-six (36) monthly installments of principal in the amount of $139,862, together with all accrued and unpaid interest on the outstanding principal balance thereunder, commencing on December 20, 2025, and continuing thereafter until the maturity date. The interest rate applicable to loans outstanding under the Revolving Credit Note is a rate per annum equal to 13%.
Current report
The maximum borrowing limit under the Revolving Credit Note is initially $5,035,032, and such amount is reduced by $139,862 on each monthly payment date. The Borrowers may prepay up to 75% of the then outstanding principal and accrued but unpaid interest at any time without a prepayment fee.
Current report
The obligations under the Revolving Credit Note are secured by a lien on the Company’s vibrator energy source vehicles, pursuant to a Security Agreement by and between the Company and Lender, dated as of October 31, 2025.
Current report
All outstanding amounts owed under the Revolving Credit Note become due and payable no later than the maturity date of November 20, 2028, and are subject to acceleration upon the occurrence of events of default which the Company considers usual and customary for an agreement of this type, including failure to make payments under the Revolving Credit Note, non-performance of covenants and obligations or insolvency or bankruptcy (as defined in the Revolving Credit Note).
Current report
In July 2025, the FASB issued ASU 2025-05,Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This ASU introduces a practical expedient to simplify the application of Topic 326, Financial Instruments - Credit Losses, to current accounts receivable and current contract assets arising from revenue transactions accounted for under topic 606, Revenue from Contracts with Customers. This ASU is effective for all entities for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted in both interim and annual reporting periods in which financial statements have not yet been issued or made available for issuance. We are currently evaluating the impact of this standard on its
Removed paragraphs (7)
Previous report
Due to the observed increase in demand for large integrated high-resolution, high channel count surveys and improvement to our backlog, we made the decision to make a significant capital investment to purchase new single node channels from a wholly-owned subsidiary of Geospace Technologies Corporation (“GTC”). On August 8, 2025, Dawson Operating LLC (“Dawson Operating”), entered into an Equipment Purchase Agreement, dated August 8, 2025 (the “Purchase Agreement”), with GTC, Inc., pursuant to which, among other things, Dawson Operating agreed to acquire single point node channels from GTC. Subject to the terms and conditions of the Purchase Agreement, the equipment is to be delivered in three shipments commencing in August 2025, with the final shipment scheduled for delivery by early January 2026.
Previous report
The Purchase Agreement provides that, subject to the terms and conditions set forth therein, Dawson Operating will pay to GTC an aggregate purchase price of approximately $24.2 million, as follows: (i) approximately $4.8 million was paid in cash in connection with the execution of the Purchase Agreement; (ii) approximately $1.2 million will be payable in cash upon acceptance of the third and final delivery of the equipment; and (iii) approximately $18.2 million in the aggregate will be financed by the delivery of three separate thirty-six (36) month promissory notes each with a fixed interest rate of 8.75% (each, a “Note” and collectively, the “Geospace Notes”) payable by Dawson Operating and the Company, jointly and severally, to GTC, with each Note to be issued in connection with the Dawson Operating’s acceptance of one of the three equipment deliveries. We believe this investment will allow the Company to be a leader in the industry, giving us a competitive advantage for large integrated high-resolution, high channel count surveys currently demanded by the exploration & production efforts of our customers.
Previous report
We deployed one large channel crew at the beginning of April, which should keep that crew highly utilized throughout the end of the year. We continue to improve our backlog and have multiple small channel crew jobs contracted in the third quarter for quick deployment of our recently purchased equipment.
Previous report
Capital Expenditures. The Board of Directors approved the Purchase Agreement to acquire new single node channels for an aggregate purchase price of approximately $24.2 million, paid as follows: (i) approximately $4.8 million paid in cash in connection with the execution of the Purchase Agreement; (ii) approximately $1.2 million will be payable in cash upon acceptance of the third and final delivery of the equipment; and (iii) approximately $18.2 million in the aggregate will be financed by the Geospace Notes, payable by Dawson Operating and the Company, jointly and severally, to GTC, with each Note to be issued in connection with the Dawson Operating’s acceptance of one of the three equipment deliveries.
Previous report
Loan Agreement
Previous report
*Dominion Credit Facility.*On September 30, 2019, we entered into a Loan and Security Agreement with Dominion Bank, a Texas state bank (“Dominion Bank”). On September 30, 2023, we entered into a Fifth Loan Modification Agreement (the “Fifth Modification Agreement”) to the Loan and Security Agreement (as amended by (i) that certain Loan Modification Agreement dated as of September 30, 2020, (ii) that certain Second Loan Modification Agreement dated as of September 30, 2021, (iii) that certain Third Loan Modification Agreement dated as of September 30, 2022, (iv) that certain Fourth Modification Agreement dated as of March 21, 2023, and (v) the Fifth Modification Agreement, the “Loan Agreement”). The Loan Agreement provided for a secured revolving credit facility (the “Revolving Credit Facility”) in an amount up to the lesser of (I) an amount equal to the Borrowing Base or (II) $5 million. Our obligations under the Loan Agreement was secured by a Certificate of Deposit with Dominion Bank for $5 million (the “Deposit”) in our collateral account. On May 2, 2024, the collateral deposit of $5 million was released and the Loan Agreement was terminated.
Previous report
Dominion Letters of Credit. As of June 30, 2025, we have no outstanding letters of credit.
Reworded paragraphs (24)
Previous wording
Statements other than statements of historical fact included in this Form 10-Q that relate to forecasts, estimates or other expectations regarding future events, including without limitation, statements under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Business” regarding technological advancements and our financial position, business strategy, and plans and objectives of our management for future operations, may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). When used in this Form 10-Q, words such as “anticipate,” “believe,” “estimate,” “expect,” “intend” and similar expressions, as they relate to us or our management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of our management, as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors. These factors include, but are not limited to, risks relating to the efficacy of the purchased single node channels; the risk that the delivery of the equipment may not be delivered in a timely manner or at all; the Company’s ability to execute its business strategies and plans for growth; the failure to operationalize the acquired equipment in a timely manner or at all; risks associated with the Company’s ability to finance the transaction contemplated by the Purchase Agreement; our status as a controlled public company, which exempts us from certain corporate governance requirements; the limited market for our common stock; the impact of general economic, industry, market or political conditions, including tariffs; dependence upon energy industry spending; changes in exploration and production spending by our customers and changes in the level of oil and natural gas exploration and development; the results of operations and financial condition of our customers, particularly during extended periods of low prices for crude oil and natural gas; the volatility of oil and natural gas prices and markets; changes in economic conditions; surplus in the supply of oil and the ability of the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, to agree on and comply with supply limitations; the potential for contract delays; reductions or cancellations of service contracts; limited number of customers; credit risk related to our customers; reduced utilization; high fixed costs of operations and high capital requirements; industry competition; external factors affecting the Company’s crews such as weather interruptions and inability to obtain land access rights of way; whether the Company enters into turnkey or day rate contracts; crew productivity; the…
Excerpt shortened here; the source contains the full paragraph.
Current wording
Statements other than statements of historical fact included in this Form 10-Q that relate to forecasts, estimates or other expectations regarding future events, including without limitation, statements under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Business” regarding technological advancements and our financial position, business strategy, and plans and objectives of our management for future operations, may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements generally relate to future events or the Company’s future financial or operating performance and may be identified by words such as “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” or similar words. Such statements include, but are not limited to, statements about the Company’s future financial or operating performance, statements of the Company’s position in the marketplace; statements about the Company’s growth potential and strategies for growth; statements about the Company’s ability to realize the benefits expected from the new single node channels; and any indication that the Company may be able to sustain or increase its sales, earnings or earnings per share, or its sales, earnings or earnings per share growth rates. Such forward-looking statements are based on the beliefs of our management, as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors. These factors include, but are not limited to, risks relating to the efficacy of the purchased single node channels; the risk that the delivery of the equipment may not be delivered in a timely manner or at all; the Company’s ability to execute its business strategies and plans for growth; the failure to operationalize the acquired equipment in a timely manner or at all; risks associated with the Company’s ability to finance the transaction contemplated by the Purchase Agreement; our status as a controlled public company, which exempts us from certain corporate governance requirements; the limited market for our common stock; the impact of general economic, industry, market or political conditions, including tariffs; dependence upon energy industry spending; changes in exploration and production spending by our customers and changes in the level of oil and natural gas exploration and development; the results of operations and financial condition of our customers, particularly during extended periods of low prices for crude oil and natural gas; the volatility of oil and natural gas prices and markets; changes in economic conditions; surplus in the supply of oil and the ability of the Organizat…
Excerpt shortened here; the source contains the full paragraph.
Previous wording
We are a leading provider of North American onshore seismic data acquisition services with operations throughout the continental U.S. and Canada. Substantially all of our revenues are derived from the seismic data acquisition services we provide to our clients. Our clients consist of major oil and gas companies, independent oil and gas operators, and providers of multi-client data libraries. In recent years, our primary customer base has consisted of providers of multi-client data libraries. Demand for our services depends upon the level of spending by these companies for exploration, production, development and field management activities, which depends, in a large part, on oil and natural gas prices. Significant fluctuations in domestic oil and natural gas exploration and development activities related to commodity prices, as we have recently experienced, have affected, and will continue to affect, demand for our services and our results of operations, and such fluctuations continue to be the single most important factor affecting our business and results of operations.
Current wording
We are a leading provider of North American onshore seismic data acquisition services with operations throughout the continental U.S. and Canada. Substantially all of our revenues are derived from the seismic data acquisition services we provide to our clients. Our clients consist of major oil and gas companies, independent oil and gas operators, and providers of multi-client data libraries. In recent years, our primary customer base has consisted of providers of multi-client data libraries. Demand for our services depends upon the level of spending by these companies for exploration, production, development and field management activities, which depends, in a large part, on oil and natural gas prices. Significant fluctuations in domestic oil and natural gas exploration and development activities related to
Previous wording
U.S. Fee Revenues. Acquisition revenues for the second quarter of 2025 increased 1.0% to $8.4 million compared to $8.3 million for the same period of 2024. The minimal increase was primarily due to similar crew utilization. Acquisition revenues for the first six months of 2025 decreased 58.2% to $11.1 million compared to $26.6 million for the same period of 2024. The decrease was primarily due to a decrease in crew utilization in the first quarter of 2025 compared to 2024.
Current wording
U.S. Fee Revenues. Acquisition revenues for the third quarter of 2025 increased 217.6% to $14.8 million compared to $4.7 million for the same period of 2024. The increase was primarily due to increased crew utilization. Acquisition revenues for the first nine months of 2025 decreased 17.1% to $25.9 million compared to $31.3 million for the same period of 2024. The decrease was primarily due to a decrease in crew utilization in the first quarter of 2025 compared to 2024.
Previous wording
period of 2024. The increase in both periods was primarily due to completion of projects during the second quarter of 2025 in addition to increased crew utilization for the first six months of 2025, compared to the same period of 2024.
Current wording
*Canadian Fee Revenues.*Acquisition revenues for the third quarter of 2025 increased to $166,000 compared to $11,000 for the same period of 2024. Acquisition revenues for the first nine months of 2025 increased 53.9% to $13.0 million compared to $8.5 million for the same period of 2024. The increase in both periods was primarily due to completion of additional projects during the third quarter of 2025 in addition to increased crew utilization for the first nine months of 2025, compared to the same period of 2024.
Previous wording
*Total Revenues.*Revenues for the second quarter of 2025 were $9.9 million compared to $12.5 million for the same period of 2024. Total revenues included a decrease of $3.1 million in reimbursable revenues. Revenues for the first six months of 2025 were $25.9 million compared to $44.1 million for the same period of 2024. Total revenues included a decrease of $7.1 million in reimbursable revenues.
Current wording
*Total Revenues.*Revenues for the third quarter of 2025 were $22.7 million compared to $14.4 million for the same period of 2024. Total revenues included a decrease of $2.0 million in reimbursable revenues. Revenues for the first nine months of 2025 were $48.7 million compared to $58.5 million for the same period of 2024. Total revenues included a decrease of $9.1 million in reimbursable revenues.
Previous wording
*U.S. Fee Operating Expenses.*Acquisition expenses for the second quarter of 2025 decreased 11.9% to $6.7 million compared to $7.6 million for the same period of 2024. The decrease was primarily due to improved efficiency in our operations. Acquisition expenses for the first six months of 2025 decreased 44.7% to $11.4 million from $20.5 million for the same period of 2024. The decrease was primarily due to a decrease in crew utilization.
Current wording
*U.S. Fee Operating Expenses.*Acquisition expenses for the third quarter of 2025 increased 107.5% to $11.7 million compared to $5.7 million for the same period of 2024. The increase was primarily due to costs associated with increased crew utilization during the period. Acquisition expenses for the first nine months of 2025 decreased 11.9% to $23.1 million from $26.2 million for the same period of 2024. The decrease was primarily due to an overall decrease in crew utilization for the period.
Previous wording
*Canadian Fee Operating Expenses.*Acquisition expenses for the second quarter of 2025 increased 54.2% to $0.9 million compared to $0.6 million for the same period of 2024. The increase was primarily due to an overall increase in crew production and utilization during the period. Acquisition expenses for the first six months of 2025 increased 50.8% to $7.2 million from $4.8 million for the same period of 2024. The increase was primarily due to increased crew utilization.
Current wording
*Canadian Fee Operating Expenses.*Acquisition expenses for the third quarter of 2025 increased 25.0% to $0.9 million compared to $0.7 million for the same period of 2024. The increase was primarily due to an overall increase in crew production and utilization during the period. Acquisition expenses for the first nine months of 2025 increased 47.3% to $8.1 million from $5.5 million for the same period of 2024. The increase was primarily due to increased crew utilization.
Previous wording
General and Administrative Expenses. During the second quarter of 2025, general and administrative expenses decreased 6.2% to $2.3 million compared to $2.5 million for the same period of 2024. During the first six months of 2025 general and administrative expenses decreased 8.3% to $4.3 million compared to $4.7 million for the same period of 2024. The decrease was primarily due to our focus on cost reduction initiatives.
Current wording
General and Administrative Expenses. During the third quarter of 2025, general and administrative expenses decreased 19.8% to $2.1 million compared to $2.6 million for the same period of 2024. During the first nine months of 2025 general and administrative expenses decreased 12.4% to $6.4 million compared to $7.3 million for the same period of 2024. The decrease was primarily due to our focus on cost reduction initiatives.
Previous wording
Depreciation and Amortization Expense. Depreciation and amortization expenses for the second quarter and first six months of 2025 totaled $1.2 million and $2.4 million, respectively, compared to $1.4 million and $3.0 million for the same periods of 2024. Depreciation expenses decreased in 2025 compared to 2024 primarily due to multiple years of reduced capital expenditures.
Current wording
Depreciation and Amortization Expense. Depreciation and amortization expenses for the third quarter and first nine months of 2025 totaled $1.3 million and $3.8 million, respectively, compared to $1.4 million and $4.4 million for the same periods of 2024. Depreciation expenses decreased in 2025 compared to 2024 primarily due to multiple years of reduced capital expenditures. We expect depreciation expense to increase resulting from the purchase of the new single point node channels under the Equipment Purchase Agreement.
Previous wording
Total Operating Costs. Total operating costs for the second quarter of 2025 were $12.2 million, representing a 24.9% decrease from the same period of 2024. The operating costs for the first six months of 2025 were $27.3 million, representing a 35.2% decrease from the same period of 2024. The decrease in operating costs for the second quarter and first six months of 2025 compared to 2024 was primarily due to the factors described above.
Current wording
Total Operating Costs. Total operating costs for the third quarter of 2025 were $23.9 million, representing a 18.6% increase from the same period of 2024. The operating expenses for the first nine months of 2025 were $51.2 million, representing a 17.8% decrease from the same period of 2024. The increase in operating expenses for the third quarter and decrease for the first nine months of 2025 compared to 2024 was primarily due to the factors described above.
Previous wording
Income Taxes. Income tax benefits for the second quarter and first six months of 2025 were $7,000 and $4,000, respectively, compared to income tax benefit of $131,000 for the second quarter of 2024 and income tax expense of $71,000 for the first six months of 2024. These amounts represent effective tax rates of 0.3% for the second quarter and first six months of 2025, compared to 3.6% and 3.0% for the same periods of 2024. The Company’s nominal effective tax rate for the periods above was due to the presence of net operating loss carryovers and adjustments to the valuation allowance on deferred tax assets.
Current wording
Income Taxes. Income tax expenses for the third quarter and first nine months of 2025 were $10,000 and $6,000, respectively, compared to income tax benefit of $35,000 for the third quarter of 2024 and income tax expense of $36,000 for the first nine months of 2024. These amounts represent effective tax rates of -0.9% and -0.2% for the third quarter and first nine months of 2025, compared to 0.6% and -1.1% for the same periods of 2024. The Company’s nominal effective tax rate for the periods above was due to the presence of net operating loss carryovers and adjustments to the valuation allowance on deferred tax assets.
Previous wording
in accordance with GAAP. When assessing our operating performance, investors and others should not consider this data in isolation or as a substitute for net income (loss), cash flow from operating activities or other cash flow data calculated in accordance with GAAP. In addition, our EBITDA may not be comparable to EBITDA or similarly titled measures utilized by other companies since other companies may not calculate EBITDA in the same manner as us. Further, the results presented by EBITDA cannot be achieved without incurring the costs that the measure excludes: interest, taxes, depreciation and amortization, and other unusual items. For the three and six months ended June 30, 2025, and 2024, there were no unusual items and therefore Adjusted EBITDA and EBITDA were equal, and only EBITDA is presented.
Current wording
We also understand that such data are used by investors to assess our performance. However, the term EBITDA is not defined under generally accepted accounting principles (“GAAP”), and EBITDA is not a measure of operating income or operating performance presented in accordance with GAAP. When assessing our operating performance, investors and others should not consider this data in isolation or as a substitute for net income (loss), cash flow from operating activities or other cash flow data calculated in accordance with GAAP. In addition, our EBITDA may not be comparable to EBITDA or similarly titled measures utilized by other companies since other companies may not calculate EBITDA in the same manner as us. Further, the results presented by EBITDA cannot be achieved without incurring the costs that the measure excludes: interest, taxes, depreciation and amortization, and other unusual items. For the three and nine months ended September 30, 2025, and 2024, there were no unusual items and therefore Adjusted EBITDA and EBITDA were equal, and only EBITDA is presented.
Previous wording
The reconciliation of our EBITDA to our Net (loss) income and net cash provided by operating activities, which are the most directly comparable GAAP financial measures, are provided in the following tables (in thousands):
Current wording
The reconciliation of our EBITDA to our Net income (loss) and net cash provided by operating activities, which are the most directly comparable GAAP financial measures, are provided in the following tables (in thousands):
Previous wording
Our principal sources of cash are amounts earned from the seismic data acquisition services we provide to our clients. Our principal uses of cash are the amounts used to provide these services, including expenses related to our operations and acquiring new equipment. Accordingly, our cash position depends (as do our revenues) on the level of demand for our services. Historically, cash generated from our operations along with cash reserves have been sufficient to fund our working capital requirements and, to some extent, our capital expenditures. Management believes cash flow from operations, cash on hand and working capital are sufficient to fund operating and investing cash flow requirements, as well as obligations under the Geospace Notes.
Current wording
Our principal sources of cash are amounts earned from the seismic data acquisition services we provide to our clients. Our principal uses of cash are the amounts used to provide these services, including expenses related to our operations and acquiring new equipment. Accordingly, our cash position depends (as do our revenues) on the level of demand for our services. Historically, cash generated from our operations along with cash reserves has been sufficient to fund our working capital requirements and, to some extent, our capital expenditures. Management believes cash flow from operations, cash on hand and amounts available under our Revolving Credit Note (defined below) are sufficient to fund operating and investing cash flow requirements, as well as obligations under the Geospace Notes.
Previous wording
Cash Flows. Net cash provided by operating activities was $16.6 million for the six months ended June 30, 2025, compared to net cash provided by operating activities of $7.8 million for the same period of 2024. This increase was primarily due to an increase in deferred revenue.
Current wording
Cash Flows. Net cash provided by operating activities was $11.9 million for the nine months ended September 30, 2025, compared to net cash provided by operating activities of $3.6 million for the same period of 2024. This increase was primarily due to an increase in deferred revenue.
Previous wording
Net cash used in investing activities was $0.3 million and $1.3 million for the six months ended June 30, 2025, and 2024, respectively. The decrease in cash used in investing activities between periods of $1.0 million was primarily due to a decrease in cash capital expenditures to $0.7 million for the first six months of 2025 compared to capital expenditures of $1.5 million for the same period of 2024.
Current wording
Net cash used in investing activities was $5.7 million and $0.9 million for the nine months ended September 30, 2025, and 2024, respectively. The increase in cash used in investing activities between periods of $4.8 million was primarily due to an increase in cash capital expenditure to $6.1 million for the first nine months of 2025 compared to capital expenditures of $1.6 million for the same period of 2024.
Previous wording
Net cash used in financing activities was $1.5 million for the six months ended June 30, 2025, and was primarily comprised of principal payments of $1.1 million and $0.4 million under our notes payable and finance leases, respectively. Net cash used in financing activities was
Current wording
Net cash used in financing activities was $2.5 million for the nine months ended September 30, 2025, and was primarily comprised of principal payments of $1.8 million and $0.6 million under our notes payable and finance leases, respectively. Net cash used in financing activities was $11.4 million for the nine months ended September 30, 2024, and was primarily comprised of dividends paid of $9.9 million, principal payments of $0.9 million and $0.5 million under our notes payable and finance leases, respectively.
Previous wording
For the six months ended June 30, 2025, we have spent $0.7 million on capital expenditures, primarily for rolling stock and maintenance capital requirements. Historically, we have funded most of our capital expenditures through cash flow from operations, cash reserves, equipment term loans and finance leases. Under the Purchase Agreement, we are funding our purchase of new single node channels utilizing vendor financing in the form of the Geospace Notes.
Current wording
Capital Expenditures. For the nine months ended September 30, 2025, we have spent $12.6 million on capital expenditures, primarily for new node channels and rolling stock and maintenance capital requirements. Historically, we have funded most of our capital expenditures through cash flow from operations, cash reserves, equipment term loans and finance leases. Under the Purchase Agreement, we are partially funding our purchase of new single node channels utilizing vendor financing in the form of the Geospace Notes.
Previous wording
Capital Resources. Historically, we have primarily relied on cash flows from operations, cash reserves and borrowings from commercial banks to fund our working capital requirements. In connection with the Purchase Agreement, we have agreed to the terms under the Geospace Notes.
Current wording
Capital Resources. Historically, we have primarily relied on cash flows from operations, cash reserves and borrowings from commercial banks to fund our capital requirements. In connection with the Equipment Purchase Agreement, we issued the Geospace Notes.
Previous wording
In connection with the Purchase Agreement, we have agreed to the terms under the Geospace Notes. We executed our first Note under the Geospace Notes on August 8, 2025, for approximately $3.6 million. We anticipate executing our second Note in November 2025 for approximately $10.9 million and executing our third Note in January 2026 for approximately $3.7 million. Each Note will be for a term of 36 months with a fixed interest rate of 8.75%.
Current wording
In connection with the Purchase Agreement, we have agreed to the terms under the Geospace Notes. We executed our first Note under the Geospace Notes on August 8, 2025, for approximately $3.6 million. We executed our second Note in September 2025 for approximately $3.9 million. Each Note will be for a term of 36 months with a fixed interest rate of 8.75% the combined monthly principal and interest payments due on these notes totals approximately $239,000. These notes are collateralized by both the equipment purchased and two owned properties in Midland that consist of a 61,402 square foot property used as a field office and a 6,600 square foot property used as an inventory and storage facility.
Previous wording
As of June 30, 2025, we have three outstanding short-term notes payable to finance companies for various insurance premiums totaling $0.8 million. As of December 31, 2024, we had one outstanding short-term note payable to a finance company for various insurance premiums totaling $168,000.
Current wording
As of September 30, 2025, we have two outstanding short-term notes payable to finance companies for various insurance premiums totaling $0.2 million. As of December 31, 2024, we had one outstanding short-term note payable to a finance company for various insurance premiums totaling $168,000.
Previous wording
In addition, we lease certain seismic recording equipment and vehicles under leases classified as finance leases. Our Condensed Consolidated Balance Sheet as of June 30, 2025 and December 31, 2024, include finance leases of $2.0 million and $2.4 million, respectively.
Current wording
In addition, we lease certain seismic recording equipment and vehicles under leases classified as finance leases. Our Condensed Consolidated Balance Sheet as of September 30, 2025 and December 31, 2024, include finance leases of $2.5 million and $2.4 million, respectively.
Previous wording
The aggregate maturities of finance leases as of June 30, 2025, are as follows (in thousands):
Current wording
The aggregate maturities of finance leases (net of imputed interest) as of September 30, 2025, are as follows (in thousands):
Previous wording
We believe that our capital resources, including our cash on hand, short-term investments and cash flow from operations will be adequate to meet our current operational needs. We believe that we will be able to finance our 2025 capital expenditures through cash flow from operations, borrowings from commercial lenders and the Geospace Notes. However, our ability to satisfy working capital requirements, meet debt repayment obligations, and fund future capital requirements will depend principally upon our future operating performance, which is subject to the risks inherent in our business, and will also depend on the extent to which the current economic climate adversely affects the ability of our customers, and/or potential customers, to promptly pay amounts owing to us under their service contracts with us.
Current wording
We believe that our capital resources, including our cash on hand, short-term investments, funds available from our Revolving Credit Note and cash flow from operations will be adequate to meet our current operational needs. We believe that we will be able to finance our 2025 capital expenditures through cash flow from operations, borrowings from commercial lenders and the Geospace Notes. However, our ability to satisfy working capital requirements, meet debt repayment obligations, and fund future capital requirements will depend principally upon our future operating performance, which is subject to the risks inherent in our business, and will also depend on the extent to which the current economic climate adversely affects the ability of our customers, and/or potential customers, to promptly pay amounts owing to us under their service contracts with us.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
commodity prices, as we have recently experienced, have affected, and will continue to affect, demand for our services and our results of operations, and such fluctuations continue to be the single most important factor affecting our business and results of operations.
Current report — wording carried from elsewhere
The aggregate maturities of notes payable for equipment purchases as of September 30, 2025, are as follows (in thousands):
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
statements wherever they appear in this Form 10-Q. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this paragraph. A discussion of these and other factors, including risks and uncertainties, is set forth in the Company’s Annual Report on Form 10-K that was filed with the SEC on April 2, 2025 and any subsequent Quarterly Reports on Form 10-Q filed with the SEC. The Company disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Previous report — wording carried elsewhere
*Canadian Fee Revenues.*Acquisition revenues for the second quarter of 2025 increased to $331,000 compared to $5,000 for the same period of 2024. Acquisition revenues for the first six months of 2025 increased 52.1% to 12.9 million compared to $8.5 million for the same
Previous report — wording carried elsewhere
We also understand that such data are used by investors to assess our performance. However, the term EBITDA is not defined under generally accepted accounting principles (“GAAP”), and EBITDA is not a measure of operating income or operating performance presented
Previous report — wording carried elsewhere
$11.1 million for the six months ended June 30, 2024, and was primarily comprised of dividends paid of $9.9 million, principal payments of $0.8 million and $0.3 million under our notes payable and finance leases, respectively.