Ranger Energy Services, Inc.

Previous wording

The following discussion and analysis should be read in conjunction with the historical financial statements and related notes included in Part I, Item 1. Financial Statements of this Quarterly Report on Form 10-Q (the “Quarterly Report”). This discussion contains “forward-looking statements” reflecting our current expectations, estimates and assumptions concerning events and financial trends that may affect our future operating results or financial position. Actual results and the timing of events may differ materially from those contained in these forward-looking statements due to a number of factors. Factors that could cause or contribute to such differences include, but are not limited to, market prices and demand for oil and natural gas, capital expenditures, economic and competitive conditions, regulatory changes and other uncertainties, as well as those factors discussed elsewhere in this report. Please read the Cautionary Statement Regarding Forward-Looking Statements. Also, please read the risk factors and other cautionary statements described under “Risk Factors” in this Quarterly Report and in our Annual Report. We assume no obligation to update any of these forward-looking statements except as required by law. Except as otherwise indicated or required by the context, all references in this Quarterly Report to the “Company,” “Ranger,” “Ranger, Inc.,” “we,” “us,” or “our” relate to Ranger Energy Services, Inc. and its consolidated subsidiaries.

Current wording

The following discussion and analysis should be read in conjunction with the historical financial statements and related notes included in Part I, Item 1. Financial Statements (Unaudited) of this Quarterly Report on Form 10-Q (the “Quarterly Report”). This discussion contains “forward-looking statements” reflecting our current expectations, estimates and assumptions concerning events and financial trends that may affect our future operating results or financial position. Actual results and the timing of events may differ materially from those contained in these forward-looking statements due to a number of factors. Factors that could cause or contribute to such differences include, but are not limited to, market prices and demand for oil and natural gas, capital expenditures, economic and competitive conditions, regulatory changes and other uncertainties, as well as those factors discussed elsewhere in this report. Please read the Cautionary Statement Regarding Forward-Looking Statements. Also, please read the risk factors and other cautionary statements described under “Risk Factors” in this Quarterly Report and in our Annual Report. We assume no obligation to update any of these forward-looking statements except as required by law. Except as otherwise indicated or required by the context, all references in this Quarterly Report to the “Company,” “Ranger,” “Ranger, Inc.,” “we,” “us,” or “our” relate to Ranger Energy Services, Inc. and its consolidated subsidiaries.

Previous wording

Our service offerings consist of well completion support, workover, well maintenance, wireline, other complementary services, as well as well installation, commissioning and operating of modular equipment, which are conducted in three reportable segments, as follows:

Current wording

Our service offerings consist of well completion support, workover, well maintenance, wireline, and other complementary services, as well as well installation, commissioning, and operation of modular equipment, which are conducted in three reportable segments, as follows:

Previous wording

For additional financial information about our segments, please see “Item 1. Financial Information—Note 16 — Segment Reporting.”

Current wording

For additional financial information about our segments, please see “Item 1. Financial Statements (Unaudited)—Note 17 — Segment Reporting.”

Previous wording

Market conditions across the oilfield services sector remained mixed during the first quarter of 2026. While recent geopolitical events have increased volatility in commodity prices, the Company continues to expect customer activity to be shaped by operators’ longer-term capital discipline, basin-level economics and production priorities rather than short-term price movements alone. Our production-oriented service lines continue to support relative resilience in our core business, although the Company is more optimistic with respect to customer spending trends, industry competition and the potential for activity adjustments if commodity supply remains disrupted by current geopolitical events. Over the longer term, if these disruptions persist, there is an increased likelihood of an ultimate demand weakening which would also have the potential to affect North American oil and gas activity.

Current wording

Market conditions across the oilfield services sector were mixed during the second quarter of 2026. Geopolitical developments and disruptions to global oil supply contributed to elevated commodity prices and continued market volatility. The Company expects customer activity to continue to be shaped primarily by operators’ longer-term capital discipline, basin-level economics and production priorities rather than short-term commodity price movements alone. Our production-oriented service lines continue to support relative resilience in our core business. Although elevated commodity prices and potential supply constraints may support customer activity in the near term, the timing and extent of any corresponding changes in customer spending in the mid to longer term is unclear. The longer global oil and gas supply chain disruptions persist, there is an increased likelihood of supply shortages which could drive up commodity prices further. Elevated prices may cause ultimate demand weakening which would have the potential to affect North American oil and gas activity.

Previous wording

The Company continues to monitor macroeconomic and industry developments that may affect demand for its services. The U.S. Energy Information Administration (“EIA”) noted in its March 2026 Short Term Energy Outlook that Brent crude oil prices are expected to remain above $95 per barrel in the near term before declining below $80 per barrel in the third quarter of 2026 and averaging approximately $70 per barrel in the fourth quarter of 2026, as growing oil inventories begin to weigh on prices. The EIA also forecast U.S. crude oil production to average 13.6 million barrels per day in 2026.

Current wording

The Company continues to monitor macroeconomic and industry developments that may affect demand for its services. During the second quarter of 2026, the West Texas Intermediate (“WTI”) crude oil spot price averaged approximately $96 per barrel, compared to approximately $72 per barrel during the first quarter of 2026 and approximately $65 per barrel during the second quarter of 2025. For the six months ended June 30, 2026, the WTI crude oil spot price averaged approximately $84 per barrel, compared to approximately $68 per barrel during the same period in 2025. The U.S. Energy Information Administration (“EIA”) noted in its July 2026 Short-Term Energy Outlook that WTI crude oil prices are expected to average approximately

Previous wording

Although near-term commodity prices have been impacted by recent disruptions in the Middle East, the Company believes customers will continue to prioritize efficient production from existing wells and disciplined development activity. As a provider of production- and completion-oriented well services with solely domestic operations, we believe our service offering is positioned to benefit from customer demand tied to maintaining and enhancing production. However, prolonged weakness in oil prices, sustained inflationary pressures, increased competitive pricing or reductions in customer capital spending could adversely affect utilization, pricing and financial results, particularly in service lines more directly exposed to discretionary completions activity.

Current wording

Although commodity prices have been impacted by recent disruptions in the Middle East, the Company believes customers will continue to prioritize efficient production from existing wells and disciplined development activity. As a provider of production- and completion-oriented well services with solely domestic operations, we believe our service offering is positioned to benefit from customer demand tied to maintaining and enhancing production. However, reductions in customer capital spending, weakening oil demand, sustained cost inflation or increased competitive pricing pressures could adversely affect utilization, pricing and financial results, particularly in service lines more directly exposed to discretionary completions activity.

Previous wording

Following the acquisition of AWS in November 2025, the Company entered 2026 with a larger presence in the Permian Basin and an operating footprint more heavily concentrated in this basin than in prior operating periods. AWS complements the Company’s existing service offerings, and the Company expects the acquisition to contribute to improved financial performance in 2026. During the remainder of the year, the Company is focused on integrating the AWS operations into its business, maintaining service quality for customers and preserving liquidity and balance sheet flexibility.

Current wording

Following the acquisition of AWS in November 2025, the Company has a larger presence in the Permian Basin and an operating footprint more heavily concentrated in this basin than in prior operating periods. AWS complements the Company’s existing service offerings and contributed to the Company’s financial results during the first half of 2026. During the remainder of the year, the Company remains focused on continuing to realize the expected benefits of the acquisition, maintaining service quality for customers and preserving liquidity and balance sheet flexibility.

Previous wording

The Company also continues to monitor longer-term trends that may influence demand for its services, including ongoing regulatory focus on emissions and flaring, the pace of natural gas infrastructure development and changing customer demand for field-level gas processing solutions. While the Company’s direct exposure to natural gas markets is more limited than its exposure to crude oil markets, these factors could provide incremental support for certain of the Company’s service offerings.

Current wording

The Company also continues to monitor longer-term trends that may influence demand for its services, including ongoing regulatory focus on emissions and flaring, the pace of natural gas infrastructure development and data center power demands and also changing customer demand for field-level gas processing solutions. While the Company’s direct exposure to natural gas markets is more limited than its exposure to crude oil markets, these factors could provide incremental support for certain of the Company’s service offerings.

Previous wording

Rig hours and stage counts, as it relates to our High Specification Rigs and parts of our Wireline Services segments, respectively, are important indicators of our activity levels and profitability. Rig hours represent the aggregate number of hours that our well service rigs actively worked. Stage counts represent the number of completed stages during the periods presented for the completion service line within our Wireline Services segment. Generally, during the period our services are being provided, our customers are billed on an hourly basis for our high specification rig services or, as it relates to our wireline services, customers are billed upon the completion of the well, on a monthly basis, or on a per job basis. The rates for which the customer is billed is generally predetermined based upon a contractual agreement.

Current wording

Rig hours and stage counts, as they relate to our High Specification Rigs and parts of our Wireline Services segments, respectively, are important indicators of our activity levels and profitability. Rig hours represent the aggregate number of hours that our well service rigs actively worked. Stage counts represent the number of completed stages during the periods presented for the completion service line within our Wireline Services segment. Generally, during the period in which our services are provided, our customers are billed on an hourly basis for our high specification rigs services or, as it relates to our wireline services, customers are billed upon the completion of the well, on a monthly basis, or on a per job basis. The rates at which the customers are billed are generally predetermined based upon a contractual agreement.

Previous wording

General & Administrative. General and administrative expenses are corporate in nature and are included within Other. These costs include the majority of centrally-located company management and administrative personnel and are not attributable to any of our lines of businesses nor reporting segments.

Current wording

General & Administrative. General and administrative expenses are corporate in nature and are included within Other. These costs include the majority of centrally-located company management and administrative personnel and are not attributable to any of our lines of business or reporting segments.

Previous wording

We analyze our operating income or loss by segment, which we have defined as revenue less cost of services and depreciation expense. We believe this is a key financial metric as it provides insight on profitability and operational performance based on the historical cost basis of our assets.

Current wording

We analyze our operating income or loss by segment, which we have defined as revenue less cost of services and depreciation expense. We believe this is a key financial metric as it provides insight into profitability and operational performance based on the historical cost basis of our assets.

Previous wording

We view Adjusted EBITDA, which is a non‑GAAP financial measure, as an important indicator of performance. The CODM primarily uses Adjusted EBITDA to assess segment profitability and make resource allocation decisions. We define Adjusted EBITDA as net income or loss before net interest expense, income tax expense, depreciation and amortization, equity-based compensation, acquisition related costs, severance and reorganization costs, gain or loss on sale of assets, significant and unusual legal fees and settlements, impairment of assets, adjustment to contingent consideration, and certain other non‑cash and certain other items that we do not view as indicative of our ongoing performance. See “—Results of Operations” and “—Note Regarding Non‑GAAP Financial Measure” for more information and reconciliations of net income (loss) to Adjusted EBITDA, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.

Current wording

We view Adjusted EBITDA, which is a non‑GAAP financial measure, as an important indicator of performance. The CODM primarily uses Adjusted EBITDA to assess segment profitability and make resource allocation decisions. We define Adjusted EBITDA as net income or loss before net interest expense, income tax expense, depreciation and amortization, equity-based compensation, acquisition related costs, severance and reorganization costs, gain on sale of assets, significant and unusual legal fees and settlements, impairment of assets, employee retention credit, adjustment to contingent consideration, and certain other non‑cash and certain other items that we do not view as indicative of our ongoing performance. See “—Results of Operations” and “—Note Regarding Non‑GAAP Financial Measure” for more information and reconciliations of net income (loss) to Adjusted EBITDA, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.

Previous wording

Revenue. Revenue for the three months ended March 31, 2026 increased $23.9 million, or 18%, to $159.1 million from $135.2 million for the three months ended March 31, 2025. The change in revenue by segment was as follows:

Current wording

Revenue. Revenue for the three months ended June 30, 2026 increased $35.9 million, or 26%, to $176.5 million from $140.6 million for the three months ended June 30, 2025. The change in revenue by segment was as follows:

Previous wording

Wireline Services. Wireline Services revenue for the three months ended March 31, 2026 decreased $6.6 million, or 38%, to $10.6 million from $17.2 million for the three months ended March 31, 2025. The decreased revenue was primarily attributable to a decrease in demand as completion services revenue decreased by $3.2 million, where there was a 47% decrease in completed stage counts to 740 for the three months ended March 31, 2026 from 1,400 for the three months ended March 31, 2025. This is coupled by a decrease in production and pump down services revenue by $2.3 million and $1.1 million, respectively.

Current wording

Wireline Services. Wireline Services revenue for the three months ended June 30, 2026 decreased $3.5 million, or 16%, to $18.6 million from $22.1 million for the three months ended June 30, 2025. The decreased revenue was primarily attributable to a $2.4 million decrease in production services revenue and a $1.5 million decrease in completion services revenue, partially offset by a $0.4 million increase in pump down services revenue. Completion services revenue decreased despite a 2% increase in completed stage counts to 2,560 for the three months ended June 30, 2026 from 2,500 for the three months ended June 30, 2025, primarily reflecting a change in customer and job mix.

Previous wording

Cost of services (exclusive of depreciation and amortization). Cost of services for the three months ended March 31, 2026 increased $15.2 million, or 13%, to $130.6 million from $115.4 million for the three months ended March 31, 2025. As a percentage of revenue, cost of services was 82% and 85% for the three months ended March 31, 2026 and 2025, respectively. The change in cost of services by segment was as follows:

Current wording

Cost of services (exclusive of depreciation and amortization). Cost of services for the three months ended June 30, 2026 increased $27.7 million, or 24%, to $142.7 million from $115.0 million for the three months ended June 30, 2025. As a percentage of revenue, cost of services was 81% and 82% for the three months ended June 30, 2026 and 2025, respectively. The change in cost of services by segment was as follows:

Previous wording

Wireline Services. Wireline Services cost of services for the three months ended March 31, 2026 decreased $9.6 million, or 47%, to $10.7 million from $20.3 million for the three months ended March 31, 2025. The decrease is primarily attributable to a decrease in costs from the completion services line by approximately $4.2 million as the Company reorganized this service line in response to lower operation activity. Additionally, costs decreased within production and pump down services by $3.6 million and $1.8 million, respectively. As a percentage of Wireline Services revenue, cost of services decreased from 118% for the three months ended March 31, 2025 to 101% for the three months ended March 31, 2026. These cost reductions reflect the Company’s efforts to align the Wireline Services cost structure with current activity levels, which contributed to improved profitability despite continued pressure on revenue.

Current wording

Wireline Services. Wireline Services cost of services for the three months ended June 30, 2026 decreased $5.5 million, or 27%, to $15.2 million from $20.7 million for the three months ended June 30, 2025. The decrease is primarily attributable to a decrease in costs from the completion services line by approximately $2.4 million as the Company reorganized this service line in response to lower operating activity. Additionally, costs decreased within production and pump down services by $2.2 million and $0.9 million, respectively. As a percentage of Wireline Services revenue, cost of services decreased from 94% for the three months ended June 30, 2025 to 82% for the three months ended June 30, 2026. These cost reductions reflect the Company’s efforts to align the Wireline Services cost structure with current activity levels, which contributed to improved profitability despite continued pressure on revenue.

Previous wording

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services cost of services for the three months ended March 31, 2026 increased $9.5 million, or 38%, to $34.5 million from $25.0 million for the three months ended March 31, 2025. The increase is primarily attributable to increased employee labor and repair and maintenance costs which amounted to $3.2 million and $1.6 million, respectively. These increases were driven by higher activity levels and the inclusion of $11.3 million of costs related to operations acquired in the AWS Acquisition. As a percentage of Processing Solutions and Ancillary Services revenue, cost of services was 82% for the three months ended March 31, 2026, consistent with 82% for the three months ended March 31, 2025.

Current wording

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services cost of services for the three months ended June 30, 2026 increased $8.9 million, or 35%, to $34.5 million from $25.6 million for the three months ended June 30, 2025. The increase is primarily attributable to increased employee labor and repair and maintenance costs which amounted to $3.1 million and $1.4 million, respectively. These increases were driven by higher activity levels and the inclusion of $6.8 million of costs related to operations acquired in the AWS Acquisition. As a percentage of Processing Solutions and Ancillary Services revenue, cost of services improved from 80% for the three months ended June 30, 2025 to 78% for the three months ended June 30, 2026.

Previous wording

Depreciation and Amortization. Depreciation and amortization for the three months ended March 31, 2026 increased $5.6 million, or 53%, to $16.2 million from $10.6 million for the three months ended March 31, 2025. The increase is primarily due to the inclusion of depreciation associated with assets acquired in the AWS Acquisition.

Current wording

Depreciation and Amortization. Depreciation and amortization for the three months ended June 30, 2026 increased $4.7 million, or 43%, to $15.6 million from $10.9 million for the three months ended June 30, 2025. The increase is primarily due to the inclusion of depreciation associated with assets acquired in the AWS Acquisition.

Previous wording

Interest Expense, net. Interest expense, net increased from $0.5 million for the three months ended March 31, 2025 to $0.8 million for the three months ended March 31, 2026. The increase to net interest expense was attributable to the increased principal balance on our Wells Fargo Revolving Credit Facility.

Current wording

Interest Expense, net. Interest expense, net for the three months ended June 30, 2026 increased $1.0 million, or 1000%, to $1.1 million from $0.1 million for the three months ended June 30, 2025. The increase to net interest expense was attributable to the increased principal balance on our Wells Fargo Revolving Credit Facility.

Previous wording

Income Tax Expense. Income tax expense for the three months ended March 31, 2026 increased $1.1 million, or 1100%, to $1.0 million compared to an income tax benefit of $0.1 million for three months ended March 31, 2025. The increase in tax expense resulted from an increase in profit before tax when compared to the prior period.

Current wording

Income Tax Expense. Income tax expense for the three months ended June 30, 2026 increased $0.6 million, or 21%, to $3.4 million compared to $2.8 million for the three months ended June 30, 2025. The increase in tax expense resulted from higher taxable income and an increase in non-deductible expenses.

Previous wording

High Specification Rigs. High Specification Rigs revenue for the three months ended March 31, 2026 increased $18.7 million, or 21%, to $106.2 million from $87.5 million for the three months ended March 31, 2025. The increase in revenue reflects revenue growth of $26.3 million related to the AWS acquisition and included a corresponding increase in total rig hours to 145,400 hours for the three months ended March 31, 2026 from 115,700 hours reported for three months ended March 31, 2025.

Current wording

High Specification Rigs. High Specification Rigs revenue for the six months ended June 30, 2026 increased $48.7 million, or 28%, to $222.5 million from $173.8 million for the six months ended June 30, 2025. The increase in revenue reflects revenue growth of $59.5 million related to the AWS Acquisition and included a corresponding increase in the average revenue per rig hour by 2% to $762 from $747 for the six months ended June 30, 2025, coupled with a 26% increase in total rig hours to 292,200 for the six months ended June 30, 2026 from 232,700 for the six months ended June 30, 2025.

Previous wording

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services revenue for the three months ended March 31, 2026 increased $11.8 million, or 39%, to $42.3 million from $30.5 million for the three months ended March 31, 2025. The increase reflects higher activity in other Ancillary Services lines with revenue growth of $13.4 million related to the AWS acquisition.

Current wording

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services revenue for the six months ended June 30, 2026 increased $21.2 million, or 34%, to $83.9 million from $62.7 million for the six months ended June 30, 2025. The increase reflects higher activity in other Ancillary Services lines with revenue growth of $19.9 million related to the AWS Acquisition.

Previous wording

Net Income. Net income for the three months ended March 31, 2026 increased $2.4 million, or 400%, to $3.0 million from $0.6 million for the three months ended March 31, 2025. The increase in net income was driven by the AWS Acquisition.

Current wording

Net Income. Net income for the six months ended June 30, 2026 increased $2.0 million, or 25%, to $9.9 million from $7.9 million for the six months ended June 30, 2025. The increase in net income was primarily driven by incremental operating income from the AWS Acquisition, partially offset by lower income resulting from activity declines in the Wireline Services segment.

Previous wording

Adjusted EBITDA is not a financial measure determined in accordance with U.S. GAAP. We define Adjusted EBITDA as net income or loss before net interest expense, income tax expense, depreciation and amortization, equity-based compensation, acquisition related costs, severance and reorganization costs, gain or loss on sale of assets, significant and unusual legal fees and settlements, impairment of assets, adjustment to contingent consideration, and certain other non-cash and certain other items that we do not view as indicative of our ongoing performance.

Current wording

Adjusted EBITDA is not a financial measure determined in accordance with U.S. GAAP. We define Adjusted EBITDA as net income or loss before net interest expense, income tax expense, depreciation and amortization, equity-based compensation, acquisition related costs, severance and reorganization costs, gain on sale of assets, significant and unusual legal fees and settlements, impairment of assets, employee retention credit, adjustment to contingent consideration, and certain other non-cash and certain other items that we do not view as indicative of our ongoing performance.

Previous wording

The following is an analysis of our Adjusted EBITDA. See “Item 1. Financial Information—Note 16—Segment Reporting” and “—Results of Operations” for further details (in millions).

Current wording

The following is an analysis of our Adjusted EBITDA. See “Item 1. Financial Statements (Unaudited)—Note 17 — Segment Reporting” and “—Results of Operations” for further details (in millions).

Previous wording

Adjusted EBITDA for the three months ended March 31, 2026 increased $7.8 million to $23.3 million from $15.5 million for the three months ended March 31, 2025. The change by segment was as follows:

Current wording

Adjusted EBITDA for the three months ended June 30, 2026 increased $8.0 million to $28.6 million from $20.6 million for the three months ended June 30, 2025. The change by segment was as follows:

Previous wording

Wireline Services. Wireline Services Adjusted EBITDA for the three months ended March 31, 2026 increased $2.2 million to a loss of $0.1 million from a loss of $2.3 million for the three months ended March 31, 2025, due to a decrease in cost of services of $9.6 million, partially offset by a corresponding decline in revenue of $6.6 million.

Current wording

Wireline Services. Wireline Services Adjusted EBITDA for the three months ended June 30, 2026 increased $2.0 million to $3.6 million from $1.6 million for the three months ended June 30, 2025, due to a decrease in cost of services of $5.5 million, partially offset by a corresponding decline in revenue of $3.5 million.

Previous wording

Other. Other Adjusted EBITDA for the three months ended March 31, 2026 increased $0.8 million to a loss of $6.0 million from a loss of $5.2 million for the three months ended March 31, 2025. The balances included in Other reflect other general and administrative costs, which are not directly attributable to High Specification Rigs, Wireline Services or Processing Solutions and Ancillary Services.

Current wording

Other. Other Adjusted EBITDA for the three months ended June 30, 2026 increased $0.4 million to a loss of $5.6 million from a loss of $5.2 million for the three months ended June 30, 2025. The balances included in Other reflect other general and administrative costs, which are not directly attributable to High Specification Rigs, Wireline Services or Processing Solutions and Ancillary Services.

Previous wording

We require capital to fund ongoing operations, including maintenance expenditures on our existing fleet and equipment, organic growth initiatives, investments and acquisitions. Our primary sources of liquidity have historically been cash generated from operations and borrowings under our credit facilities. As of March 31, 2026, we had total liquidity of $42.5 million, consisting of $6.9 million of cash on hand and availability under our Wells Fargo Revolving Credit Facility of $35.6 million. Under the Wells Fargo Revolving Credit Facility, the total loan capacity was $66.5 million, net of $4.2 million of Letters of Credit open under the facility. This compares to the Company’s available borrowing capacity under the Wells Fargo Revolving Credit Facility of $71.3 million as of March 31, 2025 and $71.2 million as of December 31, 2025. We strive to maintain financial flexibility and proactively monitor potential capital sources to meet our investment and target liquidity requirements that permit us to manage the cyclicality associated with our business. We currently expect to have sufficient funds to meet the Company’s short and long term liquidity requirements and comply with our covenants of our debt agreements. Based upon current levels of operations and anticipated growth, we expect that cash generated from operations, combined with borrowings under our credit facilities, including our Wells Fargo Revolving Credit Facility, will be sufficient to meet our capital expenditure, working capital and debt service requirements for at least the next twelve months and the foreseeable future. For further details, see “— Debt Agreements.”

Current wording

We require capital to fund ongoing operations, including maintenance expenditures on our existing fleet and equipment, organic growth initiatives, investments and acquisitions. Our primary sources of liquidity have historically been cash generated from operations and borrowings under our credit facilities. As of June 30, 2026, we had total liquidity of $61.3 million, consisting of $4.2 million of cash on hand and availability under our Wells Fargo Revolving Credit Facility of $57.1 million. Under the Wells Fargo Revolving Credit Facility, the total loan capacity was $75.0 million, net of $4.2 million of Letters of Credit open under the facility. This compares to the Company’s available borrowing capacity under the Wells Fargo Revolving Credit Facility of $71.2 million as of June 30, 2025 and $57.4 million as of December 31, 2025. We strive to maintain financial flexibility and proactively monitor potential capital sources to meet our investment and target liquidity requirements that permit us to manage the cyclicality associated with our business. We currently expect to have sufficient funds to meet the Company’s short and long term liquidity requirements and comply with our covenants of our debt agreements. Based upon current levels of operations and anticipated growth, we expect that cash generated from operations, combined with borrowings under our credit facilities, including our Wells Fargo Revolving Credit Facility, will be sufficient to meet our capital expenditure, working capital and debt service requirements for at least the next twelve months and the foreseeable future. For further details, see “— Debt Agreements.”

Previous wording

Net cash from operating activities decreased $14.0 million to $3.4 million cash of used in operating activities for three months ended March 31, 2026 compared to $10.6 million of cash provided by operating activities for the three months ended March 31, 2025. The change was primarily driven by a $35.7 million decrease in cash generated from working capital, which was a cash outflow of $39.6 million for the three months ended March 31, 2026, compared to $3.9 million for the three months ended March 31, 2025, primarily due to lower collections activity in the current quarter and early payments on accounts payable in connection with the planned transition of the legacy AWS entity to the Ranger ERP system.

Current wording

Net cash from operating activities decreased $8.3 million to $23.0 million for the six months ended June 30, 2026 compared to $31.3 million for the six months ended June 30, 2025. The change was primarily driven by a $34.0 million decrease in cash generated from working capital, which was a cash outflow of $40.1 million for the six months ended June 30, 2026, compared to $6.1 million for the six months ended June 30, 2025, primarily due to growth in accounts receivable, resulting from continued customer payment delays.

Previous wording

Net cash used in investing activities increased $11.2 million to $17.3 million for three months ended March 31, 2026 compared to $6.1 million for the three months ended March 31, 2025. The change in cash flows used investing activities is largely attributable to increases in construction in progress for the build out of ECHO hybrid rigs relative to those that occurred during the three months ended March 31, 2025.

Current wording

Net cash used in investing activities increased $11.8 million to $23.4 million for the six months ended June 30, 2026 compared to $11.6 million for the six months ended June 30, 2025. The change in cash flows used in investing activities is largely attributable to increases in construction in progress for the build out of ECHO hybrid rigs relative to those that occurred during the six months ended June 30, 2025.

Previous wording

Net cash from financing activities increased $22.4 million to $17.3 million of cash provided by financing activities for three months ended March 31, 2026 compared to $5.1 million of cash used in financing activities for the three months ended March 31, 2025. The change was primarily driven by borrowings on the Wells Fargo Revolving Credit Facility to cover working capital and payments unique to the first quarter such as bonus and incremental payroll taxes.

Current wording

Net cash used in financing activities decreased $6.0 million to $5.7 million for the six months ended June 30, 2026 compared to $11.7 million for the six months ended June 30, 2025. The change was primarily driven by borrowings on the Wells Fargo Revolving Credit Facility to cover working capital, partially offset by cash used for share repurchases and payments on finance lease obligations.

Previous wording

During the three months ended March 31, 2026, the Company added fixed assets of $1.3 million primarily related to finance leased assets across all operating segments.

Current wording

During the six months ended June 30, 2026, the Company added fixed assets of $3.8 million and $1.4 million primarily related to finance leased assets and asset trades, respectively, across all operating segments.

Previous wording

Our working capital, which we define as total current assets less total current liabilities, increased to $63.1 million as of March 31, 2026, compared to $52.0 million as of December 31, 2025. The increase was primarily driven by a higher accounts receivable balance due to the timing of customer collections, partially offset by borrowings on our Wells Fargo Revolving Credit Facility.

Current wording

Our working capital, which we define as total current assets less total current liabilities, increased to $73.3 million as of June 30, 2026, compared to $52.0 million as of December 31, 2025. The increase was primarily driven by a higher balances in accounts receivable and contract assets resulting from the timing of customer collections, customer billing blackout periods at year end and system transitions related to AWS integration activities, partially offset by borrowings on our Wells Fargo Revolving Credit Facility.

Previous wording

The Company has up to $5.0 million available under the Wells Fargo Revolving Credit Facility for letters of credit, subject to assignment. As of March 31, 2026, Letters of Credit outstanding totaled $4.2 million. These Letters of Credit are primarily to be utilized for working capital, general corporate purposes, and to support the Company’s insurance programs, and have been amended periodically in connection with the annual insurance renewals. The interest rate applicable to the Letters of Credit was approximately 2.0% for the month ended March 31, 2026.

Current wording

The Company has up to $5.0 million available under the Wells Fargo Revolving Credit Facility for letters of credit, subject to assignment. As of June 30, 2026, Letters of Credit outstanding totaled $4.2 million. These Letters of Credit are primarily to be utilized for working capital, general corporate purposes, and to support the Company’s insurance programs, and have been amended periodically in connection with the annual insurance renewals. The interest rate applicable to the Letters of Credit was approximately 1.8% for the month ended June 30, 2026.

Previous wording

The Wells Fargo Revolving Credit Facility is available to fund working capital and other general corporate expenses and for other permitted uses, including the financing of permitted investments and restricted payments, such as dividends and share repurchases. The Wells Fargo Revolving Credit Facility is subject to a borrowing base that is calculated based upon a percentage of the Company’s eligible accounts receivable and eligible unbilled revenue, less certain reserves. The Company’s eligible accounts receivable serve as collateral for the borrowings under the Wells Fargo Revolving Credit Facility, which is scheduled to mature on May 31, 2028. The Wells Fargo Revolving Credit Facility includes an acceleration clause and cash dominion provisions under certain circumstances that permits the administrative agent to sweep cash daily from certain bank accounts into an account of the administrative agent to repay the Company’s obligations under the Wells Fargo Revolving Credit Facility. The borrowings of the Wells Fargo Revolving Credit Facility, therefore, are classified as a current liability on the Condensed Consolidated Balance Sheets.

Current wording

The Wells Fargo Revolving Credit Facility is available to fund working capital and other general corporate expenses and for other permitted uses, including the financing of permitted investments and restricted payments, such as dividends and share repurchases. The Wells Fargo Revolving Credit Facility is subject to a borrowing base that is calculated based upon a percentage of the Company’s eligible accounts receivable and eligible unbilled revenue, less certain reserves. The Company’s eligible accounts receivable serve as collateral for the borrowings under the Wells Fargo Revolving Credit Facility, which is scheduled to mature on May 31, 2028. The Wells Fargo Revolving Credit Facility includes an acceleration clause and cash dominion provisions under certain circumstances that permit the administrative agent to sweep cash daily from certain bank accounts into an account of the administrative agent to repay the Company’s obligations under the Wells Fargo Revolving Credit Facility. The borrowings of the Wells Fargo Revolving Credit Facility, therefore, are classified as a current liability on the Condensed Consolidated Balance Sheets.

Previous wording

Under the Wells Fargo Revolving Credit Facility, the total loan capacity was $66.5 million, which was based on a borrowing base certificate in effect as of March 31, 2026. On June 17, 2024, the Company entered into the First Amendment to the Wells Fargo Revolving Credit Facility, which allows for a percentage of unbilled revenue to be included in the calculation of the borrowing base. The Company had outstanding borrowings of $26.7 million under the Wells Fargo Revolving Credit Facility as of March 31, 2026 and had $4.2 million in Letters of Credit open under the facility, leaving a residual $35.6 million available for borrowings as of March 31, 2026. Long-term debt, current portion on the Condensed Consolidated Balance Sheets also included other immaterial financing obligations, including vehicle-related financing arrangements. Borrowings under the Wells Fargo Revolving Credit Facility bear interest at a rate per annum ranging from 1.75% to 2.25% in excess of SOFR and 0.75% to 1.25% in excess of the Base Rate, dependent on the average excess availability. The weighted average interest rate for the loan was approximately 5.8% for the three months ended March 31, 2026. As of March 31, 2026, the Company’s borrowing base did not include any accounts receivable or unbilled revenue from the acquisition. The Company continues to evaluate the inclusion of such balances under the Credit Agreement as the acquired business is further integrated.

Current wording

Under the Wells Fargo Revolving Credit Facility, the total loan capacity was $75.0 million, which was based on a borrowing base certificate in effect as of June 30, 2026. On June 17, 2024, the Company entered into the First Amendment to the Wells Fargo Revolving Credit Facility, which allows for a percentage of unbilled revenue to be included in the calculation of the borrowing base. The Company had outstanding borrowings of $13.7 million under the Wells Fargo Revolving Credit Facility as of June 30, 2026 and had $4.2 million in Letters of Credit open under the facility, leaving a residual $57.1 million available for borrowings as of June 30, 2026. Long-term debt, current portion on the Condensed Consolidated Balance Sheets also included other immaterial financing obligations, including vehicle-related financing arrangements. Borrowings under the Wells Fargo Revolving Credit Facility bear interest at a rate per annum ranging from 1.75% to 2.25% in excess of SOFR and 0.75% to 1.25% in excess of the Base Rate, dependent on the average excess availability. The weighted average interest rate for the loan was approximately 5.7% for the six months ended June 30, 2026. As of June 30, 2026, eligible accounts receivable and unbilled revenue from the AWS Acquisition were included in the Company’s borrowing base under the Credit Agreement.

Previous wording

In March 2023, the Company initially announced a share repurchase program authorizing the Company to purchase up to $35.0 million of Class A Common Stock that could be utilized for up to 36 months, and may be accelerated, suspended or discontinued at any time without notice. On March 4, 2024, the Company announced that the Board of Directors approved for an additional share repurchase program authorization of $50.0 million, bringing the total share repurchase program authorization to $85.0 million in aggregate value. During the three months ended March 31, 2026, the Company repurchased 38,700 shares of the Company’s Class A Common Stock for a total of $0.5 million, net of tax on the open market. As of March 31, 2026, an aggregate of 4,358,900 shares of Class A Common Stock were purchased for a total of $47.7 million, net of tax since the inception of the repurchase program announced on March 7, 2023 and $37.6 million remained available under the share repurchase program.

Current wording

In March 2023, the Company initially announced a share repurchase program authorizing the Company to purchase up to $35.0 million of Class A Common Stock that could be utilized for up to 36 months, and may be accelerated, suspended or discontinued at any time without notice. On March 4, 2024, the Company announced that the Board of Directors approved an additional share repurchase program authorization of $50.0 million, bringing the total share repurchase program authorization to $85.0 million in aggregate value. During the six months ended June 30, 2026, the Company repurchased 321,600 shares of the Company’s Class A Common Stock for a total of $5.0 million, net of tax on the open market. As of June 30, 2026, an aggregate of 4,641,800 shares of Class A Common Stock were purchased for a total of $52.1 million, net of tax since the inception of the repurchase program announced on March 7, 2023 and $33.1 million remained available under the share repurchase program.

Previous wording

In 2023, the Board of Directors approved the initiation of a quarterly dividend of $0.05 per share. The Company increased the quarterly dividend to $0.06 per share in 2025. The Company believes that a share repurchase and dividend framework provides the best overall value creation potential for investors. As of March 31, 2026, $1.4 million of dividends were declared and unpaid, and were included in Other current liabilities in the Condensed Consolidated Balance Sheet.

Current wording

In 2023, the Board of Directors approved the initiation of a quarterly dividend of $0.05 per share. The Company increased the quarterly dividend to $0.06 per share in 2025. The Company believes that a share repurchase and dividend framework provides the best overall value creation potential for investors. The Company paid $3.0 million to stockholders for the six months ended June 30, 2026.

Previous wording

The amount and timing of all future dividend payments, if any, are subject to the discretion of the Board of Directors and will depend upon business conditions, results of operations, financial condition, terms of our debt agreements and other factors. There can be no assurance that we will pay a dividend in the future.

Current wording

The amount and timing of all future dividend payments, if any, are subject to the discretion of the Board of Directors and will depend upon business conditions, results of operations, financial condition, terms of the Company’s debt agreements and other factors. There can be no assurance that we will pay a dividend in the future.