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 below and 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,” “we,” “us,” or “our” relate to Ranger Energy Services, Inc. (“Ranger, 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 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

•Processing Solutions and Ancillary Services. Provides complimentary services often utilized in conjunction with our High Specification Rigs and Wireline Services segments. These services primarily include equipment rentals, coil tubing, plug and abandonment, snubbing, and processing solutions.

Current wording

•Processing Solutions and Ancillary Services. Provides complimentary services often utilized in conjunction with our High Specification Rigs and Wireline Services segments. These services primarily include equipment rentals, coil tubing, plug and abandonment, and processing solutions.

Previous wording

The Company believes current geopolitical events will continue to have an impact on our industry, potentially including the results of the U.S. election cycle in the fourth quarter. Considering the rapidly evolving events and the interplay of supply and demand within oil and gas commodities sector, numerous unknown factors could materially impact our operations. These events have already, and are likely to continue, influencing commodity prices, causing volatility that could have a material effect on our earnings, cash flows, and financial condition.

Current wording

The Company believes current geopolitical events will continue to have an impact on our industry, including the impact of the current administration’s tariff policy on broader macroeconomic growth and associated energy demand. We are also monitoring the supply side, as the potential for increased production from OPEC+ could have an impact on domestic production levels especially among smaller producers. Considering the rapidly evolving events and the interplay of supply and demand within oil and gas commodities sector, numerous unknown factors could materially impact our operations. These events have already, and are likely to continue, influencing commodity prices, causing volatility that could have a material effect on our earnings, cash flows, and financial condition.

Previous wording

Cost of Services. The primary costs associated with our cost of services are related to personnel expenses, lease costs, repairs and maintenance of our fixed assets and, additionally, as it relates to our Wireline Services segment, perforating and gun costs. A significant portion of these expenses are variable, and therefore typically managed based on industry conditions and demand for our services. Further, there is generally a correlation between our revenue generated and personnel and repairs and maintenance costs, which are dependent upon the operational activity.

Current wording

Cost of Services. The primary costs associated with our cost of services are related to personnel expenses and repairs and maintenance of our fixed assets. A significant portion of these expenses are variable, and therefore typically managed based on industry conditions and demand for our services. Further, there is generally a correlation between our revenue generated and personnel and repairs and maintenance costs, which are dependent upon the operational activity.

Previous wording

Personnel costs associated with our operational employees represent the most significant cost of our business. A substantial portion of our labor costs is attributable to our field crews and is partly variable based on the requirements of specific customers. A key component of personnel costs relates to the ongoing training of our employees, which improves safety rates and reduces attrition.

Current wording

Personnel costs associated with our operational employees represent the most significant cost of our business. A substantial portion of our labor costs is attributable to our field crews and is partly variable based on the requirements of specific customers.

Previous wording

We view Adjusted EBITDA, which is a non‑GAAP financial measure, as an important indicator of performance. 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 disposal of property and equipment, 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, loss on debt retirement, gain or loss on disposal of property and equipment, significant and unusual legal fees and settlements, impairment of assets, 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 September 30, 2024 decreased $11.4 million, or 7%, to $153.0 million from $164.4 million for the three months ended September 30, 2023. The change in revenue by segment was as follows:

Current wording

Revenue. Revenue for the three months ended March 31, 2025 decreased $1.7 million, or 1%, to $135.2 million from $136.9 million for the three months ended March 31, 2024. The change in revenue by segment was as follows:

Previous wording

High Specification Rigs. High Specification Rigs revenue for the three months ended September 30, 2024 increased $7.5 million, or 9%, to $86.7 million from $79.2 million for the three months ended September 30, 2023. The revenue increase is attributable to improved pricing and the average revenue per rig hour increasing 6% to $741 for the three months ended September 30, 2024 from $700 for the three months ended September 30, 2023, coupled by a corresponding increase in total rig hours to 116,900 hours for the three months ended September 30, 2024 from 112,400 hours reported for three months ended September 30, 2023.

Current wording

High Specification Rigs. High Specification Rigs revenue for the three months ended March 31, 2025 increased $7.8 million, or 10%, to $87.5 million from $79.7 million for the three months ended March 31, 2024. The revenue increase is attributable to slightly improved pricing and the average revenue per rig hour increasing 3% to $756 for the three months ended March 31, 2025 from $718 for the three months ended March 31, 2024 due to the build out of complete rig packages with additional equipment, coupled by a corresponding increase in total rig hours to 115,700 hours for the three months ended March 31, 2025 from 111,000 hours reported for three months ended March 31, 2024.

Previous wording

Wireline Services. Wireline Services revenue for the three months ended September 30, 2024 decreased $22.9 million, or 43%, to $30.3 million from $53.2 million for the three months ended September 30, 2023. The decreased revenue was primarily attributable to a decrease in completion services revenue of $26.0 million where there was a 63% decrease in completed stage counts to 2,500 for the three months ended September 30, 2024 from 6,800 for the three months ended September 30, 2023. This decrease in completion services revenue and stage count is indicative of lower operational activity reflecting the Company’s decision to pursue only work with appropriate margins. Wireline production services and pump down revenue increased year over year by a net of $3.2 million reflecting increased operational activity offset by market pricing pressure.

Current wording

Wireline Services. Wireline Services revenue for the three months ended March 31, 2025 decreased $15.6 million, or 48%, to $17.2 million from $32.8 million for the three months ended March 31, 2024. The decreased revenue was primarily attributable to a decrease in completion services revenue of $11.5 million where there was a 64% decrease in completed stage counts to 1,400 for the three months ended March 31, 2025 from 3,400 for the three months ended March 31, 2024. This decrease in completion services revenue and stage count is indicative of lower operational activity reflecting the Company’s decision to pursue only work with appropriate margins. Wireline production associated services revenues decreased year over year due to the more extreme weather conditions in 2025 driving activity levels lower while pump down revenue decreased year over year due to a reduction in operational activity as a result of weather impacts and additional competitive dynamics across basins.

Previous wording

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services revenue for the three months ended September 30, 2024 increased $4.0 million, or 13%, to $36.0 million from $32.0 million for the three months ended September 30, 2023. The increase in revenue is primarily attributable to increases in revenue within rentals, plugging and abandonment, logistics, and coil tubing by $1.7 million, $1.4 million, $0.6 million, and $0.4 million, respectively.

Current wording

31, 2024. The increase in revenue is primarily attributable to increases in revenue within rentals, coil tubing, and plugging and abandonment by $3.4 million, $2.4 million, and $0.4 million, respectively.

Previous wording

Cost of services (exclusive of depreciation and amortization). Cost of services for the three months ended September 30, 2024 decreased $12.8 million, or 9%, to $122.0 million from $134.8 million for the three months ended September 30, 2023. As a percentage of revenue, cost of services was 80% and 82% for the three months ended September 30, 2024 and 2023, 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 March 31, 2025 decreased $5.4 million, or 4%, to $115.4 million from $120.8 million for the three months ended March 31, 2024. As a percentage of revenue, cost of services was 85% and 88% for the three months ended March 31, 2025 and 2024, respectively. The change in cost of services by segment was as follows:

Previous wording

High Specification Rigs. High Specification Rigs cost of services for the three months ended September 30, 2024 increased $3.7 million, to $67.2 million from $63.5 million for the three months ended September 30, 2023. The increase was primarily attributable to an increase in variable expenses, notably employee-related labor costs, repair and maintenance costs, and travel costs of $2.5 million, $0.9 million and $0.6 million, respectively. As a percentage of High Specification Rigs revenue, cost of services improved from 80% for the three months ended September 30, 2023 to 78% for the three months ended September 30, 2024.

Current wording

High Specification Rigs. High Specification Rigs cost of services for the three months ended March 31, 2025 increased $3.8 million, to $70.1 million from $66.3 million for the three months ended March 31, 2024. The increase was primarily attributable to an increase in variable expenses, notably employee-related labor costs, repair and maintenance costs, and travel costs of $2.0 million, $0.5 million and $0.5 million, respectively. As a percentage of High Specification Rigs revenue, cost of services was 80% for the three months ended March 31, 2025, a decrease from 83% for the three months ended March 31, 2024.

Previous wording

Wireline Services. Wireline Services cost of services for the three months ended September 30, 2024 decreased $18.2 million, or 40%, to $27.6 million from $45.8 million for the three months ended September 30, 2023. The decrease in wireline services cost of sales was primarily attributable to reductions in completion services costs of $22.5 million as the Company reorganized this service line during the year to align with lower operating levels. As a percentage of Wireline Services revenue, cost of services increased from 86% for the three months ended September 30, 2023 to 91% for the three months ended September 30, 2024 primarily due to declining operating leverage due to lower activity levels.

Current wording

Wireline Services. Wireline Services cost of services for the three months ended March 31, 2025 decreased $12.3 million, or 38%, to $20.3 million from $32.6 million for the three months ended March 31, 2024. The decrease in wireline services cost of sales was primarily attributable to reductions in completion services costs of $10.8 million as the Company continued to reorganize this service line during the quarter to align with lower operating levels. As a percentage of Wireline Services revenue, cost of services increased from 99% for the three months ended March 31, 2024 to 118% for the three months ended March 31, 2025 primarily due to declining operating leverage from lower activity levels.

Previous wording

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services cost of services for the three months ended September 30, 2024 increased $1.7 million, or 7%, to $27.2 million from $25.5 million for the three months ended September 30, 2023. The increase was primarily attributable to increased direct material costs and equipment rentals which accounted for $1.1 million and $0.7 million, respectively. As a percentage of Processing Solutions and Ancillary Services revenue, cost of services improved from 80% for the three months ended September 30, 2023 to 76% for the three months ended September 30, 2024 due to increased operational efficiencies and cost reductions.

Current wording

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services cost of services for the three months ended March 31, 2025 increased $3.1 million, or 14%, to $25.0 million from $21.9 million for the three months ended March 31, 2024. The increase was primarily attributable to increased direct material costs and employee-related labor costs which accounted for $1.5 million and $0.9 million, respectively. As a percentage of Processing Solutions and Ancillary Services revenue, cost of services improved from 90% for the three months ended March 31, 2024 to 82% for the three months ended March 31, 2025 due to increased operational efficiencies and cost reductions.

Previous wording

General & Administrative. General and administrative expenses remained relatively flat; the three months ended September 30, 2024 increased $0.1 million, or 1%, to $7.1 million from $7.0 million for the three months ended September 30, 2023.

Current wording

General & Administrative. General and administrative expenses remained relatively flat; the three months ended March 31, 2025 increased $0.4 million, or 6%, to $7.1 million from $6.7 million for the three months ended March 31, 2024.

Previous wording

Depreciation and Amortization. Depreciation and amortization for the three months ended September 30, 2024 increased $0.5 million, or 5%, to $11.1 million from $10.6 million for the three months ended September 30, 2023. The increase was attributable to increased capital expenditures with shorter useful lives added during the latter half of 2023 into 2024.

Current wording

Depreciation and Amortization. Depreciation and amortization for the three months ended March 31, 2025 decreased $0.6 million, or 5%, to $10.6 million from $11.2 million for the three months ended March 31, 2024. The decrease was attributable to capital expenditures with longer useful lives added during the latter half of 2024 into 2025.

Previous wording

Interest Expense, net. Interest expense, net remained flat at $0.7 million for the three months ended September 30, 2024 and 2023. The changes in interest expense were attributable to reduced borrowings on the Wells Fargo Revolving Credit Facility, offset by increased borrowing costs on finance leases.

Current wording

Interest Expense, net. Interest expense, net decreased from $0.8 million for the three months ended March 31, 2024 to $0.6 million for the three months ended March 31, 2025. The changes in interest expense were attributable to reduced borrowings on the Wells Fargo Revolving Credit Facility and decreased borrowing costs on finance leases.

Previous wording

Income Tax Expense. Income tax expense for the three months ended September 30, 2024 increased $1.9 million, or 119%, to $3.5 million from $1.6 million for three months ended September 30, 2023. The lower tax rate for the period ended September 30, 2023 resulted from discreet tax benefits recognized during the three months ended September 30, 2023.

Current wording

Income Tax Expense or Benefit. Income tax benefit for the three months ended March 31, 2025 decreased $0.4 million, or 80%, resulting in an income tax benefit of $0.1 million compared to income tax benefit of $0.5 million for three months ended March 31, 2024. The lower tax rate for the period ended March 31, 2025 resulted from beneficial equity compensation which vested during the first quarter of 2025.

Previous wording

Net Income. Net income for the three months ended September 30, 2024 decreased $0.7 million, or 7%, to $8.7 million from $9.4 million for the three months ended September 30, 2023. The decrease in net income was driven by reduced operating income from activity declines in the Wireline segment, offset by continued increases in other business lines and reduced tax deductions.

Current wording

Net Income (loss). Net income for the three months ended March 31, 2025 increased $1.4 million, or 175%, to $0.6 million from a loss of $0.8 million for the three months ended March 31, 2024. The increase in net income was driven by continued increases in High Specification Rigs and Ancillary Services, partially offset by reduced operating income from activity declines in the Wireline 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, gain or loss on disposal of property and equipment, acquisition related costs, severance and reorganization costs, 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, loss on debt retirement, gain or loss on disposal of property and equipment, significant and unusual legal fees and settlements, impairment of assets, and certain other non-cash and certain other items that we do not view as indicative of our ongoing performance.

Previous wording

Adjusted EBITDA for the three months ended September 30, 2024 increased $1.1 million to $25.1 million from $24.0 million for the three months ended September 30, 2023. The change by segment was as follows:

Current wording

Adjusted EBITDA for the three months ended March 31, 2025 increased $4.6 million to $15.5 million from $10.9 million for the three months ended March 31, 2024. The change by segment was as follows:

Previous wording

High Specification Rigs. High Specification Rigs Adjusted EBITDA for the three months ended September 30, 2024 increased $3.5 million to $19.2 million from $15.7 million for the three months ended September 30, 2023, due to increased revenue of $7.5 million, partially offset by a corresponding increase in cost of services of $3.7 million.

Current wording

High Specification Rigs. High Specification Rigs Adjusted EBITDA for the three months ended March 31, 2025 increased $3.8 million to $17.4 million from $13.6 million for the three months ended March 31, 2024, due to increased revenue of $7.8 million, partially offset by a corresponding increase in cost of services of $3.8 million.

Previous wording

Wireline Services. Wireline Services Adjusted EBITDA for the three months ended September 30, 2024 decreased $4.7 million to $2.7 million from $7.4 million for the three months ended September 30, 2023, due to decreased operating activity resulting in revenue declines of $22.9 million, partially offset by a corresponding decrease in cost of services of $18.2 million.

Current wording

Wireline Services. Wireline Services Adjusted EBITDA for the three months ended March 31, 2025 decreased $2.5 million to a loss of $2.3 million from $0.2 million for the three months ended March 31, 2024, due to decreased operating activity resulting in revenue declines of $15.6 million, partially offset by a corresponding decrease in cost of services of $12.3 million.

Previous wording

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services Adjusted EBITDA for the three months ended September 30, 2024 increased $2.3 million to $8.8 million from $6.5 million for the three months ended September 30, 2023, due to increased revenue of $4.0 million, partially offset by a corresponding increase in cost of services of $1.7 million.

Current wording

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services Adjusted EBITDA for the three months ended March 31, 2025 increased $3.1 million to $5.6 million from $2.5 million for the three months ended March 31, 2024, due to increased revenue of $6.1 million, partially offset by a corresponding increase in cost of services of $3.1 million.

Previous wording

Other. Other Adjusted EBITDA for the three months ended September 30, 2024 and 2023 held consistent at a loss of $5.6 million. 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 remained relatively flat with a loss of $5.2 million for the three months ended March 31, 2025 and $5.4 million for the three months ended March 31, 2024. 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 September 30, 2024, we had total liquidity of $86.1 million, consisting of $14.8 million of cash on hand and availability under our Wells Fargo Revolving Credit Facility of $71.3 million. Under the Wells Fargo Revolving Credit Facility, the total loan capacity was $75.0 million, net of $3.7 million of Letters of Credit open under the facility. This compares to the Company’s available borrowings under the Wells Fargo Revolving Credit Facility of $61.7 million as of September 30, 2023 and $69.4 million as of December 31, 2023. 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. 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 March 31, 2025, we had total liquidity of $104.4 million, consisting of $40.3 million of cash on hand and availability under our Wells Fargo Revolving Credit Facility of $64.1 million. Under the Wells Fargo Revolving Credit Facility, the total loan capacity was $67.9 million, net of $3.8 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 $58.6 million as of March 31, 2024 and $71.2 million as of December 31, 2024. 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 $1.3 million to $51.8 million for nine months ended September 30, 2024 compared to $53.1 million for the nine months ended September 30, 2023. The change in cash flows from operating activities is primarily attributable to a decrease in operating income for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. Cash created from working capital decreased $5.0 million to $4.4 million utilized for the nine months ended September 30, 2024, compared to $9.4 million utilized for the nine months ended September 30, 2023 due to improvements in collections activities in the most recent quarters.

Current wording

Net cash from operating activities decreased $1.4 million to $10.6 million for three months ended March 31, 2025 compared to $12.0 million for the three months ended March 31, 2024. The change in cash flows from operating activities is primarily attributable to a decrease in the gain on disposal of property and equipment for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. Cash created from working capital decreased $6.1 million to a cash outflow of $3.9 million for the three months ended March 31, 2025, compared to $2.2 million utilized for the three months ended March 31, 2024 due to decreases in collections activities in the most recent quarters.

Previous wording

Net cash used in investing activities increased $4.2 million to $27.2 million for nine months ended September 30, 2024 compared to $23.0 million for the nine months ended September 30, 2023. The change in cash flows from investing activities is largely attributable to slight increases in fixed asset additions that took place during the nine months ended September 30, 2024 and less proceeds from asset disposals relative to those that occurred during the nine months ended September 30, 2023.

Current wording

Net cash used in investing activities increased $0.4 million to $6.1 million for three months ended March 31, 2025 compared to $5.7 million for the three months ended March 31, 2024. The change in cash flows from investing activities is largely attributable to slight increases in fixed asset additions that took place during the three months ended March 31, 2025 and more proceeds from asset disposals relative to those that occurred during the three months ended March 31, 2024.

Previous wording

Net cash used in financing activities increased $0.1 million to $25.5 million for nine months ended September 30, 2024 compared to $25.6 million for the nine months ended September 30, 2023. Cash used in financing activities for the nine months ended September 30, 2024 primarily was allocated to the repurchase of Class A Common Stock (see Item 1. Financial Information— Note 10 — Equity).

Current wording

Net cash used in financing activities decreased $5.8 million to $5.1 million for three months ended March 31, 2025 compared to $10.9 million for the three months ended March 31, 2024. Unlike the first quarter of 2024, cash used in financing activities for the three months ended March 31, 2025 did not include any repurchases of Class A Common Stock (see Item 1. Financial Information— Note 10 — Equity).

Previous wording

During the nine months ended September 30, 2024, the Company added fixed assets of $4.4 million and $4.4 million primarily related to finance leased assets and asset trades, respectively, across all operating segments.

Current wording

During the three months ended March 31, 2025, the Company added fixed assets of $1.5 million and $0.2 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, remained relatively flat at $66.2 million as of September 30, 2024, compared to $66.4 million as of December 31, 2023.

Current wording

Our working capital, which we define as total current assets less total current liabilities, increased to $81.2 million as of March 31, 2025, compared to $78.7 million as of December 31, 2024.

Previous 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 September 30, 2024. 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 did not have any borrowings under the Wells Fargo Revolving Credit Facility as of September 30, 2024. The Company does have $3.7 million in Letters of Credit open under the facility, leaving a residual $71.3 million available for borrowings as of September 30, 2024. Borrowings under the 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 7.2% for the nine months ended September 30, 2024.

Current wording

Under the Wells Fargo Revolving Credit Facility, the total loan capacity was $67.9 million, which was based on a borrowing base certificate in effect as of March 31, 2025. 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 did not have any borrowings under the Wells Fargo Revolving Credit Facility as of March 31, 2025. The Company does have $3.8 million in Letters of Credit open under the facility, leaving a residual $64.1 million available for borrowings as of March 31, 2025. Borrowings under the 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 6.2% for the three months ended March 31, 2025.

Previous wording

During the year ended December 31, 2021, the Company entered into various Installment and Security Agreements (collectively, the “Installment Agreements”) in connection with the purchase of certain ancillary equipment, where such assets are being held as collateral. For the nine months ended September 30, 2024 and 2023, the Company paid down the Installment Agreements by $0.1 million and $0.3 million, respectively. As of September 30, 2024, the Company has fully paid the Installment Agreements.

Current wording

During the year ended December 31, 2021, the Company entered into various Installment and Security Agreements (collectively, the “Installment Agreements”) in connection with the purchase of certain ancillary equipment, where such assets are being held as collateral. For the three months ended March 31, 2024, the Company paid down the Installment Agreements by $0.1 million. As of the year ended December 31, 2024, the Company had fully paid the Installment Agreements.

Previous wording

On March 7, 2023, the Company announced a share repurchase program authorizing the Company to purchase up to $35.0 million of Class A Common Stock that can be utilized for up to 36 months. On March 4, 2024, the Company announced that its 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.

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 can be utilized for up to 36 months. On March 4, 2024, the Company announced that its 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, 2025, the Company did not repurchase any of the Company’s Class A Common Stock on the open market. As of March 31, 2025, an aggregate of 3,325,800 shares of Class A Common Stock were purchased for a total of $34.8 million, net of tax since the inception of the repurchase plan announced on March 7, 2023 and $50.2 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 believes that a share repurchase and dividend framework provides the best overall value creation potential for investors. The Company paid dividend distributions totaling $1.1 million and $1.2 million to shareholders for the three months ended September 30, 2024 and 2023, respectively and $3.4 million and $1.2 million to all shareholders in the nine months ended September 30, 2024 and 2023, respectively. The declaration of any future dividends is subject to the Board of Directors’ discretion and approval.

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 dividend distributions totaling $1.3 million to shareholders for the three months ended March 31, 2025. The declaration of any future dividends is subject to the Board of Directors’ discretion and approval.