Nine Energy Service, Inc. (NINE) AI Stock Analysis

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Nine Energy Service, Inc.

(NYSE MKT:NINE)

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Rating:43Neutral

Price Target:$7.00▼(-2.23% Downside)

Action:reiterated

Date:11/11/26

The overall score of 43 reflects a high-risk investment profile. The most significant factor is the company's extremely weak financial performance, characterized by persistent cash burn and a historically impaired balance sheet, which heavily drags down the score. While the latest earnings call provides a positive near-term outlook with improving profitability and a promising 2027 growth setup, this is overshadowed by the fundamental financial instability. Technical trends are bearish, and the distorted valuation metrics offer little support. The company's viability hinges on a sustained operational turnaround that has not yet materialized in its financial statements.

Positive Factors

Cementing growthCementing is showing growth that exceeds overall rig-count trends, indicating successful customer capture and stronger competitive execution. Market share gains combined with sustained demand can support a more durable revenue base and improve operating leverage if activity remains constructive.

Negative Factors

Revenue decline and thin marginsThe sharp revenue contraction shows that improved reported profitability is not yet supported by broad top-line momentum. A thin gross margin leaves limited protection if customer activity weakens, making earnings more vulnerable to volume pressure and unfavorable service mix.

Nine Energy Service, Inc. (NINE) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $104.35M
Dividend Yield: ―
Average Volume (3M): 53.30K
Price to Earnings (P/E): 1.1
Beta (1Y): -1.03
Revenue Growth: -4.41%
EPS Growth: ―
Country: US
Employees: 1,072
Sector: General
Sector Strength: 55
Industry: Oil & Gas Equipment & Services

Nine Energy Service, Inc. Business Overview & Revenue Model

Company Description

Nine Energy Service, Inc., headquartered in Houston, Texas, is a provider of onshore well completion solutions. The company primarily caters to the development of unconventional oil and gas resources throughout North American basins and globally. Its...

Nine Energy Service, Inc. Earnings Call Summary

Earnings Call Date:Nov 09, 2026(Q3-2026)|% Change Since:7.35%|Next Earnings Date:May 10, 2027

Earnings Call SentimentPositive

The call was predominantly positive. Nine reported improving U.S. activity, strong cementing growth with market share gains, improved margins and safety performance, $46 million of liquidity, and an expectation for increased fourth-quarter profitability. Management also outlined multiple product, testing-facility, procurement, and market-positioning initiatives supporting potential 2027 growth. These positives were partly offset by the coiled tubing unit remaining out of service, a sequential decline in completion tools revenue, inflation and diesel cost pressure, seasonal activity risk, and macroeconomic and geopolitical uncertainty.

Positive Updates

Third-Quarter Revenue and Adjusted EBITDA

Third-quarter revenue was $142 million and adjusted EBITDA was $8.3 million.

Negative Updates

Coiled Tubing Unit Remained Out of Service

One large-diameter coiled tubing unit remained out of service throughout the third quarter because of a maintenance issue. Its continued unavailability constrained Nine's ability to participate fully in improving industry activity and adversely affected revenue and profitability in that service line.

Company Guidance

Nine expects full-year CapEx to come in near the midpoint of the full-year guidance range of $20 million to $30 million. For the fourth quarter, the company expects activity improvement to continue, with cementing primarily positioned to benefit from sustained customer demand, flat revenue and increased profitability compared with the third quarter, and revenue in the range of $137 million to $147 million; the large-diameter coiled tubing unit is expected to return to service in December, with the timing remaining an important variable and the guidance conservative. The new completion tools testing facility is expected to become operational in the first half of 2027, with testing capacity at pressures exceeding 30,000 psi and temperatures above 500 degrees Fahrenheit, and designed to run as many as 6 tests simultaneously, tripling current testing capacity.

Nine Energy Service, Inc. Financial Statement Overview

Summary

Financial performance is critically weak. The income statement shows persistent annual losses and declining revenue, with a single TTM profit appearing anomalous. The balance sheet reflects years of negative equity and high leverage, with only a tentative recent stabilization. Most concerning, the company consistently fails to generate positive free cash flow, with TTM FCF deeply negative at -$29.2M, indicating poor earnings quality and liquidity risk.

Income Statement

35Negative

Balance Sheet

20Very Negative

Cash Flow

15Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	403.97M	561.91M	554.10M	609.53M	593.38M	349.42M
Gross Profit	37.40M	60.16M	60.60M	78.12M	96.04M	-3.59M
EBITDA	137.03M	53.31M	60.47M	72.67M	96.34M	20.97M
Net Income	77.43M	-51.32M	-41.08M	-32.21M	14.39M	-64.58M
Balance Sheet
Total Assets	315.94M	339.46M	360.08M	401.98M	426.83M	381.61M
Cash, Cash Equivalents and Short-Term Investments	16.05M	18.45M	27.88M	30.84M	17.45M	21.51M
Total Debt	126.27M	382.65M	358.79M	366.32M	377.80M	372.07M
Total Liabilities	190.05M	454.42M	426.14M	437.61M	450.34M	420.88M
Stockholders Equity	125.89M	-114.96M	-66.06M	-35.63M	-23.51M	-39.27M
Cash Flow
Free Cash Flow	-29.19M	-23.25M	-1.57M	20.91M	-11.88M	-55.83M
Operating Cash Flow	-12.12M	-7.31M	13.20M	45.51M	16.67M	-40.42M
Investing Cash Flow	-13.74M	-13.59M	-14.18M	-23.16M	-25.42M	-11.92M
Financing Cash Flow	26.99M	12.86M	-1.68M	-8.89M	4.85M	5.05M

Nine Energy Service, Inc. Risk Analysis

Nine Energy Service, Inc. disclosed 64 risk factors in its most recent earnings report. Nine Energy Service, Inc. reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

3 New Risks

1.Our historical financial statements will not be comparable to the information contained in our financial statements after the application of fresh start accounting.Q1, 2026

2.We recently emerged from bankruptcy, which may adversely affect our business and relationships.Q1, 2026

3.The ability to attract and retain key personnel is critical to the success of our business and has been and may continue to be affected by our emergence from bankruptcy.Q1, 2026

Nine Energy Service, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

NINE against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RNGR	64Neutral	$286.91M	18.72	5.17%	1.92%	16.94%	-0.36%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
OIS	54Neutral	$507.77M	-4.56	-18.55%	―	-0.74%	-595.12%
PUMP	47Neutral	$880.92M	369.95	0.21%	―	-6.04%	―
ACDC	44Neutral	$624.68M	-1.37	-59.53%	―	-3.30%	-5.43%
NINE	43Neutral	$104.35M	1.11	112.83%	―	-4.41%	―

* General Sector Average

Performance Comparison

NINE and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
NINE	Nine Energy Service, Inc.	7.16	-1.04	-12.68%
OIS	Oil States International	8.55	2.25	35.71%
PUMP	Propetro Holding	7.39	-2.53	-25.50%
RNGR	Ranger Energy Services	12.53	-1.02	-7.55%
ACDC	Profrac Holding Corp. Class A	3.19	-0.63	-16.49%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 10, 2026

Nine Energy Service, Inc. AI Stock Analysis