DTI earnings analysis
What we found in DTI's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
DTI reported Q2 2026 revenue of $38.072 million and diluted EPS of -$0.02. Revenue was approximately 2.4% below Q2 2025’s $39 million but improved from the prior quarter’s $37.96 million, while EPS improved from -$0.07 year over year and -$0.04 sequentially. The filing does not disclose gross margin, operating margin, free cash flow, segment results or updated quantitative guidance; revenue was below the prior $40 million-$42 million outlook. Tariff exposure, unhedged foreign-currency risk and cybersecurity risk remain material concerns, although management reported effective disclosure controls as of June 30, 2026.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue broadly stable sequentially
- Q2 2026 revenue was $38.072 million, approximately 2.4% below the $39 million reported in Q2 2025 and broadly flat versus $37.96 million in Q1 2026.
- EPS improved year over year
- Diluted EPS was -$0.02, improving from -$0.07 in Q2 2025 and -$0.04 in Q1 2026; the result was better than the -$0.04 consensus estimate.
- Disclosure controls remained effective
- Management concluded that disclosure controls and procedures were effective as of June 30, 2026, at the reasonable-assurance level.
- Repurchase capacity retained
- The company had a $10.0 million share-repurchase authorization, but repurchased no shares during the three months ended June 30, 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Revenue below prior outlook
- Q2 2026 revenue of $38.072 million fell short of the previously cited $40 million-$42 million outlook, indicating continued uncertainty around drilling activity and demand.
- Tariff and inflation exposure
- The filing states that tariffs, including tariffs involving the U.S., China, Mexico and Canada, could materially and adversely affect results; tariff exclusions are ending and the company may be unable to recover increased costs.
- Unhedged currency exposure
- As international operations expand, foreign-exchange exposure may increase. The company states it has entered into no hedging arrangements to minimize currency fluctuations.
- Cash and receivables concentration risk
- The company identifies cash and accounts receivable as principal credit-risk exposures; deposits may exceed FDIC and CDIC insurance limits, although they may be redeemed upon demand.
- Cybersecurity incidents remain possible
- The company states that cybersecurity controls and testing do not assure that incidents will not occur, despite maintaining an incident-response plan and conducting penetration and disaster-recovery testing.
- No material risk-factor update
- There were no material changes to the risk factors disclosed in the March 6, 2026 Annual Report, but the filing states that additional currently unknown risks may materially and adversely affect the business.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.02
What they said about what is next.
The filing does not provide updated quantitative guidance. Q2 2026 revenue of $38.072 million was below the previously cited $40 million-$42 million outlook; no revised outlook is disclosed.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 8, 2026
- Drilling Tools International Corp. (DTI) reported mixed results in Q1 2026, with a revenue of $37.96 million, down 11% from $42.88 million in the prior year, and a decline in gross margins leading to an EPS of -0.03,…
- 10-K · March 6, 2026
- DTI reported full-year 2025 revenue of $160.0 million (sum of quarterly revenue), reflecting continued growth and a broadened international footprint following multiple 2024–2025 acquisitions. The company emphasizes…
- 10-Q · November 7, 2025
- Drilling Tools International reported Q3 2025 revenue of $38,817,000 and a net loss of $904,000 (diluted EPS $(0.03)). Tool rental revenue strengthened to $31,859,000, supporting a gross margin of ~74.0%, but the…
- 10-Q · August 14, 2025
- Revenue for the quarter ended June 30, 2025 was $39.421M, up $1.888M (5.0%) versus Q2 2024 but down $4.000M (9.3%) versus the prior quarter. Gross margin expanded to 74.9% in Q2 2025 from 73.4% a year ago. The company…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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