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,…
Earnings analysis · 10-Q
DTI earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.02
What stood out
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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.
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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.
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Disclosure controls remained effective
Management concluded that disclosure controls and procedures were effective as of June 30, 2026, at the reasonable-assurance level.
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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.
What to watch
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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.
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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.
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.