Dawson Geophysical Company (DWSN) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose 82% year-over-year to $17.9 million, driven by increased crew production, utilization, and the launch of a high-density seismic project using new single-node channels; fee revenue was $14 million and reimbursable revenue $3.9 million.

• Net loss for Q2 2026 was $3.4 million ($0.11 per share), including $1.7 million in strategic transaction expenses, compared to a $2.3 million loss in Q2 2025.

• Adjusted EBITDA for Q2 2026 was $0.6 million, a $1.8 million improvement year-over-year, marking the fourth consecutive quarter of positive Adjusted EBITDA.

• For the first half of 2026, net income reached $4.2 million ($0.14 per share), compared to a $1.4 million loss in the prior year period; Adjusted EBITDA surged to $11.5 million, up 875%.

Financial highlights

• Q2 2026 fee revenues increased 57% in the US and 151% in Canada year-over-year; total revenues for the first six months of 2026 were $54.6 million, up from $25.9 million in 2025.

• Gross margin for Q2 2026 improved to 19% from 13% in Q2 2025.

• Operating costs for Q2 2026 rose 71% year-over-year to $20.9 million, mainly due to higher crew utilization and increased depreciation from new equipment.

• Cash and cash equivalents at June 30, 2026, were $5.8 million; working capital deficit reduced to $2.9 million from $5 million at year-end 2025.

• No outstanding balance on the credit facility, with a borrowing base of $4.1 million.

Outlook and guidance

• Management expects increased demand for high-density seismic acquisition services if the current high-density project proves successful and further operational efficiencies from new single node channels and ongoing investment in compute power.

• Canadian operations are expected to resume in Q4 2026, with increased bidding activity for large projects into 2027.

• Management believes cash flow from operations, cash on hand, and available credit are sufficient to fund operations and obligations for at least the next twelve months.