RPC Reports Q4 Net Loss, Significant FY25 Profit Decline Amid Challenging Macro
RES sits 64% above its 52-week low of $4.1 on elevated volume (1.9× avg).
Summary
RPC, Inc. reported a net loss of $3.1 million for Q4 2025 and a 65% decline in full-year 2025 net income, with management citing holiday slowdowns and a challenging macro environment.
Key Events · Earnings and Guidance · RES
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Q4 2025 Net Loss Reported
RPC, Inc. reported a net loss of $3.1 million ($0.02 EPS) for the fourth quarter, a significant decline from $13.0 million net income in the prior quarter.
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Full Year 2025 Profit Decline
Full-year net income decreased 65% to $32.1 million ($0.15 EPS) compared to the previous year, despite a 15% increase in revenues primarily due to an acquisition.
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Sequential Revenue Drop
Fourth-quarter revenues decreased 5% sequentially to $425.8 million, attributed to holiday slowdowns and reduced customer activity.
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Accounting Change Impact
The company changed its accounting policy for wireline cables from capitalization to expensing, negatively impacting Q4 Adjusted EBITDA by approximately $4.6 million and contributing to increased cost of revenues.
Analysis · RES · Energy & Transportation
The Q4 2025 results show a notable deterioration in RPC, Inc.'s financial performance, with a sequential revenue decline and a shift from net income to a net loss. The full-year figures, despite revenue growth driven by an acquisition, reveal a substantial 65% drop in net income compared to the prior year. Management's commentary underscores a challenging operating environment, including crude oil price volatility and reduced customer activity in December. The change in accounting for wireline cables, moving from capitalization to expensing, further impacted Q4 results, contributing to the reported loss. Investors should monitor the company's ability to navigate the challenging macro environment and improve profitability in 2026, especially given the stock is trading near its 52-week high.
At the time of this filing, RES was trading at $6.71 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $1.5B. The 52-week trading range was $4.10 to $6.85. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.