tusk-20260930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM TO

Commission File No. 001-37917

Mammoth Energy Services, Inc.

(Exact name of registrant as specified in its charter)

Delaware

32-0498321

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)

14201 Caliber Drive,

Suite 300

Oklahoma City,

Oklahoma

(405)

608-6007

73134

(Address of principal executive offices)

(Registrant’s telephone number, including area code)

(Zip Code)

Securities registered pursuant to Section 12(b) of The Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock

TUSK

The Nasdaq Stock Market LLC

NASDAQ Global Select Market

______________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☒

Non-accelerated filer

☐

Smaller reporting company

☒

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of October 27, 2026, there were 48,127,585 shares of common stock, $0.01 par value, outstanding.

MAMMOTH ENERGY SERVICES, INC.

TABLE OF CONTENTS




		Page

	Cautionary Note Regarding Forward-Looking Statements	i

PART I. FINANCIAL INFORMATION		1
Item 1.	Condensed Consolidated Financial Statements (Unaudited)	1
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)	2
	Condensed Consolidated Statements of Changes in Equity	3
	Condensed Consolidated Statements of Cash Flows	4
	Notes to Unaudited Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	45
Item 4.	Controls and Procedures	45

PART II. OTHER INFORMATION		47
Item 1.	Legal Proceedings	47
Item 1A.	Risk Factors	47
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	47
Item 3.	Defaults Upon Senior Securities	47
Item 4.	Mine Safety Disclosures	47
Item 5.	Other Information	47
Item 6.	Exhibits	48

SIGNATURES		49

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding our expectations, plans, objectives, strategies, future events, future revenues, future operations, capital expenditures, liquidity, acquisitions, business trends and other statements that are not historical facts. Forward-looking statements may be identified by words such as "may," "will," "could," "should," "expect," "anticipate," "plan," "intend," "believe," "estimate," "project," "forecast," "target," "continue," "potential," or similar expressions, and the negative thereof.

Forward-looking statements are based on current expectations, estimates and assumptions and are subject to risks and uncertainties, many of which are beyond management's control. As a result, actual outcomes and results may differ materially from those expressed or implied by these forward-looking statements. The forward-looking statements contained in this report speak only as of the date of this report and are based on information available to us as of that date. Except as required by applicable law, we undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, and readers are cautioned not to place undue reliance on these forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include, among others:

•general economic, financial and industry conditions, including inflation, commodity price volatility and fluctuations in customer spending and capital expenditure activity;

•conditions in the energy, infrastructure, aviation, rental equipment and natural sand proppant markets that affect demand for our services and products;

•our ability to execute our business strategy, grow existing operations, integrate acquisitions and identify additional growth opportunities;

•the availability and cost of labor, equipment, materials, replacement parts and other operational resources;

•customer concentration, customer payment risks and our ability to collect outstanding receivables, including the timing and collectability of amounts owed by the Puerto Rico Electric Power Authority ("PREPA");

•governmental actions, regulations, permitting requirements, trade policies, tariffs and other legal or regulatory developments;

•litigation, claims, investigations and other contingent liabilities;

•weather events, natural disasters, acts of war, terrorism, civil unrest, cybersecurity incidents and other events beyond our control; and

•the other risks and uncertainties described under Part II, Item 1A, "Risk Factors" in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2025.

MAMMOTH ENERGY SERVICES, INC.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

MAMMOTH ENERGY SERVICES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)


ASSETS	September 30,		December 31,
	2026		2025
CURRENT ASSETS	(in thousands, except share data)
Cash and cash equivalents	$	13,090	$	101,987
Marketable securities	24,496		19,635
Restricted cash	11,928		12,085

Accounts receivable, net	38,583		28,934

Inventories	14,760		4,083

Current assets held for sale	2,227		4,287
Other current assets	2,363		4,619

Current assets of discontinued operations	1,297		1,518
Total current assets	108,744		177,148

Property, plant and equipment, net	184,344		106,097
Sand reserves, net	38,424		39,613
Operating lease right-of-use assets	3,504		2,591


Goodwill	1,147		—

Other non current assets	5,454		5,767
Noncurrent assets of discontinued operations	6		3,678
Total assets	$	341,623	$	334,894
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable	$	7,934	$	9,327

Accrued expenses and other current liabilities	19,240		18,336


Current operating lease liabilities	2,584		2,071

Income taxes payable	42,346		39,899
Current liabilities of discontinued operations	185		383
Total current liabilities	72,289		70,016



Deferred income tax liabilities	2,447		2,430
Long-term operating lease liabilities	1,214		1,375
Asset retirement obligations	2,803		2,759
Other long-term liabilities	303		26

Total liabilities	79,056		76,606

COMMITMENTS AND CONTINGENCIES (Note 18)

EQUITY
Equity:
Common stock, $0.01 par value, 200,000,000 shares authorized, 48,127,585 and 48,358,315 issued and outstanding at September 30, 2026 and December 31, 2025, respectively	481		483
Additional paid-in capital	540,848		540,841
Accumulated deficit	(274,493)		(279,046)
Accumulated other comprehensive loss	(4,269)		(3,990)
Total equity	262,567		258,288
Total liabilities and equity	$	341,623	$	334,894

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

MAMMOTH ENERGY SERVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
REVENUE	(in thousands, except per share amounts)
Services revenue	$	15,520	$	7,608	$	42,572	$	18,824
Services revenue - related parties	672		516		1,365		1,168
Product revenue	5,154		2,728		25,493		14,843

Total revenue	21,346		10,852		69,430		34,835

COST, EXPENSES AND GAINS
Services cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $5,169, $12,168, $1,488 and $4,109 for the three and nine months ended September 30, 2026 and 2025, respectively)	8,408		6,641		24,150		16,879
Services cost of revenue - related parties	—		96		—		288
Product cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $1,388, $2,493, $1,263 and $3,552 for the three and nine months ended September 30, 2026 and 2025, respectively)	2,980		4,148		22,946		14,886

Selling, general and administrative	4,134		4,749		11,962		13,823

Depreciation, depletion, amortization and accretion	6,557		2,751		14,661		7,661
(Gains) loss on disposal of assets, net	(312)		1,874		(5,628)		(2,675)

Impairment of long-lived assets	—		—		—		31,669
Total cost, expenses and gains, net	21,767		20,259		68,091		82,531
Operating (loss) income	(421)		(9,407)		1,339		(47,696)

OTHER INCOME (EXPENSE)
Interest income (expense), net	211		729		(59)		1,112

Gain on marketable securities, net	1,173		73		7,161		73
Other expense, net	(533)		(1,903)		(1,214)		(2,863)

Total other income (expense), net	851		(1,101)		5,888		(1,678)
Net income (loss) from continuing operations before income taxes	430		(10,508)		7,227		(49,374)
Provision for income taxes	136		2,140		3,444		2,044
Net income (loss) from continuing operations	294		(12,648)		3,783		(51,418)
Net (loss) income from discontinued operations, net of income taxes	(168)		33		770		47,114
Net income (loss)	$	126	$	(12,615)	$	4,553	$	(4,304)

OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment	$	52	$	(180)	$	(279)	$	317
Other comprehensive income (loss)	52		(180)		(279)		317
Comprehensive income (loss)	$	178	$	(12,795)	$	4,274	$	(3,987)

Net income (loss) per share from continuing operations, basic and diluted (Note 14)	$	0.01	$	(0.26)	$	0.08	$	(1.07)
Net income per share from discontinued operations, basic and diluted (Note 14)	—		—		0.02		0.98
Net income (loss) per share, basic and diluted (Note 14)	$	0.01	$	(0.26)	$	0.10	$	(0.09)
Weighted average number of shares outstanding, basic and diluted (Note 14)	48,128		48,358		48,207		48,245

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

MAMMOTH ENERGY SERVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(unaudited)


	Three Months Ended September 30, 2026
								Accumulated
				Additional				Other
	Common Stock			Paid-In		Accumulated		Comprehensive
	Shares	Amount		Capital		Deficit		Loss		Total Equity
	(in thousands)
Balance at June 30, 2026	48,127	$	481	$	540,848	$	(274,619)	$	(4,321)	$	262,389



Net income	—	—		—		126		—		126

Other comprehensive income	—	—		—		—		52		52
Balance at September 30, 2026	48,127	$	481	$	540,848	$	(274,493)	$	(4,269)	$	262,567

	Three Months Ended September 30, 2025
								Accumulated
				Additional				Other
	Common Stock			Paid-In		Accumulated		Comprehensive
	Shares	Amount		Capital		Deficit		Loss		Total Equity
	(in thousands)
Balance at June 30, 2025	48,194	$	482	$	540,842	$	(275,332)	$	(3,954)	$	262,038


Net loss	—	—		—		(12,615)		—		(12,615)

Other comprehensive loss	—	—		—		—		(180)		(180)
Balance at September 30, 2025	48,194	$	482	$	540,842	$	(287,947)	$	(4,134)	$	249,243

	Nine Months Ended September 30, 2026
								Accumulated
				Additional				Other
	Common Stock			Paid-In		Accumulated		Comprehensive
	Shares	Amount		Capital		Deficit		Loss		Total Equity
	(in thousands)
Balance at December 31, 2025	48,358	$	483	$	540,841	$	(279,046)	$	(3,990)	$	258,288

Common stock repurchased and retired	(231)	(2)		(537)		—		—		(539)
Equity based compensation (Note 15)	—	—		544		—		—		544
Net income	—	—		—		4,553		—		4,553

Other comprehensive loss	—	—		—		—		(279)		(279)
Balance at September 30, 2026	48,127	$	481	$	540,848	$	(274,493)	$	(4,269)	$	262,567

	Nine Months Ended September 30, 2025
								Accumulated
				Additional				Other
	Common Stock			Paid-In		Accumulated		Comprehensive
	Shares	Amount		Capital		Deficit		Loss		Total Equity
	(in thousands)
Balance at December 31, 2024	48,127	$	481	$	540,431	$	(283,643)	$	(4,451)	$	252,818

Stock based compensation	67	1		411		—		—		412

Net loss	—	—		—		(4,304)		—		(4,304)

Other comprehensive income	—	—		—		—		317		317
Balance at September 30, 2025	48,194	$	482	$	540,842	$	(287,947)	$	(4,134)	$	249,243

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

MAMMOTH ENERGY SERVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)


	Nine Months Ended September 30,
	2026		2025
	(in thousands)
Cash flows from operating activities:
Net income (loss)	$	4,553	$	(4,304)
Less: Net income from discontinued operations, net of income taxes	770		47,114
Net income (loss) from continuing operations	3,783		(51,418)
Adjustments to reconcile net income (loss) from continuing operations to net cash used in operating activities:

Stock based compensation	—		412
Depreciation, depletion, amortization and accretion	14,661		7,661

Amortization of debt origination costs	1,488		531

Gains on disposal of assets, net	(5,628)		(2,675)
Gains from sale of aviation equipment	(700)		—
Gains from sales of equipment damaged or lost down-hole	(230)		(217)

Impairment of long-lived assets	—		31,669



Gain on marketable securities, net	(7,161)		(73)
Other	931		199
Changes in assets and liabilities:
Accounts receivable, net	(8,554)		1,321

Inventories	(10,677)		(70)
Other current assets	1,238		6,460

Accounts payable	(1,949)		(1,105)

Accrued expenses and other liabilities	469		(8,920)

Income taxes payable	2,466		2,066
Net cash used in operating activities from continuing operations	(9,863)		(14,159)
Net cash (used in) provided by operating activities from discontinued operations	(70)		5,076
Net cash used in operating activities	(9,933)		(9,083)

Cash flows from investing activities:
Purchases of property, plant and equipment	(97,513)		(44,633)

Business acquisitions, net of cash transferred	(5,805)		—


Proceeds from disposal of property, plant and equipment	9,566		5,465
Proceeds from sale of aviation equipment	8,500		—
Purchases of marketable securities	(7,929)		(12,660)
Distributions received from publicly traded limited partnerships	1,001		—
Proceeds from sale of marketable securities	9,228		—

Net cash used in investing activities from continuing operations	(82,952)		(51,828)
Net cash provided by investing activities from discontinued operations	4,581		110,421
Net cash (used in) provided by investing activities	(78,371)		58,593

Cash flows from financing activities:








Principal payments on finance leases and equipment financing notes	(199)		(371)


Common stock repurchased and retired	(534)		—
Net cash used in financing activities from continuing operations	(733)		(371)
Net cash used in financing activities from discontinued operations	—		(3,851)
Net cash used in financing activities	(733)		(4,222)
Effect of foreign exchange rate on cash	(39)		73
Net (decrease) increase in cash, cash equivalents and restricted cash	(89,076)		45,361
Cash, cash equivalents and restricted cash at beginning of period	114,124		82,326
Cash, cash equivalents and restricted cash at end of period	25,048		127,687
Less: Cash, cash equivalents and restricted cash of discontinued operations at end of period	30		59
Cash, cash equivalents and restricted cash of continuing operations	$	25,018	$	127,628

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

(unaudited)


	Nine Months Ended September 30,
	2026		2025
	(in thousands)
Supplemental disclosure of cash flow information for continuing operations:
Cash paid for interest	$	111	$	551

Cash paid for income taxes, net of refunds received	$	819	$	625

Supplemental disclosure of non-cash transactions for continuing operations:

Purchases of property, plant and equipment included in accounts payable and accrued expenses	$	660	$	218
Right-of-use assets obtained for finance lease liabilities	$	395	$	—

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Organization and Nature of Business

Mammoth Energy Services, Inc., together with its subsidiaries ("Mammoth" or the "Company"), is a growth-oriented company that provides products and services to customers in the aviation, utility infrastructure and oil and natural gas industries. The Company operates through five reportable segments: rental services, infrastructure services, natural sand proppant services, accommodation services and drilling services. Refer to Note 19 for segment information. The Company was incorporated in Delaware in June 2016.

On April 11, 2025, the Company completed a transaction to sell a portion of its infrastructure services entities, including its distribution, transmission and substation operations, for aggregate proceeds of $108.7 million. Subsequently, on June 16, 2025, the Company sold all of the equipment previously used in its hydraulic fracturing services for $15.0 million. In addition, on December 2, 2025, the Company completed a transaction to sell its engineering business for $30.0 million. These transactions reflect a strategic shift in the Company’s business. Results of operations, financial position and cash flows for these services are reported as discontinued operations for all periods presented and discussed in this report. Refer to Note 4 for further information.

2. Basis of Presentation and Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries and the variable interest entities (“VIE”) for which the Company is the primary beneficiary. See Note 11 for additional information regarding these entities. All intercompany accounts and transactions have been eliminated.

This report has been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, and reflects all adjustments, which in the opinion of management are necessary for the fair presentation of the results for the interim periods, on a basis consistent with the annual audited consolidated financial statements. All such adjustments are of a normal, recurring nature. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.

Unless otherwise indicated, information in these notes to unaudited condensed consolidated financial statements relates to continuing operations. Certain of our operations have been presented as discontinued. See Note 4 for further information.

These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the summary of significant accounting policies and notes thereto included in the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2025.

Reclassifications

Certain prior period balances in the unaudited condensed consolidated balance sheets and notes to the unaudited condensed consolidated financial statements have been combined or reclassified to conform to current period presentation. There was no impact on previously reported total assets, total liabilities, net income (loss) or equity for the periods presented.

Cash, Cash Equivalents and Restricted Cash

All highly liquid investments with an original maturity of three months or less are considered cash equivalents. Restricted cash at September 30, 2026 and December 31, 2025 consisted of amounts held in escrow related to the sale of certain of our infrastructure subsidiaries as discussed in Note 4.

The following table provides a reconciliation of “cash and cash equivalents” and “restricted cash” reported on the unaudited condensed consolidated balance sheets that sum to the total of the same such amounts shown on the unaudited condensed consolidated statements of cash flows (in thousands):

MAMMOTH ENERGY SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


	September 30,		December 31,
	2026		2025
Cash and cash equivalents	$	13,090	$	101,987
Restricted cash	11,928		12,085
Total cash, cash equivalents and restricted cash shown in the unaudited condensed consolidated statements of cash flows	$	25,018	$	114,072

Marketable Securities

The Company considers all of its marketable publicly held securities as available for use in current operations, and therefore classifies these securities within current assets on the unaudited condensed consolidated balance sheets. Equity securities are measured at fair value, with changes in fair value recognized within “Gain on marketable securities, net” on the unaudited condensed consolidated statements of operations and comprehensive income (loss).

Realized gains and losses on securities sold are determined using the specific identification method and are measured based on the last reported carrying value of the securities immediately preceding the date of sale. The following table presents the components of “Gain on marketable securities, net”:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Gain recognized on marketable securities, net	$	1,173	$	73	$	7,161	$	73
Less: net gain recognized on marketable securities sold during the period	89		—		164		—
Unrealized gain recognized on marketable securities still held at the reporting date	$	1,084	$	73	$	6,997	$	73

Accounts Receivable, net

Accounts receivable include amounts due from customers for services performed or goods sold. The Company grants credit to customers in the ordinary course of business and generally does not require collateral. Prior to granting credit to customers, the Company analyzes the potential customer’s risk profile by utilizing a credit report, analyzing macroeconomic factors and using its knowledge of the industry, among other factors. Customer balances are generally considered delinquent if unpaid by the due date, which generally ranges from 30 to 60 days following the invoice date, and credit privileges may be revoked if balances remain unpaid. Interest on delinquent trade accounts receivable is recognized in “other (expense) income”, net on the unaudited condensed consolidated statements of operations and comprehensive income (loss) when chargeable and collectability is reasonably assured.

The Company regularly reviews receivables and provides for expected losses through an allowance for expected credit losses. In evaluating the level of established reserves, the Company makes judgments regarding its customers’ ability to make required payments, economic events and other factors. As the financial condition of customers changes, circumstances develop, or additional information becomes available, adjustments to the allowance for expected credit losses may be required. In the event the Company expects that a customer may not be able to make required payments, the Company would increase the allowance through a charge to income in the period in which that determination is made. If it is determined that previously reserved amounts are collectible, the Company would decrease the allowance through a credit to income in the period in which that determination is made. Uncollectible accounts receivable are periodically charged against the allowance for expected credit losses once a final determination is made regarding their collectability.

Following is a rollforward of the changes in our allowance for expected credit losses for the nine months ended September 30, 2026 (in thousands):










Balance at December 31, 2025	$	170,937
Change in provision for expected credit losses before recoveries	—

Recoveries of receivables previously charged to credit loss expense	2
Write-offs charged against the provision	(61)
Balance at September 30, 2026	$	170,878

MAMMOTH ENERGY SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The Company has made specific reserves consistent with Company policy which resulted in additions to the allowance for expected credit losses totaling $0.1 million for the nine months ended September 30, 2025. There were no additions to the allowance for expected credit losses for the nine months ended September 30, 2026. These additions were charged to credit loss expense, which is included in “selling, general and administrative” on the unaudited condensed consolidated statements of operations and comprehensive income (loss) based on the factors described above.

Substantially all of the allowance for expected credit losses relates to the receivable from the Puerto Rico Electric Power Authority (“PREPA”). Refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, previously filed with the SEC for more information regarding the Settlement Agreement.

PREPA

During the period October 2017 through March 2019, the Company provided infrastructure services in Puerto Rico under master services agreements entered into by Cobra Acquisitions LLC (“Cobra”), one of the Company’s subsidiaries, with the Puerto Rico Electric Power Authority (“PREPA”) to perform repairs to PREPA’s electrical grid as a result of Hurricane Maria. PREPA is currently subject to bankruptcy proceedings, which were filed in July 2017 and are currently pending in the United States District Court for the District of Puerto Rico (the “Title III Court”). On July 22, 2024, Cobra entered into a release and settlement agreement with PREPA and the Financial Oversight and Management Board for Puerto Rico (the “FOMB”), in its capacity as Title III representative for PREPA, to settle all outstanding matters between Cobra and PREPA (the “Settlement Agreement”). Pursuant to the terms of the Settlement Agreement, PREPA paid Cobra approximately $168.4 million in 2024 and, as of September 30, 2026, PREPA owes Cobra $20.0 million, which is payable within seven days following the effective date of PREPA’s plan of adjustment in its bankruptcy proceedings.

The Settlement Agreement will not be fully performed until PREPA remits the remaining $20.0 million payment.

Concentrations of Credit Risk and Significant Customers

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents in excess of federally insured limits, marketable securities and trade receivables. Following is a summary of our significant customers based on percentages of total accounts receivable, net balances at September 30, 2026 and December 31, 2025 and percentages of total revenue derived for the three and nine months ended September 30, 2026 and 2025:


	REVENUE								ACCOUNTS RECEIVABLE, NET
	Three Months Ended September 30,				Nine Months Ended September 30,				At September 30,		At December 31,
	2026		2025		2026		2025		2026		2025
Customer A(a)	10	%	2	%	16	%	1	%	2	%	—	%
Customer B(a)	10	%	10	%	7	%	11	%	8	%	2	%
Customer C(b)	9	%	11	%	7	%	20	%	2	%	4	%
Customer D(c)	—	%	—	%	—	%	—	%	52	%	69	%

(a)Revenue and the related accounts receivable balances earned from Customer A and B were derived from the Company’s rentals services segment.

(b)Revenue and the related accounts receivable balances earned from Customer C were derived from the Company’s natural sand proppant services segment.

(c)The accounts receivable balance with Customer D was derived from the Company’s other services.

Fair Value of Financial Instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.

The fair value hierarchy is based on three levels of input, of which the first two are considered observable and the last unobservable, that may be used to measure fair value. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurements in its entirety requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. The Company uses appropriate valuation techniques based on available inputs to measure the fair values of its assets and liabilities.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Level 1 - Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date.

Level 2 - Observable market-based inputs or unobservable inputs that are corroborated by market data. These are inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.

Level 3 - Unobservable inputs that are not corroborated by market data and may be used with internally developed methodologies that result in management’s best estimate of fair value.

There were no transfers into, or out of, the three levels of fair value hierarchy for the three and nine months ended September 30, 2026 and 2025.

The Company’s financial instruments consist of cash and cash equivalents, marketable securities, restricted cash, accounts receivable, accounts payable as well as financing and operating lease liabilities and financed insurance premium obligations. The carrying values of cash and cash equivalents, restricted cash, accounts receivable and accounts payable approximated fair value on September 30, 2026 and December 31, 2025 due to their short-term nature. The carrying values of amounts outstanding under financing and operating lease liabilities and financed insurance premium obligations approximated fair value on September 30, 2026 and December 31, 2025, as the effective borrowing rates approximated market rates.

Recurring Measurements

The Company’s cash equivalents and marketable securities are measured on a recurring basis and carried at estimated fair value. Cash equivalents consist of money market accounts and U.S. treasury bills which the Company has classified as Level 1 given the active market for these assets. Marketable securities are presented and are also classified as Level 1 due to their quoted prices in active markets. At September 30, 2026 and December 31, 2025, the Company had cash equivalents and marketable securities measured at fair value of $32.7 million and $113.6 million, respectively.

Nonrecurring Measurements

The Company estimates fair value to perform impairment tests on long-lived assets including property, plant and equipment and goodwill. The inputs used to determine such fair value may be based on internally developed cash flow models or market appraisals, both of which would generally be classified within Level 3 in the event that such assets were required to be measured and recorded at fair value.

As discussed in Note 7, the Company changed the classification of its drilling rig assets from held for use to held for sale at March 31, 2025, which required the Company to estimate the fair value of such assets. Cash flow models or market appraisals used to determine such fair value may be based on inputs that are classified within Level 3. The Company determined that the fair value of its drilling rig assets exceeds the carrying value and, therefore, no impairment was recognized.

Common Stock Repurchases and Retirements

The Company accounts for repurchases of its common stock at the amount paid, including direct and incremental costs such as broker commissions. Shares repurchased under the Company’s stock repurchase program are cancelled and retired, with the par value charged to common stock and the excess of the repurchase price over par value recorded as a reduction of additional paid‑in capital.

New Accounting Pronouncements

In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses”, which requires disclosure of specified information about certain costs and expenses. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027, with early adoption permitted, and should be applied either on a prospective basis or retrospective basis. The Company is currently assessing the impact of this ASU on the Company’s unaudited condensed consolidated financial statements.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements (“ASU 2025-11”). The amendments clarify and reorganize existing interim reporting guidance, including the scope of Topic 270 and interim disclosure requirements, and introduce a disclosure principle requiring entities to disclose material events or changes occurring since the most recent annual reporting period. ASU 2025-11 is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2025-11 on its unaudited condensed consolidated financial statements and related disclosures.

Recently Adopted Accounting Pronouncements

In July 2025, the FASB issued ASU 2025-05, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets,” which provides a practical expedient for estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606. The practical expedient allows entities to assume that current conditions as of the balance sheet date remain unchanged over the remaining life of the asset. The Company adopted ASU 2025-05 on January 1, 2026 and elected to apply the practical expedient. Adoption did not have a material impact on the Company’s unaudited condensed consolidated financial statements.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

3. Acquisitions

Acquisition of Mission Construction and BERE Rentals

On June 12, 2026, we acquired all of the outstanding equity interests in Mission Construction LLC (“Mission Construction”), and BERE Rentals LLC (“BERE Rentals”) pursuant to equity purchase agreements with unrelated third-party sellers for aggregate consideration of $6.5 million, funded with cash on hand, including a holdback payable of $0.7 million due within one year of closing and subject to reduction for valid indemnification claims arising from customary representations, warranties and covenants. Both Mission Construction and BERE Rentals provide fiber optic services to utility customers in the midwestern region of the United States. The acquisitions were accounted for as business combinations under ASC 805, Business Combinations, with the results of Mission Construction and BERE Rentals included in the Infrastructure Services segment of our consolidated financial statements from the acquisition date. The acquisitions were undertaken to expand our presence in the fiber optic services market, broaden our services to utility customers, and strengthen our position in the region.

The following table summarizes the fair value of Mission Construction and BERE Rentals as of June 12, 2026:


	Mission Construction		BERE Rentals		Total
Cash and cash equivalents	$	43	$	59	102
Accounts receivable, net	795		323		1,118
Other current assets	—		13		13
Property, plant and equipment	1,454		1,396		2,850
Identifiable intangible assets - customer relationships	295		1,087		1,382
Identifiable intangible assets - trade names	70		161		231
Goodwill	753		394		1,147
Total assets acquired	$	3,410	$	3,433	$	6,843

Accounts payable and accrued liabilities	$	344	$	—	$	344
Total liabilities assumed	$	344	$	—	$	344
Net assets acquired	$	3,066	$	3,433	$	6,499

During the three months ended September 30, 2026, the Company finalized the post-closing net working capital adjustments contemplated by the equity purchase agreements and recorded measurement-period adjustments to the preliminary purchase price allocations. The adjustments decreased goodwill by $0.3 million and were recognized in the period in which they were determined. As of September 30, 2026, a holdback payable of $0.6 million remained outstanding.

The acquired customer relationship and trade name intangible assets each have an estimated useful life of seven years.

4. Discontinued Operations

T&D Transaction

On April 11, 2025, Lion Power Services LLC (“Lion”), a subsidiary of the Company, entered into an Equity Interest Purchase Agreement (the “T&D Agreement”), as the seller, with Peak Utility Services Group, Inc. (“Peak”), as the buyer, pursuant to which Lion sold all equity interests in its wholly-owned subsidiaries 5 Star Electric, LLC (“5 Star”), Higher Power Electrical, LLC (“Higher Power”) and Python Equipment LLC (“Python”) (the “T&D Transaction”). These subsidiaries provided transmission, distribution and substation services and were previously included in the Company’s Infrastructure segment, as defined in Note 19. The T&D Transaction was completed simultaneously with the signing of the T&D Agreement on April 11, 2025. The aggregate sales price in connection with the T&D Transaction was approximately $108.7 million. Of the $108.7 million, $98.3 million was paid to Lion and the remaining $10.4 million was deposited into an escrow account, pursuant to the terms of the T&D Agreement. Of the $10.4 million deposited into an escrow account, $0.8 million has been received, leaving $9.6 million left in the restricted cash balance. The T&D Agreement includes customary representations, warranties and covenants by the parties. In addition, the T&D Agreement provides for customary indemnification rights with respect to a breach of a representation, warranty or covenant by either party, subject to customary thresholds and caps on liability.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Pressure Pumping Transaction

On June 16, 2025, Stingray Pressure Pumping LLC (“Stingray”) and Mammoth Equipment Leasing LLC (“Mammoth Equipment”), subsidiaries of the Company, entered into an Equipment Purchase Agreement (the “Pressure Pumping Agreement”), as the sellers, with MGB Manufacturing, LLC (“MGB”), as the buyer, pursuant to which Stingray and Mammoth Equipment sold all of the Company’s equipment used in its hydraulic fracturing services, which was included in the Company’s historical well completion segment, to MGB for $15.0 million (the “Pressure Pumping Transaction” and collectively with the T&D Transaction, the “Transactions”). The Pressure Pumping Transaction was completed simultaneously with the signing of the Pressure Pumping Agreement on June 16, 2025. In conjunction with the Pressure Pumping Transaction, the Company has ceased operations of its sand hauling and equipment manufacturing services, which operations primarily served Stingray and Mammoth Equipment. All assets and liabilities associated with the Company’s sand hauling and equipment manufacturing services are included in discontinued operations.

Engineering Transaction

On December 2, 2025, Mammoth Energy Partners LLC ("MEP"), a subsidiary of the Company, entered into an Equity Purchase Agreement (the “Agreement”), as the seller, with Qualus, LLC (“Qualus”), as the buyer, and Aquawolf LLC ("Aquawolf"), MEP's wholly-owned subsidiary and the subject of the sale, as a party to the Agreement. Pursuant to the Agreement, MEP sold all equity interests in Aquawolf, which was included in the Company’s Infrastructure segment, to Qualus for $30.0 million (the “Engineering Transaction” and collectively with the Pressure Pumping Transaction and T&D Transaction, the “Transactions”)). The Engineering Transaction was completed simultaneously with the signing of the Agreement on December 2, 2025. The aggregate sales price in connection with the Transaction was approximately $30.0 million. Of the $30.0 million, $23.5 million was paid to MEP and $2.5 million was deposited into an escrow account, pursuant to the terms of the Agreement. Of the $2.5 million deposited into an escrow account, $0.2 million has been received, leaving $2.3 million left in the restricted cash balance. The Agreement includes customary representations, warranties and covenants by the parties. In addition, the Agreement provides for customary indemnification rights with respect to a breach of a representation, warranty or covenant by either party, subject to customary thresholds and caps on liability.

The Transactions and ceasing operations of the Company’s sand hauling and equipment manufacturing services reflect a strategic shift in the Company’s business. Therefore, the results of operations and cash flows of the services discussed above are classified as discontinued operations in the Company’s unaudited condensed consolidated statements of operations and comprehensive income (loss) and unaudited condensed consolidated statements of cash flows for all periods presented. The related assets and liabilities associated with the discontinued operations are included in the financial statement line items labeled discontinued operations in the unaudited condensed consolidated balance sheets as of September 30, 2026 and December 31, 2025. Amounts presented in discontinued operations have been derived from our consolidated financial statements and accounting records using the historical basis of assets, liabilities, results of operations and cash flows of the services discussed above. The discontinued operations exclude general corporate allocations.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following table presents the major classes of assets and liabilities of discontinued operations (in thousands):


	Pressure Pumping Transaction
		September 30,		December 31,
		2026		2025
Carrying amounts of the major classes of assets included in discontinued operations:
Cash and cash equivalents		$	30	$	50

Accounts receivable, net		1,003		1,036
Inventories		264		264
Other current assets		—		168
Total current assets of discontinued operations		1,297		1,518

Property, plant and equipment, net		6		3,678



Total noncurrent assets of discontinued operations		6		3,678

Total assets of discontinued operations		$	1,303	$	5,196

Carrying amounts of the major classes of liabilities included in discontinued operations:
Accounts payable		$	4	$	41
Accrued expenses and other current liabilities		181		342


Total current liabilities of discontinued operations		185		383





Total liabilities of discontinued operations		$	185	$	383

MAMMOTH ENERGY SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following tables present the major components from discontinued operations in the Company’s unaudited condensed consolidated statements of operations and comprehensive income (loss) (in thousands):


	T&D Transaction				Pressure Pumping Transaction				Engineering Transaction
	Three Months Ended September 30,				Three Months Ended September 30,				Three Months Ended September 30,
	2026		2025		2026		2025		2026		2025

Services revenue	$	—	$	—	$	—	$	207	$	—	$	3,949

COST, EXPENSES AND GAINS
Cost of revenue	—		519		57		2,286		—		3,135
Selling, general and administrative	38		53		16		310		—		411
Depreciation and amortization	—		—		—		34		—		5
Gains on disposal of assets, net	—		—		—		(851)		—		—

Total cost, expenses and gains, net	38		572		73		1,779		—		3,551
Operating (loss) income	(38)		(572)		(73)		(1,572)		—		398

OTHER (INCOME) EXPENSE
Interest expense (income), net	—		—		—		44		—		(193)
Other expense, net	57		—		—		1		—		1

Total other expense (income), net	57		—		—		45		—		(192)
(Loss) income before income taxes	(95)		(572)		(73)		(1,617)		—		590
Benefit for income taxes	—		(1,632)		—		—		—		—
Net (loss) income from discontinued operations, net of income taxes	$	(95)	$	1,060	$	(73)	$	(1,617)	$	—	$	590

MAMMOTH ENERGY SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


	T&D Transaction				Pressure Pumping Transaction				Engineering Transaction
	Nine Months Ended September 30,				Nine Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025		2026		2025

Services revenue	$	—	$	29,553	$	—	$	41,916	$	—	$	11,967

COST, EXPENSES AND GAINS
Cost of revenue	(14)		25,897		(242)		41,793		—		9,010
Selling, general and administrative	115		1,899		87		1,552		—		1,169
Depreciation and amortization	—		957		3		5,738		—		18
Gains on disposal of assets, net	—		(20)		(855)		(1,488)		—		—
Impairment of goodwill	—		—		—		9,214		—		—
Total cost, expenses and gains, net	101		28,733		(1,007)		56,809		—		10,197
Operating (loss) income	(101)		820		1,007		(14,893)		—		1,770

OTHER (INCOME) EXPENSE
Interest expense (income), net	—		59		50		(420)		—		(322)
Other (income) expense, net	57		(122)		2		4		—		—
(Gain) loss on divestiture	—		(83,747)		—		24,974		27		—
Total other expense (income), net	57		(83,810)		52		24,558		27		(322)
(Loss) income before income taxes	(158)		84,630		955		(39,451)		(27)		2,092
Provision (benefit) for income taxes	—		1,418		—		(1,262)		—		1
Net (loss) income from discontinued operations, net of income taxes	$	(158)	$	83,212	$	955	$	(38,189)	$	(27)	$	2,091

MAMMOTH ENERGY SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

5. Revenue from Contracts with Customers

The Company’s primary revenue streams include rental services and aviation sales, infrastructure services, natural sand proppant services, accommodation services and drilling services. See Note 19 for the Company’s revenue disaggregated by type.

Certain of the Company’s customer contracts include provisions entitling the Company to a termination penalty when the customer invokes its contractual right to terminate prior to the contract’s nominal end date. The termination penalties in the customer contracts vary, but are generally considered substantive for accounting purposes and create enforceable rights and obligations throughout the stated duration of the contract. The Company accounts for a contract cancellation as a contract modification in the period in which the customer invokes the termination provision. The determination of the contract termination penalty is based on the terms stated in the related customer agreement. As of the modification date, the Company updates its estimate of the transaction price using the expected value method, subject to constraints, and recognizes the amount over the remaining performance period.

Rental, Accommodation and Drilling Services

Rental services, accommodation services and drilling services are generally provided pursuant to purchase orders, master service agreements, customer contracts or on a spot market basis. Services are typically billed on a day rate, hourly, contract or utilization basis. Performance obligations for these services are satisfied over time and revenue is recognized as services are performed using an appropriate measure of output. Contract durations are generally short-term in nature and may range from a single day to several months.

In addition, the Company generates revenue from aviation leasing and aviation sales. Revenue from aviation leases is recognized in accordance with the contractual terms. Revenue from aviation equipment sales is recognized at the point in time when control of the equipment transfers to the customer, generally upon delivery. Revenue from aviation leasing and other rental services is included in “services revenue”, while revenue from aviation sales is included in “product revenue” on the unaudited condensed consolidated statements of operations and comprehensive income (loss). The cost of aviation equipment sold is included in “product cost of revenue”. The proceeds from sale of aviation equipment are included in investing activities in the unaudited condensed consolidated statements of cash flows.

Infrastructure Services

Infrastructure services are typically provided pursuant to master service agreements, repair and maintenance contracts or fixed price and non-fixed price installation contracts. Pricing under these contracts may be unit priced, cost-plus/hourly (or time and materials basis) or fixed price (or lump sum basis). Generally, the Company accounts for infrastructure services as a single performance obligation satisfied over time. In certain circumstances, the Company supplies materials that are utilized during the jobs as part of the agreement with the customer. The Company accounts for these infrastructure agreements as multiple performance obligations satisfied over time. Revenue is recognized over time as work progresses based on progress toward completion utilizing an appropriate measure of output. Under certain customer contracts in our infrastructure services segment, the Company warranties equipment and labor performed for a specified period following substantial completion of the work.

Natural Sand Proppant Services

The Company sells natural sand proppant through sand supply agreements with its customers. Under these agreements, sand is typically sold at a flat rate per ton or a flat rate per ton with an index-based adjustment. The Company recognizes revenue at the point in time when the customer obtains legal title to the product, which may occur at the production facility, rail origin or at the destination terminal.

Certain of the Company’s sand supply agreements contained a minimum volume commitment related to sand purchases whereby the Company charges a shortfall payment if the customer fails to meet the required minimum volume commitment. These agreements may also contain make-up provisions whereby shortfall payments can be applied in future periods against purchased volumes exceeding the minimum volume commitment. If a make-up right exists, the Company has future performance obligations to deliver excess volumes of product in subsequent months. In accordance with ASC 606, if the customer fails to meet the minimum volume commitment, the Company will assess whether it expects the customer to fulfill its unmet commitment during the contractually specified make-up period based on discussions with the customer and management’s knowledge of the business. If the Company expects the customer will make-up deficient volumes in future periods, revenue related to shortfall payments will be deferred and recognized on the earlier of the date on which the customer utilizes make-up volumes or the likelihood that the customer will exercise its right to make-up deficient volumes becomes remote. If the Company does not expect the customer will make-up deficient volumes in

MAMMOTH ENERGY SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

future periods, the breakage model will be applied and revenue related to shortfall payments will be recognized when the model indicates the customer’s inability to take delivery of excess volumes. The Company did not recognize any shortfall revenue during the three and nine months ended September 30, 2026. The Company recognized shortfall revenue totaling $1.6 million during the nine months ended September 30, 2025.

In certain of the Company’s sand supply agreements, the customer obtains control of the product when it is loaded into rail cars and the customer reimburses the Company for all freight charges incurred. The Company has elected to account for shipping and handling as activities to fulfill the promise to transfer the sand. If revenue is recognized for the related product before the shipping and handling activities occur, the Company recognizes the related costs of those shipping and handling activities.

Practical Expedients

The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts in which variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied distinct good or service that forms part of a single performance obligation.

Contract Balances

The Company had contract liabilities of $1.1 million and $0.3 million at September 30, 2026 and December 31, 2025, which are included in “accrued expenses and other current liabilities” on the unaudited condensed consolidated balance sheets. During the nine months ended September 30, 2026, the Company recognized $0.1 million of revenue that was included in the contract liability balance as of December 31, 2025. The Company did not have any contract assets at September 30, 2026 and December 31, 2025.

Performance Obligations

Revenue recognized in the current period from performance obligations satisfied in previous periods was immaterial for the three and nine months ended September 30, 2026 and 2025. At September 30, 2026, the Company had unsatisfied performance obligations totaling $1.7 million, which will be recognized over the next 4 months.

6. Inventories

Inventories consist of raw sand, processed sand and parts available for sale and supplies used in performing services, as well as aviation equipment being repaired for their intended use. Inventory is stated at the lower of cost or net realizable value on an average cost basis. The Company assesses the valuation of its inventories based upon specific usage, future utility, obsolescence and other factors. A summary of the Company’s inventories is shown below (in thousands):


	September 30,		December 31,
	2026		2025
Supplies	$	1,350	$	1,913

Work in process	13,152		1,482
Finished goods	258		688
Total inventories	$	14,760	$	4,083

MAMMOTH ENERGY SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

7. Property, Plant and Equipment, net and Assets Held for Sale

Property, plant and equipment, net includes the following (in thousands):


		September 30,		December 31,
	Useful Life	2026		2025
Aviation equipment(a)	3-10 years	$	97,459	$	43,498
Machinery and equipment	7-20 years	80,165		53,774
Buildings and leasehold improvements	15-39 years	29,136		30,100
Rail improvements	10-20 years	11,759		11,759
Vehicles, trucks and trailers	5-10 years	10,844		13,044
Drilling rigs and directional drilling equipment	3-15 years	9,150		13,062
Land	N/A	6,025		6,025
Other property, plant and equipment	3-15 years	6,373		6,721
		250,911		177,983
Equipment not yet placed in service		35,740		25,970
		286,651		203,953
Less: Accumulated depreciation(b)		102,307		97,856
Total property, plant and equipment, net		$	184,344	$	106,097

(a) This equipment relates to assets leased and available to be leased to customers under operating leases.

(b) Includes accumulated depreciation of $15.7 million and $5.7 million at September 30, 2026 and December 31, 2025, respectively, related to assets under operating leases.

Depreciation, depletion, amortization and accretion

A summary of depreciation, depletion, amortization and accretion is below (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Depreciation	$	5,497	$	1,908	$	13,280	$	6,178
Amortization	91		14		118		41
Depletion and accretion	969		829		1,263		1,442
Depreciation, depletion, amortization and accretion	$	6,557	$	2,751	$	14,661	$	7,661

Assets Held for Sale

The Company’s assets held for sale consist solely of its contract drilling assets, which were classified as held for sale during the first quarter of 2025 pursuant to a plan to divest these assets. The Company continues to actively market the assets at a price that is reasonable in relation to their current fair value and remains committed to its plan of sale. At September 30, 2026 and December 31, 2025, assets held for sale totaled $2.2 million and $4.3 million and were recorded in “current assets held for sale” on the unaudited condensed consolidated balance sheets. These assets are measured at the lower of their carrying amount or fair value less costs to sell, and no impairment was recognized during the three and nine months ended September 30, 2026.

8. Equity Method Investment

On December 21, 2018, Cobra Aviation Services LLC (“Cobra Aviation”) and Wexford Partners Investment Co. LLC (“Wexford Investment”), a related party, formed a joint venture under the name of Brim Acquisitions LLC (“Brim Acquisitions”) to acquire all outstanding equity interest in Brim Equipment Leasing, Inc. (“Brim Equipment”) for a total purchase price of approximately $2.0 million. Cobra Aviation owns a 49% economic interest and Wexford Investment owns a 51% economic interest in Brim Acquisitions, and each member contributed its pro rata portion of Brim Acquisitions’ initial capital of $2.0 million. Brim Acquisitions, through Brim Equipment, owns three commercial helicopters and leases two commercial helicopters for operations, which it uses to provide a variety of services, including short haul, aerial ignition, hoist operations, aerial photography, fire suppression, construction services, animal/capture/survey, search and rescue, airborne law enforcement, power line construction, precision long line operations, pipeline construction and survey, mineral and seismic exploration, and aerial seeding and fertilization.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The Company uses the equity method of accounting to account for its investment in Brim Acquisitions, which had a carrying value of approximately $2.8 million and $3.2 million at September 30, 2026 and December 31, 2025, respectively. The investment is included in “other non-current assets” on the unaudited condensed consolidated balance sheets. The Company recorded equity method loss to its investment of $0.1 million and $0.4 million for the three and nine months ended September 30, 2026, respectively, and equity method loss of $0.4 million and $0.6 million for the three and nine months ended September 30, 2025, respectively, which is included in “other income (expense), net” on the unaudited condensed consolidated statements of operations and comprehensive income (loss). The investment in Brim Acquisitions is included in the Company’s Rentals segment, as defined in Note 19. The Company made additional equity contributions of $0.4 million during the year ended December 31, 2025 and no contributions were made during the nine months ended September 30, 2026.

9. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities included the following (in thousands):


	September 30,		December 31,
	2026		2025
State and local taxes payable	$	12,561	$	12,332
Customer deposits	2,548		1,049
Deferred revenue	1,099		308
Accrued compensation and benefits	1,054		821
Insurance reserves	491		1,166
Financed insurance premiums(a)	—		1,936



Other	1,487		724


Total accrued expenses and other current liabilities	$	19,240	$	18,336

(a)Financed insurance premiums are due in monthly installments, are unsecured and mature within the twelve-month period following the close of the year. At December 31, 2025, the applicable interest rate associated with financed insurance premiums ranged from 5.49% to 6.49%. The Company had no financed insurance premiums outstanding at September 30, 2026.

10. Debt

Revolving Credit Facility

On May 8, 2026, the Company entered into a new $25.0 million revolving credit agreement with Fifth Third Bank, National Association (the “new revolving credit facility”) and terminated its prior revolving credit facility, dated October 16, 2023, as amended (the “prior revolving credit facility”). The new revolving credit facility matures on May 8, 2029 and may be increased to up to $50.0 million at the Company’s request, subject to the lender’s sole discretion. Borrowings bear interest at one-month Term SOFR plus 1.50% per annum, and the Company pays a 0.20% per annum fee on the unused commitments. The facility is secured by a first-priority lien on cash and investment securities held in a collateral account maintained with the lender, the value of which, after applying specified advance rates, must equal at least 100% of outstanding borrowings and letter of credit obligations. The new revolving credit facility is not guaranteed by the Company’s subsidiaries and does not contain a financial maintenance covenant based on the Company’s operating results or any restriction on the payment of dividends or the repurchase of the Company’s common stock. In connection with the termination of the prior revolving credit facility, the Company wrote off $1.2 million of unamortized debt issuance costs during the nine months ended September 30, 2026.

At September 30, 2026, the new revolving credit facility was undrawn and there was $20.0 million of borrowing capacity under the facility, after giving effect to $5.0 million of outstanding letters of credit deemed issued thereunder. At December 31, 2025, the prior revolving credit facility was undrawn and there was $36.7 million of borrowing capacity under that facility, after giving effect to $5.0 million of outstanding letters of credit. The Company was in compliance with all covenants under the new revolving credit facility at September 30, 2026.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

11. Variable Interest Entities

Dire Wolf Energy Services LLC (“Dire Wolf”) and Predator Aviation LLC (“Predator Aviation”), wholly owned subsidiaries of the Company, are party to Voting Trust Agreements with TVPX Aircraft Solutions Inc. (the “Voting Trustee”). Under the Voting Trust Agreements, Dire Wolf transferred 100% of its membership interest in Cobra Aviation and Predator Aviation transferred 100% of its membership interest in Leopard Aviation LLC (“Leopard”) to the respective Voting Trustees in exchange for Voting Trust Certificates. Dire Wolf and Predator Aviation retained the obligation to absorb all expected returns or losses of Cobra Aviation and Leopard. Prior to the transfer of the membership interest to the Voting Trustee, Cobra Aviation was a wholly owned subsidiary of Dire Wolf and Leopard was a wholly owned subsidiary of Predator Aviation. Cobra Aviation owns aviation equipment, including eight aircraft that are owned through individual trusts that are each structured as separate legal entities, and 49% of the equity interest in Brim Acquisitions. Leopard owns aviation equipment. Dire Wolf and Predator Aviation entered into the Voting Trust Agreements in order to meet certain registration requirements.

Dire Wolf’s and Predator Aviation’s voting rights are not proportional to their respective obligations to absorb expected returns or losses of Cobra Aviation and Leopard, respectively, and all of Cobra Aviation’s and Leopard’s activities are conducted on behalf of Dire Wolf and Predator Aviation, which have disproportionately fewer voting rights; therefore, Cobra Aviation and Leopard meet the criteria of a VIE. Cobra Aviation and Leopard’s operational activities are directed by Dire Wolf’s and Predator Aviation’s officers and Dire Wolf and Predator Aviation have the option to terminate the Voting Trust Agreements at any time. Therefore, the Company, through Dire Wolf and Predator Aviation, is considered the primary beneficiary of the VIEs and consolidates Cobra Aviation and Leopard at September 30, 2026.

12. Income Taxes

The Company recorded income tax expense from continuing operations of $3.4 million for the nine months ended September 30, 2026 compared to $2.0 million for the nine months ended September 30, 2025. The Company’s effective tax rates were 47.7% and (4.1)% for the nine months ended September 30, 2026 and 2025, respectively.

The effective tax rate for the nine months ended September 30, 2026 and 2025, respectively, differed from the statutory rate of 21% primarily due to changes in the valuation allowance and interest and penalties recognized during the period.

On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted in the United States. The legislation made several changes to U.S. federal income tax law, including provisions allowing 100% bonus depreciation for certain qualifying depreciable property acquired and placed in service after January 19, 2025, and changes to the business interest expense limitation under Section 163(j) for tax years beginning after December 31, 2024. The Company considered the impact of these provisions to estimate its income tax provision for the nine months ended September 30, 2026, including the expected impact on future cash taxes.

13. Leases

Lessee Accounting

The Company recognizes a lease liability equal to the present value of the lease payments and an operating lease right-of-use asset representing its right to use the underlying asset for the lease term for all leases with a term in excess of 12 months. For operating leases, lease expense for lease payments is recognized on a straight-line basis over the lease term, while finance leases include both an operating expense and an interest expense component. For all leases with a term of 12 months or less, the Company has elected the practical expedient to not recognize lease assets and liabilities and recognizes lease expense for these short-term leases on a straight-line basis over the lease term.

The Company’s operating leases are primarily for rail cars, real estate, and equipment and its finance leases are primarily for vehicles and equipment. Generally, the Company does not include renewal or termination options in its assessment of the leases unless extension or termination of certain assets is deemed to be reasonably certain. The accounting for some of the Company’s leases may require significant judgment, which includes determining whether a contract contains a lease, determining the incremental borrowing rates to utilize in the net present value calculation of lease payments for lease agreements which do not provide an implicit rate and assessing the likelihood of renewal or termination options. Lease agreements that contain a lease and non-lease component are generally accounted for as a single lease component.

The rate implicit in the Company’s leases is not readily determinable. Therefore, the Company uses its incremental borrowing rate based on information available at the commencement date of its leases in determining the present value of

MAMMOTH ENERGY SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

lease payments. The Company’s incremental borrowing rate reflects the estimated rate of interest that it would pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

Lease expense consisted of the following for the three and nine months ended September 30, 2026 and 2025 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Operating lease expense	$	605	$	1,019	$	1,792	$	3,675
Short-term lease expense	321		—		741		—

Finance lease expense:
Amortization of right-of-use assets	27		32		52		102
Interest on lease liabilities	9		3		17		12
Total lease expense	$	962	$	1,054	$	2,602	$	3,789

Right-of-use assets and liabilities related to finance leases are recorded in the following line items on the unaudited condensed consolidated balance sheets at September 30, 2026 and December 31, 2025 (in thousands):


	September 30,		December 31,
	2026		2025





Property, plant and equipment, net	$	446	$	102
Accrued expenses and other current liabilities	103		49
Other liabilities	303		26

Other supplemental information related to leases for the three and nine months ended September 30, 2026 and 2025 and at September 30, 2026 and December 31, 2025 is as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	712	$	1,265	$	2,296	$	3,935
Operating cash flows from finance leases	9		3		17		12
Financing cash flows from finance leases	27		65		60		203
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	504	$	452	$	2,477	$	2,944
Finance leases	—		—		395		—


	September 30,		December 31,
	2026		2025
Weighted-average remaining lease term:
Operating leases	3.2 years		3.5 years
Finance leases	2.3 years		1.5 years
Weighted-average discount rate:
Operating leases	9.2	%	9.8	%
Finance leases	8.8	%	10.1	%

MAMMOTH ENERGY SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Maturities of lease liabilities at September 30, 2026 are as follows (in thousands):


	Operating Leases		Finance Leases
Remainder of 2026	$	856	$	36
2027	2,386		146
2028	546		88
2029	52		196
2030	52		—
Thereafter	537		—
Total lease payments	4,429		466
Less: Present value discount	631		60
Present value of lease payments	$	3,798	$	406

Lessor Accounting

Certain rental and accommodation service arrangements contain lease components under ASC 842. The Company has elected the practical expedient to combine the lease and non-lease components when permitted. Revenue from these arrangements is generally recognized over time based on the contractual rental period. The Company recognized lease revenue of $4.4 million and $13.2 million during the three and nine months ended September 30, 2026, respectively, and $1.0 million and $2.2 million during the three and nine months ended September 30, 2025, respectively, which is included in “services revenue” and “services revenue - related parties” on the unaudited condensed consolidated statements of operations and comprehensive income (loss).

Maturities of lease payments for the Company’s outstanding long-term leases at September 30, 2026 are as follows (in thousands):



Remainder of 2026	$	3,170
2027	8,421
2028	6,632
2029	2,887
2030	1,319
Thereafter	140
Total lease payments	$	22,569

MAMMOTH ENERGY SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

14. Earnings Per Share

Reconciliations of the components of basic and diluted net earnings per share are presented in the table below (in thousands, except per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Basic and diluted earnings per share:

Net income (loss) from continuing operations	$	294	$	(12,648)	$	3,783	$	(51,418)
Net (loss) income from discontinued operations, net of income taxes	(168)		33		770		47,114
Net income (loss)	$	126	$	(12,615)	$	4,553	$	(4,304)

Weighted average common shares outstanding(a)	48,128		48,358		48,207		48,245

Basic and diluted earnings (loss) per share from continuing operations	$	0.01	$	(0.26)	$	0.08	$	(1.07)
Basic and diluted earnings per share from discontinued operations	—		—		0.02		0.98
Basic and diluted earnings (loss) per share	$	0.01	$	(0.26)	$	0.10	$	(0.09)

(a) Excludes 62 shares for the nine months ended September 30, 2025 of potentially dilutive restricted stock awards as their effect was antidilutive under the treasury stock method.

15. Equity Based Compensation

During June 2026, all outstanding Specified Member and Non-Employee Member awards were settled through the transfer of shares of Mammoth common stock by the majority equity holder of MEH Sub. As a result, all rights under the awards were cancelled and extinguished. The Company recognized equity based compensation expense of approximately $0.5 million during the three months ended June 30, 2026, with a corresponding capital contribution recorded in equity. No unrecognized compensation cost remained as of September 30, 2026.

16. Stock Based Compensation

On April 29, 2024, the board of directors of Mammoth adopted the Mammoth Energy Services, Inc. 2024 Equity Incentive Plan (the “2024 Plan”). The 2024 Plan authorizes the Company’s board of directors or the compensation committee of the Company’s board of directors to grant restricted stock, restricted stock units, stock appreciation rights, stock options and performance awards. There are a maximum of 1.9 million shares of common stock reserved for issuance under the 2024 Plan, of which 1.9 million shares of common stock remain available for future grants under the 2024 Plan at September 30, 2026.

Restricted Stock Units

The fair value of restricted stock unit awards was determined based on the fair market value of the Company’s common stock on the date of the grant. This value is amortized over the vesting period. At September 30, 2026, there was no unrecognized compensation cost. No shares vested during the three and nine months ended September 30, 2026. The total fair value of shares vested was $0.6 million during the nine months ended September 30, 2025. Included in “selling, general and administrative” on the unaudited condensed consolidated statements of operations and comprehensive income (loss) is stock based compensation expense of $0.4 million for the nine months ended September 30, 2025.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

17. Related Party Transactions

Transactions between the subsidiaries of the Company and the following companies are included in related party transactions: Wexford, El Toro Resources LLC, Caliber Investment Group LLC, Grizzly Oil Sands ULC, Brim Equipment and Executive Express Aviation LLC. The Company provides accommodations services to Grizzly Oil Sands ULC and engages in aircraft leasing arrangements with Brim Equipment. Revenue from related party transactions was $0.7 million and $1.4 million for the three and nine months ended September 30, 2026, respectively, and $0.5 million and $1.2 million for the three and nine months ended September 30, 2025, respectively. Costs incurred from related party transactions were $0.1 million and $0.3 million for the three and nine months ended September 30, 2025, respectively. Accounts receivable from related party transactions were $0.4 million at each of September 30, 2026 and December 31, 2025, which is included in “accounts receivable, net” on the unaudited condensed consolidated balance sheets. There were no accounts payable for related party transactions at September 30, 2026 and December 31, 2025.

On December 21, 2018, Cobra Aviation purchased two commercial helicopters, spare parts, support equipment and aircraft documents from Brim Equipment. Following these transactions, and also on December 21, 2018, Cobra Aviation formed a joint venture with Wexford Investment named Brim Acquisitions to acquire all outstanding equity interests in Brim Equipment. Cobra Aviation owns a 49% economic interest and Wexford Investment owns a 51% economic interest in Brim Acquisitions, and each member contributed its pro rata portion of Brim Acquisitions’ initial capital of $2.0 million. Wexford Investment is an entity controlled by Wexford. Cobra Aviation and Leopard each lease one helicopter to Brim Equipment under the terms of aircraft lease and management agreements.

On February 23, 2026, Mammoth Energy Partners LLC, a subsidiary of the Company, entered into a sublease agreement with El Toro Resources LLC, an entity controlled by Wexford and a related party of the Company. The agreement was subject to approval by Mammoth Energy Partners LLC's landlord, which approval was obtained on March 16, 2026. The sublease relates to office space located at 14201 Caliber Drive, Suite 200, Oklahoma City, Oklahoma. The sublease began on June 1, 2026 and extends through May 31, 2027, with an option to extend through April 30, 2028. The aggregate minimum lease payments under the agreement are approximately $0.2 million.

On June 2, 2026, and July 28, 2026, Cobra Aviation, a subsidiary of the Company, entered into separate aircraft lease agreements with Executive Express Aviation LLC, an entity controlled by Wexford and a related party of the Company. The first lease relates to a Pilatus Model PC12/45 aircraft, while the second lease relates to a Raytheon Aircraft Company Model 1900D aircraft. Both leases were terminated on October 23, 2026.

18. Commitments and Contingencies

Commitments

From time to time, the Company may enter into agreements with suppliers that contain minimum purchase obligations and agreements to purchase capital equipment. Aggregate future minimum payments under these obligations in effect at September 30, 2026 were approximately $36.8 million.

Letters of Credit

The Company had outstanding letters of credit related to environmental remediation and insurance programs that were issued under the Company’s revolving credit facility, which is collateralized by cash and investment securities held in a collateral account maintained with the lender, totaling $5.0 million at September 30, 2026 and December 31, 2025.

Insurance

The Company has insurance coverage for physical partial loss to its assets, employer’s liability, automobile liability, commercial general liability, workers’ compensation and insurance for other specific risks. At September 30, 2026 and December 31, 2025, there was no deductible for the workers’ compensation policy. At September 30, 2026 and December 31, 2025, the Company’s primary automobile liability policy required a deductible per occurrence of up to $0.1 million.

Effective November 1, 2024, the Company became party to a deductible reimbursement insurance policy from a protected cell captive insurance company that covers losses between $0.1 million and the $0.5 million deductible under its primary auto liability policy that was in effect through October 31, 2025. Also effective November 1, 2024, the Company became a member of a group captive insurance company that covers one layer of its auto liability coverage.

The Company establishes liabilities for the unpaid deductible portion of claims incurred based on estimates. At September 30, 2026 and December 31, 2025, total accrued claims for continuing and discontinued operations were $0.5 million and $1.2 million, respectively. Of this amount, $0.3 million and $0.4 million at September 30, 2026 and December 31, 2025, respectively, relate to continuing operations.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The Company also has insurance coverage for directors and officers liability. As of September 30, 2026 and December 31, 2025, the directors and officers liability policy had a deductible per occurrence of $1.5 million and an aggregate deductible of $10.0 million. As of September 30, 2026 and December 31, 2025, the Company did not have any accrued claims for directors and officers liability.

Effective January 1,  2026, the Company transitioned to a fully insured employee health insurance plan. Through December 31, 2025, the Company self-insured its employee health insurance. At September 30, 2026 and December 31, 2025, total accrued claims for continuing and discontinued operations were $0.1 million and $0.9 million, respectively. Of these amounts, $0.1 million and $0.3 million at September 30, 2026 and December 31, 2025, respectively, relate to continuing operations. These estimates may change in the near term as actual claims continue to develop.

Bonds

In the ordinary course of business, the Company is required to provide bid bonds to certain customers in the infrastructure services segment as part of the bidding process. These bonds provide a guarantee to the customer that the Company, if awarded the project, will perform under the terms of the contract. Bid bonds are typically provided for a percentage of the total contract value. Additionally, the Company may be required to provide performance and payment bonds for contractual commitments related to projects in process. These bonds provide a guarantee to the customer that the Company will perform under the terms of a contract and that the Company will pay subcontractors and vendors. If the Company fails to perform under a contract or to pay subcontractors and vendors, the customer may demand that the surety make payments or provide services under the bond. The Company must reimburse the surety for expenses or outlays it incurs. At September 30, 2026 and December 31, 2025, there were no outstanding performance and payment bonds and no outstanding bid bonds that related to the Company's continuing operations.

Litigation

PREPA

Foreman Electric Services, Inc. (“Foreman”) and related parties asserted claims against Mammoth and Cobra arising from Puerto Rico restoration work performed by Cobra. As discussed in Note 2, PREPA owes Cobra $20.0 million as of September 30, 2026 pursuant to the Settlement Agreement entered into in July 2024. Payment is due following the effective date of PREPA's plan of adjustment.

Other Litigation

In July 2025, the Company settled the matter with Foreman. The settlement did not have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows.

The Company is routinely involved in state and local tax audits. During 2015, the State of Ohio assessed taxes on the purchase of equipment the Company believes is exempt under state law. The Company appealed the assessment and a hearing was held in 2017. As a result of the hearing, the Company received a decision from the State of Ohio, which the Company appealed. On February 25, 2022, the Company received an unfavorable decision on the appeal. The Company appealed the decision. On August 2, 2023, the Ohio Supreme Court affirmed the ruling in part and reversed the ruling in part. The Company received the final assessment in April 2025. It did not have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows.

Cobra has been named in 15 lawsuits brought by municipalities in Puerto Rico seeking construction excise taxes and volume of business taxes associated with restoration work performed in Puerto Rico. Several adverse judgments have been entered, and certain matters remain subject to ongoing appellate and post-judgment proceedings. Cobra continues to challenge these assessments and intends to vigorously defend these matters. In connection with the Settlement Agreement entered into with PREPA, PREPA and related governmental parties have agreed to cooperate with Cobra in connection with the resolution of these matters. However, there can be no assurance that these efforts will be successful. Based on the current status of the proceedings, management is unable to reasonably estimate a range of possible loss, if any, beyond amounts already accrued. Accordingly no additional liability has been recorded. The Company will continue to evaluate these matters as additional information becomes available.

On April 16, 2019, Christopher Williams, a former employee of Higher Power Electrical, LLC, filed a putative class and collective action complaint titled Christopher Williams, individually and on behalf of all others similarly situated v. Higher Power Electrical, LLC, Cobra Acquisitions LLC, and Cobra Energy LLC in the U.S. District Court for the District of Puerto Rico. On June 24, 2019, the complaint was amended to replace Mr. Williams with Matthew Zeisset as the

MAMMOTH ENERGY SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

named plaintiff. The plaintiff alleges the defendant failed to pay overtime wages to a class of workers in compliance with the Fair Labor Standards Act and Puerto Rico law. On August 21, 2019, upon request of the parties, the Court stayed proceedings in the lawsuit and administratively closed the case pending completion of individual arbitration proceedings initiated by Mr. Zeisset and opt-in plaintiffs. Other claimants subsequently initiated additional individual arbitration proceedings asserting similar claims. The Company has agreed to settlements with a portion of the claimants. Arbitrations remain pending for the remaining claimants. The Company will continue to vigorously defend the arbitrations. The Company has recognized an estimated liability related to the remaining complaints, which is included in “accounts payable” in the accompanying unaudited condensed consolidated balance sheets. The amount required to resolve these matters may ultimately increase or decrease from the Company’s estimated amount as the matters progress.

The Company is involved in various other legal proceedings in the ordinary course of business. Although the Company cannot predict the outcome of these proceedings, legal matters are subject to inherent uncertainties and there exists the possibility that the ultimate resolution of these matters could have a material impact on the Company’s business, financial condition, results of operations or cash flows.

Defined Contribution Plan

The Company sponsors a 401(k) defined contribution plan for the benefit of substantially all employees at their date of hire. The plan allows eligible employees to contribute up to 92% of their annual compensation, not to exceed annual limits established by the federal government. The Company makes discretionary matching contributions of up to 3% of an employee’s compensation and may make additional discretionary contributions for eligible employees. For the three and nine months ended September 30, 2026 and 2025, the Company paid $0.1 million, $0.3 million, $0.2 million and $0.9 million, respectively, in contributions to the plan. Of these amounts for the three and nine months ended September 30, 2026 and 2025, $0.1 million, $0.3 million, $0.1 million and $0.2 million, respectively, relates to continuing operations.

19. Reportable Segments

The Company’s Chief Operating Officer, Chief Financial Officer and Chief Business Officer comprise the Company’s chief operating decision makers (“CODM”). Segment information is prepared on the same basis that the CODM manages the segments, evaluates the segment financial statements and makes key operating and resource utilization decisions. Segment evaluation is determined on a quantitative basis based on a function of Adjusted EBITDA, as well as a qualitative basis, such as nature of the product and service offerings and types of customers. The Company defines Adjusted EBITDA as net income (loss) from continuing operations before depreciation, depletion, amortization and accretion, gains on disposal of assets, net, impairment of long lived assets, equity based compensation, stock based compensation, interest income, net, inclusive of related parties, (loss) gain on marketable securities, net, other (income) expense, net and provision for income taxes. The Company’s significant segment expenses include cost of revenue, exclusive of depreciation, depletion, amortization and accretion, and selling, general and administrative expense.

The Company principally provides products and services to customers operating in the oil and natural gas, aviation and utility infrastructure industries. At September 30, 2026, the Company had five reportable segments, which includes rental services (“Rentals”), infrastructure services (“Infrastructure”), natural sand proppant services (“Sand”), accommodation services (“Accommodations”) and drilling services (“Drilling”). The Company has determined that its operating segments meet the criteria in ASC Topic 280, Segment Reporting, and are reported as five reportable segments. For discussion purposes, management also views its portfolio as consisting of (i) asset-based rental activities, which include the Rentals segment, and (ii) service-based operations, which include the Infrastructure, Sand, Accommodations and Drilling segments. These broader categories do not represent operating segments and are not used for purposes of determining the Company’s reportable segments under ASC Topic 280.

Sales from one segment to another are generally priced at estimated equivalent commercial selling prices. All transactions conducted between segments are eliminated in consolidation. Transactions conducted by companies within the same reportable segment are eliminated within each reportable segment. Corporate selling, general and administrative costs are allocated to each segment based on forecasted revenue, expense and asset base. Corporate interest expense is allocated to each segment based on its intercompany payable position with the Company’s corporate entity. U.S. income tax expense is not allocated to each segment. Foreign income tax expense is realized in the segment in which the foreign operations occur.

To reflect how the CODM evaluates the business, prior period segment information has been recast to conform with our reportable segment composition as of September 30, 2026. The following tables set forth certain financial information with respect to the Company’s reportable segments (in thousands):

MAMMOTH ENERGY SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


Three Months Ended September 30, 2026	Rentals		Infrastructure		Sand		Accommodations		Drilling		Total
Revenue from external and related party customers	$	9,625	$	1,120	$	5,154	$	3,390	$	2,057	$	21,346
Intersegment revenue	21		—		—		—		—		21
	9,646		1,120		5,154		3,390		2,057		21,367
Reconciliation of Revenue
Other(b)											48
Eliminations(a)											(69)
Total consolidated revenue											$	21,346

Less segment expenses:


Cost of revenue, exclusive of depreciation, depletion, amortization and accretion, inclusive of related parties	2,652		1,735		2,980		2,043		1,880
Selling, general and administrative, exclusive of stock based compensation	2,027		322		647		278		205
Segment Adjusted EBITDA	$	4,967	$	(937)	$	1,527	$	1,069	$	(28)	$	6,598

Reconciliation of total segment Adjusted EBITDA
Less:
Other(b)											$	774
Depreciation, depletion, amortization and accretion											6,557
Gains on disposal of assets, net											(312)




Interest income, net											(211)
Gain on marketable securities, net											(1,173)
Other expense, net											533
Income from continuing operations before income taxes											$	430

MAMMOTH ENERGY SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


Three Months Ended September 30, 2025	Rentals		Infrastructure		Sand		Accommodations		Drilling		Total
Revenue from external and related party customers	$	2,750	$	812	$	2,728	$	2,280	$	2,282	$	10,852
Intersegment revenue	16		—		—		—		—		16
	2,766		812		2,728		2,280		2,282		10,868
Reconciliation of Revenue

Eliminations(a)											(16)
Total consolidated revenue											$	10,852

Less segment expenses:


Cost of revenue, exclusive of depreciation, depletion, amortization and accretion, inclusive of related parties	$	1,691	$	1,579	$	4,148	$	1,436	$	1,840
Selling, general and administrative, exclusive of stock based compensation	997		294		1,157		483		308
Segment Adjusted EBITDA	$	78	$	(1,061)	$	(2,577)	$	361	$	134	$	(3,065)

Reconciliation of total segment Adjusted EBITDA
Less:
Other(b)											$	1,717
Depreciation, depletion, amortization and accretion											2,751
Loss on disposal of assets, net											1,874



Interest income, net											(729)
Gain on marketable securities, net											(73)
Other expense, net											1,903
Loss from continuing operations before income taxes											$	(10,508)

MAMMOTH ENERGY SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


Nine Months Ended September 30, 2026	Rentals		Infrastructure		Sand		Accommodations		Drilling		Total
Revenue from external and related party customers	$	32,673	$	2,328	$	16,993	$	10,134	$	7,302	$	69,430
Intersegment revenue	161		—		—		—		—		161
	32,834		2,328		16,993		10,134		7,302		69,591
Reconciliation of Revenue
Other(b)											144
Eliminations(a)											(305)
Total consolidated revenue											$	69,430

Less segment expenses:
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion, inclusive of related parties	$	15,435	$	3,786	$	15,146	$	6,299	$	6,044



Selling, general and administrative, exclusive of stock based compensation	5,070		797		2,185		898		687
Segment Adjusted EBITDA	$	12,329	$	(2,255)	$	(338)	$	2,937	$	571	$	13,244

Reconciliation of total segment Adjusted EBITDA
Less:
Other(b)											$	2,872
Depreciation, depletion, amortization and accretion											14,661
Gains on disposal of assets, net											(5,628)


Equity based compensation											544

Interest expense, net											59
Gain on marketable securities, net											(7,161)
Other expense, net											670
Income from continuing operations before income taxes											$	7,227

MAMMOTH ENERGY SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


Nine Months Ended September 30, 2025	Rentals		Infrastructure		Sand		Accommodations		Drilling		Total
Revenue from external and related party customers	$	7,744	$	2,914	$	14,843	$	6,127	$	3,207	$	34,835
Intersegment revenue	54		—		—		—		—		54
	7,798		2,914		14,843		6,127		3,207		34,889
Reconciliation of Revenue

Eliminations(a)											(54)
Total consolidated revenue											$	34,835

Less segment expenses:


Cost of revenue, exclusive of depreciation, depletion, amortization and accretion, inclusive of related parties	$	4,675	$	3,807	$	14,886	$	4,110	$	2,994
Selling, general and administrative, exclusive of stock based compensation	2,485		616		3,973		1,280		727
Segment Adjusted EBITDA	$	638	$	(1,509)	$	(4,016)	$	737	$	(514)	$	(4,664)

Reconciliation of total segment Adjusted EBITDA
Less:
Other(b)											$	5,965
Depreciation, depletion, amortization and accretion											7,661
Gains on disposal of assets, net											(2,675)

Impairment of other long-lived assets											31,669
Stock based compensation											412
Interest income, net											(1,112)
Gain on marketable securities, net											(73)
Other expense, net											2,863
Loss from continuing operations before income taxes											$	(49,374)

(a) Includes eliminations for intersegment transactions.
(b) Includes activity related to non-operating legacy services that are no longer active.


	Rentals		Infrastructure		Sand		Accommodations		Drilling		Total
As of September 30, 2026:
Total assets for reportable segments	$	164,205	$	12,808	$	70,307	$	13,569	$	3,075	$	263,964
Other assets(a)											76,356
Total consolidated assets, excluding discontinued operations											$	340,320

As of December 31, 2025:
Total assets for reportable segments	$	75,004	$	2,598	$	68,028	$	14,309	$	1,859	$	161,798
Other assets(a)											167,900
Total consolidated assets, excluding discontinued operations											$	329,698

(a) Includes assets related to non-operating legacy services that are no longer active as well as corporate related assets, which include cash and cash equivalents, marketable securities, restricted cash and other current assets.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

20. Subsequent Events

On October 20, 2026, Cobra Aviation, a subsidiary of the Company, entered into two separate aircraft engine lease agreements with third-party lessees. The aggregate minimum lease payments under the leases are approximately $4.3 million and $1.4 million, respectively.

On July 27, 2026, the Company committed to purchase three aircraft for an aggregate purchase price of $32.4 million. In connection with the purchase, the Company paid approximately $11.3 million subsequent to September 30, 2026. On October 22, 2026, the Company entered into a letter of intent to sell the three aircraft frames and certain related components, excluding the engines, to a third party for an aggregate purchase price of $8.5 million.

On October 28, 2026, Cobra Aviation Services LLC and Leopard Aviation LLC, aviation subsidiaries of the Company, entered into a Loan and Security Agreement with Bank7 providing for senior secured term loan commitments of up to $58.0 million to finance or reimburse acquisitions of additional aviation assets. The facilities consist of a $25.0 million Term Loan A facility and a $33.0 million Term Loan B facility. No amounts were advanced at closing. The loans bear interest at a variable annual rate equal to the greater of 6.25% and the prime rate published in The Wall Street Journal plus 0.50%, mature on October 26, 2030 and are guaranteed by the Company and secured by substantially all assets of the borrowers. The Loan and Security Agreement is filed as Exhibit 10.1 to this Quarterly Report on Form 10-Q.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and related notes thereto presented in this Quarterly Report and the consolidated financial statements and related notes thereto included in our Annual Report on Form 10-K. This discussion contains forward-looking statements reflecting our current expectations, estimates and assumptions concerning events and financial trends that may affect our future operating results or financial position. Actual results and the timing of events may differ materially from those contained in these forward-looking statements due to a number of factors, including those discussed in Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission, or the SEC, on March 6, 2026 and the section entitled “Cautionary Note Regarding Forward-Looking Statements” appearing elsewhere in this Quarterly Report.

Overview

We are a growth-oriented company centered on an expanding aviation leasing business. We also provide products and services to customers in the utility infrastructure and oil and natural gas industries. We operate through five reportable segments: rental services, infrastructure services, natural sand proppant services, accommodation services and drilling services. Our rental services segment comprises aviation leasing, aviation equipment sales and heavy equipment rentals for construction and oilfield activities. Our infrastructure services segment provides fiber optic services to utility customers. Our natural sand proppant services segment mines, processes and sells natural sand proppant used for hydraulic fracturing. Our accommodation services segment provides housing, kitchen and dining, and recreational service facilities for workers in remote areas away from readily available lodging. Our drilling services segment provides directional drilling services to oilfield operators. While the Company reports five reportable segments, management broadly evaluates performance across two business categories: Rentals, which includes aviation and equipment rental activities, and Services, which includes infrastructure, sand, accommodation and drilling operations. These broader categories are intended to assist investors in understanding the Company’s business mix and do not represent additional reportable segments. During the first nine months of 2026, management continued executing its strategy of investing in revenue-producing rental assets and increasing deployment across the aviation portfolio. These investments expanded the Company’s available leasing capacity and contributed to growth within the Rentals category. Improved profitability during the quarter was driven primarily by growth in aviation leasing activity, positive Adjusted EBITDA in the Sand segment and increased occupancy in the Accommodations segment, which contributed to higher consolidated Adjusted EBITDA and improved profitability compared with the second quarter of 2026.

We are focused on driving returns through improved execution by prioritizing asset utilization, margin expansion, and capital efficiency across the portfolio. While macroeconomic uncertainty, including tariffs and demand volatility, continues to affect parts of the market, we remain proactive in repositioning Mammoth to perform through differing business cycles.

Aviation Platform Highlights

Management believes the following aviation operating metrics are useful indicators of fleet deployment, utilization and overall aviation operating performance.


	Three Months Ended				Nine Months Ended
	September 30,					September 30,
Metric	2026		2025			2026		2025
Aircraft Owned	14		10			14		10
Engines Owned	14		3			14		3
APUs Owned	16		2			16		2
Total Aviation Assets	44		15			44		15
Revenue-Producing Assets	29		11			29		11
Aircraft Utilization	71	%	100	%		75	%	100	%
Engine Utilization	64	%	—	%		66	%	—	%
APU Utilization	69	%	50	%		65	%	50	%
Overall Deployment Rate(a)	66	%	73	%		66	%	73	%

(a)Overall deployment rate represents revenue-producing aviation assets divided by total aviation assets as of the applicable measurement date. Revenue-producing assets represent aviation assets generating lease revenue as of the measurement date.

Business Developments

During 2025, we completed four strategic divestitures. On April 11, 2025, we sold a portion of our infrastructure services entities, including our distribution, transmission and substation operations, for aggregate proceeds of approximately $108.7 million. On June 16, 2025, we sold all of the equipment previously used in our hydraulic fracturing services for $15.0 million. On September 15, 2025, the Company completed the sale of assets related to its natural sand proppant operations at its Piranha Proppant LLC processing plant. On December 2, 2025, we completed the sale of our engineering services business, Aquawolf for approximately $30.0 million. The results of operations, financial position and cash flows for these businesses are reported as discontinued operations for all periods presented and discussed in this report. Unless otherwise indicated, the information presented in this Management’s Discussion and Analysis relates only to our continuing operations.

To reflect how management evaluates the business after these divestitures, prior period segment information in our results of operations below has been recast to conform with our segment composition as of September 30, 2026. See Note 19. Segment Information, for additional information regarding the recast segment information and Note 4. Discontinued Operations of the notes to our unaudited condensed consolidated financial statements for more information regarding the divestitures.

During the second quarter of 2026, we expanded our fiber optic services offering through the acquisitions of Mission Construction LLC and BERE Rentals LLC, both providers of fiber optic services to utility customers in the midwestern region of the United States. On June 12, 2026, we acquired all of the outstanding equity interests in Mission Construction LLC for aggregate consideration of $3.1 million and all of the outstanding equity interests in BERE Rentals LLC for aggregate consideration of $3.4 million. The acquisitions were funded with cash on hand. These acquisitions extend our presence in the fiber optic services market and broaden the range of services we provide to utility customers in the region.

Overview of Our Industries

Aircraft Industry

Demand for aviation assets remained favorable during the quarter, supporting increased lease activity and revenue in our aviation rental business. We continue to evaluate opportunities to expand our aviation fleet as market conditions warrant.

Oil and Natural Gas Industry

Customer activity improved during 2026, contributing to higher utilization across our drilling, rental and accommodation businesses, although commodity price volatility continues to create uncertainty.

Infrastructure Industry

Demand for our fiber optic services continues to be supported by communications infrastructure investment and broadband deployment initiatives.

Settlement Agreement with PREPA

See Notes 2 and 18 for discussion of the PREPA Settlement Agreement.

Third Quarter 2026 Financial Overview

Revenue increased 95%, to $21.3 million during the third quarter of 2026, driven primarily by aviation, natural sand proppant, and accommodation activities. Operating loss narrowed to $0.4 million compared to $9.4 million in the prior-year period, reflecting higher utilization. Adjusted EBITDA improved to $5.8 million from a loss of $4.8 million in the prior-year period. See “Non-GAAP Financial Measures” for a reconciliation of net income (loss) from continuing operations to Adjusted EBITDA.

Future Results

We remain focused on increasing equipment utilization, expanding our aviation rental platform, developing our infrastructure services business and maintaining capital discipline. While uncertainty remains regarding commodity prices, tariffs and broader economic conditions, management believes recent operating results and placement of recently acquired aviation assets into service support its expectations for continued revenue growth and profitability improvement during the remainder of 2026.

Results of Operations

Three Months Ended September 30, 2026 Compared to Three Months Ended September 30, 2025


	Three Months Ended
	September 30, 2026		September 30, 2025
	(in thousands)
Revenue:
Rental services and aviation sales	$	9,646	$	2,766
Infrastructure services	1,120		812
Natural sand proppant services	5,154		2,728
Accommodation services	3,390		2,280
Drilling services	2,057		2,282
Other services	48		—
Eliminations	(69)		(16)
Total revenue	21,346		10,852

Cost of revenue:
Rental services and aviation sales (exclusive of depreciation and amortization of $4,403 and $1,009 for the three months ended September 30, 2026 and 2025, respectively)	2,652		1,691
Infrastructure services (exclusive of depreciation and amortization of $368 and $56 for the three months ended September 30, 2026 and 2025, respectively)	1,735		1,579
Natural sand proppant services (exclusive of depreciation, depletion and accretion of $1,388 and $1,263 for the three months ended September 30, 2026 and 2025, respectively)	2,980		4,148
Accommodation services (exclusive of depreciation and accretion of $288 and $273 for the three months ended September 30, 2026 and 2025, respectively)	2,043		1,436
Drilling services (exclusive of depreciation of $51 and $20 for the three months ended September 30, 2026 and 2025, respectively)	1,880		1,840
Other services (exclusive of depreciation of $59 and $130 for the three months ended September 30, 2026 and 2025, respectively)	167		207
Eliminations	(69)		(16)
Total cost of revenue	11,388		10,885
Selling, general and administrative	4,134		4,749
Depreciation, depletion, amortization and accretion	6,557		2,751
(Gains) losses on disposal of assets, net	(312)		1,874


Operating loss	(421)		(9,407)
Interest income, net	211		729
Gain on marketable securities, net	1,173		73
Other expense, net	(533)		(1,903)
Income (loss) before income taxes	430		(10,508)
Provision for income taxes	136		2,140
Net income (loss) from continuing operations	294		(12,648)
Net (loss) income from discontinued operations, net of income taxes	(168)		33
Net income (loss)	$	126	$	(12,615)

Revenue. Revenue for the three months ended September 30, 2026 increased $10.4 million, or 95%, to $21.3 million compared to $10.9 million for the same period in 2025. The increase was primarily attributable to increases in revenue for rental, infrastructure, natural sand proppant, and accommodation services during the three months ended September 30, 2026, which was partially offset by a decrease in revenue for drilling services. Revenue by segment was as follows:

Rental Services and Aviation Sales. Rental services and aviation sales revenue increased $6.8 million, or 243%, to $9.6 million for the three months ended September 30, 2026 compared to $2.8 million for the same period in 2025. The increase was primarily attributable to $5.4 million from growth of the aviation leasing platform. Aviation fleet capacity increased from 15 in the prior-year period to 44 and revenue-producing assets increased from 11 in the prior-year period to 29. The increase also benefited from a 50% increase in the average number of pieces of equipment rented to customers to 430 for the three months ended September 30, 2026 compared to 286 for the same period in 2025.

Infrastructure Services. Infrastructure services revenue increased $0.3 million, or 38%, to $1.1 million for the three months ended September 30, 2026 compared to $0.8 million for the same period in 2025. The increase in revenue was primarily due to additional fiber optic activity from customers added through recent acquisitions.

Natural Sand Proppant Services. Natural sand proppant services revenue increased $2.5 million, or 93%, to $5.2 million for the three months ended September 30, 2026 compared to $2.7 million for the same period in 2025. The increase in our natural sand proppant services revenue was primarily due to an 86% increase in tons of sand sold to 227,676 tons for the three months ended September 30, 2026 compared to 122,161 tons for the same period in 2025, combined with a 21% increase in the average price per ton of sand sold to $22.18 per ton during the three months ended September 30, 2026 compared to $18.26 per ton for the same period in 2025. The increase in average price per ton of sand sold was primarily due to a shift of grade mix to include more fine sand.

Accommodation Services. Accommodation services revenue increased $1.1 million, or 48%, to $3.4 million for the three months ended September 30, 2026 compared to $2.3 million for the same period in 2025. The increase reflected higher occupancy levels and improved utilization driven by increased customer activity. On average, 270 rooms were utilized during the three months ended September 30, 2026 as compared to 185 for the same period in 2025 for our accommodation services.

Drilling Services. Drilling services revenue decreased $0.2 million or 9% to $2.1 million for the three months ended September 30, 2026 compared to $2.3 million for the same period in 2025. The decrease in revenue was primarily attributable to a 9% decrease in the average day rate and $0.3 million from the sale of equipment damaged or lost down-hole for the three months ended September 30, 2025 with no similar activity for the three months ended September 30, 2026. Utilization remained unchanged at 32% for both periods.

Cost of Revenue (exclusive of depreciation, depletion, amortization and accretion). Cost of revenue, exclusive of depreciation, depletion, amortization and accretion, increased $0.5 million to $11.4 million, or 54% of total revenue, for the three months ended September 30, 2026 compared to $10.9 million, or 100% of total revenue, for the same period in 2025. Cost of revenue by segment was as follows:

Rental Services and Aviation Sales. Rental services and aviation sales cost of revenue, exclusive of depreciation and amortization, increased $1.0 million, or 59%, to $2.7 million for the three months ended September 30, 2026 compared to $1.7 million for the same period in 2025. The increase was primarily attributable to higher operating activity associated with the deployment of newly acquired aircraft and equipment. As a percentage of revenue, our rental services cost of revenue, exclusive of depreciation and amortization of $4.4 million and $1.0 million for the three months ended September 30, 2026 and 2025, was 28% and 61%, respectively. Despite the increase in operating costs, segment margins benefited from greater aviation lease activity and improved absorption of fixed operating expenses.

Infrastructure Services. Infrastructure services cost of revenue, exclusive of depreciation, increased $0.1 million, or 6%, to $1.7 million for the three months ended September 30, 2026 compared to $1.6 million for the same period in 2025. As a percentage of revenue, cost of revenue, exclusive of depreciation of $0.4 million and $0.1 million for the three months ended September 30, 2026 and 2025, was 155% and 200% for the three months ended September 30, 2026 and 2025, respectively. The decrease as a percentage of revenue is primarily due to a decrease in contract labor coupled with an increase in activity, resulting in a lower ratio of fixed costs to variable costs.

Natural Sand Proppant Services. Natural sand proppant services cost of revenue, exclusive of depreciation, depletion and accretion, decreased $1.1 million, or 27%, to $3.0 million for the three months ended September 30, 2026 compared to $4.1 million for the same period in 2025. As a percentage of revenue, cost of revenue, exclusive of depreciation, depletion and accretion of $1.4 million and $1.3 million for the three months ended September 30, 2026 and 2025, was 58% and 152% for the three months ended September 30, 2026 and 2025, respectively. The decrease in cost as a percentage of revenue is primarily due to an 86% increase in tons sold and a 21% increase in average sales price per ton.

Accommodation Services. Accommodation services cost of revenue, exclusive of depreciation and accretion, increased $0.6 million, or 43%, to $2.0 million for the three months ended September 30, 2026 compared to $1.4 million for the same period in 2025. As a percentage of revenue, cost of revenue, exclusive of depreciation and accretion of $0.3 million and $0.3 million for the three months ended September 30, 2026 and 2025, was 59% and 61% for the three months ended September 30, 2026 and 2025, respectively. The decrease in cost as a percentage of revenue is primarily due to a 46% increase in room utilization coupled with a modest increase in the average room rate.

Drilling Services. Drilling services cost of revenue, exclusive of depreciation, increased $0.1 million, or 6%, to $1.9 million for the three months ended September 30, 2026 compared to $1.8 million for the same period in 2025. As a percentage of revenue, cost of revenue, exclusive of depreciation of $0.1 million and an immaterial amount for the three months ended September 30, 2026 and 2025, was 90% and 78% for the three months ended September 30, 2026 and 2025, respectively. The increase as a percentage of revenue is primarily due to a 9% decrease in the average day rate, coupled with flat utilization period over period.

Other Services. Other services cost of revenue, exclusive of depreciation, remained flat at $0.2 million for the three months ended September 30, 2026 and 2025. The marginal decrease is primarily due to lower lease and rent expense and reduced insurance costs associated with non-operating legacy services.

Selling, General and Administrative. Selling, general and administrative expense decreased $0.6 million, or 13%, to $4.1 million for the three months ended September 30, 2026 compared to $4.7 million for the same period in 2025. The decrease was primarily attributable to lower corporate overhead and professional service costs. SG&A expense represented 19% of revenue during the three months ended September 30, 2026 compared to 43% during the prior-year period, reflecting improved operating leverage on higher revenue levels.

Depreciation, Depletion, Amortization and Accretion. Depreciation, depletion, amortization and accretion totaled $6.6 million for the three months ended September 30, 2026 compared to $2.8 million for the same period in 2025. The increase is primarily attributable to increased depreciation of property, plant and equipment resulting from aviation assets being placed into service.

(Gains) Losses on Disposal of Assets, Net. Net gains on asset disposals were $0.3 million for the three months ended September 30, 2026 compared with net losses on asset disposals of $1.9 million for the corresponding 2025 period. Net gains on asset disposals primarily related to the sale of a building and field equipment for the three months ended September 30, 2026. For the three months ended September 30, 2025, we completed the sale of assets associated with the natural sand proppant services segment. This transaction resulted in a loss of approximately $2.4 million, which was partially offset by $0.5 million in gains from the sale of assets related to our other services.

Operating Loss. We reported operating loss of $0.4 million for the three months ended September 30, 2026 compared to $9.4 million for the same period in 2025. The reduction in operating loss primarily reflected increased Rental Services and Aviation Sales activity, improved Natural Sand Proppant Services performance and higher Accommodation Services activity.

Interest Income, Net. Interest income, net was $0.2 million for the three months ended September 30, 2026 compared to $0.7 million for the same period in 2025.

Gain on Marketable Securities, Net. Net gain on marketable securities was $1.2 million for the three months ended September 30, 2026 compared to $0.1 million for the prior‑year period.

Other Expense, Net. Other expense, net was $0.5 million for the three months ended September 30, 2026 compared to $1.9 million for the same period in 2025.

Provision for Income Taxes. We recorded income tax expense of $0.1 million on pre-tax income of $0.4 million for the three months ended September 30, 2026 compared to $2.1 million on pre-tax loss of $10.5 million for the same period in

2025. Our effective tax rates were 31.6% and (20.4)% for the three months ended September 30, 2026 and 2025, respectively. The increase in the effective tax rate was primarily attributable to changes in valuation allowances, interest and penalties, withholding taxes and other foreign tax items, as well as the change from a pre-tax loss for the three months ended September 30, 2025 to pre-tax income for the three months ended September 30, 2026.

Discontinued Operations. We recorded net loss from discontinued operations, net of income taxes totaling $0.2 million during the three months ended September 30, 2026 compared to net income from discontinued operations, net of income taxes of an immaterial amount for the same period in 2025. See Note 4 of the notes to our unaudited condensed consolidated financial statements for a breakout of the results of operations for our discontinued operations.

Nine Months Ended September 30, 2026 Compared to Nine Months Ended September 30, 2025


	Nine Months Ended
	September 30, 2026		September 30, 2025
	(in thousands)
Revenue:
Rental services and aviation sales	$	32,834	$	7,798
Infrastructure services	2,328		2,914
Natural sand proppant services	16,993		14,843
Accommodation services	10,134		6,127
Drilling services	7,302		3,207
Other services	144		—
Eliminations	(305)		(54)
Total revenue	69,430		34,835

Cost of revenue:
Rental services and aviation sales (exclusive of depreciation and amortization of $10,470 and $2,104 for the nine months ended September 30, 2026 and 2025, respectively)	15,435		4,675
Infrastructure services (exclusive of depreciation and amortization of $552 and $164 for the nine months ended September 30, 2026 and 2025, respectively)	3,786		3,807
Natural sand proppant services (exclusive of depreciation, depletion and accretion of $2,493 and $3,552 for the nine months ended September 30, 2026 and 2025, respectively)	15,146		14,886
Accommodation services (exclusive of depreciation and accretion of $863 and $799 for the nine months ended September 30, 2026 and 2025, respectively)	6,299		4,110
Drilling services (exclusive of depreciation of $92 and $73 for the nine months ended September 30, 2026 and 2025, respectively)	6,044		2,994
Other services (exclusive of depreciation of $191 and $969 for the nine months ended September 30, 2026 and 2025, respectively)	691		1,635
Eliminations	(305)		(54)
Total cost of revenue	47,096		32,053
Selling, general and administrative	11,962		13,823
Depreciation, depletion, amortization and accretion	14,661		7,661
Gains on disposal of assets, net	(5,628)		(2,675)

Impairment of long-lived assets	—		31,669
Operating income (loss)	1,339		(47,696)
Interest (expense) income, net	(59)		1,112
Gain on marketable securities, net	7,161		73
Other expense, net	(1,214)		(2,863)
Income (loss) before income taxes	7,227		(49,374)
Provision for income taxes	3,444		2,044
Net income (loss) from continuing operations	3,783		(51,418)
Net income from discontinued operations, net of income taxes	770		47,114
Net income (loss)	$	4,553	$	(4,304)

Revenue. Revenue for the nine months ended September 30, 2026 increased $34.6 million, or 99%, to $69.4 million from $34.8 million for the same period in 2025. The increase in total revenue is primarily attributable to increases in rental, natural sand proppant, accommodation and drilling services, partially offset by a decrease in infrastructure services revenue. Revenue by segment was as follows:

Rental Services and Aviation Sales. Rental services and aviation sales revenue increased $25.0 million, or 321%, to $32.8 million for the nine months ended September 30, 2026 compared to $7.8 million for the same period in 2025. Revenue growth was driven by expansion of the Company’s aviation asset base and higher aviation sales activity. Aviation rental revenue increased $21.1 million and equipment rental revenue increased $3.9 million. The increase in aviation revenue was partially driven by the sale of an auxiliary power unit and an airframe and landing gear for $8.5 million. The increase in our equipment rental revenue was driven by a 51% increase in the average number of pieces of equipment rented to customers to 409 for the nine months ended September 30, 2026 compared to 271 for the same period in 2025.

Infrastructure Services. Infrastructure services revenue decreased $0.6 million, or 21%, to $2.3 million for the nine months ended September 30, 2026 compared to $2.9 million for the same period in 2025. The decrease in revenue primarily reflected the loss of a customer and lower fiber optic activity. Infrastructure results also reflected transition-related costs and underutilization associated with customer changes and the integration of recent acquisitions. Management expects utilization and operating performance to improve as these acquisitions are further integrated and customer activity expands.

Natural Sand Proppant Services. Natural sand proppant services revenue increased $2.2 million, or 15%, to $17.0 million for the nine months ended September 30, 2026 compared to $14.8 million for the same period in 2025. The increase in our natural sand proppant services revenue was primarily due to an 11% increase in tons of sand sold to approximately 612,303 tons for the nine months ended September 30, 2026 compared to approximately 552,944 tons for the same period in 2025, combined with a 2% increase in the average sales price per ton of sand sold to $21.19 per ton during the nine months ended September 30, 2026 compared to $20.74 per ton for the same period in 2025. The increase in average price per ton primarily reflected a shift in product mix toward finer grades of sand.

Accommodation Services. Accommodation services revenue increased $4.0 million, or 66%, to $10.1 million for the nine months ended September 30, 2026, compared to $6.1 million for the same period in 2025. Revenue growth reflected increased occupancy. On average, 272 rooms were utilized during the nine months ended September 30, 2026 compared to 170 for the same period in 2025 for our accommodation services.

Drilling Services. Drilling services revenue increased $4.1 million, or 128%, to $7.3 million for the nine months ended September 30, 2026, compared to $3.2 million for the same period in 2025. The increase in our drilling services revenue was primarily attributable to higher utilization levels, which increased to 32% for the nine months ended September 30, 2026 compared to 17% for the same period in 2025. This was coupled with proceeds of $0.3 million from the sale of equipment damaged or lost down-hole and higher average day rates for our drilling services for the nine months ended September 30, 2026.

Cost of Revenue (exclusive of depreciation, depletion, amortization and accretion). Cost of revenue, exclusive of depreciation, depletion, amortization and accretion, increased $15.0 million to $47.1 million, or 68% of total revenue, for the nine months ended September 30, 2026, compared to $32.1 million, or 92% of total revenue, for the same period in 2025. Cost of revenue by segment was as follows:

Rental Services and Aviation Sales. Rental services and aviation sales cost of revenue, exclusive of depreciation and amortization, increased $10.7 million, or 228%, to $15.4 million for the nine months ended September 30, 2026 compared to $4.7 million for the same period in 2025. The increase reflected higher operating activity associated with aircraft and equipment acquisitions and a higher percentage of assets on contract as well as the sale of an auxiliary power unit and an airframe and landing gear with an aggregate cost basis of $7.8 million. As a percentage of revenue, our rental services cost of revenue, exclusive of depreciation and amortization of $10.5 million and $2.1 million for the nine months ended September 30, 2026 and 2025, respectively, was 47% and 60% for the nine months ended September 30, 2026 and 2025, respectively. The decrease as a percentage of revenue is primarily due to an increase in utilization and a greater contribution from higher-margin aviation leasing activity.

Infrastructure Services. Infrastructure services cost of revenue, exclusive of depreciation, remained flat at $3.8 million for the nine months ended September 30, 2026 and 2025. As a percentage of revenue, cost of revenue, exclusive of depreciation and amortization of $0.6 million and $0.2 million for the nine months ended September 30, 2026 and 2025, respectively was 165% and 131% for the nine months ended September 30, 2026 and 2025, respectively. The increase as a percentage of revenue is primarily due to an increase in compensation and benefits and fuel expense coupled with a decrease in utilization.

Natural Sand Proppant Services. Natural sand proppant services cost of revenue, exclusive of depreciation, depletion and accretion, increased $0.2 million, or 1%, to $15.1 million for the nine months ended September 30, 2026 compared to $14.9 million for the same period in 2025. As a percentage of revenue, cost of revenue, exclusive of depreciation, depletion and accretion of $2.5 million and $3.6 million for the nine months ended September 30, 2026 and 2025, respectively, was 89% and 100% for the nine months ended September 30, 2026 and 2025, respectively. The decrease in cost as a percentage of revenue is primarily due to an 11% increase in tons sold and a 2% increase in average sales price per ton.

Accommodation Services. Accommodation services cost of revenue, exclusive of depreciation and accretion, increased $2.2 million, or 54%, to $6.3 million for the nine months ended September 30, 2026 compared to $4.1 million for the same period in 2025. The increase was primarily attributable to increased contract labor and compensation and benefits to support increased occupancy levels. As a percentage of revenue, cost of revenue, exclusive of depreciation and accretion of $0.9 million and $0.8 million for the nine months ended September 30, 2026 and 2025, respectively, was 62% and 67% for the nine months ended September 30, 2026 and 2025, respectively. Cost of revenue decreased as a percentage of revenue because revenue increased at a greater rate than operating costs.

Drilling Services. Drilling services cost of revenue, exclusive of depreciation, increased $3.0 million, or 100%, to $6.0 million for the nine months ended September 30, 2026 compared to $3.0 million for the same period in 2025. The increase was primarily attributable to increased specialty equipment rentals and contract labor to support increased customer demand and utilization. As a percentage of revenue, cost of revenue, exclusive of depreciation of $0.1 million and $0.1 million for the nine months ended September 30, 2026 and 2025, was 82% and 94% for the nine months ended September 30, 2026 and 2025, respectively. The decrease in cost of revenue as a percentage of revenue was primarily due to higher utilization levels.

Other Services. Other services cost of revenue, exclusive of depreciation, decreased $0.9 million to $0.7 million for the nine months ended September 30, 2026 compared to $1.6 million for the same period in 2025. The decrease is primarily due to lower compensation and benefits expense and reduced insurance costs associated with non-operating legacy services.

Selling, General and Administrative. Selling, general and administrative expense decreased $1.8 million, or 13%, to $12.0 million for the nine months ended September 30, 2026 compared to $13.8 million for the same period in 2025. The decrease was primarily attributable to a decrease in compensation and benefits coupled with reduced corporate and professional costs. SG&A expense represented 17% of revenue during the nine months ended September 30, 2026 compared to 40% during the prior-year period, reflecting the Company’s ability to leverage its fixed overhead structure as revenue increased.

Depreciation, Depletion, Amortization and Accretion. Depreciation, depletion, amortization and accretion increased $7.0 million to $14.7 million for the nine months ended September 30, 2026 from $7.7 million for the same period in 2025. The increase is primarily attributable to increased depreciation of property, plant and equipment resulting from aviation assets being placed into service during the nine months ended September 30, 2026.

Gains on Disposal of Assets, Net. Net gains on asset disposals were $5.6 million for the nine months ended September 30, 2026 compared with $2.7 million for the corresponding 2025 period. Net gains on asset disposals primarily related to the sale of drilling rigs and a building for the nine months ended September 30, 2026 and trucks and field equipment for the same period in 2025.

Impairment of Long-Lived Assets. During the nine months ended September 30, 2025, the Company’s management made the decision to market assets related to its natural sand proppant operations at its Piranha Proppant LLC and Muskie Proppant LLC processing plants. As a result, the Company recognized impairment expense on these assets totaling $31.7 million during the nine months ended September 30, 2025. There was no similar activity during the nine months ended September 30, 2026.

Operating Income (Loss). We reported operating income of $1.3 million for the nine months ended September 30, 2026 compared to an operating loss of $47.7 million for the same period in 2025. The increase in operating income was primarily due to $31.7 million in impairment expense recognized during the nine months ended September 30, 2025 with no similar activity during the nine months ended September 30, 2026.

Interest (Expense) Income, Net. Interest expense, net of interest income was $0.1 million for the nine months ended September 30, 2026 compared to interest income, net of interest expense of $1.1 million for the same period in 2025. The increase in interest expense is primarily due to a one-time charge of $1.2 million of unamortized debt issuance costs during the nine months ended September 30, 2026 in relation to the new credit agreement.

Gain on Marketable Securities, Net. Net gain on marketable securities was $7.2 million for the nine months ended September 30, 2026 compared to $0.1 million for the prior‑year period.

Other Expense, Net. We recognized other expense, net of $1.2 million during the nine months ended September 30, 2026 compared to $2.9 million for the same period in 2025.

Provision for Income Taxes. We recorded income tax expense of $3.4 million on pre-tax income of $7.2 million for the nine months ended September 30, 2026 compared to $2.0 million on pre-tax loss of $49.4 million for the same period in 2025. Our effective tax rates were 47.7% and (4.1)% for the nine months ended September 30, 2026 and 2025, respectively. The increase in the effective tax rate was primarily attributable to changes in valuation allowances, interest and penalties, withholding taxes and other foreign tax items, as well as the change from a pre-tax loss for the nine months ended September 30, 2025 to pre-tax income for the nine months ended September 30, 2026.

Discontinued Operations. We recorded net income from discontinued operations, net of income taxes totaling $0.8 million during the nine months ended September 30, 2026 compared to $47.1 million for the same period in 2025. See Note 4 of the notes to our unaudited condensed consolidated financial statements for a breakout of the results of operations for our discontinued operations.

Non-GAAP Financial Measures

Adjusted EBITDA from Continuing Operations

Adjusted EBITDA from continuing operations is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We define Adjusted EBITDA from continuing operations as net income (loss) from continuing operations before depreciation, depletion, amortization and accretion, gains on disposal of assets, net, impairment of long lived assets, equity based compensation, stock based compensation, interest expense (income), net, (loss) gain on marketable securities, net, other (income) expense, net and provision (benefit) for income taxes. We exclude the items listed above from net income (loss) from continuing operations in arriving at Adjusted EBITDA from continuing operations because these amounts can vary substantially from company to company within our industries depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA from continuing operations should not be considered as an alternative to, or more meaningful than, net income (loss) from continuing operations or cash flows from operating activities as determined in accordance with GAAP or as an indicator of our operating performance or liquidity. Certain items excluded from Adjusted EBITDA from continuing operations are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historical costs of depreciable assets, none of which are components of Adjusted EBITDA from continuing operations. Our computations of Adjusted EBITDA from continuing operations may not be comparable to other similarly titled measures of other companies. We believe that Adjusted EBITDA from continuing operations is a widely followed measure of operating performance and may also be used by investors to measure our ability to meet debt service requirements.

The following tables provide a reconciliation of Adjusted EBITDA from continuing operations to net income (loss) from continuing operations, the most directly comparable GAAP financial measure for the specified periods (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,					September 30,
Reconciliation of net income (loss) from continuing operations to Adjusted EBITDA from continuing operations:	2026		2025			2026		2025
Net income (loss) from continuing operations	$	294	$	(12,648)		$	3,783	$	(51,418)
Depreciation, depletion, amortization and accretion	6,557		2,751			14,661		7,661
(Gains) loss on disposal of assets, net	(312)		1,874			(5,628)		(2,675)

Impairment of long-lived assets	—		—			—		31,669



Equity based compensation	—		—			544		—
Stock based compensation	—		—			—		412
Interest (income) expense, net	(211)		(729)			59		(1,112)
Gains on marketable securities, net	(1,173)		(73)			(7,161)		(73)
Other expense, net	533		1,903			670		2,863
Provision for income taxes	136		2,140			3,444		2,044

Adjusted EBITDA from continuing operations	$	5,824	$	(4,782)		$	10,372	$	(10,629)

Liquidity and Capital Resources

We require capital to fund ongoing operations including maintenance expenditures on our existing fleet of equipment, organic growth initiatives, investments and acquisitions, and the litigation settlement obligations described in Note 18. Commitments and Contingencies of the notes to the unaudited condensed consolidated financial statements and under “Capital Requirements and Sources of Liquidity” below. Our primary sources of liquidity have been cash on hand, borrowings under our revolving credit facility, proceeds from the sale of assets and cash flows from operations. Our primary uses of capital have been for investing in property, plant and equipment used to provide our services and to acquire complementary assets and businesses.

Liquidity

The following table summarizes our liquidity as of the dates indicated (in thousands):


	September 30,		December 31,
	2026		2025
Cash and cash equivalents	$	13,090	$	101,987
Revolving credit facility borrowing base	25,000		50,000



Less letter of credit facilities (environmental remediation)	(2,573)		(2,573)
Less letter of credit facilities (insurance programs)	(2,400)		(2,400)
Net working capital (less cash, cash equivalents and restricted cash)(a)	11,437		(6,940)
Total	$	44,554	$	140,074

(a)Net working capital (less cash, cash equivalents and restricted cash) is calculated by subtracting total current liabilities, cash and cash equivalents and restricted cash from total current assets.

As of October 27, 2026, we had unrestricted cash on hand of $11.6 million, marketable securities of $15.9 million, no outstanding borrowings under our revolving credit facility, leaving an aggregate of $20.0 million of available borrowing capacity under this facility, after giving effect to $5.0 million of outstanding letters of credit. As of October 27, 2026, we had cash, cash equivalents and marketable securities of $27.5 million. On October 28, 2026, we entered into a senior secured term loan facility with Bank7 providing for aggregate commitments of up to $58.0 million. See Note 20 for additional information regarding the term loan facility.

Cash Flows

The following table sets forth our cash flows for the periods indicated (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2026		2025		2026		2025
Net cash provided by (used in) operating activities from continuing operations	$	359	$	(6,404)	$	(9,863)	$	(14,159)
Net cash (used in) provided by operating activities from discontinued operations	(271)		7,136		(70)		5,076
Net cash used in investing activities from continuing operations	(37,890)		(29,436)		(82,952)		(51,828)
Net cash provided by (used in) investing activities from discontinued operations	—		(837)		4,581		110,421
Net cash used in financing activities from continuing operations	(63)		(118)		(733)		(371)
Net cash used in financing activities from discontinued operations	—		(4)		—		(3,851)
Effect of foreign exchange rate on cash	74		(41)		(39)		73
Net (decrease) increase in cash, cash equivalents and restricted cash	$	(37,791)	$	(29,704)	$	(89,076)	$	45,361

Operating Activities from Continuing Operations

Net cash used in operating activities from continuing operations was $9.9 million during the nine months of 2026 compared to $14.2 million for the prior-year period. The improvement in cash used was primarily driven by improved operating results, partially offset by increases in accounts receivable and inventories.

Investing Activities from Continuing Operations

Net cash used in investing activities from continuing operations was $83.0 million during the first nine months of 2026, compared to $51.8 million during the prior-year period. The increase in cash used primarily reflected purchases of aviation assets, acquisitions and purchases of marketable securities, partially offset by proceeds from asset sales.

During the first nine months of 2026, the Company invested approximately $90.7 million in aviation and other rental assets, representing the largest component of its capital deployment activities. These investments expanded the Company’s portfolio of revenue-producing assets and supported the continued growth of its Rentals category. Management believes these investments position the Company for future revenue growth and improved cash generation as recently acquired aircraft, engines and auxiliary power units are placed under customer leases. While these investments reduced current cash balances, management believes they strengthen the Company’s long-term earnings potential and provide opportunities to generate returns as asset utilization increases.

The following table summarizes our purchases of property, plant and equipment by segment for the periods indicated (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2026		2025		2026		2025
Rental services(a)	$	40,079	$	17,185	$	90,663	$	44,125
Infrastructure services(b)	—		19		2,835		129
Natural sand proppant services(c)	1,154		—		2,390		93
Accommodation services(c)	135		95		494		170
Drilling services(c)	440		—		1,131		116


Total purchases of property, plant and equipment	$	41,808	$	17,299	$	97,513	$	44,633

(a) Capital expenditures primarily for expansion of our aviation rental fleet and equipment rental purchases for the periods presented.

(b) Capital expenditures primarily for equipment for our fiber optic fleets for the periods presented.

Financing Activities from Continuing Operations

Net cash used in financing activities from continuing operations was $0.7 million during the nine months of 2026, compared to $0.4 million during the prior-year period. The increase in cash used primarily related to repurchases of common stock and payments on finance lease obligations.

Net Working Capital

Our net working capital totaled $36.5 million and $107.1 million at September 30, 2026 and December 31, 2025, respectively. Our unrestricted cash balances were $13.1 million and $102.0 million at September 30, 2026 and December 31, 2025, respectively.

Revolving Credit Facility

Refer to Note 10 of the notes to the unaudited condensed consolidated financial statements for a description of the revolving credit facility. At September 30, 2026, the facility was undrawn and provided $20.0 million of remaining borrowing capacity after letters of credit.

Repurchase Program Authorization

On August 10, 2023, our board of directors approved a stock repurchase program pursuant to which we would be

authorized to repurchase up to the lesser of $55 million or 10 million shares of our common stock, subject to the factors discussed below. Any stock repurchases under this program may be made opportunistically from time to time in open market or privately negotiated transactions in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended, including any 10b5-1 plan, and will be subject to market conditions, applicable legal and contractual restrictions, liquidity requirements and other factors. The repurchase program has no time limit, does not require us to repurchase any specific number of shares and may be suspended from time to time, modified or discontinued by our board of directors at any time. Any common stock repurchased as part of such stock repurchase program will be cancelled and retired. We have repurchased and retired 230,730 shares of our common stock for approximately $0.5 million during the nine months ended September 30, 2026, leaving approximately $54.5 million available for future purchase under the stock repurchase program.

Capital Requirements and Sources of Liquidity

We expect cash on hand, marketable securities, operating cash flows and available borrowing capacity to be sufficient to fund anticipated capital expenditures, working capital requirements and other obligations. During the nine months ended September 30, 2026, capital expenditures totaled $97.5 million, including approximately $90.7 million related to the Rentals segment. For 2026, excluding aviation acquisitions, capital expenditures are currently expected to total approximately $25.4 million. We continue to evaluate acquisition opportunities and may use cash, debt, equity or a combination thereof to finance future transactions.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes to the market risks disclosed in Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2025 except as described below.

Interest Rate Risk

At September 30, 2026, we had no borrowings outstanding under our revolving credit facility. Accordingly, we had limited exposure to changes in interest rates.

Marketable Securities Risk

As of September 30, 2026, the recorded fair value of our equity investments in publicly traded companies was $24.5 million. These investments are subject to market price volatility, and current global economic conditions add further uncertainty. However, our holdings are concentrated in publicly traded equity securities. Accordingly, we believe that a meaningful sensitivity analysis is not practicable. Because these securities are measured at fair value, changes in market prices are recognized in earnings each reporting period. As a result, future reported earnings may be materially affected by unrealized gains and losses associated with these investments, which may not be indicative of realized investment results or our underlying operating performance.

Foreign Currency Risk

Our remote accommodation services segment generates revenue and incurs expenses that are denominated in the Canadian dollar. These transactions could be materially affected by currency fluctuations. Changes in currency exchange rates could adversely affect our consolidated results of operations or financial position. We also maintain cash balances denominated in the Canadian dollar. At September 30, 2026, we had $4.2 million of cash, in Canadian dollars, in Canadian accounts. A 10% increase in the strength of the Canadian dollar versus the U.S. dollar would have resulted in an increase in pre-tax income of approximately $0.3 million as of September 30, 2026. We have not hedged our exposure to changes in foreign currency exchange rates and, as a result, could incur unanticipated translation gains and losses.

Customer Credit Risk

See Note 2 and Note 18 of the notes to the unaudited condensed consolidated financial statements for additional discussion of PREPA-related credit exposure.

Item 4. Controls and Procedures

Evaluation of Disclosure Control and Procedures

Under the direction of our Chief Operating Officer and Chief Financial Officer, we have established disclosure controls and procedures, as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act, that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. The disclosure controls and procedures are also intended to ensure that such information is accumulated and communicated to management, including our Chief Operating Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.

At September 30, 2026, an evaluation was performed under the supervision and with the participation of management, including our Chief Operating Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15(b) under the Exchange Act. Based upon our evaluation, our Chief Operating Officer and Chief Financial Officer have concluded that at September 30, 2026, our disclosure controls and procedures are effective.

Changes in Internal Control Over Financial Reporting

There was no change in our internal control over financial reporting (as defined in Rules 13a-15(d) and 15d-15(d) under the Exchange Act) that occurred during the quarter ended September 30, 2026 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Due to the nature of our business, we are, from time to time, involved in litigation or subject to disputes or claims related to our business activities, including breaches of contractual obligations, workers’ compensation claims, employment related disputes, arbitrations, class actions and other litigation. We are also involved, from time to time, in reviews, investigations, subpoenas and other proceedings (both formal and informal) by governmental agencies regarding our business (collectively, “regulatory matters”), which regulatory matters, if determined adversely to us, could subject us to significant fines, penalties, obligations to change our business practices or other requirements resulting in increased expenses, diminished income and damage to our reputation. In the opinion of our management, none of the pending litigation, disputes or claims against us is expected to have a material adverse effect on our financial condition, cash flows or results of operations, except as disclosed in Note 18. Commitments and Contingencies of the notes to the unaudited condensed consolidated financial statements.

Item 1A. Risk Factors

There have been no material changes to the risk factors previously disclosed in Item 1A. Risk Factors in our Annual Report on Form 10-K filed with the SEC on March 6, 2026. For a discussion of the trends and uncertainties affecting our business, see Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Not applicable.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

See our Annual Report on Form 10-K for the year ended December 31, 2025 for a discussion of the regulatory framework governing our mining operations. Required quarterly mine safety disclosures are included in Exhibit 95.1.

Item 5. Other Information

None of our directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the third quarter ended September 30, 2026.

On October 27, 2026, the Company entered into a definitive oral Consulting Services Agreement (the “Agreement”) with Phil Lancaster, a member of the Company's Board of Directors (the “Board”), pursuant to which Mr. Lancaster will provide consulting services to the Company (the “Services”). The Agreement has an initial term of one year, subject to annual review. Pursuant to the Agreement, Mr. Lancaster will receive a consulting fee of $15,000 per month and a one-time cash bonus of $150,000 upon commencement of the Services. Mr. Lancaster will also be eligible to receive a discretionary annual bonus based on the continued growth of the Company. In addition, he may receive bonuses in connection with acquisitions first identified by him, with the amount of each such acquisition bonus determined based upon the purchase price of the applicable acquisition. Mr. Lancaster will continue to receive the fees otherwise payable to him for his service as a member of the Board.

MAMMOTH ENERGY SERVICES, INC.

Item 6. Exhibits

The following exhibits are filed as a part of this report:

Incorporated By Reference

Exhibit Number

Exhibit Description

Form

Commission File No.

Filing Date

Exhibit No.

Filed Herewith

Furnished Herewith

3.1

Amended and Restated Certificate of Incorporation of the Company

8-K

001-37917

11/15/2016

3.1

3.2

Amended and Restated Bylaws of the Company

8-K

001-37917

11/15/2016

3.2

3.3

First Amendment to Amended and Restated Bylaws of the Company

8-K

001-37917

6/9/2020

3.1

4.1

Specimen Certificate for shares of common stock, par value $0.01 per share, of the Company

S-1/A

333-213504

10/3/2016

4.1

4.2

Registration Rights Agreement, dated October 12, 2016, by and between the Company and Mammoth Energy Holdings, LLC

8-K

001-37917

11/15/2016

4.1

10.1

Loan and Security Agreement, dated as of October 26, 2026, by and among, Cobra Aviation Services LLC and Leopard Aviation LLC, as borrowers, and Bank7, as lender.

31.1

Certification of Chief Operating Officer pursuant to Rule 13(a)-14 and 15(d)-14 under the Securities Exchange Act of 1934.

31.2

Certification of Chief Financial Officer pursuant to Rule 13(a)-14 and 15(d)-14 under the Securities Exchange Act of 1934.

32.1

Certification of Chief Operating Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2

Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

95.1

Mine Safety Disclosure Exhibit

101.INS

XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH

XBRL Taxonomy Extension Schema Document.

101.CAL

XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF

XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB

XBRL Taxonomy Extension Labels Linkbase Document.

101.PRE

XBRL Taxonomy Extension Presentation Linkbase Document.

104

Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

MAMMOTH ENERGY SERVICES, INC.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

MAMMOTH ENERGY SERVICES, INC.

Date:

October 30, 2026

By:

/s/ Bernard Lancaster

Bernard Lancaster

Chief Operating Officer and Principal Executive Officer

Date:

October 30, 2026

By:

/s/ Mark Layton

Mark Layton

Chief Financial Officer and Principal Financial Officer