What changed in this filing

/stocks — the workspaceLOADING

Item 7. Management’s Discussion and Analysis

2026-03-05 compared with 2025-03-04 · 110 added, 108 removed, 264 unchanged (45% of the section changed)

6 unchanged sentences

Business Outlook

We are a provider of onshore high specification well service rigs and complementary services in the United States.

We are a provider of onshore high specification well service rigs and complementary services in the U.S.

We provide an extensive range of well site services to leading U.S.

2 unchanged sentences

A comprehensive discussion of each of our reporting segments is included below in the section titled “How We Evaluate Our Operations.”

We operate in most of the active oil and natural gas basins in the United States, including the Permian Basin, Denver-Julesburg Basin, Bakken Shale, Eagle Ford Shale, Haynesville Shale, Gulf Coast, South Central Oklahoma Oil Province and Sooner Trend Anadarko Basin Canadian and Kingfisher Counties plays.

As the Company looks ahead to 2025, we anticipate steady business opportunities as both the U.S.

and global economies continue to demonstrate resilience.

We further expect our financial results to show slight year-over-year improvement.

According to the International Energy Agency, global oil demand is projected to increase by 1.1 million barrels per day in 2025, compared to demand growth of 1.2 million barrels per day in 2024.

As we are a production-focused business with solely domestic operations, we have also considered the U.S.

Energy Information Administration’s estimate that daily crude oil production in the United States is expected to increase to 13.5 million barrels per day, up from 13.2 million barrels per day in 2024.

It is anticipated by the International Energy Agency that OPEC+ will begin increasing production in 2025, while demand is expected to remain relatively muted.

We operate in most of the active oil and natural gas basins in the U.S., including the Permian Basin, Denver-Julesburg Basin, Bakken Shale, Eagle Ford Shale, Haynesville Shale, Gulf Coast, South Central Oklahoma Oil Province and Sooner Trend Anadarko Basin Canadian and Kingfisher Counties plays.

As the Company looks ahead to 2026, we anticipate that our core business will remain resilient in the face of continued macroeconomic pressures.

We expect our financial results to show meaningful year-over-year improvement, driven by our production-oriented focus, our continued relationships with our core customers that represent the largest E&P businesses in the Lower 48, and our increased exposure to the Permian Basin following the acquisition of AWS.

We believe the acquisition of AWS will deliver more than $36.0 million in Adjusted EBITDA in fiscal year 2026, while legacy Ranger business lines are expected to remain largely flat year-over-year in the current oil and gas environment.

As we are a production-focused business with solely domestic operations, we have considered the U.S.

Energy Information Administration’s (“EIA”) estimate that daily crude oil production in the U.S.

is expected to remain flat from 2025 to 2026 at 13.6 million barrels per day, up from 13.2 million barrels per day in 2024.

The EIA estimates that Lower 48 crude oil production in the U.S.

is expected to average 11.1 million barrels per day in 2026, down from 11.3 million barrels per day in 2025 but still up from 11.0 million barrels per day in 2024.

In the Permian Basin, where we have our largest base of operations following the acquisition of AWS, crude oil production is expected to remain flat from 2025 to 2026 at 6.6 million barrels per day, up from 6.3 million barrels per day in 2024.

With supply and demand remaining imbalanced, downward pressure on prices is forecasted by both the International Energy Agency and the U.S.

Energy Information Administration, with oil prices expected to average approximately $74 per barrel during 2025 as compared to $81 per barrel in 2024.

While we do not have significant gas market exposure, we expect some tailwinds in gas markets as being potentially beneficial to our business as the U.S.

Energy Information Administration forecasts natural gas spot prices of $3.10 per million BTU and U.S.

LNG exports of 14 billion cubic feet per day in 2025, compared to 2024 actual figures of $2.10 and 12 billion cubic feet, respectively.

Energy Information Administration, with oil prices expected to average approximately $56 per barrel during 2026 as compared to $69 per barrel in 2025 and $81 per barrel in 2024.

Our business should benefit from increased demand for natural gas, driven by domestic electricity demand and international demand for increasing LNG exports from the U.S.

While our direct exposure to natural gas markets is limited in comparison to our crude oil exposure, the assets both we and our competition operate in basins are capable of being deployed across both crude oil and natural gas wells and tightening in either market should benefit the broader complex.

We also see potential tailwinds for our Torrent natural gas processing solution as increases in regulatory requirements around flaring and natural gas demand provide a positive long-term setup.

Acquisitions and Integrations

During 2021, 2022, 2023 and 2024, the Company placed significant focus on acquiring and integrating assets and associated operations, described below, into current business processes.

During the last five years, the Company placed significant focus on acquiring and integrating assets and associated operations, described below, into current business processes.

Through these acquisitions and their subsequent integrations, Ranger has continued to refine its business strategies and processes to focus on the performance of the Company and anticipates that acquisitions will continue to play a key role in the business going forward.

The largest of its recent acquisitions took place during the fall of 2021 when Ranger Energy Acquisition, LLC, entered into an Asset Purchase Agreement for certain assets of Basic and certain of its subsidiaries.

During 2021, Ranger Energy Acquisition, LLC entered into an Asset Purchase Agreement for certain assets of Basic Energy Services, Inc.

and certain of its subsidiaries.

As consideration for the assets acquired, the Company paid $36.7 million in cash, where such cash was generated through the issuance of Series A Preferred Stock.

3 unchanged sentences

During 2023, the Company complemented the earlier acquisitions with the purchase of certain pumping assets and associated equipment to continue to bolster its wireline segment capabilities.

While no deals were completed in 2024, we remained active in the pursuit of accretive opportunities and will continue to do so during 2025.

In November 2025 the Company completed the acquisition of AWS, which operates a fleet of high specification rigs and complementary supporting equipment within the Permian Basin, for a total estimated consideration of approximately $88.6 million, consisting of $61.8 million in cash paid at closing, net of a $3.0 million working capital adjustment, 1,998,401 shares of Class A Common Stock issued to the seller, and a $2.3 million contingent consideration measured at fair value that the seller is eligible to receive based on the performance of the AWS acquisition during the 12 months following the acquisition date.

To fund the cash portion of the acquisition, the Company borrowed $22.0 million under its Wells Fargo Revolving Credit Facility, of which $18.5 million has since been repaid, leaving a balance of $3.5 million as of December 31, 2025.

As a result, the Company maintained substantial available liquidity following the acquisition.

The business is highly

complementary to our existing services and is expected to contribute more than $36.0 million in Adjusted EBITDA in fiscal year 2026 as it is integrated into the Company.

The financial results of AWS subsequent to the acquisition date are included within the High Specification Rigs and Processing Solutions and Ancillary Services reporting segments.

From the acquisition date through December 31, 2025, the acquired business contributed approximately $26.7 million of revenue and $6.9 million of net income to the Company’s consolidated results.

We remained active in the pursuit of accretive opportunities and will continue to do so during 2026.

Internal Controls and Procedures

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, the Company conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2024 based on the guidelines established in the Internal Control—Integrated Framework (2013 framework) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, the Company conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2025 based on the guidelines established in the Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

Based on its assessment, management concluded that the Company’s internal control over financial reporting was effective as of December 31, 2025.

2 unchanged sentences

How We Evaluate Our Operations

We provide services within the United States that are organized into three reporting segments:

We provide services within the U.S.

that are organized into three reporting segments:

High Specification Rigs, Wireline Services, and Processing Solutions and Ancillary Services, which are described below.

2 unchanged sentences

• High Specification Rigs.

Provides high specification well service rigs to facilitate operations throughout the life cycle of a well.

Provides high specification well service rigs to facilitate operations throughout the lifecycle of a well.

• Wireline Services.

1 unchanged sentence

• Processing Solutions and Ancillary Services.

Provides complimentary services often utilized in conjunction with our High Specification Rigs and Wireline Services segments.

The services primarily include equipment rentals, coil tubing, plug and abandonment, and processing solutions.

Other represents costs not allocable to the reporting segments and includes corporate general and administrative expenses and depreciation of corporate furniture and fixtures, amortization, impairments, debt retirements and other items similar in nature.

Provides other services often utilized in conjunction with our High Specification Rigs and Wireline Services segments.

These services include equipment rentals, plug and abandonment, logistics, coil tubing, mixing plants and chemicals, tubing and inspection, transportation, and processing solutions.

Other represents costs not allocable to the reporting segments and includes corporate general and administrative expense and depreciation of corporate furniture and fixtures, amortization, impairments and other items similar in nature.

Financial Metrics

How We Generate Revenue

Rig hours and stage counts, as it relates to our High Specification Rigs and Wireline Services segments, respectively, are important indicators of our activity levels and profitability.

Rig hours and stage counts, as it relates to our High Specification Rigs and parts of our Wireline Services segments, respectively, are important indicators of our activity levels and profitability.

Rig hours represent the aggregate number of hours that our well service rigs actively worked.

15 unchanged sentences

We analyze our operating income or loss by segment, which we have defined as revenue less cost of services and depreciation expense.

While we believe this is a key financial metric as it provides insight on profitability and operational performance based on the historical cost basis of our assets.

We believe this is a key financial metric as it provides insight on profitability and operational performance based on the historical cost basis of our assets.

Adjusted EBITDA

We view Adjusted EBITDA, which is a non‑GAAP financial measure, as an important indicator of performance.

The CODM primarily uses Adjusted EBITDA to assess segment profitability and make resource allocation decisions.

We define Adjusted EBITDA as net income or loss before net interest expense, income tax expense, depreciation and amortization, equity‑based compensation, loss on debt retirement, gain or loss on disposal of property and equipment, acquisition‑related costs, severance and reorganization costs, significant and unusual legal fees and settlements, impairment of fixed assets, and certain other non‑cash and certain other items that we do not view as indicative of our ongoing performance.

See “—Results of Operations” and “—Note Regarding Non‑GAAP Financial Measure” for more information and reconciliations of net

income (loss) to Adjusted EBITDA, the most directly comparable financial measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S.

The Chief Operating Decision Maker (“CODM”) primarily uses Adjusted EBITDA to assess segment profitability and make resource allocation decisions.

We define Adjusted EBITDA as net income or loss before net interest expense, income tax expense, depreciation and amortization, equity-based compensation, acquisition-related costs, severance and reorganization costs, gain on sale of assets, significant and unusual legal fees and settlements, impairment of assets, employee retention credit, inventory adjustment, and certain other non-cash and certain other items that we do not view as indicative of our ongoing performance.

See “—Results of Operations” and “—Note Regarding Non‑GAAP Financial Measure” for more information and reconciliations of net income (loss) to Adjusted EBITDA, the most directly comparable financial measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S.

Results of Operations

13 unchanged sentences

Processing Solutions and Ancillary Services 107.3 98.4 8.9 9 %

Total cost of services 472.8 531.7 (58.9) (11) %

Total cost of services (exclusive of depreciation and amortization) 456.6 472.8 (16.2) (3) %

General and administrative 29.6 27.8 1.8 6 %

6 unchanged sentences

Interest expense, net 1.2 2.6 (1.4) (54) %

Loss on debt retirement — 2.4 (2.4) (100) %

Other income, net (3.6) — (3.6) 100 %

Total other expenses (2.4) 2.6 (5.0) (192) %

6 unchanged sentences

High Specification Rig revenue increased $10.9 million, or 3%, to $347.0 million for the year ended December 31, 2025 from $336.1 million for the year ended December 31, 2024.

The increase in revenue included an increase in average revenue per rig hour by 5% to $736 from $703 for the year ended December 31, 2023, coupled by a corresponding 2% increase in total rig hours to 456,900 for the year ended December 31, 2024 from 446,000 for the year ended December 31, 2023.

The increase in revenue reflects revenue growth of $17.1 million related to the AWS acquisition and included a 3% increase in total rig hours to 472,400 for the year ended December 31, 2025 from 456,900 for the year ended December 31, 2024.

Wireline Services.

2 unchanged sentences

This decrease in completion services and stage count corresponds with lower operational activity as the Company adjusted its service mix in response to market conditions.

Wireline pump down experienced decreases year over year in revenue of $2.4 million that were driven by pricing reductions as a consequence of increased competition from frac providers.

These declines were offset by wireline production service

revenue, which increased year over year by $4.4 million reflecting increased operational activity and an intentional management decision to pivot to production related work.

Wireline production and pump down experienced decreases year over year in revenue of $13.2 million and $10.8 million, respectively, that were driven by pricing reductions as a consequence of increased competition from frac providers.

Processing Solutions and Ancillary Services.

Processing Solutions and Ancillary Services revenue increased $0.6 million, to $124.8 million for the year ended December 31, 2024 from $124.2 million for the year ended December 31, 2023.

The increase reflects higher activity in other Ancillary Services lines with revenue growth in our rentals, plugging and abandonment, and logistics service lines of $5.5 million, $1.1 million, and $1.1 million, respectively.

Our Torrent gas processing business has continued to expand, generating $8.5 million in revenue for the year ended December 31, 2024, compared to $5.0 million for the year ended December 31, 2023, an increase of $3.5 million.

These increases were partially offset by declines in our coil tubing and snubbing services, which decreased by $4.5 million and $2.3 million, respectively.

Processing Solutions and Ancillary Services revenue increased $6.2 million, or 5%, to $131.0 million for the year ended December 31, 2025 from $124.8 million for the year ended December 31, 2024.

The increase reflects higher activity in other Ancillary Services lines with revenue growth of $9.6 million related to the AWS acquisition.

Our Torrent gas processing business has continued to expand, generating $14.3 million in revenue for the year ended December 31, 2025, compared to $8.5 million for the year ended December 31, 2024, an increase of $5.8

These increases were partially offset by declines in our plugging and abandonment and coil tubing services, which decreased by $4.5 million and $2.6 million, respectively.

Cost of services (exclusive of depreciation and amortization).

Cost of services (exclusive of depreciation and amortization) decreased $16.2 million, or 3%, to $456.6 million for the year ended December 31, 2025 from $472.8 million for the year ended December 31, 2024.

As a percentage of revenue, cost of services was approximately 83% and 84% for the years ended December 31, 2024 and 2023, respectively.

As a percentage of revenue, cost of services was approximately 83% for both the years ended December 31, 2025 and 2024, respectively.

The change in cost of services by segment was as follows:

1 unchanged sentence

High Specification Rig cost of services increased $9.8 million, or 4%, to $276.9 million for the year ended December 31, 2025 from $267.1 million for the year ended December 31, 2024.

The increase was primarily attributable to an increase in variable expenses, notably employee-related labor, repair and maintenance, and travel costs of $11.4 million, $3.2 million and $2.6 million, respectively.

As a percentage of High Specification Rigs Services revenue, cost of services improved from 80% for the year ended December 31, 2023 to 79% for the year ended December 31, 2024.

The increase in cost of services was primarily attributable to an additional expense of $9.9 million related to the AWS acquisition.

As a percentage of High Specification Rigs Services revenue, cost of services increased slightly from 79% for the year ended December 31, 2024 to 80% for the year ended December 31, 2025.

Wireline Services.

1 unchanged sentence

The decrease is primarily attributable to a decrease in costs from the completion services lines by approximately $16.8 million as the Company reorganized this service line in response to lower operation activity.

Additionally, costs decreased within production and pump down services by $10.5 million and $7.6 million, respectively.

As a percentage of Wireline Services revenue, cost of services increased from 97% for the year ended December 31, 2024 to 105% for the year ended December 31, 2025 primarily due to declining operating leverage due to lower activity levels.

The decrease in completion service line costs was offset by an increase in costs from the production service line to drive expanding activity levels.

Processing Solutions and Ancillary Services.

Processing Solutions and Ancillary Services cost of services decreased $3.4 million, or 3%, to $98.4 million for the year ended December 31, 2024 from $101.8 million for the year ended December 31, 2023.

The decrease is primarily attributable to decreased employee labor, repair and maintenance, travel, and fuel costs which amounted to $2.9 million, $1.6 million, $1.5 million and $0.9 million in cost reductions, respectively.

As a percentage of Processing Solutions and Ancillary Services revenue, cost of services improved from 82% for the year ended December 31, 2023 to 79% for the year ended December 31, 2024 due to service line mix with increased activity in higher margin service lines offset by reductions in services lines that historically carried higher cost levels.

Processing Solutions and Ancillary Services cost of services increased $8.9 million, or 9%, to $107.3 million for the year ended December 31, 2025 from $98.4 million for the year ended December 31, 2024.

The increase is primarily attributable to increased employee labor and repair and maintenance costs which amounted to $3.4 million each.

These increases were driven by higher activity levels and the inclusion of $6.2 million of costs related to operations acquired in the AWS Acquisition.

As a percentage of Processing Solutions and Ancillary Services revenue, cost of services increased from 79% for the year ended December 31, 2024 to 82% for the year ended December 31, 2025 primarily due to higher labor and repair and maintenance costs associated with the integration of AWS operations.

General and Administrative.

General and administrative expenses decreased $1.7 million, or 6%, to $27.8 million for the year ended December 31, 2024 from $29.5 million for the year ended December 31, 2023.

The decrease in general and administrative expenses is primarily due to lower personnel costs and professional fees relative to the year ended December 31, 2023.

General and administrative expenses increased $1.8 million, or 6%, to $29.6 million for the year ended December 31, 2025 from $27.8 million for the year ended December 31, 2024.

The increase in general and administrative expenses is primarily due to higher personnel costs driven by an increase in the Company headcount as a result of the AWS acquisition, coupled with legal fees and transactional costs.

Depreciation and Amortization.

Depreciation and amortization increased $2.2 million, or 5%, to $46.3 million for the year ended December 31, 2025 from $44.1 million for the year ended December 31, 2024.

The increase was largely attributable to capital expenditures during the year ended December 31, 2024.

The increase was largely attributable to depreciation of assets acquired in the AWS acquisition during the year ended December 31, 2025.

Interest Expense, net.

Net interest expense decreased $1.4 million, or 54%, to $1.2 million for the year ended December 31, 2025 from $2.6 million for the year ended December 31, 2024.

The decrease in net interest expense was attributable to the decreased levels of borrowings year over year in conjunction with refinancings completed during the second quarter of 2023 resulting in lower borrowing costs.

The changes in interest expense, net was attributable to higher interest income recognized on non-recurring items during 2025.

Income Tax Expense.

Income tax expense increased $0.4 million, or 6%, to $7.6 million for the year ended December 31, 2024 from $7.2 million for the year ended December 31, 2023.

The increase in income tax expense resulted from a one-time discreet benefit recorded during the year ended December 31, 2023.

Income tax expense decreased $2.1 million, or 28%, to $5.5 million resulting in an effective tax rate of 31% for the year ended December 31, 2025 from $7.6 million resulting in an effective tax rate of 29% for the year ended December 31, 2024.

The decrease in income tax expense resulted from a decrease in profit before tax when compared to the prior period.

Net income for the year ended December 31, 2025 decreased $6.1 million, or 33%, to $12.3 million from $18.4 million for the year ended December 31, 2024.

2 unchanged sentences

Adjusted EBITDA is not a financial measure determined in accordance with U.S.

We define Adjusted EBITDA as net income or loss before net interest expense, income tax expense, depreciation and amortization, equity‑based compensation, loss on debt retirement, gain or loss on disposal of property and equipment, acquisition related costs, severance and reorganization costs, significant and unusual legal fees and settlements, impairment of fixed assets, and certain other non-cash and certain other items that we do not view as indicative of our ongoing performance.

We believe Adjusted EBITDA is a useful performance measure because it allows for an effective evaluation of our operating performance when compared to our peers, without regard to our financing methods or capital structure.

We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired.

the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired.

Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income (loss) determined in accordance with U.S.

14 unchanged sentences

EBITDA 70.1 (3.5) 23.7 (25.0) 65.3

Impairment of fixed assets — — — 0.4 0.4

Equity based compensation — — — 6.5 6.5

Gain on disposal of property and equipment — — — (2.2) (2.2)

Gain on sale of assets — — — (1.4) (1.4)

Severance and reorganization costs — 1.0 0.1 0.1 1.2

1 unchanged sentence

Legal fees and settlements — — — 0.8 0.8

Employee retention credit — — — (3.5) (3.5)

Inventory adjustment — 1.6 — — 1.6

Adjusted EBITDA $ 70.3 $ (0.3) $ 23.9 $ (20.7) $ 73.2

7 unchanged sentences

Equity based compensation — — — 5.8 5.8

Loss on retirement of debt — — — 2.4 2.4

Gain on disposal of property and equipment — — — (1.8) (1.8)

Gain on sale of assets — — — (2.2) (2.2)

Severance and reorganization costs 0.9 0.6 0.2 0.1 1.8

Acquisition related costs 0.4 — — 0.1 0.5

Impairment of fixed assets — — — 0.4 0.4

Legal fees and settlements 0.2 — — 0.1 0.3

Adjusted EBITDA $ 70.5 $ 3.5 $ 26.6 $ (21.7) $ 78.9

5 unchanged sentences

EBITDA 1.1 (6.4) (2.7) 0.6 (7.4)

Impairment of fixed assets — — — 0.4 0.4

Equity based compensation — — — 0.7 0.7

Loss on retirement of debt — — — (2.4) (2.4)

Gain on disposal of property and equipment — — — (0.4) (0.4)

Gain on sale of assets — — — 0.8 0.8

Severance and reorganization costs (0.9) 0.4 (0.1) — (0.6)

1 unchanged sentence

Legal fees and settlements (0.2) — — 0.7 0.5

Impairment of fixed assets — — — (0.4) (0.4)

Employee retention credit — — — (3.5) (3.5)

Inventory adjustment — 1.6 — — 1.6

Adjusted EBITDA $ (0.2) $ (3.8) $ (2.7) $ 1.0 $ (5.7)

2 unchanged sentences

High Specification Rigs.

High Specification Rigs Adjusted EBITDA increased $6.4 million to $70.5 million from $64.1 million primarily due to an increase in revenue of $22.8 million partially offset by an increase in cost of services of $17.9 million.

High Specification Rigs Adjusted EBITDA decreased slightly by $0.2 million to $70.3 million from $70.5 million due to an increase in cost of services of $9.8 million, coupled by severance and reorganization costs from the prior period, slightly offset by a corresponding increase in revenue of $10.9 million.

Wireline Services.

Wireline Services Adjusted EBITDA decreased $16.6 million to $3.5 million from $20.1 million primarily due to significant decreases in operating activity within the completions service line and higher costs relative to revenues in production and pump down service lines.

Wireline Services Adjusted EBITDA decreased $3.8 million to a loss of $0.3 million from earnings of $3.5 million primarily due to significant decreases in operating activity within the completions service line and higher costs relative to revenues in production and pump down service lines.

Processing Solutions and Ancillary Services.

Processing Solutions and Ancillary Services Adjusted EBITDA increased $4.2 million to $26.6 million from $22.4 million due to an increase in revenue of $0.6 million coupled with a decrease in cost of services of $3.4 million, driven by increasing operational activity and increased contribution from higher margin service lines.

Processing Solutions and Ancillary Services Adjusted EBITDA decreased $2.7 million to $23.9 million from $26.6 million due to an increase in cost of services of $8.9 million, slightly offset by a corresponding increase in revenue of $6.2 million.

Other Adjusted EBITDA improved $1.0 million for the year ended December 31, 2025 to a loss of $20.7 million from a loss of $21.7 million.

The balances included in Other reflect other general and administrative costs, which are not directly attributable to High Specification Rigs, Wireline Services or Processing Solutions and Ancillary Services.

The year over year reduction is attributable to certain reduced personnel costs and professional fees.

Liquidity and Capital Resources

2 unchanged sentences

As of December 31, 2025, we had total liquidity of $67.7 million, consisting of $10.3 million of cash on hand and availability under our Wells Fargo Revolving Credit Facility of $57.4 million.

Under the Wells Fargo Revolving Credit Facility, the total loan capacity was $75.0 million, net of no borrowings and $3.8 million in Letters of Credit open under the facility.

Under the Wells Fargo Revolving Credit Facility, the total loan capacity was $64.4 million, net of $3.5 million in borrowings and $3.5 million in Letters of Credit open under the facility.

This compares to the Company’s available borrowings under the Wells Fargo Revolving Credit Facility of $71.2 million as of December 31, 2024.

The decrease in total loan capacity compared to December 31, 2024 was primarily attributable to a reduction in the borrowing base, as the Wells Fargo Revolving Credit Facility is subject to a borrowing base determined by eligible accounts receivable and eligible unbilled revenue, less certain reserves.

In connection with the AWS acquisition, certain acquired accounts receivable and unbilled revenue were not included in the borrowing base as of December 31, 2025, which reduced the total loan capacity under the facility.

We strive to maintain financial flexibility and proactively monitor potential capital sources to meet our investment and target liquidity requirements that permit us to manage the cyclicality associated with our business.

11 unchanged sentences

Net cash flows from operating activities decreased $15.5 million to $69.0 million for the year ended December 31, 2025 compared to $84.5 million for the year ended December 31, 2024.

The change in cash flows from operating activities is primarily attributable to the change in working capital which decreased to $7.6 million for the year ended December 31, 2024 from $12.9 million for the year ended December 31, 2023 which was largely due to a decrease in contract assets and accounts payable balances, offset by collections of accounts receivable.

The change in cash flows from operating activities is primarily attributable to the change in working capital, which decreased by $12.4 million, from a $7.6 million source of cash for the year ended December 31, 2024 to a $4.8 million use of cash for the year ended December 31, 2025, largely due to a decrease in accounts payable and accrued expenses balances, offset by a decrease in prepaid expenses.

Investing Activities

Net cash flows used in investing activities increased $45.0 million to $76.1 million for the year ended December 31, 2025 compared to $31.1 million for the year ended December 31, 2024.

The change in cash flows from investing activities is largely attributable to slight increases in fixed asset additions that took place during the year ended December 31, 2024 and less proceeds from asset disposals relative to those that occurred during the year ended December 31, 2023.

The change in cash flows from investing activities is largely attributable to the AWS acquisition that occurred November 7, 2025.

Financing Activities

Net cash flows used in financing activities decreased $20.9 million, or 43%, to cash used of $28.2 million for the year ended December 31, 2024 compared $49.1 million for the year ended December 31, 2023.

Net cash flows used in financing activities decreased $4.7 million, or 17%, to $23.5 million for the year ended December 31, 2025 compared to $28.2 million for the year ended December 31, 2024.

For the year ended December 31, 2025, cash used in financing activities was primarily allocated to the repurchase of Class A Common Stock totaling $12.2 million, compared to $15.5 million in the prior year (see Part II, Item 8.

Financial Statements and Supplementary Data — Note 11 — Equity).

Additionally, the Company consolidated its debt and repaid the prior EBC Revolving Credit Facility, M&E Term Loan Facility, and the secured promissory note with borrowings from the new Wells Fargo Revolving Credit Facility (see —Debt Agreements, below, and Part II, Item 8.

Additionally, the Company had $3.5 million in borrowings under the Wells Fargo Revolving Credit Facility to fund operating and investing activities (see —Debt Agreements, below, and Part II, Item 8.

Financial Statements and Supplementary Data — Note 10 — Debt).

These repayments, totaling $19.1 million, reflect the Company’s ability to pay down debt in 2023 with proceeds generated from operating activities.

Supplemental Cash Flow Disclosures

During the year ended December 31, 2024, the Company added fixed assets of $8.6 million and $4.6 million primarily related to finance leased assets and asset trades, respectively, across all operating segments.

This compares to $10.0 million and $1.1 million primarily related to finance leased assets and asset trades, respectively, for the year ended December 31, 2023.

Additionally, the Company paid approximately $2.0 million in interest related to debt and finance leased assets during 2024, compared to $1.4 million during 2023.

During the years ended December 31, 2025 and 2024, the Company added fixed assets of $8.9 million and $8.6 million, respectively, primarily related to finance leased assets, and $1.8 million and $4.6 million, respectively, primarily related to asset trades.

Additionally, the Company paid approximately $2.0 million of interest related to debt and finance leased assets in both fiscal year 2025 and 2024.

During fiscal year 2025, the Company issued 1,998,401 shares of Class A Common Stock, with a total value of $27.5 million based on the Company’s stock price on the acquisition date, as part of the consideration for the acquisition of AWS.

Working Capital

Our working capital, which we define as total current assets less total current liabilities, was $52.0 million and $78.7 million as of December 31, 2025 and 2024, respectively.

Increasing cash balances contributed most significantly to the working capital increase year over year.

Decreasing cash balances related to the AWS acquisition contributed most significantly to the working capital decrease year over year.

Debt Agreements

5 unchanged sentences

The Company has up to $5.0 million available under the Wells Fargo Revolving Credit Facility for letters of credit, subject to assignment.

At loan origination, the Company had a Letter of Credit in the amount of $1.6 million, to be utilized for working capital and general corporate purposes, as needed.

On September 25, 2023, the Company entered into an agreement with Wells Fargo Bank, N.A.

which designated an additional Letter of Credit in the amount of $1.6 million as part of incremental collateral requirements for the Company’s 2024 insurance renewal.

The initial maturity date was September 25, 2024, with provisions for automatic annual renewal related to the same insurance policy.

On September 25, 2024, the amount of the Letter of Credit was increased to $2.1 million as part of incremental collateral requirements for the Company’s 2025 insurance renewal, with a new maturity date of September 25, 2025.

The interest rate for this Letter of Credit was approximately 1.8% for the month ended December 31, 2024.

The Wells Fargo Revolving Credit Facility was drawn in part on May 31, 2023, to repay the prior EBC Revolving Credit Facility, M&E Term Loan Facility, and the secured promissory note.

The undrawn portion of the Wells Fargo Revolving Credit Facility is available to fund working capital and other general corporate expenses and for other permitted uses, including the financing of permitted investments and restricted payments, such as dividends and share repurchases.

As of December 31, 2025, Letters of Credit outstanding totaled $3.5 million.

These Letters of Credit are primarily to be utilized for working capital, general corporate purposes, and to support the Company’s insurance programs, and have been amended periodically in connection with annual insurance renewals.

One Letter of Credit totals $2.8 million and a second Letter of Credit totals $0.7 million, with a maturity date of September 19, 2026.

The interest rate applicable to the Letters of Credit was approximately 2.0% for the month ended December 31, 2025.

The Wells Fargo Revolving Credit Facility is available to fund working capital and other general corporate expenses and for other permitted uses, including the financing of permitted investments and restricted payments, such as dividends and share repurchases.

The Wells Fargo Revolving Credit Facility is subject to a borrowing base that is calculated based upon a percentage of the Company’s eligible accounts receivable and unbilled revenue less certain reserves.

1 unchanged sentence

The Wells Fargo Revolving Credit Facility includes an acceleration clause and cash dominion provisions which under certain circumstances permits the administrative agent to sweep cash daily from certain bank accounts into an account of the administrative agent to repay the Company’s obligations under the Wells Fargo Revolving Credit Facility.

The borrowings of the Wells Fargo Revolving Credit Facility, therefore, are classified as Long-term debt, current portion on the Consolidated Balance Sheet.

The borrowings of the Wells Fargo Revolving Credit Facility, therefore, are classified as a current liability on the Consolidated Balance Sheet.

Under the Wells Fargo Revolving Credit Facility, the total loan capacity is $64.4 million, which is based on a borrowing base certificate in effect as of December 31, 2025.

On June 17, 2024, the Company entered into the First Amendment to the Wells Fargo Revolving Credit Facility, which allows for a percentage of unbilled revenue to be included in the calculation of the borrowing base.

The Company did not have any borrowings under the Wells Fargo Revolving Credit Facility as of December 31, 2024.

The Company does have $3.8 million in Letters of Credit open under the facility, leaving a residual $71.2 million available for borrowings as of December 31, 2024.

The Company had outstanding borrowings of $3.5 million under the Wells Fargo Revolving Credit Facility and had $3.5 million in Letters of Credit open under the facility, leaving a residual $57.4 million available for borrowings as of December 31, 2025.

Borrowings under the Wells Fargo Revolving Credit Facility bear interest at a rate per annum ranging from 1.75% to 2.25% in excess of SOFR and 0.75% to 1.25% in excess of the Base Rate, dependent on the average excess availability.

The weighted average interest rate for the loan was approximately 5.9% for the year ended December 31, 2025.

Eclipse Loan and Security Agreement

On September 27, 2021, the Company entered into a loan and security agreement with Eclipse Business Capital LLC (“EBC”) and Eclipse Business Capital SPV, LLC, as administrative agent providing the Company with a senior secured credit facility in an aggregate principal amount of $77.5 million, consisting of (i) a revolving credit facility in an aggregate principal amount of up to $50.0 million (the “EBC Revolving Credit Facility”), (ii) a machinery and equipment term loan facility in an aggregate principal amount of up to $12.5 million (the “M&E Term Loan Facility”) and (iii) a term loan B facility in an aggregate principal amount of up to $15.0 million (the “Term Loan B Facility”).

On August 16, 2022, the Company fully repaid the Term Loan B Facility and M&E Term Loan Facility, making principal payments totaling $12.4 million and $1.5 million, respectively.

On May 31, 2023, the Company extinguished the Eclipse Revolving Credit Facility and Eclipse M&E Term Loan Facility, paying the remaining principal amount of $8.4 million to extinguish the debt, using

funds from the Wells Fargo Revolving Credit Facility.

The Company recognized a loss on the retirement of debt of $2.4 million in connection with the initiation of the Wells Fargo Revolving Credit Facility.

Secured Promissory Note

On July 8, 2021, the Company acquired the assets of PerfX Wireline Services (“PerfX”), a provider of wireline services that operated in Williston, North Dakota and Midland, Texas.

In connection with the PerfX acquisition, Bravo Wireline, LLC, a wholly owned subsidiary of Ranger, entered into a secured promissory note with Chief Investments, LLC, as administrative agent, for the financing of certain assets acquired.

On May 31, 2023, the Company made principal payments totaling $5.4 million to extinguish the debt, using funds from the Wells Fargo Revolving Credit Facility.

Our borrowing base does not include any accounts receivable or unbilled revenue from the acquisition of AWS as of December 31, 2025.

These balances will be considered for the borrowing base in fiscal year 2026 as the business is integrated into the Company’s financial reportings under the Credit Agreement.

Other Installment Purchases

During the year ended December 31, 2021, the Company entered into various Installment and Security Agreements (collectively, the “Installment Agreements”) in connection with the purchase of certain ancillary equipment, where such assets are being held as collateral.

During the years ended December 31, 2024 and 2023, the Company paid down the Installment Agreements by $0.1 million and $0.4 million, respectively.

During the year ended December 31, 2024, the Company paid down the Installment Agreements by $0.1 million.

As of the year ended December 31, 2024, the Company had fully paid the Installment Agreements.

Capital Returns Program

On March 7, 2023, the Company announced a share repurchase program authorizing the Company to purchase up to $35 million of Class A Common Stock that could be utilized for up to 36 months.

On March 4, 2024, the Company announced that its Board of Directors approved for additional share repurchases of $50.0 million, bringing the total share repurchase program authorization to $85.0 million in aggregate value.

In 2023, the Board of Directors approved the initiation a quarterly dividend of $0.05 per share.

In March 2023, the Company initially announced a share repurchase program authorizing the Company to purchase up to $35 million of Class A Common Stock that could be utilized for up to 36 months.

On March 4, 2024, the Company announced that the Board of Directors approved for an additional share repurchase program authorization of $50.0 million, bringing the total share repurchase program authorization to $85.0 million in aggregate value.

During the year ended December 31, 2025, the Company repurchased 994,400 shares of the Company’s Class A Common Stock for a total of $12.3 million, net of tax, on the open market.

As of December 31, 2025, an aggregate of 4,320,200 shares of Class A Common Stock were purchased for a total of $47.1 million, net of tax since the inception of the repurchase program announced on March 7, 2023 and $38.2 million remained available under the share repurchase program.

In 2023, the Board of Directors approved the initiation of a quarterly dividend of $0.05 per share.

The Company increased the quarterly dividend to $0.06 per share in 2025.

The Company believes that a share repurchase and dividend framework provides the best overall value creation potential for investors.

The Company paid dividend distributions totaling $5.5 million and $4.5 million to stockholders for the year ended December 31, 2025 and 2024, respectively.

The declaration of any future dividends is subject to the Board of Directors’ discretion and approval.

The amount and timing of all future dividend payments, if any, are subject to the discretion of the Board of Directors and will depend upon business conditions, results of operations, financial condition, terms of our debt agreements and other factors.

There can be no assurance that we will pay a dividend in the future.

Critical Accounting Estimates and Policies

16 unchanged sentences

Accounting for our property and equipment requires us to estimate the expected useful lives of our fleet and related equipment and any related salvage value.

The range of estimated useful lives is based on overall size and specifications of the fleet, expected utilization along with continuous repairs and maintenance that may or may not extend the estimated useful

To the extent the expenditures extends the expected useful life, these expenditures are capitalized and depreciated over the extended useful life.

11 unchanged sentences

Management determines discount rates based on the risk inherent in the acquired assets, specific risks, industry beta and capital structure of guideline companies.

The valuation of an acquired business is based on available information at the acquisition date and assumptions that are believed to be reasonable.

However, a change in facts and circumstances as of the acquisition date can result in subsequent adjustments during the measurement period, but no later than one year from the acquisition date.

The valuation of an acquired business is based on available information at the acquisition date and assumptions that are believed to be reasonable at that time.

Long‑lived Asset Impairment

14 unchanged sentences

Both positive and negative evidence, as well as the objectivity and verifiability of that evidence, is considered in determining the appropriateness of recording a valuation allowance on deferred tax assets.

GAAP, the valuation allowance is recorded to reduce the Company’s deferred tax assets to an amount that is more likely than not to be realized and is based

upon the uncertainty of the realization of certain federal and state deferred tax assets related to net operating loss carryforwards and other tax attributes.

GAAP, the valuation allowance is recorded to reduce the Company’s deferred tax assets to an amount that is more likely than not to be realized and is based upon the uncertainty of the realization of certain federal and state deferred tax assets related to net operating loss carryforwards and other tax attributes.

Equity‑Based Compensation

3 unchanged sentences

We estimate the fair value of our performance stock units using an option pricing model that includes certain assumptions, such as volatility, dividend yield and the risk-free interest rate.

Changes in these assumptions could change the fair value of our unit-based awards and associated compensation expense in our consolidated statements of operations.

While these assumptions impact the resulting fair value, they are generally based on observable market data, including our own stock price, and changes in these assumptions could affect the amount of compensation expense recognized in our consolidated statements of operations.

Recent Accounting Pronouncements

3 unchanged sentences

The Company is a “smaller reporting company” as defined by Rule 12b-2 of the Exchange Act.

Smaller reporting company means an issuer that is not an investment company, an asset-back issuer, or a majority-owned subsidiary of a parent that is not a smaller reporting company and that (i) has a market value of common stock held by non-affiliates of less than $250 million;

or (i) has annual revenue of less than $100 million and either no common stock held by non-affiliates or a market value of common stock held by non-affiliates of less than $700 million.

Smaller reporting company means an issuer that is not an investment company, an asset-backed issuer, or a majority-owned subsidiary of a parent that is not a smaller reporting company and that (i) has a market value of common stock held by non-affiliates of less than $250 million;

or (ii) has annual revenue of less than $100 million and either no common stock held by non-affiliates or a market value of common stock held by non-affiliates of less than $700 million.

Smaller reporting company status is determined on an annual basis.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis