Cactus, Inc. 10-K

Item 8. Financial Statements and Supplementary Data The following Consolidated Financial Statements are filed as part of this Annual Report: Cactus, Inc. and Subsidiaries Management’s Report on Internal Control Over Financial Reporting 40 Report of Independent Registered Public Accounting Firm (PCAOB ID 238 ) 41 Consolidated Balance Sheets as of December 31, 2025 and 2024 43 Consolidated Statements of Income for the Years Ended December 31, 2025, 2024 and 2023 44 Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2025, 2024 and 2023 45 Consolidated Statements of Stockholders’ Equity for the Years Ended December 31, 2025, 2024 and 2023 46 Consolidated Statements of Cash Flows for the Years Ended December 31, 2025, 2024 and 2023 47 Notes to the Consolidated Financial Statements 48 39 Table of Contents Management’s Report on Internal Control Over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended. Our internal control over financial reporting was designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. In making its assessment, management has utilized the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (or “COSO”) in Internal Control-Integrated Framework (2013 framework). Based on this assessment, management has concluded that, as of December 31, 2025, our internal control over financial reporting was effective. Our independent registered public accounting firm, PricewaterhouseCoopers, LLP, has issued an audit report on the effectiveness of our internal control over financial reporting as of December 31, 2025, which appears herein. /s/ Scott Bender /s/ Jay A. Nutt Chief Executive Officer, Chairman of the Board and Director Executive Vice President and Chief Financial Officer Houston, Texas February 26, 2026 40 Table of Contents Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholders of Cactus, Inc. Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated balance sheets of Cactus, Inc. and its subsidiaries (the "Company") as of December 31, 2025 and 2024, and the related consolidated statements of income, of comprehensive income, of stockholders' equity and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes (collectively referred to as the "consolidated financial statements"). We also have audited the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO. Basis for Opinions The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. 41 Table of Contents Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Critical Audit Matters The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Liability related to the Tax Receivable Agreement As described in Note 11 to the consolidated financial statements, the Company has a liability under the Tax Receivable Agreement ("TRA") of $262.9 million as of December 31, 2025. In connection with its initial public offering, the Company entered into the TRA with certain direct and indirect owners of Cactus LLC (the "TRA Holders"). The TRA generally provides for the payment by the Company to the TRA Holders of 85% of the net cash savings, if any, in United States federal, state and local income tax and franchise tax that the Company actually realizes or is deemed to realize in certain circumstances as a result of (i) certain increases in tax basis that occur as a result of the Company's acquisition (or deemed acquisition for U.S. federal income tax purposes) of all or a portion of such TRA Holder’s ownership interest in Cactus, LLC (ii) certain increases in tax basis resulting from the repayment of borrowings outstanding under Cactus LLC’s term loan facility, and (iii) imputed interest deemed to be paid by the Company as a result of, and additional tax basis arising from, any payments the Company makes under the TRA. Management calculates the TRA liability by determining the tax basis subject to the TRA (“tax basis”) and applying a blended tax rate to the basis differences and calculating the iterative impact. The blended tax rate consists of the U.S. federal income tax rate and an assumed combined state and local income tax rate driven by the apportionment factors applicable to each state. The principal considerations for our determination that performing procedures relating to the liability related to the TRA is a critical audit matter are (i) a high degree of auditor subjectivity and effort in performing procedures and evaluating audit evidence related to management’s calculation of the tax basis and development of applicable state apportionment factors utilized in determining the blended tax rate and (ii) the audit effort involved the use of professionals with specialized skill and knowledge. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to relating to the calculation and recognition of the TRA liability, including controls over the completeness and accuracy of the underlying data used in the tax basis and blended tax rate calculations. These procedures also included, among others, testing the completeness and accuracy of the underlying information used in the calculation of the TRA liability, and the involvement of professionals with specialized skill and knowledge to assist in (i) developing an independent calculation of the tax basis, (ii) comparing the independent calculation to management’s calculations to evaluate the reasonableness of the tax basis, (iii) evaluating the apportionment factors and the resulting blended tax rate, and (iv) assessing management’s application of the tax laws. Evaluating management’s determination of the apportionment factors involved considering the current and expected activity levels of the Company and whether the apportionment factors were consistent with evidence obtained in other areas of the audit. /s/ PricewaterhouseCoopers LLP Houston, Texas February 26, 2026 We have served as the Company’s auditor since 2015, which includes periods before the Company became subject to SEC reporting requirements. 42 Table of Contents CACTUS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31, (in thousands, except per share data) 2025 2024 Assets Current assets Cash and cash equivalents $ 123,571 $ 342,843 Restricted cash 371,011 — Accounts receivable, net of allowance of $ 4,494 and $ 3,779 , respectively 164,493 191,627 Inventories 276,613 226,796 Prepaid expenses and other current assets 19,231 13,422 Total current assets 954,919 774,688 Property and equipment, net 342,592 346,008 Operating lease right-of-use assets, net 19,491 24,094 Intangible assets, net 148,004 163,991 Goodwill 203,028 203,028 Deferred tax asset, net 187,545 219,003 Investment in unconsolidated affiliates 5,923 — Other noncurrent assets 10,115 8,516 Total assets $ 1,871,617 $ 1,739,328 Liabilities and Equity Current liabilities Accounts payable $ 71,541 $ 72,001 Accrued expenses and other current liabilities 59,095 75,416 Current portion of liability related to tax receivable agreement 21,314 20,297 Finance lease obligations, current portion 7,476 7,024 Operating lease liabilities, current portion 4,815 4,086 Total current liabilities 164,241 178,824 Deferred tax liability, net 2,786 2,868 Liability related to tax receivable agreement, net of current portion 241,609 258,376 Finance lease obligations, net of current portion 9,672 10,528 Operating lease liabilities, net of current portion 15,786 20,078 Other noncurrent liabilities 4,475 4,475 Total liabilities 438,569 475,149 Commitments and contingencies Stockholders’ equity Preferred stock, $ 0.01 par value, 10,000 shares authorized, none issued and outstanding — — Class A common stock, $ 0.01 par value, 300,000 shares authorized, 68,890 and 68,152 shares issued and outstanding 688 681 Class B common stock, $ 0.01 par value, 215,000 shares authorized, 10,958 and 11,433 shares issued and outstanding — — Additional paid-in capital 546,926 520,794 Retained earnings 680,353 552,133 Accumulated other comprehensive loss ( 1,577 ) ( 2,491 ) Total stockholders’ equity attributable to Cactus Inc. 1,226,390 1,071,117 Non-controlling interest 206,658 193,062 Total stockholders’ equity 1,433,048 1,264,179 Total liabilities and equity $ 1,871,617 $ 1,739,328 The accompanying notes are an integral part of these consolidated financial statements. 43 Table of Contents CACTUS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME Year Ended December 31, 2025 2024 2023 (in thousands, except per share data) Revenues Product revenue $ 825,471 $ 852,265 $ 810,379 Rental revenue 85,240 101,785 113,631 Field service and other revenue 168,340 175,764 172,950 Total revenues 1,079,051 1,129,814 1,096,960 Costs and expenses Cost of product revenue 489,751 496,888 490,149 Cost of rental revenue 48,042 54,448 61,983 Cost of field service and other revenue 141,840 142,085 138,536 Selling, general and administrative expenses 148,917 130,462 127,076 Change in fair value of earn-out liability — 16,318 14,850 Total costs and expenses 828,550 840,201 832,594 Operating income 250,501 289,613 264,366 Interest income (expense), net 10,962 6,459 ( 6,480 ) Other (expense) income, net ( 794 ) 3,204 4,490 Income before income taxes 260,669 299,276 262,376 Income tax expense 59,027 66,518 47,536 Net income $ 201,642 $ 232,758 $ 214,840 Less: net income attributable to non-controlling interest 35,628 47,351 45,669 Net income attributable to Cactus Inc. $ 166,014 $ 185,407 $ 169,171 Earnings per Class A share - basic $ 2.42 $ 2.79 $ 2.62 Earnings per Class A share - diluted $ 2.41 $ 2.77 $ 2.57 Weighted average Class A shares outstanding - basic 68,565 66,393 64,641 Weighted average Class A shares outstanding - diluted 69,015 79,915 79,460 The accompanying notes are an integral part of these consolidated financial statements. 44 Table of Contents CACTUS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Year Ended December 31, 2025 2024 2023 (in thousands) Net income $ 201,642 $ 232,758 $ 214,840 Foreign currency translation adjustments 1,129 ( 1,974 ) 239 Comprehensive income 202,771 230,784 215,079 Less: comprehensive income attributable to non-controlling interest 35,843 47,042 45,750 Comprehensive income attributable to Cactus Inc. $ 166,928 $ 183,742 $ 169,329 The accompanying notes are an integral part of these consolidated financial statements. 45 Table of Contents CACTUS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY Class A Common Stock Class B Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Non-controlling Interest Total Equity (in thousands) Shares Amount Shares Amount Balance at December 31, 2022 60,903 $ 609 14,978 $ — $ 310,528 $ 261,764 $ ( 984 ) $ 138,528 $ 710,445 Issuance of common stock 3,352 34 — — 143,722 — — 26,122 169,878 Member distributions — — — — — — — ( 16,644 ) ( 16,644 ) Effect of CW Unit redemptions 944 9 ( 944 ) — 12,787 — — ( 12,796 ) — Tax impact of equity transactions — — — — ( 13,099 ) — — 16,508 3,409 Equity award vestings 218 2 — — ( 3,422 ) — — ( 1,501 ) ( 4,921 ) Other comprehensive loss — — — — — — 158 81 239 Share repurchases ( 8 ) — — — ( 286 ) — — ( 41 ) ( 327 ) Stock-based compensation — — — — 14,782 — — 3,322 18,104 Cash dividends declared ($ 0.46 per share) — — — — — ( 30,253 ) — — ( 30,253 ) Net income — — — — — 169,171 — 45,669 214,840 Balance at December 31, 2023 65,409 $ 654 14,034 $ — $ 465,012 $ 400,682 $ ( 826 ) $ 199,248 $ 1,064,770 Member distributions — — — — — — — ( 13,290 ) ( 13,290 ) Effect of CC Unit redemptions 2,601 26 ( 2,601 ) — 41,636 — — ( 41,662 ) — Tax impact of equity transactions — — — — 2,014 — — — 2,014 Equity award vestings 228 2 — — ( 4,292 ) — — ( 1,669 ) ( 5,959 ) Other comprehensive income — — — — — — ( 1,665 ) ( 309 ) ( 1,974 ) Share repurchases ( 87 ) ( 1 ) — — ( 2,996 ) — — ( 375 ) ( 3,372 ) Stock-based compensation — — — — 19,420 — — 3,768 23,188 Cash dividends declared ($ 0.50 per share) — — — — — ( 33,956 ) — — ( 33,956 ) Net income — — — — — 185,407 — 47,351 232,758 Balance at December 31, 2024 68,151 $ 681 11,433 $ — $ 520,794 $ 552,133 $ ( 2,491 ) $ 193,062 $ 1,264,179 Member distributions — — — — — — — ( 15,604 ) ( 15,604 ) Effect of CC Unit redemptions 475 — ( 475 ) — 8,550 — — ( 8,550 ) — Tax impact of equity transactions — — — — 736 — — — 736 Equity award vestings 264 7 — — ( 4,376 ) — — ( 1,558 ) ( 5,927 ) Other comprehensive loss — — — — — — 914 215 1,129 Stock-based compensation — — — — 21,222 — — 3,465 24,687 Cash dividends declared ($ 0.54 per share) — — — — — ( 37,794 ) — — ( 37,794 ) Net income — — — — — 166,014 — 35,628 201,642 Balance at December 31, 2025 68,890 $ 688 10,958 $ — $ 546,926 $ 680,353 $ ( 1,577 ) $ 206,658 $ 1,433,048 The accompanying notes are an integral part of these consolidated financial statements. 46 Table of Contents CACTUS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended December 31, (in thousands) 2025 2024 2023 Cash flows from operating activities Net income $ 201,642 $ 232,758 $ 214,840 Reconciliation of net income to net cash provided by operating activities: Depreciation and amortization 63,914 60,438 65,045 Deferred financing cost amortization 1,081 1,120 4,514 Stock-based compensation 24,493 22,888 18,105 Provision for expected credit losses 1,211 370 2,622 Inventory obsolescence 3,163 3,841 5,337 Gain on disposal of assets ( 2,985 ) ( 1,013 ) ( 3,156 ) Deferred income taxes 35,142 19,773 17,343 Change in fair value of earn-out liability — 16,318 14,850 (Gain) loss from revaluation of liability related to tax receivable agreement 794 ( 3,204 ) ( 4,490 ) Changes in operating assets and liabilities: Accounts receivable 26,443 13,048 ( 11,858 ) Inventories ( 52,456 ) ( 25,628 ) 41,922 Prepaid expenses and other assets ( 5,955 ) ( 2,267 ) 753 Accounts payable ( 2,132 ) 675 8,710 Accrued expenses and other liabilities ( 15,869 ) 28,964 ( 7,367 ) Payments pursuant to tax receivable agreement ( 20,069 ) ( 20,800 ) ( 26,890 ) Payment of earn-out liability — ( 31,168 ) — Net cash provided by operating activities 258,417 316,113 340,280 Cash flows from investing activities Acquisition of a business, net of cash and cash equivalents acquired — — ( 616,189 ) Investment in unconsolidated affiliates ( 6,000 ) — — Capital expenditures and other ( 38,805 ) ( 39,176 ) ( 43,977 ) Proceeds from sale of assets 5,742 3,788 5,373 Net cash used in investing activities ( 39,063 ) ( 35,388 ) ( 654,793 ) Cash flows from financing activities Proceeds from the issuance of long-term debt — — 155,000 Repayments of borrowings of long-term debt — — ( 155,000 ) Net proceeds from the issuance of Class A common stock — — 169,878 Payment of contingent consideration — ( 5,960 ) — Payments of deferred financing costs ( 2,400 ) — ( 6,934 ) Payments on finance leases ( 7,692 ) ( 7,882 ) ( 7,652 ) Dividends paid to Class A common stock shareholders ( 37,441 ) ( 33,681 ) ( 30,124 ) Distributions to members ( 15,604 ) ( 13,290 ) ( 16,644 ) Repurchases of shares ( 5,927 ) ( 9,331 ) ( 5,249 ) Net cash (used in) provided by financing activities ( 69,064 ) ( 70,144 ) 103,275 Effect of exchange rate changes on cash and cash equivalents 1,449 ( 1,530 ) 503 Net increase (decrease) in cash, cash equivalents and restricted cash 151,739 209,051 ( 210,735 ) Cash, cash equivalents and restricted cash Beginning of period 342,843 133,792 344,527 End of period $ 494,582 $ 342,843 $ 133,792 The accompanying notes are an integral part of these consolidated financial statements. 47 Table of Contents CACTUS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except share and per share data, or as otherwise indicated) 1. Organization and Nature of Operations Cactus, Inc. (“Cactus Inc.”) and its consolidated subsidiaries (the “Company”), including Cactus Companies, LLC (“Cactus Companies”) are primarily engaged in the design, manufacture, sale and rental of highly engineered pressure control and spoolable pipe technologies. Our products are sold and rented principally for onshore unconventional oil and gas wells and are utilized during the drilling, completion and production phases of our customers’ wells. We also provide field services for all of our products and rental items to assist with the installation, maintenance and handling of the equipment. Additionally, we offer repair and refurbishment services for pressure control equipment. We operate through service centers and pipe yards located in the United States, Canada and Australia. We also provide rental and service operations in the Middle East and other select international markets. We have manufacturing and production facilities in Bossier City, Louisiana, Baytown, Texas and Suzhou, China. In addition, a new plant is commencing production in Vietnam. Our corporate headquarters are located in Houston, Texas. Cactus Inc. was incorporated on February 17, 2017 as a Delaware corporation for the purpose of completing an initial public offering of equity and related transactions, which was completed on February 12, 2018 (our “IPO”). Cactus Inc. is a holding company whose only material asset is an equity interest consisting of units representing limited liability company interests in Cactus Companies (“CC Units”). Cactus Inc. is the sole managing member of Cactus Companies and is responsible for all operational, management and administrative decisions relating to Cactus Companies’ business. Pursuant to the Amended and Restated Limited Liability Company Operating Agreement of Cactus Companies (the “Cactus Companies LLC Agreement”), owners of CC Units are entitled to redeem their CC Units for shares of Cactus Inc.’s Class A common stock, par value $ 0.01 per share (“Class A common stock”) on a one-for-one basis, which results in a corresponding increase in Cactus Inc.’s membership interest in Cactus Companies and an increase in the number of shares of Class A common stock outstanding. We refer to the owners of CC Units, other than Cactus Inc. (along with their permitted transferees), as “CC Unit Holders.” CC Unit Holders own one share of our Class B common stock, par value $ 0.01 per share (“Class B common stock”) for each CC Unit such CC Unit Holder owns. Except as otherwise indicated or required by the context, all references to “Cactus,” “we,” “us” and “our” refer to Cactus Inc. and its consolidated subsidiaries (including Cactus Companies). On February 28, 2023, Cactus Inc. through one of its subsidiaries, completed the acquisition of the FlexSteel business (the “Merger”) through a merger with HighRidge Resources, Inc. and its subsidiaries (“HighRidge”). On February 27, 2023, in order to facilitate the Merger with HighRidge, an internal reorganization was completed in which Cactus Companies acquired all of the outstanding units representing ownership interests in Cactus Wellhead, LLC (“Cactus LLC”), the operating subsidiary of Cactus Inc. (the “CC Reorganization”). The purpose of the Merger was to effect the acquisition of the operations of FlexSteel Holdings, Inc. and its subsidiaries. FlexSteel Holdings, Inc. was a wholly-owned subsidiary of HighRidge prior to the Merger and was converted into a limited liability company, contributed from HighRidge to Cactus Companies as part of the CC Reorganization and is now named FlexSteel Holdings, LLC (“FlexSteel”). The results of operations of FlexSteel have been reflected in our accompanying condensed consolidated financial statements from the closing date of the acquisition. See further discussion of the acquisition in Note 3. 2. Summary of Significant Accounting Policies and Other Items Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These consolidated financial statements include the accounts of Cactus Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. As the sole managing member of Cactus Companies, Cactus Inc. operates and controls all of the business and affairs of Cactus Companies and conducts its business through Cactus Companies and its subsidiaries. As a result, Cactus Inc. consolidates the financial results of Cactus Companies and its subsidiaries and reports a non-controlling interest related to the portion of CC Units not owned by Cactus Inc., which reduces net income attributable to holders of Cactus Inc.’s Class A common stock. 48 Table of Contents Investments in Unconsolidated Affiliates In November 2023, the Company entered into an agreement to invest in a Vietnam forging manufacturing facility for an ownership percentage of 40 %. In January 2025, the Company provided an initial capital contribution of $ 6.0 million. In late 2025 the parties decided not to proceed with the development of the facility and are in the process of liquidating the assets and returning the capital to the respective parties. The investment in a company in which Cactus does not have a controlling financial interest, but over which it has significant influence, is accounted for using the equity method. The Company's share of the after-tax earnings of the equity method investment was recorded in field service and other revenue in the consolidated statements of income. Use of Estimates In preparing our consolidated financial statements in conformity with GAAP, we make numerous estimates and assumptions that affect the accounting for and recognition and disclosure of assets, liabilities, equity, revenues and expenses. We must make these estimates and assumptions because certain information that we use is dependent on future events, cannot be calculated with a high degree of precision from available data or is not otherwise capable of being readily calculated based on accepted methodologies. In some cases, these estimates are particularly difficult to determine, and we must exercise significant judgment. Actual results could differ materially from the estimates and assumptions that we use in the preparation of our consolidated financial statements. Concentrations of Credit Risk Our assets that are potentially subject to concentrations of credit risk are cash and cash equivalents and accounts receivable. We manage the credit risk associated with these financial instruments by transacting only with what management believes are financially secure counterparties, requiring credit approvals and credit limits and monitoring counterparties’ financial condition. Our receivables are spread over a number of customers, a majority of which are oil and natural gas E&P companies representing private operators, publicly-traded independents, majors and other companies with operations in the key U.S. oil and gas producing basins, as well as Australia, Canada and the Middle East. Our maximum exposure to credit loss in the event of non‑performance by the customer is limited to the receivable balance. We perform ongoing credit evaluations and monitoring as to the financial condition of our customers with respect to trade receivables. Generally, no collateral is required as a condition of sale. We also control our exposure associated with trade receivables by discontinuing sales and service to non-paying customers. For the years ended December 31, 2025, 2024, and 2023 one customer represented 17 %, 15 % and 10 %, respectively, of total Company revenues, with both operating segments reporting revenues with the customer. Significant Vendors The principal raw materials used in the manufacture of our pressure control products and rental equipment include forgings, tube and bar stock. In addition, we require accessory items (such as elastomers, ring gaskets, studs and nuts) and machined components and assemblies. The principal raw materials used for our spoolable products include tube, bar stock, steel strip and high-density polyethylene. We purchase a majority of these items from vendors primarily located in the United States, China, India, Australia and Vietnam. For the year ended December 31, 2025 no vendor represented 10% or more of our total third-party vendor purchases of raw materials, finished products, equipment, machining and other services. For the years ended December 31, 2024 and 2023, one vendor represented approximately 10 % of our total third-party vendor purchases of raw materials, finished products, equipment, and machining and other services. Tax Receivable Agreement (TRA) We account for amounts payable under the TRA in accordance with Accounting Standards Codification (“ASC”) Topic 450, Contingencies. As such, subsequent changes to the measurement of the TRA liability are recognized in the statements of income as a component of other income (expense), net. During the years ended December 31, 2025, 2024 and 2023, we recognized a $ 0.8 million loss, a $ 3.2 million gain and a $ 4.5 million gain on the change in the TRA liability, respectively. See Note 11 for further details on the TRA liability. 49 Table of Contents Revenue Recognition The majority of our revenues are derived from short-term contracts for fixed consideration, or in the case of equipment rentals, for a fixed charge per day while the equipment is in use by the customer. Product sales generally do not include right of return or other significant post-delivery obligations. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Revenues are recognized when we satisfy a performance obligation by transferring control of the promised goods or providing services to our customers at a point in time, in an amount specified in the contract with our customer and that reflects the consideration to which we expect to be entitled in exchange for those goods or services. The majority of our contracts with customers contain a single performance obligation to provide agreed upon products or services. For contracts with multiple performance obligations, we allocate revenue to each performance obligation based on its relative standalone selling price. We do not assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract with the customer. We do not incur any material costs of obtaining contracts. We do not adjust the amount of consideration per the contract for the effects of a significant financing component when we expect, at contract inception, that the period between the transfer of a promised good or service to a customer and when the customer pays for that good or service will be one year or less, which is in substantially all cases. Payment terms and conditions vary, although terms generally include a requirement of payment within 30 to 60 days. Revenues are recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. We treat shipping and handling associated with outbound freight as a fulfillment cost instead of as a separate performance obligation. We recognize the cost for the associated shipping and handling when incurred as an expense in cost of sales. Our revenues are derived from three sources: products, rentals, and field service and other: Product revenue. Product revenues are primarily derived from the sale of wellhead systems, production trees, spoolable pipe and connections. Revenue is recognized when the customer obtains control of the products. Rental revenue. Rental revenues are primarily derived from the rental of equipment, tools and products to customers used for well control as well as rental of equipment used for pipe installation. Our rental agreements are directly with our customers and provide for a rate based primarily on the period of time the equipment is used or made available to the customer. In addition, customers are charged for repair costs for our frac equipment, typically through an agreed upon rate for each rental job. Revenue is recognized ratably over the rental period, which tends to be short-term in nature with most equipment on site for less than 90 days. Field service and other revenue. We provide field services to our customers based on contractually agreed rates. Other revenues are derived from providing repair and reconditioning services to customers who have installed wellheads and production trees on their wellsite. Revenues are recognized as the services are performed or rendered. Foreign Currency Translation The financial position and results of operations of our foreign subsidiaries are measured using the local currency as the functional currency. Revenues and expenses of the subsidiaries have been translated into U.S. dollars at average exchange rates prevailing during the period. Assets and liabilities have been translated at the rates of exchange on the balance sheet dates. The resulting translation gain and loss adjustments have been recorded directly as a separate component of other comprehensive income in the consolidated statements of comprehensive income and stockholders’ equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in our consolidated statements of income as incurred. Derivative Financial Instruments We utilize a hedging program to reduce the risks associated with changes in the value of monetary assets and liabilities denominated in currencies other than the functional currency of our subsidiaries. Under this program, we utilize foreign currency forward contracts to offset gains or losses recorded upon remeasurement of assets and liabilities stated in the non-functional currencies of our subsidiaries. These forward contracts are not designated as hedges for accounting purposes. As such, we record changes in fair value of the forward contracts in our consolidated statements of income along with the gain or loss resulting from remeasurement of the U.S. dollar denominated financial assets and liabilities held by our foreign subsidiaries. The forward contracts are typically only 30 days in duration and are settled and renewed each month. As of December 31, 2025 and 2024, the fair value of our forward contracts was immaterial. 50 Table of Contents Stock-based Compensation We measure the cost of equity‑based awards on the grant date fair value and allocate the compensation expense over the requisite service period, which is usually the vesting period. The grant date fair value is determined by the closing price of our Class A common stock on the grant date. Income Taxes Deferred taxes are recorded using the asset and liability method, whereby tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax laws and rates expected to apply to taxable income in the year in which the differences are expected to reverse. We regularly evaluate the valuation allowances established for deferred tax assets for which future realization is uncertain. In assessing the realizability of deferred tax assets, we consider both positive and negative evidence, including scheduled reversals of deferred tax assets and liabilities, projected future taxable income, tax planning strategies and results of recent operations. If, based on the weight of available evidence, it is more likely than not that the deferred tax assets will not be realized, a valuation allowance is recorded. Cactus Inc. is a corporation and is subject to U.S. federal as well as state income tax related to its ownership percentage in Cactus Companies. Cactus Companies is a Delaware limited liability company treated as a partnership for U.S. federal income tax purposes and files a U.S. Return of Partnership Income, which includes both our U.S. and foreign operations. Consequently, the members of Cactus Companies are taxed individually on their share of earnings for U.S. federal and state income tax purposes. Cactus Companies is subject to the Texas Margins Tax and our operations in China, Australia, Canada, Vietnam and the Middle East are subject to local country income taxes. See Note 7 for additional information regarding income taxes. Cash and Cash Equivalents Cash in excess of current operating requirements is invested in short-term interest-bearing investments with maturities of three months or less at the date of purchase and is stated at cost, which approximates fair value. Throughout the year we maintained cash balances that were not covered by federal deposit insurance. We have not experienced any losses in such accounts. Restricted Cash Restricted cash represents amounts that are not available for general corporate use because they are subject to contractual or legal restrictions. Consistent with U.S. GAAP, the Company presents restricted cash separately from cash and cash equivalents on the consolidated balance sheets and includes restricted cash in the reconciliation of beginning and ending cash, cash equivalents, and restricted cash in the consolidated statements of cash flows. As of December 31, 2025 the Company had $ 371.0 million of restricted cash held in an escrow account in connection with the then-pending acquisition of Baker Hughes Pressure Control LP. Under the terms of the purchase agreement, these funds were required to be placed in escrow and were restricted from use for any purpose other than funding the acquisition consideration at closing. The escrowed funds were released on January 1, 2026, the acquisition closing date, at which point the restriction lapsed and the cash was released to certain affiliates of Baker Hughes Company. For information concerning the Baker Hughes Transaction, see Note 19 to our consolidated financial statements. The restricted cash balance is classified as a current asset, as the restriction was scheduled to be released within one year of the balance sheet date. The following table provides a reconciliation of the amounts presented in the consolidated balance sheets to the total amounts shown in the consolidated statements of cash flows: December 31, 2025 2024 2023 Cash and cash equivalents $ 123,571 $ 342,843 $ 133,792 Restricted cash 371,011 — — Total cash, cash equivalents and restricted cash $ 494,582 $ 342,843 $ 133,792 51 Table of Contents Accounts Receivable and Allowance for Credit Losses We extend credit to customers in the normal course of business. Our customers are predominantly oil and gas E&P companies in the United States. Our receivables are short-term in nature and typically due in 30 to 60 days. We do not accrue interest on delinquent receivables. Accounts receivable includes amounts billed and currently due from customers and unbilled amounts for products delivered and services performed for which billings have not yet been submitted to the customers. Total unbilled revenue included in accounts receivable as of December 31, 2025 and 2024 was $ 39.4 million and $ 29.8 million, respectively. We maintain an allowance for credit losses to provide for the amount of billed receivables we believe to be at risk of loss. In our determination of the allowance for credit losses, we pool receivables with similar risk characteristics based on customer size, credit ratings, payment history, bankruptcy status and other factors known to us and apply an expected credit loss percentage. The expected credit loss percentage is determined using historical loss data adjusted for current conditions and forecasts of future economic conditions. Accounts deemed uncollectible are applied against the allowance for credit losses. The following is a roll forward of our allowance for credit losses: Balance at Beginning of Period Expense Write off Other Balance at End of Period Year Ended December 31, 2025 $ 3,779 $ 1,211 $ ( 502 ) $ 6 $ 4,494 Year Ended December 31, 2024 3,642 370 ( 254 ) 21 3,779 Year Ended December 31, 2023 1,060 2,622 ( 36 ) ( 4 ) 3,642 Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using standard cost (which approximates average cost). Costs include an application of related material, direct labor, duties, tariffs, freight and overhead costs. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Reserves are made for excess and obsolete items based on a range of factors, including age, usage and technological or market changes that may impact demand for those products. The inventory obsolescence reserve was $ 31.1 million and $ 28.0 million as of December 31, 2025 and 2024, respectively. The following is a roll forward of our inventory obsolescence reserve: Balance at Beginning of Period Expense Write off Translation Adjustments Balance at End of Period Year Ended December 31, 2025 $ 28,048 $ 3,163 $ ( 226 ) $ 129 $ 31,114 Year Ended December 31, 2024 25,638 3,841 ( 1,285 ) ( 146 ) 28,048 Year Ended December 31, 2023 20,488 5,337 ( 193 ) 6 25,638 Property and Equipment Property and equipment are stated at cost. We manufacture or construct most of our pressure control rental assets and during the production of these assets, they are reflected as construction in progress until complete. We depreciate the cost of property and equipment using the straight‑line method over the estimated useful lives and depreciate our rental assets to their salvage value. Leasehold improvements are amortized over the shorter of the remaining lease term or economic life of the related assets. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss are reflected in income for the period. The cost of maintenance and repairs is charged to income as incurred while significant renewals and improvements are capitalized. Estimated useful lives are as follows: 52 Table of Contents Land N/A Buildings and improvements 5 - 30 years Machinery and equipment 3 - 20 years Reels and skids 10 - 20 years Vehicles 3 - 5 years Rental equipment 2 - 11 years Furniture and fixtures 5 years Computers and software 3 - 7 years Property and equipment as of December 31, 2025 and 2024 consists of the following: December 31, 2025 2024 Land $ 16,442 $ 16,442 Buildings and improvements 135,957 133,187 Machinery and equipment 156,467 139,605 Reels and skids 21,480 18,737 Vehicles 39,621 41,175 Rental equipment 233,331 222,975 Furniture and fixtures 2,021 1,905 Computers and software 11,953 4,919 Gross property and equipment 617,272 578,945 Less: Accumulated depreciation ( 297,505 ) ( 262,198 ) Net property and equipment 319,767 316,747 Construction in progress 22,825 29,261 Total property and equipment, net $ 342,592 $ 346,008 Depreciation and amortization was $ 63.9 million, $ 60.4 million and $ 65.0 million for 2025, 2024 and 2023, respectively. Depreciation and amortization expense is included in the consolidated statements of income as follows: Year Ended December 31, 2025 2024 2023 Cost of product revenue $ 17,639 $ 16,287 $ 13,762 Cost of rental revenue 17,486 16,634 20,191 Cost of field service and other revenue 11,079 10,604 9,786 Selling, general and administrative expenses 17,710 16,913 21,306 Total depreciation and amortization $ 63,914 $ 60,438 $ 65,045 Impairment of Long‑Lived Assets We review the recoverability of long‑lived assets, including finite-lived acquired intangible assets and property and equipment, when events or changes in circumstances occur that indicate the carrying value of the asset or asset group may not be recoverable. The assessment of possible impairment is based on our ability to recover the carrying value of the asset or asset group from the expected future pre‑tax cash flows (undiscounted) of the related operations. If these cash flows are less than the carrying value of such asset, an impairment loss is recognized for the difference between estimated fair value and carrying value. We concluded there were no indicators evident or other circumstances present that these assets were not recoverable and accordingly, no impairment charges of long‑lived assets were recognized for 2025, 2024 and 2023. 53 Table of Contents Goodwill Goodwill represents the excess of purchase price paid over the fair value of the net assets of acquired businesses. Goodwill is not amortized, but we evaluate at least annually whether it is impaired. Goodwill is considered impaired if the carrying amount of the reporting unit exceeds its estimated fair value. We conduct our annual assessment of the recoverability of goodwill as of December 31 of each year. We first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the goodwill impairment test. If the qualitative assessment indicates that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, or if we elect not to perform a qualitative assessment, the quantitative assessment of goodwill test is performed. The goodwill impairment test is also performed whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If it is necessary to perform the quantitative assessment to determine if our goodwill is impaired, we will utilize a discounted cash flow analysis using management’s projections that are subject to various risks and uncertainties of revenues, expenses and cash flows as well as assumptions regarding discount rates, terminal value and control premiums. Estimates of future cash flows and fair value are highly subjective and inherently imprecise. These estimates can change materially from period to period based on many factors. Accordingly, if conditions change in the future, we may record impairment losses, which could be material to any particular reporting period. Based on our annual impairment analysis using qualitative assessments, we concluded that there was no impairment of goodwill in each of the three years ended December 31, 2025. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities as of December 31, 2025 and 2024 are as follows: December 31, 2025 2024 Accrued professional fees and other $ 14,130 $ 11,385 Payroll, incentive compensation, payroll taxes and benefits 12,609 13,925 Accrued international freight and tariffs 9,540 4,988 Deferred revenue 7,707 8,069 Customer deposits 6,116 6,512 Taxes other than income 3,455 4,045 Income based tax payable 2,497 24,112 Product warranties 1,801 1,493 Accrued dividends 1,240 887 Total accrued expenses and other current liabilities $ 59,095 $ 75,416 Self-Insurance Accrued Expenses We maintain a partially self-insured health benefit plan which provides medical and prescription drug benefits to certain of our employees electing coverage under the plan. Our exposure is limited by individual and aggregate stop loss limits through third-party insurance carriers. Our self-insurance expense is accrued based upon the aggregate of the expected liability for reported claims and the estimated liability for claims incurred but not reported, based on historical claims experience provided by our third-party insurance advisors, adjusted as necessary based upon management’s reasoned judgment. Actual employee medical claims expense may differ from estimated loss provisions based on historical experience. The liabilities for these claims are included as a component of payroll, incentive compensation, payroll taxes and benefits in the table above and were $ 2.0 million and $ 2.3 million at December 31, 2025 and 2024, respectively. Product Warranties We generally warrant our wellhead manufactured products for 12 months and our manufactured spoolable pipe and connections for up to 24 months from the date placed in service. The estimated liability for product warranties is based on historical and current claims experience. 54 Table of Contents Employee Benefit Plans Our employees within the United States are eligible to participate in a 401(k) plan sponsored by us. These employees are eligible to participate on the first day of the month following 30 days of employment and if they are at least eighteen years of age. Eligible employees may contribute a percentage of their compensation subject to a maximum imposed by the Internal Revenue Code. Broadly similar benefit plans exist for employees of our foreign subsidiaries. We match 100 % of the first 3 % of gross pay contributed by each employee and 50 % of the next 4 % of gross pay contributed by each employee, and we may also make additional non‑elective employer contributions at our discretion under the plan. During 2025, 2024 and 2023, employer matching contributions totaled $ 5.8 million, $ 5.6 million and $ 3.7 million, respectively. Recent Accounting Pronouncements Recently adopted accounting pronouncements In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, “Income Taxes (Topic 740) .” The amendments in this ASU require entities to disclose on an annual basis specific categories in the income tax rate reconciliation and provide additional disclosures for reconciling items that meet a specified quantitative threshold. Entities will also be required to disclose annually income taxes paid disaggregated by federal, state and foreign taxes and the amount of income taxes paid by individual jurisdictions that meet a five percent or greater threshold of total income taxes paid net of refunds received. The Company adopted ASU 2023-09 on a prospective basis during the year ended December 31, 2025. See Note 7 Income Taxes in the accompanying notes to the consolidated financial statements for further detail. Standards Not Yet Adopted 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 . The new standard would require public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2024-03. In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software . This standard update modernizes the capitalization criteria for internal-use software, eliminating references to project stages and instead requiring that projects meet completion probability criteria before costs can be capitalized. This guidance is effective for annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of these amendments but does not anticipate that adoption will have a material impact on the Company's results of operations or financial position. 3. FlexSteel Acquisition On February 28, 2023 (the “acquisition date”), we completed the acquisition of FlexSteel in accordance with the terms and conditions of the merger agreement dated December 30, 2022. Including final adjustments for closing working capital, cash on hand and indebtedness adjustments as set forth in the merger agreement, we paid total cash consideration of $ 627.5 million. Pro forma financial information The pro forma financial information below represents the combined results of operations for the year ended December 31, 2023, as if the acquisition had occurred as of January 1, 2022. The unaudited pro forma combined financial information includes, where applicable, adjustments for additional amortization expense related to the fair value step-up of intangible assets, additional inventory fair value step-up expense, additional depreciation expense associated with adjusting property and equipment to fair value, decreases in interest expense due to modification of borrowings in conjunction with the acquisition and associated tax-related impacts of adjustments. These pro forma adjustments are based upon assumptions that we believe are reasonable to reflect the impact of the FlexSteel acquisition on our historical financial information on a supplemental pro forma basis. Adjustments do not include the elimination of transaction-related costs incurred or any costs related to integration activities, cost savings or synergies that have been or may be achieved by the combined business. The unaudited pro forma financial information is presented for informational purposes only and is neither indicative of the results of operations that would have occurred if the acquisition had taken place at the beginning of the period presented nor indicative of future operating results. 55 Table of Contents Year Ended December 31, 2023 Revenues $ 1,150,339 Net Income attributable to Cactus, Inc. 181,020 4. Inventories Inventories consist of the following: December 31, 2025 2024 Raw materials $ 28,868 $ 31,031 Work-in-progress 18,853 10,979 Finished goods 228,892 184,786 Total inventories $ 276,613 $ 226,796 5. Other Intangible Assets The following table presents the detail of acquired intangible assets other than goodwill as of December 31, 2025: Amortization Period Gross Cost Accumulated Amortization Net Book Value Customer relationships 15 years $ 100,300 $ ( 18,946 ) $ 81,354 Developed technology 10 years 77,000 ( 21,817 ) 55,183 Tradename 10 years 16,000 ( 4,533 ) 11,467 Backlog 3 months 7,000 ( 7,000 ) — Total $ 200,300 $ ( 52,296 ) $ 148,004 All intangible assets are amortized over their estimated useful lives. The weighted average remaining amortization period for identifiable intangible assets acquired is 9.8 years. Amortization expense recognized during the twelve months ended December 31, 2025 was $ 16.0 million and was recorded in SG&A expenses in the consolidated statements of income. Estimated future amortization expense is as follows: 2026 15,987 2027 15,987 2028 15,987 2029 15,987 2030 15,987 Thereafter 68,069 Total $ 148,004 56 Table of Contents 6. Debt We had no debt outstanding as of December 31, 2025 and 2024. We had $ 1.8 million in letters of credit outstanding and were in compliance with all covenants under the Amended ABL Credit Facility (as defined below) as of December 31, 2025. The Amended ABL Credit Facility was amended in December 2025 (the “Amended ABL Credit Facility”). The amendment established a delayed‑draw term loan facility (the “Term Loan Facility”) and extended the maturity of the revolving credit facility. The amendment provides for a term loan facility of up to the lesser of $ 100.0 million and 85 % of the appraised value of eligible machinery and equipment, which may be drawn in up to two advances during the six months following December 1, 2025. The term loan facility was undrawn as of December 31, 2025. Any amounts drawn will mature three years from the initial funding date and bear interest, at the borrower’s option, at ABR or SOFR‑based rates plus applicable margins. The unused portion of the term loan facility is subject to a 0.05 % monthly unused line fee. The December 2025 amendment also extended the maturity of the revolving credit facility to December 1, 2030. The Amended ABL Credit Facility requires compliance with a maximum leverage ratio of 2.50 to 1.00 for so long as the term loan facility is outstanding or available. Until the Term Loan Facility is repaid or terminated without being drawn, the collateral for the ABL Credit Facility was expanded to include certain equipment and intellectual property of Cactus Companies and its subsidiaries that are guarantors. The Amended ABL Credit Facility provides up to $ 225.0 million in revolving commitments, of which $ 20.0 million is available for the issuance of letters of credit. Subject to certain terms and conditions set forth in the Amended ABL Credit Facility, Cactus Companies may request additional revolving commitments in an amount not to exceed $ 50.0 million, for a total of up to $ 275.0 million in revolving commitments. The maximum amount that Cactus Companies may borrow under the Amended ABL Credit Facility is subject to a borrowing base, which is based on a percentage of eligible accounts receivable and eligible inventory, subject to reserves and other adjustments. Borrowings under the Amended ABL Credit Facility bear interest at Cactus Companies’ option at either (i) the Alternate Base Rate (as defined therein) (“ABR”), or (ii) the Adjusted Term SOFR Rate (as defined therein) (“Term Benchmark”), plus, in each case, an applicable margin. Letters of credit issued under the Amended ABL Credit Facility accrue fees at a rate equal to the applicable margin for Term Benchmark borrowings. The applicable margin for revolving loan borrowings ranges from 0.0 % to 0.5 % per annum for revolving loan ABR borrowings and 1.25 % to 1.75 % per annum for revolving loan Term Benchmark borrowings and, in each case, is based on the average quarterly availability of the revolving loan commitment under the Amended ABL Credit Facility for the immediately preceding fiscal quarter. The unused portion of the revolving commitment under the Amended ABL Credit Facility is subject to a commitment fee of 0.25 % per annum. At December 31, 2025 and 2024, although there were no borrowings outstanding, the applicable margin on our Term Benchmark borrowings was 1.25 %, plus the base rate of one, three or six month SOFR plus 0.10 %, subject to a floor rate. Interest (Income) Expense, net Interest (income) expense, net, including deferred financing cost amortization, was comprised of the following: Year Ended December 31, 2025 2024 2023 Interest under bank facilities $ 695 $ 639 $ 3,818 Deferred financing cost amortization 1,081 1,120 4,514 Finance lease interest 1,958 1,635 1,110 Other 615 430 794 Interest income ( 15,311 ) ( 10,283 ) ( 3,756 ) Interest (income) expense, net $ ( 10,962 ) $ ( 6,459 ) $ 6,480 57 Table of Contents 7. Income Taxes Domestic and foreign components of income before income taxes were as follows: Year Ended December 31, 2025 2024 2023 Domestic $ 238,457 $ 272,689 $ 241,084 Foreign 22,212 26,587 21,292 Income before income taxes $ 260,669 $ 299,276 $ 262,376 The provision for income taxes consisted of: Year Ended December 31, 2025 2024 2023 Current: Federal $ 13,156 $ 32,910 $ 18,354 State 2,484 5,183 4,040 Foreign 8,245 8,652 7,799 Total current income taxes 23,885 46,745 30,193 Deferred: Federal 32,352 17,516 12,925 State 3,560 2,636 4,249 Foreign ( 770 ) ( 379 ) 169 Total deferred income taxes 35,142 19,773 17,343 Total provision for income taxes $ 59,027 $ 66,518 $ 47,536 58 Table of Contents The effective income tax rate was different from the statutory U.S. federal income tax rate due to the following: Year Ended December 31, 2025 (1) Amount Percent U.S. federal statutory tax rate $ 54,740 21.0 % State and local income taxes, net of federal income tax effect (2) 4,725 1.8 Foreign tax effects 2,265 0.9 Effect of cross-border tax laws 4,146 1.6 Tax credits Foreign tax credits ( 6,043 ) ( 2.3 ) Other tax credits ( 350 ) ( 0.1 ) Changes in valuation allowances Valuation allowance - foreign tax credits 2,320 0.9 Nontaxable or nondeductible items Executive Compensation Limited 2,622 1.0 Other adjustments Income allocable to non-controlling interest ( 7,739 ) ( 3.0 ) Other 2,341 0.8 Total provision for income taxes and effective tax rate $ 59,027 22.6 % (1) Disaggregated in accordance with ASU 2023-09, which was adopted prospectively in 2025. (2) For 2025, state taxes in New Mexico, Pennsylvania, and Texas make up majority (greater than 50%) of the tax effect of this category Year Ended December 31, 2024 (1) 2023 (1) Income taxes at 21% statutory tax rate $ 62,849 $ 55,094 Net difference resulting from: Profit of non-controlling interest not subject to U.S. federal tax ( 10,293 ) ( 9,951 ) Foreign income taxes (net of foreign tax credit) 2,646 1,918 State income taxes (excluding rate change) 6,113 3,999 Impact of change in forecasted state income tax rate 2,059 4,906 Foreign withholding taxes 1,535 1,419 Change in valuation allowance — ( 12,067 ) Adjustments of prior year taxes ( 1,757 ) 480 Stock compensation ( 661 ) ( 1,193 ) Nondeductible expenses associated with acquisition 2,036 3,951 Other 1,991 ( 1,020 ) Total provision for income taxes $ 66,518 $ 47,536 (1) As presented prior to adoption of ASU 2023-09, which was adopted prospectively in 2025. Our effective tax rate was 22.6 %, 22.2 % and 18.1 % for the years ended December 31, 2025, 2024 and 2023, respectively. Cactus Inc. is only subject to federal and state income tax on its share of income from Cactus Companies. 59 Table of Contents Income taxes paid (net of refunds) exceed 5% of total income taxes (net of refunds) in the following jurisdictions: Year Ended December 31, 2025 Federal $ 36,750 State 3,080 Foreign 8,296 Total income taxes paid (net of refunds) $ 48,126 Except for the U.S. federal income tax cash payments reflected above, the only jurisdictions in which the Company remitted cash taxes in excess of 5% of total 2025 cash tax outflows were China and Australia, where cash taxes totaled $ 5.0 million and $ 2.8 million, respectively. The components of deferred tax assets and liabilities are as follows: December 31, 2025 2024 Investment in Cactus Companies $ 171,647 $ 194,015 Imputed interest 13,874 14,080 Tax credits 13,898 10,563 Net operating loss and other carryforwards 505 9,062 Other 347 356 Deferred tax assets 200,271 228,076 Valuation allowance ( 12,726 ) ( 9,073 ) Deferred tax asset, net 187,545 219,003 Foreign withholding taxes 1,041 1,529 Other 1,745 1,339 Deferred tax liability, net $ 2,786 $ 2,868 As of December 31, 2025, our liability related to the TRA was $ 262.9 million, representing 85 % of the calculated net cash savings in the United States federal, state and local and franchise tax that we anticipate realizing in future years from certain increases in tax basis and certain tax benefits attributed to imputed interest as a result of our acquisition of CC Units. We have determined it is more-likely-than-not that we will be able to utilize all of our tax basis subject to the TRA; therefore, we have recorded a liability related to the TRA for the tax savings we may realize from certain increases in tax basis and certain tax benefits attributable to imputed interest as a result of our acquisition (or deemed acquisition for United States federal income tax purposes) of CC Units. If we determine the utilization of this tax basis is not more-likely-than-not in the future, our estimate of amounts to be paid under the TRA would be reduced. In this scenario, the reduction of the liability under the TRA would result in a benefit to our pre-tax consolidated results of operations in conjunction with an increase to the valuation allowance and an offsetting adjustment to tax expense. We record a deferred tax asset for the differences between our tax and book basis in the investment in Cactus Companies (Cactus LLC prior to the CC Reorganization) and imputed interest on the TRA. Based upon our cumulative earnings history and forecasted future sources of taxable income, we believe that we will be able to realize our U.S. deferred tax assets associated with our investment in Cactus Companies in the future. Subsequent to completion of the FlexSteel acquisition during 2023, we determined that we expect to generate sufficient taxable income of the appropriate type to allow for the realization of the deferred tax asset associated with our investment in Cactus Companies and recognized a $ 12.1 million tax benefit associated with the release of our valuation allowance previously provided. As such, as of December 31, 2023, we no longer have a valuation allowance against the deferred tax asset for the investment in Cactus Companies. During the fourth quarter of 2024, we recognized $ 2.1 million of tax expense associated with the revaluation of our deferred tax asset (the difference between our tax and book basis in the investment in Cactus Companies and imputed interest) as a result of a change in our forecasted state rate. We also record deferred tax assets for imputed interest, certain tax credits and net operating loss and other carryforwards. As of December 31, 2025, we have a valuation allowance of $ 12.7 million against these deferred tax assets, primarily associated with our portion of Cactus Companies’ accrued foreign taxes and state tax credits, due to uncertainty of realization. 60 Table of Contents As of December 31, 2025, we have deferred tax assets on U.S. federal net operating loss (“NOL”) carryforwards of approximately $ 0.5 million which can be used to offset U.S. federal and state taxes payable in future years. The U.S. federal NOL carryforwards have no expiration date whereas the U.S. state NOL carryforwards generally will expire in periods beginning in 2041. As of December 31, 2025, the Company had $ 5.5 million of unrecognized tax benefits all of which would not impact the effective tax rate if recognized. The Company recognizes the interest related to uncertain tax benefits as a component of income tax expense. No penalties or interest were recognized during the year ended December 31, 2025. The aggregate changes in the balance of the Company's unrecognized tax benefits were as follows for the periods presented (in thousands): December 31, 2025 2024 2023 Balance, beginning of year $ 5,474 $ 5,666 $ — Gross increases based on tax positions related to current year — — 5,666 Gross decreases based on tax positions related to prior years — ( 192 ) — Balance, end of year $ 5,474 $ 5,474 $ 5,666 As a result of the FlexSteel acquisition, we acquired certain carryforward tax attributes, which were accounted for as unrecognized tax benefits in the acquisition accounting. This remains the balance of our uncertain tax positions as of December 31, 2025. The unrecognized tax benefits have been offset by an indemnification receivable from the seller of $ 5.5 million. None of federal or state income tax returns are currently under examination by state taxing authorities. Our federal and state income tax returns for the years ended December 31, 2022 through December 31, 2024 remain open for all purposes of examination by the IRS and applicable state taxing jurisdictions. However, certain earlier tax years remain open for adjustment to the extent of their net operating loss and deferred interest carryforwards available for future utilization. 8. Stock-Based Compensation We have a long-term incentive plan (“LTIP”) that provides for the grant of various stock-based compensation awards at the discretion of our Compensation Committee of our Board of Directors. Employees and non-employee directors are eligible to receive awards under the LTIP. Stock-based awards granted pursuant to the LTIP are expected to be settled in shares of our Class A common stock if they vest. Our stock-based awards do not have voting rights prior to vesting. Dividends declared are accumulated and paid upon vesting. We account for forfeitures when they occur and recognize the impact to stock-based compensation expense at that time. We recorded $ 24.5 million, $ 22.9 million and $ 18.1 million of stock-based compensation expense for the years ended December 31, 2025, 2024 and 2023, respectively. Stock-based compensation expense is primarily recorded in selling, general and administrative expenses. We recognized $ 0.3 million of expense, and $ 0.7 million and $ 1.2 million in tax benefits for tax deductions from the vesting of stock-based awards during the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025, 4.9 million stock awards were available for grant. Restricted Stock Units Restricted stock units (“RSUs”) granted to our key employees generally vest over a three-year period (generally vesting ratably in equal tranches over the vesting period); however, RSUs granted to our non-employee directors generally vest on the first anniversary of the grant date. We recognize compensation expense over the requisite service period using straight-line amortization. 61 Table of Contents The following table summarizes our RSU activity during the year ended December 31, 2025 (RSUs in thousands): No. of RSUs Weighted Average Grant Date Fair Value ($) Nonvested as of December 31, 2024 862 $ 45.63 Granted 365 46.42 Vested ( 271 ) 46.70 Forfeited ( 30 ) 46.34 Nonvested as of December 31, 2025 926 $ 45.60 The weighted average grant date fair value of RSUs granted was $ 46.42 during 2025, $ 46.73 during 2024 and $ 43.19 during 2023. The total fair value of RSUs vested was $ 12.3 million during 2025, $ 8.7 million during 2024 and $ 10.1 million during 2023. There was approximately $ 23.3 million of unrecognized compensation expense relating to the unvested RSUs as of December 31, 2025. The unrecognized compensation expense will be recognized over the weighted average remaining vesting period of 2.0 years. Performance Stock Units Performance stock units (“PSUs”) are granted to our executive officers, and in rare instances, other key employees. Under these awards, the number of shares vested and earned is typically determined at the end of a three-year performance period based on our Return on Capital Employed (“ROCE”). The number of shares earned may range from 0 % to 200 % of the target units set forth in the applicable award agreement and is determined at the end of the performance period conditioned upon continued service and on our achievement of certain predefined targets as defined in the underlying performance stock unit agreements. PSUs cliff vest upon conclusion of the three-year performance period subject to review and approval of the Compensation Committee. As the ROCE target represents a performance condition, we recognize compensation expense for the performance share units on a straight-line basis over three years based on the probable outcome of the ROCE performance. The following table summarizes our PSU activity during the year ended December 31, 2025 (PSUs in thousands at their target number of shares, which assumes achievement of 100 % of target, unless otherwise noted): No. of PSUs Weighted Average Grant Date Fair Value ($) Nonvested as of December 31, 2024 181 $ 44.85 Granted 81 46.47 Vested (1) ( 165 ) 42.59 Performance adjustment (2) 82 42.59 Nonvested as of December 31, 2025 179 $ 46.62 (1) Represents shares vested based on actual performance metrics upon conclusion of the performance period. (2) Represents additional shares issued to participants upon vesting due to the performance metrics exceeding target upon conclusion of the performance period. The weighted average grant date fair value of PSUs granted was $ 46.47 during 2025, $ 46.74 during 2024 and $ 44.20 during 2023. The total fair value of PSUs vested was $ 7.5 million during 2025, $ 9.2 million during 2024 and $ 5.9 million during 2023. As of December 31, 2025, there was approximately $ 4.0 million of unrecognized compensation expense relating to the unvested PSUs (based on the grant date fair value of the awards at 100 % of target) which is expected to be recognized over a weighted average period of 1.6 years. 62 Table of Contents 9. Revenue We disaggregate revenue from contracts with customers into three revenue categories: (i) product revenues, (ii) rental revenues and (iii) field service and other revenues. We have predominately domestic operations, with a small amount of sales in Australia, Canada, the Middle East and other international markets. For the year ended December 31, 2025, we derived 76 % of our total revenues from the sale of our products, 8 % of our total revenues from rental and 16 % of our total revenues from field service and other. This compares to 75 % of our total revenues from the sale of our products, 9 % of our total revenues from rental and 16 % of our total revenues from field service and other for the year ended December 31, 2024. In 2023, we derived 74 % of our total revenues from the sale of our products, 10 % from rental and 16 % from field service and other. The following table presents our revenues disaggregated by category: Year Ended December 31, 2025 2024 2023 Product revenue $ 825,471 $ 852,265 $ 810,379 Rental revenue 85,240 101,785 113,631 Field service and other revenue 168,340 175,764 172,950 Total revenue $ 1,079,051 $ 1,129,814 $ 1,096,960 Deferred revenue as of December 31, 2025 and 2024, had a balance of $ 7.7 million and $ 8.1 million, respectively, included in accrued expenses and other current liabilities in the consolidated balance sheets. Deferred revenue represents our obligation to transfer products or perform services for a customer for which we have received cash or billed in advance. The revenue that has been deferred will be recognized upon product delivery or as services are performed. As of December 31, 2025, we did not have any contracts with an original length of greater than a year from which revenue is expected to be recognized in the future related to performance obligations that are unsatisfied. 10. Leases We lease real estate, apartments, forklifts, vehicles and other equipment under non-cancellable agreements. Certain of our leases include one or more options to renew, with renewal terms that can extend the lease term from one to 10 years or greater. The exercise of lease renewal options is typically at our discretion. The measurement of the lease term includes options to extend or renew the lease when it is reasonably certain that we will exercise those options. Lease assets and liabilities are recognized at the commencement date based on the present value of minimum lease payments over the lease term. To determine the present value of future minimum lease payments, we use the implicit rate when readily determinable; however, many of our leases do not provide an implicit rate. Therefore, to determine the present value of minimum lease payments, we use our incremental borrowing rate based on the information available at the commencement date of the lease. Our finance lease agreements typically include an interest rate that is used to determine the present value of future lease payments. Short-term operating leases with an initial term of twelve months or less are not recorded on our balance sheet. Minimum lease payments are expensed on a straight-line basis over the lease term, including reasonably certain renewal options. The following are the components of operating and finance lease costs: Year Ended December 31, 2025 2024 Finance lease cost: Amortization of right-of-use assets $ 8,522 $ 7,922 Interest expense 1,958 1,635 Operating lease cost 6,796 6,343 Short-term lease cost 5,545 5,304 Sublease income ( 501 ) ( 354 ) Total lease cost $ 22,320 $ 20,850 63 Table of Contents The following is supplemental cash flow information for our operating and finance leases: Year Ended December 31, 2025 2024 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 1,958 $ 1,635 Operating cash flows from operating leases 6,257 6,280 Financing cash flows from finance leases 7,692 7,882 Total $ 15,907 $ 15,797 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 1,170 $ 8,346 Finance leases 7,569 9,021 Total $ 8,739 $ 17,367 The following is the aggregate future lease payments for operating and finance leases as of December 31, 2025: Operating Finance 2026 $ 5,718 $ 10,541 2027 4,954 7,123 2028 4,229 3,005 2029 3,066 — 2030 2,343 — Thereafter 3,157 — Total undiscounted lease payments 23,467 20,669 Less: effects of discounting ( 2,866 ) ( 3,521 ) Present value of lease payments $ 20,601 $ 17,148 The following represents the average lease terms and discount rates for our operating and finance leases: Year Ended December 31, 2025 2024 Weighted average remaining lease term: Finance leases 1.6 years 1.8 years Operating leases 5.5 years 6.0 years Weighted average discount rate Finance leases 20.14 % 18.87 % Operating leases 4.73 % 4.79 % As a lessor, we rent a fleet of frac valves and ancillary equipment and equipment used for pipe installation for short-term rental periods, typically one to three months . Our lessor portfolio consists mainly of operating leases for equipment utilized during the drilling, completion and production phases of our customers’ wells. At this time, most lessor agreements contain less than three-month terms with no renewal options that are reasonably certain to exercise, or early termination options based on established terms specific to the individual agreement. See Note 9 for disaggregation of revenue. 11. Tax Receivable Agreement In connection with our IPO, we entered into the TRA with certain direct and indirect owners of Cactus LLC (after the CC Reorganization, Cactus Companies). These owners are referred to as the “TRA Holders”. The TRA generally provides for payment by Cactus Inc. to the TRA Holders of 85 % of the net cash savings, if any, in U.S. federal, state and local income tax and franchise tax that Cactus Inc. actually realizes or is deemed to realize in certain circumstances as a result of (i) certain increases in tax basis that occur as a result of Cactus Inc.’s acquisition (or deemed acquisition for U.S. federal income tax purposes) of all or a portion of such TRA Holder’s CW Units (or CC Units after the CC Reorganization) in connection with our 64 Table of Contents IPO or any subsequent offering, or pursuant to any other exercise of the Redemption Right or the Call Right (each as defined below), (ii) certain increases in tax basis resulting from the repayment of borrowings outstanding under Cactus LLC’s term loan facility in connection with our IPO and (iii) imputed interest deemed to be paid by Cactus Inc. as a result of, and additional tax basis arising from, any payments Cactus Inc. makes under the TRA. We retain the remaining 15 % of the cash savings. The TRA liability is calculated by determining the tax basis subject to the TRA (“tax basis”) and applying a blended tax rate to the basis differences and calculating the resulting iterative impact. The blended tax rate consists of the U.S. federal income tax rate and an assumed combined state and local income tax rate driven by the apportionment factors applicable to each state. As of December 31, 2025, the total liability from the TRA was $ 262.9 million with $ 21.3 million reflected in current liabilities based on the expected timing of our next payment. The payments under the TRA will not be conditional on a holder of rights under the TRA having a continued ownership interest in either Cactus Companies or Cactus Inc. The term of the TRA commenced upon completion of our IPO and will continue until all tax benefits that are subject to the TRA have been utilized or expired, unless we exercise our right to terminate the TRA. If we elect to terminate the TRA early (or it is terminated early due to certain mergers, asset sales, other forms of business combinations or other changes of control relating to Cactus Companies), our obligations under the TRA would accelerate and we would be required to make an immediate payment equal to the present value of the anticipated future payments to be made by us under the TRA and such payment is expected to be substantial. The calculation of anticipated future payments will be based upon certain assumptions and deemed events set forth in the TRA, including the assumptions that (i) we have sufficient taxable income to fully utilize the tax benefits covered by the TRA and (ii) any CC Units (other than those held by Cactus Inc.) outstanding on the termination date are deemed to be redeemed on the termination date. Any early termination payment may be made significantly in advance of the actual realization, if any, of the future tax benefits to which the termination payment relates. We may elect to defer payments due under the TRA if we do not have available cash to satisfy our payment obligations under the TRA. Any such deferred payments under the TRA generally will accrue interest from the due date for such payment until the payment date. 12. Equity As of December 31, 2025, Cactus Inc. owned 86.3 % of Cactus Companies, as compared to 85.6 % as of December 31, 2024. As of December 31, 2025, Cactus Inc. had outstanding 68.9 million shares of Class A common stock (representing 86.3 % of the total voting power) and 11.0 million shares of Class B common stock (representing 13.7 % of the total voting power). Equity Offering In January 2023, Cactus Inc. completed an underwritten offering of 3,224,300 shares of Class A common stock at a price to the underwriters of $ 51.36 per share for net proceeds of $ 165.6 million (net of $ 6.9 million of underwriting discounts and commissions). In addition to the underwriting discounts and commissions, approximately $ 2.2 million of costs directly associated with the stock issuance were recorded as a reduction to additional paid-in capital. FlexSteel Acquisition In conjunction with the FlexSteel acquisition, a restricted stock award of 128,150 shares of Class A common stock was issued under the Company’s long-term incentive plan to a key employee in exchange for cash consideration of $ 6.5 million. The shares were restricted from sale or trading and were subject to vesting requirements for one year from grant date. CC Reorganization As part of the CC Reorganization in connection with the acquisition of FlexSteel, Cactus Companies acquired all of the outstanding units representing limited liability company interests of Cactus LLC ( “CW Units”) in exchange for an equal number of CC Units issued to each of the previous owners of CW Units other than Cactus Inc. (the “CW Unit Holders”). Upon the completion of the CC Reorganization, CW Unit Holders ceased to be holders of CW Units and, instead, became holders of a number of CC Units equal to the number of CW Units such CW Unit Holders held immediately prior to the completion of the CC Reorganization. After the CC Reorganization, we refer to the owners of CC Units, other than Cactus Inc. (along with their permitted transferees), as “CC Unit Holders.” Following the completion of the CC Reorganization, CC Unit Holders own one share of our Class B Common Stock for each CC Unit such CC Unit Holder owns. In connection with the CC Reorganization, Cactus Inc. and the owners of CC Units entered into the Amended and Restated Limited Liability Company Operating Agreement of Cactus Companies (the “Cactus Companies LLC Agreement”), 65 Table of Contents which contains substantially the same terms and conditions as the Second Amended and Restated Limited Liability Company Operating Agreement of Cactus LLC (the “Cactus Wellhead LLC Agreement”), which was the limited liability company operating agreement of Cactus LLC prior to the CC Reorganization. Cactus Inc. was responsible for all operational, management and administrative decisions relating to Cactus LLC’s business for the period from completion of our IPO until the CC Reorganization and relating to Cactus Companies’ business for periods after the CC Reorganization. Redemptions of CC Units Pursuant to the Cactus Companies LLC Agreement, each holder of CC Units has, subject to certain limitations, the right (the “Redemption Right”) to cause Cactus Companies to acquire all or at least a minimum portion of its CC Units for, at Cactus Companies’ election, (x) shares of our Class A common stock at a redemption ratio of one share of Class A common stock for each CC Unit redeemed, subject to conversion rate adjustments for stock splits, stock dividends and reclassification and other similar transactions, or (y) an equivalent amount of cash. Alternatively, upon the exercise of such redemption right, Cactus Inc. (instead of Cactus Companies) has the right (the “Call Right”) to acquire each tendered CC Unit directly from the exchanging CC Unit Holder for, at its election, (x) one share of Class A common stock, subject to conversion rate adjustments for stock splits, stock dividends and reclassifications and other similar transactions, or (y) an equivalent amount of cash. In connection with any redemption of CC Units pursuant to such Redemption Right or our Call Right, the corresponding number of shares of Class B common stock will be canceled. Any exercise by Cactus Companies or Cactus Inc. of the right to acquire redeemed CC Units for cash must be approved by the board of directors of Cactus Inc. To date, neither Cactus Inc. nor Cactus Companies (Cactus LLC prior to the CC Reorganization) have elected to acquire CC Units (including CW Units prior to the CC Reorganization) for cash in connection with exchanges by CC Unit Holders (CW Unit Holders prior to the CC Reorganization). It is the policy of Cactus Inc. that any exercise by Cactus Inc. or Cactus Companies of the right to acquire redeemed CC Units for cash must be approved by a majority of those members of the board of directors of Cactus Inc. who have no interest in such transaction. Since our IPO in February 2018, an aggregate of 49.6 million CC Units (including CW Units prior to the CC Reorganization) and a corresponding number of shares of Class B common stock have been redeemed in exchange for shares of Class A common stock. The following is a roll forward of ownership of CC Units (including CW Units prior to the CC Reorganization) for the three years ended December 31, 2025 (in thousands): Units CW Units outstanding as of December 31, 2022 14,978 CC Unit redemptions ( 944 ) CC Units outstanding as of December 31, 2023 14,034 CC Unit redemptions ( 2,601 ) CC Units outstanding as of December 31, 2024 11,433 CC Unit redemptions ( 476 ) CC Units outstanding as of December 31, 2025 10,957 Certain CC Unit Holders (CW Unit Holders prior to the CC Reorganization) redeemed 0.5 million, 2.6 million and 0.9 million CC Units (CW Units prior to the CC Reorganization), together with a corresponding number of shares of Class B common stock, pursuant to the Redemption Right for the years ended December 31, 2025, 2024 and 2023, respectively. Cactus Inc. acquired the redeemed CC Units (CW Units prior to the CC Reorganization) and a corresponding number of shares of Class B common stock (which shares of Class B common stock were then canceled) and issued 0.5 million, 2.6 million and 0.9 million shares of Class A common stock to the redeeming CC Unit Holders (CW Unit Holders prior to the CC Reorganization) during the same respective time periods. As a result of all of the CC Unit (CW Units prior to the CC Reorganization) redemptions during the years ended December 31, 2025, 2024 and 2023, Cactus Inc. increased its ownership in Cactus Companies (Cactus LLC prior to the CC Reorganization) and accordingly, increased its equity by approximately $ 8.6 million, $ 41.7 million and $ 12.8 million, respectively, resulting from a reduction in the non-controlling interest. Dividends Aggregate cash dividends of $ 0.54 , $ 0.50 and $ 0.46 per share of Class A common stock declared during the years ended December 31, 2025, 2024 and 2023 totaled $ 37.8 million, $ 34.0 million and $ 30.3 million, respectively. Cash dividends paid during the years ended December 31, 2025, 2024 and 2023 totaled $ 37.4 million, $ 33.7 million and $ 30.1 million, respectively. Dividends accrue on unvested stock-based awards on the date of record and are paid upon vesting. Dividends are not paid to our Class B common stockholders; however, a corresponding distribution up to the same amount per share as our 66 Table of Contents Class A common stockholders is paid to our CC Unit Holders (CW Unit Holders prior to the CC Reorganization) for any dividends declared on our Class A common stock. See Note 16 for further discussion of distributions made by Cactus Companies. Share Repurchase Program On June 6, 2023, our board of directors authorized the Company to repurchase shares of its Class A common stock for an aggregate purchase price of up to $ 150 million. Under our share repurchase program, shares may be repurchased from time to time in open market transactions or block trades, in privately negotiated transactions or any other method permitted under U.S. securities laws, rules and regulations. The repurchase program does not obligate the Company to purchase any particular amount of shares, and the repurchase program may be suspended or discontinued at any time at the Company’s discretion. During the twelve months ended December 31, 2025, the Company did not purchase any shares under the share repurchase program. As of December 31, 2025, $ 146.3 million remained authorized for future repurchases of Class A common stock under the program. Limitation of Members’ Liability Under the terms of the Cactus Companies LLC Agreement, the members of Cactus Companies are not obligated for debt, liabilities, contracts or other obligations of Cactus Companies. Profits and losses are allocated to members as defined in the Cactus Companies LLC Agreement. 13. Commitments and Contingencies Due to the nature of our business, we are, from time to time, involved in routine litigation or subject to disputes or claims related to our business activities, including workers’ compensation claims and employment related disputes. A range of total possible losses for all litigation matters cannot be reasonably estimated. Based on our consideration of all relevant facts and circumstances, we do not expect the ultimate outcome of currently pending lawsuits or claims against us, other than as discussed below, will have a material adverse effect on our financial position, results of operations or cash flows, however, there can be no assurance as to the ultimate outcome of these matters. With respect to the litigation described below, if there was an adverse outcome there could be a material impact on our business, financial condition and results of operations expected for the year. Litigation is subject to inherent uncertainties and management's view may change in the future. Therefore, there can be no assurance as to the ultimate outcome of any dispute or claim. On August 20, 2021, Cactus filed a complaint against Cameron International Corporation (“Cameron”) in the U.S. District Court for the Southern District of Texas, Civil Action No.: 4:21-cv-02720-ASH, seeking a declaratory judgment that Cactus frac operations do not infringe certain Cameron patents and that such patents are invalid. In response to that action, Cameron has asserted infringement of certain of those patents by Cactus’ SafeLink® frac flow system and is seeking past royalties and other damages related to the alleged infringement. The parties have been unable to reach an amicable settlement. The jury trial, originally scheduled on June 9, 2025, was delayed and no new trial date has been set. At this time, we are not able to predict the outcome of these claims. 14. Fair Value Measurements Authoritative guidance on fair value measurements provides a framework for measuring fair value and establishes a fair value hierarchy that prioritizes the inputs used to measure fair value, giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs). The carrying value of cash and cash equivalents, receivables, accounts payable and accrued expenses approximates fair value based on the short-term nature of these accounts. The fair value of our foreign currency forwards was less than $ 0.1 million as of December 31, 2025 and 2024, determined using market observable inputs including forward and spot prices (Level 2 inputs). We had no long-term debt outstanding as of December 31, 2025 or 2024. At December 31, 2023, the earn-out liability was measured at a fair value of $ 20.8 million using Level 3 unobservable inputs. The fair value at December 31, 2023 was determined based on the evaluation of the probability and amount of earn-out that may be achieved based on expected future performance of FlexSteel using a Monte Carlo simulation model. The Monte 67 Table of Contents Carlo simulation model used assumptions including revenue volatilities, risk free rates, credit discount rates and revenue discount rates. The following table sets forth the range of inputs for the significant assumptions utilized to determine the fair value as of December 31, 2023: December 31, 2023 Risk-free interest rate 5.40 % to 5.63 % Expected revenue volatility 21.70 % Revenue discount rate 10.02 % to 10.23 % Credit discount rate 9.85 % The following table presents a summary of the changes in fair value of our earn-out liability measured using Level 3 inputs: Opening balance at February 28, 2023 $ 5,960 Changes in fair value 14,850 Balance at December 31, 2023 20,810 Changes in fair value 16,318 Balance at August 31, 2024 $ 37,128 The FlexSteel acquisition contingent consideration earn-out period ended June 30, 2024. The earn-out payment was made in September 2024. 15. Segment Reporting Prior to the acquisition of FlexSteel, we operated in a single operating segment which reflected how our business was managed and the nature of our products and services. Upon completion of the acquisition, we re-evaluated our reportable segments and now report two operating segments. The operating segments have been identified based on the Company’s management structure, the different products and services offered by each and the financial data utilized by the Company’s Chief Executive Officer (the chief operating decision maker or “CODM”) to assess segment performance and allocate resources among segments. Our reporting segments are: • Pressure Control – engaged in the design, manufacture, sale, installation and service of wellhead and pressure control equipment utilized during the drilling, completion and production phases of oil and gas wells. • Spoolable Technologies – engaged in the design, manufacture, sale, installation, service and associated rental of onshore spoolable pipe technologies utilized for production, gathering and takeaway transportation of oil, gas or other liquids. The Company’s CODM evaluates performance and allocates resources for the reportable segments based on each segment’s profit or loss (which includes certain corporate overhead allocations directly attributable to each of the segments). Intersegment revenue and expenses have been eliminated in the computation of total revenue and operating income. The CODM uses the segment profit or loss for each segment predominantly in the annual budget and forecasting process. The CODM considers quarter-to-quarter variances on a sequential basis when making decisions about the allocation of operating and capital resources to each segment. 68 Table of Contents Financial information by segment for the years ended December 31, 2025, 2024, and 2023 is summarized below. Year Ended December 31, 2025 Pressure Control Spoolable Technologies Total Revenues from external customers $ 710,806 $ 368,245 $ 1,079,051 Intersegment revenue 6,385 — 6,385 Total revenues 717,191 368,245 1,085,436 Reconciliation of revenue Elimination of intersegment revenue ( 6,385 ) Total consolidated revenues 1,079,051 Less: (1) Cost of revenue from external customers $ 459,280 $ 220,353 679,633 Intersegment cost of revenue 5,806 — 5,806 Total cost of revenues 465,086 220,353 685,439 Reconciliation of cost of revenue Elimination of intersegment cost of revenue ( 5,806 ) Total consolidated cost of revenue 679,633 Selling, general, administrative expenses and other (2) 62,244 49,232 Segment profit $ 189,861 $ 98,660 $ 288,521 Reconciliation of segment profit Elimination of intersegment profit ( 579 ) Total consolidated segment profit $ 287,942 Corporate expenses (3) ( 37,441 ) Total operating income $ 250,501 Interest income, net 10,962 Other expense, net ( 794 ) Income before income taxes $ 260,669 (1) The significant expense categories and amounts align with the segment with the segment-level information that is regularly provided to the chief operating decision maker. (2) For each reportable segment, the 'Selling, general, administrative expenses and other' line items category includes: salaries and wages, stock based compensation amortization expense, depreciation expense, professional fees, rent expense, and other miscellaneous items. (3) Comprised primarily of expenses not allocated to our operating segments. 69 Table of Contents Year Ended December 31, 2024 Pressure Control Spoolable Technologies Total Revenues from external customers $ 722,776 $ 407,038 $ 1,129,814 Intersegment revenue 1,262 — 1,262 Total revenues 724,038 407,038 1,131,076 Reconciliation of revenue Elimination of intersegment revenue ( 1,262 ) Total consolidated revenues 1,129,814 Less: (1) Cost of revenue from external customers $ 455,853 $ 237,568 $ 693,421 Intersegment cost of revenue 1,127 — 1,127 Total cost of revenues 456,980 237,568 694,548 Reconciliation of cost of revenue Elimination of intersegment cost of revenue ( 1,127 ) Total consolidated cost of revenue 693,421 Selling, general, administrative expenses and other (2) 56,348 64,606 Segment profit $ 210,710 $ 104,864 $ 315,574 Reconciliation of segment profit Elimination of intersegment profit ( 135 ) Total consolidated segment profit $ 315,439 Corporate expenses (3) ( 25,826 ) Total operating income $ 289,613 Interest income, net 6,459 Other income, net 3,204 Income before income taxes $ 299,276 (1) The significant expense categories and amounts align with the segment with the segment-level information that is regularly provided to the chief operating decision maker. (2) For each reportable segment, the 'Selling, general, administrative expenses and other' line items category includes: salaries and wages, stock based compensation amortization expense, depreciation expense, professional fees, rent expense, and other miscellaneous items. Spoolable technologies also includes the change in fair value of the earn-out liability. (3) Comprised primarily of expenses not allocated to our operating segments. 70 Table of Contents Year Ended December 31, 2023 Pressure Control Spoolable Technologies Total Revenues from external customers $ 756,727 $ 340,233 $ 1,096,960 Intersegment revenue — — — Total revenues 756,727 340,233 1,096,960 Reconciliation of revenue Elimination of intersegment revenue — Total consolidated revenues 1,096,960 Less: (1) Cost of revenue from external customers $ 475,818 $ 214,850 $ 690,668 Intersegment cost of revenue — — — Total cost of revenues 475,818 214,850 690,668 Reconciliation of cost of revenue Elimination of intersegment cost of revenue — Total consolidated cost of revenue 690,668 Selling, general, administrative expenses and other (2) 43,975 63,211 Segment profit $ 236,934 $ 62,172 $ 299,106 Reconciliation of segment profit Elimination of intersegment profit — Total consolidated segment profit $ 299,106 Corporate expenses (3) ( 34,740 ) Total operating income $ 264,366 Interest expense, net ( 6,480 ) Other income, net 4,490 Income before income taxes $ 262,376 (1) The significant expense categories and amounts align with the segment with the segment-level information that is regularly provided to the chief operating decision maker. (2) For each reportable segment, the 'Selling, general, administrative expenses and other' line items category includes: salaries and wages, stock based compensation amortization expense, depreciation expense, professional fees, rent expense, and other miscellaneous items. Spoolable technologies also includes the change in fair value of the earn-out liability. (3) Comprised primarily of expenses not allocated to our operating segments. 71 Table of Contents Additional financial information by operating segment for the years ended December 31, 2025, 2024, and 2023 is summarized below. Year Ended December 31, 2025 2024 2023 Depreciation and amortization: Pressure Control $ 28,585 $ 26,782 $ 30,898 Spoolable Technologies 35,329 33,656 34,147 Total depreciation and amortization $ 63,914 $ 60,438 $ 65,045 Capital expenditures: Pressure Control $ 18,218 $ 24,240 $ 40,940 Spoolable Technologies 20,587 14,936 3,037 Total capital expenditures $ 38,805 $ 39,176 $ 43,977 Segment Assets: (1) Pressure Control $ 468,061 $ 438,929 $ 437,887 Spoolable Technologies 695,737 705,943 713,007 Total segment assets 1,163,798 1,144,872 1,150,894 Corporate and other (2) 707,819 594,456 371,667 Total assets $ 1,871,617 $ 1,739,328 $ 1,522,561 (1) Segment assets consist of accounts receivables, inventories, prepaid expenses and other current assets, property and equipment, net, goodwill and other intangible assets, net. (2) Consists primarily of cash and cash equivalents and deferred tax assets. Based on the location where the sale originated, revenues in the United States exceeded 95 % of total revenues during each of the three years ended December 31, 2025, 2024, and 2023. Additionally, tangible long-lived assets in the United States exceeded 90 % of total tangible long-lived assets as of December 31, 2025, 2024, and 2023. 16. Related Party Transactions When needed, we rent a plane under dry lease from a company owned by a member of Cactus Companies. These transactions are under short-term rental arrangements and the agreement governing these transactions does not qualify as a lease. Effective January 1, 2022, we pay a base hourly rent of $ 2,500 per flight hour of use of the aircraft, payable monthly, for the hours of aircraft operation. During the year ended December 31, 2025, expense recognized in connection with these rentals totaled $ 0.2 million as compared to $ 0.1 million and $ 0.3 million during each of the years ended December 31, 2024 and 2023, respectively. As of December 31, 2025 and 2024, we had no liability outstanding to the related party. We are also responsible for employing pilots and fuel expenses. Our Chief Executive Officer and President reimburse the Company up to $ 2,350 per day for their personal use of the pilots employed by the Company, depending on how many company pilots are utilized for the day. The TRA agreement is with certain direct and indirect holders of CC Units (CW Unit Holders prior to the CC Reorganization), including certain of our officers, directors and employees. These TRA Holders have the right in the future to receive 85 % of the net cash savings, if any, in U.S. federal, state and local income tax and franchise tax that Cactus Inc. actually realizes or is deemed to realize in certain circumstances. The total liability from the TRA as of December 31, 2025 was $ 262.9 million. We pay professional fees to assist with maintenance of the TRA and composite tax payments in advance of the state tax return filings which are reimbursable from the TRA Holders. As of December 31, 2025 and 2024, amounts due from the TRA Holders for fees and estimated state tax payments made on their behalf totaled $ 0.3 million and $ 0.4 million, respectively. The balances are included in accounts receivable, net in the consolidated balance sheets. Distributions made by Cactus Companies (Cactus LLC prior to the CC Reorganization) are generally required to be made pro rata among all its members. During the years ended December 31, 2025, 2024 and 2023, Cactus Companies (Cactus LLC prior to the CC Reorganization) distributed $ 95.5 million, $ 68.0 million and $ 75.8 million, respectively, to Cactus Inc. to 72 Table of Contents fund its dividend, TRA liability and estimated tax payments. During the years ended December 31, 2025, 2024, and 2023 Cactus Companies made pro rata distributions to the other members totaling $ 15.6 million, $ 13.3 million, and $ 16.6 million, respectively. 17. Earnings Per Share Basic earnings per share of Class A common stock is calculated by dividing the net income attributable to Cactus Inc. during the period by the weighted average number of shares of Class A common stock outstanding during the same period. Diluted earnings per share of Class A common stock is calculated by dividing the net income attributable to Cactus Inc. during that period by the weighted average number of common shares outstanding assuming all potentially dilutive shares were issued. We use the if-converted method to determine the potential dilutive effect of outstanding CC Units and corresponding shares of outstanding Class B common stock. We use the treasury stock method to determine the potential dilutive effect of our unvested stock-based compensation awards assuming that the proceeds will be used to purchase shares of Class A common stock. For our unvested performance stock units, we first apply the criteria for contingently issuable shares before determining the potential dilutive effect using the treasury stock method. The following table summarizes the basic and diluted earnings per share calculations: Year Ended December 31, 2025 2024 2023 Numerator: Net income attributable to Cactus Inc.—basic $ 166,014 $ 185,407 $ 169,171 Net income attributable to non-controlling interest (1) — 36,266 35,075 Net income attributable to Cactus Inc.—diluted (1) $ 166,014 $ 221,673 $ 204,246 Denominator: Weighted average Class A shares outstanding—basic 68,565 66,393 64,641 Effect of dilutive shares (2) 450 13,522 14,819 Weighted average Class A shares outstanding—diluted 69,015 79,915 79,460 Earnings per Class A share—basic $ 2.42 $ 2.79 $ 2.62 Earnings per Class A share—diluted (1)(2) $ 2.41 $ 2.77 $ 2.57 (1) The numerator is adjusted in the calculation of diluted earnings per share under the if-converted method to include net income attributable to the non-controlling interest calculated as its pre-tax income adjusted for a corporate effective tax rate of 26 % for the years ended December 31, 2024 and 2023. (2) Diluted earnings per share for the year ended December 31, 2025 excludes 11.2 million weighted average shares of Class B common stock as the effect would be anti-dilutive. 18. Supplemental Cash Flow Information Non-cash investing and financing activities were as follows: Year Ended December 31, 2025 2024 2023 Right-of-use assets obtained in exchange for new lease obligations $ 8,739 $ 17,367 $ 17,520 Property and equipment in accounts payable 1,791 1,150 1,997 Cash paid for interest and income taxes was as follows: Year Ended December 31, 2025 2024 2023 Cash paid for interest $ 3,261 $ 2,704 $ 5,629 Cash paid for income taxes, net of refunds 48,126 24,800 25,998 73 Table of Contents During the years ended December 31, 2025, 2024 and 2023, we issued 0.5 million, 2.6 million and 0.9 million shares of Class A common stock, respectively, pursuant to redemptions of CC Units (CW Units prior to the CC Reorganization) by holders thereof. 19. Subsequent Events On June 2, 2025, Cactus Companies entered into a Framework Agreement (the “Framework Agreement”) with Baker Hughes Holdings LLC (“Baker Hughes Holdings”) and Baker Hughes Pressure Control LLC, formerly known as Baker Hughes Pressure Control LP (the “Joint Venture”), each of which is an indirect subsidiary of Baker Hughes Company (“Baker Hughes Company”), pursuant to which the Company agreed to acquire 65 % of the Joint Venture, which holds Baker Hughes Company’s former surface pressure control business (the “Acquired Business”). On January 1, 2026 (the “Closing Date”), Baker Hughes Holdings and certain of its affiliates sold 65 % of the limited liability company membership interests in the Joint Venture (“Membership Interests”) to Cactus UK Holding Limited (the “Cactus Member”), a subsidiary of Cactus Companies, for a cash purchase price of $ 344.5 million (on a debt-free, and, except as noted below, cash-free basis), subject to certain working capital, cash, debt, capital expenditure and other customary adjustments after the Closing Date (the “Purchase Price”). The Joint Venture retained minimum cash of approximately $ 70.0 million (the “Minimum Cash Amount”). From and after the second anniversary of the Closing Date, (a) Baker Hughes Pressure Control Holdings LLC (the "Baker Member") has the right to sell to either the Joint Venture or the Cactus Member, and the Joint Venture or the Cactus Member, as applicable, shall be obligated to purchase from the Baker Member, and (b) the Cactus Member has the right to purchase or cause the Joint Venture to purchase from the Baker Member, and the Baker Member shall be obligated to sell to the Joint Venture or the Cactus Member, as applicable, all of the Membership Interests held directly or indirectly by Baker Hughes Company (such options described in (a) and (b), the "Exit Option"). The purchase price (the “Exit Price”) will be based on an enterprise value of the Joint Venture using a multiple of six times its Adjusted EBITDA (as defined and calculated pursuant to the Amended and Restated Limited Liability Company Agreement of the Joint Venture, entered into on the Closing Date by the Joint Venture, the Cactus Member, the Baker Member, Cactus Inc. and Baker Hughes Company (the "Joint Venture LLC Agreement")), subject to a maximum valuation of $ 660.0 million, and if the Cactus Member elects to purchase or cause the Joint Venture to purchase the Membership Interests, a minimum valuation of $ 530.0 million. For so long as the Baker Member continues to hold Membership Interests, the Cactus Member shall, subject to certain exceptions, cause the Joint Venture to operate its business in the ordinary course consistent with past practice and not take any actions, the primary intent of which could reasonably be expected to reduce the Exit Price. Certain actions of the Board of Directors of the Joint Venture, including, among other things, matters relating to capital structure, incurrence of indebtedness above a certain threshold, increasing the size of the Board of Directors and the entry by the Joint Venture into a new line of business, require the affirmative vote of more than 75 % of the total voting power of the Board of Directors, including, except to the extent the Baker Member is in default, at least one director appointed by the Baker Member. No member of the Joint Venture may transfer any Membership Interest other than certain permitted transfers, including but not limited to (a) certain permitted transfers to such member’s wholly owned and controlled affiliates and (b) certain transfers made in connection with the exercise of the Exit Option. The Joint Venture LLC Agreement includes non-compete restrictions on Baker Hughes Company and the Company with respect to (a) developing, manufacturing, distributing, marketing, renting and selling certain products and (b) providing services, including installation, maintenance, rentals, repairs and aftermarket spares related thereto, in the case of both (a) and (b) for surface pressure control applications in certain countries provided in the Joint Venture LLC Agreement, subject to certain exceptions. In order to compensate Baker Hughes Holdings for the Minimum Cash Amount, Cactus Companies (i) paid Baker Hughes Holdings 65 % of the Minimum Cash Amount, or $ 45.5 million, on the Closing Date, and (ii) will pay Baker Hughes Holdings 35 % of the Minimum Cash Amount, or $ 24.5 million, as follows: $ 10.0 million on the first anniversary of the Closing Date, and $ 14.5 million at such time as Baker Hughes Company ceases to be a member, directly or indirectly, of the Joint Venture. 74 Table of Contents Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None.