DNOWHIGH SIGNALFINANCIAL10-K

DNOW underwent a massive transformation with revenue increasing 280% to $2.6B while simultaneously swinging from $81M profit to $89M loss, indicating a major acquisition or business combination that has fundamentally altered the company's scale and profitability.

The dramatic increase in outstanding shares from 106M to 186M shares suggests a significant equity-financed transaction, likely explaining the massive scale increase. The swing from strong profitability to losses despite nearly tripling revenue indicates either integration challenges, one-time charges, or operational difficulties in the expanded business model that investors need to monitor closely.

Comparing 2026-02-26 vs 2025-02-18View on EDGAR →
FINANCIAL ANALYSIS

DNOW's financials reflect a transformational event with revenue exploding 280% to $2.6B while the company swung from $81M profit to $89M loss, indicating massive scale growth paired with profitability challenges. The balance sheet nearly tripled in size with assets growing to $3.9B and liabilities increasing 242% to $1.7B, while inventory ballooned 239% to $1.2B, suggesting a major acquisition or merger. Despite stockholders' equity doubling, the fundamental shift from profitable operations to losses at much larger scale represents a critical inflection point requiring close investor scrutiny of management's integration execution and path back to profitability.

FINANCIAL STATEMENT CHANGES
Revenue
P&L
+279.9%
$697.0M$2.6B

Strong top-line growth of 279.9% — accelerating demand or successful expansion into new markets.

Total Liabilities
Balance Sheet
+242%
$493.0M$1.7B

Liabilities grew 242% — significant increase in debt or obligations, assess impact on financial flexibility.

Inventory
Balance Sheet
+238.6%
$352.0M$1.2B

Inventory surged 238.6% — growing significantly faster than typical sales pace; potential demand softening or supply chain overcorrection.

Net Income
P&L
-209.9%
$81.0M-$89.0M

Net income declined 209.9% — review whether driven by operations, interest costs, or non-recurring items.

Operating Income
P&L
-182.3%
$113.0M-$93.0M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Total Assets
Balance Sheet
+142.1%
$1.6B$3.9B

Asset base grew 142.1% — expansion through organic growth, acquisitions, or capital deployment.

Capital Expenditure
Cash Flow
+133.3%
$9.0M$21.0M

Capital expenditure jumped 133.3% — major investment cycle underway; assess returns on deployment.

Current Assets
Balance Sheet
+121.6%
$1.0B$2.3B

Current assets grew 121.6% — improving short-term liquidity or inventory/receivables build.

Current Liabilities
Balance Sheet
+120.4%
$442.0M$974.0M

Current liabilities surged 120.4% — significant near-term obligations; verify ability to meet short-term debt.

Stockholders Equity
Balance Sheet
+98.7%
$1.1B$2.2B

Equity base grew 98.7% — retained earnings accumulation or equity issuance strengthening the balance sheet.

LANGUAGE CHANGES
NEW — 2026-02-26
PRIOR — 2025-02-18
ADDED
As of February 18, 2026, there were 186,346,145 shares of the Company s common stock (excluding 2,018,633 unvested restricted shares) outstanding.
Forward-looking statements typically are identified by use of terms such as anticipates , assumes , believes , budget , estimates , expects , goal , guidance , plans , may , will , might , would , should , seeks , project , predict , potential , objective , currently , continue , intends , outlook , forecasts , targets , reflects , could , or other similar words and phrases, although some forward-looking statements could be expressed differently.
Forward-looking statements are current only as of the date they are made.
Other factors beyond those listed above or elsewhere in this report including factors unknown to us and factors known to us which we have determined not to be material, could also adversely affect us.
We are a premier provider of energy and industrial solutions, serving as a global leader in the distribution of pipe, valves and fittings ( PVF ), and pumps, as well as in the fabrication, assembly and testing of process and production equipment.
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REMOVED
As of February 7, 2025, there were 105,687,410 shares of the Company s common stock (excluding 2,316,154 unvested restricted shares) outstanding.
These forward-looking statements generally are identified by the words may, believe, anticipate, expect, plan, predict, estimate, will be or other similar words and phrases.
We are a distributor to the oil and gas, energy transition and industrial markets with a legacy of over 160 years.
We operate primarily under the DNOW brand along with several affiliated brands operating in local, regional or international markets that are tied to prior acquisitions.
Through a network of approximately 165 locations and approximately 2,575 employees worldwide, our operating locations utilize a complementary suite of technology, systems, order and fulfillment processes and sourcing and procurement channels to provide products and services to a variety of customers operating in the energy and industrial markets.
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