XPROHIGH SIGNALFINANCIAL10-K

XPRO's gross profit collapsed dramatically while revenue grew, indicating severe margin compression and operational challenges.

The stark disconnect between revenue growth and profitability suggests significant cost structure problems or unfavorable contract mix that management must urgently address. This margin compression raises questions about the company's pricing power and operational efficiency in its current market environment.

Comparing 2026-02-19 vs 2025-02-25View on EDGAR →
FINANCIAL ANALYSIS

XPRO delivered mixed financial results with revenue growing a healthy 14.9% to $522.5M, yet profitability deteriorated substantially as gross profit fell dramatically to $14.1M from $81.3M in the prior year. The company showed some positive momentum with operating cash flow improving 24% to $210.2M and debt reduction of 34.7% to $79.1M. However, the severe margin compression despite revenue growth signals fundamental operational challenges that overshadow the improved cash generation and balance sheet deleveraging.

FINANCIAL STATEMENT CHANGES
Gross Profit
P&L
-82.7%
$81.3M→$14.1M

Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.

Total Debt
Balance Sheet
-34.7%
$121.1M→$79.1M

Debt reduced 34.7% — deleveraging strengthens balance sheet and reduces financial risk.

Operating Cash Flow
Cash Flow
+24%
$169.5M→$210.2M

Operating cash flow grew 24% — strong conversion of earnings to cash, healthy business fundamentals.

R&D Expense
P&L
-22.1%
$17.2M→$13.4M

R&D spending cut 22.1% — could signal cost discipline or concerning reduction in innovation investment.

Capital Expenditure
Cash Flow
-21.7%
$143.6M→$112.4M

Capex reduced 21.7% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Revenue
P&L
+14.9%
$454.8M→$522.5M

Revenue growing 14.9% — solid top-line momentum, watch margins for quality of growth.

Total Liabilities
Balance Sheet
-13.9%
$842.1M→$725.3M

Liabilities reduced 13.9% — deleveraging improves balance sheet strength and financial flexibility.

Operating Income
P&L
-13.8%
$94.2M→$81.1M

Operating profitability softening — costs rising faster than revenue, watch for margin recovery plan.

LANGUAGE CHANGES
NEW — 2026-02-19
PRIOR — 2025-02-25
ADDED
false --12-31 FY 2025 true true true true false true 0.06 0.06 200,000 200,000 122,384 121,091 8,823 4,796 12 40 2 12 1 15 0 0 0 0 0 4 4 0 1 1 37.80 6.00 0 0 0 10 15 0 0 0 0 3.5 2.75 1 15 3 4 0 0 0 0 0 1 3 0 false false false false true true Other segment expenses consists primarily of facilities, sales and purchase tax, motor vehicles, insurance, professional and other costs.
As of February 11, 2026, there were 113,765,561 of common stock, 0.06 nominal value per share, outstanding.
In recent years, we have added a range of lower-risk, open water cementing solutions.
We also possess several other distinct technical capabilities, including fiber optic-enabled data acquisition and interpretation services, non-intrusive metering technologies and wireless telemetry systems for reservoir monitoring.
As of December 31, 2025, we had approximately 8,500 employees worldwide.
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REMOVED
false --12-31 FY 2024 true true true false true 0.06 0.06 200,000,000 200,000,000 121,090,661 113,389,911 116,295,090 110,029,694 4,795,571 3,360,217 1.2 12 40 2 12 0 0 0 0 0 0 0 0 10 15 0 0 0 0 0 1 15 3 4 0 0 0 1 3 false false false false Other segment expenses consists primarily of facilities, sales and purchase tax, motor vehicles, insurance, professional and other costs.
As of February 18, 2025, there were 116,377,932 shares of common stock, 0.06 nominal value per share, outstanding.
On March 10, 2021, the Company and New Eagle Holdings Limited, an exempted company limited by shares incorporated under the laws of the Cayman Islands and a direct wholly owned subsidiary of the Company ( Merger Sub ), entered into an Agreement and Plan of Merger with Expro Group Holdings International Limited ( Legacy Expro ) providing for the merger of Legacy Expro with and into Merger Sub in an all-stock transaction, with Merger Sub surviving the merger as a direct, wholly owned subsidiary of the Company (the Merger ).
The Merger closed on October 1, 2021, and the Company, previously known as Frank s International N.V.
In recent years, we have added a range of lower-risk, open water cementing solutions, including the proprietary SeaCure and QuikCure solutions.
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