TUSK Narrows Losses Amid Strategic Divestitures, Boosts Cash

TL;DR

**TUSK's strategic asset sales are paying off, slashing losses and boosting cash, making it a more focused, albeit smaller, player.**

AI Summary

Mammoth Energy Services, Inc. (TUSK) reported a significant reduction in net loss for the nine months ended September 30, 2025, narrowing to $4.304 million from $191.846 million in the prior year, primarily driven by a substantial net income from discontinued operations of $45.023 million, compared to a net loss of $20.258 million in 2024. Total revenue for the nine-month period decreased slightly to $46.802 million from $48.418 million year-over-year. The company's strategic shift included the sale of a portion of its infrastructure services entities for $108.7 million on April 11, 2025, and the sale of hydraulic fracturing equipment for $15.0 million on June 16, 2025. Operating loss from continuing operations improved to $45.926 million for the nine months ended September 30, 2025, from $110.956 million in the same period of 2024, despite a $31.669 million impairment of long-lived assets in 2025. Cash and cash equivalents increased to $98.167 million as of September 30, 2025, from $60.845 million at December 31, 2024, largely due to proceeds from asset disposals. The company's total assets decreased to $336.753 million from $384.031 million, reflecting the divestitures.

Why It Matters

This 10-Q reveals TUSK's aggressive pivot away from certain infrastructure and hydraulic fracturing services, evidenced by significant asset sales totaling $123.7 million. For investors, the substantial reduction in net loss and the increase in cash and cash equivalents are positive signs, suggesting improved financial health and liquidity post-divestiture. However, the slight revenue decline in continuing operations indicates ongoing challenges in its core segments. Competitively, this strategic shift allows TUSK to focus on higher-margin or more stable services, potentially enhancing its long-term viability in a volatile energy market. Employees in divested segments face uncertainty, while customers may see a more specialized service offering from the streamlined company. The broader market will watch if this focused strategy can translate into sustained profitability.

Risk Assessment

Risk Level: medium — The company reported a net loss from continuing operations of $49.327 million for the nine months ended September 30, 2025, indicating ongoing operational challenges despite the overall net loss reduction. Furthermore, the impairment of long-lived assets totaling $31.669 million in 2025 suggests potential overvaluation or underperformance of remaining assets, posing a risk to future profitability and asset values.

Analyst Insight

Investors should closely monitor TUSK's performance in its continuing operations, specifically revenue growth and profitability in rental, infrastructure, natural sand proppant, accommodation, and drilling services. The significant cash increase from divestitures provides a buffer, but sustained operational profitability is crucial for long-term value creation. Consider if the remaining business segments can generate sufficient cash flow to offset the historical losses.

Financial Highlights

debt To Equity

0.35

revenue

$46,802,000

operating Margin

N/A

total Assets

$336,753,000

total Debt

$87,510,000

net Income

-$4,304,000

eps

N/A

gross Margin

N/A

cash Position

$98,167,000

revenue Growth

-3.34%

Revenue Breakdown

Key Numbers

• $4.304M — Net Loss (9M 2025) (Significantly reduced from $191.846M in 9M 2024)
• $45.023M — Net Income from Discontinued Operations (9M 2025) (Major contributor to reduced net loss, compared to a $20.258M loss in 9M 2024)
• $108.7M — Proceeds from Infrastructure Services Sale (Completed April 11, 2025, as part of strategic divestiture)
• $15.0M — Proceeds from Hydraulic Fracturing Equipment Sale (Completed June 16, 2025, as part of strategic divestiture)
• $98.167M — Cash and Cash Equivalents (Sep 30, 2025) (Increased from $60.845M at Dec 31, 2024, reflecting divestiture proceeds)
• $31.669M — Impairment of Long-Lived Assets (9M 2025) (Indicates challenges with remaining or revalued assets)
• $46.802M — Total Revenue (9M 2025) (Slight decrease from $48.418M in 9M 2024)
• $49.327M — Net Loss from Continuing Operations (9M 2025) (Despite overall net loss reduction, continuing operations still show significant loss)

Key Players & Entities

• Mammoth Energy Services, Inc. (company) — Registrant
• Puerto Rico Electric Power Authority (company) — Settlement agreement counterparty
• $108.7 million (dollar_amount) — Proceeds from infrastructure services entities sale
• $15.0 million (dollar_amount) — Proceeds from hydraulic fracturing equipment sale
• $4.304 million (dollar_amount) — Net loss for nine months ended September 30, 2025
• $191.846 million (dollar_amount) — Net loss for nine months ended September 30, 2024
• $45.023 million (dollar_amount) — Net income from discontinued operations for nine months ended September 30, 2025
• $31.669 million (dollar_amount) — Impairment of long-lived assets for nine months ended September 30, 2025
• $98.167 million (dollar_amount) — Cash and cash equivalents as of September 30, 2025
• $336.753 million (dollar_amount) — Total assets as of September 30, 2025

FAQ

Risk Factors

• Dependence on Oil and Gas Industry [high — operational]: The company's operations are heavily reliant on the oil and gas industry. Fluctuations in commodity prices, exploration and production spending, and regulatory changes in this sector can significantly impact demand for Mammoth's services and equipment, leading to reduced revenues and profitability. For the nine months ended September 30, 2025, total revenue was $46.802 million, a slight decrease from $48.418 million in the prior year, indicating sensitivity to market conditions.
• Asset Impairment and Divestitures [medium — financial]: The company recorded an impairment of long-lived assets totaling $31.669 million in the nine months ended September 30, 2025. This, along with strategic divestitures of infrastructure services and fracturing equipment, resulted in a decrease in total assets from $384.031 million at December 31, 2024, to $336.753 million at September 30, 2025. These actions, while potentially streamlining operations, highlight past asset value challenges and ongoing strategic adjustments.
• Discontinued Operations Impact [medium — operational]: The significant net income from discontinued operations ($45.023 million for 9M 2025) masks the ongoing losses from continuing operations, which reported an operating loss of $45.926 million for the same period. While the overall net loss narrowed to $4.304 million from $191.846 million, the core business continues to face profitability challenges, necessitating careful monitoring of its performance.
• Liquidity and Cash Position [medium — financial]: Cash and cash equivalents increased to $98.167 million as of September 30, 2025, from $60.845 million at December 31, 2024, primarily due to proceeds from asset disposals ($108.7 million from infrastructure services and $15.0 million from fracturing equipment). While this improves liquidity, it is a result of asset sales rather than organic operational cash generation.
• Environmental and Safety Regulations [medium — regulatory]: As an energy services company, Mammoth is subject to stringent environmental, health, and safety regulations. Non-compliance can lead to significant fines, operational disruptions, and reputational damage. Changes in environmental policies, particularly those related to emissions and land use, could increase operating costs and impact project feasibility.

Industry Context

Mammoth Energy Services operates in the highly cyclical oilfield services sector. The industry is characterized by intense competition, significant capital requirements, and sensitivity to oil and gas prices. Companies in this space often engage in strategic divestitures to streamline operations and focus on core competencies. The current environment sees a push towards operational efficiency and asset optimization as companies navigate fluctuating demand and regulatory pressures.

Regulatory Implications

Mammoth Energy Services is subject to a range of environmental, health, and safety regulations common in the oil and gas industry. Compliance with these regulations is critical to avoid penalties and operational disruptions. Changes in environmental policies, particularly those related to emissions or resource extraction, could impact operating costs and the viability of certain services.

What Investors Should Do

1. Monitor performance of continuing operations
2. Analyze the impact of asset divestitures
3. Assess the sustainability of cash generation
4. Evaluate the risk of industry cyclicality

Key Dates

• 2025-04-11: Sale of infrastructure services entities — Generated $108.7 million in proceeds, contributing to improved cash position and reflecting strategic divestiture of non-core assets.
• 2025-06-16: Sale of hydraulic fracturing equipment — Generated $15.0 million in proceeds, further bolstering cash reserves and indicating a shift in operational focus.
• 2025-09-30: End of Nine-Month Period — Reporting period for the 10-Q, showing a reduced net loss of $4.304 million and increased cash of $98.167 million.
• 2024-12-31: End of Fiscal Year — Prior period comparison point, with cash of $60.845 million and total assets of $384.031 million.

Glossary

Discontinued operations

A component of a business that has been sold, disposed of, or is classified as held for sale, and whose operations and cash flows can be clearly distinguished from the rest of the company. (A significant net income from discontinued operations ($45.023 million) heavily influenced the overall net loss reduction for TUSK in 9M 2025.)

Impairment of long-lived assets

A reduction in the carrying value of an asset on the balance sheet when its fair value is less than its book value, indicating that the asset is not expected to generate sufficient future economic benefits. (TUSK recorded a $31.669 million impairment in 9M 2025, signaling potential overvaluation or underperformance of remaining assets.)

Continuing operations

The ongoing business activities of a company that are not part of discontinued operations. (Despite overall net loss improvement, continuing operations for TUSK reported an operating loss of $45.926 million in 9M 2025, highlighting ongoing challenges.)

Held for sale

Assets or disposal groups that management has committed to selling, which are available for immediate sale in their present condition, and for which the sale is probable. (The balance sheet shows 'Current assets held for sale' of $5.618 million and 'Noncurrent assets of discontinued operations' of $4.392 million as of September 30, 2025, indicating ongoing divestiture activities.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, Mammoth Energy Services has significantly reduced its net loss from $191.846 million to $4.304 million, largely due to a substantial gain from discontinued operations. Total revenue saw a slight decrease from $48.418 million to $46.802 million. While operating losses from continuing operations improved, the company recorded a notable $31.669 million impairment of long-lived assets in the current period. Cash and cash equivalents have increased substantially due to asset divestitures, while total assets have decreased.

Key Financial Figures

• $0.01 — were 48,194,035 shares of common stock, $0.01 par value, outstanding. MAMMOTH ENERG

Filing Documents

• tusk-20250930.htm (10-Q) — 1637KB
• a2025-09x30exx311.htm (EX-31.1) — 10KB
• a2025-09x30exx312.htm (EX-31.2) — 10KB
• a2025-09x30exx321.htm (EX-32.1) — 7KB
• a2025-09x30exx322.htm (EX-32.2) — 7KB
• a2025-09x30exx951.htm (EX-95.1) — 22KB
• 0001679268-25-000039.txt ( ) — 10317KB
• tusk-20250930.xsd (EX-101.SCH) — 73KB
• tusk-20250930_cal.xml (EX-101.CAL) — 118KB
• tusk-20250930_def.xml (EX-101.DEF) — 392KB
• tusk-20250930_lab.xml (EX-101.LAB) — 821KB
• tusk-20250930_pre.xml (EX-101.PRE) — 604KB
• tusk-20250930_htm.xml (XML) — 1822KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 1

Condensed Consolidated Financial Statements (Unaudited)

Item 1. Condensed Consolidated Financial Statements (Unaudited) 1 Condensed Consolidated Balance Sheets 1 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) 2 Condensed Consolidated Statements of Changes in Equity 3 Condensed Consolidated Statements of Cash Flows 4 Notes to Unaudited Condensed Consolidated Financial Statements 6

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 34

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 50

Controls and Procedures

Item 4. Controls and Procedures 51

OTHER INFORMATION

PART II. OTHER INFORMATION 52

Legal Proceedings

Item 1. Legal Proceedings 52

Risk Factors

Item 1A. Risk Factors 52

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 52

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 52

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 52

Other Information

Item 5. Other Information 52

Exhibits

Item 6. Exhibits 53

SIGNATURES

SIGNATURES 54 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Various statements contained in this report that express a belief, expectation, or intention, or that are not statements of historical fact, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, or the Exchange Act. In particular, the factors discussed in this report and detailed under Part II, Item 1A. Risk Factors in this report and our Annual Report on Form 10–K for the year ended December 31, 2024 could affect our actual results and cause our actual results to differ materially from expectations, estimates or assumptions expressed, forecasted or implied in such forward-looking statements.

Forward-looking statements may include statements about

Forward-looking statements may include statements about: the impact of the recent divestitures of our subsidiaries 5 Star Electric, LLC, Higher Power Electrical, LLC and Python Equipment LLC as well as the sale of assets of Piranha Proppant LLC and the equipment previously used in our hydraulic fracturing services; the levels of capital expenditures by our customers and the impact of reduced completions activity on utilization and pricing for our natural sand proppant services; the volatility of oil and natural gas prices and actions by OPEC members and other oil exporting nations, or OPEC+, affecting commodity price and production levels; general economic, business or industry conditions and concerns over a potential economic slowdown or recession; conditions in the capital, financial and credit markets; conditions of U.S. oil and natural gas and utility infrastructure industry and the effect of U.S. energy, monetary and trade policies; U.S. and global economic conditions and political and economic developments, including the energy and environmental policies; inflationary pressure on the cost of services, equipment and other goods in our industries and other sectors; our ability to execute our business and financial strategies; our ability to identify, complete and integrate acquisitions of assets or businesses; our plans with respect to any stock repurchases under the board of directors' authorized stock repurchase program; any loss of one or more of our significant customers and its impact on our results of operations, financial condition and cash flows; our ability to comply with the applicable financial covenants and other terms and conditions our revolving credit facility; our ability to receive, or delays in receiving, permits and governmental approvals and/or payments, and to comply with applicable governmental laws and regulations; the failure to receive, or delays in receiving, the remaining payment under the settlement agreement with the

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements MAMMOTH ENERGY SERVICES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) ASSETS September 30, December 31, 2025 2024 CURRENT ASSETS (in thousands, except share data) Cash and cash equivalents $ 98,167 $ 60,845 Marketable securities 12,733 — Restricted cash 29,461 19,359 Accounts receivable, net 41,893 43,769 Inventories 4,269 6,848 Current assets held for sale 5,618 — Other current assets 4,310 11,380 Current assets of discontinued operations 2,558 46,386 Total current assets 199,009 188,587 Property, plant and equipment, net 83,828 66,725 Sand reserves, net 39,713 57,273 Operating lease right-of-use assets 3,592 4,722 Other non-current assets 6,219 7,383 Noncurrent assets of discontinued operations 4,392 59,341 Total assets $ 336,753 $ 384,031 LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable $ 12,219 $ 13,440 Accrued expenses and other current liabilities 17,519 26,623 Current liabilities held for sale 42 — Current operating lease liabilities 2,693 2,900 Income taxes payable 46,634 44,570 Current liabilities of discontinued operations 1,052 26,974 Total current liabilities 80,159 114,507 Deferred income tax liabilities 2,541 3,021 Long-term operating lease liabilities 2,028 1,838 Asset retirement obligations 2,722 4,234 Other long-term liabilities 60 244 Noncurrent liabilities of discontinued operations — 7,369 Total liabilities 87,510 131,213 COMMITMENTS AND CONTINGENCIES (Note 18) EQUITY Equity: Common stock, $ 0.01 par value, 200,000,000 shares authorized, 48,194,035 and 48,127,369 issued and outstanding at September 30, 2025 and December 31, 2024, respectively 482 481 Additional paid-in capital 540,842 540,431 Accumulated deficit ( 287,947 ) ( 283,643 ) Accumulated other comprehensive loss ( 4,134 ) ( 4,451 ) Total equity 249,243 252,818 Total liabilities and equity $ 336,753 $ 384,031 The accompanying notes are an integral part of these unaudited condens

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