# Tetra Technologies Inc: Form 10-Q for the period ended Jun 30, 2025

- Company: [Tetra Technologies Inc](/companies/tti.md) (CIK 844965)
- Form: 10-Q
- Filed: 2025-07-29
- Accepted by EDGAR: Jul 29, 2025, 17:06 ET
- Period: 2025-06-30
- Accession: 0000844965-25-000057
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/844965/000084496525000057/tti-20250630.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/844965/000084496525000057/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-06-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-04-01 to 2025-06-30 | $173.9m | us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax |
| Revenue | 6 months, 2025-01-01 to 2025-06-30 | $331.0m | us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax |
| Cost of revenue | 3 months, 2025-04-01 to 2025-06-30 | $116.3m | us-gaap:CostOfGoodsAndServicesSold |
| Cost of revenue | 6 months, 2025-01-01 to 2025-06-30 | $220.9m | us-gaap:CostOfGoodsAndServicesSold |
| Gross profit | 3 months, 2025-04-01 to 2025-06-30 | $48.2m | us-gaap:GrossProfit |
| Gross profit | 6 months, 2025-01-01 to 2025-06-30 | $91.2m | us-gaap:GrossProfit |
| Interest expense | 3 months, 2025-04-01 to 2025-06-30 | $4.2m | us-gaap:InterestExpense |
| Interest expense | 6 months, 2025-01-01 to 2025-06-30 | $8.9m | us-gaap:InterestExpense |
| Income tax | 3 months, 2025-04-01 to 2025-06-30 | $8.1m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 6 months, 2025-01-01 to 2025-06-30 | $9.2m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-04-01 to 2025-06-30 | $11.3m | us-gaap:NetIncomeLoss |
| Net income | 6 months, 2025-01-01 to 2025-06-30 | $15.4m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-04-01 to 2025-06-30 | $0.08 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 6 months, 2025-01-01 to 2025-06-30 | $0.12 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-04-01 to 2025-06-30 | $0.08 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 6 months, 2025-01-01 to 2025-06-30 | $0.12 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-04-01 to 2025-06-30 | 133,422,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 6 months, 2025-01-01 to 2025-06-30 | 133,371,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 6 months, 2025-01-01 to 2025-06-30 | $52.3m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 3 months, 2025-04-01 to 2025-06-30 | $19.5m | us-gaap:PaymentsToAcquireProductiveAssets |
| Capital expenditure | 6 months, 2025-01-01 to 2025-06-30 | $37.4m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Cash and equivalents | at 2025-06-30 | $68.7m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-06-30 | $311.6m | us-gaap:AssetsCurrent |
| Total assets | at 2025-06-30 | $645.6m | us-gaap:Assets |
| Current liabilities | at 2025-06-30 | $126.3m | us-gaap:LiabilitiesCurrent |
| Long-term debt | at 2025-06-30 | $180.5m | us-gaap:LongTermDebtNoncurrent |
| Shareholders' equity | at 2025-06-30 | $290.9m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 44,051 characters.

*The following discussion and analysis of financial condition and results of operations should be read in conjunction with our unaudited consolidated financial statements and accompanying notes included in this Quarterly Report. In addition, the following discussion and analysis should also be read in conjunction with our* Annual Report on Form 10-K *for the year ended December 31, 2024 filed with the Securities and Exchange Commission (“SEC”) on February 25, 2025 (“2024 Annual Report”). This discussion includes forward-looking statements that involve certain risks and uncertainties.*

### Business Overview

We are an energy services and solutions company with operations on six continents focused on developing environmentally conscious services and solutions that help make people's lives better. In addition to providing products and services to the oil and gas industry and calcium chloride for diverse applications, TETRA is expanding into the low-carbon energy market with chemistry expertise, key mineral acreage, and global infrastructure, helping to meet the demand for sustainable energy in the twenty-first century. We are also developing and pilot testing technologies to treat and desalinate produced water from oil wells for beneficial reuse, including surface discharge. We are composed of two segments – Completion Fluids & Products Division and Water & Flowback Services Division.

Consolidated revenue for the first six months of 2025 of $331.0 million increased compared to the prior year due to strong results from our Completion Fluids & Products Division, which offset expected weaker United States onshore activity in our Water & Flowback Services Division.

Completion Fluids & Products Division revenues for the first six months of 2025 increased compared to both the first three months of 2025 and the first six months of 2024, led by deepwater Gulf of America as we completed the three-well CS Neptune project. The Completion Fluids & Products division also benefited from the seasonally strong industrial chemicals calcium chloride business.

Our Water & Flowback Services revenues increased slightly compared to the first three months of 2025 and decreased 11.7% compared to the first six months of 2024, reflecting lower onshore activity in the United States, as well as lower service revenues following the sale of early production facilities in Latin America in 2024. Water & Flowback Services gross profit margins decreased reflecting the lower onshore activity, as well as costs to close underperforming service lines in the United States. We continue to take proactive actions to reduce costs, right size our support structure, minimize capital expenditures and close underperforming service lines within Water & Flowback Services.

We remain committed to pursuing initiatives that leverage our completion fluids and fluids chemistry expertise, our significant bromine and lithium assets and technologies, and our leading calcium chloride production capabilities. In 2024, we published a definitive feasibility study and updated our technical resources report with respect to bromine from our Evergreen Brine Unit. We have ongoing negotiations with various bromine providers for bridging supply agreements that, if and when finalized, will give us flexibility on the timing of a plant start-up, allowing us to accumulate additional cash from our existing base business. These initiatives are expected to provide us the bromine supply volumes necessary for the growing deepwater market plus the growing long-duration battery requirements, while deferring investments in Arkansas or scaling up our bromine production at lower levels than previously anticipated. If and when the bridging supply agreement is finalized, we will announce our revised Arkansas investment and timing plans. We continue to advance our development efforts in Arkansas and we expect to complete the first phase of the project by year end, including site preparation and installation of the bromine tower.

We are prioritizing our strategic initiatives on projects that can immediately impact our near-term results, focused on TETRA CS Neptune fluids in the Gulf of America, TETRA PureFlow+ electrolyte and our TETRA Oasis Total Desalination Solution ("TDS"), an end-to-end water treatment and desalination solution for re-use and mineral extraction applications for produced water from oil and gas wells. Following the commercial announcement of our Oasis TDS water desalination technology, we engaged a third-party firm and launched the engineering design of a first commercial plant. This step will facilitate commercial discussions for the multiple clients that have visited our research center to gain insight into Oasis and executed non-disclosure agreements (“NDAs”). We are very encouraged by our prospects to provide a solution that will enable the industry to desalinate and reuse produced water for agricultural, industrial, and other beneficial purposes.

### Results of Operations

The following information should be read in conjunction with the Consolidated Financial Statements and the associated Notes contained elsewhere in this report. The analysis herein reflects the optional approach to discuss results of operations on a sequential-quarter basis, which we believe provides information that is most useful in assessing our quarterly results of operations.

***Three months ended June 30, 2025 compared with three months ended March 31, 2025.***

#### Consolidated Comparisons

*(in thousands, except percentages)*

|  | Three Months Ended June 30, 2025 | March 31, 2025 | Period to Period Change $ Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| **Revenues** | **$173,872** | **$157,140** | **$16,732** | **10.6%** |
| **Gross profit** | **48,244** | **42,906** | **5,338** | **12.4%** |
| Gross profit as a percentage of revenue | 27.7% | 27.3% |  |  |
| General and administrative expense | 25,259 | 24,134 | 1,125 | 4.7% |
| General and administrative expense as a percentage of revenue | 14.5% | 15.4% |  |  |
| Interest expense, net | 4,194 | 4,724 | (530) | (11.2)% |
| Other (income) expense, net | (645) | 8,962 | 9,607 | NM(1) |
| **Income before taxes** | **19,436** | **5,086** | **14,350** | **282.1%** |
| Income before taxes as a percentage of revenue | 11.2% | 3.2% |  |  |
| Provision for income taxes | 8,131 | 1,037 | 7,094 | 684.1% |
| **Net income attributable to TETRA stockholders** | **$11,305** | **$4,049** | **$7,256** | **179.2%** |

(1) Percent change is not meaningful

Consolidated revenues increased sequentially primarily due to higher activity for the Completion Fluids & Products division, led by deepwater Gulf of America as we completed the three-well CS Neptune project and the seasonally stronger industrial chemicals calcium chloride business in Northern Europe. See Divisional Comparisons section below for a more detailed discussion of the change in our revenues.

Consolidated gross profit increased primarily due to stronger activity levels from the Completion Fluids & Products Division, partially offset by weaker margins from our Water & Flowback Services Divisions. See Divisional Comparisons section below for additional discussion.

Consolidated interest expense, net decreased compared to the prior quarter primarily due to an increase in the interest expense capitalized for our Arkansas development.

Consolidated other (income) expense, net, changed compared to the prior quarter primarily due to recognition of the $9.5 million cumulative currency translation adjustment loss associated with the dissolution of a former subsidiary in Canada in the first quarter, as well as increased foreign exchange gains in Brazil. Consolidated other (income) expense, net also includes a $0.6 million net increase in unrealized losses on investments.

Consolidated provision for income tax was $8.1 million expense during the current quarter, compared to $1.0 million expense during the prior quarter. The change in our tax provision compared to the prior quarter was primarily due to the higher income before taxes and the $1.2 million out-of-period tax benefit recognized in the prior quarter. Our consolidated effective tax rate for the three months ended June 30, 2025 was 41.8%.

#### Divisional Comparisons

#### Completion Fluids & Products Division

*(in thousands, except percentages)*

|  | Three Months Ended June 30, 2025 | March 31, 2025 | Period to Period Change $ Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| **Revenues** | **$109,445** | **$93,018** | **$16,427** | **17.7%** |
| **Gross profit** | **44,637** | **36,526** | **8,111** | **22.2%** |
| Gross profit as a percentage of revenue | 40.8% | 39.3% |  |  |
| General and administrative expense | 6,900 | 6,683 | 217 | 3.2% |
| General and administrative expense as a percentage of revenue | 6.3% | 7.2% |  |  |
| Interest income, net | (302) | (115) | 187 | 162.6% |
| Other income, net | (94) | (719) | 625 | 86.9% |
| **Net income before taxes** | **$38,133** | **$30,677** | **$7,456** | **24.3%** |
| Net income before taxes as a percentage of revenue | 34.8% | 33.0% |  |  |

Revenues for our Completion Fluids & Products Division increased due to the successful completion of the final two TETRA CS Neptune wells in the Gulf of America, the seasonally strong calcium chloride business in Northern Europe, higher completion fluids sales in South America and higher TETRA PureFlow+ electrolyte sales in the United States.

Gross profit for our Completion Fluids & Products Division increased compared to the prior quarter primarily due to the increase in revenues mentioned above. Profit margins improved primarily due to the effect of changes in product mix, including the higher-margin CS Neptune fluid sales, which generate higher margins than other projects. Our profitability in future periods will continue to be affected by the mix of our products and services, market demand for our products and services, and drilling and completions activity.

Other income, net decreased primarily due to a $0.7 million decrease in foreign exchange gains, primarily in Brazil.

#### Water & Flowback Services Division

*(in thousands, except percentages)*

|  | Three Months Ended June 30, 2025 | March 31, 2025 | Period to Period Change $ Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| **Revenues** | **$64,427** | **$64,122** | **$305** | **0.5%** |
| **Gross profit** | **3,701** | **6,474** | **(2,773)** | **(42.8)%** |
| Gross profit as a percentage of revenue | 5.7% | 10.1% |  |  |
| General and administrative expense | 4,815 | 5,735 | (920) | (16.0)% |
| General and administrative expense as a percentage of revenue | 7.5% | 8.9% |  |  |
| Interest (income) expense, net | 13 | (7) | 20 | NM(1) |
| Other expense, net | 144 | 9,634 | (9,490) | (98.5)% |
| **Net loss before taxes** | **$(1,271)** | **$(8,888)** | **$7,617** | **85.7%** |
| Net loss before taxes as a percentage of revenue | (2.0)% | (13.9)% |  |  |

(1) Percent change is not meaningful

Revenues for our Water & Flowback Services Division increased slightly compared to the prior quarter driven by resilience in our international business and increased flowback activity from improving SandStorm and Auto-Drillout utilization in key markets in the United States despite an overall decline in United States onshore activity.

Gross profit for our Water & Flowback Services Division declined reflecting the weaker environment and costs to close underperforming service lines in the United States.

The Water & Flowback Services Division decrease in net loss before taxes compared to the prior quarter is primarily due recognition of a $9.4 million cumulative currency translation adjustment loss associated with the dissolution of a former subsidiary in Canada in the first quarter and a $0.9 million decrease in general and administrative expense from cost reduction efforts, partially offset by lower gross profit.

#### Corporate Overhead

*(in thousands, except percentages)*

|  | Three Months Ended June 30, 2025 | March 31, 2025 | Period to Period Change $ Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| Depreciation and amortization | $94 | $94 | $— | —% |
| General and administrative expense | 13,544 | 11,716 | 1,828 | 15.6% |
| Interest expense, net | 4,483 | 4,846 | (363) | (7.5)% |
| Other (income) expense, net | (695) | 47 | 742 | NM(1) |
| **Net loss before taxes** | **$(17,426)** | **$(16,703)** | **$723** | **4.3%** |

(1) Percent change is not meaningful

Corporate overhead net loss before taxes increased compared to the prior quarter primarily due to a $1.8 million increase in general and administrative expenses due to increased wage and benefit related expenses to support higher activity levels in certain service lines, and an increase in other expense due to a $0.6 million increase in unrealized losses on investments. These were partially offset by a $0.9 million increase in foreign exchange gains on intercompany dividends and foreign currency hedges.

### Six months ended June 30, 2025 compared with six months ended June 30, 2024.

#### Consolidated Comparisons

*(in thousands, except percentages)*

|  | Six Months Ended June 30, 2025 | 2024 | Period to Period Change $ Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| **Revenues** | **$331,012** | **$322,907** | **$8,105** | **2.5%** |
| **Gross profit** | **91,150** | **74,355** | **16,795** | **22.6%** |
| Gross profit as a percentage of revenue | 27.5% | 23.0% |  |  |
| General and administrative expense | 49,393 | 44,435 | 4,958 | 11.2% |
| General and administrative expense as a percentage of revenue | 14.9% | 13.8% |  |  |
| Interest expense, net | 8,918 | 12,137 | (3,219) | (26.5)% |
| Loss on debt extinguishment | — | 5,535 | (5,535) | (100.0)% |
| Other (income) expense, net | 8,317 | (1,526) | (9,843) | NM(1) |
| **Net income before taxes** | **24,522** | **13,774** | **10,748** | **78.0%** |
| Net income before taxes as a percentage of revenue | 7.4% | 4.3% |  |  |
| Provision for income taxes | 9,168 | 5,219 | 3,949 | 75.7% |
| Net income | 15,354 | 8,555 | 6,799 | 79.5% |
| Loss attributable to noncontrolling interests | — | 3 | (3) | (100.0)% |
| **Net income attributable to TETRA stockholders** | **$15,354** | **$8,558** | **$6,796** | **79.4%** |

(1) Percent change is not meaningful

Consolidated revenues increased compared to the prior year due to stronger activity from our Completion Fluids & Products Division partially offset by lower revenues from our Water & Flowback Services Division. See Divisional Comparisons section below for a more detailed discussion of the change in our revenues.

Consolidated gross profit increased in the current year primarily due to strong margins from our Completion Fluids & Products, partially offset by weaker margins from our Water & Flowback Services Divisions.

Consolidated general and administrative expenses increased compared to the prior year due to higher professional services, compensation and other expenses.

Interest expense, net decreased $3.2 million due to lower interest rates on our Term Credit Agreement as well as an increase in the interest expense capitalized for our Arkansas development.

Consolidated loss on debt extinguishment decreased $5.5 million from non-cash unamortized finance costs expensed in connection with the repayment of our prior Term Credit Agreement in January 2024.

Consolidated other (income) expense, net, changed compared to the prior year primarily due to a $5.7 million increase in foreign exchange loss, including recognition of the cumulative currency translation adjustment loss associated with the dissolution of a former subsidiary in Canada in the first quarter of 2025, and a $2.9 million decrease in net unrealized gains on investments.

Consolidated provision for income taxes was $9.2 million expense during the current year, compared to $5.2 million expense during the prior year. The change in our tax provision compared to the prior year was primarily due to the higher income before taxes. Our consolidated effective tax rate for the current year is 37.4%, compared to 37.9% during the prior year.

#### Divisional Comparisons

#### Completion Fluids & Products Division

*(in thousands, except percentages)*

|  | Six Months Ended June 30, 2025 | 2024 | Period to Period Change $ Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| **Revenues** | **$202,462** | **$177,301** | **$25,161** | **14.2%** |
| **Gross profit** | **81,162** | **60,062** | **21,100** | **35.1%** |
| Gross profit as a percentage of revenue | 40.1% | 33.9% |  |  |
| General and administrative expense | 13,583 | 13,684 | (101) | (0.7)% |
| General and administrative expense as a percentage of revenue | 6.7% | 7.7% |  |  |
| Interest income, net | (417) | (404) | 13 | 3.2% |
| Other (income) expense, net | (813) | 337 | 1,150 | NM(1) |
| **Net income before taxes** | **$68,809** | **$46,445** | **$22,364** | **48.2%** |
| Net income before taxes as a percentage of revenue | 34.0% | 26.2% |  |  |

(1) Percent change is not meaningful

Revenues for our Completion Fluids & Products Division increased primarily due to the three CS Neptune wells in the Gulf of America, as well as higher Northern Europe industrial chemical sales and North America ultra-pure zinc bromide electrolyte sales.

Gross profit for our Completion Fluids & Products Division increased compared to the prior year due to higher revenues. Profit margins improved primarily due to the effect of changes in product mix, including the higher-margin CS Neptune fluid sales. Our profitability in future periods will continue to be affected by the timing of and the mix of our products and services, market demand for our products and services, and drilling and completions activity.

Net income before taxes for our Completion Fluids & Products Division increased compared to the prior year driven by higher gross profit. Other (income) expense, net also improved due to a $1.3 million increase in foreign exchange gains, primarily in Brazil, and a $1.0 million increase in unrealized gain from our investment in Standard Lithium shares, partially offset by a $0.8 million increase in unrealized loss from the change in fair value of our investments issued by a privately-held company.

#### Water & Flowback Services Division

*(in thousands, except percentages)*

|  | Six Months Ended June 30, 2025 | 2024 | Period to Period Change $ Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| **Revenues** | **$128,550** | **$145,606** | **$(17,056)** | **(11.7)%** |
| **Gross profit** | **10,176** | **14,458** | **(4,282)** | **(29.6)%** |
| Gross profit as a percentage of revenue | 7.9% | 9.9% |  |  |
| General and administrative expense | 10,550 | 8,961 | 1,589 | 17.7% |
| General and administrative expense as a percentage of revenue | 8.2% | 6.2% |  |  |
| Interest expense, net | 6 | 144 | (138) | (95.8)% |
| Other expense, net | 9,778 | 1,476 | (8,302) | 562.5% |
| **Net income (loss) before taxes** | **$(10,158)** | **$3,877** | **$(14,035)** | **(362.0)%** |
| Net income (loss) before taxes as a percentage of revenue | (7.9)% | 2.7% |  |  |

Revenues for our Water & Flowback Services Division decreased due to lower United States drilling and completion activity as well as lower service revenues following the sale of early production facilities in Latin America in 2024.

Gross profit for our Water & Flowback Services Division decreased slightly from the prior year reflecting lower activity in the United States onshore market.

Net income (loss) before taxes for our Water & Flowback Services Division changed to a loss in the current year compared to income in the prior year primarily due to recognition of the $9.5 million cumulative currency translation adjustment loss associated with the dissolution of a former subsidiary in Canada, as well as a $1.6 million increase in general and administrative expense due to higher compensation expense including costs to close underperforming service lines in the United States.

#### Corporate Overhead

*(in thousands, except percentages)*

|  | Six Months Ended June 30, 2025 | 2024 | Period to Period Change $ Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| Depreciation and amortization | $188 | $165 | $23 | 13.9% |
| General and administrative expense | 25,260 | 21,790 | 3,470 | 15.9% |
| Interest expense, net | 9,329 | 12,397 | (3,068) | (24.7)% |
| Loss on debt extinguishment | — | 5,535 | (5,535) | (100.0)% |
| Other income, net | (648) | (3,339) | (2,691) | (80.6)% |
| **Net loss before taxes** | **$(34,129)** | **$(36,548)** | **$(2,419)** | **(6.6)%** |

Corporate overhead net loss before taxes decreased primarily due to a $5.5 million loss associated with the early extinguishment of our prior term credit agreement in January 2024 and a $3.1 million decrease in unrealized gains related to share price changes of our investment in Kodiak which we sold in January 2025, and a $3.1 million decrease in interest expense, net due to lower interest rates on our Term Credit Agreement as well as an increase in the interest expense capitalized for our Arkansas development, partially offset by a $3.5 million increase in general and administrative expenses primarily from an increase in professional services and compensation expenses.

### Non-GAAP Financial Measures

We use U.S. GAAP financial measures such as revenues, gross profit, income (loss) before taxes, and net cash provided by operating activities, as well as certain non-GAAP financial measures, including Adjusted EBITDA, as performance measures for our business.

*Adjusted EBITDA.* We define Adjusted EBITDA as net income (loss) before taxes, excluding impairments, certain special, non-recurring or other charges (or credits), including loss on debt extinguishment, interest, depreciation and amortization and certain non-cash items such as equity-based compensation expense and foreign currency translation adjustments not associated with current operations. The most directly comparable GAAP financial measure is net income (loss) before taxes. Adjustments to long-term incentives represent adjustments to valuation of long-term cash incentive compensation awards that are related to prior years. These costs are excluded from Adjusted EBITDA because they did not relate to the periods presented and are considered to be outside of normal operations. Long-term incentives are earned over a three-year period and the costs are recorded over the three-year period they are earned. The amounts accrued or incurred are based on a cumulative of the three-year period. Equity-based compensation expense represents compensation that has been or will be paid in equity and is excluded from Adjusted EBITDA because it is a non-cash item.

Adjusted EBITDA is used by management as a supplemental financial measure to assess financial performance, without regard to charges or credits that are considered by management to be outside of its normal operations and without regard to financing methods, capital structure or historical cost basis, and to assess the Company’s ability to incur and service debt and fund capital expenditures.

The following tables reconcile net income (loss) before taxes to Adjusted EBITDA for the periods indicated:

*(in thousands, except percentages)*

|  | Three Months Ended June 30, 2025 Completion Fluids & Products | Water & Flowback Services | Corporate SG&A | Corporate Other | Total |
| --- | ---: | ---: | ---: | ---: | ---: |
| **Revenues** | **$109,445** | **$64,427** | **$—** | **$—** | **$173,872** |
| **Net income (loss) before taxes** | **38,133** | **(1,271)** | **(13,544)** | **(3,882)** | **19,436** |
| Impairments and other charges | — | 93 | — | — | 93 |
| Former CEO stock appreciation right credit | — | — | (22) | — | (22) |
| Transaction, restructuring and other expenses | 69 | 685 | 488 | — | 1,242 |
| Interest (income) expense, net | (302) | 13 | — | 4,483 | 4,194 |
| Depreciation, amortization and accretion | 2,214 | 6,881 | — | 94 | 9,189 |
| Equity-based compensation expense | — | — | 1,747 | — | 1,747 |
| **Adjusted EBITDA** | **$40,114** | **$6,401** | **$(11,331)** | **$695** | **$35,879** |
| Adjusted EBITDA as a % of revenue | 36.7% | 9.9% |  |  | 20.6% |
|  | **Three Months Ended** |  |  |  |  |
|  | **March 31, 2025** |  |  |  |  |
|  | **Completion Fluids & Products** | **Water & Flowback Services** | **Corporate SG&A** | **Corporate Other** | **Total** |
|  | (in thousands, except percentages) |  |  |  |  |
| **Revenues** | **$93,018** | **$64,122** | **$—** | **$—** | **$157,140** |
| **Net income (loss) before taxes** | **30,677** | **(8,888)** | **(11,716)** | **(4,987)** | **5,086** |
| Cost of product sales and services adjustments | 477 | — | — | — | 477 |
| Impairments and other charges | — | 518 | — | — | 518 |
| Former CEO stock appreciation right credit | — | — | (151) | — | (151) |
| Transaction, restructuring and other expenses | — | 302 | 784 | — | 1,086 |
| Non-cash cumulative foreign currency translation adjustment loss from dissolution of Canadian subsidiary | — | 9,516 | — | — | 9,516 |
| Interest (income) expense, net | (115) | (7) | — | 4,846 | 4,724 |
| Depreciation, amortization and accretion | 2,177 | 6,880 | — | 94 | 9,151 |
| Equity-based compensation expense | — | — | 1,860 | — | 1,860 |
| **Adjusted EBITDA** | **$33,216** | **$8,321** | **$(9,223)** | **$(47)** | **$32,267** |
| Adjusted EBITDA as a % of revenue | 35.7% | 13.0% |  |  | 20.5% |
|  | **Three Months Ended** |  |  |  |  |
|  | **June 30, 2024** |  |  |  |  |
|  | **Completion Fluids & Products** | **Water & Flowback Services** | **Corporate SG&A** | **Corporate Other** | **Total** |
|  | (in thousands, except percentages) |  |  |  |  |
| **Revenues** | **$100,019** | **$71,916** | **$—** | **$—** | **$171,935** |
| **Net income (loss) before taxes** | **26,653** | **3,156** | **(10,689)** | **(6,641)** | **12,479** |
| Former CEO stock appreciation right credit | — | — | (428) | — | (428) |
| Transaction, restructuring and other expenses | 37 | — | — | — | 37 |
| Unusual foreign exchange loss | — | 1,387 | — | — | 1,387 |
| Interest (income) expense, net | (135) | 68 | — | 6,252 | 6,185 |
| Depreciation, amortization and accretion | 2,361 | 6,329 | — | 84 | 8,774 |
| Equity-based compensation expense | — | — | 1,800 | — | 1,800 |
| **Adjusted EBITDA** | **$28,916** | **$10,940** | **$(9,317)** | **$(305)** | **$30,234** |
| Adjusted EBITDA as a % of revenue | 28.9% | 15.2% |  |  | 17.6% |

Adjusted EBITDA is a financial measure that is not in accordance with U.S. GAAP and should not be considered an alternative to net income, operating income, cash provided by operating activities, or any other measure of financial performance presented in accordance with U.S. GAAP. This measure may not be comparable to similarly titled financial metrics of other companies, as other companies may not calculate Adjusted EBITDA in the same manner as we do. Management compensates for the limitations of Adjusted EBITDA as an analytical tool by reviewing the comparable U.S. GAAP measures, understanding the differences between the measures, and incorporating this knowledge into management’s decision-making processes.

### Liquidity and Capital Resources

We believe that our capital structure allows us to meet our financial obligations on both a short-term and long-term basis. Our liquidity at the end of the second quarter was $204.5 million. Liquidity is defined as unrestricted cash plus availability of $75 million under the delayed draw from our Term Credit Agreement and availability under our credit agreements. Information about the terms and covenants of our debt agreements can be found in Note 5 - Long Term Debt and Other Borrowings.

Our consolidated sources and uses of cash are as follows:

*(in thousands)*

|  | Six Months Ended June 30, 2025 | 2024 |
| --- | ---: | ---: |
| Operating activities | $52,268 | $11,015 |
| Investing activities | $(18,275) | $(31,041) |
| Financing activities | $(4,584) | $10,978 |

#### Operating Activities

Consolidated cash flows provided by operating activities increased compared to the first six months of 2024 primarily due to an increase in gross profit and working capital changes.

#### Investing Activities

Total cash capital expenditures during the first six months of 2025 were $37.4 million, which reflects increased expenditures for advancement of our Arkansas brine resource development and additions to accommodate industry-wide activity. Our Completion Fluids & Products Division spent $27.5 million on capital expenditures, including $22.0 million for our Arkansas brine resource development, including preparing the site and bromine tower for the plant. Our Water & Flowback Services Division spent $9.8 million on capital expenditures to maintain, automate and upgrade its water management and flowback equipment fleet.

Investing activities during the first six months of 2025 also included $19.0 million of proceeds from the sale of our Kodiak shares, net of broker commissions and fees.

We have rights to the brine underlying our approximately 40,000 gross acres of brine leases in the Smackover Formation in Southwest Arkansas, including rights to the bromine and lithium contained in the brine. Additional information on these resources is described in Part I, “Item 2. Properties” in our 2024 Annual Report. The extraction of lithium and bromine from these brine leases will likely require a significant amount of time and capital, which are subject to further analysis and consideration. In August 2024, we published a definitive feasibility study and updated our technical resources report with respect to bromine from our Evergreen Brine Unit. We have ongoing negotiations with various bromine providers for bridging supply agreements that, if and when finalized, will give us flexibility on the timing of a plant start-up, allowing us to accumulate additional cash from our existing base business operations. These initiatives are expected to provide us the bromine supply volumes necessary for the growing deepwater market plus the growing long-duration battery storage requirements, while deferring investments in Arkansas or scaling up our bromine production at lower levels than previously anticipated. We continue to advance our development efforts in Arkansas and we expect to complete the first phase of the project by year end, including site preparation and installation of the bromine tower.

Historically, a significant majority of our planned capital expenditures have been related to identified opportunities to grow and expand our existing businesses. We are also focused on enhancing shareholder value by capitalizing on our key mineral assets, brine mineral extraction expertise, and deep chemistry competency to expand our offerings into the low carbon energy markets. However, we continue to review all capital expenditure plans carefully in an effort to conserve cash. If the forecasted demand for our products and services increases or decreases, or we proceed with development of brine resources in Arkansas, the amount of planned expenditures on growth and expansion may be adjusted.

#### Financing Activities

Our financing activities for the first six months of 2025 include $2.1 million of capital lease payments associated with equipment leased primarily for the early production facilities in Argentina and equipment leases in the United States. We may supplement our existing cash balances and cash flow from operating activities with short-term borrowings, long-term borrowings, issuances of equity and debt securities, and other sources of capital. We are aggressively managing our working capital and capital expenditure needs in order to maximize our liquidity in the current environment.

For additional information on our credit agreements, see Note 5 - “Long-Term Debt and Other Borrowings” in the Notes to Consolidated Financial Statements.

#### Other Sources and Uses of Cash

In addition to our credit facilities, we fund our short-term liquidity requirements from cash generated by our operations and from short-term vendor financing. In addition, as of June 30, 2025, the market value of our investment in Standard Lithium was $1.6 million, with no holding restrictions on our ability to monetize our interests.

In addition, we are party to agreements in which Standard Lithium has the right to explore for, and an option to acquire the right to produce and extract lithium in our Arkansas leases as well as additional potential resources, in the Mojave region of California. Standard Lithium exercised its option with respect to our Arkansas leases on October 6, 2023. On April 22, 2025, the Arkansas Oil and Gas Commission approved Standard Lithium’s SWA Lithium application to establish a unit for acreage under an option agreement between Standard Lithium, SWA Lithium and TETRA. TETRA is entitled to a 2.5% royalty on gross revenues from the lithium that Standard Lithium produces from the TETRA option acreage. In addition, TETRA maintains the rights to the bromine and other minerals extracted from the brine produced by Standard Lithium in their approved unit.

In May 2025, we filed a universal shelf Registration Statement on Form S-3 with the SEC, which was declared effective by the SEC. Pursuant to this registration statement, we have the ability to sell debt or equity securities in one or more public offerings up to an aggregate public offering price of $400 million. This shelf registration statement currently provides us additional flexibility with regards to potential financing that we may undertake when market conditions permit or our financial condition may require.

Should additional capital be required, the ability to raise such capital through the issuance of additional debt or equity securities may currently be limited. Instability or volatility in the capital markets at the times we need to access capital may affect the cost of capital and the ability to raise capital for an indeterminable length of time. If it is necessary to issue additional equity to fund our capital needs, additional dilution of our common stockholders will occur. We periodically evaluate engaging in strategic transactions and may consider divesting non-core assets where our evaluation suggests such transactions are in the best interest of our business. In challenging economic environments, we may experience increased delays and failures by customers to pay our invoices. If our customers delay paying or fail to pay us a significant amount of our outstanding receivables, it could have an adverse effect on our liquidity. An increase in unpaid aged receivables would also negatively affect our borrowing availability under the ABL Credit Agreement.

As of June 30, 2025, we had no “off balance sheet arrangements” that may have a current or future material effect on our consolidated financial condition or results of operations.

### Critical Accounting Policies and Estimates

There have been no material changes or developments in the evaluation of the accounting estimates and

the underlying assumptions or methodologies pertaining to our Critical Accounting Policies and Estimates disclosed

in our 2024 Annual Report. In preparing our consolidated financial statements, we make assumptions, estimates, and judgments that affect the amounts reported. These judgments and estimates may change as new events occur, as new information is acquired, and as changes in our operating environments are encountered. Actual results are likely to differ from our current estimates, and those differences may be material.

### Commitments and Contingencies

#### Litigation

For discussion of our legal proceedings, please see our 2024 Annual Report and Note 6 - “Commitments and Contingencies” in the Notes to Consolidated Financial Statements included in this Quarterly Report.

#### Long-Term Debt

For information on our credit agreements, see Note 5 - “Long-Term Debt and Other Borrowings” in the Notes to Consolidated Financial Statements.

#### Leases

We have operating leases for some of our transportation equipment, office space, warehouse space, operating locations and machinery and equipment, as well as a sales-type lease and subleases for certain facilities. We have finance leases for certain facility storage tanks and equipment rentals. Information about the terms of our lease agreements can be found in our 2024 Annual Report.

#### Product and Asset Purchase Obligations

For information on product and asset purchase obligations, see Note 6 - “Commitments and Contingencies” in the Notes to Consolidated Financial Statements.

### Cautionary Statement for Purposes of Forward-Looking Statements

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements in this Quarterly Report are identifiable by the use of the following words, the negative of such words, and other similar words: “anticipates”, “assumes”, “believes”, “budgets”, “could”, “estimates”, “expects”, “forecasts”, “goal”, “intends”, “may”, “might”, “plans”, “predicts”, “projects”, “schedules”, “seeks”, “should”, “targets”, “will”, and “would”.

These forward-looking statements reflect our current views with respect to future events and financial performance and are based on assumptions that we believe to be reasonable, but such forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to: economic and operating conditions that are outside of our control, including the trading price of our common stock, and the supply, demand, and prices of oil and natural gas; the availability of adequate sources of capital to us; the effect of inflation on the cost of goods and services; the activity levels of our customers; our operational performance; actions taken by our customers, suppliers, competitors and third-party operators; the availability of raw materials and labor at reasonable prices; risks related to acquisitions and our growth strategy; restrictions under our debt agreements and the consequences of any failure to comply with debt covenants; the effect and results of litigation, commercial disputes, regulatory matters, settlements, audits, assessments, and contingencies; potential regulatory initiatives to restrict hydraulic fracturing activities on federal lands as well as other actions to more stringently regulate certain aspects of oil and gas development such as air emissions and water discharges; risks related to our foreign operations; risks related to our non-controlling equity investments; information and operational technology risks, including the risk of cyberattack; our health, safety and environmental performance; the effects of consolidation on our customers and competitors; global or national health concerns, including the outbreak of pandemics or epidemics such as the coronavirus (COVID-19); acts of terrorism, war or political or civil unrest in the United States or elsewhere, including the current conflict between Russia and Ukraine, the conflict in the Israel-Gaza region, heightened tensions with Iran, including the potential closure of the Strait of Hormuz, and other and continued hostilities in the Middle East, maritime piracy attacks; and statements regarding our beliefs, expectations, plans, goals, future events and performance and other statements that are not purely historical.

These statements include statements concerning changes in general economic conditions, opportunity risks, such as the potential extraction of lithium, bromine and other minerals, including potential extraction of those minerals designated as critical minerals, from our Evergreen Brine Unit, demand therefor, or realizing industrial and other benefits expected from bromine processing; the timing and success of our bromine production wells and the construction of our bromine processing facility and related engineering activities and risks inherent in the construction of such facility, including the ability to obtain local governmental and regulatory approvals; the accuracy of our resources report or the timing of future updates to our resources report, feasibility study and economic assessment regarding our lithium, bromine and other mineral acreage; equipment supply, equipment defects and/or our ability to timely obtain equipment components; competition from existing or new competitors; and risks associated with changes in laws and regulations, or the imposition of economic or trade sanctions affecting international commercial transactions, including legislative, regulatory and policy changes, such as unexpected changes in tariffs, trade barriers, price and exchange control. With respect to our disclosures of measured, indicated and inferred mineral resources, including bromine, lithium carbonate equivalent concentrations, and other minerals, it is unclear whether they will ever be economically developed. Investors are cautioned that mineral resources do not have demonstrated economic value and further exploration may not result in the estimation of a mineral reserve. Further there are a number of uncertainties related to processing lithium, which is an inherently difficult process, including, for example, the development of the technology to do so successfully and economically. Therefore, investors are cautioned not to assume that all or any part of our resources can be economically or legally commercialized. In particular, investors are cautioned not to assume that all or any part of an inferred mineral resource exists, that it can be economically or legally commercialized, or that it will ever be upgraded to a higher category. With respect to the Company’s disclosures of the potential joint venture for the Evergreen Brine Unit, it is uncertain about the ability of the parties to successfully negotiate one or more definitive agreements, the future relationship between the parties, and the ability to successfully and economically produce lithium and bromine from the Evergreen Unit.

Management believes that these forward-looking statements are reasonable as and when made. However, investors are cautioned not to place undue reliance on any such forward-looking statements. Such statements speak only as of the date on which they are made, and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations, forecasts or projections. Factors which may cause actual results to differ materially from current expectations include, but are not limited to: changes in general economic conditions; opportunity risks, such as mineral extraction, demand therefor, or realizing industrial and other benefits expected from bromine processing; our ability to develop a bromine processing facility and risks inherent in the construction such facility; equipment supply, equipment defects and/or our ability to timely obtain equipment components; competition from existing or new competitors; risks associated with changes in laws and regulations, or the imposition of economic or trade sanctions affecting international commercial transactions, including legislative, regulatory and policy changes, such as unexpected changes in tariffs, trade barriers, price and exchange controls; and the other factors described in Part II, “Item 1A. Risk Factors” and elsewhere in this report and in our 2024 Annual Report, and those described from time to time in our future reports filed with the SEC.

## Market risk

As filed, 2,092 characters.

#### Interest Rate Risk

The interest on our borrowings is subject to market risk exposure related to changes in applicable interest rates. Borrowings under the Term Credit Agreement bear interest at a rate per annum of SOFR plus 5.75%. The Company is required to pay a commitment fee on the unutilized commitments with respect to the delayed-draw term loan at the rate of 1.5% per annum. Borrowings under our ABL Credit Agreement, if any, bear interest at an agreed-upon percentage rate spread above SOFR. Borrowings under our Swedish Credit Facility, if any, bear interest at fixed rates of 2.95%. We are not a party to an interest rate swap contract or other derivative instrument designed to hedge our exposure to interest rate fluctuation risk. As of June 30, 2025, we had no borrowings outstanding under our ABL Credit Agreement or Swedish Credit Facility. The following table sets forth as of June 30, 2025, the principal amount due under our long-term debt obligations and the respective interest rate.

*(in thousands)*

|  | Scheduled Maturity | Interest Rate | June 30, 2025 |
| --- | --- | ---: | ---: |
| Term Credit Agreement | January 1, 2030 | 10.17% | $190,000 |
| TETRA total debt |  |  | $190,000 |

#### Exchange Rate Risk

We have currency exchange rate risk exposure related to revenues, expenses, operating receivables, and payables denominated in foreign currencies. We may enter into short-term foreign-currency forward derivative contracts as part of a program designed to mitigate the currency exchange rate risk exposure on selected transactions of certain foreign subsidiaries. Although contracts pursuant to this program will serve as an economic hedge of the cash flow of our currency exchange risk exposure, they are not expected to be formally designated as hedge contracts or qualify for hedge accounting treatment. Accordingly, any change in the fair value of these derivative instruments during a period will be included in the determination of earnings for that period. As of June 30, 2025, we did not have any foreign currency exchange contracts outstanding.

## Controls and procedures

As filed, 829 characters.

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended. Based on this evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of June 30, 2025, the end of the period covered by this quarterly report.

There were no changes in our internal controls over financial reporting that occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

### PART II

### OTHER INFORMATION

## Risk factors

As filed, 2,409 characters.

Except as set forth below, as of the date of this filing, TETRA and its operations continue to be subject to the risk factors previously disclosed in the “Risk Factors” sections contained in our 2024 Annual Report.

***Current geopolitical events and macroeconomic conditions could adversely affect our business, financial condition and results of operations.***

Demand for our services and products is particularly sensitive to the level of exploration, development, and production activity of, and the corresponding capital spending by, oil and natural gas companies. Furthermore, the industry may experience a potential shift of priorities driven by changes in the global economy, fluctuating commodity prices and evolving tariffs — all of which could impact upstream oil and gas investment and, in turn, affect demand for our products and services. The level of exploration, development, and production activity is directly affected by oil and natural gas prices, which historically have been volatile and are likely to continue to be volatile. Geopolitical events and macroeconomic conditions have contributed to oil and natural gas price volatility and are likely to continue to do so in the future. We are monitoring the military conflicts between Russia and Ukraine and Israel and Iran, as well as the related export controls and financial and economic sanctions imposed on certain industry sectors and parties involved in such conflicts. We are also monitoring the impact on the Strait of Hormuz as a result of the unrest in the Middle East. If Iran were to close the Strait of Hormuz, we would experience potential shipment delays, cost increases, among others, which could adversely affect our business. The broader consequences of the Russian-Ukrainian conflict and unrest in the Middle East, which may include further sanctions, embargoes, supply chain disruptions, regional instability and geopolitical shifts, may have adverse effects on global macroeconomic conditions, increase volatility in the price and demand for oil and natural gas, increase exposure to cyberattacks, cause disruptions in global supply chains, increase foreign currency fluctuations, cause constraints or disruption in the capital markets and limit sources of liquidity. We cannot predict the extent of the conflict’s effect on our business and results of operations as well as on the global economy and energy markets.

Filed Jul 29, 2025.
Source: SEC EDGAR, the filing index for accession 0000844965-25-000057. Last ingested by Listed: Nov 2, 2026, 19:51 ET. No prices; not investment advice.