DeFi Technologies Provides Monthly Corporate Update: Valour Reports US$947 Million (C$1.3 Billion) in AUM, and Monthly Net Inflows of US$14.4 Million (C$19.8 Million) in July 2025, Among Other Key Developments
Strong Financial Position & Treasury Strategy: As of July 31, 2025, the Company maintains a total cash, USDT, and treasury balance of US$90.5 million (C$124.6 million). This includes US$17 million (C$23.4 million) in cash and USDT—a 21.4% increase month-over-month —and US$73.5 million (C$101.2 million) in its digital asset treasury, representing a 52% increase from the prior month. The Company rebalanced its treasury to increase allocations to BTC, SOL, and CORE.
Stillman Digital Strategic Growth & RWA Partnership: Stillman Digital processed US$1.95 billion in trading volume and announced a strategic partnership with Ozean to drive institutional adoption of Real-World Assets (RWAs), while continuing to enhance trading infrastructure, onboard institutional clients, and expand cross-border operations.
Q2 2025 Financials: The Company will report its Q2 2025 financial results after market close on Thursday, August 14, 2025. Details regarding the accompanying shareholder call will be announced in the coming days.
TORONTO, Aug. 6, 2025 /PRNewswire/ -- DeFi Technologies Inc. (the " Company" or " DeFi Technologies") (Nasdaq: DEFT) (CBOE CA: DEFI) (GR: R9B), a financial technology company bridging the gap between traditional capital markets and decentralized finance ("DeFi"), is pleased to announce that its subsidiary, Valour Inc., and Valour Digital Securities Limited (together, " Valour"), a leading issuer of exchange traded products (" ETPs") reported assets under management ("AUM") of US$947 million (C$1.3 billion) as of July 31, 2025. This reflects a 23% increase month-over-month, driven by rising digital asset prices and continued net inflows into Valour's ETPs.
Valour recorded US$14.4 million (C$19.9 million) in net inflows for July, marking its second strongest month year-to-date.
Net Inflows and Investor Confidence
In July, Valour recorded its second strongest month of the year in net inflows of US$14.4 million (C$19.9 million), continuing its trend of consistent monthly inflows regardless of market conditions. Year-to-date, total net inflows have reached US$90.4 million (C$125.4 million), highlighting accelerating investor demand for Valour's ETPs. This sustained momentum reflects growing investor confidence and reinforces the appeal of Valour's diverse product lineup.
Key Products Driving Inflows
A combination of established and newer ETP listings, including SOL, DOGE and SUI, drove the exceptional performance. Key contributors include:
These inflows highlight Valour's leadership in providing access to diverse digital assets.
Valour's Top ETPs by AUM
Valour monetizes its AUM primarily through staking and management fees. Valour retains staking yields as revenue, capturing value directly from the underlying digital assets held in its ETPs, in addition to management fees.
In Q1 2025, Valour generated staking and lending income of US$10.0 million (C$14.0 million) and management fees of US$2.6 million (C$3.6 million), demonstrating the strength of its vertically integrated model and its ability to generate recurring, protocol-driven revenue from its growing AUM base. As of July 31, 2025, Valour's ETPs with the highest levels of AUM were as follows:
Valour's Global Expansion and Strategic Market Development
Valour continues to expand its global footprint as a leader in regulated digital asset products. With over 75 ETPs currently listed across European and UK exchanges, the Company remains on track to reach 100 listed products by the end of 2025. Upcoming launches include leveraged and warrant-based structures, further broadening investor access.
In parallel, Valour continues to advance its strategy of entering high-growth emerging markets across Africa, Asia, the Middle East, and beyond—securing a first-mover advantage in key jurisdictions. This proactive expansion reinforces Valour's long-term commitment to accelerating global adoption of regulated digital asset investment products.
Strong Financial Position
As of July 31, 2025, the Company maintained a strong financial position:
Cash and USDT Balance: Approximately US$17 million (C$23.4 million).
Loans Payable: Approximately C$8.6 million (US$6 million), unchanged from the previous month, primarily attributed to the ongoing Genesis restructuring
Digital Asset Treasury
In July, the Company rebalanced its treasury to increase allocations to BTC, SOL, and CORE. As of month-end, the portfolio was valued at approximately US$73.5 million (C$101.2 million). The Company may rebalance or expand its treasury at any time, leveraging its available US$90.5 million (C$124.6 million) in cash, USDT, and other treasury assets.
Stillman Digital Update
Trading Volume: Approximately US$1.95 billion in trades processed.
The company announced a strategic partnership with Ozean, a blockchain protocol for Real-World Assets (RWAs) launched by Clearpool. The collaboration is focused on onboarding institutional capital into the RWA space, further solidifying Stillman's position as a key infrastructure partner in the evolving digital asset landscape.
Operationally, Stillman Digital continues to:
Improve internal trading systems with a focus on latency reduction, order execution optimization, and risk controls;
Onboard new institutional client accounts, expanding its counterparty network across hedge funds, family offices, exchanges, and crypto-native companies;
Diversify liquidity strategies across trading venues;
Expand cross-border operations as regulatory clarity around digital assets evolves in key jurisdictions.
DeFi Alpha Strategy
The Company continues to assess and execute on arbitrage opportunities through its specialized trading desk, DeFi Alpha. Since its launch in Q2 2024, DeFi Alpha has generated a total of C$155.9 million (US$114.1 million) in revenue, including a one-time arbitrage trade announced on May 5, 2025, that delivered a return of C$23.8 million (US$17.3 million), incorporating a non-cash DLOM valuation adjustment. This strategy has significantly strengthened the Company's financial position, enabling debt repayment and supporting the ongoing expansion of its digital asset treasury.
2025 Financial Outlook:
DeFi Technologies' fiscal 2025 revenue forecast of approximately C$285.6 million (US$201.07 million) excludes any decrease or recovery of discount for lack of marketability ("DLOM") applied to two private investment funds through which the Company gained exposure to locked Solana and Avalanche tokens ("Locked Tokens"). In fiscal 2024, the Locked Tokens were acquired with a DLOM applied to their fair market value, reflecting their restricted status until 2028. As these tokens unlock, reductions in the DLOM are recognized as revenue; however, given that these adjustments are non-operational in nature, they are excluded from the Company's fiscal 2025 revenue guidance.
Q2 2025 Financials
The Company will release its Q2 2025 financial results after market close on Thursday, August 14, 2025. Additional details regarding a shareholder call will be announced in the coming days.
Recent Strategic Developments from July include:
Valour launched eight new SEK-denominated exchange traded products (ETPs) on Sweden's Spotlight Stock Market, including products for Bitcoin Cash (BCH), Unus Sed Leo (LEO), OKB, Polygon (POL), Algorand (ALGO), Filecoin (FIL), Arbitrum (ARB), and Stacks (STX). With these additions, Valour surpassed 75 listed ETPs, further expanding its Nordic footprint and strengthening its position as one of the most comprehensive digital asset ETP issuers in the world.
Valour entered the Swiss market with the launch of two new staking ETPs—1Valour Hedera (HBAR) and 1Valour Internet Computer (ICP)—on the SIX Swiss Exchange. The listings marked Valour's first products on Switzerland's primary stock exchange and expanded its regulated product suite to over 75 ETPs across Europe. Both products offered investors secure, transparent access to native staking yields through traditional brokerage accounts. The company remained on track to reach 100 listed ETPs by the end of 2025.
DeFi Technologies to Manage Nuvve's HYPE Treasury Strategy Through Newly Launched DeFi Advisory Business Line
DeFi Technologies launched its DeFi Advisory business line to provide institutional-grade digital asset treasury solutions for public companies. Its first mandate was with Nuvve Holding Corp. (Nasdaq: NVVE), which appointed DeFi Technologies to manage its HYPE token treasury strategy. The scope includes custody, OTC execution via Stillman Digital, and performance optimization. Compensation is structured as recurring management fees based on AUM, paid quarterly in equity or cash, reinforcing DeFi Technologies' scalable, fee-based model.
DeFi Technologies announced that options trading for its common stock commenced on the Nasdaq Options Market under the ticker "DEFT." The listing includes a range of expiration dates and strike prices, providing investors with additional tools to manage risk and express views on the Company's performance.
Supplemental Materials and Upcoming Communications
The Company has made available on its website materials designed to accompany the discussion of its results, along with certain supplemental financial information and other data. For important news and information regarding the Company, including investor presentations and the timing of future investor conferences, visit the Investor Relations section of the Company's website: https://defi.tech/investor-relations.
Analyst Coverage of DeFi Technologies
A full list of DeFi Technologies analyst coverage can be found here: https://defi.tech/investor-relations#research.
For inquiries from institutional investors, funds, or family offices, please contact: ir@defi.tech
About DeFi Technologies
DeFi Technologies Inc. (Nasdaq: DEFT) (CBOE CA: DEFI) (GR: R9B) is a financial technology company bridging the gap between traditional capital markets and decentralized finance (" DeFi"). As the first Nasdaq-listed digital asset manager of its kind, DeFi Technologies offers equity investors diversified exposure to the broader decentralized economy through its integrated and scalable business model. This includes Valour, which offers access to over seventy-five of the world's most innovative digital assets via regulated ETPs; Stillman Digital, a digital asset prime brokerage focused on institutional-grade execution and custody; Reflexivity Research, which provides leading research into the digital asset space; Neuronomics, which develops quantitative trading strategies and infrastructure; and DeFi Alpha, the Company's internal arbitrage and trading business line. With deep expertise across capital markets and emerging technologies, DeFi Technologies is building the institutional gateway to the future of finance. Follow DeFi Technologies on LinkedIn and X/Twitter, and for more details, visit https://defi.tech/
DeFi Technologies Subsidiaries
About Valour
Valour Inc. and Valour Digital Securities Limited (together, " Valour") issues exchange traded products (" ETPs") that enable retail and institutional investors to access digital assets in a simple and secure way via their traditional bank account. Valour is part of the asset management business line of DeFi Technologies. For more information about Valour, to subscribe, or to receive updates, visit valour.com.
About Stillman Digital
Stillman Digital is a leading digital asset liquidity provider that offers limitless liquidity solutions for businesses, focusing on industry-leading trade execution, settlement, and technology. For more information, please visit https://www.stillmandigital.com
About Reflexivity Research
Reflexivity Research LLC is a leading research firm specializing in the creation of high-quality, in-depth research reports for the bitcoin and digital asset industry, empowering investors with valuable insights. For more information please visit https://www.reflexivityresearch.com/
About Neuronomics AG
Neuronomics AG is a Swiss asset management firm specializing in AI-powered quantitative trading strategies. By integrating artificial intelligence, computational neuroscience and quantitative finance, Neuronomics delivers cutting-edge solutions that drive superior risk-adjusted performance in financial markets. For more information please visit https://www.neuronomics.com/
Cautionary note regarding forward-looking information:
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to the growth of AUM; digital asset treasury strategy of the Company; expansion of digital asset ETPs; staking and lending income generated on Valour's AUM; investor interest and demand for Valour's ETP; investor confidence in digital assets generally; arbitrage opportunities by DeFi Alpha; the regulatory environment with respect to the growth and adoption of decentralized finance; the pursuit by the Company and its subsidiaries of business opportunities; and the merits or potential returns of any such opportunities. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, as the case may be, to be materially different from those expressed or implied by such forward-looking information. Such risks, uncertainties and other factors include, but is not limited the acceptance of Valour exchange traded products by exchanges; growth and development of decentralised finance and digital asset sector; rules and regulations with respect to decentralised finance and digital assets; fluctuation in digital asset prices; general business, economic, competitive, political and social uncertainties. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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Financial Operational (stated in Canadian dollars, except operating days and average industry land rig counts) Three months ended June 30, % Six months ended June 30, % 2025 2024 Change 2025 2024 Change Operating days (1) United States 2,838 3,746 (24 %) 5,878 7,416 (21 %) Canada 2,107 2,130 (1 %) 6,361 6,504 (2 %) 4,945 5,876 (16 %) 12,239 13,920 (12 %) Industry land rig count (2) United States 556 583 (5 %) 564 593 (5 %) Canada 138 139 (1 %) 172 168 2 % Average revenues per operating day (1) United States $ 28,918 $ 26,447 9 % $ 27,847 $ 27,728 — % Canada $ 14,211 $ 14,661 (3 %) $ 13,156 $ 13,780 (5 %) $ 22,651 $ 22,174 2 % $ 20,211 $ 21,211 (5 %) Net lost-in-hole equipment reimbursements (3) $ 6,841 $ 4,742 44 % $ 7,957 $ 15,388 (100 %) Summary The Company improved gross margin and Adjusted gross margin percentages (1) despite a 16% and 12% decline in the Company's operating days in 2025 Q2 and the six months ended June 30, 2025, compared to prior periods, respectively. The decline in operating days was offset by increased lost-in-hole revenues (1) in 2025 Q2. There was a significant reduction of lost-in-hole revenues (1) in 2025 Q1 contributing significantly to the decline in the Company's revenues in the six months ended June 30, 2025, compared to the prior period. The Company has improved the resiliency of gross margins through replacement of third-party rental equipment with owned equipment, primarily focused on Rime MWD systems. Typically, decreased revenue of 14% and 16% in 2025 Q2 and the six months ended June 30, 2025, respectively, would result in the Company's fixed components of direct costs negatively impacting margin percentages. SEGMENTED INFORMATION United States Revenues U.S. revenues were $82.1 million in 2025 Q2, a decrease of $17.0 million or 17%, compared to $99.1 million in 2024 Q2. The Company experienced a 24% decrease in operating days in 2025 Q2 (2025 - 2,838 days; 2024 - 3,746 days). The Company's activity declines exceeded the 5% decrease in the average U.S. land rig count mainly as a result of consolidation by some of the Company's customers. In addition, the Company felt the impact of the increasingly competitive U.S. market given the general market uncertainty contributing to commodity price volatility. The average revenues per operating day (2) increased 9% in 2025 Q2 (2025 - $28,918 per day; 2024 - $26,447 per day). The increase in average revenues per operating day (2) is mainly due to higher lost-in-hole revenues (1). U.S. revenues were $163.7 million in the six months ended June 30, 2025, a decrease of $41.9 million or 20%, compared to $205.6 million for the same period in 2024. The Company experienced a 21% decrease in operating days in the six months ended June 30, 2025 (2025 - 5,878 days; 2024 - 7,416 days). The Company's activity declines exceeded the 5% decrease in the average U.S. land rig count mainly as a result of consolidation by some of the Company's customers. In addition, the Company felt the impact of the increasingly competitive U.S. market given the general market uncertainty contributing to commodity price volatility. The average revenues per operating day (2) relatively consistent in the six months ended June 30, 2025 (2025 - $27,847 per day; 2024 - $27,728 per day). The unusually low lost-in-hole revenues (1) the Company experienced in 2025 Q1 was partially offset by higher lost-in-hole revenues (1) in 2025 Q2, although lost-in-hole revenues (1) remained lower in the six months ended June 30, 2025, compared to the same period in 2024. Lost-in-hole activity has historically been relatively consistent as a percentage of operating revenues. Direct costs U.S. direct costs included in cost of sales were $58.1 million in 2025 Q2, a decrease of $16.4 million or 22%, compared to $74.5 million in 2024 Q2. The decrease is mainly due to lower MWD third-party rental costs, resulting from the Rime MWD build-out and lower labour and repair costs related to lower activity and cost reduction initiatives in 2025 Q2. As a result, direct costs as a percentage of revenues were 71% in 2025 Q2, compared to 75% in 2024 Q2. In addition, direct costs as a percentage of revenues were lower due to higher lost-in-hole revenues (1) in 2025 Q2. U.S. direct costs included in cost of sales were $120.2 million in the six months ended June 30, 2025, a decrease of $35.0 million or 23%, compared to $155.2 million for the same period in 2024. The decrease is mainly due to lower MWD third-party rental costs, resulting from the Rime MWD build-out and lower labour and repair costs related to lower activity and cost reduction initiatives in the six months ended June 30, 2025. As a result, direct costs as a percentage of revenues were 73% in the six months ended June 30, 2025, compared to 75% for the same period in 2024. Lower direct costs as a percentage of revenues were offset by the effect of lower lost-in-hole revenues (1) in the six months ended June 30, 2025, compared to the same period in 2024. Canadian Revenues Canadian revenues were $29.9 million in 2025 Q2, a decrease of $1.3 million or 4%, compared to $31.2 million in 2024 Q2, with the decline primarily attributable to lower lost-in-hole revenues (1), as activity was consistent with 2024 Q2. The average revenues per operating day (2) decreased 3% in 2025 Q2 (2025 - $14,211 per day; 2024 - $14,661 per day). The decrease in the average revenues per operating day (2) is mainly attributed to lower lost-in-hole revenues (1). Canadian revenues were $83.7 million in the six months ended June 30, 2025, a decrease of $5.9 million or 7%, compared to $89.6 million for the same period in 2024, with the decline primarily attributable to lower lost-in-hole revenues (1) and a 2% decrease in operating days in the six months ended June 30, 2025 (2025 - 6,361 days; 2024 - 6,504 days). Despite an increase in the Western Canada average land rig count of 2%, ACT had a slight decline in activity during the six months ended June 30, 2025, relative to the comparative period, primarily attributable to lower activity in oil plays where ACT is more prevalent. The average revenues per operating day (2) decreased 5% in the six months ended June 30, 2025 (2025 - $13,156 per day; 2024 - $13,780 per day). The decrease in the average revenues per operating day (2) is mainly attributed to lower lost-in-hole revenues (1). In the six months ended June 30, 2025, the Company experienced an unusually low rate of lost-in-hole activity compared to the same period in 2024 ($7.3 million), which was conversely unusually high. Over longer periods of time, lost-in-hole activity has historically been relatively consistent as a percentage of operating revenues. Direct costs Canadian direct costs included in cost of sales were $21.5 million in 2025 Q2, a decrease of $0.2 million or 1%, compared to $21.7 million in 2024 Q2. The decrease is mainly due to lower repair costs in 2025 Q2 as a result of lower activity, offset by higher labour and third-party rental costs related to deployment of new RSS tools. As a percentage of revenues, direct costs were 72% in 2025 Q2, compared to 70% in 2024 Q2. The effect of lower lost-in-hole revenues (1) in 2025 Q2, relative to 2024 Q2, is the primary factor in direct costs being higher as a percentage of revenues in 2025 Q2. Canadian direct costs included in cost of sales were $57.2 million in the six months ended June 30, 2025, a decrease of $0.8 million or 1%, compared to $58.0 million for the same period in 2024. The decrease is mainly due to lower repair costs in the six months ended June 30, 2025 as a result of lower activity, offset by higher labour and third-party rental costs related to RSS tools. As a percentage of revenues, direct costs were 68% in the six months ended June 30, 2025, compared to 65% for the same period in 2024. The effect of minimal lost-in-hole revenues (1) in the six months ended June 30, 2025, compared to the same period in 2024, is the primary factor in direct costs being higher as a percentage of revenues. CONSOLIDATED Revenues The Company recognized $112.0 million of revenues in 2025 Q2, a decrease of $18.3 million or 14%, compared to $130.3 million in 2024 Q2. The decrease is due to a 16% decrease in operating days (2025 - 4,945 days; 2024 - 5,876 days). The decrease was offset by a 2% increase in the average revenues per operating day (1) resulting from higher lost-in-hole revenues (1) compared to 2024 Q2 (2025 - $22,651; 2024 - $22,174). The Company recognized $247.4 million of revenues in the six months ended June 30, 2025, a decrease of $47.9 million or 16%, compared to $295.3 million for the same period in 2024. The decrease is due to a 12% decrease in operating days (2025 - 12,239 days; 2024 - 13,920 days), and a 5% decrease in the average revenues per operating day (1) resulting from very low levels of lost-in-hole revenue (1) in the six months ended June 30, 2025 (2025 - $20,211; 2024 - $21,211). Direct Costs The Company recognized $79.6 million of direct costs in 2025 Q2, a decrease of $16.7 million or 17%, compared to $96.2 million in 2024 Q2. The decrease is mainly due to lower labour and repair costs related to the decrease in operating days and cost reduction initiatives, and lower third-party MWD rental costs mainly related to the Rime MWD build-out. The Company recognized $177.4 million of direct costs in the six months ended June 30, 2025, a decrease of $35.7 million or 17%, compared to $213.2 million for the same period in 2024. The decrease is mainly due to lower labour and repair costs related to the decrease in operating days, and lower third-party MWD rental costs mainly related to the Rime MWD build-out. Direct costs as a percentage of revenues decreased to 71% in 2025 Q2, compared to 74% in 2024 Q2. Lost-in-hole revenues (1) was higher in 2025 Q2, relative to the comparative period, and since lost-in-hole activity typically has little to no related costs, direct costs as a percentage of revenue was lower in 2025 Q2 compared to 2024 Q2. Direct costs as a percentage of revenues remained consistent at 72% for the six months ended June 30, 2025 and 2024. Gross margin and Adjusted gross margin The gross margin percentage was 22% in 2025 Q2, compared to 21% in 2024 Q2. The gross margin percentage was consistent at 22% in the six months ended June 30, 2025 and 2024. The Adjusted gross margin percentage (1) increased to 29% in 2025 Q2, compared to 26% in 2024 Q2. The adjusted gross margin percentage was consistent at 28% in the six months ended June 30, 2025 and 2024. Despite a 14% and 16% decrease in revenues in 2025 Q2 and the six months ended June 30, 2025, respectively, the gross margin percentage and Adjusted gross margin percentage were relatively consistent. The Company remains focused on reducing third-party MWD rental costs by investing capital to build out its MWD fleet. Depreciation and amortization expense Depreciation and amortization expense included in cost of sales increased to $7.4 million in 2025 Q2, compared to $6.2 million in 2024 Q2 mainly due to a higher portion of the MWD build-out being depreciated. Depreciation and amortization expense included in cost of sales decreased to $14.8 million in the six months ended June 30, 2025, compared to $17.8 million for the same period in 2024. The decrease is mainly due to a change in depreciation methodology affecting the prior period. Selling, general and administrative ("SG&A") expenses The Company recognized direct costs included in SG&A expenses of $14.9 million and $31.4 million in 2025 Q2 and the six months ended June 30, 2025, compared to $14.8 million and $30.8 million for the same periods in 2024, respectively. The increase is mainly related to the effects of foreign currency translation of U.S. overhead costs and other minor increases. As a result of SG&A being more fixed cost in nature against lower revenues, direct costs included in SG&A expenses as a percentage of revenues were 13% in 2025 Q2 and the six months ended June 30, 2025, compared to 11% and 10% for the same periods in 2024, respectively. Depreciation and amortization included in SG&A expenses were $2.7 million and $5.6 million in 2025 Q2 and the six months ended June 30, 2025, compared to $2.5 million and $4.8 million for the same periods in 2024, respectively. The increases are mainly due to amortization expense associated with RSS licenses acquired in the latter part of 2024. Stock-based compensation included in SG&A expenses were $1.0 million and $1.5 million in 2025 Q2 and the six months ended June 30, 2025, compared to $0.7 million and $1.6 million for the same periods in 2024, respectively. The decrease is mainly due to certain stock options being fully vested in 2024, offset by the impact of the restricted shares granted in the period. Provision In 2025 Q2, the Company received additional information related to a historical sales and use tax audit period. As a result, the Company has recognized an additional provision of $4.8 million. As at June 30, 2025, the Company has accrued a total provision of $12.0 million related to the post-closing period related to the acquisition of Altitude in July 2022. In relation to a pre-closing sales tax issue related to the July 14, 2022 acquisition of Altitude, as a result of a preliminary assessment, the Company has recognized a provision of $14.7 million in Trade and other payables. Pursuant to the Equity Purchase Agreement related to the Altitude acquisition, the sellers provided the Company with an indemnity related to pre-closing tax issues, including the sales tax issue noted. Accordingly, the Company has recognized an offsetting indemnity receivable of $14.7 million in Other receivable. This assessment relies on estimates and assumptions and may involve a series of judgements about future events. New information may become available that causes the Company to change its judgement regarding the adequacy of this provision. The Company recognized R&D costs of $1.2 million and $2.6 million in 2025 Q2 and the six months ended June 30, 2025, compared to $1.6 million and $2.8 million for the same periods in 2024, respectively. R&D costs are salaries, benefits, purchased materials and shop supply costs related to new product development and technology and sustaining engineering. Write-off of property, plant and equipment The Company recognized a write-off of property, plant and equipment of $1.2 million and $1.4 million in 2025 Q2 and the six months ended June 30, 2025, compared to $0.6 million and $2.2 million for the same periods in 2024, respectively. The write-offs related to equipment lost-in-hole and damaged beyond repair. Lost-in-hole equipment and damaged beyond repair reimbursements from customers are based on service agreements held with clients and are recognized as revenues. Finance costs Finance costs - loans and borrowings and exchangeable promissory notes were $1.3 million, a decrease of $1.1 million, compared to $2.4 million in 2024 Q2. Finance costs - loans and borrowings and exchangeable promissory notes were $3.5 million in the six months ended June 30, 2025, a decrease of $1.4 million, compared to $4.9 million for the same period in 2024. The decrease is mainly due to a lower outstanding balance of loans and borrowings in 2025 Q2 compared to 2024 Q2 and a lower interest rate as a result of the Company's refinancing completed in 2025 Q1 (refer to the 'Syndicated and revolving credit facilities' section of this news release). In addition, the Company had finance costs - lease liabilities of $0.3 million and $0.5 million in 2025 Q2 and the six months ended June 30, 2025, related to lease liabilities, compared to $0.2 million and $0.4 million for the same periods in 2024, respectively. Foreign exchange The Company recognized a foreign exchange loss of $6.6 million and $6.8 million in 2025 Q2 and the six months ended June 30, 2025, compared to a foreign exchange gain of $1.1 million and $3.0 million for the same periods, respectively, due to the impact of a 6% decrease in the Canadian dollar exchange rate from $1.44 at March 31, 2025 to $1.36 at June 30, 2025 on the revaluation of the Company's USD denominated balances (2025 Q2 - foreign exchange gain of $1.1 million) and intercompany loans issued by the parent company to its self-sustaining foreign subsidiaries (2025 Q2 - foreign exchange loss of $7.7 million). The offsetting foreign exchange gain on intercompany loans held by the subsidiaries is recognized as part of the translation of foreign operations within other comprehensive income, as described below. The Company's foreign operations are denominated in USD and differences due to fluctuations in the foreign currency exchange rates are recorded in other comprehensive income. The Company recognized a foreign currency translation loss on foreign operations of $4.0 million in 2025 Q2, compared to a gain of $0.7 million in 2024 Q2. The Company recognized a foreign currency translation loss of $4.1 million in the six months ended June 30, 2025, compared to a gain of $2.2 million for the same period in 2024. Income tax expense (recovery) The Company recognized an income tax expense of $1.0 million and an income tax recovery of $0.2 million in 2025 Q2 and the six months ended June 30, 2025, compared to an income tax expense of $1.1 million and $2.8 million for the same periods in 2024, respectively. Income tax expense (recovery) is recognized based upon expected annualized rates using the statutory rates of 23% for both Canada and the U.S. adjusted for key items that will effect the Company's actual tax for the period. LIQUIDITY AND CAPITAL RESOURCES Annually, the Company's principal source of liquidity is cash generated from its operations. In addition, the Company has the ability to fund liquidity requirements through its credit facility and the issuance of additional debt and/or equity, if available. In order to facilitate the management of its liquidity, the Company prepares an annual budget, which is updated, as necessary, depending on varying factors, including changes in capital structure, execution of the Company's business plan and general industry conditions. The annual budget is approved by the Board of Directors and updated forecasts are prepared as the fiscal year progresses with changes reviewed by the Board of Directors. Cash flow - operating activities was $26.0 million and $44.7 million in 2025 Q2 and the six months ended June 30, 2025, compared to $34.1 million and $49.9 million for the same periods in 2024, respectively. ACT remains focused on reducing its loans and borrowings and generating Free cash flow, as defined in the 'Non-GAAP measures' section of this news release. In addition, the Company will remain opportunistic in executing its NCIB and making strategic and accretive acquisitions. At June 30, 2025, the Company had working capital, excluding current portion of loans and borrowings of $73.7 million (December 31, 2024 - $84.4 million). Common share consolidation On May 9, 2024, the shareholders of the Company approved the consolidation of the issued and outstanding common shares of the Company, on the basis of one post-consolidation common share for a range of five to ten pre-consolidation common shares. On June 10, 2024, the Board of Directors approved a consolidation ratio of one post-consolidation share for seven pre-consolidation common shares (the "Consolidation"). As a result, on July 3, 2024, 243,383,392 common shares issued and outstanding prior to the Consolidation were reduced to 34,769,056 common shares. No fractional common shares were issued in connection with the Consolidation, and all fractional common shares that otherwise would have been issued was rounded to the nearest whole common share. The number of shares and per share amounts in this news release were restated to reflect the Consolidation. Normal course issuer bid During the six months ended June 30, 2025, 1,110,858 (2024 - 353,100) common shares were purchased under the NCIB for a total purchase amount of $6.3 million (2024 - $2.1 million) at an average price of $5.69 (2024 - $5.89) per common share. A portion of the purchase amount reduced share capital by $6.0 million (2024 - $2.0 million) and the residual purchase amount of $0.3 million (2024 - $0.1 million) was recorded to the surplus. On August 7, 2025, the Company received approval from the TSX to purchase up to 2,034,285 common shares of the Company, or 10% of the 20,342,855 issued and outstanding common shares of the Company under the NCIB. The ability to purchase common shares under the NCIB will commence on August 11, 2025, and will terminate no later than August 10, 2026. The actual number of common shares under the NCIB, the timing of purchases and the price at which the common shares are purchased will be subject to management's discretion. Syndicated and revolving credit facilities On March 21, 2025, the Company entered into a Fifth Amended and Restated Credit Agreement with its existing syndicate of lenders co-lead by ATB Financial and Royal Bank of Canada ("Amended Credit Agreement"). The Amended Credit Agreement provided for the following: i. A revolving facility with an approximate principal amount of $124.3 million comprised of: i) $100.0 million Syndicated Revolving Facility ("CAD Syndicated Revolving Facility") and ii) $10.0 million revolving facility provided by ATB Financial ("ATB Revolving Facility"), and iii) USD $10.0 million (approximately CAD $14.3 million equivalent) provided by HSBC Bank USA, N.A. ("HSBC Revolving Facility"). The revolving facility replaced the Company's existing facilities (CAD Syndicated Term Facility of $59.0 million, USD Syndicated Term Facility of USD $21.0 million, Syndicated Operating Facility of $35.0 million, Revolving Operating Facility of $15.0 million and USD Revolving Operating Facility of $10.0 million). As such, the contractual repayments of the CAD Syndicated Term Facility and USD Syndicated Term Facility are no longer required; ii. A lower amended interest rate updated to the financial institution's prime rate plus 1.0% to 1.75% or Canadian Overnight Repo Rate Average rate / Secured Overnight Financing Rate plus 2.0% to 2.75% (previously prime rate plus 1.5% to 2.25% or Canadian Overnight Repo Rate Average rate / Secured Overnight Financing Rate plus 2.5% to 3.25%); iii. The maturity date extended from July 11, 2026 to March 21, 2028; iv. Replaced the financial covenant of Consolidated Fixed Charge Coverage ratio (previously required to be no less than 1.25:1) with a Consolidated Interest Coverage Ratio, which is required to be no less than 3.0:1. The Consolidated Funded Debt to Consolidated Credit Agreement EBITDA ratio remained unchanged and shall not exceed 2.5:1; and v. The syndicate of lenders remained unchanged with the exception of Royal Bank of Canada joining ATB Financial as the syndicate co-lead. As at June 30, 2025, $62.2 million of the $123.6 million Revolving Facility remained undrawn. Subsequent to June 30, 2025, the Company repaid $6.6 million of its CAD Syndicated Revolving Facility. At June 30, 2025, the Company was in compliance with all covenants, including its financial covenants, which were as follows: Consolidated Funded Debt to Consolidated Credit Agreement EBITDA ratio shall not exceed 2.5:1.0 (calculated - 1.0); and Consolidated Interest Coverage ratio shall not be less than 3.0 :1.0 (calculated - 10.8). Contractual obligations and contingencies As at June 30, 2025, the Company's commitment to capital is approximately $7.8 million (December 31, 2024 - $11.9 million), which is expected to be incurred over the next six months. The Company holds six letters of credit totaling $1.7 million (December 31, 2024 - $1.8 million) related to rent payments, corporate credit cards and a utilities deposit. The Company is involved in various other legal claims and tax audits associated with the normal course of operations. The Company believes that any liabilities that may arise pertaining to such matters would not have a material impact on its financial position. Refer to the 'Provision' section in this news release for more details. The following table outlines the anticipated payments related to contractual commitments subsequent to June 30, 2025: (stated in thousands of Canadian dollars) Carrying amount One year 1-2 years 3-5 years Thereafter Loans and borrowings - principal $ 62,712 $ 657 $ — $ 62,055 $ — Exchangeable promissory ("EP") notes - principal 27,286 — 27,286 — — Interest payments on loans and borrowings and EP notes 14,043 6,056 4,719 3,268 — Lease liabilities - undiscounted 20,065 3,862 3,597 7,814 4,792 Trade and other payables 99,797 99,797 — — — Total $ 223,903 $ 110,372 $ 35,602 $ 73,137 $ 4,792 Capital structure As at August 8, 2025, the Company has 33,934,977 common shares, 2,618,958 stock options, and EP Notes, that are exchangeable into a maximum of 3,510,000 common shares outstanding. NET CAPITAL EXPENDITURES The following table details the Company's Net capital expenditures (1): Three months ended June 30, Six months ended June 30, (stated in thousands of Canadian dollars) 2025 2024 2025 2024 MWD and related equipment $ 2,345 $ 6,308 $ 17,200 $ 14,219 Motors and related equipment 3,271 6,738 11,256 13,944 Shop and automotive equipment 859 149 915 382 Other 879 869 1,532 1,438 Gross capital expenditures 7,354 14,064 30,903 29,983 Less: net lost-in-hole equipment reimbursements (6,841) (4,742) (7,958) (15,388) Net capital expenditures (1) $ 513 $ 9,322 $ 22,945 $ 14,595 (1) Refer to the 'Non-GAAP Measures' section in this news release. Equipment additions totaling $30.9 million included $7.6 million of items previously purchased and held in inventory for the Rime MWD system build-out in 2025 Q1. As at June 30, 2025, property, plant and equipment included $14.3 million (2024 - $12.4 million) of MWD equipment not yet being depreciated as they are currently being manufactured and tested. Depreciation of the assets will commence upon the assets being fully operational. Given the current market uncertainty, partly as a result of the enacted and proposed U.S. tariffs, the Company's 2025 Net capital expenditure budget will be dynamic and adjusted to reflect management's expectation of future activity levels. Currently, the Company's target Net capital expenditures (1) budget is anticipated to relate to necessary sustaining capital expenditures that will enhance realized gross margin percentage levels, including growing ACT's high-performance mud motors, MWD in both Canada and the U.S., and selective RSS deployments. ACT intends to fund its 2025 capital plan from cash flow - operating activities. NON-GAAP MEASURES ACT uses certain performance measures throughout this news release that are not defined under IFRS Accounting Standards or Generally Accepted Accounting Principles ("GAAP"). These non-GAAP measures do not have a standardized meaning and may differ from that of other organizations, and accordingly, may not be comparable. Investors should be cautioned that these measures should not be construed as alternatives to IFRS Accounting Standards measures as an indicator of ACT's performance. These measures include the Adjusted gross margin, Adjusted gross margin percentage, Adjusted EBITDAS, Adjusted EBITDAS margin percentage, Free cash flow, Working capital and Net capital expenditures. Management believes these measures provide supplemental financial information that is useful in the evaluation of ACT's operations. These non-GAAP measures are defined as follows: i) "Adjusted gross margin" - calculated as gross margin before non-cash costs (write-down of inventory included in cost of sales, depreciation and amortization and share-based compensation); is a supplemental measure of changes in financial performance that are closely related to the Company's core operating activities, by excluding certain non-cash costs that might otherwise distort trends in overall profitability (see tabular calculation); ii) "Adjusted gross margin percentage" - calculated as Adjusted gross margin divided by revenues; is considered a primary indicator of operating performance (see tabular calculation); iii) "Adjusted EBITDAS" - calculated as net income before finance costs, unrealized foreign exchange gain (loss), foreign exchange gain (loss) on intercompany balances, income tax expense, depreciation and amortization, gain on settlement of lease liabilities, non-recurring costs, write-down of inventory included in cost of sales and equity-settled share-based compensation; provides supplemental information to net income that is useful in evaluating the results from our principal business activities prior to consideration of how our activities are financed, foreign exchange components and other charges like depreciation (see tabular calculation); iv) "Adjusted EBITDAS margin percentage" - calculated as Adjusted EBITDAS divided by revenues; provides supplemental information to net income that is useful in evaluating the results and financing of the Company's business activities before considering certain charges as a percentage of revenues (see tabular calculation); v) "Free cash flow" - calculated as cash flow - operating activities prior to: i) changes in non-cash working capital, ii) and income tax (refund) payment less: i) cash flow - investing activities (updated from property, plant and equipment ("PP&E") and intangible asset additions, excluding assets acquired in business combinations), ii) required repayments on loans and borrowings, in accordance with the Company's credit facility agreement, and iii) repayments of lease liabilities, net of finance costs, offset by proceeds on disposal of PP&E. This is a useful supplemental measure of the Company's ability to generate funds from operations available for future capital expenditures, discretionary debt repayments, or other strategic initiatives (see tabular calculation). Free cash flow was updated from prior periods to deduct cash flow - investing activities (updated from PP&E and intangible asset additions, excluding assets acquired in business combinations) to include changes in non-cash investing working capital in the calculation to account for non-cash movements in the period; vi) "Net capital expenditures" - calculated as the gross capital expenditures less net lost-in-hole equipment reimbursements, as defined below - refer to the "Net capital expenditures" section of this news release for tabular calculation; 1. "Lost-in-hole revenues" - represent reimbursements received from customers and insurance proceeds related to directional drilling equipment that is lost in-hole or damaged beyond repair. Management considers lost-in-hole revenues to be supplemental information that assists in understanding fluctuations in the Company's reported revenues under IFRS Accounting Standards. Although lost-in-hole revenues tend to remain relatively consistent over longer periods, they can vary significantly from period to period, causing fluctuations in the Company's financial results; 2. "Net lost-in-hole equipment reimbursements" - represent lost-in-hole revenues, as defined above, less outflows associated with vendor payments for insurance coverage and third-party rental equipment replacement, following equipment loss-in-hole or damage beyond repair; and vii) "Working capital" - calculated as current assets less current liabilities, excluding the current portion of loans and borrowings. Management uses this measure as an indication of the Company's financial and cash liquidity position. The following tables provide reconciliations from the IFRS Accounting Standards to non-GAAP measures included in this news release. Adjusted gross margin Adjusted EBITDAS Three months ended June 30, Six months ended June 30, (stated in thousands of Canadian dollars, except percentages) 2025 2024 2025 2024 Net (loss) income $ (9,959) $ 5,259 $ (2,711) $ 16,840 Add (deduct): Income tax expense (recovery) 984 1,148 (211) 2,813 Depreciation and amortization - cost of sales 7,448 6,180 14,796 17,815 Depreciation and amortization - selling, general and administrative expenses 2,730 2,462 5,556 4,809 Equity settled share-based compensation - cost of sales 129 169 260 392 Equity settled share-based compensation - selling, general and administrative expenses 536 719 1,077 1,649 Finance costs - loans and borrowings and exchangeable promissory notes 1,284 2,419 3,519 4,884 Finance costs - lease liabilities 260 201 541 406 Unrealized foreign exchange loss (gain) 6,527 (1,339) 6,811 (3,648) Provision 4,846 — 4,846 — Gain on settlement of lease liabilities — (391) — (391) Non-recurring expenses, including inventory write-off 39 478 39 485 Adjusted EBITDAS $ 14,824 $ 17,305 $ 34,523 $ 46,054 Adjusted EBITDAS margin percentage 13 % 13 % 14 % 16 % Free cash flow Three months ended June 30, Six months ended June 30, (stated in thousands of Canadian dollars) 2025 2024 2025 2024 Cash flow - operating activities $ 26,029 $ 34,123 $ 44,714 $ 49,866 Add (deduct): Income tax payment 439 3,633 384 3,793 Changes in non-cash operating working capital (10,183) (20,282) (9,092) (5,801) Less: Cash flow - investing activities (12,588) (13,192) (23,397) (31,320) Required repayments on loans and borrowings (1) — (5,164) — (10,313) Repayments of lease liabilities, net of finance costs (971) (917) (2,008) (1,816) Free cash flow (deficit) $ 2,726 $ (1,799) $ 10,601 $ 4,409 (1) Required repayments on loans and borrowings in accordance with the credit facility agreement, which excludes discretionary debt repayments. SUPPLEMENTARY FINANCIAL MEASURES AND OTHER DEFINITIONS i) "Average revenues per operating day" - is a supplemental operational metric calculated by dividing revenues, either for a specific geographic segment or on a consolidated basis as reported under IFRS Accounting Standards, by the corresponding number of operating days for that segment or on a consolidated basis. Management uses revenues per operating day to assess pricing strength, service intensity, and comparative financial performance against different periods and across different geographic markets; ii) "Job count" - sometimes referred to as daily jobs, refers to the number of drilling rigs our directional equipment is available for operation on those specific drilling rigs; iii) "MWD" - Measurement-while-drilling is a down-hole tool used in oil, natural gas and geothermal wells that provides real-time drilling data to the directional driller enabling more precise placement and optimized drilling operations. iv) "Operating days" - are defined as the total number of calendar days during which directional drilling services were actively provided to a customer at a rig site, excluding any days where personnel or equipment were on location but not engaged in active drilling operations (such as standby, rig move days, or other non-operational periods, regardless of whether partial revenues were recognized); and COMMON INDUSTRY TERMS i) "LNG" - natural gas is typically is transported via pipeline with customer demand limited to regions with access to these pipelines. Through liquefaction, larger volumes of natural gas can be economically exported by sea to new markets; ii) "RSS" - Rotary steerable system which is a high-technological drilling tool that simultaneously steers and rotates the drill bit without manual intervention enabling for more accurate drilling, especially in curved or horizontal wells. FORWARD LOOKING STATEMENTS This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words suggesting future outcomes. In particular, this news release contains forward-looking statements relating to, among other things: The 2025 Net capital expenditure budget and financing thereof; Given the current market uncertainty, partly as a result of the enacted and proposed U.S. tariffs, the Company's 2025 Net capital expenditure budget will be dynamic and adjusted to reflect management's expectation of future activity levels. ACT retains a strong market position in regions that have some of the best economic return levels, which, combined with its extensive experience and leading technology offering, is ideally suited for the growing number and length of wells drilled in the multi-lateral oil plays. ACT remains committed to returning capital to its shareholders. During the second quarter, ACT completed its 2024 / 2025 NCIB program, maxing out our available repurchases. ACT is renewing a program and will continue to utilize this program as a lever for returning capital to our shareholders. ACT remains committed to delivering ultra-high-performance directional drilling and related down-hole services, leveraging our proprietary technologies and experienced team. This focus will allow us to deliver value to our shareholders through the cycles. To maximize returns, we continue to expect allocating capital as follows: Margin expansion: utilize selective capital investment, primarily rotary steerable systems ("RSS") and MWD to replace rental equipment with in-house, next-generation technology solutions. Return of capital: repurchase shares through the Company's NCIB. Further strengthen our financial position: although debt remains low, continue to reduce leverage, which allows for business resiliency through the cycles and optionality to pursue a counter-cyclical, long-term investment strategy. By having this diverse approach to capital allocation, ACT believed it will continue to build an increasingly durable business model, one that optimizes investment returns over the long term. Currently, the Company's target Net capital expenditures budget is anticipated to relate to necessary sustaining capital expenditures that will enhance realized gross margin percentage levels, including growing ACT's high-performance mud motors, MWD in both Canada and the U.S., and selective RSS deployments. ACT intends to fund its 2025 capital plan from cash flow - operating activities. General uncertainty related to commodity prices, trade, and potential tariffs, are resulting in restrained levels of drilling activity and a more cautious spending environment. Despite the cautious environment, Canadian activity levels appear to be somewhat resilient and the rig count in the U.S. seems to be nearing a bottom, with some potential for increases in the back half of this year. ACT remains positive on the longer-term outlook for energy fundamentals due to general economic growth, increasing demand from emerging economies, and significant opportunities related to growth in power demand. In Canada, stronger customer balance sheets, reasonably constructive commodity price levels, and additional takeaway capacity for both oil and gas continue to support consistent levels of drilling activity. The first LNG Canada natural gas volumes have now shipped from Kitimat, British Columbia and the expansion of the Trans Mountain Pipeline supports heavy oil production, both of which should be positive for drilling activity in the long term. ACT's Canadian job count is in the low-50 job count range supported by our strong presence in multi-lateral drilling markets. Given relatively strong drilling economics for multi-lateral drilling projects, activity levels are anticipated to be resilient in these areas with continued plans for growth though this cycle and into the future. ACT expects its Canadian activity levels to be similar or slightly less than 2024 levels of activity as some of its customers have deferred spending plans to later this year due to market uncertainty. At the end of 2025 Q2, the Company saw improved U.S gross margins by the reduction of third-party rental costs by utilizing Rime supplied MWD systems. Further durability of gross margins is expected as more MWD systems are deployed. To date, twenty-nine Rime MWD systems have been deployed with an additional twenty-one MWD systems expected to be deployed by the end of 2025 Q3. A substantial majority of the inventory required to build-out these systems was spent in 2024, with minimal purchases required in 2025. The Company remains focused on reducing third-party MWD rental costs by investing capital to build out its MWD fleet. Increasing the penetration of this next-generation technology with the ACT's clients is expected to grow U.S. operating margins by lowering third-party MWD rental costs. ACT expects to build on the initial success of the product rollout thus far and continue to increase levels of customer adoption through the back half of this year and into next year. Rig counts in the U.S. appear to be approaching a bottom as improved year-over-year natural gas prices are expected to result in increased gas rig counts in the back half of this year. Ongoing major additions to U.S. LNG export capacity in the coming two to three years and extreme growth in data center build-out should motivate continued strength in U.S. natural gas demand, pricing and gas drilling levels. ACT remains bullish on longer-term global energy demand and believes that pursuing strong directional drilling market positions in the both the U.S. and Canada remains the best way to capture this opportunity. The Company believes the expectations reflected in such forward-looking statements are reasonable as of the date hereof but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Various material factors and assumptions are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Those material factors and assumptions are based on information currently available to the Company, including information obtained from third-party industry analysts and other third-party sources. In some instances, material assumptions and material factors are presented elsewhere in this news release in connection with the forward-looking statements. You are cautioned that the following list of material factors and assumptions is not exhaustive. Specific material factors and assumptions include, but are not limited to: the performance of ACT's business; impact of economic and social trends; oil and natural gas commodity prices and production levels; capital expenditure programs and other expenditures by ACT and its customers; the ability of ACT to attract and retain key management personnel; the ability of ACT to retain and hire qualified personnel; the ability of ACT to obtain parts, consumables, equipment, technology, and supplies in a timely manner to carry out its activities; the ability of ACT to maintain good working relationships with key suppliers; the ability of ACT to retain customers, market its services successfully to existing and new customers and reliance on major customers; risks associated with technology development and intellectual property rights; obsolescence of ACT's equipment and/or technology; the ability of ACT to maintain safety performance; the ability of ACT to obtain adequate and timely financing on acceptable terms; the ability of ACT to comply with the terms and conditions of its credit facility; the ability to obtain sufficient insurance coverage to mitigate operational risks; currency exchange and interest rates; risks associated with future foreign operations; the ability of ACT to integrate its transactions and the benefits of any acquisitions, dispositions and business development efforts; environmental risks; business risks resulting from weather, disasters and related to information technology; changes under governmental regulatory regimes including tariffs and tax, environmental, climate and other laws in Canada and the U.S.; and competitive risks. Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause the Company's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the risks identified in this news release and in the Company's Annual Information Form under the heading "Risk Factors". Any forward-looking statements are made as of the date hereof and, except as required by law, the Company assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise. All forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Further information about the factors affecting forward-looking statements is available in the Company's current Annual Information Form that has been filed with Canadian provincial securities commissions and is available on and the Company's website ( As at June 30, 2025 and December 31, 2024 Canadian dollars in '000s (unaudited) June 30, December 31, Balance, 2025 2024 Assets Current assets: Cash $ 24,048 $ 12,792 Trade receivables 85,430 105,872 Other receivable 14,721 15,526 Current taxes receivable 2,487 2,417 Prepaid expenses 5,185 6,678 Inventories 45,554 51,498 Total current assets 177,425 194,783 Property, plant and equipment 139,798 129,243 Intangible assets 68,443 77,352 Right-of-use assets 15,932 15,359 Goodwill 41,192 43,444 Deferred tax asset 12,700 12,700 Total non-current assets 278,065 278,098 Total assets $ 455,490 $ 472,881 Liabilities and Shareholders' Equity Current liabilities: Trade and other payables $ 99,797 $ 106,242 Loans and borrowings, current 657 21,435 Lease liabilities, current 3,930 4,124 Total current liabilities 104,384 131,801 Loans and borrowings, long-term 61,488 42,092 Exchangeable promissory notes 26,064 26,962 Lease liabilities, long-term 16,135 16,037 Deferred tax liability 13,300 14,409 Total non-current liabilities 116,987 99,500 Total liabilities 221,371 231,301 Shareholders' equity: Share capital 195,123 195,516 Treasury shares (229) (469) Exchangeable promissory notes 1,242 1,242 Contributed surplus 17,024 17,408 Accumulated other comprehensive income 15,027 19,151 Surplus 5,932 8,732 Total shareholders' equity 234,119 241,580 Total liabilities and shareholders' equity $ 455,490 $ 472,881 Three and six months ended June 30, 2025 and 2024 Canadian dollars in '000s except per share amounts (unaudited) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Revenues $ 112,010 $ 130,297 $ 247,367 $ 295,253 Cost of sales: Direct costs (79,559) (96,165) (177,432) (213,173) Depreciation and amortization (7,448) (6,180) (14,796) (17,815) Share-based compensation (129) (169) (260) (392) Total cost of sales (87,136) (102,514) (192,488) (231,380) Gross margin 24,874 27,783 54,879 63,873 Selling, general and administrative expenses: Direct costs (14,937) (14,808) (31,370) (30,834) Depreciation and amortization (2,730) (2,462) (5,556) (4,809) Share-based compensation (968) (719) (1,509) (1,649) Total selling, general and administrative expenses (18,635) (17,989) (38,435) (37,292) Provision (4,846) — (4,846) — Research and development costs (1,220) (1,628) (2,584) (2,831) Write-off of property, plant and equipment (1,207) (613) (1,386) (2,248) Gain on disposal of property, plant and equipment 178 20 335 20 Gain on settlement of lease liabilities — 391 — 391 (Loss) income from operating activities (856) 7,964 7,963 21,913 Finance costs - loans and borrowings and exchangeable promissory notes (1,284) (2,419) (3,519) (4,884) Finance costs - lease liabilities (260) (201) (541) (406) Foreign exchange (loss) gain (6,575) 1,063 (6,825) 3,030 (Loss) income before income taxes (8,975) 6,407 (2,922) 19,653 Income tax (expense) recovery: Current (107) (202) (181) (1,655) Deferred (877) (946) 392 (1,158) Income tax (expense) recovery (984) (1,148) 211 (2,813) Net (loss) income (9,959) 5,259 (2,711) 16,840 Other comprehensive (loss) income Foreign currency translation differences on foreign operations (4,045) 738 (4,124) 2,193 Total comprehensive (loss) income $ (14,004) $ 5,997 $ (6,835) $ 19,033 Net (loss) income per share - basic (restated) $ (0.30) $ 0.15 $ (0.08) $ 0.49 Net (loss) income per share - diluted (restated) $ (0.30) $ 0.14 $ (0.08) $ 0.44 Six months ended June 30, 2025 and 2024 Canadian dollars in '000s (unaudited) Share capital Treasury Shares Exchangeable promissory ("EP") Notes Contributed surplus Accumulated other comprehensive income Deficit Total shareholders' equity Balance, December 31, 2023 $ 197,380 $ (709) $ 1,242 $ 17,002 $ 13,088 $ (48,535) $ 179,468 Comprehensive income — — — — 2,193 16,840 19,033 Repurchased pursuant to normal course issuer bid (2,019) — — — — (58) (2,077) Contributed surplus on treasury shares vesting — 240 — (240) — — — Issued pursuant to stock option exercises 3,645 — — (1,415) — — 2,230 Share-based compensation — — — 2,041 — — 2,041 Balance, June 30, 2024 $ 199,006 $ (469) $ 1,242 $ 17,388 $ 15,281 $ (31,753) $ 200,695 Share capital Treasury shares EP Notes Contributed surplus Accumulated other comprehensive income Surplus Total shareholders' equity Balance, December 31, 2024 $ 195,516 $ (469) $ 1,242 $ 17,408 $ 19,151 $ 8,732 $ 241,580 Comprehensive loss — — — — (4,124) (2,711) (6,835) Repurchased pursuant to normal course issuer bid (6,021) — — — — (303) (6,324) Accrued purchases under the normal course issuer bid 1,854 — — — — 214 2,068 Contributed surplus on treasury shares vested — 240 — (240) — — — Issued pursuant to stock options exercised 3,774 — — (1,483) — — 2,291 Share-based compensation — — — 1,339 — — 1,339 Balance, June 30, 2025 $ 195,123 $ (229) $ 1,242 $ 17,024 $ 15,027 $ 5,932 $ 234,119 Three and six months ended June 30, 2025 and 2024 Canadian dollars in '000s (unaudited) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Cash provided by (used in): Operating activities: Net (loss) income $ (9,959) $ 5,259 $ (2,711) $ 16,840 Non-cash adjustments: Income tax expense 984 1,148 (211) 2,813 Depreciation and amortization 10,178 8,642 20,352 22,624 Share-based compensation 1,097 888 1,769 2,041 Write-off of property, plant and equipment 1,207 613 1,386 2,248 Gain on disposal of property, plant and equipment (178) (20) (335) (20) Gain on settlement of lease liabilities — (391) — (391) Provision 4,846 — 4,846 — Write-down of inventory included in cost of sales 39 54 39 61 Finance costs - loans and borrowings and exchangeable promissory notes 1,284 2,419 3,519 4,884 Finance costs - lease liabilities 260 201 541 406 Income tax payment (439) (3,633) (384) (3,793) Unrealized foreign exchange loss (gain) 6,527 (1,339) 6,811 (3,648) 15,846 13,841 35,622 44,065 Changes in non-cash operating working capital 10,183 20,282 9,092 5,801 Cash flow - operating activities 26,029 34,123 44,714 49,866 Investing activities: Property, plant and equipment additions (7,354) (14,064) (30,903) (29,983) Intangible asset additions (158) (1,892) (346) (6,859) Proceeds on disposal of property, plant and equipment 115 1,533 323 1,533 Changes in non-cash investing working capital (5,191) 1,231 7,529 3,989 Cash flow - investing activities (12,588) (13,192) (23,397) (31,320) Financing activities: Advances of loans and borrowings, net of upfront financing fees — — (335) 10,000 Repayments on loans and borrowings (24) (10,159) (52) (16,868) Payments on lease liabilities, net of finance costs (971) (917) (2,008) (1,816) Interest paid (1,239) (2,316) (3,438) (4,689) Common shares repurchased pursuant to normal course issuer bid 2,083 — (4,255) (2,077) Proceeds on common share issuances, net of issuance costs 2,090 2,007 2,291 2,230 Changes in non-cash financing working capital (3,885) — (2,069) — Cash flow - financing activities (1,946) (11,385) (9,866) (13,220) Effect of exchange rate on changes in cash (396) 481 (195) 935 Change in cash 11,099 10,027 11,256 6,261 Cash, beginning of period 12,949 6,965 12,792 10,731 Cash, end of period $ 24,048 $ 16,992 $ 24,048 $ 16,992 ACT Energy Technologies Ltd., based in Calgary, Alberta, Canada, is incorporated under the Business Corporations Act (Alberta) and operates in the U.S. and Canada under Altitude Energy Partners, Discovery Downhole Services in the U.S., and Rime Downhole Technologies, LLC in the U.S.. ACT's common shares are publicly-traded on the Toronto Stock Exchange under the symbol "ACX". ACT is a trusted partner to North American energy companies requiring high performance directional drilling services and related downhole technologies. We work in partnership with our customers to tailor our equipment and expertise to meet their specific geographical and technical needs. Our experience, technologies and responsive personnel enable our customers to achieve higher efficiencies and lower project costs. For more information, visit • Sustained Adjusted EBITDAS margins (1) despite lower activity and revenues primarily attributable to lower third-party rental costs as a result of the Rime measurement-while-drilling ("MWD") deployment. Adjusted EBITDAS (1) of $14.8 million in 2025 Q2 decreased 14%, compared to $17.3 million in 2024 Q2, attributable to lower revenues, offset by the lower direct costs. • Revenues of $112.0 million in 2025 Q2, a decrease of 14%, compared to $130.3 million in 2024 Q2, with the decline primarily attributable to lower U.S. operating days. SOURCE ACT Energy Technologies LTD.
