KLX Energy Services Holdings, Inc. filed its quarterly report on Form 10-Q with the SEC on November 6, 2026, covering the three and nine months ended September 30, 2026, and reporting significant changes to its capital structure alongside continued net losses.

Key Highlights

  • Shares outstanding surged to 105,717,389 as of October 31, 2026, up from approximately 18.9 million at December 31, 2025, primarily driven by an Equity Rights Offering and a Backstop Exchange.
  • Q3 2026 revenue was $185.6 million, compared to $166.7 million in Q3 2025, according to the filing.
  • Net loss for Q3 2026 was $15.5 million, or $(0.68) per basic and diluted share, versus a net loss of $14.3 million, or $(0.74) per share, in Q3 2025.
  • Nine-month net loss totaled $47.9 million, or $(2.29) per basic and diluted share, compared to a net loss of $62.1 million, or $(3.36) per share, for the same period in 2025.
  • Total stockholders' equity turned positive at $0.4 million as of September 30, 2026, compared to a deficit of $(74.2) million at December 31, 2025.
  • Long-term debt declined to $175.5 million from $253.9 million at December 31, 2025, while a loss on debt extinguishment of $3.8 million was recorded in Q3 2026.
  • Interest expense for the nine months was $37.6 million, up from $32.4 million in the comparable prior-year period.

KLX Energy Services Reports Capital Restructuring and Continued Losses Through September 2026

According to the filing, KLX Energy Services Holdings, Inc. (NASDAQ:KLXE) reported revenues of $185.6 million for the three months ended September 30, 2026, an increase from $166.7 million in the same quarter of 2025. For the nine months ended September 30, 2026, revenues were $497.6 million, compared to $479.7 million for the nine months ended September 30, 2025. Cost of sales for the nine-month period was $393.7 million, and depreciation and amortization was $63.6 million, the company disclosed.

The filing reports that Q3 2026 operating income was $1.9 million, compared to an operating loss of $3.0 million in Q3 2025. For the nine months ended September 30, 2026, the operating loss was $8.1 million, an improvement from the $28.2 million operating loss in the same period of 2025. The filing notes a bargain purchase gain of $6.7 million for the nine-month period, which contributed to the reduction in the operating loss. A loss on debt extinguishment, net, of $3.8 million was recorded in Q3 2026, and $3.5 million for the nine months ended September 30, 2026.

A notable development disclosed in the filing was a significant expansion of the company's share count. The issuance of common stock related to an Equity Rights Offering added 25.0 million shares, raising $36.0 million net, while an issuance related to a Backstop Exchange added 59.2 million shares valued at $81.9 million, both occurring in Q3 2026. These transactions, along with warrant exercises, brought total shares to approximately 105.7 million by September 30, 2026, and contributed to total stockholders' equity turning positive at $0.4 million, compared to a deficit of $(74.2) million at year-end 2025. Total assets as of September 30, 2026, were $366.2 million, against total assets of $340.3 million at December 31, 2025.

What Was Disclosed

KLX Energy Services filed its Form 10-Q for the quarter ended September 30, 2026, disclosing continued net losses, a year-over-year revenue increase, a substantial equity raise through a Rights Offering and Backstop Exchange, and a reduction in long-term debt from $253.9 million to $175.5 million.