Key Highlights

  • Revenue was $265 million, up 8% from the second quarter and up 10% from $240 million a year earlier.
  • Net income was $26 million, or $0.37 per diluted share, against $39 million, or $0.57, in the prior year quarter.
  • Adjusted EBITDA reached $55 million, a 21% margin, compared with $44 million and 18% a year ago.
  • Free Cash Flow was $32 million, and cash stood at $189 million with no bank debt.
  • Fourth quarter Revenue is guided to $260 million to $270 million.

Revenue rises 10% as U.S. Land and subsea activity build

Innovex International (NYSE:INVX) is a Houston-based oilfield technology company formed in 2024 through the Merger of Dril-Quip and Innovex Downhole Solutions. The company announced third quarter 2026 results on October 29, 2026.

Revenue was $265.1 million, up from $244.9 million in the second quarter and $240.0 million in the third quarter of 2025. On a calculated basis, that is growth of about 8.2% sequentially and 10.4% year over year.

Chief Executive Officer Adam Anderson said U.S. Land benefited from increased activity and modest share gains, and that the subsea Backlog continued to grow.

Net income falls against a prior year lifted by an asset sale gain

Net income was $26.3 million, or $0.37 per diluted share, compared with $25.0 million, or $0.36, in the second quarter and $39.2 million, or $0.57, a year earlier. Net Income Margin was 10%, versus 16% in the prior year quarter.

The year-over-year comparison is shaped by one-off items. The third quarter of 2025 included a net gain on asset sales of $40.9 million, while the latest quarter's gain was only $0.1 million. Income from operations was $32.3 million, down from $62.3 million a year earlier,.

Adjusted EBITDA margin climbs to 21%

Adjusted EBITDA was $55.4 million, or 21% of revenue, compared with $48.0 million and 20% in the second quarter and $43.6 million and 18% in the third quarter of 2025. On a calculated basis, that is an increase of roughly 27% from a year ago, well ahead of the 10% revenue gain.

Acquisitions draw cash down to $189 million, with no bank debt

Net cash provided by Operating Activities was $38.8 million, and capital expenditures were $6.4 million, about 2.4% of revenue. Free cash flow was $32.4 million, compared with $36.5 million a year earlier.

The company paid $63.3 million for acquisitions, net of cash acquired, during the quarter. Cash and cash equivalents ended at $188.8 million, down from $222.1 million at June 30, 2026, while Goodwill and net intangibles rose to $288.4 million from $221.3 million.

Debt and finance Lease obligations totaled about $24.1 million on a calculated basis, and the company reported no bank debt. A legal settlement accrual of $53.4 million remains on the balance sheet.

Contract wins and fourth-quarter guidance

Management highlighted a subsea wellhead contract of more than $30 million with a major international operator in Indonesia. It also supported the installation of its 20K psi wellhead system for a major operator offshore in the U.S., and re-entered Venezuela.

Chief Financial Officer Kendal Reed cautioned that project timing and geopolitical uncertainty may create quarter-to-quarter variability.

For the fourth quarter of 2026, the company expects total revenue of $260 million to $270 million and adjusted EBITDA of $53 million to $58 million. A conference call was scheduled for October 30, 2026. Readers will likely watch the subsea conversion into revenue, margin progression and how the cash balance is used.