Financial Analysis

Cactus International Acquisition On June 2, 2025, Cactus Companies, a subsidiary of Cactus, Inc., entered into a Framework Agreement (the Framework Agreement) with Baker Hughes Holdings and Baker Hughes Pressure Control LLC, each of which at such time was an indirect subsidiary of Baker Hughes Company, pursuant to which the Company agreed to acquire Baker Hughes Companys surface pressure control business. Prior to the Closing Date, Baker Hughes Holdings effected certain restructuring transactions on the terms and subject to the conditions set forth in the Framework Agreement (the Restructuring Transactions), as a result the Joint Venture and certain of its subsidiaries came to own the Business Assets and Business Liabilities (each as defined in the Framework Agreement). As part of the Restructuring Transactions, the Joint Venture converted from a Texas limited partnership to a Delaware limited liability company. On the Closing Date, Baker Hughes Holdings and certain of its affiliates sold 65% of the Membership Interests to the Cactus Member, a subsidiary of Cactus Companies, for a cash purchase price of $344.5 million (on a debt-free, and, except as noted below, cash-free basis), subject to certain working capital, cash, debt, capital expenditure and other customary adjustments after the Closing Date (the Purchase Price). The Joint Venture was to retain minimum cash of $70.0 million (the Minimum Cash Amount). In order to compensate Baker Hughes Holdings for the Minimum Cash A …

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Commitments and Contingencies Due to the nature of our business, we are, from time to time, involved in routine litigation or subject to disputes or claims related to our business activities, including workers compensation claims and employment related disputes. A range of total possible losses for all litigation matters cannot be reasonably estimated. Based on our consideration of all relevant facts and circumstances, we do not expect the ultimate outcome of currently pending lawsuits or claims against us, other than as discussed below, will have a material adverse effect on our financial position, results of operations or cash flows, however, there can be no assurance as to the ultimate outcome of these matters. With respect to the litigation described below, if there was an adverse outcome, there could be a material impact on our business, financial condition and results of operations. Litigation is subject to inherent uncertainties and management's view may change in the future. Therefore, there can be no assurance as to the ultimate outcome of any dispute or claim. On August 20, 2021, Cactus filed a complaint against Cameron International Corporation (Cameron) in the U.S. District Court for the Southern District of Texas, Civil Action No.: 4:21-cv-02720-ASH, seeking a declaratory judgment that Cactus frac operations do not infringe certain Cameron patents and that such patents are invalid. In response to that action, Cameron has asserted infringement of certain of those …

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Debt We had no bank debt outstanding as of June 30, 2026 and December 31, 2025. As of June 30, 2026, we had $14.4 million in letters of credit outstanding, $1.3 million of which reduced the borrowing capacity under our Amended and Restated Credit Agreement. The Amended and Restated Credit Agreement was originally entered into on February 28, 2023, by and among Cactus Companies, as borrower, certain subsidiaries of Cactus Companies from time to time party thereto, as guarantors, the lenders party thereto and JPMorgan Chase Bank, N.A., as lender, administrative agent, issuing bank and swingline lender (as amended from time to time, the Amended ABL Credit Facility. We were in compliance with all covenants under the Amended ABL Credit Facility as of June 30, 2026. The Amended ABL Credit Facility was amended in December 2025. The amendment established a delayed-draw term loan facility (the Term Loan Facility) and extended the maturity of the revolving credit facility. The amendment provided for a Term Loan Facility of up to the lesser of $100.0 million and 85% of the appraised value of eligible machinery and equipment, which could be drawn in up to two advances during the six months following December 1, 2025. In June 2026, the Company further amended the Amended ABL Credit facility to extend the maturity of the Term Loan Facility, with limitations on the scope of use of funds, to December 31, 2026. The Term Loan Facility was undrawn as of June 30, 2026 and December 31, 2025. Any …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents our revenues disaggregated by category: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Product revenue $ 349,627 78 % $ 208,262 76 % $ 646,864 77 % $ 417,223 75 % Rental revenue 18,720 4 % 21,786 8 % 34,650 4 % 48,908 9 % Field service and other revenue 81,181 18 % 43,527 16 % 156,363 19 % 87,763 16 % Total revenues $ 449,528 100 % $ 273,575 100 % $ 837,877 100 % $ 553,894 100 %

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Fair Value Measurements Authoritative guidance on fair value measurements provides a framework for measuring fair value and establishes a fair value hierarchy that prioritizes the inputs used to measure fair value, giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 inputs), observable inputs other than quoted prices in active markets (Level 2 inputs) and the lowest priority to unobservable inputs (Level 3 inputs). The carrying value of cash and cash equivalents, receivables, accounts payable and accrued expenses approximates fair value based on the short-term nature of these accounts.

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Recent Accounting Pronouncements Standards Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income Statement- Reporting Comprehensive Income- Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses . The new standard would require public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2024-03. In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software . This standard update modernizes the capitalization criteria for internal-use software, eliminating references to project stages and instead requiring that projects meet completion probability criteria before costs can be capitalized. This guidance is effective for annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of these amendments but does not anticipate that adoption will have a material impact on the Company's results of operations or financial position.

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Revenue The majority of our revenues are derived from contracts for fixed consideration, or in the case of rentals, generally for a fixed charge per day while the equipment is in use by the customer, plus repair costs. Product sales generally do not include right of return or other significant post-delivery obligations. A contracts transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Revenues are recognized when we satisfy a performance obligation by transferring control of the promised goods or providing services to our customers at a point in time, in an amount specified in the contract with our customer which reflects the consideration to which we expect to be entitled in exchange for those goods or services. The majority of our contracts with customers contain a single performance obligation to provide agreed upon products or services. For contracts with multiple performance obligations, we allocate revenue to each performance obligation based on its relative standalone selling price. We do not assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract with the customer. We typically do not incur any material costs of obtaining contracts. We do not adjust the amount of consideration per the contract for the effects of a significant financing component when we expect, at contract inception, that the period betwee …

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"Segment Reporting We operate in two business segments that offer different products and services and correspond to the manner in which the Company's Chief Executive Officer (the chief operating decision maker or ""CODM"") reviews and evaluates operating performance to make decisions about resources to be allocated to each segment. Our reporting segments are: Pressure Control engaged in the design, manufacture, sale, installation, service and associated rental of wellhead and pressure control equipment utilized during the drilling, completion and production phases of oil and gas wells. Spoolable Technologies engaged in the design, manufacture, sale, installation, service and associated rental of onshore spoolable pipe technologies utilized for production, gathering and takeaway transportation of oil, gas or other liquids. Financial information by business segment for the three and six months ended June 30, 2026 and 2025 is summarized below. Three Months Ended June 30, 2026 Pressure Control Spoolable Technologies Total Revenues from external customers $ 343,995 $ 105,533 $ 449,528 Intersegment revenue Total revenues 343,995 105,533 449,528 Reconciliation of revenue Elimination of intersegment revenue Total consolidated revenues 449,528 Less: (1) Cost of revenue from external customers $ 238,632 $ 61,179 $ 299,811 Intersegment cost of revenue 208 208 Total cost of revenues 238,840 61,179 300,019 Reconciliation of cost of revenue Elimination of intersegment cost of revenue (208) …

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Equity As of June 30, 2026, Cactus Inc. owned 86.8% of Cactus Companies as compared to 86.3% of Cactus Companies as of December 31, 2025. As of June 30, 2026, Cactus Inc. had outstanding 69.6 million shares of Class A common stock (representing 86.8% of the total voting power) and 10.5 million shares of Class B common stock (representing 13.2% of the total voting power). Redemptions of CC Units As part of the CC Reorganization in connection with the acquisition of FlexSteel, Cactus Companies acquired all of the outstanding units representing limited liability company interests of Cactus LLC (CW Units) in exchange for an equal number of CC Units issued to each of the previous owners of CW Units other than Cactus Inc. In connection with the CC Reorganization, Cactus Inc. and the owners of CC Units entered into the Amended and Restated Limited Liability Company Operating Agreement of Cactus Companies (the Cactus Companies LLC Agreement). Pursuant to the Cactus Companies LLC Agreement, holders of CC Units are entitled to redeem their CC Units, which results in additional Class A common stock outstanding. Since our IPO in February 2018, an aggregate of 50.0 million CC Units (including CW Units prior to the CC Reorganization) and a corresponding number of shares of Class B common stock have been redeemed in exchange for shares of Class A common stock. During the six months ended June 30, 2026 and 2025, 0.4 million and 0.2 million CC Units, respectively together with a corresponding …

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Subsequent Events On July 24, 2026, Cactus Companies, and Baker Hughes Oilfield Equipment Manufacturing Sole Proprietorship L.L.C., a 65% owned indirect subsidiary of Cactus Companies that is organized in the UAE (Cactus UAE), entered into a Facilities Agreement (the Facilities Agreement) with Commercial Bank of Dubai PSC, as lender (CBD), Cactus UAE as borrower, and Cactus Companies as guarantor. The Facilities Agreement provides Cactus UAE with a $75.0 million secured credit facility, with sublimits of (x) $40.0 million for revolving credit borrowings, (y) $35.0 million for bank guarantees, bid bonds, performance bonds and similar obligations, and (z) $10.0 million for letters of credit (with a $35.0 million aggregate limit on the amount of bank guarantees, bid bonds, performance bonds, similar obligations and letters of credit). The credit facility established by the Facilities Agreement is scheduled to terminate on February 28, 2027, but CBD may elect to extend the facility for successive 12-month periods in its sole discretion. The obligations of Cactus UAE under the Facilities Agreement are guaranteed by Cactus Companies and secured by a lien on the accounts receivable and certain other personal property assets of Cactus UAE. The Facility Agreement will be used for working capital and general corporate purposes of Cactus International LLC and its subsidiaries (including Cactus UAE), a group of 65% owned subsidiaries of the Company that hold Baker Hughes Companys former …

SubsequentEventsTextBlock · excerpt; the full note is in the filing