Stonegate Capital Partners has updated its coverage on NCS Multistage Holdings, Inc. (NASDAQ: NCSM), following the company's fiscal year 2025 results. The report highlights NCSM's ability to grow revenue by 13% to $183.6 million despite a challenging activity backdrop, demonstrating strong execution across regions and product lines. The growth was fueled by momentum in U.S. fracturing systems and Repeat Precision, continued traction in the North Sea and Middle East, and a $5.2 million contribution from ResMetrics following its July acquisition. Excluding ResMetrics, revenue still increased 10%, indicating organic strength.
The quality of the growth was solid, with adjusted EBITDA rising 20% to $26.7 million and EBITDA margin expanding approximately 80 basis points to 15%. Adjusted gross margin held steady at 41% despite some service-mix pressure. Free cash flow after non-controlling interests nearly doubled to $18.9 million, reinforcing the benefits of the company's asset-light model. This outperformance was driven more by share gains, product execution, and targeted expansion than by a stronger underlying market.
For the fourth quarter of fiscal 2025, NCSM materially outpaced expectations as U.S. fracturing demand accelerated and international markets remained constructive. The company exits FY25 with a strong balance sheet, supporting continued reinvestment, integration execution, and tuck-in M&A flexibility. Stonegate's coverage update emphasizes that NCSM's FY25 outperformance reflected real execution, with share gains, product traction, and incremental contribution from ResMetrics.
For more details, the full announcement is available here. Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Its affiliate, Stonegate Capital Markets (member FINRA), offers a full spectrum of investment banking, equity research, and capital raising for public and private companies.
