tisi-20250331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________________________________________________________________

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-08604

TEAM, INC.


(Exact Name of Registrant as Specified in Its Charter)
Delaware						74-1765729
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification No.)
13131 Dairy Ashford, Suite 600, Sugar Land, Texas						77478
(Address of Principal Executive Offices)						(Zip Code)
(281) 331-6154
(Registrant’s Telephone Number, Including Area Code)
None
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.30 par value	TISI	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

Smaller reporting company

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

The Registrant had 4,493,391 shares of common stock, par value $0.30, outstanding as of May 8, 2025.

Table of Contents

INDEX


		Page No.
PART I—FINANCIAL INFORMATION		1
ITEM 1.	Financial Statements	2
	Condensed Consolidated Balance Sheets as of March 3 1 , 202 5 (Unaudited) and December 31, 2024	2
	Unaudited Condensed Consolidated Statements of Operations for the Three Months Ended March 3 1 , 202 5 and 2024	3
	Unaudited Condensed Consolidated Statements of Comprehensive Loss for the Three Months Ended March 3 1 , 202 5 and 2024	4
	Unaudited Condensed Consolidated Statements of Shareholders’ Equity (Deficit) for the Three Months Ended March 3 1 , 202 5 and 2024	5
	Unaudited Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2025 and 2024	6
	Notes to Unaudited Condensed Consolidated Financial Statements	7
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	31
ITEM 4.	Controls and Procedures	31
PART II—OTHER INFORMATION		32
ITEM 1.	Legal Proceedings	32
ITEM 1A.	Risk Factors	32
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32
ITEM 3.	Defaults Upon Senior Securities	32
ITEM 4.	Mine Safety Disclosures	32
ITEM 5.	Other Information	32
ITEM 6.	Exhibits	33
SIGNATURES		35

Table of Contents

PART I—FINANCIAL INFORMATION


ITEM 1.			FINANCIAL STATEMENTS

TEAM, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)


	March 31, 2025		December 31, 2024
ASSETS	(unaudited)

Current assets:
Cash and cash equivalents	$	16,803	$	35,545
Accounts receivable, net of allowance of $3,039 and $3,271 respectively	179,357		172,645
Inventory	39,615		37,874
Income tax receivable	488		396

Prepaid expenses and other current assets	56,100		58,643
Total current assets	292,363		305,103
Property, plant and equipment, net	110,945		112,835
Intangible assets, net	47,147		50,243
Operating lease right-of-use assets	42,016		40,407
Defined benefit pension asset	5,071		4,768
Other assets, net	15,559		13,427
Deferred tax asset	2,113		1,582
Total assets	$	515,214	$	528,365
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Current portion of long-term debt and finance lease obligations	$	3,811	$	6,485
Current portion of operating lease obligations	14,826		14,790
Accounts payable	34,358		42,091
Other accrued liabilities	97,246		105,228
Income tax payable	2,887		2,654
Total current liabilities	153,128		171,248
Long-term debt and finance lease obligations	349,813		318,626
Operating lease obligations	30,096		28,631
Deferred tax liabilities	4,981		4,965
Other long-term liabilities	3,163		3,157
Total liabilities	541,181		526,627
Commitments and contingencies
Shareholders’ equity (deficit):
Preferred stock, 500,000 shares authorized, none issued	—		—
Common stock, par value $0.30 per share, 12,000,000 shares authorized; 4,493,391 and 4,493,338 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively	1,348		1,348
Additional paid-in capital	460,133		460,186
Accumulated deficit	(445,385)		(415,667)
Accumulated other comprehensive loss	(42,063)		(44,129)
Total shareholders’ equity (deficit)	(25,967)		1,738
Total liabilities and shareholders’ equity (deficit)	$	515,214	$	528,365

See accompanying notes to unaudited condensed consolidated financial statements.

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TEAM, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(Unaudited)


	Three Months Ended March 31,
		2025		2024

Revenues		$	198,655	$	199,600
Operating expenses		151,389		150,869
Gross margin		47,266		48,731
Selling, general and administrative expenses		53,269		55,117

Operating loss		(6,003)		(6,386)
Interest expense, net		(11,436)		(12,098)
Loss on debt extinguishment		(11,853)		—
Other income (expense), net		(204)		1,362
Loss before income taxes		(29,496)		(17,122)
Provision for income taxes		(222)		(73)
Net loss		$	(29,718)	$	(17,195)

Loss per common share:
Basic and diluted		$	(6.61)	$	(3.89)


Weighted-average number of shares outstanding:
Basic and diluted		4,493		4,415

See accompanying notes to unaudited condensed consolidated financial statements.

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TEAM, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE LOSS

(in thousands)

(Unaudited)


	Three Months Ended March 31,
		2025		2024

Net loss		$	(29,718)	$	(17,195)
Other comprehensive income (loss) before tax:
Foreign currency translation adjustment		2,015		(2,862)
Defined benefit pension plans:

Amortization of prior service cost		8		8
Amortization of net actuarial loss		87		79
Other comprehensive income (loss), before tax		2,110		(2,775)
Tax provision attributable to other comprehensive income (loss)		(44)		—
Other comprehensive income (loss), net of tax		2,066		(2,775)
Total comprehensive loss		$	(27,652)	$	(19,970)

See accompanying notes to unaudited condensed consolidated financial statements.

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TEAM, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (DEFICIT)

(in thousands)

(Unaudited)


	Common Stock				Additional Paid-in Capital			Accumulated Deficit	Accumulated Other Comprehensive Loss		Total Shareholders’Equity (Deficit)
	Shares			Amount

Balance at December 31, 2024	4,493	$	1,348			$	460,186		$	(415,667)	$	(44,129)	$	1,738


Net loss	—	—				—			(29,718)		—		(29,718)

Foreign currency translation adjustment, net of tax	—	—				—			—		1,971		1,971

Defined benefit pension plans, net of tax	—	—				—			—		95		95
Non-cash compensation	—	—				(53)			—		—		(53)

Balance at March 31, 2025	4,493	$	1,348			$	460,133		$	(445,385)	$	(42,063)	$	(25,967)

Balance at December 31, 2023	4,415	$	1,315			$	458,614		$	(377,401)	$	(36,932)	$	45,596
Net loss	—	—				—			(17,195)		—		(17,195)
Net settlement of vested stock awards	—	10				(10)			—		—		—
Foreign currency translation adjustment, net of tax	—	—				—			—		(2,862)		(2,862)
Defined benefit pension plans, net of tax	—	—				—			—		87		87
Non-cash compensation	—	—				665			—		—		665
Balance at March 31, 2024	4,415	$	1,325			$	459,269		$	(394,596)	$	(39,707)	$	26,291

See accompanying notes to unaudited condensed consolidated financial statements.

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TEAM, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(Unaudited)


	Three Months Ended March 31,
	2025		2024
Cash flows from operating activities:
Net loss	$	(29,718)	$	(17,195)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	8,402

SEC Form 10-Q filed by Team Inc.