tisi-20260331

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, 2026

☐ 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 4,571,382 shares of common stock, par value $0.30, outstanding as of May 11, 2026.

INDEX


		Page No.
PART I—FINANCIAL INFORMATION		1
ITEM 1.	Financial Statements	2
	Condensed Consolidated Balance Sheets as of March 31, 2026 (Unaudited) and December 31, 2025	2
	Unaudited Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2026 and 2025	3
	Unaudited Condensed Consolidated Statements of Comprehensive Loss for the Three Months Ended March 31, 2026 and 2025	4
	Unaudited Condensed Consolidated Statements of Shareholders’ Equity (Deficit) for the Three Months Ended March 31, 2026 and 2025	5
	Unaudited Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025	6
	Notes to Unaudited Condensed Consolidated Financial Statements	7
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	30
ITEM 4.	Controls and Procedures	30
PART II—OTHER INFORMATION		31
ITEM 1.	Legal Proceedings	31
ITEM 1A.	Risk Factors	31
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
ITEM 3.	Defaults Upon Senior Securities	31
ITEM 4.	Mine Safety Disclosures	31
ITEM 5.	Other Information	31
ITEM 6.	Exhibits	32
SIGNATURES		33

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, 2026		December 31, 2025
ASSETS	(unaudited)

Current assets:
Cash and cash equivalents	$	12,839	$	18,145
Accounts receivable, net of allowance of $4,395 and $4,585 respectively	182,007		177,884
Inventory	41,876		41,384
Income tax receivable	969		1,042

Prepaid expenses and other current assets	28,285		27,950
Total current assets	265,976		266,405
Property, plant and equipment, net	108,512		110,628
Intangible assets, net	34,770		37,849
Operating lease right-of-use assets	48,443		49,849
Defined benefit pension asset	5,163		5,144
Other assets, net	14,378		14,044
Deferred tax asset	2,167		1,534
Total assets	$	479,409	$	485,453
LIABILITIES, REDEEMABLE PREFERRED STOCK AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Current portion of long-term debt and finance lease obligations	$	3,884	$	3,858
Current portion of operating lease obligations	16,749		16,476
Accounts payable	34,703		42,010
Other accrued liabilities	61,953		56,724
Income tax payable	1,301		987
Total current liabilities	118,590		120,055
Long-term debt and finance lease obligations	302,616		293,343
Operating lease obligations	34,166		35,910
Deferred tax liabilities	4,832		4,984
Other long-term liabilities	3,792		3,691
Total liabilities	463,996		457,983
Commitments and contingencies
Redeemable preferred stock, par value $100.00 per share, 75,000 shares issued and outstanding at March 31, 2026 and December 31, 2025	54,832		51,951
Shareholders’ equity (deficit):
Preferred stock, 500,000 shares authorized, 75,000 shares (included in redeemable preferred stock) issued and outstanding at March 31, 2026 and December 31, 2025	—		—
Common stock, par value $0.30 per share, 12,000,000 shares authorized; 4,571,382 and 4,532,240 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively	1,371		1,360
Additional paid-in capital	473,730		475,829
Accumulated deficit	(476,210)		(464,877)
Accumulated other comprehensive loss	(38,310)		(36,793)
Total shareholders’ equity (deficit)	(39,419)		(24,481)
Total liabilities, redeemable preferred stock and shareholders’ equity (deficit)	$	479,409	$	485,453

See accompanying notes to unaudited condensed consolidated financial statements.

TEAM, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(Unaudited)


	Three Months Ended March 31,
		2026		2025

Revenues		$	215,056	$	198,655
Operating expenses		161,912		148,287
Depreciation and amortization		2,989		3,102
Gross margin		50,155		47,266
Selling, general and administrative expenses		48,062		47,969
Depreciation and amortization		5,464		5,300
Operating loss		(3,371)		(6,003)
Interest expense, net		(8,882)		(11,436)
Loss on debt extinguishment		—		(11,853)
Other income (expense), net		925		(204)
Loss before income taxes		(11,328)		(29,496)
Provision for income taxes		(5)		(222)
Net loss		(11,333)		(29,718)
Dividend and accretion to redemption value on redeemable preferred stock		(2,874)		—
Net loss attributable to common shareholders		$	(14,207)	$	(29,718)

Loss per common share:
Basic and diluted		$	(3.12)	$	(6.61)

Weighted-average number of shares outstanding:
Basic and diluted		4,559		4,493

See accompanying notes to unaudited condensed consolidated financial statements.

TEAM, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE LOSS

(in thousands)

(Unaudited)


	Three Months Ended March 31,
		2026		2025

Net loss		$	(11,333)	$	(29,718)
Other comprehensive income (loss) before tax:
Foreign currency translation adjustment		(1,606)		2,015
Defined benefit pension plans:

Amortization of prior service cost		8		8
Amortization of net actuarial loss		110		87
Other comprehensive income (loss) before tax		(1,488)		2,110
Tax provision attributable to other comprehensive income (loss)		(29)		(44)
Other comprehensive income (loss), net of tax		(1,517)		2,066
Total comprehensive loss		$	(12,850)	$	(27,652)

See accompanying notes to unaudited condensed consolidated financial statements.

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, 2025	4,532	$	1,360			$	475,829		$	(464,877)	$	(36,793)	$	(24,481)
Net loss	—	—				—			(11,333)		—		(11,333)
Dividend and accretion to redemption value on redeemable preferred stock	—	—				(2,874)			—		—		(2,874)
Net settlement of vested stock awards	39	11				(179)			—		—		(168)
Foreign currency translation adjustment, net of tax	—	—				—			—		(1,635)		(1,635)
Defined benefit pension plans, net of tax	—	—				—			—		118		118
Non-cash compensation	—	—				954			—		—		954
Balance at March 31, 2026	4,571	$	1,371			$	473,730		$	(476,210)	$	(38,310)	$	(39,419)

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)

See accompanying notes to unaudited condensed consolidated financial statements.

TEAM, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(Unaudited)


	Three Months Ended March 31,
	2026		2025
Cash flows from operating activities:
Net loss	$	(11,333)	$	(29,718)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	8,453		8,402
Loss on debt extinguishment	—		11,853
Amortization of debt issuance costs, debt discounts, and deferred financing costs	1,152		1,389
Paid-in-kind (“PIK”) interest	2,121		3,261
Allowance for credit losses	(70)		182
Foreign currency loss (gain)	(917)		205
Deferred income taxes	(796)		(491)
Non-cash compensation cost (credit)	954		(53)
Other, net	(74)		37
Changes in operating assets and liabilities:
Accounts receivable	(4,612)		(5,758)
Inventory	(530)		(1,367)
Prepaid expenses and other assets	(1,665)		127
Accounts payable	(7,675)		(8,877)
Other accrued liabilities	5,520		(7,980)
Income taxes	377		127
Net cash used in operating activities	(9,095)		(28,661)
Cash flows from investing activities:
Capital expenditures	(2,424)		(1,406)
Proceeds from disposal of assets	14		—
Net cash used in investing activities	(2,410)		(1,406)
Cash flows from financing activities:
Borrowings under Revolving Credit Loans	74,000		13,000
Payments under Revolving Credit Loans	(66,800)		(5,018)
Payments under Corre Delayed Draw Term Loan	—		(35,700)
Payments under Corre Uptiered Loan	—		(55,894)
Borrowings under First Lien Term Loan	—		175,000
Payments under First Lien Term Loan	(438)		—

Payments under ME/RE Loans	—		(23,427)
Payments under Corre Incremental Term Loan	—		(48,015)


Payments for debt issuance costs	—		(8,053)
Other	(525)		(705)
Net cash provided by financing activities	6,237		11,188
Effect of exchange rate changes on cash	(38)		137
Net decrease in cash and cash equivalents	(5,306)		(18,742)
Cash and cash equivalents at beginning of period	18,145		35,545
Cash and cash equivalents at end of period	$	12,839	$	16,803

See accompanying notes to unaudited condensed consolidated financial statements.

TEAM, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Description of Business. Unless otherwise indicated, the terms “Team,” “the Company,” “we,” “our” and “us” are used in this report to refer to either Team, Inc., to one or more of our consolidated subsidiaries, or to all of them taken as a whole. Our stock is traded on the New York Stock Exchange (the “NYSE”) under the symbol “TISI”.

We are a global, leading provider of specialty industrial services offering customers access to a full suite of conventional, specialized, and proprietary mechanical, heat-treating, and inspection services. We deploy conventional to highly specialized inspection, condition assessment, maintenance and repair services that result in greater safety, reliability, and operational efficiency for our customers’ most critical assets. We conduct operations in two segments: Inspection and Heat-Treating (“IHT”) and Mechanical Services (“MS”). Through the capabilities and resources in these two segments, we believe that we are uniquely qualified to provide integrated solutions involving: inspection to assess condition; engineering assessment to determine fitness for purpose in the context of industry standards and regulatory codes; and mechanical services to repair, rerate or replace based upon the customer’s election. In addition, we are capable of escalating with the customer’s needs, as dictated by the severity of the damage found and the related operating conditions, from standard services to some of the most advanced services and integrated asset integrity and reliability management solutions available in the industry. We also believe that we are unique in our ability to provide these services in three distinct customer demand profiles: (i) turnaround or project services, (ii) call-out services, and (iii) nested or run-and-maintain services.

IHT provides conventional and advanced non-destructive testing services primarily for the process, pipeline and power sectors, pipeline integrity management services, and field heat-treating services, as well as associated engineering and condition assessment services. These services can be offered while facilities are running (onstream), during facility turnarounds or during new construction or expansion activities. In addition, IHT provides comprehensive non-destructive testing services and metallurgical and chemical processing services to the aerospace and other industries covering a range of components including finished machined and in-service components. IHT also provides advanced digital imaging including remote digital video imaging.

MS provides solutions designed to serve customers’ unique needs during both the operational (onstream) and off-line states of their assets. Our onstream services include our range of standard to custom-engineered leak repair and composite solutions; emissions control and compliance; hot tapping and line stopping; and online valve insertion solutions, which are delivered while assets are in an operational condition, which maximizes customer production time. Asset shutdowns can be planned, such as a turnaround maintenance event, or unplanned, such as those due to component failure or equipment breakdowns. Our specialty maintenance, turnaround and outage services are designed to minimize customer downtime and are primarily delivered while assets are off-line, often through the use of cross-certified technicians whose multi-craft capabilities deliver the production needed to achieve tight time schedules. These critical services include on-site field machining; bolted-joint integrity; vapor barrier plug testing; and valve management solutions.

We market our services to companies in a diverse array of heavy industries which include:

•Energy (refining, power, renewables, nuclear, offshore oil and gas, and liquefied natural gas);

•Manufacturing and Process (chemical, petrochemical, pulp and paper industries, automotive, and mining);

•Midstream (valves, terminals and storage, and pipeline);

•Infrastructure (construction and building, roads, dams, amusement parks, bridges, ports, and railways); and

•Aerospace and Defense.

Basis of presentation. These condensed consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, these unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of results for such periods. The results of operations for any interim period are not necessarily indicative of results for the full year. Certain disclosures have been condensed or omitted from the interim financial statements included in this report. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes contained in our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC (“our Annual Report on Form 10-K”).

Consolidation. The condensed consolidated financial statements include the accounts of our subsidiaries where we have control over operating and financial policies. All material intercompany accounts and transactions have been eliminated in consolidation.

Reclassifications. Certain amounts in prior periods have been reclassified to conform to the current year presentation, including the separate presentation of depreciation and amortization expense on the condensed consolidated statements of operations. Such reclassifications did not have any effect on our financial condition or results of operations as previously reported.

Significant Accounting Policies. Our significant accounting policies are disclosed in Note 1 - Summary of Significant Accounting Policies and Practices in our Annual Report on Form 10-K. On an ongoing basis, we evaluate the estimates and assumptions, including among other things, those related to long-lived assets. Since the date of our Annual Report on Form 10-K, there have been no material changes to our significant accounting policies.

Newly Adopted Accounting Standards. In July 2025, the FASB issued ASU 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). ASU 2025-05 provides a practical expedient that all entities can use when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606, Revenue from Contracts with Customers. Under this practical expedient, an entity is allowed to assume that the current conditions it has applied in determining credit loss allowances for current accounts receivable and current contract assets remain unchanged for the remaining life of those assets. ASU 2025-05 is effective for fiscal years beginning after December 15, 2025, and interim periods in those years. The Company has elected to apply the practical expedient in its assessment of an allowance for credit losses as of March 31, 2026. The adoption did not have a material impact on the Company’s condensed consolidated financial statements.

2. REVENUE

Disaggregation of revenue. Essentially all of our revenues are associated with contracts with customers. A disaggregation of our revenue from customer contracts by geographic region, by reportable operating segment and by service type is presented below:

Revenue by geographic area (in thousands):



	Three Months Ended March 31, 2026
	(unaudited)
	United States		Canada		Other Countries		Total
Revenue1:
IHT	$	110,342	$	9,267	$	3,782	$	123,391
MS	55,981		7,290		28,394		91,665
Total	$	166,323	$

SEC Form 10-Q filed by Team Inc.