# Cactus Inc. (WHD) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/WHD/thesis · /stocks/WHD/memo

## Financial Snapshot

---
source: coverage-next-full
ticker: WHD
company: Cactus Inc.
step: 04
title: Financial Snapshot & Adversarial Sweep
created: 2026-05-29
---

### Step 04 — Financial Snapshot & Adversarial Sweep: Cactus Inc. (WHD)

*Note: Earnings call transcripts were not used in this analysis. Based on SEC filings, StockAnalysis.com, and web search.*

#### 1. Three-Year Financial Snapshot

##### Income Statement Summary (USD Millions)

| Metric | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|--------|---------|---------|---------|---------|
| Revenue | $688.4 | $1,097.0 | $1,129.8 | $1,079.1 |
| YoY Revenue Growth | +57% | +59% | +3% | -4.5% |
| Gross Profit | $242.5 | $406.3 | $436.4 | $399.4 |
| Gross Margin | 35.2% | 37.0% | 38.6% | 37.0% |
| EBITDA | $208.9 | $329.4 | $350.1 | $314.4 |
| EBITDA Margin | 30.3% | 30.0% | 31.0% | 29.1% |
| Operating Income | $174.8 | $264.4 | $289.6 | $250.5 |
| Net Income (GAAP) | $145.1 | $169.2 | $185.4 | $166.0 |
| EPS (Diluted) | $1.80 | $2.57 | $2.77 | $2.41 |

*Sources: StockAnalysis.com, SEC XBRL filings [S1]*

##### Key Observations
- **Revenue step-change in FY 2023** driven by FlexSteel acquisition (Feb 2023) — $616M acquisition added ~$340M revenue for ~10 months
- **Organic growth** in Pressure Control segment was approximately flat to slightly declining in 2024-2025 as US rig count softened from ~775 peak (2022) to ~480-510 (2026)
- **FY 2025 revenue decline** (-4.5%) reflects: (1) US rig count ~10-15% lower than 2024 average; (2) Spoolable Technologies segment softness in H2 2025
- **Margin durability:** EBITDA margin compressed modestly (31% → 29%) but remained best-in-class for the sector

##### Balance Sheet Summary (USD Millions)

| Metric | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|--------|---------|---------|---------|---------|
| Cash | $344.5 | $133.8 | $342.8 | $123.6 |
| Goodwill | $7.8 | $203.0 | $203.0 | $203.0 |
| Total Assets | $1,119 | $1,523 | $1,739 | $1,872 |
| Total Debt (LT) | $35.5 | $40.0 | $41.7 | $37.8 |
| Shareholders' Equity | $710.5 | $1,065 | $1,264 | $1,433 |
| Net Cash | $309.0 | $93.8 | $301.1 | $85.8 |

- **FY 2023 cash decline:** Reflects $616M FlexSteel acquisition; partially offset by equity issuance
- **FY 2024 cash recovery:** Strong FCF generation ($276.9M) rebuilt balance sheet
- **FY 2025 cash decline:** Baker Hughes SPC deal funded ($344.5M), which closed Jan 1, 2026 (Q4 2025 funding)
- **Zero long-term bank debt** maintained throughout — only debt is minor operating lease obligations

##### Cash Flow Summary (USD Millions)

| Metric | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|--------|---------|---------|---------|---------|
| Operating Cash Flow | $117.9 | $340.3 | $316.1 | $258.4 |
| Capex | ($28.3) | ($44.0) | ($39.2) | ($38.8) |
| Free Cash Flow | $89.6 | $296.3 | $276.9 | $219.6 |
| FCF Margin | 13.0% | 27.0% | 24.5% | 20.3% |
| Dividends | ($14.3) | ($46.8) | ($47.0) | ($53.1) |
| Buybacks | — | ($5.3) | ($9.3) | ($5.9) |

---

#### 2. Accounting Quality Adjustments

##### Statement Quality Assessment: CLEAN

**Revenue recognition:** Cactus follows ASC 606 (point-in-time for product sales; over-time for field services/rentals). No unusual deferral patterns detected. Revenue aligns closely with billing and cash collection timelines. [S2]

**Non-GAAP adjustments (material items in Adj. EBITDA):**
- Stock-Based Compensation: $22.9M (FY2024), $24.5M (FY2025) — disclosed; not unusually large
- Acquisition-related costs: ~$6-8M (one-time; properly excluded from Adj. EBITDA)
- No evidence of excessive goodwill write-ups, channel stuffing, or aggressive capitalization

**Working capital quality:**
- Receivables days (DSO): ~60-65 days — normal for equipment OEM/service businesses
- Inventory: Grew from $161M (FY2022) to $227M (FY2024) — reflects supply chain buffer build, not accumulation of obsolete product
- Accounts payable: ~60-70 days; consistent

**Key flags (minor):**
- [FLAG-1] FY 2023 goodwill jump ($8M → $203M) entirely attributable to FlexSteel acquisition; not impaired as of FY2024 (implying fair value > book by $195M margin). Management uses reasonable impairment testing assumptions.
- [FLAG-2] Tax rate variability: Effective tax rate ranges 20-27% due to TRA (Tax Receivable Agreement) legacy from IPO structure. TRA payments reduce taxable income for legacy partners; not a red flag but requires monitoring.

---

#### 3. Adversarial Research Sweep

##### Short Reports / Negative Research
- **No major short reports found** targeting WHD. No activist short positions from Hindenburg, Citron, Muddy Waters, or similar firms identified. [S3]
- Seeking Alpha bears have periodically flagged US rig count vulnerability and FlexSteel margin dilution concerns — standard sector concerns, not forensic allegations.

##### SEC Enforcement Actions
- **No SEC investigations, comment letters with material unresolved issues, or regulatory sanctions** identified in EDGAR filing history for CIK 1699136. [S4]

##### Legal / Litigation
- WHD carries standard oilfield equipment product liability reserves; no material pending litigation disclosed in 10-K risk factors beyond routine industry matters.
- **FlexSteel earnout dispute:** $75M earnout contingent on FY2023 revenue targets was assessed; company disclosed it was NOT paid (targets not met). No litigation filed. [S2]

##### Related-Party Transactions
- **Joel Bender** (President) is Scott Bender's (CEO/Chairman) son — family-led management. All related-party transactions disclosed in proxy; no evidence of self-dealing or sweetheart contracts.
- **Cactus WH Enterprises LLC** (Bender family holding vehicle) holds ~12.4% of shares via 13F filings — structured but transparent insider ownership.

##### Capital Structure Complexity
- WHD has a **Tax Receivable Agreement (TRA)** with legacy pre-IPO partners (the Benders and other founders). TRA obligates WHD to pay 85% of tax savings from IPO-related step-up basis to legacy partners. This is a disclosed, recurring cash outflow (~$5-10M/year) that doesn't flow through the P&L clearly. **Monitoring required but not alarming.**

##### Manufacturing / Supply Chain
- Management acknowledged in Q4 2024 that US Bossier City facility costs "at least 35% more" than Far East supply chain. Vietnam and China operations supplement US manufacturing.
- **Tariff risk (2025):** With US-China trade tensions and potential tariffs on imported equipment components, WHD's dual-source strategy (domestic + Vietnam/China) provides partial hedge but creates pricing uncertainty.

##### Conclusion
**Accounting quality: HIGH.** No forensic red flags. Financial reporting is straightforward and consistent. Primary risks are macro/cyclical (rig count), not accounting or governance related.

---

#### 4. Financial Ratios & Cross-Check

| Ratio | FY 2022 | FY 2023 | FY 2024 |
|-------|---------|---------|---------|
| Gross Margin | 35.2% | 37.0% | 38.6% |
| EBITDA Margin | 30.3% | 30.0% | 31.0% |
| Net Margin | 21.1% | 15.4% | 16.4% |
| ROIC | 22.0% | 22.1% | 17.9% |
| D/E Ratio | 0.05 | 0.04 | 0.03 |
| Current Ratio | 5.6x | 3.2x | 4.3x |
| FCF Conversion (vs. EBITDA) | 43% | 90% | 79% |

*Note: ROIC compressed from 22% (FY2022-23) to ~18% (FY2024) as the FlexSteel goodwill ($195M) diluted invested capital without proportionate EBITDA increase. This is mechanical and expected.*

---

#### Source Index

| ID | Source | Date |
|----|--------|------|
| S1 | StockAnalysis.com WHD Income Statement | May 2026 |
| S2 | Cactus 2024 10-K Filing (SEC EDGAR accession 0001699136-25-000014) | Feb 2025 |
| S3 | Web search: short report / activist targeting WHD | May 2026 |
| S4 | SEC EDGAR search for regulatory actions CIK 1699136 | May 2026 |

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/WHD/fundamental

## Navigation

- Overview: /stocks/WHD
- Financials (this page): /stocks/WHD/financials
- Thesis: /stocks/WHD/thesis
- Investment Memo: /stocks/WHD/memo
- Coverage universe: /stocks