Except as otherwise indicated or required by the context, all references in this Quarterly Report to the “Company,” “Cactus,” “we,” “us” and “our” refer to Cactus, Inc. (“Cactus Inc.”) and its consolidated subsidiaries. The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the accompanying unaudited condensed consolidated financial statements and related notes. The following discussion contains “forward-looking statements” that reflect our plans, estimates, beliefs and expected performance. Our actual results may differ materially from those anticipated as discussed in these forward-looking statements as a result of a variety of risks and uncertainties, which are difficult to predict, including those described above in “Cautionary Note Regarding Forward-Looking Statements,” and in the risk factors included in “Part II, Item 1A. Risk Factors” in this Quarterly Report. In light of these risks, uncertainties and assumptions, the forward-looking events discussed may not occur. We assume no obligation to update any of these forward-looking statements except as otherwise required by law. Executive Summary Cactus is an equipment solutions provider primarily for onshore oil and gas markets. Cactus was founded in 2011 by a management group that previously operated two of the largest wellhead providers at the time. Since its formation, Cactus has rapidly grown to be a leading provider of wellhead solutions to the U.S. onshore market. With the acquisition of Cactus International, Cactus is now a global wellhead supplier. On February 28, 2023, Cactus acquired FlexSteel, which grew from its founding in 2003 to its current status as a leading provider of spoolable pipe technologies, primarily to the U.S. onshore market. We believe this acquisition enhanced our position as a premier manufacturer and provider of highly engineered equipment primarily to the exploration and production ("E&P") industry and has provided opportunities for meaningful growth. FlexSteel’s spoolable technology products complement Cactus’s pressure control equipment, and the combined business allows for exposure to customers operations from production trees to transportation of oil, gas and other liquids, as well as to additional customers operating in the midstream area. On January 1, 2026, Cactus completed the acquisition of Cactus International, a global provider of wellhead and pressure control equipment and services with operations across key international oil and gas markets. The acquisition significantly expands the Company's geographic footprint, diversifies its customer base, manufacturing, service and operational capabilities, and enhances its ability to serve customers globally. As a result of the acquisition, Cactus is now a global wellhead supplier with meaningful exposure to both U.S. and international drilling and production activity. Demand for our products and services depends primarily upon oil and gas industry activity levels, including the number of active drilling rigs, the number of wells being drilled, the number of wells being completed, and the volume of newly producing wells, among other factors. Revenues Our revenues are derived from three sources: products, rentals, and field service and other. Product revenues are derived from the sale of wellhead systems, production trees and spoolable pipe and fittings. Rental revenues are derived from the rental of equipment used during the completion process, the repair of such equipment, and the rental of equipment or tools used to install wellhead equipment or spoolable pipe. Field service and other revenues are earned when we provide installation and other field services for both product sales and equipment rental. During the six months ended June 30, 2026, we derived 77% of total revenues from the sale of our products, 4% of total revenues from rental and 19% of total revenues from field service and other. During the six months ended June 30, 2025, we derived 75% of total revenues from the sale of our products, 9% of total revenues from rental and 16% of total revenues from field service and other. We have worldwide operations, including the U.S., Saudi Arabia, UAE, and China, with more limited operations in Australia and Canada, as well as sales in other international markets. We operate in two business segments consisting of the Pressure Control segment and the Spoolable Technologies segment. Pressure Control The Pressure Control segment designs, manufactures, sells and rents a range of wellhead and pressure control equipment under the Cactus Wellhead brand and, following the acquisition of Cactus International on January 1, 2026, includes a broader portfolio of surface pressure control products and services serving customers in key international oil and gas markets. Products are 25 sold and rented principally for onshore conventional and unconventional oil and gas wells and are utilized during the drilling, completion and production phases of our customers' wells. In addition, we provide field services for our products and rental equipment to assist with the installation, maintenance and handling of the equipment. We operate through service centers in the United States that are strategically located in key oil and gas producing regions. These service centers support our field services and provide equipment assembly and repair services. Through our legacy operations and Cactus International, we also maintain service, rental and operational capabilities across numerous international markets, including the Kingdom of Saudi Arabia and Australia. Pressure Control manufacturing and production facilities are located in Bossier City, Louisiana; Suzhou, China; Saudi Arabia; Abu Dhabi; and Hai Duong, Vietnam, supporting both domestic and international customer demand. Demand for our Pressure Control product sales is driven primarily by the number of new wells drilled, as each new well requires a wellhead and, following the completion phase, a production tree. Demand for our rental equipment is driven primarily by well completions, as we rent frac trees to oil and gas operators to support hydraulic fracturing activities. Rental demand is also driven, to a lesser extent, by drilling activity through the rental of tools used in wellhead installation. Field service and other revenues are closely correlated with product sales and rental activity, as equipment sold or rented generally requires an associated service component. Spoolable Technologies The Spoolable Technologies segment designs, manufactures, and sells spoolable pipe and associated end fittings under the FlexSteel brand. Our customers use these products primarily as production, gathering, and takeaway pipelines to transport oil, gas or other liquids. In addition, we also provide field services and rental items to assist our customers with the installation of these products. We support our field service operations through service centers and pipe yards located in oil and gas regions throughout the United States and Western Canada. Our manufacturing facility is located in Baytown, Texas. Demand for our product sales in the Spoolable Technologies segment is driven primarily by the number of wells being placed into production after the completions phase, as customers use our spoolable pipe and associated fittings to bring wells more rapidly onto production. Rental and field service and other revenues are closely correlated with revenues from product sales, as items sold usually have an associated rental and service component. Recent Developments and Trends Oil and Natural Gas Prices The following table summarizes average oil and natural gas prices over the indicated periods, as well as industry activity levels as reflected by the average number of active onshore drilling rigs during the same periods. Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025 Brent Oil Price ($/bbl) (1) $ 102.63 $ 80.72 $ 68.07 WTI Oil Price ($/bbl) (2) $ 95.65 $ 72.74 $ 64.57 Natural Gas Price ($/MMBtu) (3) $ 2.95 $ 4.71 $ 3.19 U.S. Land Drilling Rigs (4) 538 530 556 International Land Drilling Rigs (4) 814 841 835 (1) EIA Europe Brent spot price. (2) EIA Cushing, OK West Texas Intermediate ("WTI") spot price. (3) EIA Henry Hub Natural Gas spot price per million British Thermal Unit (“MMBtu”). (4) Based on data made publicly available by Baker Hughes Company. The Company’s operating results continue to be impacted by conditions in the oil and gas industry, which are primarily driven by global commodity prices, drilling and completion activity levels, and supply and demand dynamics. Average WTI and Brent oil prices increased approximately 31% and 27%, respectively, in the second quarter of 2026 compared to the first quarter of 2026, as the war in Iran and associated supply disruption led to elevated commodity prices. Oil 26 price levels have been highly volatile as geopolitical tensions remain high in the Middle East, and the ability to export of oil through the Strait of Hormuz and the Red Sea remain uncertain. Average natural gas prices decreased approximately 37% in the second quarter of 2026 compared to the first quarter of 2026. Prices were elevated in the first quarter due to winter storms and seasonality and have since moderated, as storage levels remained above five-year historical average through the second quarter. In the second quarter of 2026, average U.S. land drilling activity levels were up 2% compared to the first quarter of 2026, as our customers generally continued stable drilling programs despite stronger commodity prices, reflecting E&P capital discipline. International land drilling levels decreased approximately 3% from the first quarter of 2026, led by reduced activity in the Middle East, offset by increases in Africa. U.S. Trade Policies Over the course of 2025 and 2026, the Trump administration implemented and announced a number of new tariffs, including new Section 232 tariffs of 50% on imports of steel and certain products made from steel from most countries outside of the U.S. Threats and actual implementation of tariffs continue to cause market and geopolitical uncertainty. Tariff announcements and implementation have caused global equity, bond, and currency markets to experience heightened levels of volatility as market participants incorporate potential effects of supply chain disruption, inflation, and consumer demand into pricing models. In February 2026, the United States Supreme Court ruled that certain tariffs were unlawful, resulting in the implementation of alternative tariffs under Section 122 and further market uncertainty. The Section 122 tariffs are anticipated to expire in July 2026 and be replaced by subsequent tariffs with similar cost impacts. As a result of the Supreme Court ruling, we filed claims for and have received certain tariff refunds and continue to monitor the situation closely, but there is no guarantee that any future refund claim will be honored. The refunds received and being pursued represent a limited component of the overall tariff impact incurred by the Company as the most material tariffs incurred by the Company under Section 232 and 301 remain unchanged. We are incurring, and expect to continue to incur, elevated tariff expenses on our goods imported from Vietnam and China, and experience generally higher steel input costs at our Bossier City and Baytown manufacturing facilities primarily as a result of the broad Section 232 tariffs. Both tariffs and higher steel input costs have impacted profitability, although the impact has been partially mitigated by cost reduction and tariff recovery efforts. Conflict in Iran The ongoing war involving the United State, Isreal, and Iran continues to disrupt global oil supplies, maintaining upward pressure on energy prices and contributing to volatility in international markets Our operations in the region have been adversely impacted, and we continue to prioritize the safety of personnel in the region. We have experienced and expect to continue to experience disruptions to our operations, our customers’ drilling activities, and our supply chain along with increased freight and logistics costs due to the conflict, and particularly the impediment of traffic through the Strait of Hormuz. Continued war in the region may lead to reduced revenues and profits and increased costs for our business in the region. Pillar Two Framework The Organization for Economic Cooperation and Development (“OECD”) has introduced a framework (“Pillar Two”) that provides for a new, global minimum tax of at least 15% on the income of large multinational corporations arising in each jurisdiction in which they operate. Pillar Two is being implemented on a country-by-country basis, and many countries have adopted rules in this regard. The United States had raised concerns regarding Pillar Two and had proposed a “side-by-side” solution under which U.S. parented groups (such as the Company) would be exempted from certain minimum taxes under Pillar Two in recognition of the existing U.S. minimum tax rules to which they are subject. On January 5, 2026, the OECD/G20 Inclusive Framework formally released a side-by-side package implementing this understanding, together with related simplifications and safe harbors. The side-by-side solution only takes legal effect in a given jurisdiction once that jurisdiction enacts implementing legislation or guidance. The Company continues to evaluate the impact of Pillar Two, and the associated adoption of that legislation by local jurisdictions, across the jurisdictions in which it operates, and estimates the impacts to income tax expense to be immaterial Critical Accounting Policies and Estimates A discussion of our critical accounting policies and estimates is contained in our 2025 Annual Report on Form 10-K. There have not been any changes in our critical accounting policies since December 31, 2025. 27 Consolidated Results of Operations The following discussions relating to significant line items from our condensed consolidated statements of income are based on available information and represent our analysis of significant changes or events that impact the comparability of reported amounts. Where appropriate, we have identified specific events and changes that affect comparability or trends and, where reasonably practicable, have quantified the impact of such items. We have two operating segments consisting of the Pressure Control segment and the Spoolable Technologies segment. Our results of operations are evaluated by the Chief Executive Officer on a consolidated basis as well as at the segment level. The performance of our operating segments is primarily evaluated based on segment operating income (in addition to other measures), which is defined as income before taxes and before interest income (expense), net, other income (expense), net and corporate and other expenses not allocated to the operating segments. Three Months Ended June 30, 2026 Compared to Three Months Ended March 31, 2026 The following table presents a summary of the segment consolidated operating results for the periods indicated: Three Months Ended June 30, 2026 March 31, 2026 $ Change % Change (in thousands) Revenues Pressure Control $ 343,995 $ 300,172 $ 43,823 14.6 % Spoolable Technologies 105,533 89,900 15,633 17.4 Corporate and other — (1,723) 1,723 100.0 Total revenues 449,528 388,349 61,179 15.8 Operating income Pressure Control 59,154 38,605 20,549 53.2 Spoolable Technologies 32,168 23,567 8,601 36.5 Total segment operating income 91,322 62,172 29,150 46.9 Corporate and other expenses (7,740) (12,668) 4,928 38.9 Total operating income 83,582 49,504 34,078 68.8 Interest income, net 949 220 729 nm Income before income taxes 84,531 49,724 34,807 70.0 Income tax expense 23,151 9,503 13,648 nm Net income 61,380 40,221 21,159 52.6 Less: net income attributable to non-controlling interest 12,384 7,315 5,069 69.3 Net income attributable to Cactus Inc. $ 48,996 $ 32,906 $ 16,090 48.9 % nm = not meaningful Pressure Control. Pressure Control revenue for the second quarter of 2026 was $344.0 million, an increase of $43.8 million, or 14.6%, from the first quarter of 2026 primarily due to increased revenues in the Middle East. Pressure Control operating income of $59.2 million for the second quarter of 2026 increased $20.5 million, or 53.2% from the first quarter of 2026, as segment operating income improved due to the higher volume and operating leverage, combined with the positive impact of tariff cost recovery, including the receipt of refunds of $10.3 million. Spoolable Technologies. Spoolable Technologies revenue for the second quarter of 2026 was $105.5 million, an increase of $15.6 million, or 17.4% from the first quarter of 2026 primarily due to higher domestic customer activity levels. Total operating income for Spoolable Technologies for the second quarter of 2026 was $32.2 million, compared to operating income of $23.6 million for the first quarter of 2026, an increase of $8.6 million, or 36.5%, from the first quarter of 2026. The increase in operating income was primarily due to improved operating leverage and better sales mix. 28 Corporate and other. Corporate and other revenue represents the elimination of inter-segment sales from our Pressure Control segment to our Spoolable Technologies segment. Corporate and other expenses include costs associated with executive management and other administrative functions not directly attributable to our reporting segments. Corporate and other expenses for the second quarter of 2026 was $7.7 million, a decrease of $4.9 million, or 38.9% from the first quarter of 2026 primarily due to lower transaction and integration expenses associated with the Baker Hughes Transaction. Interest income, net. Interest income, net was $0.9 million for the second quarter of 2026 compared to $0.2 million for the first quarter of 2026, with the improvement resulting from higher levels of cash invested during the second quarter following the completion of the Acquisition. The interest income, net is primarily comprised of interest income earned on the invested cash balance. Income tax expense. Income tax expense for the second quarter of 2026 was $23.2 million compared to $9.5 million for the first quarter of 2026. Cactus Inc. is only subject to federal and state income tax on its share of income from Cactus Companies. Income allocated to the non-controlling interest is only taxable to the non-controlling interest. Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025 The following table presents a summary of the segment consolidated operating results for the periods indicated: Six Months Ended June 30, 2026 2025 $ Change % Change (in thousands) Revenues Pressure Control $ 644,167 $ 370,049 $ 274,118 74.1 % Spoolable Technologies 195,433 188,803 6,630 3.5 Corporate and other (1,723) (4,958) 3,235 65.2 Total revenues 837,877 553,894 283,983 51.3 Operating income Pressure Control 97,759 96,666 1,093 1.1 Spoolable Technologies 55,735 51,929 3,806 7.3 Total segment operating income 153,494 148,595 4,899 3.3 Corporate and other expenses (20,408) (19,178) (1,230) (6.4) Total operating income 133,086 129,417 3,669 2.8 Interest income, net 1,169 4,843 (3,674) (75.9) Income before income taxes 134,255 134,260 (5) — Income tax expense 32,654 31,108 1,546 5.0 Net income 101,601 103,152 (1,551) (1.5) Less: net income attributable to non-controlling interest 19,699 18,600 1,099 5.9 Net income attributable to Cactus Inc. $ 81,902 $ 84,552 $ (2,650) (3.1) % nm = not meaningful Pressure Control. Pressure Control revenue was $644.2 million for the first six months of 2026, an increase of $274.1 million, or 74.1%, from the first six months of 2025, primarily driven by international contributions from the newly acquired Cactus International joint venture. Operating income of $97.8 million in the first six months of 2026 increased $1.1 million, or 1.1%, from the first six months of 2025. The increase was primarily driven by higher operating income from Cactus International and tariff cost recovery, including the receipt of refunds of $10.3 million, which was more than offset by the impacts of purchase accounting and ongoing Section 232 and Section 301 tariff-related costs affecting product margins compared to prior year. Spoolable Technologies. Spoolable Technologies revenue for the first six months of 2026 was $195.4 million, an increase of $6.6 million, or 3.5%, from the first six months of 2025, primarily due to higher customer activity levels in the international markets. Total operating income was $55.7 million in the first six months of 2026, an increase of $3.8 million, or 7.3%, compared 29 to operating income of $51.9 million in the first six months of 2025. The increase was driven in part by improved operating leverage and lower selling, general and administrative expenses. Corporate and other. Corporate and other revenue represents the elimination of inter-segment sales from our Pressure Control segment to our Spoolable Technologies segment. Corporate and other expenses include costs associated with executive management and other administrative functions not directly attributable to our reporting segments. Corporate and other expenses for the first six months of 2026 was $20.4 million, an increase of $1.2 million, or 6.4% from the first six months of 2025. The increase was largely attributable to professional fees and integration expenses associated with the Baker Hughes Transaction. Interest income, net. Interest income, net for the first six months of 2026 was $1.2 million, compared to $4.8 million for the first six months of 2025. The decrease was due to lower interest income earned on lower amounts of cash invested during the first six months of 2026 as a result of the utilization of cash to fund the Baker Hughes Transaction. Income tax expense. Income tax expense for the first six months of 2026 was $32.7 million compared to $31.1 million for the first six months of 2025. The increase in income tax expense from the first six months of 2025 was primarily due increase taxes associated with foreign operations. Liquidity and Capital Resources At June 30, 2026, we had $365.8 million of cash and cash equivalents, including $92.5 million of cash held for certain restructuring activities related to the Cactus International acquisition. Our primary sources of liquidity and capital resources are cash on hand, cash flows generated by operating activities, and borrowings under our Amended ABL Credit Facility (as defined in Note 7 in the notes to the unaudited condensed consolidated financial statements). Depending upon market conditions and other factors, we may also have the ability to issue additional equity and debt if needed. As of June 30, 2026, we had $223.7 million of available borrowing capacity under our Amended ABL Credit Facility with no outstanding borrowings, in addition to $100.0 million available under our Term Loan Facility (as defined in Note 7 in the notes to the unaudited condensed consolidated financial statements) and $14.4 million in letters of credit outstanding. We were in compliance with the covenants of the Amended ABL Credit Facility as of June 30, 2026. Additionally, we have indemnified Baker Hughes for $14.1 million of contingent liabilities associated with letters of credit in support of Cactus International operations, which do not reduce the borrowing capacity under our Amended ABL Credit Facility. In June 2023, our board of directors authorized the Company to repurchase shares of its Class A common stock for an aggregate purchase price of up to $150 million. Under our share repurchase program, shares may be repurchased from time to time in open market transactions or block trades, in privately negotiated transactions, or any other method permitted under U.S. securities laws, rules and regulations. The repurchase program does not obligate the Company to purchase any particular amount of shares, and the repurchase program may be suspended or discontinued at any time at the Company’s discretion. As of June 30, 2026, $146.3 million remained authorized for future repurchases of Class A common stock under the program. We expect that our existing cash on hand, cash generated from operations and available borrowings under our Amended ABL Credit Facility and Term Loan Facility will be sufficient for the next 12 months to meet our material cash requirements, including working capital requirements, debt service obligations, anticipated capital expenditures, lease obligations, repurchases of shares of our Class A common stock, expected TRA liability payments, anticipated tax liabilities and dividends to holders of our Class A common stock as well as pro rata cash distributions to holders of CC Units other than Cactus Inc. For the full year 2026, the Company is increasing its net capital expenditure guidance from $40 to $50 million to $55 to $65 million. The higher range is due primarily to initial capacity investments in the Baytown Spoolable Technologies manufacturing facility to meet increased global demand. The Company is additionally evaluating capex related to the Spoolable Technologies business in the Eastern hemisphere. In the Pressure Control segment, capital expenditures are primarily related to U.S. service center enhancements, rental fleet investments, and international expansion, and less material investments in low-cost supply chain. Our ability to satisfy our long-term liquidity requirements, including cash requirements to fund income tax liabilities and the TRA liability at Cactus Inc., along with associated distributions to holders of CC Units relating to their ownership of Cactus Companies, depends on our future operating performance, which is affected by, and subject to, prevailing economic conditions, market conditions in the E&P industry, availability and cost of raw materials, and financial, business and other factors, many of which are beyond our control. We will not be able to predict or control many of these factors, such as economic conditions in the markets where we operate, and competitive pressures. If necessary, we would likely choose to reduce and delay or defer our spending on capital expenditures and operating expenses to ensure we operate within the cash flow generated from our operations. 30 Cash Flows Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025 The following table summarizes our cash flows for the periods indicated: Six Months Ended June 30, 2026 2025 (in thousands) Net cash provided by operating activities $ 232,835 $ 124,380 Net cash used in investing activities (325,585) (26,507) Net cash used in financing activities (36,258) (36,546) Net cash provided by operating activities was $232.8 million and $124.4 million for the six months ended June 30, 2026 and 2025, respectively. Operating cash flows for the six months ended June 30, 2026 increased primarily due to changes in working capital, largely driven by our recent acquisition of Cactus International. Net cash used in investing activities was $325.6 million and $26.5 million for the six months ended June 30, 2026 and 2025, respectively. The increase for the six months ended June 30, 2026 was primarily due to cash paid to acquire Cactus International for $371.0 million, less $70.0 million in cash acquired from the acquisition. Net cash used in financing activities was $36.3 million for the six months ended June 30, 2026 compared to $36.5 million for the six months ended June 30, 2025. The decrease in net cash used in financing activities for the six months ended June 30, 2026 was primarily related to a decrease in distributions to members of Cactus Companies of approximately $4.5 million. This decrease was partially offset by an increase in share repurchases of $2.3 million as well as an increase in the payment of Class A share dividends of $1.8 million. 31