Revenue

6 Months Ended

Jun. 30, 2025

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Disaggregation of Revenue

The following tables present our revenue disaggregated by major source for the three and six months ended June 30, 2025 and 2024, respectively (in thousands):

	Three Months Ended June 30, 2025
	Building Solutions		Energy Services		Total
Major Goods/Service Lines
Revenue from Contracts with Customers	$	20,384	$	3,324	$	23,708
Total Revenues	$	20,384	$	3,324	$	23,708
Timing of Revenue Recognition
Services and goods transferred over time	$	—	$	2,222	$	2,222
Services and goods transferred at a point in time	20,384		1,102		21,486
Total Revenues	$	20,384	$	3,324	$	23,708

	Three Months Ended June 30, 2024
	Building Solutions		Energy Services		Total
Major Goods/Service Lines
Revenue from Contracts with Customers	$	13,483	$	—	$	13,483
Total Revenues	$	13,483	$	—	$	13,483
Timing of Revenue Recognition
Services and goods transferred at a point in time	$	13,483	$	—	$	13,483
Total Revenues	$	13,483	$	—	$	13,483

	Six Months Ended June 30, 2025
	Building Solutions		Energy Services		Total
Major Goods/Service Lines
Revenue from Contracts with Customers	$	32,502	$	4,130	$	36,632
Total Revenues	$	32,502	$	4,130	$	36,632
Timing of Revenue Recognition
Services and goods transferred over time	$	—	$	2,907	$	2,907
Services and goods transferred at a point in time	32,502		1,223		33,725
Total Revenues	$	32,502	$	4,130	$	36,632

	Six Months Ended June 30, 2024
	Building Solutions		Energy Services		Total
Major Goods/Service Lines
Revenue from Contracts with Customers	$	22,601	$	—	$	22,601
Total Revenues	$	22,601	$	—	$	22,601
Timing of Revenue Recognition
Services and goods transferred over time	$	22,601	$	—	$	22,601
Total Revenues	$	22,601	$	—	$	22,601

ADT is principally engaged in the business of renting drilling tools. We also sell new drilling tools, drilling parts, supplies, and used rental tools. In addition, ADT offers repair services to support its customers. Tools purchased for sale are recorded as inventory. Tools intended for rental are recorded as part of fixed assets. Equipment rental revenue is recognized on a straight-line basis over the length of the rental contract. New tools, parts and supplies sales are recognized as revenue upon transfer of control, which generally occurs when products are picked up by or delivered to the customer. Repair services revenues are recognized in the period the services are provided. Upon the sale of other rental tools from fixed assets, we recognize a gain or loss on the sale in other income.

ADT’s equipment rental agreements, generally contain provisions whereby should the rented tools or components provided to a customer be deemed to be irretrievably lost during downhole operations, commonly referred to as “lost-in-hole,” the Company has the right to reimbursement for such losses. Amounts billed to customers are at an agreed upon price relative to the specific piece of equipment, the revenue of which is recognized at the time the loss of the equipment is confirmed.

The gross profit recognized from this transaction is the difference between the amounts billed to the customer and the net book value of the lost equipment. This gross profit is presented as a separate line item in the statement of cash flows under operating activities, and the cash received in connection with these activities is presented as an offset to cash purchases of property and equipment in the investing section of the statement of cash flows, to the extent it does not exceed the cash used for the purchases of the replacement equipment. Revenue recognized for the period ended June 30, 2025, totaled to $385,000. No significant lost-in-hole reimbursements were outstanding or contingent as of that date.

Deferred Revenue

Changes in deferred revenue, which consist primarily of customer deposits, for the six months ended June 30, 2025 are as follows (in thousands):

Balance at December 31, 2024	$	2,523
Revenue recognized that was included in balance at beginning of the year	737
Deferred revenue, net, related to contracts entered into during the year	(253)
Balance at June 30, 2025	$	3,007