HOUSTON, Feb. 6, 2026 /PRNewswire/ -- Flotek Industries, Inc. ("Flotek" or the "Company") (NYSE: FTK) today announced the Company's schedule for releasing its fourth quarter and full-year financial and operating results for the periods ended December 31, 2025. The Company plans to issue its fourth quarter and full-year 2025 financial and operating results press release after market close on Wednesday, March 11, 2026, and host its earnings conference call on Thursday, March 12, 2026, at 9:00 a.m. CT (10:00 a ...

Core Insights - Flotek Industries, Inc. (NYSE:FTK) has seen a significant share price increase of 11.97% from December 30, 2025, to January 6, 2026, marking it as one of the top-performing energy stocks during that week [1] - Analysts have included Flotek Industries among their top picks for 2026, highlighting its innovative solutions aimed at reducing the environmental impact of energy [2] Analyst Ratings and Expectations - Northland Securities has reiterated an 'Outperform' rating for Flotek Industries and set a price target of $20, suggesting that current estimates may be conservative due to potential customer wins that could enhance performance [3] - The firm anticipates 2026 to be a pivotal year for Flotek, with expectations of scaling in its Data Analytics business and significant growth opportunities in Power Services and Digital Valuation markets [4] - Increased adoption of Flotek's technology is expected in 2026, as customers begin to recognize its value and benefits [4]

Core Viewpoint - Flotek Industries (FTK) has received an upgrade to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of a company's shares, leading to buying or selling actions that affect stock prices [4]. Company Performance and Investor Sentiment - The upgrade for Flotek Industries indicates an improvement in the company's underlying business, which is expected to drive stock appreciation as investors recognize this positive trend [5][10]. - Over the past three months, the Zacks Consensus Estimate for Flotek Industries has increased by 7.1%, reflecting analysts' growing confidence in the company's earnings potential [8]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Flotek Industries' upgrade places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Insights - Flotek Industries, Inc. (FTK) has shown a significant stock performance, with a 36% return to investors since an earlier report estimated a 38% upside potential [1] Company Analysis - The recent conference call regarding FTK's 3Q25 results provided updates on the company's performance and future outlook [1] - The analyst emphasizes a focus on identifying undervalued businesses and high-quality compounders within various sectors, including chemicals and energy transition [1] Investment Strategy - The investment approach combines bottom-up fundamental analysis with top-down macroeconomic context, focusing on financial statements, competitive landscapes, and management quality [1] - The goal is to share well-researched investment ideas that help investors navigate complex markets, reflecting a commitment to disciplined research and actionable strategies [1]

Financial Performance - Total revenues for Q3 2025 reached $56,031,000, a 12.9% increase from $49,742,000 in Q3 2024[21] - Net income for Q3 2025 was $20,355,000, compared to $2,532,000 in Q3 2024, representing a significant increase of 705.5%[23] - Gross profit for the nine months ended September 30, 2025, was $44,639,000, up from $27,108,000 in the same period of 2024, indicating a 64.7% increase[21] - Operating income for the nine months ended September 30, 2025, was $17,256,000, a 144.5% increase from $7,052,000 in the same period of 2024[21] - Net income for the nine months ended September 30, 2025, was $27,503 thousand, compared to $2,532 thousand for the same period in 2024, representing a significant increase[31] - For the three months ended September 30, 2025, net income was $20.4 million, compared to $2.5 million for the same period in 2024, representing a significant increase[110] - Basic earnings per share for the three months ended September 30, 2025, was $0.57, up from $0.09 in 2024, while diluted earnings per share increased to $0.53 from $0.08[110] Revenue Breakdown - Product revenue for the nine months ended September 30, 2025, was $154.7 million, up 17.2% from $132.1 million in 2024[61] - The Company recognized lease revenue of $9.3 million for the nine months ended September 30, 2025, compared to no rental income in the same period of 2024[61] - Revenue from related parties for the three months ended September 30, 2025, was $33,090 thousand, compared to $33,177 thousand in 2024, indicating a slight decrease of 0.26%[131] - Related party revenues for the nine months ended September 30, 2025, were $97.2 million, compared to $88.3 million for the same period in 2024, indicating a year-over-year growth of approximately 10.1%[118] Assets and Liabilities - Total assets increased to $212,687,000 as of September 30, 2025, from $170,796,000 at the end of 2024, reflecting a growth of 24.5%[20] - The company had total liabilities of $102,189,000 as of September 30, 2025, compared to $56,896,000 at the end of 2024, marking an increase of 79.5%[20] - The total stockholders' equity as of September 30, 2025, was $110,498 thousand, up from $109,007 thousand as of September 30, 2024[32] Cash Flow and Expenses - Cash and cash equivalents at the end of Q3 2025 were $4,603,000, compared to $4,997,000 at the end of Q3 2024[25] - The company recorded total lease expenses of $863,000 and $1.0 million for the three months ended September 30, 2025 and 2024, respectively[74] - The company incurred $1.7 million in capital expenditures for the nine months ended September 30, 2025, compared to $0.5 million in 2024[194] - Net cash provided by operating activities decreased to $957,000 for the nine months ended September 30, 2025, compared to $5.9 million for the same period in 2024[190] Research and Development - Research and development expenses for Q3 2025 were $549,000, slightly up from $462,000 in Q3 2024[21] - Research and development costs for the three months ended September 30, 2025, were $0.4 million in the Chemistry Technologies segment and $0.2 million in the Data Analytics segment, indicating continued focus on innovation[125] Market and Operational Insights - The company’s Chemistry Technologies segment aims to enhance profitability for hydrocarbon producers through optimized chemistry solutions[38] - The Data Analytics segment provides real-time insights to optimize operations and reduce emissions, utilizing advanced technologies[39] - The Company expects stable demand for its chemistry products in 2025, based on strong results in Q1 2025 and customer commitments[159] - The demand for natural gas is anticipated to increase over the next 12 to 24 months due to growth in natural gas exports and its use in electricity generation[160] Tax and Valuation - The Company had U.S. net operating loss carryforwards of $190.1 million as of September 30, 2025, with $40.6 million expiring from 2029 to 2037[98] - A full valuation allowance was no longer required for certain deferred tax assets as of September 30, 2025, resulting in a partial release totaling $29.7 million for the three months and $31.1 million for the nine months ended September 30, 2025[102] Compliance and Risk Management - The Company was in compliance with all applicable covenants under the ABL as of September 30, 2025[87] - The Company has identified risks that could materially affect its business and financial condition, as detailed in its risk factors[213]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 increased by 13% compared to Q3 2024, driven by a 232% increase in data analytics revenue and a 43% increase in external chemistry revenue [5][19] - Gross profit rose by 95% year-over-year, with gross profit margin reaching 32% in Q3 2025 [5][22] - Net income for the quarter was $20.4 million, significantly up from $2.5 million in the same quarter last year, with adjusted EBITDA increasing by 142% year-over-year [5][22] Business Line Data and Key Metrics Changes - Data analytics segment revenue represented 16% of total company revenue in Q3 2025, up from 5% in the year-ago quarter, with service revenues increasing by 625% [19][9] - The chemistry segment saw a 54% growth in external chemistry revenues, despite a 24% decline in active frac fleets [16][20] - PowerTech assets contributed $6.1 million in revenue during the quarter, leading to a 50% sequential increase in data analytics revenue [17][18] Market Data and Key Metrics Changes - International sales totaled $10 million for the first nine months of 2025, up 122% from the previous year [20] - The company anticipates a cautious optimism for 2026, despite potential commodity price volatility [16] Company Strategy and Development Direction - Flotek is transforming into a data-as-a-service business model, expanding its total addressable market and increasing market share in both business segments [4][5] - The company aims to leverage chemistry as a common value creation platform while focusing on high-margin data analytics revenue [25][26] - Flotek is committed to supporting the energy infrastructure sector, anticipating significant growth in high-margin data analytics revenue and cash flow [8][25] Management's Comments on Operating Environment and Future Outlook - Management noted that hydrocarbon demand fundamentals are expected to grow long-term, requiring substantial investment to maintain production levels [7][8] - The company is optimistic about its future, emphasizing the importance of innovation and tailored solutions to meet customer needs [8][25] - Management highlighted the successful integration of new technology and the positive impact on margins and profitability [24][25] Other Important Information - Flotek achieved zero lost-time incidents in field operations during the quarter, reflecting a strong commitment to safety [6] - The company increased its 2025 total revenue and adjusted EBITDA guidance ranges by 6% and 3%, respectively [6][23] Q&A Session Summary Question: What is the major factor determining the cadence of ramping up digital valuation units? - Management indicated that successful pilot programs have transitioned to commercial phases, which will drive multiple unit deployments starting in Q4 2025 [27][28] Question: Can you provide an update on customer conversations for third-party power services? - Management reported $2.1 million in revenue secured from additional customers, with ongoing testing and positive progress in customer adoption [32][33] Question: How does the GPA 2172 compliance impact the Expect Analyzer? - The compliance allows for the use of optical spectroscopy in custody transfer, significantly enhancing measurement accuracy and transparency for customers [40][41] Question: What is the outlook for the chemistry business, particularly in the Middle East? - Management expressed optimism about growth in the Middle East, anticipating positive impacts from recent contracts and ongoing discussions with major customers [43][44] Question: What are the expected efficiency gains from the Expect Analyzer? - The Expect Analyzer provides real-time analysis every five seconds, significantly improving measurement accuracy and reducing costs by up to 50% [45][46]

Financial Performance - Flotek Industries reported a significant increase in financial performance for 3Q25, with revenue reaching $56 million, a 13% increase compared to $49.7 million in 3Q24 [16] - Gross profit surged to $17.8 million, a 95% increase from $9.1 million in 3Q24 [16] - Net income increased dramatically to $20.4 million, a 704% increase compared to $2.5 million in the same quarter of the previous year [16] - Adjusted EBITDA rose to $11.7 million, a 142% increase from $4.8 million in 3Q24 [16] - Diluted EPS increased to $0.53, a 563% increase compared to $0.08 in 3Q24 [16] Data Analytics Growth - Data Analytics revenue experienced substantial growth, with a 232% increase compared to 3Q24, and 3Q25 Data Analytics revenue equaled full year 2024 [17] - Service revenue within Data Analytics grew by 625% since 3Q24 [31] - Data Analytics segment revenues grew to 16% of total revenue, up from 5% in 3Q24 [33] Chemistry Technologies - External chemistry revenue grew by 54% in 9MTD25 compared to 9MTD24 [52] - Total chemistry revenue increased by 21% (9MTD25 vs 9MTD24) despite a (24%) drop in average fleet count [54] Future Outlook - The company increased its 2025 revenue guidance to a range of $220 million - $225 million, representing a 19% increase compared to 2024 [22] - Adjusted EBITDA guidance was increased to a range of $35 million - $40 million, representing an 85% increase compared to 2024 [22] - The company's Power Services & Digital Valuation is building on $148 million in high-margin backlog through 2031 [10]

Core Insights - Flotek Industries reported quarterly earnings of $0.20 per share, exceeding the Zacks Consensus Estimate of $0.15 per share, and showing an increase from $0.08 per share a year ago, resulting in an earnings surprise of +33.33% [1] - The company achieved revenues of $56.03 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 12.40% and increasing from $49.74 million year-over-year [2] - Flotek Industries has outperformed the S&P 500, with shares rising approximately 82.1% since the beginning of the year compared to the S&P 500's gain of 16.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.17 on revenues of $51.65 million, and for the current fiscal year, it is $0.66 on revenues of $215.2 million [7] - The estimate revisions trend for Flotek Industries was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Chemical - Specialty industry, to which Flotek Industries belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, suggesting that the industry outlook may impact stock performance [8]

Financial Performance - Total revenues for Q3 2025 increased by 13% to $56.0 million, compared to $49.7 million in Q3 2024, driven largely by the Data Analytics segment[1][3] - Gross profit for Q3 2025 was $17.8 million, reflecting a 95% increase from $9.1 million in Q3 2024, resulting in a gross profit margin of 32% compared to 18% in the prior year[1][7] - Net income surged to $20.4 million, or $0.53 per diluted share, up from $2.5 million, or $0.08 per diluted share, in Q3 2024, including a $12.6 million tax benefit[1][10] - Adjusted EBITDA rose by 142% to $11.7 million in Q3 2025, marking the twelfth consecutive quarter of growth[1][11] - The Data Analytics segment achieved a revenue increase of 232% to $8.9 million, with service revenues growing over 625% to $7.2 million[1][8] - The Chemistry Technologies segment reported external revenues of $20.2 million, a 43% increase compared to Q3 2024[1][5] - Total revenues for the three months ended September 30, 2025, increased to $56,031 thousand, up 12.9% from $49,742 thousand in the same period of 2024[20] - Net income for the three months ended September 30, 2025, was $20,355 thousand, a significant increase from $2,532 thousand in the same period of 2024[23] - EBITDA for the three months ended September 30, 2025, was $9,675 thousand, compared to $3,045 thousand for the same period in 2024, reflecting a growth of 217%[23] Guidance and Projections - The company revised its 2025 guidance for total revenues to a range of $220-$225 million, up from the previous guidance of $200-$220 million[2] Expenses and Costs - SG&A expenses totaled $7.4 million for Q3 2025, representing 13% of revenues, up from $5.7 million or 11% of revenues in Q3 2024[1][9] - Research and development expenses for the nine months ended September 30, 2025, were $1,359 thousand, slightly up from $1,349 thousand in 2024[20] - The company reported interest expense of $1,351 thousand for the three months ended September 30, 2025, compared to $256 thousand in the same period of 2024, showing a substantial rise[23] - Stock compensation expense for the three months ended September 30, 2025, was $569 thousand, up from $272 thousand in the same period of 2024[23] - The company incurred non-recurring professional fees of $167 thousand for the three months ended September 30, 2025, compared to a benefit of $(50) thousand in the same period of 2024[23] Assets and Liabilities - Total assets increased to $212,687 thousand as of September 30, 2025, up from $170,796 thousand at December 31, 2024[19] - Current liabilities totaled $56,478 thousand, an increase from $50,368 thousand at December 31, 2024[19] - The company had a total stockholders' equity of $110,498 thousand as of September 30, 2025, down from $113,900 thousand at December 31, 2024[19] Cash Flow - Cash and cash equivalents at the end of the period were $4,603 thousand, compared to $4,997 thousand at the end of September 30, 2024[22] - Cash flows from operating activities for the nine months ended September 30, 2025, were $957 thousand, a decrease from $5,925 thousand in 2024[22] Tax and Amortization - The income tax benefit for the three months ended September 30, 2025, was $(12,612) thousand, contrasting with an expense of $37 thousand in the same period of 2024[23] - Depreciation and amortization for the three months ended September 30, 2025, totaled $581 thousand, compared to $220 thousand in the same period of 2024, reflecting an increase of 164%[23] - The amortization of contract assets for the three months ended September 30, 2025, was $1,294 thousand, compared to $1,592 thousand in the same period of 2024[23] Adjusted Metrics - The company believes that Adjusted EBITDA provides a clearer view of its leverage profile and debt service capacity, enhancing comparability for investors and analysts[23]

Core Insights - Flotek Industries, Inc. reported strong financial results for Q3 2025, demonstrating successful execution of its transformational strategy and robust growth across its segments [1][4]. Financial Performance - Total revenues for Q3 2025 reached $56.0 million, a 13% increase from $49.7 million in Q3 2024. For the nine months ended September 30, 2025, revenues were $169.7 million, up 25% from $136.3 million in the same period last year [2][7]. - Gross profit for Q3 2025 was $17.8 million, reflecting a 95% increase from $9.1 million in Q3 2024. The gross profit margin improved to 32% from 18% year-over-year [2][8]. - Net income surged to $20.4 million, or $0.53 per diluted share, compared to $2.5 million, or $0.08 per diluted share, in Q3 2024. This included a $12.6 million tax benefit [2][10]. - Adjusted EBITDA increased by 142% to $11.7 million in Q3 2025, marking the twelfth consecutive quarter of growth [2][11]. Segment Performance - The Chemistry Technologies segment saw external revenues grow by 43% year-over-year, with total revenues for the segment increasing by 17% to $152.3 million for the nine months ended September 30, 2025 [5][18]. - The Data Analytics segment achieved a remarkable 232% revenue increase in Q3 2025, with service revenues growing 625% to $7.2 million, driven by the adoption of advanced analytics solutions [5][18]. Guidance and Outlook - Flotek has revised its 2025 guidance, increasing total revenue expectations to a range of $220-$225 million and Adjusted EBITDA to $35-$40 million, based on strong year-to-date performance [4][7]. Operational Highlights - The company reported a gross profit margin of 32% for Q3 2025, attributed to the high-margin Data Analytics revenue, which constituted 16% of total revenues, up from 5% in Q3 2024 [7][8]. - The acquisition of mobile gas conditioning assets contributed $6.1 million to Q3 2025 revenue, enhancing overall performance [7][12].