Flotek (NYSE: FTK) doubles 2025 Adjusted EBITDA on data-driven growth
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Flotek Industries reported strong 2025 results with significant growth across its business. Full-year revenue rose to $237.3 million from $187.0 million, while gross profit increased 52% to $59.8 million. Net income jumped to $30.5 million with diluted EPS of $0.84, up from $0.34.
Adjusted EBITDA, using a stricter revised methodology, more than doubled to $32.8 million. Data Analytics was a key driver, with 2025 segment revenue of $27.5 million, up 210%, and accounting for about 48% of fourth-quarter gross profit. Chemistry Technologies also grew annual revenue despite a lower frac fleet count.
Fourth-quarter 2025 revenue reached $67.5 million, but quarterly net income declined to $3.0 million from $4.4 million, mainly due to tax effects tied to a valuation allowance release. Flotek highlighted a large, high-margin backlog in power services, including an estimated $146 million recurring revenue stream through 2031, and its first infrastructure and utilities power contract expected to start in Q2 2026.
Positive
- Profits scaled much faster than revenue in 2025. Revenue grew 27% to $237.3 million while net income rose 191% to $30.5 million and Adjusted EBITDA (revised) increased 123% to $32.8 million, showing strong operating leverage.
- High-margin Data Analytics is becoming a core earnings engine. Segment revenue rose 210% to $27.5 million and contributed about 48% of Q4 2025 gross profit versus 8% a year earlier, materially improving the margin profile.
- Power services and digital valuation add long-duration, recurring revenue. Management highlights an estimated $146 million Data Analytics power-services backlog through 2031, plus growing Data-as-a-Service and flare solutions revenue, supporting multi-year visibility.
- Execution against guidance appears strong. For the second consecutive year, the company hit or beat full-year targets, with 2025 revenue of $237.3 million above the $220–$225 million range and Adjusted EBITDA of $32.8 million within the $29–$34 million revised range.
Negative
- None.
Insights
Flotek delivered a step-change in profitability, driven by Data Analytics and recurring power-services revenue.
Flotek Industries showed a mature earnings profile in 2025. Revenue grew 27% to $237.3 million, but profit expanded much faster: net income rose 191% to $30.5 million and Adjusted EBITDA, under a tighter definition, increased 123% to $32.8 million. This indicates meaningful operating leverage.
Mix is shifting toward higher-margin Data Analytics. That segment’s revenue climbed 210% to $27.5 million, and it generated roughly 48% of fourth-quarter gross profit versus 8% a year earlier. Chemistry Technologies still grew annual revenue despite a 24% decline in average frac fleet count, suggesting share gains in a weaker market.
Strategic moves in power services and digital valuation add visibility. Management cites an estimated $146 million high-margin backlog from the PWRtek lease through 2031 and a utilities power contract expected to begin in Q2 2026. While fourth-quarter net income dipped on tax effects and interest expense increased with higher related-party debt, the company again met or exceeded its revenue and Adjusted EBITDA guidance, reinforcing execution credibility heading into its planned 2026 guidance update with first-quarter results.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of Exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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. ☐
Item 2.02 | Results of Operations and Financial Condition | ||||
On March 11, 2026, Flotek Industries, Inc. (the “Company”) issued a press release providing its financial results for the quarter and year-ended December 31, 2025 and announcing that it will hold a conference call to discuss its financial and operating results. The press release is furnished herewith as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information furnished pursuant to Item 2.02 of this Current Report on Form 8-K and in Exhibit 99.1 shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is not subject to the liabilities of that section and is not deemed incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as otherwise expressly stated in such filing.
Item 7.01 | Regulation FD Disclosure | ||||
On March 11, 2026, the Company provided on its website a presentation containing information relating to its current operations and financial results. A copy of the presentation is attached hereto as Exhibit 99.2 and is incorporated herein by reference.
The information furnished pursuant to Item 7.01 of this Current Report on 8-K and in Exhibit 99.2 shall not be deemed to be “filed” for the purposes of the Exchange Act, is not subject to the liabilities of that section and is not deemed incorporated by reference into any filing of the Company under the Securities Act or the Exchange Act, except as otherwise expressly stated in such filing.
Item 9.01 | Financial Statements and Exhibits. | ||||
d) Exhibits.
| Exhibit Number | Description | |||||||
| 99.1 | Press Release dated March 11, 2026 | |||||||
| 99.2 | Presentation of Flotek Industries, Inc. | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| FLOTEK INDUSTRIES, INC. | ||||||||
Date: March 11, 2026 | /s/ Bond Clement | |||||||
| Name: | Bond Clement | |||||||
| Title: | Chief Financial Officer | |||||||
Exhibit 99.1
Flotek Continues Data Driven Trajectory, Delivering Strongest Quarterly Revenue Since 2017
HOUSTON, March 11, 2026 - Flotek Industries, Inc. (“Flotek” or the “Company”) (NYSE: FTK) today announced operational and financial results for the fourth quarter and year ended December 31, 2025. A summary of key financial results for the fourth quarter and full year 2025 as compared to the year ago periods is as follows:
Financial Summary (in thousands, except ‘per share’ amounts)
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | % Change | 2025 | 2024 | % Change | ||||||||||||||||||||||||||||||
| Total Revenues | $ | 67,519 | $ | 50,758 | 33% | $ | 237,262 | $ | 187,025 | 27% | |||||||||||||||||||||||||
| Gross Profit | $ | 15,194 | $ | 12,277 | 24% | $ | 59,833 | $ | 39,386 | 52% | |||||||||||||||||||||||||
| Net Income | $ | 3,025 | $ | 4,429 | (32)% | $ | 30,528 | $ | 10,498 | 191% | |||||||||||||||||||||||||
| Diluted Income Per Share | $ | 0.08 | $ | 0.14 | (43)% | $ | 0.84 | $ | 0.34 | 147% | |||||||||||||||||||||||||
Full-Year and Fourth Quarter 2025 Highlights
•Highest quarterly and annual revenues since 2017.
•Data Analytics achieved its highest-ever quarterly and annual revenue.
•Strategic entry into power services in 2025 sets stage for high-margin, recurring revenue growth in 2026 and beyond.
•Gross profit climbed 24% vs. fourth quarter 2024 and 52% as compared to full year 2024.
•Data Analytics’ gross profit accounted for 48% of total Company gross profit during the fourth quarter of 2025, as compared to 8% in the year ago quarter.
•2025 net income totaled $30.5 million or $0.84 per diluted share, vs. $0.34 per diluted share in 2024.
Adjusted EBITDA Calculation Modification
The Company’s revenue, as reported under generally accepted accounting principles, includes a non-cash reduction related to the amortization of contract assets. Historically, the Company added back this non-cash revenue reduction in its calculation of Adjusted EBITDA.
Beginning with year-end 2025 reporting, the Company has revised its calculation of Adjusted EBITDA and will no longer add back the non-cash amortization of contract assets associated with the ProFrac Agreement in accordance with relevant Securities and Exchange Commission’s guidance on the disclosure of non-GAAP financial measures. Non-cash amortization of contract assets that would have been added back under the Company’s previous calculation of Adjusted EBITDA totaled $2.1 million and $1.3 million during the fourth quarters of 2025 and 2024, respectively, and $6.3 million and $5.6 million for the years ended December 31, 2025 and 2024, respectively. This revision does not impact debt covenants or the Company’s operating cash flow.
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The following table presents the Company’s Adjusted EBITDA for the quarter and year-end December 31, 2025 and 2024 using the revised methodology (in thousands):
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | % Change | 2025 | 2024 | % Change | ||||||||||||||||||||||||||||||
Adjusted EBITDA (Revised)(1)(2) | $ | 8,047 | $ | 5,752 | 40% | $ | 32,790 | $ | 14,715 | 123% | |||||||||||||||||||||||||
The Company’s previously issued 2025 Adjusted EBITDA(3) guidance of $35 million to $40 million was based on its historical calculation methodology. Reflecting the revised methodology described above, 2025 Adjusted EBITDA(3) guidance would have been approximately $29 million to $34 million. For comparison, Adjusted EBITDA using the revised methodology for the year ended December 31, 2025 totaled $32.8 million.
(1)Represents a non-GAAP financial measure, see the "Unaudited Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings" table in this release for more information about this measure, including reconciliations to the most comparable GAAP measures.
(2)Under the Company’s previous methodology of computing Adjusted EBITDA, the Company added back non-cash amortization of contract assets totaling $2.1 million and $1.3 million during the fourth quarters of 2025 and 2024, respectively, and $6.3 million and $5.6 million for the years ended December 31, 2025 and 2024, respectively.
(3)Represents a non-GAAP financial measure, see the "Unaudited Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings" table in this release for more information about this measure. We are not able to reconcile this forward-looking non-GAAP measure to the most directly comparable GAAP financial measure without unreasonable efforts, as we are unable to predict with a reasonable degree of certainty the impact of certain items that would be expected to impact the GAAP financial measure, including, among other items, certain stock-based compensation costs, interest costs related to fluctuations in borrowings outstanding under the Company’s asset based loan and the impact of the revaluation of certain liabilities, which is based upon our future stock price. These items do not impact the non-GAAP financial measure.
Management Commentary
Chief Executive Officer Dr. Ryan Ezell remarked, “Our fourth quarter results cap a transformative 2025 and reinforce Flotek’s data driven growth trajectory. Through the powerful convergence of real-time data analytics and chemistry solutions, we delivered standout performance across both segments. In 2025, Data Analytics grew exponentially while Chemistry outpaced the market in a challenging environment.
The April 2025 entry into power services represents a game-changing platform expansion, unlocking high-margin, recurring opportunities in utilities and beyond. With Data Analytics now contributing nearly 50% of gross profit, our business is more balanced, resilient, and scalable than ever. We enter 2026 with strong tailwinds, proven execution, a growing backlog of recurring revenue, and early validation in new markets that position us for even greater momentum.
Our 2025 results, including 191% growth in net income and a 123% increase in Adjusted EBITDA (1), were achieved safely and efficiently. The best is yet to come as we capitalize on these foundations to drive sustained, profitable expansion.”
Fourth Quarter and Full-Year 2025 Financial Results
Revenue: Flotek reported total revenues of $67.5 million for fourth quarter 2025, an increase of $16.8 million, or 33%, compared to total revenues of $50.8 million for fourth quarter 2024. Full-year 2025 total revenues totaled $237.3 million, as compared to total revenues of $187.0 million during 2024. Fourth quarter and full year 2025 revenues include $3.4 million and $27.4 million, respectively, related to the minimum purchase requirements under the Company’s long-term supply agreement with ProFrac Services, LLC.
2
Segment Revenue Summary (in thousands)
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | % Change | 2025 | 2024 | % Change | ||||||||||||||||||||||||||||||
| Chemistry Technologies: | |||||||||||||||||||||||||||||||||||
| External Revenues | $ | 14,791 | $ | 21,071 | (30)% | $ | 79,565 | $ | 63,214 | 26% | |||||||||||||||||||||||||
| Related Party Revenues | 42,659 | 27,215 | 57% | 130,221 | 114,947 | 13% | |||||||||||||||||||||||||||||
| Total | $ | 57,450 | $ | 48,286 | 19% | $ | 209,786 | $ | 178,161 | 18% | |||||||||||||||||||||||||
| Data Analytics: | |||||||||||||||||||||||||||||||||||
| Product Revenues | $ | 2,154 | $ | 825 | 161% | $ | 7,330 | $ | 4,745 | 54% | |||||||||||||||||||||||||
| Service Revenues | 7,915 | 1,647 | 381% | 20,146 | 4,119 | 389% | |||||||||||||||||||||||||||||
| Total | $ | 10,069 | $ | 2,472 | 307% | $ | 27,476 | $ | 8,864 | 210% | |||||||||||||||||||||||||
Gross Profit: The Company generated gross profit of $15.2 million during fourth quarter 2025 compared to a gross profit of $12.3 million during fourth quarter 2024. The improvement in fourth quarter 2025 gross profit was primarily the result of the 19% increase in chemistry revenue and a 307% increase in data analytics revenue, as compared to fourth quarter 2024. This meaningful shift toward higher-margin Data Analytics (now approximately 48% of Q4 gross profit) enhances our profitability profile and supports continued margin expansion as we scale in new markets.
The increase in fourth quarter 2025 gross profit was partially offset by a $5.2 million or 60% reduction in the order shortfall penalty under the Company's chemistry supply agreement, as compared to the year ago quarter. On a percentage of revenue basis, gross profit totaled 22.5% for the fourth quarter of 2025.
The Company generated gross profit of $59.8 million for full-year 2025 compared to gross profit of $39.4 million for full-year 2024. On a percentage of revenue basis, gross profit totaled 25% for the year ended December 31, 2025.
Selling, General and Administrative (“SG&A”) Expense: SG&A expense totaled $7.6 million for fourth quarter 2025 as compared to SG&A expense of $6.6 million for fourth quarter 2024. SG&A expense totaled $28.0 million for full-year 2025 compared to $24.7 million for full-year 2024. On a percentage of revenue basis, SG&A totaled 12% during 2025 as compared to 13% during 2024.
Net Income and EPS: Flotek reported net income of $3.0 million, or $0.08 per diluted share, for the fourth quarter 2025. This compares to net income of $4.4 million, or $0.14 per diluted share, for the fourth quarter 2024. The Company’s fourth quarter 2025 net income was impacted by a higher effective tax rate resulting from non-cash adjustments related to the partial release of the valuation allowance on deferred tax assets. Net income for full-year 2025 was $30.5 million, or $0.84 per diluted share, compared to net income of $10.5 million, or $0.34 per diluted share, for the comparable period of 2024. Net income for full year 2025 included a $10.9 million tax benefit related to the partial release of the Company's valuation allowance on its deferred tax assets recorded in the third quarter of 2025.
3
2026 Guidance
Consistent with 2025 and 2024, Flotek plans to issue 2026 guidance in conjunction with the release of its first quarter 2026 financial and operating results.
Upcoming Investor Events
Flotek will participate in the 38th Annual Roth Conference to be held at the Ritz Carlton in Dana Point, California, March 23-24, 2026. Flotek Chief Executive Officer Ryan Ezell will be joined by Chief Financial Officer Bond Clement in hosting investor meetings during the event. An updated corporate presentation to be used in discussions at the conference will be posted to the Investor Relations section of Flotek’s corporate website at www.flotekind.com prior to the start of the conference.
Below are some upcoming events where you may get the opportunity to meet with our team:
◦March 12th, 2026, 9am CT: Flotek 4th Qtr. & FY 2025 Earnings Conference Call
◦March 23–24th, 2026: 38th Annual ROTH Conference (Dana Point, CA)
◦May 26-28th, 2026: Louisiana Energy Conference 2026 (New Orleans, LA)
For more event details visit our Investor Relations page at https://ir.flotekind.com/events.
Conference Call Details
The Company plans to host its earnings conference call on Thursday, March 12, 2026, at 9:00 a.m. CT (10:00 a.m. ET).
Participants may access the call through Flotek’s website at https://ir.flotekind.com/events, by telephone toll free at 1-800-836-8184 (international toll: 1-646-357-8785), or by using the following link to access the webcast: https://app.webinar.net/BwpdmxQyN6M approximately five minutes prior to the start of the call. Following the conclusion of the conference call, a recording of the call will be available on the Company’s website.
About Flotek Industries, Inc.
Flotek Industries, Inc. is a leading chemistry and data technology company focused on servicing the Energy industry. The Company’s top tier technologies leverage near real-time data to deliver innovative solutions to maximize customer returns. Flotek has an intellectual property portfolio of over 130 patents, 20+ years of field and laboratory data, and a global presence in more than 59 countries.
Flotek has established collaborative partnerships focused on sustainable and optimized chemistry and data solutions, aiming to reduce the environmental impact of energy on land, air, water and people.
Flotek is based in Houston, Texas and its common shares are traded on the New York Stock Exchange under the ticker symbol “FTK.” For additional information, please visit www.flotekind.com.
Forward-Looking Statements
Certain statements set forth in this press release constitute forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
4
Exchange Act of 1934) regarding Flotek Industries, Inc.’s business, financial condition, results of operations and prospects. Words such as will, continue, expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this press release. Although forward-looking statements in this press release reflect the good faith judgment of management, such statements can only be based on facts and factors currently known to management. Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Further information about the risks and uncertainties that may impact the Company are set forth in the Company’s most recent filing with the Securities and Exchange Commission on Form 10-K (including, without limitation, in the “Risk Factors” section thereof), and in the Company’s other SEC filings and publicly available documents. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this press release.
Investor contact:
Mike Critelli
Director of Finance & Investor Relations
E: ir@flotekind.com
5
FLOTEK INDUSTRIES, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
| December 31, 2025 | December 31, 2024 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 5,731 | $ | 4,404 | |||||||
| Restricted cash | 104 | 102 | |||||||||
Accounts receivable, net of allowance for credit losses of $764 and $447 at December 31, 2025 and December 31, 2024, respectively | 19,043 | 17,386 | |||||||||
Accounts receivable, related party, net of allowance for credit losses of $0 at December 31, 2025 and December 31, 2024 | 64,204 | 52,370 | |||||||||
| Inventories, net | 10,629 | 13,303 | |||||||||
| Other current assets | 3,445 | 2,952 | |||||||||
| Current contract asset | 7,621 | 5,939 | |||||||||
| Total current assets | 110,777 | 96,456 | |||||||||
| Long-term contract asset | 55,115 | 63,105 | |||||||||
| Property and equipment, net | 20,344 | 6,178 | |||||||||
| Right-of-use assets | 3,083 | 3,326 | |||||||||
| Deferred tax assets, net | 29,152 | 51 | |||||||||
| Other long-term assets | 1,578 | 1,680 | |||||||||
| TOTAL ASSETS | $ | 220,049 | $ | 170,796 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 48,317 | $ | 38,073 | |||||||
| Accrued liabilities | 7,256 | 5,912 | |||||||||
| Income taxes payable | 258 | 48 | |||||||||
| Interest payable, related party | 1,008 | — | |||||||||
| Current portion of operating lease liabilities | 1,251 | 1,486 | |||||||||
| Current portion of finance lease liabilities | 153 | — | |||||||||
| Asset-based loan | 3,332 | 4,789 | |||||||||
| Current portion of long-term debt | — | 60 | |||||||||
| Total current liabilities | 61,575 | 50,368 | |||||||||
| Deferred revenue, long-term | — | 14 | |||||||||
| Note payable - related party | 39,584 | — | |||||||||
| Long-term operating lease liabilities | 5,608 | 6,514 | |||||||||
| Long-term finance lease liabilities | 224 | — | |||||||||
| TOTAL LIABILITIES | 106,991 | 56,896 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders’ equity: | |||||||||||
| Preferred stock, $0.0001 par value, 100,000 shares authorized; no shares issued and outstanding | — | — | |||||||||
Common stock, $0.0001 par value, 240,000,000 shares authorized; 31,320,960 shares issued and 30,130,480 shares outstanding at December 31, 2025; 30,938,073 shares issued and 29,826,508 shares outstanding at December 31, 2024 | 3 | 3 | |||||||||
| Additional paid-in capital | 434,964 | 464,620 | |||||||||
| Accumulated other comprehensive income | 96 | 251 | |||||||||
| Accumulated deficit | (285,780) | (316,308) | |||||||||
Treasury stock, at cost; 1,190,480 and 1,111,565 shares at December 31, 2025 and December 31, 2024, respectively | (36,225) | (34,666) | |||||||||
| Total stockholders’ equity | 113,058 | 113,900 | |||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 220,049 | $ | 170,796 | |||||||
6
FLOTEK INDUSTRIES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Revenue from external customers | $ | 17,890 | $ | 23,328 | $ | 90,436 | $ | 71,263 | |||||||||||||||
| Revenue from related party | 49,629 | 27,430 | 146,826 | 115,762 | |||||||||||||||||||
| Total revenues | 67,519 | 50,758 | 237,262 | 187,025 | |||||||||||||||||||
| Cost of goods sold | 52,325 | 38,481 | 177,429 | 147,639 | |||||||||||||||||||
| Gross profit | 15,194 | 12,277 | 59,833 | 39,386 | |||||||||||||||||||
| Operating costs and expenses: | |||||||||||||||||||||||
| Selling, general, and administrative | 7,606 | 6,630 | 28,046 | 24,709 | |||||||||||||||||||
| Asset acquisition expenses | — | — | 4,362 | — | |||||||||||||||||||
| Depreciation | 629 | 229 | 1,836 | 891 | |||||||||||||||||||
| Research and development | 463 | 365 | 1,822 | 1,714 | |||||||||||||||||||
| Severance expenses | 508 | — | 530 | — | |||||||||||||||||||
| Gain on sale of property and equipment | — | (90) | (7) | (124) | |||||||||||||||||||
| Total operating costs and expenses | 9,206 | 7,134 | 36,589 | 27,190 | |||||||||||||||||||
| Income from operations | 5,988 | 5,143 | 23,244 | 12,196 | |||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||
| Interest expense | (1,374) | (253) | (3,937) | (1,095) | |||||||||||||||||||
| Other income (expense), net | 69 | (105) | 348 | 46 | |||||||||||||||||||
| Total other expense | (1,305) | (358) | (3,589) | (1,049) | |||||||||||||||||||
| Income before income taxes | 4,683 | 4,785 | 19,655 | 11,147 | |||||||||||||||||||
| Income tax benefit (expense) | (1,658) | (356) | 10,873 | (649) | |||||||||||||||||||
| Net income | $ | 3,025 | $ | 4,429 | $ | 30,528 | $ | 10,498 | |||||||||||||||
| Income per common share: | |||||||||||||||||||||||
| Basic | $ | 0.08 | $ | 0.15 | $ | 0.90 | $ | 0.36 | |||||||||||||||
| Diluted | $ | 0.08 | $ | 0.14 | $ | 0.84 | $ | 0.34 | |||||||||||||||
| Weighted average common shares: | |||||||||||||||||||||||
| Weighted average common shares used in computing basic income per common share | 36,023 | 29,642 | 33,903 | 29,534 | |||||||||||||||||||
| Weighted average common shares used in computing diluted income per common share | 38,268 | 31,436 | 36,156 | 30,889 | |||||||||||||||||||
7
FLOTEK INDUSTRIES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
| Twelve Months Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 30,528 | $ | 10,498 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Change in fair value of contingent consideration | (127) | 71 | |||||||||
| Amortization of contract assets | 6,308 | 5,612 | |||||||||
| Depreciation | 1,836 | 891 | |||||||||
| Amortization of deferred financing costs | 345 | 314 | |||||||||
| Provision for credit losses, net of recoveries | 603 | 181 | |||||||||
| Provision for excess and obsolete inventory | 442 | 645 | |||||||||
| Gain on sale of property and equipment | (7) | (124) | |||||||||
| Non-cash lease expense | 1,025 | 2,094 | |||||||||
| Stock compensation expense | 2,300 | 1,366 | |||||||||
| Deferred income tax (benefit) expense | (11,185) | 249 | |||||||||
| Changes in current assets and liabilities: | |||||||||||
| Accounts receivable | (2,260) | (3,880) | |||||||||
| Accounts receivable, related party | (36,634) | (17,801) | |||||||||
| Inventories | 3,066 | (1,110) | |||||||||
| Income tax receivable | (32) | 8 | |||||||||
| Other assets | (473) | 561 | |||||||||
| Accounts payable | 10,244 | 6,368 | |||||||||
| Accrued liabilities | 1,457 | (70) | |||||||||
| Operating lease liabilities | (1,450) | (2,515) | |||||||||
| Income taxes payable | 210 | 3 | |||||||||
| Interest payable, related party | 1,008 | — | |||||||||
| Net cash provided by operating activities | 7,204 | 3,361 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Capital expenditures | (1,984) | (1,940) | |||||||||
| Proceeds from sale of assets | 7 | 124 | |||||||||
| Net cash used in investing activities | (1,977) | (1,816) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Payments on long term debt | (60) | (179) | |||||||||
| Proceeds from asset-based loan | 186,950 | 166,950 | |||||||||
| Payments on asset-based loan | (188,407) | (169,653) | |||||||||
| Payment of asset-based loan origination costs | (169) | (164) | |||||||||
| Payment of note payable issuance costs | (480) | — | |||||||||
| Payment of issuance costs of stock warrants | (653) | — | |||||||||
| Payments to tax authorities for shares withheld from employees | (1,559) | (162) | |||||||||
| Proceeds from issuance of stock under Employee Stock Purchase Plan | 155 | 114 | |||||||||
| Proceeds from issuance of stock from stock option exercises | 576 | — | |||||||||
| Payments for finance leases | (96) | (22) | |||||||||
| Net cash used in financing activities | (3,743) | (3,116) | |||||||||
| Effect of changes in exchange rates on cash and cash equivalents | (155) | 124 | |||||||||
| Net change in cash and cash equivalents and restricted cash | 1,329 | (1,447) | |||||||||
| Cash and cash equivalents at the beginning of period | 4,404 | 5,851 | |||||||||
| Restricted cash at the beginning of period | 102 | 102 | |||||||||
| Cash and cash equivalents and restricted cash at beginning of period | 4,506 | 5,953 | |||||||||
| Cash and cash equivalents at end of period | 5,731 | 4,404 | |||||||||
| Restricted cash at the end of period | 104 | 102 | |||||||||
| Cash and cash equivalents and restricted cash at end of period | $ | 5,835 | $ | 4,506 | |||||||
8
FLOTEK INDUSTRIES, INC.
UNAUDITED RECONCILIATION OF NON-GAAP ITEMS AND NON-CASH ITEMS IMPACTING EARNINGS
(in thousands)
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net income | $ | 3,025 | $ | 4,429 | $ | 30,528 | $ | 10,498 | |||||||||||||||
| Interest expense | 1,374 | 253 | 3,937 | 1,095 | |||||||||||||||||||
| Income tax (benefit) expense | 1,658 | 356 | (10,873) | 649 | |||||||||||||||||||
| Depreciation and amortization | 629 | 229 | 1,836 | 891 | |||||||||||||||||||
EBITDA (Non-GAAP) (1) | $ | 6,686 | $ | 5,267 | $ | 25,428 | $ | 13,133 | |||||||||||||||
| Stock compensation expense | 594 | 451 | 2,300 | 1,366 | |||||||||||||||||||
| Severance and retirement | 508 | 7 | 575 | 39 | |||||||||||||||||||
| Contingent liability revaluation | — | 117 | (127) | 71 | |||||||||||||||||||
| Gain on disposal of asset | — | (90) | (7) | (124) | |||||||||||||||||||
Non-Recurring professional fees (2) | 259 | — | 4,621 | 230 | |||||||||||||||||||
Adjusted EBITDA (Non-GAAP) (1) | $ | 8,047 | $ | 5,752 | $ | 32,790 | $ | 14,715 | |||||||||||||||
(1)Management believes that EBITDA and Adjusted EBITDA for the three and twelve months ended December 31, 2025 and 2024 are useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods. Management views the adjustments made to net income for certain non-cash or non-recurring items noted above to be outside of the Company’s normal operating results. Management analyzes operating results without the impact of the above items as an indicator of performance, to identify underlying trends in the business and cash flow from continuing operations, and to establish financial, compensation and operational objectives. In addition, the Company believes that Adjusted EBITDA provides investors, creditors and analysts with a clearer view of the Company’s leverage profile and debt service capacity, enhancing comparability and augmenting the ability of investors, creditors and analysts to make investment decisions based upon liquidity. Under the Company’s previous methodology of computing Adjusted EBITDA, the Company added back non-cash amortization of contract assets. Adjusted EBITDA as presented above does not add back non-cash amortization of contract assets totaling $2.1 million and $1.3 million during the fourth quarters of 2025 and 2024, respectively, and $6.3 million and $5.6 million for the years ended December 31, 2025 and 2024, respectively.
(2)Includes $4.4 million of expenses related to an asset acquisition for the twelve months ended December 31, 2025.
9
Q4 & Full Year 2025 Earnings Presentation March 12, 2026
Forward-Looking Statements Certain statements set forth in this presentation constitute forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) regarding Flotek Industries, Inc.’s business, financial condition, results of operations and prospects. Words such as will, continue, expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this presentation. Although forward-looking statements in this presentation reflect the good faith judgment of management, such statements can only be based on facts and factors currently known to management. Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Further information about the risks and uncertainties that may impact the Company are set forth in the Company’s most recent filing with the Securities and Exchange Commission on Form 10-K and Form 10-Q (including, without limitation, in the "Risk Factors" section thereof), and in the Company’s other SEC filings and publicly available documents. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this presentation. This presentation includes certain non-GAAP measures. Please refer to the reconciliations provided in the earnings press release and the appendix in this presentation for the most comparable GAAP measure. // 2
Flotek Industries (FTK) Industry: Energy & Technology 2024 2025 Revenue (MM) $187.0 $237.3 Gross Margin 21% 25% Adj. EBITDA(MM)*** $14.7 $32.8 Diluted EPS $0.34 $0.84 Market Cap. (MM): $520* Leverage Ratio : 1.3x Shares Out. (MM): 30.1 Float (MM): ~14.0 // 3 Flotek Industries AN INDUSTRIALIZED PIVOT TO DATA DRIVEN GROWTH * As of 12/31/2025 Flotek: Turnaround Story • Leadership: New Executive Team 2023: Common Stock +363%** through 2025 • Growing Profits: FY 2025 YoY Gross Profit was up 52% • Proven Momentum: 3 Straight Years of Adjusted EBITDA*** Growth The Convergence of Real-time Data & Chemistry • Cycle-Resistant Revenue: Long-term contracts shield against O&G volatility • Differentiated Tech: Innovative Data and Chemistry solutions deliver superior value • 2026 Growth Catalyst: PWRtek unlocks high-margin recurring revenue Proprietary Tech Fuels Recurring, High-Margin Growth • PWRtek TM : Optimized asset protection on mobile gas-powered services • XSPCT TM : First custody transfer NIR analyzer to achieve GPA 2172 standard • VeraCal TM : Top OOOOb EPA-certified flare monitoring solution • Market Creation: Expanded annual addressable market by >$3B in 2025 $2.50 $4.50 $6.50 $8.50 $10.50 $12.50 $14.50 $16.50 $18.50 **New CEO Announced: June 6, 2023 closing Stock Price: $3.72 compared to December 31, 2025 closing stock price: $17.23 ***Adjusted EBITDA is a non-GAAP measure. See the Appendix in this presentation for a reconciliation to the most comparable GAAP measure. 2023 2024 2025 363%
92% 8% 2024 69% 31% 2025 Continued Profitability Growth // 4 THE CONVERGENCE OF REAL-TIME DATA AND CHEMISTRY SOLUTIONS Transforming business through real-time data, monitoring and process control across the energy & infrastructure value chain utilizing proprietary technologies Data Analytics Sustainable chemistry solutions to maximize customer’s value chain while minimizing their environmental impact Chemistry Technologies FLOTEK INDUSTRIES PROFILE: Founded: 1985 Employees: 160 Headquarters: Houston Patents: >130 Gross Profit Margin Segment Comparison: $59.8MM$39.4MM
TOTAL ADDRESSABLE MARKET EXCEEDING $15B PER YEAR COMPLETION CHEMISTRY (PCMTM) // 5 Market Expansion Through Strategic Execution DIGITAL VALUATION (XSPCT TM) MOBILE POWER GENERATION FLARE MONITORING (VERACALTM) GRID & DATA CENTER POWER GENERATION Water Treatment
$(29.5) $(3.5) $14.7 $32.8 -5% 13% 21% 25% -7% -2% 3% 8% 13% 18% 23% 28% $(30.0) $(20.0) $(10.0) $- $10.0 $20.0 $30.0 $40.0 2022 2023 2024 2025 2026 G ro ss M ar gi n A dj . E BI TD A * ($ M M ) Gross Margin // 6 Real-Time Data & Chemistry Ignite Growth * Adjusted EBITDA is a non-GAAP measure. See the Appendix in this presentation for a reconciliation to the most comparable GAAP measure 10yr Supply Contract Secured New Executive Leadership Launched PWRtekTM & XSPCTTM Data Analytics Upstream Market Entry HIGH-MARGIN ACCELERATION UNLOCKS FUTURE SHAREHOLDER VALUE First Utilities Contract G RO W TH O PP O RT U N IT Y TURNAROUND FOUNDATION LEADERSHIP CATALYST DATA BREAKTHROUGH HIGH-MARGIN RAMP EXPLOIT NEW MARKETS
• Highest quarterly and annual revenues since 2017 • Data Analytics achieved its highest-ever quarterly and annual revenue • Total company gross profit grew 52% year over year • Data Analytics 4Q25 gross profit accounted for 48% of total company gross profit, compared to 8% in 4Q24 • On 3/3/26 Flotek announced its first power contract to support utility infrastructure Flotek 2025 Highlights // 7 GROWTH TRAJECTORY CONTINUES IN REVENUE AND ADJ. EBITDA* * Adjusted EBITDA is a non-GAAP measure. See the Appendix in this presentation for a reconciliation to the most comparable GAAP measure In $MM 2025 2024 % Change Revenue $ 237.3 $ 187.0 27% Gross Profit $ 59.8 $ 39.4 52% Net Income $ 30.5 $ 10.5 191% Adj. EBITDA* $ 32.8 $ 14.7 123% Diluted EPS $ 0.84 $ 0.34 147%
Results vs. Guidance // 8 * Adjusted EBITDA is a non-GAAP measure. See the Appendix in this presentation for a reconciliation to the most comparable GAAP measure ** A non-GAAP measure. See the “Unaudited Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings” tables in the appendix for more information about this measure. We are unable to reconcile this forward-looking non-GAAP measure to the most directly comparable GAAP measure without unreasonable efforts, as we are unable to predict with a reasonable degree of certainty the impact of certain items that would be expected to impact the GAAP measure, including, among other items, certain stock-based compensation costs, interest costs related to fluctuations in borrowings outstanding under the Company’s asset based loan and the impact of the revaluation of certain liabilities, which is based upon our future stock price. These items do not impact the non-GAAP measure. 2ND CONSECUTIVE YEAR HITTING OR BEATING GUIDANCE METRICS FY 2025 GUIDANCE Metric Guidance Range 2025 Result Vs. 2024 Total Revenue: $220MM - $225MM $237.3MM +27% Adj. EBITDA**: $29MM - $34MM $32.8MM* +123% • Increased guidance ranges (vs 1Q25 initial estimates) on total revenue and Adj. EBITDA** by 6% and 3%, respectively
Data Analytics (DA) // 9
Data Analytics: “Measure More Strategy” Upstream • Power Services: facilitates natural gas utilization in powering turbines and dual-fuel engines • Digital Valuation: delivers real-time product values for faster & more accurate Custody Transfer reporting • Flare Monitoring: assisting in the compliance of EPA regulations and enhanced flare efficiency control • Chemical Treatment: Autonomous & Continuous completion chemistry monitoring & treatment Midstream • Gas/Oil processing plant control and optimization • TransMix Pipeline batch detection to optimize pipeline transfer processes • Vapor Pressure Monitoring controls to achieve product specifications • Chemical Treatment: Autonomous & Continuous production/water chemistry monitoring & treatment Downstream • Process Controls: to optimize distillation tower efficiency • Chemical Quality Measurements in pipelines and terminals • Carbon Capture measurement for carbon credits and reporting UTILIZING TECHNOLOGIES FOR EXPANSION INTO NEW MARKETS // 10 Growth Emerging Markets 2026
SERVICE REVENUE* GREW 381% SINCE Q4 2024 Data Analytics High Margin Revenue Growth • 4Q25 DA revenues exceeded full year 2024 DA revenues • DA Gross Profit in 2025 was greater than 2x all of 2024 DA revenues • 2026 revenues attributable to PWRtekTM expected to exceed $27mm PWRtek Acquisition // 11 $0.9 $1.6 $1.8 $1.7 $2.2 $1.6 $1.0 $4.1 $7.2 $7.9 39% 38% 63% 71% 73% 0% 10% 20% 30% 40% 50% 60% 70% 80% $- $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 4Q24 1Q25 2Q25 3Q25 4Q24 Product Revenue Service Revenue Gross Profit % *Service revenues include rental related revenues
Data Analytics: Recurring Revenue Backlog // 12 • Digital Valuation services launched first revenue- generating Data-as-a-Service installations in 2Q25, boosting future growth opportunity • Digital Valuation and other recurring services revenue now expected to exceed $2MM in 2026 • 2026 revenue backlog expected to exceed 2025 total segment revenue • Power Services' lease agreement generates $146MM** in high-margin backlog through 2031 POWER SERVICES SIGNIFICANTLY IMPROVES ANNUAL REVENUE BACKLOG $30.8 $29.1 $28.2 $28.2 $27.4 $- $5 $10 $15 $20 $25 $30 $35 2026 2027 2028 2029 2030 Co nt ra ct ed R ec ur rin g Re ve nu e ($ M M ’s ) Data Analytics Recurring Contracted Backlog* *Includes PWRtek Lease Agreement and annual contractual services **January 1, 2026 through April 2031; assumes rental revenue in the 6th year is consistent to the fixed rates of year 5 (year 6 subject to prevailing market rates)
Data Analytics: Power Services // 13 • Protects mobile gas-powered engines • Controls OEM engines to optimize efficiency and reduce maintenance downtime • Enables field gas as a cost-effective alt. to diesel or CNG • Delivers accurate, real-time BTU monitoring for precise royalty reporting and payment • Enhances safety and operational control through advanced warning and shutoff technology • Lab quality data in hostile and remote conditions PWRTEK’S PATENTED TECHNOLOGY ENABLES SCALABLE, GRID-FREE ENERGY TM Smart Filtration Skid PWRtek Digital Interface and Controls
Data Analytics: Power Services Update // 14 FIRST INFRASTRUCTURE & UTILITIES POWER CONTRACT WAS WON IN Q1 2026 Key Contract Terms: • Up to 50 MW deployment for federal disaster recovery • Estimated to be $1 million in revenue per mega watt • 6-month initial term: expected to start in Q2 2026 with customer option to extend 4 years • Proprietary PWRtekTM reduces risks from variable gas quality in harsh conditions • Engaged with potential mobile gas power third-party providers to partner with us Progress & Momentum: • First site visit completed March 9-11th, 2026 • Expected 25-35% total project gross margins, with PWRtek Assets grossing >80% margins • Positions Flotek for recurring, high-margin growth in utilities & infrastructure Win Extension Deployment Power Load Assessment Site Visits & Selection Contract Award Proposal
Data Analytics: Digital Valuation Update // 15 • In 2025, we introduced the XSPCTTM analyzer for custody transfer • In Nov 2025, the XSPCTTM was the first optical spectrometer to successfully comply with the GPA 2172 standard • 25 digital valuation analyzers now active at year end • Ended 2025 with >$120k/month in growing recurring revenue • We estimate an annual Total Addressable Market >$2B* XSPCTTM CONTINUES TO EXPAND DATA ANALYTICS DAAS REVENUE XSPCT Analyzer Installed on customer location *TAM assumes 60k potential locations with $45k recurring revenue per site per year.
Data Analytics: VeraCal Flare Solution // 16 LEADING FLARE OOOOb/c MEASUREMENT SOLUTION Pictured above: The proprietary VeraCal mobile flaring cart on location 2025 Financial Lookback • $2.2MM in 2025 total revenue, of which $900K in rental revenues • Produced ~60% Gross Margins on total revenues Compliance Approval on Flaring Measurement Application • VeraCal was the first EPA approved alt. measurement solution • Current US administration has rolled back enforcement reducing market demand • International regulation has shown improved customer demand Our Flare Measurement System is Differentiated • Rugged, simple installation on Combustor, Flare, VRU or ECD • Continuous and autonomous monitoring • No consumable calibration gas
Chemistry Technologies (ECT) // 17
Chemistry Growth in a Contracting Market // 18 • 25% increase in total ECT revenue** (2025 vs 2024) despite a (24%) drop in avg. fleet count • Fleet counts on Dec. 31st, 2024: 201 vs. Dec. 31st, 2025: 154 FLOTEK GAINS MARKET SHARE IN A CONTRACTING MARKET *Related Party Chemistry Technology revenues exclude the order shortfall payment “OSP” **Chemistry Technology Revenue excludes Related Party order shortfall payment “OSP” ***Fleet Count numbers sourced from Primary Vision 44% 56% FY2025 Chemistry Revenue** External Related Party* $146 $182 242 184 150 160 170 180 190 200 210 220 230 240 250 $100 $110 $120 $130 $140 $150 $160 $170 $180 $190 $200 2024 2025 Av g. F ra c F le et C ou nt * ** Re ve nu e ($ M M ) Total Chemistry Revenue** Chemistry Revenue** Avg. Frac Fleet Count
// 19 • Prescriptive Chemistry Management (PCM)TM – Proprietary energy chemistry solutions – Experienced chemistry energy team – Customized solutions to each well’s geology • AI Driven Analytics from >20,000 wells • 10+ Years with no HSE recordable incidents • Real-Time Field Data to Enhance Performance • Field Correlated Diagnostics • +130 Patents DELIVERING TOP TIER WELL PERFORMANCE IN INDUSTRY Chemistry Technologies: Competitive Advantage
Maximizing Customer Return on Investment Data Analytics/Physics Based Modeling on >20k Wells • +10 years Field Completion Data • Reservoir Similarities and Physicochemical Properties • Production Uplift Curve Analysis • Basin Water and Frac Water Properties A Decade of Data with Predictive Models • Polymer Viscosity & Friction Reduction Predictions • Clay Stabilization Analytics • Scale Inhibitor Database • Formation Damage Mechanism Identification Aligning Support with Vendors and Customers • Leverage vendor data where applicable • Utilize databases to streamline analytical procedures DATA-DRIVEN GEOCENTRIC MODELING DELIVERS PRECISION CHEMISTRY SOLUTIONS // 20
// 21
// 22 38th Annual ROTH Conference March 23-24th 2026 Ritz-Carlton Laguna Niguel, CA Louisiana Energy Conference May 26-28th 2026 Four Seasons New Orleans, LA Planet MicroCap 2026 June 16-18th 2026 Bellagio Hotel & Casino Las Vegas, NV Enercom Denver August 17-19th 2026 The Westin Denver, CO Investor Contact: Mike Critelli Director of Finance & Investor Relations ir@flotekind.com Upcoming 2026 Events JOIN US
Appendix
Data Analytics: Power Services // 24 PATENTED TECHNOLOGY ENABLES SCALABLE, LOW COST, GRID-FREE ENERGY, & ENGINE PROTECTION City Gas CNG Field Gas Waste/Biogas Measure Control Distribute Reciprocating Engine Gas Turbine Engine Control Module BTU CH4 Number HHV LHV Wobbe Index H2S and CO2 Volume Density ESD Protection Liquids Separation Blending Scrubbing Durability Efficiency Smaller Footprint Emissions Pressure Temperature Plug N Play Redundancy Optimize Volume Diesel (Blending Substitute) Alternative Fuel Source Incumbent Fuel Source
We tested against Traditional Gas Chromatography (GC) • Zero GC Samples matched the 60-day Average Gas BTU Value • 20-25% swings in “Associated Gas” BTU value • 16% Variances within manual sampling processes • Missed High Value Liquids on “dry gas” wells Data Analytics: Digital Valuation Solution // 25 INITIAL PENETRATION INTO SIGNIFICANT UPSTREAM APPLICATIONS No Shelter, No Calibration Gas, Remotely/Continuously Monitored San Antonio Houston Example: 60 days of real-time BTU Values; demonstrates extreme variability. GC Spot Sample Lab Test $4.4MM* ANNUAL PROCEEDS IMPACT PER UNIT *$2.50 $/MMbtu @ 15mmscf/D
Liquids In “Dry Associated Gas” // 26 $1.4MM* IN POTENTIAL ASSOCIATED GAS PROCEEDS High-Value Liquids Found in “Dry Gas” Typical Spectral Response for Associated Gas During Trial Water • Associated gas is “assumed” to be dry gas • GCs remove any liquids prior to measurement • Operators and mineral owners are not being compensated for “carry-over” products Liquids In “Dry Associated Gas” Line *$2.50 $/MMbtu @ 15mmscf/D
Data Analytics: XSPCT GPA 2172 // 27 FIRST OPTICAL SPECTROMETER TO MEET GPA 2172 CUSTODY TRANSFER STANDARD What Does This Mean? 1. XSPCT can operate at the same precision levels expected from online GC (autosampler) 2. XSPCT units meet ATSM standards for Digital Valuation of Hydrocarbons (Custody Transfer) 3. Reduced barrier for Customer Adoption
Data Analytics: XSPCT GPA 2172 // 28 FIRST OPTICAL SPECTROMETER TO MEET GPA 2172 CUSTODY TRANSFER STANDARD GPA 2172 (API 14.5) is the O&G industry standard for calculating gross heating value (GHV), relative density, and compressibility factor from compositional analysis GPA 2172-19 (API 14.5): • Defines how to calculate GHV and related properties from measured composition • Used directly in custody transfer billing • Recognizes that sample analysis may come from GPA 2261 GC or other technically acceptable methods, including optical spectroscopy that meet reproducibility requirements GPA 2261-20 (Gas Chromatography Analysis): • Sets criteria for reproducibility and performance acceptance between labs/instruments • FTK NIR methods (per GPA 2119 / ASTM D6122) are benchmarked against these limits GPA 2119-24 (Optical Spectroscopy Analysis): • Defines how optical spectroscopy can be used to determine hydrocarbon composition • This is the direct validation pathway for FTK analyzers ASTM D6122: • Provides validation procedures for multivariate NIR/IR analyzers • Ensures models meet performance standards before being accepted for use
// 29 Recent Financials Unaudited Condensed Consolidated Balance Sheets (in thousands, except per share data)
Recent Financials Unaudited Condensed Consolidated Statement of Operations (in thousands, except per share data) // 30
// 31 Recent Financials Unaudited Condensed Consolidated Statements of Cash Flows (in thousands)
// 32 1) Management believes that EBITDA and Adjusted EBITDA for the three and twelve months ended December 31, 2025 and 2024 are useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods. Management views the adjustments made to net income for certain non-cash or non-recurring items noted above to be outside of the Company’s normal operating results. Management analyzes operating results without the impact of the above items as an indicator of performance, to identify underlying trends in the business and cash flow from continuing operations, and to establish financial, compensation and operational objectives. In addition, the Company believes that Adjusted EBITDA provides investors, creditors and analysts with a clearer view of the Company’s leverage profile and debt service capacity, enhancing comparability and augmenting the ability of investors, creditors and analysts to make investment decisions based upon liquidity. Adjusted EBITDA as presented above does not add back non-cash amortization of contract assets totaling $2.1 million and $1.3 million during the fourth quarters of 2025 and 2024, respectively, and $6.3 million and $5.6 million for the years ended December 31, 2025 and 2024, respectively. 2) Includes $4.4 million of expenses related to an asset acquisition for the twelve months ended December 31, 2025. Recent Financials Unaudited Reconciliation of Non-GAAP Items & Non-Cash Items Impacting Earnings (in thousands)(1)
// 33 1) Management believes that EBITDA and Adjusted EBITDA for the twelve months ended December 31, 2025, 2024, 2023 and 2022 are useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods. Management views the adjustments made to net income for certain non-cash or non-recurring items noted above to be outside of the Company’s normal operating results. Management analyzes operating results without the impact of the above items as an indicator of performance, to identify underlying trends in the business and cash flow from continuing operations, and to establish financial, compensation and operational objectives. In addition, the Company believes that Adjusted EBITDA provides investors, creditors and analysts with a clearer view of the Company’s leverage profile and debt service capacity, enhancing comparability and augmenting the ability of investors, creditors and analysts to make investment decisions based upon liquidity. Adjusted EBITDA as presented above does not add back non-cash amortization of contract assets totaling $3.4 million, $5.0 million, $5.6 million and $6.3 million for the years ended December 31, 2022, 2023, 2024 and 2025, respectively. 2) Includes $4.4 million of expenses related to an asset acquisition for the twelve months ended December 31, 2025. Recent Financials Unaudited Reconciliation of Non-GAAP Items & Non-Cash Items Impacting Earnings (in thousands)(1)
FAQ
How did Flotek (FTK) perform financially in full-year 2025?
Flotek delivered strong 2025 growth, with revenue rising to $237.3 million from $187.0 million. Gross profit increased 52% to $59.8 million, while net income nearly tripled to $30.5 million and diluted EPS climbed to $0.84 from $0.34.
What drove Flotek’s profit and margin expansion in 2025?
Profit expansion was driven by higher volumes and mix shift toward Data Analytics. Adjusted EBITDA (revised) more than doubled to $32.8 million. Data Analytics’ 2025 revenue increased 210% to $27.5 million and contributed around 48% of fourth-quarter gross profit, lifting overall margins.
How did Flotek’s Data Analytics segment perform in 2025?
Data Analytics showed rapid growth, with 2025 revenue rising to $27.5 million from $8.9 million, a 210% increase. Fourth-quarter 2025 Data Analytics revenue reached $10.1 million, up 307% year over year, and the segment delivered high gross margins and growing recurring revenue streams.
What were Flotek’s fourth-quarter 2025 results compared to 2024?
Fourth-quarter 2025 revenue was $67.5 million, up 33% from $50.8 million. Gross profit improved to $15.2 million from $12.3 million. Net income, however, declined to $3.0 million from $4.4 million, mainly due to tax effects tied to a valuation allowance release.
How is Flotek’s Chemistry Technologies segment performing in a weaker frac market?
Chemistry Technologies grew despite market contraction. Total 2025 segment revenue reached about $209.8 million, up 18%, even as average frac fleet count fell 24%. This implies market share gains and continued strength of its Prescriptive Chemistry Management solutions.
What long-term backlog and recurring revenues did Flotek highlight for investors?
Flotek emphasized recurring, high-margin Data Analytics revenue. Management cited a PWRtek power-services lease agreement generating an estimated $146 million backlog through 2031 and noted 2026 Data Analytics recurring contracted revenue is expected to exceed 2025 total segment revenue.
Did Flotek (FTK) meet its 2025 financial guidance targets?
Flotek achieved another year of meeting or beating guidance. For 2025, revenue was $237.3 million versus guidance of $220–$225 million. Adjusted EBITDA, under the revised methodology, reached $32.8 million, within the updated $29–$34 million range disclosed by management.