Flotek Industries — Q3 2026 Earnings Summary

Financial Performance:

• Total revenue for the three months ended September 30, 2026, reached $114.4 million, a 104% increase year-over-year compared to $56.0 million in Q3 2025; for the nine months ended September 30, 2026, revenue was $283.8 million, a 67% increase from $169.7 million in the prior period.
• Gross profit was $27.4 million (24% of revenue) in Q3 2026, up from $17.8 million (32% of revenue) in Q3 2025; for the nine months, gross profit was $66.7 million compared to $44.6 million in the prior period.
• Net income was $13.3 million ($0.34 diluted EPS) in Q3 2026, down from $20.4 million ($0.53 diluted EPS) in Q3 2025; for the nine months, net income was $27.9 million ($0.72 diluted EPS), a 2% increase from $27.5 million ($0.78 diluted EPS) in the prior period.
• Adjusted EBITDA was $19.5 million in Q3 2026, an 87% increase from $10.4 million in Q3 2025; for the nine months, Adjusted EBITDA was $45.4 million, an 84% increase from $24.7 million in the prior period.
• SG&A expense totaled $8.5 million (7% of revenue) in Q3 2026, compared to $7.4 million (13% of revenue) in Q3 2025.
• Cash and cash equivalents increased to $21.3 million at September 30, 2026, from $5.7 million at December 31, 2025.
• Accounts receivable, net, increased to $66.0 million at September 30, 2026, from $19.0 million at December 31, 2025.
• Inventories, net, increased to $33.7 million at September 30, 2026, from $10.6 million at December 31, 2025.
• Total liabilities increased to $167.6 million at September 30, 2026, from $107.0 million at December 31, 2025.
• Net cash used in operating activities for the nine months ended September 30, 2026, was $16.8 million, compared to net cash provided of $0.9 million in the prior period.
• Net cash provided by financing activities for the nine months ended September 30, 2026, was $34.0 million, compared to $1.1 million in the prior period.

Guidance and Future Outlook:

• Flotek increased its full-year 2026 total revenue guidance to $382–$390 million, up from the previous range of $360–$370 million.
• Flotek increased its full-year 2026 Adjusted EBITDA guidance to $59–$62 million, up from the previous range of $50–$54 million.
• The Company expects capital expenditures in 2027 to total between $15 million and $20 million, funded in part by proceeds from a term loan closed in September.
• Management anticipates high-margin revenue growth in 2027 supported by the expansion of the Data Analytics asset base.
• The Company plans to expand the application of its technologies beyond the oil and gas industry, targeting behind-the-meter power generation and other industrial and infrastructure applications.

Business Segments and Product Lines:

• Both the Data Analytics and Chemistry Technologies segments generated 104% year-over-year revenue growth in Q3 2026.
• Data Analytics revenue increased 104% in Q3 2026; the segment generated 45% of total company gross profit while accounting for only 16% of total revenue.
• International Chemistry revenue grew to $28.4 million in Q3 2026 (25% of total revenue), up from $2.2 million in Q3 2025, reflecting work in the Middle East.
• Related party Chemistry revenue reached $50.3 million in Q3 2026, an 87% increase from the prior year, marking the first time quarterly related party revenue exceeded $50 million under the long-term supply agreement with ProFrac Services LLC.
• Revenue related to Minimum Purchase Requirements under the ProFrac supply agreement was $0.9 million in Q3 2026, down from $8.7 million in Q3 2025, due to the significant increase in related party Chemistry revenue.
• Data Analytics capital investment priorities include expanding proprietary measurement instruments, growing the fleet of near real-time gas conditioning and distribution equipment, and enhancing manufacturing capacity.

Market and Competitive Landscape:

• The Company operates in the energy, industrial, and infrastructure sectors, leveraging over 130 patents and data from more than two decades of field and laboratory operations.
• Flotek maintains a global presence in more than 59 countries.
• The Company is pivoting toward becoming a data-driven technology leader, utilizing real-time measurement solutions to address demand in behind-the-meter power generation.

Risks and Challenges:

• The Company faces risks related to its dependence on ProFrac Services LLC, a related party, for a significant portion of its revenue.
• Risks include the Company's indebtedness, including its term loan and asset-based loan, and the ability to comply with covenants and restrictions thereunder.
• Execution risks exist regarding the Company's ability to execute its capital investment plan on budget and on schedule.
• Revenue and pricing are affected by oil and natural gas prices, drilling and completion activity, and the ability to successfully commercialize technologies outside of oil and gas.
• Risks associated with international operations, specifically in the Middle East, are noted.
• The outcome of pending shareholder litigation and other legal proceedings could impact the Company.
• Project risks include securing fuel supply, international logistics, obtaining permits, governmental approvals, and meeting execution deadlines.

Management Commentary and Tone:

• CEO Dr. Ryan Ezell stated that revenue, net income, and Adjusted EBITDA have grown in every quarter of 2026.
• Management highlighted that the third quarter results validate Flotek's industrialized pivot into a data-driven technology leader.
• Dr. Ezell noted that the debt financing completed in September provides the capital needed to expand the Data Analytics asset base.
• Management expressed confidence that real-time measurement solutions are well-positioned to address rapidly growing demand in differentiated industrial and infrastructure applications.

Other Key Points:

• A term loan facility was closed in September 2026, with $11.7 million held by a related party, to fund the expanded Data Analytics capital plan.
• The Company paid $27.5 million toward its related party note payable during the nine months ended September 30, 2026.
• Proceeds from the asset-based loan totaled $199.3 million, with payments of $194.7 million made during the nine months ended September 30, 2026.
• Q3 2025 net income included a $12.6 million non-cash tax benefit related to the partial release of the valuation allowance on deferred tax assets.
• The Company hosts an earnings conference call on November 4, 2026, at 9:00 a.m. CST.