Flowco Holdings Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenues for the three months ended September 30, 2026, were $258.6 million, compared to $235.9 million in the second quarter of 2026 and $176.9 million in the third quarter of 2025.
• Net income was $40.7 million for the quarter, compared to $30.9 million in the second quarter of 2026 and $34.3 million in the third quarter of 2025.
• Adjusted Net Income was $48.0 million for the quarter, compared to $34.3 million in the second quarter of 2026 and $37.3 million in the third quarter of 2025.
• Adjusted EBITDA was $103.9 million for the quarter, compared to $93.9 million in the second quarter of 2026 and $76.8 million in the third quarter of 2025.
• Adjusted EBITDA Margin was 40.2% for the quarter, compared to 39.8% in the second quarter of 2026 and 43.4% in the third quarter of 2025.
• Net cash provided by operating activities was $103.1 million for the quarter, compared to $82.5 million in the third quarter of 2025.
• Free Cash Flow was $72.4 million for the quarter, representing approximately 70% conversion from Adjusted EBITDA.
• Cash and cash equivalents were $137.8 million as of September 30, 2026, compared to $4.5 million as of December 31, 2025.
• Long-term debt, net, was $363.4 million as of September 30, 2026, compared to $167.8 million as of December 31, 2025.
• Deferred revenue was $16.0 million as of September 30, 2026, compared to $7.4 million as of December 31, 2025.

Guidance and Future Outlook:

• Management stated that Adjusted EBITDA exceeded the high end of the guidance range for the third quarter.
• The company highlighted continued performance of the rental revenue base and benefits from accelerated revenue associated with the release of certain rental systems within Surface Equipment.
• Management noted early international momentum with incremental orders for ESPs and gas lift equipment in Venezuela and the Middle East.
• The company expressed confidence in its ability to pursue strategic growth organically and through acquisitions while returning capital to shareholders.

Business Segments and Product Lines:

• Production Solutions: Revenues increased 4.5% to $178.6 million and Adjusted Segment EBITDA increased 9.8% to $77.96 million from the second quarter of 2026. Adjusted Segment EBITDA Margin increased 209 basis points to 43.6%. The quarter included approximately $9 million in accelerated rental revenue from the release of certain Surface Equipment systems.
• Natural Gas Technologies: Revenues increased 23.1% to $80.0 million and Adjusted Segment EBITDA increased 11.2% to $30.9 million from the second quarter of 2026, primarily due to increased Natural Gas Systems sales. Adjusted Segment EBITDA Margin decreased 413 basis points to 38.6%.
• Corporate: Adjusted Segment EBITDA was $(5.0) million, largely unchanged from $(4.9) million in the second quarter of 2026.
• Valiant: The segment exceeded expectations and secured an award for future work from a large independent operator through an existing Flowco relationship.
• Lifting Solutions: The company completed the acquisition of Lifting Solutions subsequent to quarter-end to expand international presence.

Market and Competitive Landscape:

• U.S. operators' focus on enhancing returns from existing assets is driving demand for Flowco's solutions.
• The company is advancing strategic priorities including international growth.
• Cross-selling opportunities across the platform are being demonstrated through the Valiant acquisition.

Risks and Challenges:

• The press release includes a standard "Forward-Looking Statements" section noting that actual results may differ materially from expectations due to inherent uncertainties, risks, and changes in circumstances.
• Specific risks referenced include industry trends, customer demand, industry outlook, and effects on operations.
• The company references risks detailed in its Form 10-K for the year ended December 31, 2025, and subsequent quarterly reports on Form 10-Q.

Management Commentary and Tone:

• Joe Bob Edwards, President and CEO, described the third quarter as "strong," citing Adjusted EBITDA exceeding guidance and robust free cash flow generation.
• Management emphasized consistent execution across both segments and the benefits of the production optimization orientation.
• The tone was positive regarding international momentum and the strategic value of recent acquisitions.
• Management reiterated a commitment to disciplined capital allocation to create long-term shareholder value.

Other Key Points:

• Dividend: The Board of Directors approved a quarterly cash dividend of $0.09 per share, payable on November 24, 2026, to shareholders of record as of November 13, 2026.
• Share Repurchase: The Board approved a $150 million increase to the existing share repurchase authorization, bringing the total authorization to $200 million with no expiration date.
• Liquidity: As of October 30, 2026, the company had approximately $365 million of availability under its revolving credit facility, with outstanding borrowings of $355.7 million against a borrowing base of $721.8 million.
• Acquisitions: The company completed the acquisition of Lifting Solutions subsequent to the quarter-end. The Valiant acquisition was completed in the nine-month period ended September 30, 2026, with net cash paid of $161.8 million.
• Conference Call: A conference call to discuss results was scheduled for November 4, 2026, at 8:00 a.m. Eastern Time.