Flotek Continues Data Driven Growth Trajectory, Delivering Strongest Quarterly Revenue Since 2017

About this update from Flotek Industries, Inc.

HOUSTON , March 11, 2026 /PRNewswire/ -- 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) Full-Year and Fourth Quarter 2025 Highlights 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. 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): 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. 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. Segment Revenue Summary (in thousands) 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. 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: 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 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.           View original content to download multimedia: https://www.prnewswire.com/news-releases/flotek-continues-data-driven-growth-trajectory-delivering-strongest-quarterly-revenue-since-2017-302711457.html

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