Flotek Reports 95% Gross Profit Growth in Third Quarter

About this update from Flotek Industries, Inc.

HOUSTON , Nov. 4, 2025 /PRNewswire/ -- Flotek Industries, Inc. ("Flotek" or the "Company") (NYSE: FTK), a leader in innovative energy solutions, today announced its financial results for the quarter and nine-months ended September 30, 2025, which reflect continued successful execution of its transformational strategy and robust growth across its two segments. Financial Summary (in thousands, except 'per share' amounts) Highlights: (all comparisons versus Q3 2024 unless noted) 2025 Guidance Update: Based on strong year-to-date operational performance and the outlook for the fourth quarter, the Company is increasing its 2025 guidance ranges as follows ($MMs): Management Commentary Chief Executive Officer Dr. Ryan Ezell commented, "Flotek delivered an outstanding third quarter, highlighted by reporting total Company gross profit margin of 32%. Throughout the quarter, we continued successfully executing our corporate strategy to transform Flotek into a data-driven technology enterprise. Our Data Analytics segment delivered quarterly revenue comparable to the full year 2024, reflecting accelerated adoption of our advanced analytics solutions supporting the industrial pivot within the energy infrastructure sector. Our Chemistry Technologies segment continued to expand market share, driven by strong demand for our innovative chemical solutions that enhance reservoir performance. Through the first three quarters of 2025, Chemistry segment revenues were 17% higher year-over-year. Our third quarter results underscore the strength in each of our segments and demonstrate our disciplined execution and steadfast commitment to creating value for our customers and shareholders even in challenging market conditions." Segment Revenue Summary (in thousands) Revenues: Gross Profit: The Company generated gross profit of $17.8 million during the third quarter of 2025 compared to $9.1 million during the third quarter of 2024. The 95% increase in third quarter 2025 gross profit was driven by a 232% increase in high-margin Data Analytics revenue. Additionally, the reduction in related party chemistry sales, as compared to the year-ago quarter, resulted in a 28% increase in revenues attributable to the minimum chemistry purchase requirement contained in the Company's long-term supply agreement with ProFrac. Gross profit as a percentage of revenue totaled 32% in the third quarter of 2025 as compared to 18% in the year-ago period. Selling, General and Administrative ("SG&A") Expense: SG&A expense totaled $7.4 million for the third quarter of 2025, or 13% as a percentage of revenues, compared to $5.7 million during the third quarter of 2024, or 11% as a percentage of revenues. The increase in SG&A expenses during the third quarter of 2025 was primarily the result of higher professional fees and personnel costs including non-cash stock compensation costs. Net Income:  In the third quarter of 2025, Flotek reported net income of $20.4 million, or $0.53 per diluted share, as compared to $2.5 million, or $0.08 per diluted share, in the year-ago quarter. Net income during the third quarter of 2025 included a $12.6 million tax benefit related to previously reserved deferred tax assets. While the current quarter impact of the partial release of the valuation allowance is non-cash, it is a positive indication of the Company's outlook for generating future income from which it could utilize its deferred tax assets. Adjusted EBITDA (1) (Non-GAAP):  Adjusted EBITDA (1) was $11.7 million in the third quarter of 2025 as compared to $4.8 million in the third quarter of 2024. This marks the 12th consecutive quarter of Adjusted EBITDA (1) improvement. PWRtek TM Update: During the third quarter of 2025, revenues attributable to the Acquired Assets totaled $6.1 million with gross profit as a percentage of revenue totaling approximately 89%. As of September 30, 2025, all the Acquired Assets were in service and the Company expects fourth quarter and full year 2025 PWRtek revenues to total approximately $6.8 million and $16.1 million, respectively. Acquisition expenses related to the asset acquisition during the third quarter and nine-month periods of 2025 totaled $0.2 million and $4.4 million, respectively. Conference Call Details The Company plans to host its earnings conference call on Wednesday, November 5, 2025, at 9:00 a.m. CDT (10:00 a.m. EDT). Participants may access the call through Flotek's website at https://ir.flotekind.com under the "News & Events" section, by telephone toll free at 1-800-836-8184 (international toll: 1-646-357-8785), or by using the following link to access the audience view of the webcast at https://app.webinar.net/NLao0z9kmlg  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 technologies leverage near real-time data to deliver innovative solutions to maximize customer returns. Flotek has an intellectual property portfolio of over 130 patents, over 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-reports-95-gross-profit-growth-in-third-quarter-302604604.html

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