Flotek Delivers Quarterly Revenue Above $100 Million, Achieving Twelve-Year High, and Increases Guidance Again

Flotek Delivers Quarterly Revenue Above $100 Million, Achieving Twelve-Year High, and Increases Guidance Again HOUSTON, Nov. 3, 2026 /PRNewswire/ -- Flotek Industries, Inc. ("Flotek" or the "Company") (NYSE: FTK) today announced third quarter 2026 revenue of $114.4 million, reaching its highest quarterly revenue level in twelve years. The Company's results reflect broad-based growth across its Data Analytics and Chemistry Technologies segments, with total revenue increasing 104% year over year. Based on the Company's strong year-to-date performance and its outlook for the fourth quarter, Flotek also increased its full-year 2026 guidance.

A summary of key financial metrics is as follows (in thousands, except 'per share' amounts):

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

% Change

2026

2025

% Change

Total Revenues

$ 114,352

$ 56,031

104 %

$ 283,770

$ 169,743

67 %

Gross Profit

$ 27,395

$ 17,783

54 %

$ 66,719

$ 44,639

49 %

Net Income

$ 13,306

$ 20,355

(35) %

$ 27,923

$ 27,503

2 %

Diluted Income Per Share

$ 0.34

$ 0.53

(36) %

$ 0.72

$ 0.78

(8) %

Adjusted EBITDA (1)

$ 19,523

$ 10,427

87 %

$ 45,404

$ 24,743

84 %

Third Quarter 2026 Highlights

2026 Guidance Update

Based on year-to-date results and the Company's current expectations, Flotek is increasing its guidance metrics for 2026 as follows (in millions):

Metric

Current

Total Revenues

$360-$370

$382-$390

Adjusted EBITDA (2)

$50-$54

$59-$62

Data Analytics Capital Investment Plan

The Company expects capital expenditures in 2027 to total between $15 million and $20 million. Funding is expected to include a portion of the proceeds from the Company's recently closed Term Loan.

The capital investment plan is expected to support the continued expansion of the Data Analytics segment, with investments focused on the following priorities:

Management Commentary

Chief Executive Officer Dr. Ryan Ezell commented, "With our third quarter results, we have now achieved growth in revenue, net income and Adjusted EBITDA in every quarter this year. Both segments generated strong year-over-year growth, with total quarterly revenue reaching its highest level since the third quarter of 2014. Data Analytics continues to provide strong profit contribution as the segment generated 45% of total Company gross profit on only 16% of total revenue. Our Chemistry segment's international sales increased by $26 million from the year-ago quarter, while related party chemistry revenue exceeded $50 million in a quarter for the first time in the history of our chemistry supply agreement.

Our third-quarter performance reflects consistent execution of our corporate strategy and further validates Flotek's industrialized pivot into a data-driven technology leader. We believe the debt financing completed in September provides the capital needed to expand our Data Analytics asset base, which we expect will support high-margin revenue growth in 2027. Our 2027 capital investment plan is expected to exceed our cumulative capital expenditures over the past several years as we pursue opportunities to expand the application of our technologies beyond the oil and gas industry. We believe our real-time measurement solutions are well positioned to help address the rapidly growing demand for behind-the-meter power generation and other differentiated industrial and infrastructure applications."

Third Quarter 2026 Financial Results

Segment Revenue Summary (in thousands)

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

% Change

2026

2025

% Change

Chemistry Technologies:

External Revenues

$ 45,962

$ 20,221

127 %

$ 91,818

$ 64,773

42 %

Related Party Revenues

50,335

26,956

87 %

144,347

87,562

65 %

Total

$ 96,297

$ 47,177

104 %

$ 236,165

$ 152,335

55 %

Data Analytics:

Product Revenues

$ 3,856

$ 1,694

128 %

$ 10,887

$ 5,176

110 %

Service Revenues

14,199

7,160

98 %

36,718

12,232

200 %

Total

$ 18,055

$ 8,854

104 %

$ 47,605

$ 17,408

173 %

(1)

A non-GAAP financial measure. See the "Unaudited Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings" section in this release for more information about this measure, including a reconciliation to net income, the most comparable GAAP measure. Calculations do not add back non-cash amortization of contract assets totaling $2.4 million and $1.3 million during the third quarters of 2026 and 2025, respectively, and $7.1 million and $4.2 million during the nine months ended September 30, 2026 and 2025, respectively.

(2)

A non-GAAP financial measure. See the "Unaudited Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings" section in this release for more information about this measure. We are unable to reconcile this forward-looking non-GAAP financial measure to net income, 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, and interest costs related to fluctuations in borrowings under the Company's asset based loan and fluctuations in interest rates. These items do not impact the non-GAAP financial measure. Guidance does not add back non-cash amortization of contract assets estimated to total approximately $9.3 million during full-year 2026.

Conference Call Details

The Company plans to host its earnings conference call on Wednesday, November 4, 2026, at 9:00 a.m. CST (10:00 a.m. EST).

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/KaD61d81pgX 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 global technology-driven company that combines the synergy of proprietary technologies through near real-time data analytics and advanced chemistry to collaboratively address complex challenges for energy, industrial and infrastructure sector customers and help them optimize operations, enhance asset performance and maximize financial returns.

Leveraging a portfolio of more than 130 patents, over two decades of field and laboratory data, and a global presence in more than 59 countries, Flotek delivers innovative, data-driven solutions designed to create measurable value across the energy and infrastructure lifecycle.

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, may, could, should, target, forecast, project, potential 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. These statements include, without limitation, statements regarding the Company's financial guidance and outlook, including anticipated revenues and Adjusted EBITDA; the amount, timing and funding of the Company's Data Analytics capital investment plan and the expected benefits thereof; anticipated revenues under the Company's long-term contracts, including the long-term supply agreement with ProFrac Services, LLC and the Minimum Purchase Requirements thereunder; the total term of such contracts and the likelihood of their extension, renewal or early termination; the timing of the scaling and deployment of equipment; the total power capacity and operating performance of equipment once deployed; the Company's ability to perform under and satisfy the terms and conditions of its contracts; the expansion of the Company's technologies into new markets and applications, including behind-the-meter power generation and other industrial and infrastructure applications; and the expected growth of the Company's international operations. Factors that could cause actual results to differ materially from anticipated results include, without limitation: the Company's dependence on ProFrac Services, LLC, a related party, for a significant portion of its revenue, and the effect of changes in ProFrac's activity levels, financial condition or purchasing decisions; the Company's indebtedness, including its term loan and asset-based loan, and its ability to comply with the covenants and other restrictions thereunder; the Company's ability to execute its capital investment plan on budget and on schedule; demand for and pricing of the Company's products and services, which are affected by oil and natural gas prices and drilling and completion activity; the Company's ability to successfully commercialize its technologies outside of oil and gas; risks associated with international operations, including in the Middle East; the outcome of the pending shareholder litigation described in the Company's filings with the Securities and Exchange Commission and any other investigations or legal proceedings; and risks related to the Company's projects that are outside the Company's control, including, without limitation, securing fuel supply, international logistics, obtaining permits and governmental approvals, satisfying bonding, performance security and financing requirements, third-party equipment delivery, construction execution and scheduling, meeting execution deadlines and integrating systems, actions taken by governmental, regulatory or oversight authorities, changes in government policy, tariffs and trade restrictions, political and regulatory developments, geopolitical instability or armed conflicts, and severe weather events. Further information about the risks and uncertainties that may impact the Company is set forth in the Company's most recent filings with the Securities and Exchange Commission on Form 10-K, Form 10-Q and Form 8-K (including, without limitation, in the "Risk Factors" sections 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.

FLOTEK INDUSTRIES, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

September 30, 2026

December 31, 2025

ASSETS

Current assets:

Cash and cash equivalents

$ 21,275

$ 5,731

Restricted cash

105

104

Accounts receivable, net of allowance for credit losses of $1,109 and $764 at

September 30, 2026 and December 31, 2025, respectively

66,015

19,043

Accounts receivable, related party, net of allowance for credit losses of $0 at

September 30, 2026 and December 31, 2025

72,621

64,204

Equipment credit, related party

8,230

—

Inventories, net

33,722

10,629

Other current assets

1,963

3,445

Current contract asset

9,185

7,621

Total current assets

213,116

110,777

Long-term contract asset

46,479

55,115

Property and equipment, net

24,541

20,344

Right-of-use assets

3,094

3,083

Deferred tax assets, net

22,372

29,152

Other long-term assets

1,509

1,578

TOTAL ASSETS

$ 311,111

$ 220,049

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$ 74,485

$ 48,317

Accrued liabilities

6,903

7,256

Income taxes payable

1,293

258

Interest payable

151

—

Interest payable, related party

—

1,008

Current portion of operating lease liabilities

1,574

1,251

Current portion of finance lease liabilities

164

153

Asset-based loan

7,933

3,332

Total current liabilities

92,503

61,575

Deferred revenue, long-term

—

Term loan facility, net of deferred financing costs, including $11,671 held by related

party, net of deferred financing costs

70,028

—

Note payable - related party, net of deferred financing costs

—

39,584

Long-term operating lease liabilities

4,912

5,608

Long-term finance lease liabilities

100

224

TOTAL LIABILITIES

167,594

106,991

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;

37,440,565 shares issued and 36,218,789 shares outstanding at September

30, 2026; 31,320,960 shares issued and 30,130,480 shares outstanding at

December 31, 2025

Additional paid-in capital

438,129

434,964

Accumulated other comprehensive income

155

Accumulated deficit

(257,857)

(285,780)

Treasury stock, at cost; 1,221,776 and 1,190,480 shares at September 30,

2026 and December 31, 2025, respectively

(36,914)

(36,225)

Total stockholders' equity

143,517

113,058

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$ 311,111

$ 220,049

FLOTEK INDUSTRIES, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Revenue:

Revenue from external customers

$ 56,942

$ 22,941

$ 118,332

$ 72,546

Revenue from related party

57,410

33,090

165,438

97,197

Total revenues

114,352

56,031

283,770

169,743

Cost of goods sold

86,957

38,248

217,051

125,104

Gross profit

27,395

17,783

66,719

44,639

Operating costs and expenses:

Selling, general, and administrative

8,511

7,384

23,172

20,462

Asset acquisition expenses

—

167

—

4,362

Depreciation

666

581

1,961

1,207

Research and development

473

549

1,366

1,359

Gain on sale of property and equipment

(208)

—

(208)

(7)

Total operating costs and expenses

9,442

8,681

26,291

27,383

Income from operations

17,953

9,102

40,428

17,256

Other income (expense):

Interest expense

(1,416)

(1,351)

(4,119)

(2,563)

Loss on extinguishment of debt

(242)

—

(242)

—

Other income, net

(8)

279

Total other expense

(1,599)

(1,359)

(4,267)

(2,284)

Income before income taxes

16,354

7,743

36,161

14,972

Income tax (expense) benefit

(3,048)

12,612

(8,238)

12,531

Net income

$ 13,306

$ 20,355

$ 27,923

$ 27,503

Income per common share:

Basic

$ 0.37

$ 0.57

$ 0.77

$ 0.83

Diluted

$ 0.34

$ 0.53

$ 0.72

$ 0.78

Weighted average common shares:

Weighted average common shares used in

computing basic income per common

36,174

35,868

36,142

33,189

Weighted average common shares used in

computing diluted income per common

38,684

38,137

38,522

35,420

FLOTEK INDUSTRIES, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Nine Months Ended September 30,

2026

2025

Cash flows from operating activities:

Net income

$ 27,923

$ 27,503

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Change in fair value of contingent consideration

—

(127)

Amortization of contract assets

7,072

4,210

Depreciation

1,961

1,207

Amortization of deferred financing costs

257

252

Loss on extinguishment of debt

242

—

Provision for credit losses, net of recoveries

383

555

Provision for excess and obsolete inventory

1,172

307

Gain on sale of property and equipment

(208)

(7)

Non-cash lease expense

587

840

Stock compensation expense

3,020

1,706

Deferred income tax expense (benefit)

6,780

(12,773)

Changes in current assets and liabilities:

Accounts receivable

(47,355)

(9,936)

Accounts receivable, related party

(21,396)

(10,013)

Inventories

(23,764)

462

Income tax receivable

(32)

Other assets

1,379

724

Accounts payable

26,168

(3,000)

Accrued liabilities

(302)

(874)

Operating lease liabilities

(971)

(1,204)

Income taxes payable

1,035

149

Interest payable

151

—

Interest payable, related party

(1,008)

1,008

Net cash (used in) provided by operating activities

(16,842)

957

Cash flows from investing activities:

Capital expenditures

(1,702)

(1,697)

Proceeds from sale of assets

—

Net cash used in investing activities

(1,702)

(1,690)

Cash flows from financing activities:

Proceeds from term loan facility

62,500

—

Term loan facility issuance cost

(4,875)

—

Payment of related party note payable

(27,500)

—

Payments on long term debt

—

(60)

Proceeds from asset-based loan

199,310

147,000

Payments on asset-based loan

(194,709)

(145,127)

Payment of asset-based loan origination costs

(40)

(150)

Payment of note payable issuance costs

—

(480)

Payment of stock warrant issuance costs

—

(653)

Proceeds from exercise of April 2025 Warrant

—

Payments to tax authorities for shares withheld from employees

(689)

(82)

Proceeds from issuance of stock under Employee Stock Purchase Plan

137

113

Proceeds from issuance of stock from stock option exercises

574

Payments for finance leases

(113)

(60)

Net cash provided by financing activities

34,030

1,075

Effect of changes in exchange rates on cash and cash equivalents

(142)

Net change in cash and cash equivalents and restricted cash

15,545

200

Cash and cash equivalents at the beginning of period

5,731

4,404

Restricted cash at the beginning of period

104

102

Cash and cash equivalents and restricted cash at beginning of period

5,835

4,506

Cash and cash equivalents at end of period

21,275

4,603

Restricted cash at the end of period

105

103

Cash and cash equivalents and restricted cash at end of period

$ 21,380

$ 4,706

FLOTEK INDUSTRIES, INC.

UNAUDITED RECONCILIATION OF NON-GAAP ITEMS AND NON-CASH ITEMS IMPACTING EARNINGS

(in thousands)

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Net income

$ 13,306

$ 20,355

$ 27,923

$ 27,503

Interest expense

1,416

1,351

4,119

2,563

Income tax expense (benefit)

3,048

(12,612)

8,238

(12,531)

Depreciation and amortization

666

—

581

—

1,961

—

1,207

EBITDA (Non-GAAP) (1)

$ 18,436

$ 9,675

$ 42,241

$ 18,742

Stock compensation expense

987

569

3,020

1,706

Severance and retirement

Loss on extinguishment of debt

242

—

242

—

Contingent liability revaluation

—

(127)

Gain on disposal of asset

(208)

—

(208)

(7)

Non-Recurring professional fees (2)

167

4,362

Adjusted EBITDA (Non-GAAP) (1)

$ 19,523

$ 10,427

$ 45,404

$ 24,743

(1)

Management believes that EBITDA and Adjusted EBITDA for the three and nine months ended September 30, 2026 and 2025 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. Adjusted EBITDA as presented above does not add back non-cash amortization of contract assets totaling $2.4 million and $1.3 million during the three months ended September 30, 2026 and 2025, respectively, and non-cash amortization of contract assets totaling $7.1 million and $4.2 million during the nine months ended September 30, 2026 and 2025, respectively.

(2)

Includes $4.4 million of expenses for the nine months ended September 30, 2025 related to an asset acquisition.

FLOTEK INDUSTRIES, INC.

UNAUDITED RECONCILIATION OF NON-GAAP ITEMS AND NON-CASH ITEMS IMPACTING EARNINGS

(in thousands)

Three Months

Ended June 30,

Three Months

Ended March 31,

2026

Net income

$ 9,953

$ 4,664

Interest expense

1,371

1,332

Income tax expense (benefit)

3,581

1,609

Depreciation and amortization

664

631

EBITDA (Non-GAAP) (1)

$ 15,569

$ 8,236

Stock compensation expense

1,210

824

Severance and retirement

—

Non-Recurring professional fees (2)

Adjusted EBITDA (Non-GAAP) (1)

$ 16,788

$ 9,093

(1)

Management believes that EBITDA and Adjusted EBITDA for the three months ended June 30, 2026 and three months ended March 31, 2026 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. Adjusted EBITDA as presented above does not add back non-cash amortization of contract assets totaling $2.4 million and $2.2 million during the three months ended June 30, 2026 and three months ended March 31, 2026, respectively.

SOURCE Flotek Industries, Inc.