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

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)

Three Months Ended December 31,

Twelve Months Ended December 31,

2025

2024

% Change

2025

2024

% Change

Total Revenues

$ 67,519

$ 50,758

33 %

$ 237,262

$ 187,025

27 %

Gross Profit

$ 15,194

$ 12,277

24 %

$ 59,833

$ 39,386

52 %

Net Income

$ 3,025

$ 4,429

(32) %

$ 30,528

$ 10,498

191 %

Diluted Income Per Share

$ 0.08

$ 0.14

(43) %

$ 0.84

$ 0.34

147 %

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):

Three Months Ended December 31,

Twelve Months Ended December 31,

2025

2024

% Change

2025

2024

% Change

Adjusted EBITDA (Revised) (1)(2)

$ 8,047

$ 5,752

40 %

$ 32,790

$ 14,715

123 %

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.

(1)

(2)

Under the Company's previous methodology of computing Adjusted EBITDA, the Company added back non-cash amortization of contract assets totaling $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.

(3)

Represents a non-GAAP financial measure, see the "Unaudited Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings" table in this release for more information about this measure. We are not able to reconcile this forward-looking non-GAAP measure to 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, interest costs related to fluctuations in borrowings outstanding under the Company's asset based loan and the impact of the revaluation of certain liabilities, which is based upon our future stock price. These items do not impact the non-GAAP financial measure.

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)

Three Months Ended December 31,

Twelve Months Ended December 31,

2025

2024

% Change

2025

2024

% Change

Chemistry Technologies:

External Revenues

$ 14,791

$ 21,071

(30) %

$ 79,565

$ 63,214

26 %

Related Party Revenues

42,659

27,215

57 %

130,221

114,947

13 %

Total

$ 57,450

$ 48,286

19 %

$ 209,786

$ 178,161

18 %

Data Analytics:

Product Revenues

$ 2,154

$ 825

161 %

$ 7,330

$ 4,745

54 %

Service Revenues

7,915

1,647

381 %

20,146

4,119

389 %

Total

$ 10,069

$ 2,472

307 %

$ 27,476

$ 8,864

210 %

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.

FLOTEK INDUSTRIES, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

December 31, 2025

December 31, 2024

ASSETS

Current assets:

Cash and cash equivalents

$ 5,731

$ 4,404

Restricted cash

104

102

Accounts receivable, net of allowance for credit losses of $764 and $447 at

December 31, 2025 and December 31, 2024, respectively

19,043

17,386

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

December 31, 2025 and December 31, 2024

64,204

52,370

Inventories, net

10,629

13,303

Other current assets

3,445

2,952

Current contract asset

7,621

5,939

Total current assets

110,777

96,456

Long-term contract asset

55,115

63,105

Property and equipment, net

20,344

6,178

Right-of-use assets

3,083

3,326

Deferred tax assets, net

29,152

Other long-term assets

1,578

1,680

TOTAL ASSETS

$ 220,049

$ 170,796

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$ 48,317

$ 38,073

Accrued liabilities

7,256

5,912

Income taxes payable

258

Interest payable, related party

1,008

—

Current portion of operating lease liabilities

1,251

1,486

Current portion of finance lease liabilities

153

—

Asset-based loan

3,332

4,789

Current portion of long-term debt

—

Total current liabilities

61,575

50,368

Deferred revenue, long-term

—

Note payable - related party

39,584

—

Long-term operating lease liabilities

5,608

6,514

Long-term finance lease liabilities

224

—

TOTAL LIABILITIES

106,991

56,896

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;

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

31, 2025; 30,938,073 shares issued and 29,826,508 shares outstanding at

December 31, 2024

Additional paid-in capital

434,964

464,620

Accumulated other comprehensive income

251

Accumulated deficit

(285,780)

(316,308)

Treasury stock, at cost; 1,190,480 and 1,111,565 shares at December 31,

2025 and December 31, 2024, respectively

(36,225)

(34,666)

Total stockholders' equity

113,058

113,900

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$ 220,049

$ 170,796

FLOTEK INDUSTRIES, INC.

Unaudited Condensed Consolidated Statements of Operations

(in thousands, except per share data)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

Revenue:

Revenue from external customers

$ 17,890

$ 23,328

$ 90,436

$ 71,263

Revenue from related party

49,629

27,430

146,826

115,762

Total revenues

67,519

50,758

237,262

187,025

Cost of goods sold

52,325

38,481

177,429

147,639

Gross profit

15,194

12,277

59,833

39,386

Operating costs and expenses:

Selling, general, and administrative

7,606

6,630

28,046

24,709

Asset acquisition expenses

—

4,362

—

Depreciation

629

229

1,836

891

Research and development

463

365

1,822

1,714

Severance expenses

508

—

530

—

Gain on sale of property and equipment

—

(90)

(7)

(124)

Total operating costs and expenses

9,206

7,134

36,589

27,190

Income from operations

5,988

5,143

23,244

12,196

Other income (expense):

Interest expense

(1,374)

(253)

(3,937)

(1,095)

Other income (expense), net

(105)

348

Total other expense

(1,305)

(358)

(3,589)

(1,049)

Income before income taxes

4,683

4,785

19,655

11,147

Income tax benefit (expense)

(1,658)

(356)

10,873

(649)

Net income

$ 3,025

$ 4,429

$ 30,528

$ 10,498

Income per common share:

Basic

$ 0.08

$ 0.15

$ 0.90

$ 0.36

Diluted

$ 0.08

$ 0.14

$ 0.84

$ 0.34

Weighted average common shares:

Weighted average common shares used in

computing basic income per common share

36,023

29,642

33,903

29,534

Weighted average common shares used in

computing diluted income per common share

38,268

31,436

36,156

30,889

FLOTEK INDUSTRIES, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Twelve Months Ended December 31,

2025

2024

Cash flows from operating activities:

Net income

$ 30,528

$ 10,498

Adjustments to reconcile net income to net cash provided by operating activities:

Change in fair value of contingent consideration

(127)

Amortization of contract assets

6,308

5,612

Depreciation

1,836

891

Amortization of deferred financing costs

345

314

Provision for credit losses, net of recoveries

603

181

Provision for excess and obsolete inventory

442

645

Gain on sale of property and equipment

(7)

(124)

Non-cash lease expense

1,025

2,094

Stock compensation expense

2,300

1,366

Deferred income tax (benefit) expense

(11,185)

249

Changes in current assets and liabilities:

Accounts receivable

(2,260)

(3,880)

Accounts receivable, related party

(36,634)

(17,801)

Inventories

3,066

(1,110)

Income tax receivable

(32)

Other assets

(473)

561

Accounts payable

10,244

6,368

Accrued liabilities

1,457

(70)

Operating lease liabilities

(1,450)

(2,515)

Income taxes payable

210

Interest payable, related party

1,008

—

Net cash provided by operating activities

7,204

3,361

Cash flows from investing activities:

Capital expenditures

(1,984)

(1,940)

Proceeds from sale of assets

124

Net cash used in investing activities

(1,977)

(1,816)

Cash flows from financing activities:

Payments on long term debt

(60)

(179)

Proceeds from asset-based loan

186,950

166,950

Payments on asset-based loan

(188,407)

(169,653)

Payment of asset-based loan origination costs

(169)

(164)

Payment of note payable issuance costs

(480)

—

Payment of issuance costs of stock warrants

(653)

—

Payments to tax authorities for shares withheld from employees

(1,559)

(162)

Proceeds from issuance of stock under Employee Stock Purchase Plan

155

114

Proceeds from issuance of stock from stock option exercises

576

—

Payments for finance leases

(96)

(22)

Net cash used in financing activities

(3,743)

(3,116)

Effect of changes in exchange rates on cash and cash equivalents

(155)

124

Net change in cash and cash equivalents and restricted cash

1,329

(1,447)

Cash and cash equivalents at the beginning of period

4,404

5,851

Restricted cash at the beginning of period

102

Cash and cash equivalents and restricted cash at beginning of period

4,506

5,953

Cash and cash equivalents at end of period

5,731

4,404

Restricted cash at the end of period

104

102

Cash and cash equivalents and restricted cash at end of period

$ 5,835

$ 4,506

FLOTEK INDUSTRIES, INC.

Unaudited Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings

(in thousands)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

Net income

$ 3,025

$ 4,429

$ 30,528

$ 10,498

Interest expense

1,374

253

3,937

1,095

Income tax (benefit) expense

1,658

356

(10,873)

649

Depreciation and amortization

629

229

1,836

891

EBITDA (Non-GAAP) (1)

$ 6,686

$ 5,267

$ 25,428

$ 13,133

Stock compensation expense

594

451

2,300

1,366

Severance and retirement

508

575

Contingent liability revaluation

—

117

(127)

Gain on disposal of asset

—

(90)

(7)

(124)

Non-Recurring professional fees (2)

259

—

4,621

230

Adjusted EBITDA (Non-GAAP) (1)

$ 8,047

$ 5,752

$ 32,790

$ 14,715

(1)

Management believes that EBITDA and Adjusted EBITDA for the three and twelve months ended December 31, 2025 and 2024 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. In addition, the Company believes that Adjusted EBITDA provides investors, creditors and analysts with a clearer view of the Company's leverage profile and debt service capacity, enhancing comparability and augmenting the ability of investors, creditors and analysts to make investment decisions based upon liquidity. Under the Company's previous methodology of computing Adjusted EBITDA, the Company added back non-cash amortization of contract assets. Adjusted EBITDA as presented above does not add back non-cash amortization of contract assets totaling $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.

(2)

Includes $4.4 million of expenses related to an asset acquisition for the twelve months ended December 31, 2025.

SOURCE Flotek Industries, Inc.