EX-99.1 2 ex991-q42025.htm EX-99.1 Document
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Exhibit 99.1
                                        
Flotek Continues Data Driven Trajectory, Delivering Strongest Quarterly Revenue Since 2017
HOUSTON, March 11, 2026 - 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,
20252024% Change20252024% 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
•Highest quarterly and annual revenues since 2017.
•Data Analytics achieved its highest-ever quarterly and annual revenue.
•Strategic entry into power services in 2025 sets stage for high-margin, recurring revenue growth in 2026 and beyond.
•Gross profit climbed 24% vs. fourth quarter 2024 and 52% as compared to full year 2024.
•Data Analytics’ gross profit accounted for 48% of total Company gross profit during the fourth quarter of 2025, as compared to 8% in the year ago quarter.
•2025 net income totaled $30.5 million or $0.84 per diluted share, vs. $0.34 per diluted share in 2024.
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.
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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,
20252024% Change20252024% 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)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, including reconciliations to the most comparable GAAP measures.
(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.
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Segment Revenue Summary (in thousands)
 Three Months Ended December 31,Twelve Months Ended December 31,
 20252024% Change20252024% Change
Chemistry Technologies:
External Revenues$14,791 $21,071 (30)%$79,565 $63,214 26%
Related Party Revenues42,659 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.
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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:
◦March 12th, 2026, 9am CT: Flotek 4th Qtr. & FY 2025 Earnings Conference Call
◦March 23–24th, 2026: 38th Annual ROTH Conference (Dana Point, CA)
◦May 26-28th, 2026: Louisiana Energy Conference 2026 (New Orleans, LA)
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
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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.
Investor contact:
Mike Critelli
Director of Finance & Investor Relations
E: ir@flotekind.com
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FLOTEK INDUSTRIES, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)

December 31, 2025December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents$5,731 $4,404 
Restricted cash104 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, net10,629 13,303 
Other current assets3,445 2,952 
Current contract asset7,621 5,939 
Total current assets110,777 96,456 
Long-term contract asset55,115 63,105 
Property and equipment, net20,344 6,178 
Right-of-use assets3,083 3,326 
Deferred tax assets, net29,152 51 
Other long-term assets1,578 1,680 
TOTAL ASSETS$220,049 $170,796 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$48,317 $38,073 
Accrued liabilities7,256 5,912 
Income taxes payable258 48 
Interest payable, related party1,008 — 
Current portion of operating lease liabilities1,251 1,486 
Current portion of finance lease liabilities153 — 
Asset-based loan3,332 4,789 
Current portion of long-term debt— 60 
Total current liabilities61,575 50,368 
Deferred revenue, long-term— 14 
Note payable - related party39,584 — 
Long-term operating lease liabilities5,608 6,514 
Long-term finance lease liabilities224 — 
TOTAL LIABILITIES106,991 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
3 3 
Additional paid-in capital434,964 464,620 
Accumulated other comprehensive income 96 251 
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’ equity113,058 113,900 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$220,049 $170,796 
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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,
 2025202420252024
Revenue:
Revenue from external customers$17,890 $23,328 $90,436 $71,263 
Revenue from related party49,629 27,430 146,826 115,762 
Total revenues67,519 50,758 237,262 187,025 
Cost of goods sold52,325 38,481 177,429 147,639 
Gross profit15,194 12,277 59,833 39,386 
Operating costs and expenses:
Selling, general, and administrative7,606 6,630 28,046 24,709 
Asset acquisition expenses— — 4,362 — 
Depreciation629 229 1,836 891 
Research and development463 365 1,822 1,714 
Severance expenses508 — 530 — 
Gain on sale of property and equipment— (90)(7)(124)
Total operating costs and expenses9,206 7,134 36,589 27,190 
Income from operations5,988 5,143 23,244 12,196 
Other income (expense):
Interest expense(1,374)(253)(3,937)(1,095)
Other income (expense), net69 (105)348 46 
Total other expense(1,305)(358)(3,589)(1,049)
Income before income taxes4,683 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 share36,023 29,642 33,903 29,534 
Weighted average common shares used in computing diluted income per common share38,268 31,436 36,156 30,889 
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FLOTEK INDUSTRIES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Twelve Months Ended December 31,
 20252024
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)71 
Amortization of contract assets6,308 5,612 
Depreciation1,836 891 
Amortization of deferred financing costs345 314 
Provision for credit losses, net of recoveries603 181 
Provision for excess and obsolete inventory442 645 
Gain on sale of property and equipment(7)(124)
Non-cash lease expense1,025 2,094 
Stock compensation expense2,300 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)
Inventories3,066 (1,110)
Income tax receivable(32)8 
Other assets(473)561 
Accounts payable10,244 6,368 
Accrued liabilities1,457 (70)
Operating lease liabilities(1,450)(2,515)
Income taxes payable210 3 
Interest payable, related party1,008 — 
Net cash provided by operating activities7,204 3,361 
Cash flows from investing activities:
Capital expenditures(1,984)(1,940)
Proceeds from sale of assets7 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 loan186,950 166,950 
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 Plan155 114 
Proceeds from issuance of stock from stock option exercises576 — 
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 cash1,329 (1,447)
Cash and cash equivalents at the beginning of period4,404 5,851 
Restricted cash at the beginning of period102 102 
Cash and cash equivalents and restricted cash at beginning of period4,506 5,953 
Cash and cash equivalents at end of period5,731 4,404 
Restricted cash at the end of period104 102 
Cash and cash equivalents and restricted cash at end of period$5,835 $4,506 


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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,
 2025202420252024
Net income$3,025 $4,429 $30,528 $10,498 
Interest expense1,374 253 3,937 1,095 
Income tax (benefit) expense1,658 356 (10,873)649 
Depreciation and amortization629 229 1,836 891 
EBITDA (Non-GAAP) (1)
$6,686 $5,267 $25,428 $13,133 
Stock compensation expense594 451 2,300 1,366 
Severance and retirement508 7 575 39 
Contingent liability revaluation— 117 (127)71 
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.
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