Houston, November 3 (Reuters) / PRNewswire / -- Flotek Industries, Inc. ("Flotek" or "the Company") (New York Stock Exchange ticker: FTK) announced today that its revenue for the third quarter of 2026 was $114.4 million, reaching the highest quarterly revenue level in 12 years. The company stated that the results reflect broad growth in its two business segments: data analytics (Data Analytics) and chemical technology (Chemistry Technologies), with total revenue increasing by 104% year-over-year. Based on the company's strong performance since the beginning of the year and its outlook for the fourth quarter, Flotek has also raised its full-year guidance for 2026.

Key financial indicators are summarized as follows (unit: thousand US dollars, except for per-share data):

Highlights of the Third Quarter of 2026

• Total revenue reached $114.4 million, more than doubling compared to the same period last year.
• Data analysis revenue increased by 104% year-on-year.
• International chemical business revenue increased to 28.4 million US dollars, accounting for 25% of total revenue.
• Revenues, net profit, and adjusted EBITDA all saw growth in each quarter of 2026.
• The fixed-term loans completed in September are expected to provide funding for the expanded data analysis capital plan.

2026 Guidance Update

Based on the performance from the beginning of the year to date and the company's current expectations, Flotek has raised its guidance targets for 2026 as follows (unit: million US dollars):

Data analysis capital investment plan

The company expects that the total capital expenditure in 2027 will be between $15 million and $20 million. The funds are expected to include a portion of the proceeds from the regular loans that the company has recently completed.

This capital investment plan is expected to support the continued expansion of the data analysis business, with key areas of investment including the following:

• Increase the inventory of the company's proprietary measuring instruments;
• Increase the scale of the fleet of near-real-time gas regulation and distribution equipment;
• Enhance existing manufacturing capabilities to support continuous business expansion.

Management Commentary

Chief Executive Officer Dr. Ryan Ezell stated: "With the release of third-quarter results, we have achieved growth in revenue, net profit, and adjusted EBITDA for each quarter this year. Both business segments have seen strong year-over-year increases, with total quarterly revenue reaching its highest level since the third quarter of 2014. The data analysis business continues to contribute significantly to profits; although this segment accounts for only 16% of the company's total revenue, it contributes 45% of the company's total gross profit. Our chemical business's international sales increased by 26 million US dollars compared to the same period last year, and the chemical revenue related to related parties exceeded 50 million US dollars for the first time in the history of the company's chemical supply agreements."

"The third-quarter results reflect the continued execution of the company's strategy and further validate the industrialized path of Flotek's transformation into a data-driven technology leader. We believe that the debt financing completed in September provided the necessary capital to expand our data analysis asset base, which we expect to support high gross margin revenue growth in 2027. Our capital investment plan for 2027 is expected to exceed the cumulative capital expenditures of the past few years as we seek to extend our technology applications beyond the oil and gas industry. We believe that our real-time measurement solutions are well-positioned to meet the rapidly growing demands in post-meter power generation and other differentiated industrial and infrastructure applications."

Financial Results for the Third Quarter of 2026

• Revenues: Flotek reported that total revenues in the third quarter of 2026 were $114.4 million, a 104% increase from $56 million in the third quarter of 2025.

Revenues from both the chemical and data analysis business segments increased by 104% compared to the same period in 2025. In the third quarter, international chemical revenues amounted to 28.4 million US dollars, compared to 2.2 million US dollars in the same period last year, reflecting the company's ongoing operations in the Middle East region.

Chemical revenue related to related parties increased by 87% compared to the same period last year, and this is also the first time that quarterly revenue has exceeded $50 million since the company signed a long-term supply agreement with ProFrac Services LLC. Revenue related to the minimum purchase requirements in the long-term supply agreement was $900,000 in 2026 and $8.7 million in the third quarter of 2025. The decrease in revenue related to the minimum purchase requirements in the current quarter is due to the significant increase in chemical revenue from related parties compared to the same period last year.

Gross Profit: In the third quarter of 2026, the company achieved a gross profit of $27.4 million, accounting for 24% of revenue; in the same period last year, it was $17.8 million, accounting for 32% of revenue. The decline in gross margin was mainly due to a reduction of $7.8 million in revenue related to the current quarter's minimum procurement requirements, and this portion of revenue did not correspond to any costs.

Selling, general and administrative expenses (“SG &A”): In the third quarter of 2026, SG &A expenses amounted to 8.5 million US dollars, accounting for 7% of revenue; in the same period last year, they were 7.4 million US dollars, accounting for 13% of revenue. This quarter, SG &A expenses increased, mainly due to rising costs of non-cash stock-based compensation and increased costs related to the company's annual bonus plan.

Net Profit and Earnings Per Share: Flotek reported that in the third quarter of 2026, the net profit was $13.3 million, with earnings per share after dilution at $0.34; in the same period last year, the net profit was $20.4 million, with earnings per share after dilution at $0.53. The net profit for the third quarter of 2025 included $12.6 million in non-cash tax benefits, due to the release of a portion of the company's deferred tax asset valuation allowance.

After adjustment, EBITDA (not GAAP): In the third quarter of 2026, the adjusted EBITDA was $19.5 million, compared to $10.4 million in the same period last year. For the third quarters and first nine months of 2026 and 2025, the adjusted EBITDA did not include non-cash amortization of contract assets, with amounts of $2.4 million, $1.3 million, $7.1 million, and $4.2 million respectively.

Details of the phone call

The company plans to hold a financial report conference call on Wednesday, November 4, 2026, at 9:00 a.m. (Central Time of the United States, 10:00 a.m. Eastern Time).

Participants can access the link Flotek https :// ir.flotekind.com / events, call the toll-free number 1-800-836-8184 (international number: 1-646-357-8785), or listen to the webcast five minutes before the start of the teleconference through the following link: https :// app.webinar.net / KaD61d81pgX. After the teleconference, the recording will be available on the company's website.

Regarding Flotek Industries, Inc.

Flotek Industries, Inc is a globally technology-driven company that combines near-real-time data analysis with advanced chemistry through the synergistic effect of proprietary technologies. It collaborates to address the complex challenges faced by customers in the energy, industrial, and infrastructure sectors, helping them optimize operations, enhance asset performance, and maximize financial returns.

Leveraging over 130 patents, more than 20 years of field and laboratory data, and a global presence in over 59 countries, Flotek provides innovative data-driven solutions aimed at creating measurable value throughout the entire lifecycle of energy and infrastructure.

Flotek is headquartered in Houston, Texas, and its common stocks are traded on the New York Stock Exchange under the stock code “FTK”. For more information, please visit www.flotekind.com.

Forward-looking Statements

Certain statements in this press release constitute forward-looking statements (as defined under Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934), which relate to the business, financial condition, operating results, and prospects of Flotek Industries, Inc. Terms such as will, continue, expects, anticipates, intends, plans, believes, seeks, estimates, may, could, should, target, forecast, project, potential, and their variations are used to identify these forward-looking statements, but they are not the only manner in which such statements may be identified. Although the forward-looking statements in this press release reflect management's best judgment, they are based solely on facts and factors known to management at the time. Therefore, forward-looking statements are inherently subject to risks and uncertainties, and actual results may differ significantly from those discussed in the forward-looking statements.These statements include, but are not limited to: the company's financial guidelines and outlook, including expected revenue and adjusted EBITDA; the amount, timing, and source of funds for the company's data analysis and capital investment plans, as well as their expected returns; the expected income under the company's long-term contracts, including long-term supply agreements with ProFrac Services and LLC, along with the minimum purchase requirements therein; the total duration of such contracts and the possibilities for extension, renewal, or early termination; the timing of equipment expansion and deployment; the total power capacity and operational performance after the equipment is put into operation; the company's ability to fulfill the contract terms and conditions; the expansion of the company's technology to new markets and new applications, including power generation behind meters and other industrial and infrastructure applications; as well as the expected growth of the company's international business.Factors that may lead to significant differences between actual results and expected results include, but are not limited to: the company's dependence on related parties ProFrac Services, LLC, the latter of which contributes a considerable portion of the company's revenue, as well as changes in the activity level, financial condition, or procurement decisions of ProFrac; the company's debt, including term loans and asset-backed mortgages, and its ability to comply with relevant contracts and other restrictions; whether the company can execute its capital investment plans according to budget and plan; the demand and pricing of the company's products and services, which are affected by oil and gas prices and drilling and completion activities; whether the company can successfully commercialize its technology and expand into areas beyond oil and gas; risks associated with international business, including those in the Middle East region; the outcome of pending shareholder lawsuits and other investigations or legal proceedings described in the company's documents; and risks beyond the company's control in its projects, including but not limited to fuel supply assurance, international logistics, obtaining permits and government approvals, meeting guarantee requirements, performance guarantees and financing needs, delivery of third-party equipment, construction execution and schedule arrangements, meeting deadlines and system integration, actions taken by governments, regulatory or supervisory agencies, changes in government policies, tariffs and trade restrictions, political and regulatory developments, geopolitical instability or armed conflicts, and extreme weather events. For more information on risks and uncertainties that may affect the company, please refer to the company's most recent 10-K, 10-Q, and 8-K filings submitted to the U.S. Securities and Exchange Commission (including the "Risk Factors" section), as well as other SEC documents and publicly available documents. Readers should not rely too heavily on these forward-looking statements, which are only valid as of the date of this press release. The company has no obligation to revise or update any forward-looking statements due to events or circumstances that may occur after the release date.