Flotek Increases 2026 Guidance as Data Analytics Delivers Record Quarterly Revenue

HOUSTON, Aug. 4, 2026 — Flotek Industries, Inc. ("Flotek" or the "Company") (NYSE: FTK) today announced operational and financial results for the quarter ended June 30, 2026. As a result of strong year-to-date results combined with the Company's outlook on the remainder of the year, Flotek increased its previously issued 2026 guidance.

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

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

% Change

2026

2025

% Change

Total Revenues

$ 99,367

$ 58,350

70 %

$ 169,418

$ 113,712

49 %

Gross Profit

$ 23,783

$ 14,407

65 %

$ 39,324

$ 26,856

46 %

Net Income

$ 9,953

$ 1,768

463 %

$ 14,617

$ 7,148

104 %

Diluted Income Per Share

$ 0.26

$ 0.05

420 %

$ 0.38

$ 0.21

81 %

Adjusted EBITDA (1)

$ 16,788

$ 8,018

109 %

$ 25,881

$ 14,316

81 %

Second Quarter 2026 Highlights

• Total revenue grew 70% as compared to the second quarter of 2025.
• Data Analytics achieved record quarterly revenue of $19.2 million, with external customers representing 63% of segment revenue.
• Chemistry Technologies quarterly revenue totaled $80.2 million, the highest since 2017.
• Data Analytics comprised 51% of total gross profit versus 26% in the prior-year quarter.
• Net income and diluted net income per share increased 463% and 420%, respectively, as compared to the year-ago quarter.
• Adjusted EBITDA(1) totaled $16.8 million, a 109% increase from second quarter 2025.
• Announced a 10-year, $400 million power services contract to support 400 MW Puerto Rico gas power project.

2026 Guidance Update

Based on results through the first half of 2026 and the Company's current expectations, Flotek is increasing its guidance metrics for 2026 as follows (in millions):

Metric

Previous

Current

Total Revenues

$270-$290

$340-$350

Adjusted EBITDA(2)

$36-$41

$47-$51

The Company's updated 2026 guidance above does not include any potential impact from the Puerto Rico Power Services (PREPA) contract announced on August 3, 2026. The Company is working closely with the customer and other service providers to finalize the initial deployment schedule.

Management Commentary

Chief Executive Officer Dr. Ryan Ezell commented, "We delivered outstanding second-quarter results with each segment generating strong year-over-year growth. Data Analytics generated second-quarter 2026 gross profit of $12 million, representing 51% of total Company gross profit. For the first time, Data Analytics surpassed Chemistry as the largest contributor to overall gross profit, underscoring the continued momentum and scalability of the segment. Including our related-party revenues, domestic chemistry revenue increased 43% and international chemistry grew 172% compared with the second quarter of 2025 marking the segment's highest quarterly revenue in nearly 10 years.

Our second-quarter performance exemplifies the execution of our corporate strategy and strengthens the momentum of Flotek's industrialized pivot to a data-driven technology leader. Our recently announced contract award to support power initiatives in Puerto Rico validates our ongoing efforts to expand our portfolio of technologies beyond oil and gas, as we believe our real-time measurement solutions can play an important role in meeting the rapidly growing demand for behind the meter power generation and other differentiated industrial and infrastructure verticals. We believe these pursuits will significantly expand our addressable market and accelerate our pivot toward a more diversified and balanced platform."

Second Quarter 2026 Financial Results

• Revenue: Flotek reported total revenues of $99.4 million for the second quarter of 2026, an increase of 70% compared to total revenues of $58.4 million for the second quarter of 2025. Revenue during the quarter included a 53% increase in Chemistry revenue and a 223% increase in Data Analytics revenue as compared to the 2025 quarter. International Chemistry revenue totaled $10.6 million during the second quarter, as compared to $3.9 million in the year-ago period reflecting the Company's ongoing work in the Middle East. Data Analytics revenue during the quarter included $5.9 million related to the Company's utility infrastructure support agreement announced in March 2026. Revenue related to the minimum purchase requirements (the "Minimum Purchase Requirements") under the Company's long-term supply agreement with ProFrac Services, LLC, totaled $1.2 million and $7.8 million, during the second quarters of 2026 and 2025, respectively. The reduction in the Minimum Purchase Requirement during the current quarter was due to increased related party Chemistry revenue versus the year-ago quarter.

Segment Revenue Summary (in thousands)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

% Change

2026

2025

% Change

Chemistry Technologies:

External Revenues

$ 31,114

$ 22,543

38 %

$ 45,856

$ 44,552

3 %

Related Party Revenues

49,071

29,877

64 %

94,012

60,606

55 %

Total

$ 80,185

$ 52,420

53 %

$ 139,868

$ 105,158

33 %

Data Analytics:

Product Revenues

$ 5,177

$ 1,820

184 %

$ 7,030

$ 3,482

102 %

Service Revenues

14,005

4,110

241 %

22,520

5,072

344 %

Total

$ 19,182

$ 5,930

223 %

$ 29,550

$ 8,554

245 %

• Gross Profit: The Company generated gross profit of $23.8 million during the second quarter of 2026, or 24% of revenue, compared to $14.4 million during the second quarter of 2025, or 25% of revenue.
• Selling, General and Administrative ("SG&A") Expense: SG&A expense totaled $7.7 million for the second quarter of 2026, or 8% of revenue, compared to $6.8 million during the second quarter of 2025, or 12% of revenue. The increase in current quarter SG&A expense was primarily the result of higher non-cash stock compensation costs.
• Net Income and EPS: Flotek reported net income of $10.0 million, or $0.26 per diluted share, for the second quarter of 2026. This compares to net income of $1.8 million, or $0.05 per diluted share, for the second quarter of 2025. Second quarter 2025 net income and per share amounts were negatively impacted by $4.2 million of transaction costs associated with the PWRtekTM asset acquisition.
• Adjusted EBITDA (Non-GAAP)(1): Adjusted EBITDA totaled $16.8 million in the second quarter of 2026 as compared to $8 million in the second quarter of 2025. Adjusted EBITDA calculations for the second quarter of 2026 and 2025 do not add back non-cash amortization of contract assets totaling $2.4 million and $1.4 million, respectively.

(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 reconciliations to the most comparable GAAP measures. Calculations do not add back non-cash amortization of contract assets totaling $2.4 million and $1.4 million during the second quarters of 2026 and 2025, respectively and $4.7 million and $2.9 million during the six months ended June 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 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. 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 million during full-year 2026.

Conference Call Details

The Company plans to host its earnings conference call on Wednesday, August 5, 2026, 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/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/dYJWBo8V8lL 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.

FLOTEK INDUSTRIES, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data)

June 30, 2026

December 31, 2025

ASSETS

Current assets:

Cash and cash equivalents

$ 4,402

$ 5,731

Restricted cash

104

104

Accounts receivable, net of allowance for credit losses of $961 and $764 at June 30, 2026 and December 31, 2025, respectively

43,415

19,043

Accounts receivable, related party, net of allowance for credit losses of $0 at June 30, 2026 and December 31, 2025

70,711

64,204

Equipment credit, related party

9,521

—

Inventories, net

26,626

10,629

Other current assets

3,273

3,445

Current contract asset

9,485

7,621

Total current assets

167,537

110,777

Long-term contract asset

48,593

55,115

Property and equipment, net

23,245

20,344

Right-of-use assets

2,705

3,083

Deferred tax assets, net

24,410

29,152

Other long-term assets

1,546

1,578

TOTAL ASSETS

$ 268,036

$ 220,049

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$ 74,550

$ 48,317

Accrued liabilities

6,121

7,256

Income taxes payable

593

258

Interest payable, related party

997

1,008

Current portion of operating lease liabilities

1,324

1,251

Current portion of finance lease liabilities

160

153

Asset-based loan

10,400

3,332

Total current liabilities

94,145

61,575

Deferred revenue, long-term

55

—

Note payable - related party

39,632

39,584

Long-term operating lease liabilities

4,849

5,608

Long-term finance lease liabilities

142

224

TOTAL LIABILITIES

138,823

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 36,217,709 shares outstanding at June 30, 2026; 31,320,960 shares issued and 30,130,480 shares outstanding at December 31, 2025

4

3

Additional paid-in capital

437,088

434,964

Accumulated other comprehensive income

153

96

Accumulated deficit

(271,163)

(285,780)

Treasury stock, at cost; 1,222,856 and 1,190,480 shares at June 30, 2026 and December 31, 2025, respectively

(36,869)

(36,225)

Total stockholders' equity

129,213

113,058

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$ 268,036

$ 220,049

FLOTEK INDUSTRIES, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Revenue:

Revenue from external customers

$ 43,225

$ 25,182

$ 61,390

$ 49,605

Revenue from related party

56,142

33,168

108,028

64,107

Total revenues

99,367

58,350

169,418

113,712

Cost of goods sold

75,584

43,943

130,094

86,856

Gross profit

23,783

14,407

39,324

26,856

Operating costs and expenses:

Selling, general, and administrative

7,736

6,796

14,661

13,078

Asset acquisition expenses

—

4,195

—

4,195

Depreciation

664

374

1,295

626

Research and development

497

455

893

810

Gain on sale of property and equipment

—

—

—

(7)

Total operating costs and expenses

8,897

11,820

16,849

18,702

Income from operations

14,886

2,587

22,475

8,154

Other income (expense):

Interest expense

(1,371)

(983)

(2,703)

(1,212)

Other income, net

19

181

35

287

Total other expense

(1,352)

(802)

(2,668)

(925)

Income before income taxes

13,534

1,785

19,807

7,229

Income tax expense

(3,581)

(17)

(5,190)

(81)

Net income

$ 9,953

$ 1,768

$ 14,617

$ 7,148

Income per common share:

Basic

$ 0.28

$ 0.05

$ 0.40

$ 0.22

Diluted

$ 0.26

$ 0.05

$ 0.38

$ 0.21

Weighted average common shares:

Weighted average common shares used in computing basic income per common share

36,151

33,947

36,126

31,827

Weighted average common shares used in computing diluted income per common share

38,472

36,231

38,409

34,026

FLOTEK INDUSTRIES, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)

Six Months Ended June 30,

2026

2025

Cash flows from operating activities:

Net income

$ 14,617

$ 7,148

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

4,658

2,916

Depreciation

1,295

626

Amortization of deferred financing costs

189

157

Provision for credit losses, net of recoveries

197

261

Provision for excess and obsolete inventory

1,089

250

Gain on sale of property and equipment

—

(7)

Non-cash lease expense

378

624

Stock compensation expense

2,033

1,137

Deferred income tax expense

4,742

16

Changes in current assets and liabilities:

Accounts receivable

(24,570)

(5,096)

Accounts receivable, related party

(19,486)

(2,532)

Inventories

(16,585)

1,448

Income tax receivable

20

(32)

Other assets

52

(155)

Accounts payable

26,233

(1,722)

Accrued liabilities

(1,080)

(1,893)

Operating lease liabilities

(686)

(935)

Income taxes payable

335

37

Interest payable, related party

(11)

701

Net cash (used in) provided by operating activities

(6,580)

2,822

Cash flows from investing activities:

Capital expenditures

(1,239)

(1,309)

Proceeds from sale of assets

—

7

Net cash used in investing activities

(1,239)

(1,302)

Cash flows from financing activities:

Payments on long term debt

—

(60)

Proceeds from asset-based loan

122,150

106,950

Payments on asset-based loan

(115,082)

(106,685)

Payment of loan origination costs

(8)

—

Payment of note payable issuance costs

—

(480)

Payment of stock warrant issuance costs

—

(456)

Proceeds from exercise of April 2025 Warrant

1

—

Payments to tax authorities for shares withheld from employees

(644)

(60)

Proceeds from issuance of stock under Employee Stock Purchase Plan

83

68

Proceeds from issuance of stock from stock option exercises

8

8

Payments for finance leases

(75)

(25)

Net cash provided by (used in) financing activities

6,433

(740)

Effect of changes in exchange rates on cash and cash equivalents

57

(155)

Net change in cash and cash equivalents and restricted cash

(1,329)

625

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

4,402

5,028

Restricted cash at the end of period

104

103

Cash and cash equivalents and restricted cash at end of period

$ 4,506

$ 5,131

FLOTEK INDUSTRIES, INC. UNAUDITED RECONCILIATION OF NON-GAAP ITEMS AND NON-CASH ITEMS IMPACTING EARNINGS (in thousands)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Net income

$ 9,953

$ 1,768

$ 14,617

$ 7,148

Interest expense

1,371

983

2,703

1,212

Income tax expense

3,581

17

5,190

81

Depreciation and amortization

664

374

1,295

626

EBITDA (Non-GAAP) (1)

$ 15,569

$ 3,142

$ 23,805

$ 9,067

Stock compensation expense

1,210

676

2,034

1,137

Severance and retirement

—

7

11

51

Contingent liability revaluation

—

(2)

—

(127)

Gain on disposal of asset

—

—

—

(7)

Non-Recurring professional fees (2)

9

4,195

31

4,195

Adjusted EBITDA (Non-GAAP) (1)

$ 16,788

$ 8,018

$ 25,881

$ 14,316

(1)

Management believes that EBITDA and Adjusted EBITDA for the three and six months ended June 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 $1.4 million during the three months ended June 30, 2026 and 2025, respectively, and $4.7 million and $2.9 million during the six months ended June 30, 2026 and 2025, respectively.

(2)

Includes $4.2 million of expenses for the three and six months ended June 30, 2025 related to an asset acquisition.