FLOTEK INDUSTRIES INC/CN/ (FTK): Results of Operations and Financial Condition
FLOTEK INDUSTRIES INC/CN/ (FTK) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Flotek Increases 2026 Guidance as Data Analytics Delivers Record Quarterly Revenue HOUSTON, August 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 re
How this was made
The 30-second read
Why it matters
The company increased full-year revenue and adjusted EBITDA ranges and highlighted segment momentum, with Data Analytics surpassing Chemistry as the largest gross profit contributor for the first time. It also disclosed a 10-year, $400M power services contract for a 400 MW Puerto Rico gas power project, while stating the guidance update does not include potential contract impact yet.
Market read
Traders can update models immediately using the raised 2026 guidance ranges and assess incremental upside from the newly announced Puerto Rico contract, which is not yet reflected in guidance.
What to watch
Related-party chemistry revenue is large and the minimum purchase requirement under the ProFrac supply agreement declined, which could affect future revenue quality and comparability.
Flotek Increases 2026 Guidance as Data Analytics Delivers Record Quarterly Revenue
Second-quarter total revenues grew 70%, net income increased 463%, adjusted EBITDA increased 109%, and the Company increased its 2026 revenue and adjusted EBITDA guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total Revenues, three months ended June 30, 2026 (in thousands)GAAP | $ 99,367 | – | 70% |
| Gross Profit, three months ended June 30, 2026 (in thousands)GAAP | $ 23,783 | – | 65% |
| Gross profit as a percentage of revenue, second quarter of 2026GAAP | 24% of revenue | – | – |
| SG&A expense, second quarter of 2026GAAP | $7.7 million | – | – |
| SG&A expense as a percentage of revenue, second quarter of 2026GAAP | 8% of revenue | – | – |
| Net Income, three months ended June 30, 2026 (in thousands)GAAP | $ 9,953 | – | 463% |
| Diluted Income Per Share, three months ended June 30, 2026GAAP | $ 0.26 | – | 420% |
| Adjusted EBITDA, three months ended June 30, 2026 (in thousands)non-GAAP | $ 16,788 | – | 109% |
| Total Revenues, six months ended June 30, 2026 (in thousands)GAAP | $ 169,418 | – | 49% |
| Gross Profit, six months ended June 30, 2026 (in thousands)GAAP | $ 39,324 | – | 46% |
| Net Income, six months ended June 30, 2026 (in thousands)GAAP | $ 14,617 | – | 104% |
| Diluted Income Per Share, six months ended June 30, 2026GAAP | $ 0.38 | – | 81% |
| Adjusted EBITDA, six months ended June 30, 2026 (in thousands)non-GAAP | $ 25,881 | – | 81% |
| Chemistry Technologies external revenues, three months ended June 30, 2026 (in thousands)GAAP | $ 31,114 | – | 38% |
| Chemistry Technologies related party revenues, three months ended June 30, 2026 (in thousands)GAAP | $ 49,071 | – | 64% |
| Chemistry Technologies external revenues, six months ended June 30, 2026 (in thousands)GAAP | $ 45,856 | – | 3% |
| Chemistry Technologies related party revenues, six months ended June 30, 2026 (in thousands)GAAP | $ 94,012 | – | 55% |
| Data Analytics product revenues, three months ended June 30, 2026 (in thousands)GAAP | $ 5,177 | – | 184% |
| Data Analytics service revenues, three months ended June 30, 2026 (in thousands)GAAP | $ 14,005 | – | 241% |
| Data Analytics product revenues, six months ended June 30, 2026 (in thousands)GAAP | $ 7,030 | – | 102% |
| Data Analytics service revenues, six months ended June 30, 2026 (in thousands)GAAP | $ 22,520 | – | 344% |
| Data Analytics gross profit, second quarter of 2026GAAP | $12 million | – | – |
| Data Analytics share of total gross profit, second quarter of 2026GAAP | 51% of total Company gross profit | – | – |
| International Chemistry revenue, second quarter of 2026GAAP | $10.6 million | – | – |
| Minimum Purchase Requirements revenue, second quarter of 2026GAAP | $1.2 million | – | – |
| Utility infrastructure support agreement revenue, second quarter of 2026GAAP | $5.9 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Chemistry Technologies, three months ended June 30, 2026International Chemistry revenue totaled $10.6 million, compared to $3.9 million in the year-ago period, reflecting the Company’s ongoing work in the Middle East. Including related-party revenues, domestic chemistry revenue increased 43% and international chemistry grew 172% compared with the second quarter of 2025. | $ 80,185 | – | 53% |
| Data Analytics, three months ended June 30, 2026Revenue included $5.9 million related to the Company’s utility infrastructure support agreement announced in March 2026. External customers represented 63% of segment revenue. | $ 19,182 | – | 223% |
| Chemistry Technologies, six months ended June 30, 2026External revenues were $ 45,856 and related party revenues were $ 94,012. | $ 139,868 | – | 33% |
| Data Analytics, six months ended June 30, 2026Product revenues were $ 7,030 and service revenues were $ 22,520. | $ 29,550 | – | 245% |
2026 outlook
- Revenue$340-$350
- NoteAdjusted EBITDA: $47-$51
- NoteGuidance does not add back non-cash amortization of contract assets estimated to total approximately $9 million during full-year 2026.
- NoteUpdated guidance does not include any potential impact from the Puerto Rico Power Services (PREPA) contract announced on August 3, 2026.
What drove it
- Data Analytics achieved record quarterly revenue of $19.2 million, while Chemistry Technologies quarterly revenue totaled $80.2 million, the highest since 2017.
- Data Analytics surpassed Chemistry as the largest contributor to overall gross profit, contributing 51% of total Company gross profit.
- International Chemistry revenue reflected ongoing work in the Middle East.
- Data Analytics revenue included $5.9 million from the utility infrastructure support agreement announced in March 2026.
- The Company announced a 10-year, $400 million power services contract to support a 400 MW Puerto Rico gas power project.
Concerns
- Gross profit was 24% of revenue in the second quarter of 2026, compared to 25% of revenue in the second quarter of 2025.
- Minimum Purchase Requirements revenue under the long-term supply agreement with ProFrac Services, LLC totaled $1.2 million, compared with $7.8 million in the year-ago quarter.
- SG&A expense increased to $7.7 million from $6.8 million, primarily due to higher non-cash stock compensation costs.
- The updated 2026 guidance excludes any potential impact from the Puerto Rico Power Services (PREPA) contract.
- The Company identified execution risks for its projects, including securing fuel supply, international logistics, permits and governmental approvals, financial requirements, third-party equipment delivery, construction execution and scheduling, integrating systems, political and regulatory developments, geopolitical instability or armed conflicts, and severe weather events.
What to watch
- The initial deployment schedule for the Puerto Rico Power Services (PREPA) contract, which the Company is working to finalize with the customer and other service providers.
- Data Analytics revenue from external customers, which represented 63% of segment revenue in the second quarter.
- Chemistry Technologies revenue mix between external revenues and related party revenues.
- Progress toward 2026 total revenue guidance of $340-$350 and adjusted EBITDA guidance of $47-$51.
- Gross-profit mix following Data Analytics becoming the largest contributor to overall gross profit.
Analysis
Flotek reported a strong second quarter, with total revenues of $99.4 million, up 70% from $58.4 million in the second quarter of 2025. Gross profit increased 65% to $23.8 million, net income increased 463% to $10.0 million, and diluted income per share increased 420% to $0.26. Adjusted EBITDA, a non-GAAP measure, totaled $16.8 million, a 109% increase from the prior-year quarter. For the six months ended June 30, 2026, total revenues increased 49% to $169.4 million and adjusted EBITDA increased 81% to $25.9 million.
Both operating segments expanded. Chemistry Technologies revenue increased 53% to $80.2 million, supported by international Chemistry revenue of $10.6 million versus $3.9 million in the year-ago period and ongoing work in the Middle East. Data Analytics revenue increased 223% to $19.2 million, including $5.9 million associated with the utility infrastructure support agreement announced in March 2026. Data Analytics service revenues increased 241% to $14.0 million and product revenues increased 184% to $5.2 million.
Mix shifted materially toward Data Analytics profitability. The segment produced $12 million of gross profit and represented 51% of total Company gross profit, compared with 26% in the prior-year quarter. The Company stated that this was the first quarter in which Data Analytics surpassed Chemistry as the largest contributor to overall gross profit. Consolidated gross profit as a percentage of revenue was 24%, compared with 25% in the prior-year quarter. SG&A expense was $7.7 million, compared with $6.8 million, with the increase attributed primarily to higher non-cash stock compensation costs.
A notable revenue-mix item was the decline in Minimum Purchase Requirements revenue under the ProFrac Services, LLC long-term supply agreement to $1.2 million from $7.8 million. The Company attributed the reduction to increased related party Chemistry revenue versus the year-ago quarter. Chemistry Technologies second-quarter revenue included $49.1 million of related party revenues and $31.1 million of external revenues, while Data Analytics external customers represented 63% of segment revenue.
Management increased 2026 total revenue guidance to $340-$350 from $270-$290 and adjusted EBITDA guidance to $47-$51 from $36-$41. The updated outlook excludes any potential contribution from the 10-year, $400 million power services contract supporting a 400 MW Puerto Rico gas power project. The initial deployment schedule remains to be finalized, making the pace of execution on that project, Data Analytics external-customer growth, and consolidated gross-profit mix key reported items to follow.
Management, verbatim
We delivered outstanding second-quarter results with each segment generating strong year-over-year growth.
Dr. Ryan Ezell, Chief Executive Officer
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.
Dr. Ryan Ezell, Chief Executive Officer
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.
Dr. Ryan Ezell, Chief Executive Officer
Not in the filing
stated, not guessed- GAAP operating income or loss
- GAAP operating margin
- GAAP income tax expense or benefit and tax rate
- Operating cash flow
- Free cash flow
- Cash and cash equivalents
- Debt and net debt
- Share repurchases
- Dividends
- Capital expenditures
- Prior-quarter comparisons for reported income statement and segment metrics
- Forward gross-margin guidance
- Forward operating-expense guidance
- Forward tax-rate guidance
- Prior release outlook section for a comparison of actual results with prior guidance
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Flotek reported Q2 2026 results for the quarter ended June 30, 2026 and updated its 2026 guidance in an SEC 8-K exhibit.
Ticker impact
Flotek raised 2026 guidance to $340-$350M revenue and $47-$51M adjusted EBITDA after Q2 results and record Data Analytics revenue.
Bullish bias for the next few sessions as traders price higher full-year targets and contract-backed visibility.
The filing is a primary disclosure (8-K with Exhibit 99.1) that updates quantitative guidance and adds a large, long-duration contract, both of which directly affect valuation assumptions.
Market effects
Supports the narrative of industrial pivot toward data analytics and power-adjacent services, potentially improving sentiment toward similar energy-technology service providers.
Puerto Rico power project contract may increase attention on utility infrastructure and behind-the-meter generation-related spending.
International Chemistry revenue growth (Middle East) reinforces diversification beyond US oil and gas exposure.
Counterpoint
The guidance update explicitly excludes any potential impact from the Puerto Rico PREPA contract, so upside may already be partially deferred or uncertain.
Key entities
- companyFlotek Industries, Inc.
NYSE-listed company reporting Q2 2026 results, raising 2026 guidance, and announcing a large Puerto Rico power services contract.
- contractPuerto Rico power services contract (PREPA)
10-year, $400 million power services contract to support a 400 MW Puerto Rico gas power project, announced Aug 3, 2026.
- counterpartyProFrac Services, LLC
Long-term supply agreement counterparty referenced via minimum purchase requirements affecting revenue comparability.
