Flowco Holdings Inc. Reports Third Quarter 2026 Results
Flowco Holdings Inc. (FLOC) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Flowco Holdings Inc. Reports Third Quarter 2026 Results HOUSTON -- (BUSINESS WIRE) -- Flowco Holdings Inc. (NYSE: FLOC) (“Flowco” or the “Company”), a provider of production optimization, artificial lift and emissions management and monetization solutions for the oil
How this was made
The 30-second read
Why it matters
The earnings beat and new dividend suggest strong cash flow, likely prompting short‑term buying pressure.
Market read
First‑report earnings release with solid financials and a dividend launch, offering a clear catalyst for traders.
What to watch
The acquisition of Lifting Solutions adds integration risk and may dilute near‑term earnings.
Flowco reported third-quarter revenues of $258.6 million, net income of $40.7 million, Adjusted EBITDA of $103.9 million and Free Cash Flow of $72.4 million.
Revenue, net income, Adjusted EBITDA, operating cash flow and Free Cash Flow increased from both the second quarter of 2026 and the third quarter of 2025. Production Solutions and Natural Gas Technologies both grew sequentially, while the company expanded its repurchase authorization and maintained substantial credit-facility availability.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total revenuesGAAP | $258.6M | – | – |
| Q3 2026 rental revenuesGAAP | $141.8M | – | – |
| Q3 2026 sales revenuesGAAP | $116.9M | – | – |
| Q3 2026 cost of rentalsGAAP | $36.87M | – | – |
| Q3 2026 cost of salesGAAP | $84.65M | – | – |
| Q3 2026 selling, general and administrative expensesGAAP | $39.85M | – | – |
| Q3 2026 depreciation and amortizationGAAP | $48.91M | – | – |
| Q3 2026 loss on sale of equipmentGAAP | $422K | – | – |
| Q3 2026 income from operationsGAAP | $47.93M | – | – |
| Q3 2026 interest expense, netGAAP | −$4.86M | – | – |
| Q3 2026 income before provision for income taxesGAAP | $42.84M | – | – |
| Q3 2026 income tax benefit (provision)GAAP | −$2.13M | – | – |
| Q3 2026 net incomeGAAP | $40.71M | – | – |
| Q3 2026 net income attributable to redeemable non-controlling interestsGAAP | $20.59M | – | – |
| Q3 2026 net income attributable to Flowco Holdings Inc.GAAP | $20.13M | – | – |
| Q3 2026 basic earnings per shareGAAP | $ 0.45 | – | – |
| Q3 2026 diluted earnings per shareGAAP | $ 0.40 | – | – |
| Q3 2026 Adjusted Net Incomenon-GAAP | $47.97M | – | – |
| Q3 2026 EBITDAnon-GAAP | $96.61M | – | – |
| Q3 2026 Adjusted EBITDAnon-GAAP | $103.9M | – | – |
| Q3 2026 Adjusted EBITDA Marginnon-GAAP | 40.2 % | – | – |
| Q3 2026 net cash provided by operating activitiesGAAP | $103.1M | – | – |
| Q3 2026 additions to property, plant and equipmentGAAP | −$30.71M | – | – |
| Q3 2026 Free Cash Flownon-GAAP | $72.39M | – | – |
| Q3 2026 Free Cash Flow Conversionnon-GAAP | 69.7 % | – | – |
| Nine months ended September 30, 2026 total revenuesGAAP | $704.0M | – | – |
| Nine months ended September 30, 2026 net incomeGAAP | $99.11M | – | – |
| Nine months ended September 30, 2026 income from operationsGAAP | $125.4M | – | – |
| Nine months ended September 30, 2026 diluted earnings per shareGAAP | $ 0.94 | – | – |
| Nine months ended September 30, 2026 net cash provided by operating activitiesGAAP | $277.0M | – | – |
| Nine months ended September 30, 2026 Free Cash Flownon-GAAP | $174.5M | – | – |
| Nine months ended September 30, 2026 Free Cash Flow Conversionnon-GAAP | 61.6 % | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Production SolutionsHigher Surface Equipment revenue and Adjusted EBITDA; third-quarter revenue included approximately $9 million in accelerated rental revenue associated with the release of certain Surface Equipment systems. | $178.6M | 4.5% | – |
| Natural Gas TechnologiesIncrease in Natural Gas Systems sales. | $80.01M | 23.1% | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- On October 30, 2026, the Board declared a quarterly cash dividend of $0.09 per share of Class A common stock, payable on November 24, 2026 to stockholders of record as of the close of business on November 13, 2026.
- Flowco MergeCo LLC will make a corresponding distribution of $0.09 per unit to holders of its common units.
- On November 2, 2026, the Board approved a $150 million increase to the existing share repurchase program, bringing total authorization to $200 million of Class A common stock. The expanded program has no expiration date.
- Q3 2026 repurchase of Class A common stock was $ —; nine-month repurchase of Class A common stock was $ (16,516 ).
- Q3 2026 dividends paid to Flowco Holdings Inc. shareholders were $ (10,114 ); nine-month dividends paid were $ (16,250 ).
What drove it
- U.S. operators' focus on enhancing returns from existing assets is driving demand for Flowco's solutions.
- Production Solutions Adjusted Segment EBITDA was $ 77,959 and Adjusted Segment EBITDA Margin was 43.6%, versus $ 71,019 and 41.6% in the second quarter of 2026. The margin increased 209 basis points, primarily reflecting a higher proportion of Surface Equipment revenue.
- Natural Gas Technologies Adjusted Segment EBITDA was $ 30,876 and Adjusted Segment EBITDA Margin was 38.6%, versus $ 27,759 and 42.7% in the second quarter of 2026. The margin decreased 413 basis points, primarily reflecting a higher proportion of Natural Gas Systems revenue.
- The company cited incremental orders for ESPs and gas lift equipment in Venezuela and the Middle East and stated that it completed the acquisition of Lifting Solutions subsequent to quarter-end.
- Valiant recently secured an award for future work from a large independent operator through an existing Flowco relationship.
Concerns
- Production Solutions third-quarter revenue included approximately $9 million in accelerated rental revenue associated with the release of certain Surface Equipment systems.
- Natural Gas Technologies Adjusted Segment EBITDA Margin decreased 413 basis points sequentially as Natural Gas Systems revenue represented a higher proportion of segment revenue.
- Long-term debt, net increased to $ 363,449 as of September 30, 2026 from $ 167,819 as of December 31, 2025.
- Q3 2026 transaction-related expenses were $ 1,716, associated with the Lifting Solutions acquisition, and Q3 2026 non-recurring charges were $ 860.
What to watch
- Redeployment of Surface Equipment systems released during the quarter based on identified customer demand.
- International growth following the Lifting Solutions acquisition and incremental ESP and gas lift equipment orders in Venezuela and the Middle East.
- Natural Gas Technologies revenue mix and the resulting effect on Adjusted Segment EBITDA Margin.
- Use of the $200 million Class A common stock repurchase authorization and implementation of the declared $0.09 per share quarterly dividend.
Balance sheet and cash flow
- Cash and cash equivalents were $ 137,815 as of September 30, 2026, compared with $ 4,522 as of December 31, 2025.
- Long-term debt, net was $ 363,449 as of September 30, 2026, compared with $ 167,819 as of December 31, 2025.
- Total assets were $ 2,061,020 as of September 30, 2026, compared with $ 1,646,351 as of December 31, 2025.
- Total liabilities were $ 682,162 as of September 30, 2026, compared with $ 288,427 as of December 31, 2025.
- As of October 30, 2026, outstanding borrowings under the senior secured revolving credit facility were $355.7 million, the current borrowing base was $721.8 million, and availability was $364.8 million.
- Q3 2026 net cash provided by operating activities was $ 103,101; net cash used in investing activities was $ (30,663 ); and net cash provided by financing activities was $ 46,188.
- Nine-month net cash paid in the Valiant acquisition was $ (161,846 ).
Analysis
Flowco delivered a stronger third quarter across revenue, profitability and cash generation. Total revenues were $ 258,622, compared with $ 235,859 in the second quarter of 2026 and $ 176,941 in the third quarter of 2025. Net income was $ 40,713, compared with $ 30,944 sequentially and $ 34,273 a year earlier. Income from operations reached $ 47,931, while Adjusted EBITDA was $ 103,865 and the Adjusted EBITDA Margin was 40.2 %.
Production Solutions remained the larger contributor, reporting revenue of $ 178,616 and Adjusted Segment EBITDA of $ 77,959. Management attributed the sequential improvement to higher Surface Equipment revenue and Adjusted EBITDA, with margin increasing 209 basis points to 43.6%. The quarter included approximately $9 million in accelerated rental revenue from released Surface Equipment systems, which the company is working to redeploy. Natural Gas Technologies generated $ 80,006 of revenue and $ 30,876 of Adjusted Segment EBITDA. Its revenue and Adjusted Segment EBITDA increased 23.1% and 11.2%, respectively, sequentially, but its 38.6% Adjusted Segment EBITDA Margin declined 413 basis points because Natural Gas Systems sales made up a higher share of revenue.
Cash conversion was robust. Net cash provided by operating activities was $ 103,101, compared with $ 82,467 in the third quarter of 2025. Additions to property, plant and equipment were $ (30,710 ), producing Free Cash Flow of $ 72,391 and Free Cash Flow Conversion of 69.7 %. For the nine months ended September 30, 2026, Free Cash Flow was $ 174,472 and net cash paid in the Valiant acquisition was $ (161,846 ).
The balance sheet ended the quarter with cash and cash equivalents of $ 137,815 and long-term debt, net of $ 363,449. As of October 30, 2026, revolver borrowings were $355.7 million and availability was $364.8 million under a $721.8 million current borrowing base. Subsequent to quarter-end, Flowco completed the Lifting Solutions acquisition and highlighted early international momentum. Capital allocation included a declared quarterly cash dividend of $0.09 per share and a $150 million increase in repurchase authorization, bringing total authorization to $200 million. The release did not provide forward financial guidance.
Management, verbatim
Flowco delivered a strong third quarter, with Adjusted EBITDA exceeding the high end of our guidance range and approximately $72 million of free cash flow, representing roughly 70% free cash flow conversion from Adjusted EBITDA.
Joe Bob Edwards, President and CEO
Our performance reflects the benefits of our production optimization orientation and consistent execution across both of our segments.
Joe Bob Edwards, President and CEO
We remain committed to disciplined capital allocation as we seek to create long-term value for our shareholders.
Joe Bob Edwards, President and CEO
Not in the filing
stated, not guessed- Forward revenue guidance
- Forward gross margin guidance
- Forward operating expenses guidance
- Forward tax-rate guidance
- Gross profit and gross margin
- Non-GAAP earnings per share
- Prior-quarter Free Cash Flow
- Prior-quarter operating cash flow
- Prior-quarter capital expenditures
- Prior earnings guidance or outlook for comparison
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. 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
Flowco provides production optimization, artificial lift and emissions‑management solutions for oil and gas operators.
Ticker impact
Flowco Holdings Inc. filed its Form 8‑K reporting Q3 2026 results with $258.6 M revenue, $40.7 M net income and a $0.09 quarterly dividend.
likely modest upside as investors price in robust cash flow and dividend initiation
Adjusted EBITDA of $103.9 M exceeds guidance, free cash flow conversion is ~70%, and the new dividend signals confidence, all of which typically support the stock.
Market effects
Highlights strength in oil‑field production optimization and artificial‑lift services, potentially boosting peer valuations in the energy services sector.
Positive for U.S. energy‑service stocks; limited immediate effect outside North America.
Reinforces demand for production‑optimization tech amid higher oil prices, modestly supporting global energy‑service outlook.
Counterpoint
If oil prices soften, demand for lift services could wane, making the earnings boost less sustainable.
Key entities
- companyFlowco Holdings Inc.
U.S. oil‑field services provider reporting Q3 2026 results.
