Flotek Industries (FTK) investor relations material

Executive summary

• Revenue for Q1 2026 increased 27% year-over-year to $70.1 million, driven by a 295% surge in Data Analytics revenue and strong Chemistry segment performance, with Data Analytics now representing 50% of gross profit.

• Net income for Q1 2026 was $4.7 million, down from $5.4 million in Q1 2025, with diluted EPS of $0.12.

• Adjusted EBITDA grew 44% year-over-year to $9.1 million, reflecting operational improvements and margin expansion.

• XSPCT Analyzer was named Product of the Year at the 2026 Analyzer Technology Conference.

• Launched first power services contract, diversifying revenue beyond traditional oilfield applications.

Financial highlights

• Total revenue: $70.1 million in Q1 2026, up from $55.4 million in Q1 2025, the highest since Q4 2017.

• Gross profit: $15.5 million (22% margin), up from $12.4 million (22–23% margin) year-over-year.

• Adjusted EBITDA: $9.1 million (Q1 2026) vs. $6.3 million (Q1 2025).

• Related party revenue increased $21 million (70%) year-over-year, with $14 million from chemistry and $7 million from PowerTech.

• SG&A expenses rose 10% year-over-year due to stock-based compensation timing; G&A (ex-stock comp) fell to 8.7% of revenue.

Outlook and guidance

• 2026 revenue guidance: $270M–$290M; adjusted EBITDA: $36M–$41M, implying 18% and 17% growth at midpoints.

• Data Analytics expected to surpass Chemistry as the largest profit contributor in 2026.

• Multi-year backlog for Data Analytics exceeds $90 million, with $34.1 million expected in 2026.

• Full-year 2026 DA segment revenue from the Lease Agreement projected at ~$27 million.

• Effective tax rate expected at 23%-26% going forward, mostly non-cash.