Flotek Industries (FTK) Q1 2026 earnings summary

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 Technologies performance, despite a 21% decline in North American completions activity.

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

• Net income was $4.7 million ($0.12 per share), down from $5.4 million ($0.17 per share) due to higher depreciation, interest, and tax rate.

• Data Analytics accounted for 50% of gross profit, up from 8% in the prior-year quarter.

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

Financial highlights

• Total revenue: $70.1 million (Q1 2026) vs. $55.4 million (Q1 2025), the highest since Q4 2017.

• Gross profit: $15.5 million (22% margin), up from $12.4 million (22.5% 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 lease.

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

Outlook and guidance

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

• Data Analytics backlog for 2026 is $34.1 million, with a three-year backlog exceeding $90 million.

• Chemistry revenue expected to recover in Q2 and reach Q1 2025 levels by year-end.

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

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