Flotek Raises 2026 Outlook as Q3 Revenue More Than Doubles

Flotek Industries (NYSE: FTK) more than doubled third-quarter revenue and raised its full-year 2026 outlook for the third time, supported by sharply higher international chemistry sales and continued expansion in Data Analytics.

Revenue reached $114.4 million for the quarter ended September 30, up 104% from $56.0 million a year earlier and marking the company’s highest quarterly revenue in 12 years. Adjusted EBITDA rose 87% to $19.5 million from $10.4 million, while gross profit increased 54% to $27.4 million from $17.8 million.

Net income declined 35% to $13.3 million, and diluted earnings per share fell to $0.34 from $0.53. The year-earlier results included a $12.6 million non-cash tax benefit, affecting the comparison. Flotek said revenue, net income and adjusted EBITDA increased in each quarter of 2026 through the third quarter.

Full-Year Outlook Raised

Flotek now expects 2026 revenue of $382 million to $390 million, compared with its previous range of $360 million to $370 million. The midpoint represents a 63% increase from 2025.

The company also raised its adjusted EBITDA forecast to $59 million to $62 million from $50 million to $54 million. The new midpoint implies 83% growth from 2025. The forecast does not add back approximately $9.3 million of expected non-cash contract-asset amortization for 2026.

Flotek said it could not reconcile its forward-looking adjusted EBITDA guidance to projected GAAP net income without unreasonable effort because certain items, including stock-based compensation and interest costs, cannot be predicted with sufficient certainty.

International Sales Lift Chemistry Technologies

Chemistry Technologies generated $96.3 million of third-quarter revenue, more than double the $47.2 million reported a year earlier and the segment’s strongest quarterly sales performance since 2017. Revenue under the company’s Chemistry Supply Agreement exceeded $50 million for the first time in a quarter.

International chemistry revenue climbed to $28.4 million from $2.2 million, accounting for 25% of Flotek’s total quarterly revenue compared with 4% a year earlier. The company is a primary chemistry supplier for unconventional operations in Saudi Arabia, where an extended supply operation supports activity through mid-2027. Management expects international sales to remain strong in the fourth quarter.

Data Analytics Expands Beyond Related-Party Business

Data Analytics revenue increased to $18.1 million from $8.9 million. External-customer revenue rose to $11.0 million from $2.8 million, exceeding the segment’s entire revenue in the year-earlier quarter. External customers accounted for 61% of segment revenue, up from 31%, while service revenue represented 79% of the third-quarter mix.

Power Services contributed $14.3 million of quarterly revenue and had more than $96 million of contracted backlog spanning 3.5 years. Flotek said its current footprint supports more than 4 gigawatts of distributed and conventional generation across more than 75 sites. The company had 41 PWRtek skids deployed or in service and plans to expand its gas-conditioning and distribution fleet in 2027.

Digital Valuation revenue increased 159% sequentially. Flotek had 135 Digital Valuation units deployed or on order, compared with 25 active units in 2025, and converted a production-surveillance trial into eight new data-as-a-service systems.

The company also received a second U.S. Environmental Protection Agency alternative-method approval for its VeraCAL technology on October 20. The approval allows VeraCAL to serve as an alternative to gas chromatography for refinery flare-gas monitoring under MACT CC rules. Flotek said the decision positions the technology for use across 130 operable U.S. refineries, while flare-monitoring requirements have also been extended to certain chemical and gasoline-distribution sites.

Term Loan Supports Data Analytics Investment

Flotek closed a $120 million term-loan facility in September, with $75 million funded at closing. Another $15 million is available through June 30, 2027, subject to a leverage-ratio test, while a further $30 million requires lender consent and is available through March 31, 2028, also subject to a leverage test.

The five-year facility matures in September 2031, carries a floating interest rate of SOFR plus 650 basis points and requires no principal payments for two years. Initial proceeds repaid a previous $40 million term loan, with the remaining funds expected to support 2027 Data Analytics capital spending, working capital and general corporate purposes. Flotek’s leverage ratio was 0.9 times as of September 30. Its $20 million asset-based lending facility remains in place, with maturity extended to October 31, 2027.

Flotek’s outlook remains subject to several uncertainties. The company depends on related party ProFrac Services for a significant share of revenue, leaving results exposed to changes in ProFrac’s activity, financial condition and purchasing decisions. Other risks include indebtedness and covenant compliance, execution of the capital plan, energy-sector demand and pricing, commercialization outside oil and gas, international operations, pending shareholder litigation, permitting, fuel supply, equipment delivery, financing requirements, tariffs, geopolitical instability and project delays.