Flotek Industries (FTK) Hội nghị công bố kết quả kinh doanh quý 3/2026: Doanh thu tăng gấp đôi, nâng định hướng

Những điểm chính

• Flotek Industries (FTK) đạt doanh thu hơn 114 triệu USD trong quý 3/2026, tăng hơn gấp đôi so với quý 3/2025 và là mức doanh thu theo quý cao nhất kể từ năm 2014.
• Doanh thu mảng Phân tích Dữ liệu tăng 104% so với cùng kỳ năm trước lên 18,1 triệu USD. Mảng này đạt biên lợi nhuận gộp 68% và đóng góp 45% vào lợi nhuận gộp của công ty dù chỉ chiếm 16% tổng doanh thu.
• Doanh thu mảng Công nghệ Hóa chất cũng tăng 104%. Doanh thu hóa chất quốc tế đạt 28,4 triệu USD, tăng mạnh so với mức 2,2 triệu USD của cùng kỳ năm trước và tăng 168% so với quý trước.
• EBITDA điều chỉnh tăng 87% lên 19,5 triệu USD. Lợi nhuận ròng đạt 13,3 triệu USD, tương đương 0,34 USD trên mỗi cổ phiếu pha loãng, so với mức 20,3 triệu USD, hay 0,53 USD trên mỗi cổ phiếu trong quý 3/2025 – thời điểm kết quả kinh doanh bao gồm khoản lợi ích thuế 12 triệu USD.
• Flotek đã nâng dự báo cả năm 2026 lần thứ ba. Công ty hiện kỳ vọng doanh thu đạt từ 382 triệu đến 390 triệu USD và EBITDA điều chỉnh đạt từ 59 triệu đến 62 triệu USD.
• Ban lãnh đạo dự kiến chi tiêu vốn từ 15 triệu đến 20 triệu USD trong năm 2027 để mở rộng thiết bị Phân tích Dữ liệu, hàng tồn kho thiết bị đo lường và công suất sản xuất.

Dữ liệu tài chính cốt lõi

Nếu không tính khoản phạt thiếu hụt đơn hàng, ban lãnh đạo cho biết biên lợi nhuận gộp quý 3/2026 cao hơn khoảng 400 điểm cơ bản so với cùng kỳ năm trước. Mức cải thiện này phản ánh sự tăng trưởng của mảng Phân tích Dữ liệu và doanh số bán hóa chất có biên lợi nhuận cao hơn.

Hiệu quả kinh doanh và hoạt động

Phân tích Dữ liệu

Gần 80% doanh thu mảng Phân tích Dữ liệu đến từ các gói dịch vụ Dữ liệu dưới dạng dịch vụ (Data-as-a-Service). Khách hàng bên ngoài chiếm 61% doanh thu phân khúc, tăng từ mức 31% trong quý 3/2025. Doanh thu Phân tích Dữ liệu từ khách hàng bên ngoài tăng lên 11 triệu USD từ mức 2,8 triệu USD.

Dịch vụ Năng lượng (Power Services) và định giá kỹ thuật số là những động lực tăng trưởng chính. Flotek kỳ vọng nền tảng PowerTech của mình sẽ hỗ trợ gần 6 gigawatt điện sau công tơ vào quý 1/2027 sau khi bổ sung thêm 1 gigawatt thông qua các dịch vụ đo lường hoặc kiểm soát.

Flotek kết thúc quý với 41 cụm thiết bị PowerTech. Ban lãnh đạo cho biết khoảng 25 đến 28 cụm đang phục vụ ProFrac, trong khi phần còn lại hỗ trợ các công ty tiện ích, ứng dụng điện năng và các dự án trung tâm dữ liệu sơ bộ.

Công ty dự kiến sẽ nhận được bốn cụm phân phối khí tự nhiên thế hệ mới vào cuối năm 2026, trong đó ba cụm đã được ký hợp đồng. Các hệ thống này kết hợp đo lường, xử lý và phân phối, được thiết kế cho các ứng dụng tuabin và trung tâm dữ liệu. Flotek có kế hoạch chế tạo thêm năm cụm nữa vào năm 2027.

Số lượng thiết bị định giá kỹ thuật số được triển khai đã vượt quá 135 thiết bị trong quý 3. Ban lãnh đạo dự kiến quý 4 sẽ là quý bàn giao lớn nhất và cho biết Flotek sẽ vượt mục tiêu 150 thiết bị trong năm 2026. Mảng định giá kỹ thuật số đã tăng từ 3% doanh thu Phân tích Dữ liệu trong quý 2 lên 9% trong quý 3, nhờ các dịch vụ dữ liệu định kỳ theo mô hình cho thuê và các ứng dụng mở rộng trong giám sát sản xuất, thu gom và giao nhận thương quyền.

VeraCAL đã nhận được phê duyệt phương pháp thay thế thứ hai từ EPA, mở rộng phạm vi ứng dụng trong đo lường khí đuốc, khí xả và nhiệt trị tại các nhà máy lọc dầu. Ban lãnh đạo ước tính tổng thị trường có thể tiếp cận (TAM) đối với việc giám sát khí đuốc nhà máy lọc dầu đạt hơn 40 triệu USD.

Công nghệ Hóa chất

Doanh thu hóa chất quốc tế là động lực tăng trưởng chính, tăng từ 1,9 triệu USD trong quý 1 lên 10,6 triệu USD trong quý 2 và 28,4 triệu USD trong quý 3. Lũy kế từ đầu năm đến nay, doanh thu quốc tế đạt 40,8 triệu USD, so với mức 10 triệu USD cùng kỳ năm trước.

Doanh số bán hóa chất cho khách hàng bên ngoài đạt khoảng 46 triệu USD, bao gồm 17,5 triệu USD doanh thu nội địa và 28,4 triệu USD doanh thu quốc tế. Doanh thu hóa chất từ các bên liên quan tăng 87% và lần đầu tiên vượt 50 triệu USD theo thỏa thuận cung cấp dài hạn được thiết lập vào năm 2022.

Ban lãnh đạo cho rằng sự mở rộng quốc tế chủ yếu nhờ vào việc gia tăng thị phần, đặc biệt là tại Ả Rập Xê Út. Công ty cũng đề cập đến các cơ hội tiềm năng tại UAE và Mỹ Latinh, nơi họ dự định kết hợp các dịch vụ hóa chất, giám sát sản xuất và Phân tích Dữ liệu.

Dự báo từ ban lãnh đạo

Triển vọng EBITDA điều chỉnh không cộng ngược lại khoảng 9,3 triệu USD chi phí khấu hao tài sản hợp đồng phi tiền mặt dự kiến.

Dự báo giả định doanh thu hóa chất quốc tế trong quý 4 duy trì gần mức của quý 3, qua đó đưa doanh thu hóa chất quốc tế cả năm 2026 lên khoảng 70 triệu USD. Dự báo này không bao gồm doanh thu quý 4 từ hợp đồng Dịch vụ Năng lượng Montana vốn đã hết hạn ban đầu vào tháng 9.

Đối với năm 2027, ban lãnh đạo dự kiến sẽ đầu tư từ 15 triệu đến 20 triệu USD vào thiết bị xử lý và phân phối khí, dụng cụ đo lường và công suất sản xuất. Ban lãnh đạo cho biết Dịch vụ Năng lượng, định giá kỹ thuật số và dịch vụ độ tin cậy điện sẽ đóng góp phần lớn mức tăng trưởng phần trăm, trong khi mảng hóa chất quốc tế dự kiến duy trì đà tăng trưởng mạnh. Công ty cũng dự báo hoạt động trên đất liền tại Bắc Mỹ sẽ đi ngang hoặc giảm, dù dự báo chính thức cho năm 2027 vẫn chưa được công bố.

Rủi ro và các điểm cần theo dõi

• Hợp đồng Dịch vụ Năng lượng Montana đã hết hạn vào tháng 9. Flotek đang đánh giá các công việc bổ sung, nhưng dự báo năm 2026 của công ty giả định không có doanh thu quý 4 từ hợp đồng này.
• Ban lãnh đạo dự báo hoạt động trên đất liền tại Bắc Mỹ sẽ đi ngang hoặc giảm vào năm 2027, có thể tạo ra bối cảnh nhu cầu hóa chất nội địa trầm lắng hơn.
• Việc mở rộng quy mô mảng Phân tích Dữ liệu đòi hỏi phải tiếp tục đầu tư vốn và bổ sung công suất sản xuất. Sự đón nhận của thị trường, thử nghiệm thực địa và tích hợp phần mềm vẫn đóng vai trò quan trọng đối với các ứng dụng OEM mới hơn.
• Dự án tiện ích của Flotek tại Puerto Rico đã kết thúc sau khi liên danh liên kết không thể cung cấp bảo lãnh thực hiện hợp đồng. Ban lãnh đạo cho biết mọi hoạt động tái triển khai sẽ đòi hỏi một cơ cấu hợp đồng và định giá có thể chấp nhận được.
• Ban lãnh đạo đã viện dẫn tình trạng bất ổn địa chính trị và sự không chắc chắn về nguồn cung ở Trung Đông là những yếu tố trọng yếu ảnh hưởng đến thị trường năng lượng và các cân nhắc về an ninh.

Điểm nhấn phiên hỏi đáp với chuyên gia phân tích

• Triển khai PowerTech: Đội ngũ cụm thiết bị đang mở rộng vượt ra ngoài phạm vi cấp điện cho mỏ dầu sang các công ty tiện ích, trung tâm dữ liệu và các ứng dụng điện phân tán khác. Ban lãnh đạo cho biết công suất theo kế hoạch được định hình từ các cơ hội khách hàng đã xác định, với thiết bị bổ sung nhằm đáp ứng nhu cầu phát sinh trong thời gian ngắn.
• Hiệu quả kinh tế của định giá kỹ thuật số: Các ứng dụng thượng nguồn như giám sát sản xuất có thể đạt được mức giá tốt hơn so với các mục đích giao nhận thương quyền truyền thống, do ban lãnh đạo tin rằng chúng tạo ra giá trị lớn hơn cho khách hàng. Các mô hình cho thuê đang ngày càng được đón nhận và hỗ trợ doanh thu định kỳ.
• Cơ hội từ OEM: Một khách hàng tiềm năng đang hoàn tất quá trình thử nghiệm nghiệm thu thực địa và tích hợp phần mềm cho XpectFG. Ba khách hàng khác đang đánh giá các ứng dụng động cơ trực tiếp nhằm cải thiện hiệu quả sử dụng nhiên liệu hoặc ngăn ngừa giảm công suất.
• Mở rộng sang lọc dầu: Ban lãnh đạo cho biết các chứng nhận của Flotek hiện cho phép công nghệ đo lường của công ty đáp ứng nhiều ứng dụng trong nhà máy lọc dầu vốn trước đây phụ thuộc vào máy sắc ký khí, qua đó mở rộng số lượng điểm đo tiềm năng.
• Hóa chất quốc tế: Ban lãnh đạo nhận định tăng trưởng tại Ả Rập Xê Út chủ yếu nhờ gia tăng thị phần và đã xác định thêm hoạt động đấu thầu tại UAE, cùng với các cơ hội dài hạn hơn ở Mỹ Latinh.
• Bảng cân đối kế toán và nguồn vốn: Flotek đã hoàn tất khoản vay có kỳ hạn bảo đảm cao cấp với 75 triệu USD giải ngân ban đầu trong gói tín dụng 120 triệu USD. Dựa trên nợ ròng tính đến ngày 30 tháng 9 và điểm giữa của dự báo EBITDA điều chỉnh năm 2026, ban lãnh đạo tính toán đòn bẩy tài chính ở mức dưới 1 lần.

Toàn văn biên bản cuộc gọi báo cáo kết quả kinh doanh

Toàn văn cuộc gọi công bố kết quả kinh doanh

Phần trình bày của ban lãnh đạo

Operator

Good morning, ladies and gentlemen, and welcome to the Flotek Industries Third Quarter 2026 Earnings Conference Call.

[Operator Instructions]

This call is being recorded on Wednesday, November 4, 2026.

I would now like to turn the conference over to Michael Critelli, VP, Commercial and Investor Relations. Please go ahead.

Mike Critelli

Thank you, and good morning. We're thrilled to have you with us for Flotek's Third Quarter 2026 Earnings Conference Call.

Today, I'm joined by Ryan Ezell, Chief Executive Officer, and Bond Clement, Chief Financial Officer. We'll begin with prepared remarks on our operations and financial performance, followed by Q&A.

Yesterday, we released our third-quarter results, updated full-year guidance, and an updated investor presentation, all available on our Investor Relations website. This call is being webcast with a replay shortly afterward.

Please note that today's comments may include forward-looking statements. These are subject to risks and uncertainties that could cause actual results to differ materially from our projections.

For a full discussion of risk factors, please review our earnings release and most recent SEC filings as well as Slide 2 of our investor presentation. Please also refer to the reconciliations in our earnings release and investor presentation for non-GAAP measures.

With that, I will turn the call over to our CEO, Ryan Ezell.

Ryan Ezell

Thank you, Mike, and good morning, everyone. We appreciate your interest in Flotek and your participation today as we review our third quarter 2026 operational and financial results.

In the third quarter, Flotek's growth storyline continued through the execution of our corporate strategy and the industry's adoption of our evolving portfolio of advanced technologies.

Driven by the powerful convergence of innovative, real-time data and chemistry solutions, as shown on Slide 3, Flotek has laid the foundation for a data-driven industrialized pivot built on diverse recurring revenue, higher-margin services, and proprietary technologies that create value for our customers and improve returns for our shareholders.

The strategic transition of the company into a Data-as-a-Service business model continues to gain momentum while expanding the total addressable market for the company.

As a result, Flotek's Data Analytics segment grew exponentially, while our differentiated Chemistry Technologies segment outpaced the market and extended its international footprint in a challenging environment through an unwavering commitment to safety, service quality, innovation, and total value creation.

With that, I'd like to touch on some key highlights for the third quarter shown on Slide 5 that Bond will discuss later in the call.

Company total revenue exceeded $114 million, more than doubling from the third quarter of 2025 and the highest quarterly revenue performance since 2014.

Data analytics revenue grew 104% from the third quarter of 2025. It's important to note that almost 80% of data analytics revenue is derived from Data-as-a-Service offerings, marking a milestone in the company's transformation.

Additionally, the percentage of external customer revenue within data analytics grew 61%, up from 31% in the prior-year quarter.

Chemistry Technologies revenue increased 104% versus the prior-year quarter, with international chemistry revenue reaching $28.4 million, representing 25% of total company revenue in the quarter.

Company gross profit climbed 54% versus the third quarter of 2025, and total company adjusted EBITDA grew 87% year-over-year, totaling $19.5 million.

The company updated its 2026 guidance, with the new midpoint being 63% and 83% increases versus 2025 actuals on revenue and adjusted EBITDA, respectively.

This represents the third increase to 2026 guidance and builds upon a multi-year trend of growth as the company executes on its strategy to provide long-term resiliency and profitability, as shown on Slide 6.

And finally, in September, the company secured a $120 million senior secured term loan to fund the 2027 data analytics CapEx and strategic growth initiatives.

Most importantly, these results were achieved with 0 lost-time incidents in the field of operations. I want to thank all of our employees for their hard work and commitment to safety and service quality in achieving these outstanding results.

Now turning to the larger picture for the energy and infrastructure sector.

We continue to believe that the ongoing geopolitical unrest and the situation in the Middle East will have impactful and potentially long-term implications on global supply and energy security.

The industry continues to exhibit a shift in supply-side dynamics that's recalibrating the risk profile of regional supply while fundamentally establishing a higher baseline for energy security, driven by the almost 3 billion-barrel production disruption and 1 billion-barrel drawdown of global strategic reserves.

We expect increased investment in localized oil and gas developments, while geographies that do not possess resources look to rapidly diversify energy security exposure.

All of these factors point towards a stronger commodity pricing environment for increased upstream activities for an extended duration.

Layering in and expanding power demand driven by AI, data centers, and industrial reshoring, combined with the reliability issues of an aging transmission infrastructure, the expectations for tailwinds within the energy sector further strengthened.

Our legacy pressure pumping customers continue to capitalize on the portfolio diversification opportunity provided by the demand for remote power generation.

Flotek is poised to support emerging customers with products and services that help protect their assets while optimizing their operational performance and fuel efficiency.

With a multi-year waiting list for turbines and reciprocating engines, protecting these capital-intensive investments is critical, along with enabling electrical reliability services that improve operational uptime and overall efficiency.

Transitioning from the micro view, let's dive into the details, starting with Slide 8.

I want to spotlight the transformational growth in our Data Analytics segment, which saw total segment revenues up 104% year-over-year and third-quarter 2026 service revenues exceeding total segment revenues from the year-ago quarter.

More importantly, external customer revenue increased to $11 million in the third quarter of 2026 versus only $2.8 million in the third quarter of 2025. This is an almost 300% increase as the customer base continues to diversify.

This strong growth is powered by our flagship upstream technologies, power services, and digital valuation, both of which are generating significant contracted wins and a robust recurring revenue backlog.

Highlighting these wins are shown on Slide 10.

By the first quarter of 2027, Flotek expects to add an additional 1 gigawatt of power support through the measurement or control by our proprietary PowerTech platform, extending our services to support almost 6 gigawatts of behind-the-meter power.

This further validates the demand and scalability of our innovative technologies in the rapidly growing behind-the-meter power space.

The successful utilization of our state-of-the-art smart skids to optimize gas quality with real-time blending and field gas continues to expand as new skids are brought online in the next several months.

In October, Flotek announced that the VeraCAL had received EPA approval as an alternative to gas chromatography for measuring flare, vent gas, and heating value in petroleum refineries at the MAXCC certifications.

The milestone marked VeraCAL's second EPA alternative method approval while extending the company's addressable market for flare operations. We estimate the refinery total addressable market relative to flare monitoring to be in excess of $40 million.

Power Services continues to lead this growth, further reinforcing our shift toward high-margin recurring revenue streams. Flotek's Power Tech platform has evolved from a novel analytical approach into a transformative solution for the energy and infrastructure sector.

What we began as advanced analytics has grown into a comprehensive end-to-end fuel management platform, redefining performance standards and operations within the sector.

Our expanding portfolio of patents and field-proven use cases positions Flotek as a leader across the entire natural gas value chain.

When considering the velocity of measurement, we deliver unmatched real-time fuel monitoring, conditioning, blending, and engine control to optimize performance and safety for behind-the-meter distributed power operations, as shown on Slide 11.

In addition, we are now realizing the impact of real-time measurements on the Electrical Reliability Services, or ERS, value chain and expect to expand our technologies into additional ancillary service opportunities in the sector, such as emissions and noise reduction.

Now let's transition to Slide 13, where we'll dive into our second upstream application, digital valuation.

This groundbreaking use case sets a new standard in the oil and gas industry, delivering unprecedented transparency and minimizing enterprise risk from producing wells like never before through real-time digital valuation.

We believe the XE's speed, accuracy, durability, and qualification under the rigorous measurement standards outlined in GPA2172 will provide a significant advantage in discussions with prospective customers as we aggressively expand its manufacturing and field deployment.

In the third quarter of 2026, we extended the total number of digital valuation measurement devices deployed to over 135 as its evolution into enterprise-level value creation gains momentum and a diversified customer base.

It is clear that the execution of our transformational strategy to grow the data analytics segment and the upstream applications continues to gain momentum.

But what is most important is what it means for stakeholders and investors. That's first, our data-driven strategy ensures predictable recurring revenue and cash flow, delivering stability and long-term value.

Second, our proprietary data technologies and superior measurement accuracy enable velocity and decision control that establish a high barrier to entry, secure client loyalty, and support our value-based service model.

And third, long-term high-margin subscriptions position Flotek for sustained growth and margin expansion, driving significant shareholder value over time.

Now lastly, our Chemistry Technologies segment continues to deliver robust performance, driven by the differentiation of our prescriptive chemistry management services, expanding international presence, and leveraging our real-time production surveillance services to enhance asset returns.

Slide 15 highlights the resilient performance of our chemistry segment, which delivered a 104% increase in total revenue for the third quarter of 2026 compared to the third quarter of 2025 and was the strongest quarter of chemistry sales since 2014.

International revenue totaled $28.4 million in the third quarter of 2026 versus only $2.2 million in the third quarter of 2025, up almost 12x from the year-ago quarter and 168% sequentially.

Looking to 2027, we anticipate the strength of our international business to maintain pace in Saudi Arabia with potential upside in Latin America and the UAE.

The combination of our PCM service, production surveillance, and PowerTech offers a unique and innovative entry point for growth that mimics our strategy in North America while providing substantial value creation for our customer base.

It's evident that our chemistry team has executed our strategy flawlessly. As we move through the remainder of 2026, opportunities leveraging the convergence of prescriptive chemistry management and data services move to the forefront through high-margin services that improve operator ROI.

These advanced data-driven services include smart chem ad units, real-time flowback monitoring, and the implementation of prescriptive geological targeting.

Looking ahead, I am more confident than ever in Flotek's momentum and our ability to drive sustained profitable growth as we execute our transformative corporate strategy.

In yesterday's release, we announced a 2027 capital plan to support the continued development of our Data Analytics segment.

We expect to invest $15 million to $20 million to expand our fleet of gas conditioning and distribution equipment, grow our inventory of measurement instruments, and enhance our manufacturing capacity to support further segment scaling.

We anticipate the majority of next year's capital spend to be allocated to our next-generation distribution skids as pictured on Slide 10. These assets combine the functionality of our measurement, conditioning, and distribution into one platform.

They should provide a competitive advantage as we continue to expand beyond oil and gas.

We are firmly positioning Flotek as a high-growth technology leader in the energy and infrastructure sectors, accelerating innovation through the powerful integration of real-time data analytics and advanced chemistry solutions tailored precisely to our customers' evolving needs.

Now I'll turn the call over to Bond to provide key financial highlights.

J. Clement

Thanks, Ryan. Good morning, everyone. It's great to be able to report another exceptional quarter as compared to both the prior year and sequentially.

As Ryan mentioned, third-quarter revenue more than doubled from a year ago as we grew both chemistry and data analytics top line by 104%.

Adjusted EBITDA followed suit, with third-quarter results exceeding the year-ago quarter by 87%.

In conjunction with continued strong results, we provided updated guidance on total revenues and adjusted EBITDA in yesterday's release.

As shown on Slide 6, we are now expecting total revenue in the range of $382 million to $390 million, with adjusted EBITDA in the range of $59 million to $62 million.

As Ryan pointed out, the midpoint of these metrics implies very strong growth rates as compared to full-year 2025 revenue and adjusted EBITDA.

As a reminder, our adjusted EBITDA guidance does not add back noncash amortization of contract assets, which is expected to total approximately $9.3 million during 2026.

Our updated guidance includes fourth quarter international chemistry revenue forecasted at similar levels to third quarter.

Consistent with comments made on our second quarter earnings call with respect to guidance, we are again assuming no fourth quarter revenue related to our power services contract in Montana in our guidance.

We continue to evaluate options for additional work beyond the initial term, which expired in September.

Moving from guidance to quarterly results. We posted strong growth in revenue throughout 2026 as year-to-date revenues recorded through September have surpassed the full-year 2025 revenue by nearly $50 million.

Quarter-over-quarter growth was driven by international and related-party chemistry sales, as chemistry accounted for about 84% of the total revenue growth as compared to the third quarter of last year.

Our external chemistry sales totaled approximately $46 million and consisted of $17.5 million of domestic revenue and $28.4 million of international sales.

Domestic external chemistry sales approximated the prior year quarter, while international sales were up over $26 million from third quarter last year, driven by our ongoing work in the Middle East.

International chemistry revenue accounted for roughly 25% of total revenue in this quarter as compared to just 4% in the year-ago quarter.

To provide some context on the rapid growth in international revenue this year, international chemistry revenue totaled $1.9 million during the first quarter, $10.6 million during the second quarter, and now $28.4 million this quarter.

Year-to-date, international chemistry revenues totaled $40.8 million as compared to just $10 million during the year-ago period.

As noted in our comments on guidance, we expect fourth quarter 2026 international chemistry revenues to be fairly consistent with third quarter, which would bring the annual total for international chemistry to approximately $70 million.

Related party chemistry revenues also had an impressive quarter as it increased 87% from the year-ago quarter, topping the $50 million quarterly mark for the first time in the history of our long-term chemistry supply agreement that we put in place in 2022.

Data analytics revenue posted another strong quarter with revenue of $18.1 million.

Year-to-date, our data analytics revenue was up 173% from the prior year-to-date period as we continue to see strong gains in our upstream applications, including power services and digital valuation that Ryan highlighted earlier.

Data analytics provided a solid contribution to gross profit during the quarter, comprising only 16% of total quarterly revenue; the segment contributed 45% of company gross profit.

For the quarter, the segment generated gross margins of 68%.

Third quarter 2026 gross profit as a percentage of revenue totaled 24%, which was down from 32% in the year-ago quarter.

It's important to note that third quarter 2025 results included an order shortfall payment of $8.7 million. With the record related-party chemistry revenue posted this quarter, the order shortfall penalty fell to less than $1 million.

Because the order shortfall penalty carries no associated cost, it had a significant impact on margins in the year-ago quarter.

Excluding this shortfall penalty, the current quarter gross margin was approximately 400 basis points higher than last year, attributable to the 104% increase in data analytics revenue and higher-margin chemistry sales.

G&A expenses increased 15% year-over-year, but excluding noncash stock comp, G&A increased 10% versus the year-ago quarter.

As revenues continue to scale, we've seen meaningful leverage in our G&A expenses. Total G&A expense declined to 7% of revenue in the third quarter of this year compared to 13% in the year-ago quarter.

This marks the lowest quarterly G&A as a percentage of revenue that we have achieved in at least the last decade.

Net income for the quarter was $13.3 million or $0.34 on a diluted share basis compared to $20.3 million or $0.53 per diluted share in the prior year quarter.

As a reminder, net income last year included a $12 million tax benefit associated with the partial release of valuation allowance on deferred tax assets.

Excluding that tax benefit in the third quarter of last year and assuming an effective tax rate consistent with the current quarter, earnings per share for the year-ago quarter would have approximated approximately $0.17 per share versus the $0.34 per share where we came in for the third quarter of this year.

During September, we closed a new term loan with initial funding of $75 million. After repaying our previous term loan at closing, remaining net proceeds are expected to be used to fund our 2027 data analytics capital plan announced yesterday.

The capital investment plan is targeted to support the expansion of the Data Analytics segment with investments focused on the priorities Ryan outlined earlier and also summarized in the release.

Just to close up, we have posted consistently strong results throughout 2026. Our recent term loan strengthens our liquidity and provides capital for our DA expansion plans.

As shown on Slide 17, we have maintained our focus on keeping relative leverage low. Using the midpoint of our updated 2026 EBITDA guidance and net debt as of September 30, our leverage ratio is less than 1x.

We believe this positions us to continue executing our growth initiatives while maintaining financial flexibility.

With that, I'll turn it over to Ryan for closing remarks.

Ryan Ezell

Thanks, Bond. Flotek's third-quarter results extend our multi-year track record of consistent improvement through the execution of our corporate strategy and the transformation of Flotek into a data-driven technology leader.

Both Data Analytics and Chemistry Technologies segments delivered robust growth, highlighted by triple-digit increases in revenue and rapidly expanding upstream application portfolios.

Together, our synergistic segments position Flotek to gain additional market share and drive further top- and bottom-line improvement with substantial upside opportunities in our data-driven services.

We expect the investments made through our 2027 capital plan will drive longer-term high-margin growth and should accelerate Flotek's transition to a data- and technology-driven enterprise.

We remain committed to shaping the industry's digital and sustainable future by leveraging chemistry as our common value creation platform.

With our proven execution, expanding high-margin capabilities, and clear pathway to scale growth, Flotek is poised for the next phase of value creation for our investors.

Operator, we're ready to open the floor for questions.

Operator

[Operator Instructions]

Your first question comes from Jeff Grampp from Northland Capital Markets.

Phần hỏi đáp

Jeffrey Grampp

Ryan, I wanted to start on Slide 10 and some of the KPIs you gave on these PowerTech skids.

Can you give us a sense of the end markets these 41 skids are being used in today? I assume a lot of those are with ProFrac, but what are the others doing? And what structure or contracts are those generating revenue under today?

Ryan Ezell

Yes. That's a great question. So when we look at the total 41 skids, we've got roughly 25 to 28 in service with ProFrac right now.

The other 13 to 15 are done on a series of other ancillary services. We've got some that were in utilities. We've got some that are in the power space, and we've got some that have transitioned to preliminary work on data centers.

So we are definitely starting to see the tentacles move out and expand just from what we're doing traditionally from the oilfield power space where we initialized this footprint, and it's moving into the diversified base.

Jeffrey Grampp

For my follow-up, on the '27 CapEx plan that you guys provided, could you walk us through like the process of establishing that quantum?

What kind of fleet is that going to build? And is that size informed by customer demand, by manufacturing capacity?

Just trying to understand how you guys ultimately decided on the quantum of that program.

Ryan Ezell

So let me walk through. So where we talk about the 41 SKUs that we ended the quarter at, we've now taken acceptance on a multitude of other fleets.

So we had an initial target of wanting to more than double the PowerTech fleet in 2026. We're going to far exceed that goal.

And so our plans into 2025 is to build a fleet that would match our potential wins that we have built in our CRM system with probably about a 25% excess because we're seeing a lot of work come to us like, hey, do you have it right now?

And so we'll be bringing it forward. I would say, out of the current plan right now, 75% of it has already got a home that we've got for the '25 plan. And then we'll have about 25% of it that we're looking for homes sometime throughout the year, if that makes sense.

Now, notice not all $15 million to $20 million of that is in Q1. They're staggered throughout the year as we've got a few potential opportunities with the data centers that are coming online, some of the utility contracts, and different pieces there.

So, plus some of the conversion of our current monitoring services into full-time conditioning and/or distribution.

So it's a pretty exciting piece for us when you look at the intensity and the design of some of the equipment, particularly the real-time blending SKUs that are doing some monumental things in the field right now.

Operator

Your next question comes from Rob Brown from Lake Street Capital Markets.

Robert Brown

Just want to touch base a little bit on the digital valuation growth there strong growth, 235 units. How do you see that market developing into '27?

And what are the customer interest opportunities that are developing there?

Ryan Ezell

Rob, the time you spent talking to me, this is probably one of our most exciting when you look at long-term development and long-term segments of the organization.

What started out with us just trying to understand the value of gas when we first acquired this technology and what it's evolved to now has been quite amazing.

And so, the movement of the instruments, number one, has been highly on recurring revenue data services on a rental basis.

Some of the growth has been moving directly to the wellhead of what we call production surveillance. So we are actually monitoring the initial flow out of the well.

We're looking at chemistry that comes out, the initial production wedge, oil-gas ratio changes, total valuation of the inventory, et cetera.

So it's a monumental breakthrough in some of the trials that we're seeing there. We're seeing phenomenal uptake in what I'd say, gathering locations. We're actually looking at true custody transfer components in digital valuation.

And the other one is looking at modified RVP measurements on volume expansion, volume blending. So it's a very diverse and spread-out growth component there.

And if you look at the opportunities that we've got, this sheer number on the size of what it is, I mean, this could be a really profitable long-term investment for Flotek, and the enterprise value that is creating for the E&P operators and the midstream companies is unbelievable.

So we're really excited about what's going on in digital valuation.

And if you remember, at the start of the year, we wanted to have 150 instruments roll out in 2026. And we surpassed the 135 mark in Q3, and they're getting bigger every quarter. And we expect Q4 to be our biggest delivery of units, so we'll far exceed that 150-unit target for '26.

J. Clement

Rob, just to give you a sense of the scale of the growth in that particular application.

Digital valuation made up only about 3% of second-quarter DA revenue. For the third quarter, it jumped up to 9%. So it's really gaining a lot of traction pretty quickly.

Robert Brown

Excellent progress there. And then on the OEM segment, how is that developing? And what do you see there in the next 12 to 18 months?

Ryan Ezell

So it's to me that we're making consistent, steady progress in line with our prior guidance on that.

I think right now, one of the primary customers that we had is in the final stages of what I call field acceptance testing and software integration.

We've also added another 3 customers that are looking at it for talking directly to their engines.

So not only would you see our potential gas conditioning equipment or our PowerTech skids, but also mounting of our EFG units directly on engines to further optimize fuel efficiency and/or prevent derating issues.

So a lot of good movement there. We still keep close to the chest on exactly who and what that is, but those things are running spot on track of where we want. And we've also been able to bring a couple of new customers on in that round.

Operator

Your next question comes from Gerard Sweeney from ROTH Capital.

Gerard Sweeney

I wanted to maybe open up the aperture a little bit, take a little bit of a step back.

Obviously, on data analytics, but obviously, you have a lot of shots on goal next year in power services, digital valuation, below that, refining opportunities, the OEM engine opportunities.

How do we look at those opportunities as we go into '27? How big of an opportunity are they, maybe holistically and then into '27?

And how much could they potentially move the needle?

Ryan Ezell

It's a great question. I'm going to tiptoe around the line because we haven't issued our 2027 guidance yet. But when you look at it holistically, let's talk about it as a group.

When we started the digital transformation of the business, we only had about a $2.5 billion total addressable market, and that would have been back at the end of 2020; we started 2021.

Where we sit today, our total addressable market between our advanced chemical technologies and our data analytics business is approaching $20 billion.

And we're continuing to unlock additional value-add components around electrical reliability services on the data center and industrialized power platforms. And so we've got a significant runway.

I think there's as you can imagine, there's significant higher percentage growth in the data services, particularly in the upstream and the power side of the business than we would typically see in chemistry because chemistry is a much more mature business.

But when I look at '27, I do believe that our Power Services division, digital valuation, and some of the ERS platforms will do the bulk of the heavy lifting in growth.

And then, when you combine chemistry in there, chemistry has really strong sustained size in international business. And then I look for North American land to be flat to down in activity.

So without getting specific numbers, because we haven't issued guidance, I hope that gives a little bit of color on the opportunity size and where we think the bigger portion of the growth will come from, as a percentage basis will be on the data side.

Gerard Sweeney

Does this pick up in CapEx spending well? I was going to ask about this, and hopefully, it doesn't come across the wrong way.

But your new debt facility is up in CapEx. Was CapEx a limiting factor for data analytics growth in the short term? And does this really start to accelerate into next year?

Ryan Ezell

I don't know that CapEx was a limiting term for us in the near term because a lot of these technologies are so new, you got to realize they're not even 2 years old yet.

And it was more of an acceptance rate issue. What we were trying to do is, as you can imagine, in a start-up business or a new-scale business, when do you actually pour fuel on the fire to get the growth?

What we're getting comfortable with is being able to address the wins we're getting and that we're going a little bit in excess, to where we've got some call-off capital.

When you consider the fact that we're going to spend close to $15 million in CapEx in 2026, and then will be another $15 million to $20 million next year. I think in the prior years leading up to that, we might have spent a couple of million in total in my first 5 years here.

So a significant investment for us, but I don't think it's been a limiting piece right now. We have seen some things we are preinvesting in our manufacturing capacity so that we don't have those bottlenecks. That's been a big step that we're looking at for '27.

And we've got basically a stepwise plan in that, depending on what we do to address Powertech skids and equipment there versus if we have OEM build opportunities for analyzers. So they are 2 different manufacturing platforms.

Gerard Sweeney

You mentioned the term acceptance and market acceptance, but the OEM taking a step back, I think it was Rob's question was the OEM partnership or opportunity, however you want to phrase it.

But what does final field acceptance mean? I mean, is that the last hurdle? If it passes that, do you get into the nitty-gritty in terms of talking economics? Or just curious as to what final field acceptance is in that process.

Ryan Ezell

So our initial potential partner that we're working with there, it went through an evolution where they started with our initial, like, Varex box that moved to an Xpect, and now we have the XpectFG.

As you can imagine, a multimillion-dollar piece of equipment; they want a field acceptance test, they need so many thousand hours with that thing delivering consistent information within a specific accuracy ratio.

More importantly, was understanding the software components to make sure the logic transfer is effectively. And so the measurement device has been very successful at the accuracy and velocity of measurement.

Right now, they are just fine-tuning what I'd call the software components to it that would do it. Now, the great part about that is that other OEM-type customers that come on board are going to be like the fast-follower component.

We don't have all those growing pains that we did during the first unit. They'll move straight into the FG model and the updated model capital in terms of the piece of equipment, plus they'll move into updated FG software modeling and chemometric studies that have been done.

So they'll come on orders of magnitude faster, if that makes sense.

Operator

Your next question comes from Don Crist from Johnson Rice.

Donald Crist

Ryan, I wanted to ask about the new EPA approval and refineries more generally. I know you've been talking to the refiners for quite a while about switching loads over, making sure that diesel is in the diesel tank, et cetera.

But with this new EPA approval, does that unleash further acceptance and allow for a lot more sensors to actually be deployed now versus before? Just comments around where you stand with the refineries today.

Ryan Ezell

So our initial flare business that we had, Don, was around QAO B, QAO C for flaring, you see, in the field of operations on the oil and gas wells.

Then we've got to the point on the refinery side, and let's say, LNG trains, et cetera; traditionally, our high-velocity instruments have been used to basically serve as an insurance policy on the velocity at which a lot of the GCs were taking measurements, et cetera.

And so now we have the original QuAOB emissions things. We've got the MAT CC certification, and we've got the GPA2172. We have every single certification in a full refinery to replace every GC on location now.

And so not only does that allow us to do the flares that you constantly burn on a petrochemical facility. And because we talk about there being probably 130, 150 facilities that we know of on the market right now.

They don't have just one flare site. They have multiple locations. And then, some of these facilities are running 75 to 100 gas chromatography units at one time.

So we look at this number of plants, but you can imagine it's 100x that in terms of measurement points and devices. So it's a pretty good unlocking piece because, now, to your point, they don't have to buy 2 pieces of equipment. They can buy one to do all of it.

And so I do believe this is going to unlock a significant amount of value for us.

What's pretty interesting is now you're starting to see from the wellhead all the way there, we are now making measurements with data type measure, whether it be a Verax and Ex and Expect FG, Veral, or whatever it is, all up and down the value chain, whether liquid or gas.

And so these are some big steps that we're taking. When you look at that, I think one of our initial slides in the deck shows that whole ecosystem.

We are actively generating revenue at almost every measurement point now compared to where we just started in the midstream when we acquired JP3 back in 2020.

Donald Crist

I appreciate that color, and it's going to be very exciting. On the chemical side, can you talk about South America, specifically Argentina? I know things are really blowing up and going down there.

Do you have any traction down there? And are some of your customers from the U.S. pulling you down there? Any comments around Argentina?

Ryan Ezell

It's a comment from both. We've been selling chemicals down there for quite a bit. Some of the individuals to whom we've been selling chemicals are inquiring about our data services.

We've had questions in Venezuela. We've got questions in Argentina. We've got questions in Colombia. And so we are moving down there. We haven't penetrated at that rate.

Obviously, you go to the numbers of what we have in the Middle East, but that is an ongoing piece. We have a manufacturing partner that we're working with down there that actually is already building equipment for us internationally and domestically.

So we've been taking preliminary steps about how that works.

We're traditionally trying to keep services together between chemicals, data, et cetera, like what we've seen: how we started that business in North America, how we were able to penetrate the Middle East, and we'll look to do the same thing in Latin America.

Operator

Your next question comes from Josh Jayne from Daniel Energy Partners.

Joshua Jayne

The first one is following up on Don's a little bit, just on the international chemistry side, which has continued to be pretty strong.

How much of your growth over the course of this year is market share versus, in your opinion, just chemistry being adopted in more wells? And if it's the latter, how much more runway is there internationally relative to the U.S., for example, for that business?

Ryan Ezell

So if you allow me, Josh, I'm going to bifurcate those. Let's talk on the international piece.

The international piece has been 100% mostly share gain because we came in with accepted technology by Aramco's technology group, and then we moved into being one of the top fluids providers in the Jafera unconventionals.

So that's been a big spearhead there. You look at some of our other, what I call conventional stimulation assets: stimulation, completion of stuff in the UAE, and those other ones that are share maintenance and share growth.

You look at some of the chemicals that we're selling into Latin America now. It's not the same size volume as what's going to the KSA, but still that share gain. Now, and I think there's quite a bit of room there. There are a few long-term opportunities that we're bidding in the UAE right now.

There's additional work in stage volume in Saudi that we're looking at targeting and working on, and then obviously, significant growth potential in Latin America.

Now we look more at the domestic business. I think it's interesting how we look at it. A lot of times, we try to bifurcate between what we call external revenue and related party.

In reality, those are often in the same location. So sometimes I feel partner is in the total growth of the business, which has been substantial year-over-year. So you've got to say we're taking the total number of wells. We're looking at market share.

But I do believe, in all honesty, that we've been preaching, since you've been talking with me, about the importance of choosing the right set of chemistry, like what our PCM service does, to minimize formation damage and optimize the output of the asset.

We're combining that with our production surveillance technologies along with our data analytics. And I believe that being perceived as that is a differentiator now.

Traditionally, when we go head-to-head in our PCM service versus other types of service out there, we come in a really good spot. There's no doubt that when you bid this on a commodity-for-commodity basis, we may or may not be that choice.

But if you want the best return out of that asset, we definitely move to the tip of the spear for that. So, it's hard to rate how the growth will be in North America until we understand a little bit better how we finish Q4 and what we think the activity will be.

Considering what happened yesterday with the government changes and everything that will take place, you could see ramp-ups; you could see a headwind. So we'll give a little more color on that.

But I definitely think it's a tale of 2 cities. International is taking share. North America is a battle for a little bit of share, but more about technology adoption, if that makes sense.

Joshua Jayne

And then as my follow-up, could you just speak to, I guess, over the course of what we've seen in '26, a lot of the people who have increased activity since the start of the year have been on the private side.

Could you just give any color, I know you're not going to quantify thoughts on next year yet, but just has your customer base in the Lower 48 evolved over the course of this year?

Or are you seeing different penetration with the larger integrated relative to the private? Maybe you could just unpack that a little bit more, and then I'll turn it back.

Ryan Ezell

I think that the predominant thing, I'd say, Josh, is not only apparent to me, but has been a breath of fresh air; there seems to be significantly more capital discipline being shown by not only the E&P guys, but also the service companies.

And to me, this is making a little bit better, longer-term, healthier market in terms of how we holistically look at the drilling, completion, and turning wells on in North America.

I do believe that you've had a lot of companies that have been on the forefront; whether you look at Ovintiv or Chevron or some of these that have been out there, they've invested a lot of money in trying to understand whether you call it cubic analysis, spacing, well design, what's the appropriate chemistry for your target zone, the impact of water-damaging wells, infill wells versus the parent-child interactions.

All these things are discussions that are significantly further along than what I was seeing back in 2020, even 2019. So to me, all of these are advancements in the field.

But I can tell you, what it all relates to is we're getting more out of less in terms of there's less fleets active because they're more efficient. We're getting better production at lower cost.

We're doing all these types of things. So I think what will challenge that paradigm is who can maintain the quality of acreage.

And as with Flotek being able to bring advanced technologies on understanding the quality of that production and making real-time logic decisions on improving the chemistry throughout, I think that we will help bridge that gap and produce Tier 1 economics out of Tier 2 acres, which I think will be an extreme value proposition for us in the future.

But again, I think in my initial look right now, pre-election last night, I was thinking you see that at to hold pace in '27. We'll see how that plays out over the next couple of weeks as we get ready to release guidance here in Q1.

Operator

Your next question comes from Tom Bishop from BI Research.

Tom Bishop

I apologize if you covered this, but I was interested in the utility side. And if you could explain what happened with the Puerto Rico contract, and assuming they still need the power, might you resurface to solve that problem in the not-too-distant future?

Ryan Ezell

It's interesting for us because with that contract, there were 2 primary bids and awards that took place inside of Puerto Rico.

One was for the Costa serve facility, and one was the facility bid through a public tendering process. Both of those were awarded back at the end of '25 and got reevaluated in the first part of '26.

When they were looking at starting initial mobilization of those, we were asked to come in on the backside of those awards to help with a technical aspect of it because they didn't have the infrastructure to move enough CNG through ISOs.

And so they were going to try to combine CNG with LNG and some biogas inputs. And so our blending technology did a phenomenal job for that. However, after they kicked off, one of the initial consortiums didn't put up a performance bond.

And so the contract unwound, and the conditioning pieces that we were tied to were related to that. And so our contract that we had directly with PREPA was no longer active because the consortium wasn't moving forward.

And so for us, they are still in dire need of power. They are working with a power deficit in the country. There are 200,000 people a day without electricity. They reach out to us on a regular basis, asking us.

However, there has to be some type of contractual construct. We can't just ship the assets down there and take that kind of risk on, especially considering the potential turmoil and what they've seen with their nationally run electricity groups, et cetera.

But for us, our big push initially was around almost like a humanitarian deal to come in and help with that. And we would still be potentially open to doing it, but it has to be a contractual construction pricing that makes sense going forward.

Operator

[Operator Instructions]

Your next question comes from Jeff Grampp from Northland Capital Markets.

Jeffrey Grampp

Ryan, on this new NGD skid that has all the bells and whistles, is that for a particular customer type or end market? And are there plans in place for those to be immediately deployed?

It sounds like from our earlier conversation that these are spoken for, but I just want to better understand if these are for a specific use case, customer end market, et cetera.

Ryan Ezell

So we should be taking delivery of 4 of them by the end of the year. 3 of the 4 are already contracted and will go out upon completion of FAT testing.

And they are specifically designed to address a few issues, particularly around working specifically with turbines.

They're built for applications in data centers, and they are a one-stop-shop piece of equipment. And so they are answering some specific requirements to control pressure step-down, reheating, and control, et cetera, of the natural gas operations.

But of the initial 4 that we'll get, 3 of them are already called for, and we're building an additional 5 in 2027. So we could build more. But right now, we've got a pretty good line of sight on where all those are going.

Jeffrey Grampp

And if I can get one more in to be greedy on digital valuation. It seems like the use cases are evolving and expanding here from the original custody transfer application.

Do you have a sense of like the incremental growth we've seen this year, maybe looking ahead, how does that pie chart look like in terms of where you're seeing the most accelerated adoption there?

And also curious if pricing differs between applications or if it's pretty similar across use cases.

Ryan Ezell

Well, as you can imagine, in areas where some other type of technology has been doing, let's say, pure custody transfer.

The pricing there is a little bit more of a ceiling on it because you still have manual sampling and laboratory testing with GCs that can step in, right?

So it has more of a fixed base. These other components we look at, we talk about production surveillance, the other allocation and production measurement pieces.

They're unlocking such a significant amount of value depending on the volume and rates and stuff that we are seeing; I would say, significantly better overall pricing.

And because there's such a strong return on investment there, there's very little pushback on rental models versus selling a capital sale instrument like what you would inside of a refinery or a flare monitoring segment.

And so there's no doubt that, again, as our premise has been, the further you move upstream, usually the better the pricing is and the higher degree of, what I'd say, ROI to the customer is, if that makes sense.

Operator

And there are no further questions at this time. I will turn the call back over to Michael Critelli for closing remarks.

Mike Critelli

Thank you all for joining today. Joining us at some of our upcoming investor events tomorrow will be at the Invest Houston Leadership Summit in Houston, where Ryan will be speaking on November 10 and 11 at the Daniel Energy Partners Annual Permian Barbecue, where we hope to win a couple of awards for some of our barbecue dishes.

On November 17 and 19, we'll be at the ROTH Technology Conference in New York City. And on December 3, we'll be at the Daniel Energy Partners NASDAQ market site in New York City.

And lastly, on December 9 and 12 at ROTH Deer Valley in Park City, Utah. For any other events and the latest info, go to our website, and I'll turn it over to Ryan.

Ryan Ezell

Thank you all of you again for joining us today, and we look forward to updating you on our progress and how Flotek is bringing technology to the forefront and the tip of the spear going forward. Thank you, guys.

Operator

Ladies and gentlemen, this concludes today's conference call. You may now disconnect. Thank you.