Flotek Industries, Inc.

Second-quarter revenue approached $100 million, up 70% from Q2 2025 and $41 million higher year over year. Company gross profit increased 65% year over year, with gross margin at 24% of revenue, down less than 100 basis points from the prior-year quarter. Adjusted EBITDA was $16.8 million, up 109% year over year. Net income was $10 million, or $0.26 per share, versus $1.8 million, or $0.00 per share a year ago. For 2026, Flotek raised guidance to $340 million-$350 million of revenue and $47 million-$51 million of adjusted EBITDA; management noted this excludes about $9 million of non-cash amortization of contract assets. Management said the ABL balance was reduced to 0 as of the morning of the call, and leverage at the midpoint of guidance is less than 1x net debt.

Ryan Gillis Ezell framed the quarter as evidence that Flotek’s transformation into a Data-as-a-Service company is gaining momentum, with higher-margin recurring revenue and proprietary technologies expanding the addressable market. He emphasized record data analytics growth, resilient chemistry performance, and the strategic importance of the new PREPA award and broader power-services pipeline. His tone was highly optimistic and confident, repeatedly describing the company as entering a new phase of scaled growth.

J. Bond Clement said the quarter exceeded expectations by a wide margin, with June chemistry revenue nearly $31 million and external customer chemistry revenue of $15.2 million in June alone. He highlighted operating leverage, noting G&A fell to less than 8% of revenue versus nearly 12% a year ago, and said adjusted EBITDA guidance excludes about $9 million of non-cash amortization of contract assets. He also pointed out that the company’s ABL borrowings were reduced to 0 as of the morning of the call and that leverage is below 1x at the guidance midpoint. On guidance, he said the back half assumes a more normalized domestic chemistry pace, no fourth-quarter revenue from the Montana extension yet, and no 2026 financial impact from Puerto Rico yet.

Analysts focused on the power infrastructure pipeline, the timing and economics of the Puerto Rico contract, and how the 5-gigawatt measurement/control figure translates into revenue. Management said the power-services pipeline in utilities, infrastructure, and data centers is the largest in company history, with well over $1 billion of pipeline potential, but declined to quantify revenue from the 5-gigawatt figure or the PREPA project’s margin profile. They said Puerto Rico deployment starts in Q4 2026, with more meaningful revenue likely in Q1 2027, and that the initial model is rental-based, which carries lower margins than owned equipment. Analysts also asked about scaling and M&A; management said it is investing more CapEx, adding sales/pursuit staff, and sees opportunities to acquire or upgrade mechanical conditioning operators.