Flotek Q3 Revenue More Than Doubles to Over $114 Million

Flotek Industries' third-quarter revenue more than doubled year over year to exceed $114 million, and adjusted EBITDA climbed 87% to $19.5 million, the company told investors on its November 4 earnings call. Chief Executive Officer Ryan Ezell called the quarter the strongest for revenue since 2014, and the company raised its full-year outlook for the third time in 2026.

The new guidance calls for 2026 revenue of $382 million to $390 million and adjusted EBITDA of $59 million to $62 million. At the midpoint, Ezell said, those forecasts represent increases of 63% and 83%, respectively, from 2025 results. Both the Chemistry Technologies and Data Analytics segments grew revenue 104%.

Where Is the Growth Coming From?

International chemistry revenue jumped to $28.4 million from $2.2 million a year earlier and now represents roughly one-quarter of total company revenue. Chief Financial Officer Clement attributed the increase to ongoing work in the Middle East, while domestic external chemistry revenue held nearly level at $17.5 million.

For practitioners tracking the trajectory: the company expects fourth-quarter international chemistry revenue to hold near Q3 levels, which would bring the full-year total to approximately $70 million. Ezell said the Saudi Arabian business should maintain its pace in 2027, with potential upside in Latin America and the United Arab Emirates. He attributed the international growth primarily to market-share gains, including work in Saudi Arabia's Jafurah unconventional development, and noted inquiries about data services in Latin America.

Related-party chemistry revenue rose 87% and exceeded $50 million in a quarter for the first time under the long-term supply agreement Flotek established in 2022.

What Does Data Analytics Deliver to the Bottom Line?

Data Analytics revenue reached $18.1 million, with external customer revenue rising to $11 million from $2.8 million. Nearly 80% of segment revenue came from data-as-a-service offerings (subscription-based delivery of ongoing data rather than one-off sales).

The segment punches far above its revenue weight. Data Analytics represented 16% of company revenue but contributed 45% of gross profit and generated a 68% gross margin, Clement said.

Several operational markers support the growth story:

• Flotek expects to add another gigawatt of power support through its PWRtek platform by Q1 2027, bringing the total to nearly 6 gigawatts of behind-the-meter power (generation sited on the customer's side of the utility meter).
• Of 41 PWRtek skids at quarter-end, roughly 25 to 28 were in service with ProFrac, with others in utilities, power and preliminary data-center work.
• The company deployed more than 135 Digital Valuation measurement devices by quarter-end and expects Q4 deliveries to be its largest of the year, exceeding the 2026 target of 150 instruments.
• Digital Valuation accounted for 9% of Data Analytics revenue in Q3, up from 3% in Q2.

In October, Flotek said its VeraCAL technology received Environmental Protection Agency approval as an alternative to gas chromatography for measuring flare vent gas and net heating value at petroleum refineries. Ezell estimated the refinery flare-monitoring market at more than $40 million.

What Explains the Margin and Earnings Moves?

Companywide gross margin fell to 24% from 32%, but the comparison is distorted. The prior-year quarter included an $8.7 million order-shortfall payment with no associated cost, versus less than $1 million in the latest quarter. Excluding those payments, Clement said, current-quarter gross margin was roughly 4 percentage points higher than a year earlier.

Net income declined to $13.3 million, or $0.34 per diluted share, from $20.3 million, or $0.53, though the prior-year result included a $12 million tax benefit. Selling, general and administrative expenses fell to 7% of revenue from 13% — a meaningful operating-leverage gain for a company scaling at this pace.

On capital deployment, Flotek plans to invest $15 million to $20 million in 2027 in gas conditioning and distribution equipment, measurement-instrument inventory and manufacturing capacity, with the majority toward next-generation distribution skids. Three of the first four skids, expected by year-end, are already contracted.

The company secured a $120 million senior secured term loan in September, with initial funding of $75 million. After repaying its previous term loan, remaining net proceeds are expected to fund the Data Analytics capital plan, Clement said.

Flotek has not issued 2027 guidance. Ezell said Power Services, Digital Valuation and electrical reliability services should drive much of next year's growth, while North American land activity could be flat to down. The 2026 outlook assumes no fourth-quarter revenue from a Montana power services contract whose initial term expired in September; Flotek is evaluating options for additional work beyond that term.