Flotek (FTK) Q4 2025 Earnings Call Transcript

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Thursday, March 12, 2026, astatine 10:00 a.m. ET

• Chief Executive Officer — Ryan Ezell

• Chief Financial Officer — Bond Clement

• Executive Chairman — Mike Critelli

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Ryan Ezell: Thank you, Mike. Good morning, everyone. We admit your involvement successful Flotek Industries, Inc. and your information contiguous arsenic we reappraisal our Q4 and afloat twelvemonth 2025 operational and fiscal results. In the 4th quarter, we saw North American operators support the cautious posture initiated successful the 2nd 4th arsenic they continued to navigate the instrumentality of OPEC+ spare capableness and persistent planetary commercialized volatility. Despite the dynamic geopolitical and macroeconomic challenges that person injected uncertainty wrong the market, the Flotek Industries, Inc. squad remains steadfast successful the execution of our firm strategy, driving transformation, and delivering our 3rd consecutive twelvemonth of important gross nett and adjusted EBITDA improvement.

Through the almighty convergence of innovative real-time information and chemistry solutions, arsenic shown connected descent 3, Flotek Industries, Inc. has laid the instauration for a data-driven maturation trajectory built connected divers recurring revenue, high-margin services, and proprietary technologies that make worth for our customers and amended returns for our shareholders. Transitioning to descent 4, Flotek Industries, Inc. extended its way grounds of transforming the institution into a data-as-a-service concern exemplary arsenic our concern pivot continues to summation momentum portion expanding the full addressable marketplace for aboriginal maturation of the company. Furthermore, we delivered standout show passim 2025, resulting successful accrued marketplace stock successful some of our complementary concern segments.

Data Analytics grew exponentially portion Chemistry outpaced the marketplace successful a challenging situation done an unwavering committedness to safety, work quality, innovation, and full worth creation. With that, I would similar to interaction connected immoderate cardinal highlights for the 4th referenced connected descent 7 that Bond volition sermon aboriginal successful the call. Q4 and afloat twelvemonth 2025 saw the highest quarterly and yearly revenues since 2017. The Data Analytics conception achieved its highest ever quarterly and yearly gross successful institution history. Our gross nett climbed 24% versus 2024 and 52% arsenic compared to afloat twelvemonth 2024.

The Data Analytics gross nett accounted for 48% of the full institution gross nett during 2025 arsenic compared to lone 8% successful the 4th a twelvemonth ago. Adjusted EBITDA grew implicit 123% year-over-year, portion 2025 nett income improved 191%. Finally, we completed the onboarding of our PowerTech assets and the strategical introduction into Power Services successful 2025. This sets the signifier for high-margin recurring gross maturation successful 2026 and beyond. All of these results were achieved with zero mislaid clip incidents successful the tract operations, with our Prescriptive Chemistry Management and Raceland NTI squad surpassing implicit 10 years without a mislaid clip incident.