Financial Summary (in thousands, except 'per share' amounts)
Three Months Ended December 31,
Twelve Months Ended December 31,
2025
2024
% Change
2025
2024
% Change
Total Revenues
$ 67,519
$ 50,758
33 %
$ 237,262
$ 187,025
27 %
Gross Profit
$ 15,194
$ 12,277
24 %
$ 59,833
$ 39,386
52 %
Net Income
$ 3,025
$ 4,429
(32) %
$ 30,528
$ 10,498
191 %
Diluted Income Per Share
$ 0.08
$ 0.14
(43) %
$ 0.84
$ 0.34
147 %
Full-Year and Fourth Quarter 2025 Highlights
Highest quarterly and annual revenues since 2017.
Data Analytics achieved its highest-ever quarterly and annual revenue.
Strategic entry into power services in 2025 sets stage for high-margin, recurring revenue growth in 2026 and beyond.
Gross profit climbed 24% vs. fourth quarter 2024 and 52% as compared to full year 2024.
Data Analytics' gross profit accounted for 48% of total Company gross profit during the fourth quarter of 2025, as compared to 8% in the year ago quarter.
2025 net income totaled $30.5 million or $0.84 per diluted share, vs. $0.34 per diluted share in 2024.
Adjusted EBITDA Calculation Modification
The Company's revenue, as reported under generally accepted accounting principles, includes a non-cash reduction related to the amortization of contract assets. Historically, the Company added back this non-cash revenue reduction in its calculation of Adjusted EBITDA.
Beginning with year-end 2025 reporting, the Company has revised its calculation of Adjusted EBITDA and will no longer add back the non-cash amortization of contract assets associated with the ProFrac Agreement in accordance with relevant Securities and Exchange Commission's guidance on the disclosure of non-GAAP financial measures. Non-cash amortization of contract assets that would have been added back under the Company's previous calculation of Adjusted EBITDA totaled $2.1 million and $1.3 million during the fourth quarters of 2025 and 2024, respectively, and $6.3 million and $5.6 million for the years ended December 31, 2025 and 2024, respectively. This revision does not impact debt covenants or the Company's operating cash flow.
The following table presents the Company's Adjusted EBITDA for the quarter and year-end December 31, 2025 and 2024 using the revised methodology (in thousands):
Three Months Ended December 31,
Twelve Months Ended December 31,
2025
2024
% Change
2025
2024
% Change
Adjusted EBITDA (Revised)(1)(2)
$ 8,047
$ 5,752
40 %
$ 32,790
$ 14,715
123 %
The Company's previously issued 2025 Adjusted EBITDA(3) guidance of $35 million to $40 million was based on its historical calculation methodology. Reflecting the revised methodology described above, 2025 Adjusted EBITDA(3) guidance would have been approximately $29 million to $34 million. For comparison, Adjusted EBITDA using the revised methodology for the year ended December 31, 2025 totaled $32.8 million.
(1)
Represents a non-GAAP financial measure, see the "Unaudited Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings" table in this release for more information about this measure, including reconciliations to the most comparable GAAP measures.
(2)
Under the Company's previous methodology of computing Adjusted EBITDA, the Company added back non-cash amortization of contract assets totaling $2.1 million and $1.3 million during the fourth quarters of 2025 and 2024, respectively, and $6.3 million and $5.6 million for the years ended December 31, 2025 and 2024, respectively.
(3)
Represents a non-GAAP financial measure, see the "Unaudited Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings" table in this release for more information about this measure. We are not able to reconcile this forward-looking non-GAAP measure to the most directly comparable GAAP financial measure without unreasonable efforts, as we are unable to predict with a reasonable degree of certainty the impact of certain items that would be expected to impact the GAAP financial measure, including, among other items, certain stock-based compensation costs, interest costs related to fluctuations in borrowings outstanding under the Company's asset based loan and the impact of the revaluation of certain liabilities, which is based upon our future stock price. These items do not impact the non-GAAP financial measure.
Management Commentary
Chief Executive Officer Dr. Ryan Ezell remarked, "Our fourth quarter results cap a transformative 2025 and reinforce Flotek's data driven growth trajectory. Through the powerful convergence of real-time data analytics and chemistry solutions, we delivered standout performance across both segments. In 2025, Data Analytics grew exponentially while Chemistry outpaced the market in a challenging environment.
The April 2025 entry into power services represents a game-changing platform expansion, unlocking high-margin, recurring opportunities in utilities and beyond. With Data Analytics now contributing nearly 50% of gross profit, our business is more balanced, resilient, and scalable than ever. We enter 2026 with strong tailwinds, proven execution, a growing backlog of recurring revenue, and early validation in new markets that position us for even greater momentum.
Our 2025 results, including 191% growth in net income and a 123% increase in Adjusted EBITDA(1), were achieved safely and efficiently. The best is yet to come as we capitalize on these foundations to drive sustained, profitable expansion."
Fourth Quarter and Full-Year 2025 Financial Results
Revenue: Flotek reported total revenues of $67.5 million for fourth quarter 2025, an increase of $16.8 million, or 33%, compared to total revenues of $50.8 million for fourth quarter 2024. Full-year 2025 total revenues totaled $237.3 million, as compared to total revenues of $187.0 million during 2024. Fourth quarter and full year 2025 revenues include $3.4 million and $27.4 million, respectively, related to the minimum purchase requirements under the Company's long-term supply agreement with ProFrac Services, LLC.
Segment Revenue Summary (in thousands)
Three Months Ended December 31,
Twelve Months Ended December 31,
2025
2024
% Change
2025
2024
% Change
Chemistry Technologies:
External Revenues
$ 14,791
$ 21,071
(30) %
$ 79,565
$ 63,214
26 %
Related Party Revenues
42,659
27,215
57 %
130,221
114,947
13 %
Total
$ 57,450
$ 48,286
19 %
$ 209,786
$ 178,161
18 %
Data Analytics:
Product Revenues
$ 2,154
$ 825
161 %
$ 7,330
$ 4,745
54 %
Service Revenues
7,915
1,647
381 %
20,146
4,119
389 %
Total
$ 10,069
$ 2,472
307 %
$ 27,476
$ 8,864
210 %
Gross Profit: The Company generated gross profit of $15.2 million during fourth quarter 2025 compared to a gross profit of $12.3 million during fourth quarter 2024. The improvement in fourth quarter 2025 gross profit was primarily the result of the 19% increase in chemistry revenue and a 307% increase in data analytics revenue, as compared to fourth quarter 2024. This meaningful shift toward higher-margin Data Analytics (now approximately 48% of Q4 gross profit) enhances our profitability profile and supports continued margin expansion as we scale in new markets.
The increase in fourth quarter 2025 gross profit was partially offset by a $5.2 million or 60% reduction in the order shortfall penalty under the Company's chemistry supply agreement, as compared to the year ago quarter. On a percentage of revenue basis, gross profit totaled 22.5% for the fourth quarter of 2025.
The Company generated gross profit of $59.8 million for full-year 2025 compared to gross profit of $39.4 million for full-year 2024. On a percentage of revenue basis, gross profit totaled 25% for the year ended December 31, 2025.
Selling, General and Administrative ("SG&A") Expense: SG&A expense totaled $7.6 million for fourth quarter 2025 as compared to SG&A expense of $6.6 million for fourth quarter 2024. SG&A expense totaled $28.0 million for full-year 2025 compared to $24.7 million for full-year 2024. On a percentage of revenue basis, SG&A totaled 12% during 2025 as compared to 13% during 2024.
Net Income and EPS: Flotek reported net income of $3.0 million, or $0.08 per diluted share, for the fourth quarter 2025. This compares to net income of $4.4 million, or $0.14 per diluted share, for the fourth quarter 2024. The Company's fourth quarter 2025 net income was impacted by a higher effective tax rate resulting from non-cash adjustments related to the partial release of the valuation allowance on deferred tax assets. Net income for full-year 2025 was $30.5 ...
