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1. Company Snapshot

1.a. Company Description

Flotek Industries, Inc.operates as a technology-driven chemistry and data company that serves customers across industrial, commercial, and consumer markets in the United States, the United Arab Emirates, and internationally.It operates in two segments, Chemistry Technologies (CT) and Data Analytics (DA).


The CT segment designs, develops, manufactures, packages, distributes, delivers, and markets green specialty chemicals that enhance the profitability of hydrocarbon producers and cleans surfaces in commercial and personal settings to help reduce the spread of bacteria, viruses, and germs.This segment primarily serves integrated oil and gas, oilfield services, independent oil and gas, national and state-owned oil, geothermal energy, solar energy, and alternative energy companies.The DA segment designs, develops, produces, sells, and supports equipment and services that create and provide valuable information on the composition and properties of energy customers' hydrocarbon fluids.


This segment's data platforms combine the energy industry's field-deployable, inline optical analyzer with proprietary cloud visualization and analytics.It sells its products directly through a mix of in-house sales professionals, as well as contractual agency agreements.The company was incorporated in 1985 and is headquartered in Houston, Texas.

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1.b. Last Insights on FTK

Flotek Industries' recent performance was driven by robust growth across its two segments, with total revenues increasing 13% and gross profit surging 95% in Q3 2025. The acquisition of mobile gas conditioning assets in Q2 2025 contributed $6.1 million to revenue. Its data analytics business, PWRtek, showed fast deployment and traction, boosting margins. A major Middle East contract and continued PWRtek expansion could drive further upside. The company's XSPCT custody transfer unit achieved a historic milestone in natural gas measurement, meeting GPA 2172 standards.

1.c. Company Highlights

2. Flotek Industries' Q3 2025 Earnings: A Strong Upswing in Data Analytics

Flotek Industries reported a robust third quarter 2025, with total revenue rising 13% year-over-year to an undisclosed figure, driven primarily by a 232% surge in data analytics revenue and a 43% increase in external chemistry revenue. Gross profit climbed 95% versus the third quarter of 2024, with a gross profit margin expanding to 32%. The company's net income totaled $20.4 million, while adjusted EBITDA was up 142% versus the third quarter of 2024. Earnings per share (EPS) came in at $0.2, beating analyst estimates of $0.15.

Publication Date: Nov -21

📋 Highlights

Segment Performance

The data analytics segment was a significant contributor to the company's growth, with revenue increasing by 232% year-over-year. The PWRtek assets, acquired earlier, contributed $6.1 million in revenue during the quarter, driving a 50% sequential increase in data analytics revenue. Data analytics gross profit margin was 71% during the quarter, highlighting the segment's profitability. As Ryan Ezell mentioned, "The $6.1 million in PWRtek revenues during the quarter drove a 50% sequential increase in data analytics revenue."

Guidance and Outlook

Flotek Industries is optimistic about its growth prospects, with the company expecting the data analytics segment to contribute over half of the company's profitability in 2026. The company's guidance points to the execution of its corporate strategy, leveraging chemistry as a common value creation platform. Analysts estimate revenue growth of 13.5% for the next year, which is slightly higher than the company's historical growth rate.

Valuation

Flotek Industries is currently trading at a P/E Ratio of 15.13, P/B Ratio of 4.37, and EV/EBITDA of 16.9. The company's ROE is 30.71%, indicating strong profitability. The market seems to have priced in a significant amount of growth, given the current valuation multiples. However, with the company's strong track record of execution and growth prospects, the current valuation may be justified.

Operational Highlights

The company's data analytics business is gaining momentum, with successful pilot programs transitioning to commercial phases. The PWRtek units have been successful, with a $27.24 million base contract, and the company aims to double the size of its paired fleet by the end of 2026. Flotek Industries is also seeing improvements in its chemistry business, with revenue growth expected even if the fracturing fleet is flat to down in 2026.

3. NewsRoom

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Flotek: The Earnings Engine Rewired In Q3 2025

Nov -12

Source: seekingalpha.com

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Flotek Industries, Inc. (FTK) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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Flotek Industries (FTK) Q3 Earnings and Revenues Top Estimates

Nov -04

Source: zacks.com

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Flotek Reports 95% Gross Profit Growth in Third Quarter

Nov -04

Source: prnewswire.com

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Flotek's 'XSPCT ™' Custody Transfer Unit Becomes the First Optical Spectrometer to Meet GPA 2172 Standard

Oct -29

Source: prnewswire.com

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Top 3 Breakout Stocks to Buy Now for Active Investors

Oct -28

Source: zacks.com

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Is Flotek Industries (FTK) Outperforming Other Oils-Energy Stocks This Year?

Oct -28

Source:

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Flotek Announces Third Quarter 2025 Earnings Release and Conference Call Schedule

Oct -07

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.94%)

6. Segments

Chemistry Technologies

Expected Growth: 4.65%

Flotek Industries' Chemistry Technologies segment growth of 4.65% is driven by increasing demand for specialty chemistries in oil and gas, growth in hydraulic fracturing activities, and expansion into new markets. Additionally, the company's focus on research and development, strategic partnerships, and operational efficiencies contribute to its growth momentum.

Data Analytics

Expected Growth: 11.5%

Flotek Industries' 11.5% growth in Data Analytics is driven by increasing demand for real-time data insights in the oil and gas industry, expansion into new markets, and strategic partnerships. Additionally, the company's proprietary data analytics platform, which provides actionable insights to optimize drilling and production operations, has been a key growth catalyst.

7. Detailed Products

Chemical Technologies

Specialty chemicals for oil and gas well drilling, completion, and production operations

Data Analytics

Real-time data analytics and insights for oil and gas operations

Drilling and Intervention Technologies

Downhole tools and services for drilling, completion, and intervention operations

Reservoir Consulting

Reservoir engineering and consulting services for oil and gas operators

8. Flotek Industries, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Flotek Industries, Inc. is medium due to the availability of alternative products and services in the oil and gas industry.

Bargaining Power Of Customers

The bargaining power of customers for Flotek Industries, Inc. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Flotek Industries, Inc. is medium due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for Flotek Industries, Inc. is high due to the relatively low barriers to entry in the oil and gas industry.

Intensity Of Rivalry

The intensity of rivalry for Flotek Industries, Inc. is high due to the presence of several established players in the oil and gas industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 9.10%
Debt Cost 9.26%
Equity Weight 90.90%
Equity Cost 9.26%
WACC 9.26%
Leverage 10.01%

11. Quality Control: Flotek Industries, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Forum Energy Technologies

A-Score: 4.9/10

Value: 9.0

Growth: 3.1

Quality: 4.2

Yield: 0.0

Momentum: 10.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Dril-Quip

A-Score: 4.7/10

Value: 6.8

Growth: 6.3

Quality: 7.9

Yield: 0.0

Momentum: 5.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Oil States International

A-Score: 4.2/10

Value: 6.3

Growth: 3.9

Quality: 4.6

Yield: 0.0

Momentum: 7.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Flotek

A-Score: 3.8/10

Value: 1.5

Growth: 5.0

Quality: 4.7

Yield: 0.0

Momentum: 10.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
KLX Energy Services Holdings

A-Score: 3.1/10

Value: 9.8

Growth: 4.2

Quality: 3.7

Yield: 0.0

Momentum: 0.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
ProFrac

A-Score: 2.8/10

Value: 8.7

Growth: 4.0

Quality: 2.0

Yield: 0.0

Momentum: 1.0

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

16.38$

Current Price

16.38$

Potential

-0.00%

Expected Cash-Flows