Flotek (FTK) Q2 2026 Earnings Report

The call presented a predominately positive transformation story: sharply higher revenue (+70% YoY), strong margin and profitability expansion (gross profit +65%, adjusted EBITDA +109%), rapid, high-margin growth in the data analytics segment (223% YoY) and a materially larger contracted backlog (~$500M) highlighted by a major 10-year Puerto Rico award. Management also communicated improved operational leverage (G&A as % of revenue down to <8%), reduced ABL borrowings to zero, and upgraded full-year guidance. Offsetting these positives are the transactional and lumpy nature of chemistry revenues (creating quarter-to-quarter volatility), modest gross-margin compression, working-capital and supply-chain timing strain from pulled-forward international work, and near-term uncertainty about the timing/financial recognition of the Puerto Rico contract and the Montana Phase 2 extension. On balance, the highlights considerably outweigh the lowlights given the scale of growth, backlog expansion, and progress toward recurring, high-margin DaaS revenue.

Flotek updated 2026 guidance calls for total revenue of $340–$350 million and adjusted EBITDA of $47–$51 million (midpoints imply ~45% revenue and ~49% EBITDA growth vs. 2025); management noted the adjusted EBITDA guidance does not add back ~ $9 million of non‑cash amortization of contract assets. The outlook is supported by a record Q2 (total revenue ~ $100M, +70% YoY; adjusted EBITDA $16.8M, +109% YoY; gross profit +65% YoY and gross margin ~24%), strong segment momentum (data analytics revenue +223% YoY and representing 19% of company revenue in Q2 and 51% of gross profit vs. 26% a year ago; chemistry revenue +53% YoY with international chemistry $10.6M, +172% YoY), a contracted backlog now exceeding $500M (including the PREPA Puerto Rico award contributing ~ $400M backlog) and plans to support >5 GW of power by Q1 2027; first‑half results showed revenue +49% and adjusted EBITDA +81% YoY, ABL borrowings were reduced to zero and net‑debt leverage (using the midpoint) is under 1x.