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Flotek
(NYSE:FTK)
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Rating:71Outperform
Price Target:
$34.00
▲(41.67% Upside)
Action:Upgraded
Date:09/23/26
FTK scores well due to strong recent operating momentum and upbeat guidance from the latest earnings call, reinforced by favorable technical trend signals. The score is held back primarily by weak and volatile cash conversion (negative TTM operating/free cash flow) and a relatively high P/E valuation with no dividend support.
Positive Factors
Data analytics growth
Rapid data analytics growth is shifting Flotek toward higher-margin, recurring, subscription-like services. The segment’s increasing contribution to gross profit can improve revenue quality, diversify the chemistry base, and support more durable earnings growth over the next several quarters.
Negative Factors
Negative cash conversion
Negative operating and free cash flow contrasts with reported profitability and indicates that earnings are not consistently converting into cash. Persistent working-capital swings or timing effects could limit internally funded growth, reduce financial flexibility, and increase reliance on borrowing.
Read all positive and negative factors
Positive Factors
Negative Factors
Data analytics growth
Rapid data analytics growth is shifting Flotek toward higher-margin, recurring, subscription-like services. The segment’s increasing contribution to gross profit can improve revenue quality, diversify the chemistry base, and support more durable earnings growth over the next several quarters.
Read all positive factors
Flotek Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down sales by business line, showing which products or services drive growth and how concentrated the company’s revenue is. For Flotek, segment-level revenue can reveal dependence on oilfield chemistry or service lines that move with drilling activity, helping you judge where growth or vulnerability is coming from.
Breaks down sales by business line, showing which products or services drive growth and how concentrated the company’s revenue is. For Flotek, segment-level revenue can reveal dependence on oilfield chemistry or service lines that move with drilling activity, helping you judge where growth or vulnerability is coming from.
Data provided by:
The Fly
The FlyFlotek (FTK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.05B
Dividend YieldN/A
Average Volume (3M)590.54K
Price to Earnings (P/E)27.8
Beta (1Y)1.72
Revenue Growth36.77%
EPS Growth125.54%
CountryUS
Employees159
SectorGeneral
Sector StrengthN/A
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)1.06
Shares Outstanding36,220,430
10 Day Avg. Volume424,687
30 Day Avg. Volume590,536
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)5.17
Price to Sales (P/S)2.46
P/FCF Ratio111.91
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$38.10Price Target Upside58.75% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.78
Revenue Forecast (FY)$355.93M
Flotek Business Overview & Revenue Model
Company Description
Flotek Industries, Inc., founded in 1985 and headquartered in Houston, Texas, operates as an innovation-driven enterprise specializing in chemical and data solutions. Its global reach extends across industrial, commercial, and consumer sectors, wi...
How the Company Makes Money
Flotek makes money primarily by selling specialty chemical products and related solutions to oil and gas operators and service companies. Its revenue is driven by (1) product sales—chemistries that are applied during drilling, hydraulic fracturing...
Flotek Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
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.Positive Updates
Strong Quarterly Revenue Growth
Total company revenue approached $100 million in Q2 2026, up 70% year-over-year and described as the strongest quarterly performance in the last 10 years.
Negative Updates
Second-Half Revenue Normalization and Transactionality
Management moderated back-half domestic external chemistry expectations due to transactional, lumpy nature of chemistry deals and acknowledged some customers pulled work into June, leading to a normalization assumption for H2. Guidance assumes no revenue from the Montana Phase 2 extension in Q4 (extension not yet secured).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarterly Revenue Growth
Total company revenue approached $100 million in Q2 2026, up 70% year-over-year and described as the strongest quarterly performance in the last 10 years.
Read all positive updates
Company Guidance
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.Flotek Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 292.97M | 237.26M | 187.03M | 188.06M | 136.09M | 43.27M |
| Gross Profit | 71.67M | 59.83M | 39.39M | 24.26M | -6.70M | 3.26M |
| EBITDA | 42.36M | 25.43M | 13.13M | 28.45M | -34.54M | -29.48M |
| Net Income | 38.00M | 30.53M | 10.50M | 24.71M | -42.30M | -30.53M |
Balance Sheet | ||||||
| Total Assets | 268.04M | 220.05M | 170.80M | 157.51M | 164.81M | 50.24M |
| Cash, Cash Equivalents and Short-Term Investments | 4.40M | 5.73M | 4.40M | 5.85M | 12.29M | 11.53M |
| Total Debt | 56.20M | 50.15M | 12.85M | 17.88M | 119.58M | 13.26M |
| Total Liabilities | 138.82M | 106.99M | 56.90M | 55.55M | 162.21M | 30.05M |
| Stockholders Equity | 129.21M | 113.06M | 113.90M | 101.96M | 2.60M | 20.19M |
Cash Flow | ||||||
| Free Cash Flow | -5.09M | 5.22M | 1.42M | -12.38M | -45.05M | -25.88M |
| Operating Cash Flow | -2.18M | 7.20M | 3.36M | -11.30M | -44.63M | -25.84M |
| Investing Cash Flow | -2.92M | -1.98M | -1.82M | -1.01M | 5.33M | 112.00K |
| Financing Cash Flow | 4.32M | -3.74M | -3.12M | 5.93M | 38.27M | -372.00K |
Flotek Technical Analysis
Positive
24.00
Price Trends
27.80
Positive
24.86
Positive
20.87
Positive
Market Momentum
0.94
Negative
55.97
Neutral
61.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTK, the sentiment is Positive. The current price of 24 is below the 20-day moving average (MA) of 27.10, below the 50-day MA of 27.80, and above the 200-day MA of 20.87, indicating a bullish trend. The MACD of 0.94 indicates Negative momentum. The RSI at 55.97 is Neutral, neither overbought nor oversold. The STOCH value of 61.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTK.
Flotek Risk Analysis
Flotek disclosed 40 risk factors in its most recent earnings report. Flotek reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Flotek Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $959.58M | -590.75 | -0.55% | ― | 3.93% | 99.16% | |
71 Outperform | $1.05B | 27.75 | 32.27% | ― | 36.77% | 125.54% | |
69 Neutral | $429.51M | 20.12 | 7.31% | 1.59% | 15.42% | 13.10% | |
66 Neutral | $361.80M | 25.22 | 4.87% | 1.55% | 6.08% | -38.85% | |
56 Neutral | $501.28M | -4.42 | -17.80% | ― | -2.80% | -1752.76% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
46 Neutral | $64.94M | -1.62 | -35.80% | ― | -20.50% | -191.37% |
* General Sector Average
FTK
Flotek
29.53
15.10
104.64%
FET
Forum Energy Tech
82.83
55.02
197.84%
NGS
Natural Gas Services Group
32.80
4.76
17.00%
OIS
Oil States International
8.28
1.95
30.81%
GEOS
Geospace Technologies
4.99
-14.17
-73.96%
RNGR
Ranger Energy Services
15.51
1.43
10.19%
Flotek Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Flotek Secures New $120 Million Term Loan Facility
Positive
Sep 23, 2026
On September 23, 2026, Flotek Industries, Inc. entered into a senior secured term loan agreement providing $75 million of initial funding and up to $45 million in delayed-draw capacity, for total availability of $120 million, led by Elda River Cap...
Business Operations and StrategyFinancial Disclosures
Flotek Raises 2026 Guidance on Strong Chemistry Sales
Positive
Sep 9, 2026
On September 9, 2026, Flotek Industries raised its full-year 2026 guidance for total revenue to a range of $360 million to $370 million and Adjusted EBITDA to $50 million to $54 million, citing continued strength in international chemistry sales. ...
Business Operations and StrategyFinancial Disclosures
Flotek Loses Major Puerto Rico Power Contract
Negative
Aug 19, 2026
On August 18, 2026, the Puerto Rico Electric Power Authority terminated its Power Purchase and Operating Agreement tied to a 400 MW natural gas-fired generation project, citing a failure to provide performance security and a directive from Puerto ...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Flotek Faces PREPA Contract Uncertainty and Short-Seller Pressure
Negative
Aug 18, 2026
On August 18, 2026, Flotek reported that its participation in Puerto Rico’s Emergency Temporary Power Generation project under a 10-year PREPA contract is in limbo after the Financial Oversight and Management Board voted to revoke approval a...
Business Operations and StrategyFinancial Disclosures
Flotek boosts 2026 outlook after strong Q2 performance
Positive
Aug 4, 2026
On August 4, 2026, Flotek reported second‑quarter 2026 results showing a sharp acceleration in growth, with total revenue rising 70% year‑on‑year to $99.4 million and net income surging 463% to $9.9 million. Adjusted EBITDA more ...
Business Operations and StrategyFinancial Disclosures
Flotek Secures 10-Year Puerto Rico Power Contract
Positive
Aug 3, 2026
On August 3, 2026, Flotek announced a 10-year agreement to support natural gas-fired grid enhancement initiatives for the Puerto Rico Electric Power Authority, as part of a 400 MW emergency temporary power generation project designed to alleviate ...
Business Operations and StrategyPrivate Placements and Financing
Flotek Extends Revolving Loan Maturity, Enhancing Flexibility
Positive
Jul 17, 2026
On August 14, 2023, Flotek Industries, Inc. and its subsidiaries entered into a Revolving Loan and Security Agreement with Amerisource Funding, Inc., which was amended on October 5, 2023 and August 5, 2024. Effective July 15, 2026, a Third Amendme...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.