Flotek Industries (NYSE:FTK) said third-quarter revenue more than doubled from a year earlier to exceed $114 million, as growth in international chemistry sales and its Data Analytics business helped the company raise its full-year outlook for the third time in 2026.
Adjusted EBITDA rose 87% year over year to $19.5 million, while revenue in both the Chemistry Technologies and Data Analytics segments increased 104%, executives said on the company’s November 4 earnings call. Chief Executive Officer Ryan Ezell said the quarter was Flotek’s strongest for revenue since 2014.
The company now expects 2026 revenue of $382 million to $390 million and adjusted EBITDA of $59 million to $62 million. At the midpoint, the forecasts represent increases of 63% and 83%, respectively, from 2025 results, Ezell said.
International chemistry drives growth
International chemistry revenue rose to $28.4 million from $2.2 million a year earlier and accounted for approximately one-quarter of total company revenue. Chief Financial Officer Bond Clement said the increase was driven by ongoing work in the Middle East. Domestic external chemistry revenue was $17.5 million, approximately level with the prior-year quarter.
Clement said the company expects fourth-quarter international chemistry revenue to be similar to the third quarter’s level, potentially bringing the full-year total to approximately $70 million. Ezell said Flotek expects its Saudi Arabian business to maintain its pace in 2027, with potential upside in Latin America and the United Arab Emirates.
Asked about the source of international growth, Ezell attributed it primarily to market-share gains, including work in Saudi Arabia’s Jafurah unconventional development. He said Flotek was also pursuing additional opportunities in Saudi Arabia and the UAE and had received inquiries about data services in Latin America.
Related-party chemistry revenue rose 87% year over year and exceeded $50 million in the quarter for the first time under Flotek’s long-term chemistry supply agreement established in 2022, Clement said.
Data Analytics expands
Data Analytics revenue reached $18.1 million, with external customer revenue increasing to $11 million from $2.8 million a year earlier. Nearly 80% of the segment’s revenue came from data-as-a-service offerings, according to Ezell.
Although Data Analytics represented 16% of company revenue, it contributed 45% of gross profit and generated a 68% gross margin, Clement said.
Ezell said Flotek expects to add another gigawatt of power support through its PWRtek platform by the first quarter of 2027, bringing the total to nearly 6 gigawatts of behind-the-meter power. Of 41 PWRtek skids at the end of the quarter, roughly 25 to 28 were in service with ProFrac, while others were used in utilities, power and preliminary data-center work, he said.
Flotek deployed more than 135 Digital Valuation measurement devices by the end of the third quarter. Ezell said the company expects fourth-quarter deliveries to be its largest of the year and to exceed its 2026 target of 150 instruments. Clement said Digital Valuation accounted for 9% of Data Analytics revenue in the third quarter, up from 3% in the second quarter.
In October, Flotek said its VeraCAL technology received Environmental Protection Agency approval as an alternative to gas chromatography for measuring flare vent gas and net heating value at petroleum refineries. Ezell estimated the refinery flare-monitoring market at more than $40 million and said the approval could expand deployment opportunities.
Margins, earnings and capital spending
Companywide gross margin fell to 24% from 32% a year earlier. Clement said the prior-year quarter included an $8.7 million order-shortfall payment with no associated cost, while the payment was less than $1 million in the latest quarter. Excluding those payments, he said, the current-quarter gross margin was approximately 4 percentage points higher than a year earlier.
Net income declined to $13.3 million, or $0.34 per diluted share, from $20.3 million, or $0.53 per share. Clement noted that the prior-year result included a $12 million tax benefit. Selling, general and administrative expenses fell to 7% of revenue from 13% a year earlier.
Flotek plans to invest $15 million to $20 million in 2027 to expand gas conditioning and distribution equipment, increase its inventory of measurement instruments and enhance manufacturing capacity. Ezell said the majority is expected to go toward next-generation distribution skids. Three of the first four, expected by year-end, are already contracted, he said.
The company secured a $120 million senior secured term loan in September, with initial funding of $75 million. After repayment of its previous term loan, remaining net proceeds are expected to fund the Data Analytics capital plan, Clement said.
Flotek has not issued 2027 guidance. Ezell said he expects Power Services, Digital Valuation and electrical reliability services to drive much of the company’s growth, while North American land activity could be flat to down.
The 2026 outlook assumes no fourth-quarter revenue from a Montana power services contract whose initial term expired in September. Clement said Flotek is evaluating options for additional work beyond that term.
About Flotek Industries (NYSE:FTK)
Flotek Industries, Inc is a technology-driven company that develops chemistry and data solutions for the energy and industrial markets. Its offerings are designed to help customers improve operational performance, manage environmental impacts and use resources more efficiently.
Through its Chemistry Technologies business, Flotek provides proprietary green chemistry products for oil and natural gas exploration and production, industrial water treatment and other industrial applications.
