Flotek Industries NYSE: FTK reported higher first-quarter revenue and adjusted EBITDA as rapid growth in its Data Analytics segment offset weaker external chemistry sales and helped advance the company’s transition toward recurring, higher-margin technology services.
On the company’s first-quarter 2026 earnings call, Chief Executive Officer Ryan Ezell said Flotek’s strategic shift toward a Data-as-a-Service model “continues to gain momentum,” supported by real-time data tools and chemistry solutions aimed at energy and infrastructure customers.
Total revenue increased 27% compared with the first quarter of 2025, while gross profit rose 25% and adjusted EBITDA increased 44%, according to management. Ezell said Data Analytics revenue grew 295% year over year, reaching the highest quarterly level in that segment’s history. Chemistry Technologies revenue rose 13% despite what the company described as three-year lows in North American completions activity.
“Data analytics accounted for 50% of the company’s gross profit versus 8% in the prior year’s quarter, marking a major milestone in Flotek’s transformation,” Ezell said.
Data Analytics Drives Margin Shift
Ezell highlighted particularly strong growth in Data Analytics service revenue, which he said increased 785% from the prior-year period. The segment’s gross profit margin rose to 75%, compared with 38% a year earlier.
Flotek said growth in the segment is being driven by its Power Services platform, which the company calls PowerTech, and its Digital Valuation offering. The company reported several recent contract wins, including a 27-unit order from a large oilfield services customer with a distributed power fleet, a 15-unit order from a major midstream customer for real-time crude and condensate quality measurement, and a smart skid rental deployment for a major international oil company to optimize gas quality through real-time blending of field gas and compressed natural gas.
Ezell said those wins expanded Flotek’s expected backlog for the remainder of 2026 to $34.1 million and its three-year expected backlog to more than $90 million.
The company also said it expects to have proprietary real-time analyzers on more than 50% of the currently active North American e-frac and natural gas-powered fleets by year-end. In response to an analyst question, Ezell said the company’s approach is to first place measurement equipment in the field, then pursue conditioning and optimization opportunities.
Power Services Expands Beyond Oilfield Customers
Management also discussed Flotek’s move into utility and distributed power applications. Ezell said the company has begun Phase I of a utilities infrastructure project tied to federal disaster recovery initiatives, mobilizing 12 megawatts of distributed power along with proprietary gas conditioning and distribution equipment to an infield staging area. First power is expected in the third quarter of 2026.
Chief Financial Officer Bond Clement said Flotek expects 2026 revenue from the disaster recovery Power Services contract to total approximately $12 million before considering any contract extension.
During the question-and-answer session, Ezell said the company believes the project could ultimately involve 25 megawatts to 30 megawatts across two primary sites, with a potential second phase more likely to move into 2027. He also said Flotek is pursuing more than 200 megawatts of additional power generation and conditioning opportunities tied to data centers and other behind-the-meter power applications, although he described many of those as longer-cycle opportunities more likely to generate revenue in 2027.
Digital Valuation Unit Count More Than Doubles
Flotek also pointed to progress in Digital Valuation, which uses its XSPCT spectrometer for real-time measurement in custody transfer processes. Ezell said the XSPCT became the first optical instrument to meet the reproducibility and repeatability requirements of GPA 2172, also known as API 14.5, in the fourth quarter of 2025. The instrument was also named Product of the Year at the 2026 Analyzer Technology Conference.
Since completing a Digital Valuation pilot program in the third quarter of 2025, Flotek ended 2025 with 25 active units deployed. Ezell said that number has more than doubled to 57 units currently deployed or contracted for delivery. In the Q&A session, he said the company is targeting roughly 150 units by year-end and said larger midstream customer orders could cause deployments to grow in a nonlinear fashion.
Chemistry Segment Holds Up Despite Lower Activity
Flotek’s Chemistry Technologies segment posted a 13% revenue increase from the prior-year quarter. Ezell said the performance came despite a 21% decline in the average North American frac fleet count over the same period, citing Primary Vision data.
Clement said related-party revenue increased by about $21 million, or approximately 70%, from the year-ago quarter. Of that increase, roughly $14 million was related to chemistry revenue, while about $7 million came from the PowerTech lease agreement. External customer chemistry revenue declined 33% year over year, though it was flat sequentially.
Management said it expects external chemistry revenue to improve in the second quarter as customer engagement increases. Ezell said available high-end pressure pumping equipment has tightened, particularly for Tier 4 dual-fuel, direct-drive natural gas and e-frac fleets. He also pointed to expected growth from Middle East deployments after logistics delays limited international chemistry revenue in the first quarter.
Guidance Calls for Continued Growth
For 2026, Flotek issued guidance for total revenue of $270 million to $290 million and adjusted EBITDA of $36 million to $41 million. Clement said the midpoints imply growth of 18% and 17%, respectively, compared with 2025.
Net income for the first quarter was $4.7 million, or $0.12 per share, compared with $5.4 million, or $0.17 per share, in the prior-year quarter. Clement attributed the decline primarily to higher depreciation and interest expense related to the PowerTech acquisition that closed in the second quarter of 2025, along with a higher effective tax rate and a higher share count.
Clement said the company expects its effective tax rate to be in the range of 23% to 26% going forward, with the vast majority non-cash. He also said Flotek had a leverage ratio of about 1x using the midpoint of 2026 adjusted EBITDA guidance and net debt as of March 31.
Ezell said the company believes broader energy market conditions are improving, citing geopolitical uncertainty, growing power demand from artificial intelligence and data centers, and aging transmission infrastructure. He said Flotek remains focused on expanding high-margin data services while maintaining its chemistry business as a foundation for customer relationships.
About Flotek Industries NYSE: FTK
Flotek Industries, Inc NYSE: FTK is a Houston-based oilfield services provider specializing in innovative chemical technologies for the upstream energy sector. The company develops, manufactures and markets specialty drilling fluids, completion fluids and production chemicals that enhance drilling efficiency, optimize well performance and mitigate operational risks. Flotek's solutions are designed to improve drilling rates of penetration, reduce nonproductive time and address challenging downhole environments, including high-pressure/high-temperature wells and sour service conditions.
Flotek's operations are organized into three core business segments: Drilling & Completion Fluids, Production Chemicals & Process Management, and Water Solutions.
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