Flotek(US:FTK)2025-11-04 21:09Financial Performance - Total revenues for Q3 2025 increased by 13% to $56.0 million, compared to $49.7 million in Q3 2024, driven largely by the Data Analytics segment[1][3] - Gross profit for Q3 2025 was $17.8 million, reflecting a 95% increase from $9.1 million in Q3 2024, resulting in a gross profit margin of 32% compared to 18% in the prior year[1][7] - Net income surged to $20.4 million, or $0.53 per diluted share, up from $2.5 million, or $0.08 per diluted share, in Q3 2024, including a $12.6 million tax benefit[1][10] - Adjusted EBITDA rose by 142% to $11.7 million in Q3 2025, marking the twelfth consecutive quarter of growth[1][11] - The Data Analytics segment achieved a revenue increase of 232% to $8.9 million, with service revenues growing over 625% to $7.2 million[1][8] - The Chemistry Technologies segment reported external revenues of $20.2 million, a 43% increase compared to Q3 2024[1][5] - Total revenues for the three months ended September 30, 2025, increased to $56,031 thousand, up 12.9% from $49,742 thousand in the same period of 2024[20] - Net income for the three months ended September 30, 2025, was $20,355 thousand, a significant increase from $2,532 thousand in the same period of 2024[23] - EBITDA for the three months ended September 30, 2025, was $9,675 thousand, compared to $3,045 thousand for the same period in 2024, reflecting a growth of 217%[23] Guidance and Projections - The company revised its 2025 guidance for total revenues to a range of $220-$225 million, up from the previous guidance of $200-$220 million[2] Expenses and Costs - SG&A expenses totaled $7.4 million for Q3 2025, representing 13% of revenues, up from $5.7 million or 11% of revenues in Q3 2024[1][9] - Research and development expenses for the nine months ended September 30, 2025, were $1,359 thousand, slightly up from $1,349 thousand in 2024[20] - The company reported interest expense of $1,351 thousand for the three months ended September 30, 2025, compared to $256 thousand in the same period of 2024, showing a substantial rise[23] - Stock compensation expense for the three months ended September 30, 2025, was $569 thousand, up from $272 thousand in the same period of 2024[23] - The company incurred non-recurring professional fees of $167 thousand for the three months ended September 30, 2025, compared to a benefit of $(50) thousand in the same period of 2024[23] Assets and Liabilities - Total assets increased to $212,687 thousand as of September 30, 2025, up from $170,796 thousand at December 31, 2024[19] - Current liabilities totaled $56,478 thousand, an increase from $50,368 thousand at December 31, 2024[19] - The company had a total stockholders' equity of $110,498 thousand as of September 30, 2025, down from $113,900 thousand at December 31, 2024[19] Cash Flow - Cash and cash equivalents at the end of the period were $4,603 thousand, compared to $4,997 thousand at the end of September 30, 2024[22] - Cash flows from operating activities for the nine months ended September 30, 2025, were $957 thousand, a decrease from $5,925 thousand in 2024[22] Tax and Amortization - The income tax benefit for the three months ended September 30, 2025, was $(12,612) thousand, contrasting with an expense of $37 thousand in the same period of 2024[23] - Depreciation and amortization for the three months ended September 30, 2025, totaled $581 thousand, compared to $220 thousand in the same period of 2024, reflecting an increase of 164%[23] - The amortization of contract assets for the three months ended September 30, 2025, was $1,294 thousand, compared to $1,592 thousand in the same period of 2024[23] Adjusted Metrics - The company believes that Adjusted EBITDA provides a clearer view of its leverage profile and debt service capacity, enhancing comparability for investors and analysts[23]