Core Insights - Flotek Industries reported significant revenue growth of 26% year-over-year, with total revenue reaching $58.35 million, surpassing analyst estimates [1][2] - The company achieved an adjusted EPS of $0.16, exceeding the forecast of $0.14, while GAAP net income declined by 10% to $1.8 million due to acquisition costs [1][2] - The company is focusing on higher-margin offerings, particularly through its Data Analytics segment, which saw a revenue increase of 189% [1][7] Financial Performance - Revenue (GAAP) for Q2 2025 was $58.35 million, compared to $54.76 million estimated and $46.2 million in Q2 2024, marking a 26% increase [2] - Gross profit rose to $14.4 million, a 57% increase from $9.2 million in Q2 2024, with gross margin improving to 25% from 20% [2][5] - Adjusted EBITDA more than doubled to $9.5 million, while net income (GAAP) was $1.8 million, down from $2.0 million in Q2 2024 [2][8] Segment Performance - The Chemistry Technologies segment generated $52.4 million in GAAP revenue, up 19%, with external sales increasing by 38% [6] - The Data Analytics segment reported $5.9 million in revenue, driven by the acquisition of PWRtek, contributing $3.2 million in high-margin rental income [7][11] - Service revenues in the Data Analytics segment climbed 452%, while product revenues increased by 39% [7] Strategic Focus - Flotek is shifting its revenue mix towards higher-margin, recurring-service lines, supported by strategic partnerships like the one with ProFrac Services [4] - The company is investing in technology and regulatory-driven solutions to enhance its Data Analytics offerings, particularly in emissions compliance [4][11] - International expansion efforts are ongoing, with growth noted in the Middle East and Argentina [12] Outlook and Guidance - Management reaffirmed full-year FY2025 guidance of $200–220 million in revenue and adjusted EBITDA of $34–39 million, reflecting confidence in Data Analytics growth [14] - The recent acquisition is expected to contribute approximately $15 million in rental revenue for 2025, 7% higher than previous estimates [14] - Continued adoption of products in power generation and emissions monitoring markets is anticipated [14]