Core Viewpoint - Flotek Industries, Inc. reported strong financial results for Q2 2025, demonstrating significant growth in revenues and gross profit across its two main segments, driven by the execution of its transformational strategy and expansion into new markets [1][2][10]. Financial Summary - Total revenues for Q2 2025 reached $58.35 million, a 26% increase from $46.15 million in Q2 2024 [1][20]. - Gross profit increased by 57% to $14.41 million compared to $9.17 million in the same quarter last year [1][4]. - Net income for Q2 2025 was $1.77 million, down 10% from $1.97 million in Q2 2024, while adjusted net income surged by 202% to $5.96 million [1][6][24]. - Adjusted EBITDA rose by 113% to $9.45 million, marking the eleventh consecutive quarter of improvement [1][8][10]. Segment Performance - The Chemistry Technologies segment generated total revenues of $52.42 million, a 19% increase year-over-year, with external revenues up 38% [3][11]. - The Data Analytics segment saw a remarkable 189% revenue increase, with service revenues growing by 452% to $4.11 million [3][11]. - Data Analytics revenues now account for 10% of total revenues, up from 4% in Q2 2024, contributing to a 500 basis point improvement in gross profit margin [10][11]. Cost Management - Selling, General and Administrative (SG&A) expenses totaled $6.8 million, representing 12% of revenues, down from 14% in the previous year [5][20]. - The increase in SG&A was attributed to higher non-cash stock compensation expenses [5]. Asset Acquisition Update - The company expects the recently acquired assets to generate approximately $15 million in high-margin rental revenue during 2025, a 7% increase from previous estimates [9]. - Revenues from the acquired assets totaled $3.2 million in Q2 2025, with a gross profit margin of approximately 90% [9][10]. Guidance - Flotek maintains its guidance for total revenue between $200 million and $220 million and adjusted EBITDA between $34 million and $39 million for the full year 2025 [18].

Core Points - Flotek Industries, Inc. will be added to the Russell 3000® Index effective June 30, 2025, enhancing its visibility in the investment community [1][2][3] - Membership in the Russell 3000® Index includes automatic inclusion in either the large-cap Russell 1000® Index or the small-cap Russell 2000® Index, as well as applicable Russell growth and value style indexes [2] - The Russell indexes are widely utilized by investment managers and institutional investors, with approximately $10.6 trillion in assets benchmarked against them as of June 2024 [3] Company Overview - Flotek Industries is a leading chemistry and data technology company focused on the energy industry, leveraging real-time data to provide innovative solutions [5][6] - The company holds an intellectual property portfolio of over 130 patents and has a global presence in more than 59 countries [5] - Flotek aims to reduce the environmental impact of energy through sustainable and optimized chemistry and data solutions [6] Industry Context - FTSE Russell, the provider of the Russell indexes, is a global leader in benchmarking and analytics, with approximately $18.1 trillion benchmarked to its indexes [7] - FTSE Russell's indexes cover 98% of the investable market globally and are used extensively by institutional and retail investors [7]