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Flotek Reports 95% Gross Profit Growth in Third Quarter
Prnewswireยท 2025-11-04 21:08
Core Insights - Flotek Industries, Inc. reported strong financial results for Q3 2025, demonstrating successful execution of its transformational strategy and robust growth across its segments [1][4]. Financial Performance - Total revenues for Q3 2025 reached $56.0 million, a 13% increase from $49.7 million in Q3 2024. For the nine months ended September 30, 2025, revenues were $169.7 million, up 25% from $136.3 million in the same period last year [2][7]. - Gross profit for Q3 2025 was $17.8 million, reflecting a 95% increase from $9.1 million in Q3 2024. The gross profit margin improved to 32% from 18% year-over-year [2][8]. - Net income surged to $20.4 million, or $0.53 per diluted share, compared to $2.5 million, or $0.08 per diluted share, in Q3 2024. This included a $12.6 million tax benefit [2][10]. - Adjusted EBITDA increased by 142% to $11.7 million in Q3 2025, marking the twelfth consecutive quarter of growth [2][11]. Segment Performance - The Chemistry Technologies segment saw external revenues grow by 43% year-over-year, with total revenues for the segment increasing by 17% to $152.3 million for the nine months ended September 30, 2025 [5][18]. - The Data Analytics segment achieved a remarkable 232% revenue increase in Q3 2025, with service revenues growing 625% to $7.2 million, driven by the adoption of advanced analytics solutions [5][18]. Guidance and Outlook - Flotek has revised its 2025 guidance, increasing total revenue expectations to a range of $220-$225 million and Adjusted EBITDA to $35-$40 million, based on strong year-to-date performance [4][7]. Operational Highlights - The company reported a gross profit margin of 32% for Q3 2025, attributed to the high-margin Data Analytics revenue, which constituted 16% of total revenues, up from 5% in Q3 2024 [7][8]. - The acquisition of mobile gas conditioning assets contributed $6.1 million to Q3 2025 revenue, enhancing overall performance [7][12].