March 12, 2026 Q4 & Full Year 2025 Earnings Presentation Forward-Looking Statements Certain statements set forth in this presentation constitute forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) regarding Flotek Industries, Inc.'s business, financial condition, results of operations and prospects. Words such as will, continue, expects, anticipates, intends, plans, believes, seeks, estimates and similar expressi ...

Other non-GAAP financial measures used in this presentation are "replacement value", "liquidity", "return on invested capital", "senior secured debt" and "senior debt leverage". We believe these non-GAAP financial measures are commonly used by the investment community for valuation purposes and provide useful metrics common in our industry. "Replacement value" represents the cost to replace our fleet at market price for new equivalent equipment. 2025 Q4 EARNINGS PRESENTATION March 12, 2026 1 Forward-looking ...

Full-Year & Q4 2025 Results Non-GAAP Financial Measures Full-Year & Q4 2025 Results March 12, 2026 stoneridge.com © 2026 This presentation contains information about the Company's financial results that is not presented in accordance with accounting principles generally accepted in the United States ("GAAP"). Such non-GAAP financial measures are reconciled to their closest GAAP financial measures at the end of this presentation. The provision of these non-GAAP financial measures for 2025 and 2024 is not int ...

Financial Data and Key Metrics Changes - Total revenues reached a record high of $192.8 million, up 15% from the previous year [7] - Record net income increased by 22% year-over-year [7] - Adjusted EBITDA rose 18% to a record $88.7 million, with an adjusted EBITDA margin of 46% [35] - Cash flow from operations was a record $76 million, up 25% from the previous year [8] Business Line Data and Key Metrics Changes - Services revenue increased by 15% to $180.1 million, representing 93% of total revenue [31] - Professional services and other revenue, including hardware, rose 18% to $12.6 million [32] - Organic growth in services revenue was approximately 8% for the quarter, the strongest seen all year [32] Market Data and Key Metrics Changes - The company noted strength in global trade data and real-time visibility in shipment tracking, leveraging AI tools [9] - Strong e-commerce imports in the U.S. contributed positively to performance [10] Company Strategy and Development Direction - The company is focused on leveraging AI to enhance its service offerings and operational efficiency [22][24] - A tuck-in acquisition of U.K.-based OrderMine was completed to bolster e-commerce capabilities [10] - The company aims to maintain its competitive edge through its Global Logistics Network, which processes billions of transactions annually [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate geopolitical and economic uncertainties, emphasizing the value of their services in a volatile tariff environment [42][43] - The ongoing military conflict in the Middle East is impacting global trade, but the company remains optimistic about its resilience and adaptability [46][47] Other Important Information - The company ended the year with $356 million in cash and was debt-free, with an undrawn $350 million line of credit [8][38] - The company has a normal course issuer bid allowing for the purchase of up to 8.6 million shares [9] Q&A Session Summary Question: Insights on AI use cases and customer deployment - Management highlighted the ability to use AI to proactively address shipment issues, potentially saving customers significant time and costs [51][55] Question: Implications of global trade complexities - Management noted that while complexities can disrupt supply chains, they often lead to increased bookings and utilization of the company's services [57][59] Question: Capital allocation strategy - The company is positioned to capitalize on potential acquisition opportunities, especially in a market where valuations may be lower [64][66]

Financial Data and Key Metrics Changes - The company reported record quarterly revenues of $192.8 million, up 15% from $167.5 million in Q4 of the previous year [31] - Record net income increased by 22% from the previous year [7] - Adjusted EBITDA reached a record $88.7 million, representing an 18.3% increase from $75.0 million in Q4 last year [35] - For the fiscal year, total revenues were $729 million, up 12% from $651 million [33] - Cash flow from operations was a record $266.2 million, up 21% from $219.3 million last year [36] Business Line Data and Key Metrics Changes - Services revenue for Q4 was $180.1 million, up 15% from $156.5 million last year, representing 93% of total revenue [31] - Organic growth in services revenue was approximately 8% for Q4, the strongest growth seen all year [32] - Professional services and other revenue, including hardware, increased by 18% to $12.6 million [32] Market Data and Key Metrics Changes - The company noted strength in global trade data and real-time visibility in shipment tracking, leveraging AI tools [9] - E-commerce imports in the U.S. were strong, benefiting the company due to its leading solutions for high-volume rapid customer clearances [10] Company Strategy and Development Direction - The company is focused on leveraging AI technologies to enhance its service offerings and operational efficiency [22][29] - A tuck-in acquisition of U.K.-based OrderMine was completed to enhance e-commerce capabilities [10] - The company aims to maintain its competitive edge by providing a comprehensive service that includes security, compliance, and operational support [13][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business's performance and the opportunities presented by AI technologies [30] - The ongoing geopolitical and economic uncertainties, including tariffs and military conflicts, were acknowledged as challenges impacting global trade [42][46] - The company is preparing for potential fluctuations in the operating environment and is focused on maintaining strong cash flow and capitalizing on acquisition opportunities [39][66] Other Important Information - The company ended the year with $356 million in cash and was debt-free, with an undrawn $350 million line of credit [8] - The management team is transitioning, with Ed Gardner set to take over as CFO [30] Q&A Session Summary Question: Insights on AI use cases and customer deployment - Management highlighted the ability to use AI to proactively address shipment issues, potentially saving customers significant time and costs [51][54] Question: Impact of global trade complexity on business - Management noted that disruptions often lead to increased bookings and usage of their services as customers navigate complexities [57][60] Question: Capital allocation strategy - The company is well-positioned to pursue acquisitions, especially as market conditions may allow for lower purchase prices [64][66] - Management emphasized the importance of maintaining a strong cash position to capitalize on opportunities [66][68] Question: Professional services and GroundCloud business outlook - Management expressed optimism about the GroundCloud business as companies increasingly outsource drivers, presenting growth opportunities [71]

Financial Data and Key Metrics Changes - Total revenues reached a record high of $192.8 million, up 15% from $167.5 million a year ago [6][30] - Record net income increased by 22% from the previous year [6][34] - Adjusted EBITDA was at a record $88.7 million, up 18.3% from $75.0 million in the same quarter last year, with an adjusted EBITDA margin of 46% [6][33] - For the fiscal year, revenues were $729 million, up 12% from $651 million, with service revenues at $677.2 million, representing 93% of total revenue [7][31] Business Line Data and Key Metrics Changes - Services revenue increased by 15% to $180.1 million, representing 93% of total revenue for Q4 [30] - Professional services and other revenue, including hardware, rose to $12.6 million, up 18% from $10.7 million in Q4 last year [30] Market Data and Key Metrics Changes - The company noted strong e-commerce imports in the U.S., benefiting from its leading solutions for high-volume rapid customer clearances [8][9] - The ongoing geopolitical and tariff uncertainties are impacting customer decision-making and trade exposure [41][42] Company Strategy and Development Direction - The company is focusing on leveraging AI technologies to enhance its service offerings and operational efficiency [10][19] - A tuck-in acquisition of U.K.-based OrderMine was completed to enhance e-commerce capabilities [9] - The company aims to maintain its competitive edge through its Global Logistics Network, which is critical for processing billions of transactions annually [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate geopolitical uncertainties and tariff complexities, emphasizing the importance of their global trade management solutions [41][42] - The company anticipates continued strong operating cash flow conversion and is well-capitalized for future investments [38][37] Other Important Information - The company ended the year with $356 million in cash and was debt-free, with an undrawn $350 million line of credit [7][37] - The management team is transitioning, with Ed Gardner set to become the new CFO [28][29] Q&A Session Summary Question: Insights on AI use cases and customer deployment - The company highlighted the ability of AI to proactively address shipment issues, potentially saving customers significant time and costs [52][56] Question: Impact of global trade complexity on business - Management noted that disruptions often lead to increased bookings as customers seek solutions through their network, which could benefit the company [58][61] Question: Capital allocation strategy - The company is positioned to capitalize on potential acquisition opportunities, especially in a market where valuations may be lower [66][70]

Financial Data and Key Metrics Changes - Fourth quarter revenue was $46.4 million, a decrease of 6.9% compared to the same quarter in 2024 [12] - Procedure revenue declined 13% to $31.8 million, while dietary supplement revenue grew 16% to $11.7 million [12][13] - Gross profit margin was 68.0%, down from 71.8%, primarily due to a $1.3 million charge related to a voluntary recall [14] - Net income for the fourth quarter was $2.6 million, with diluted earnings per share of $0.06, compared to $3.5 million and $0.10 in the previous year [15] - Adjusted EBITDA decreased to $11.7 million with an adjusted EBITDA margin of 25.2%, down from $15.1 million and 30.3% [16] Business Line Data and Key Metrics Changes - Procedure revenue was primarily impacted by a lower number of net new clinic additions and lower procedure volume [12] - Dietary supplement revenue growth was driven by the continued expansion of the e-commerce channel [13] - The company anticipates dietary supplement revenue to grow at a mid to high-single-digit rate in 2026 [14] Market Data and Key Metrics Changes - The company ended 2025 with over 90 salespeople, up from approximately 60 at the time of the sales reorganization [8] - The number of new Biote certified practitioners is a leading indicator of future procedure growth, with training sessions at full capacity [8] Company Strategy and Development Direction - The company aims to prioritize and accelerate new clinic growth, maximize value from existing top-tier clinics, and strengthen accountability and discipline throughout the organization [6][9] - In 2026, the company plans to expand its sales personnel from over 90 to approximately 120 and invest in technology to enhance the practitioner journey [10][11] - The company is focused on operational excellence and improving internal processes to drive sustainable growth in the hormone replacement and therapeutic wellness market [9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about re-accelerating procedure revenue growth and scaling the business with greater efficiency [9] - The company anticipates a decrease in procedure revenue in the first half of 2026, with a return to growth expected in the second half [17] - Planned investments in sales and technology capabilities are expected to impact adjusted EBITDA in 2026 but are seen as essential for long-term growth [11][17] Other Important Information - The company is working closely with the FDA regarding a voluntary recall and has received positive feedback on its communication and handling of the situation [22] - The company is monitoring the impacts of the recall on its operations and customer relationships [30][50] Q&A Session Summary Question: Impact of FDA's removal of black box warnings for certain HRTs - Management views the removal as a positive tailwind, recognizing hormone optimization as a beneficial option for patients [21] Question: Details on procedure revenue growth and competitive environment - The decline in procedure revenue is attributed to higher attrition rates and lower volumes, with expectations for growth in the second half of 2026 [25][32] Question: EBITDA guidance and investment impacts - The anticipated decline in EBITDA is primarily due to investments in sales personnel and technology, aimed at driving future growth [34][39] Question: Areas of focus for technology platform improvements - The company is enhancing the practitioner experience through system improvements, both internally and with external support [44][47] Question: Timeline for ramping up Asteria production post-recall - The company aims to return to previous production levels as soon as possible, with ongoing monitoring of inventory levels [53][58]

Financial Data and Key Metrics Changes - In 2025, net sales totaled $1 billion, with a gross margin expansion of 380 basis points to 55.9% and a reduction in SG&A by over $100 million, resulting in a positive adjusted operating income of $11 million, an improvement of $48 million year-over-year [5][25][30] - Q4 net sales were $274 million, reflecting a decline of 20%, impacted by store closures [25] - Full year gross margin for 2025 was 55.9%, representing 380 basis points of expansion versus 2024, despite challenges from minimum royalty guarantee shortfalls [26] Business Line Data and Key Metrics Changes - The wholesale traditional watch business grew by 2% globally for the full year in 2025, driven by core brands like Michael Kors, Emporio Armani Exchange, and Diesel [7] - The company successfully established a full price selling model, improving profitability in both wholesale and direct-to-consumer channels [6] Market Data and Key Metrics Changes - The company is focusing on priority markets, particularly the U.S. and India, where it has seen strong growth and momentum [19] - India is highlighted as a significant strategic market, being the fastest growing large economy, with strong category leadership and growth across all channels [19] Company Strategy and Development Direction - The company is evolving its strategic pillars to focus on returning to profitable growth, optimizing the operating model, and building shareholder value [9][22] - Plans for 2026 include fueling innovation through design and technology, reviving key product lines, and enhancing consumer engagement through culturally relevant collaborations [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround strategy, noting that the company is well-positioned to leverage its foundational assets and is experiencing strong momentum across markets [8][9] - The company anticipates a return to top-line growth in the fourth quarter of 2026, supported by a robust pipeline of innovation and improved consumer engagement [23][35] Other Important Information - The company ended 2025 with $96 million in cash and cash equivalents and a significant reduction in inventory levels, down 15% from the previous year [31] - Management acknowledged the current geopolitical climate and its potential impact on operations, particularly in the Middle East [24] Q&A Session Summary Question: What were the drivers of gross margin in the quarter, and what gives you confidence the improvements are sustainable? - Management highlighted the shift to a full price selling model and improved relationships with partners as key drivers of gross margin improvements, with confidence in sustainability due to renegotiated minimum guarantees for 2026 [38][40] Question: What gives you confidence you'll be able to achieve a return to growth in the fourth quarter of 2026? - Management emphasized the transformation over the last 18 months, strong consumer relationships, and a robust product pipeline as factors supporting confidence in achieving growth [41][42] Question: What more can you do to improve the cost structure? - Management indicated ongoing evaluations for continuous improvement, focusing on operational efficiencies and leveraging technology for better performance [43][45] Question: Can you elaborate on deepening consumer engagement? - Management noted that while marketing spend may decrease, the focus will be on optimizing existing marketing efforts and enhancing product storytelling to drive engagement [50][54] Question: How do you view the sequencing of your strategic pillars? - Management clarified that the pillars are interdependent, with a flywheel effect expected as improvements in one area support growth in others [55][57] Question: How has the conversation with wholesale partners evolved? - Management reported positive feedback from wholesale partners, noting improved relationships and increased interest in product offerings due to the company's consistent performance [61][62]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 increased by 22% year-over-year to $110.1 million, exceeding the high end of guidance by 5% [36] - Contribution ex-TAC for Q4 totaled $64.6 million, up 19% year-over-year, also above guidance [36] - For the full year 2025, revenue totaled $344.2 million, increasing 19% year-over-year, while adjusted EBITDA increased by 29% to $57.4 million [35][36] - Adjusted EBITDA margin expanded nearly 250 basis points year-over-year to reach 28% [36] Business Line Data and Key Metrics Changes - CTV spend on the platform reached a record high, accounting for 46% of total advertiser spend in Q4 [38] - Contribution ex-TAC from CTV increased by more than 40%, significantly outpacing broader industry growth [12] - Revenue attached to IRIS_ID utilization increased by 90% sequentially in Q4 [15] Market Data and Key Metrics Changes - Customer-directed purchasing across emerging digital channels represented approximately 54% of total platform spend for the year, up from 51% in 2024 [39] - Total advertising dollars in the U.S. are expected to reach nearly $450 billion in 2026, with 70% allocated to performance budgets [24] Company Strategy and Development Direction - The company aims to capitalize on the migration of advertising dollars from linear television to CTV, positioning itself as a leader in this space [11] - The launch of Outcomes, an AI decisioning solution, is designed to compete for performance budgets against larger platforms [21] - The company is expanding its enterprise sales team to secure new flagship accounts and drive organic growth [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a healthy ad environment and anticipated significant ramp-up in ad spend from new customers like Molson Coors and WHOOP [9][43] - The company expects contribution ex-TAC growth to continue outpacing the broader U.S. programmatic market, projected to grow approximately 13% [44] - Management highlighted the importance of proprietary data and AI capabilities in driving competitive advantage and sustainable growth [66] Other Important Information - The company ended Q4 with $191.2 million in cash and cash equivalents and no debt, indicating a strong financial position [42] - The share repurchase program has returned $59.6 million to shareholders since its launch [42] Q&A Session Summary Question: What drives the upward swing in growth expectations for 2026? - Management noted limited contribution from new customers in Q1, with expectations for significant ramp-up in Q2 as they begin to spend more [47] Question: How is the late-stage deal pipeline progressing? - The company has invested in building out its enterprise sales team, which is expected to replenish the sales pipeline and improve win rates against larger competitors [52] Question: Can a smaller company sustain growth against larger competitors? - Management believes proprietary data and performance capabilities provide a sustainable competitive advantage, allowing the company to outperform larger platforms [66] Question: What is the future outlook for IRIS_ID adoption? - Management expects continued growth in IRIS_ID utilization, projecting reasonable penetration to reach 70% this year [62]

Financial Data and Key Metrics Changes - The ending ARR for Q4 was $13.7 million, down from $20 million in Q4 last year, primarily due to the loss of two large customer contracts [26] - Total revenue for Q4 was $8.9 million, an increase of $200,000 or 3% from $8.7 million in Q4 last year [29] - Subscription revenue accounted for 60% of total revenue for the quarter, increasing 6% from $5 million to $5.3 million [29] - Non-GAAP net income per diluted share for the quarter was $0.05 compared to a non-GAAP net loss of $0.22 in Q4 last year [33] Business Line Data and Key Metrics Changes - ARR from the anti-counterfeiting solution continues to grow, driven by customer upsells and new customer wins [16] - The company secured an upsell with an existing customer to expand their use of the anti-counterfeiting solution to authenticate tax stamps [17] - The Secure Gift Card solution achieved its first commercial order representing over $500,000 in ARR [12] Market Data and Key Metrics Changes - The U.S. serviceable addressable market for the Secure Gift Card solution is estimated at 3 billion to 5 billion cards annually, with a global SAM of 7.5 billion to 17 billion cards [9] - The company expects significant adoption of the Secure Gift Card solution by holiday 2026, with initial rollouts planned with major retailers [10][12] Company Strategy and Development Direction - The company is focused on building a trust layer for the modern world, addressing the increasing need for trust and authenticity in the wake of AI advancements [7][38] - The strategic focus areas include retail loss prevention, product authentication, and digital trust and integrity, with a commitment to selectively engage in other opportunities that represent low distraction revenue [6][39] - The company aims to capitalize on the convergence of key trends driving demand for its solutions, positioning itself to benefit from the advancements in AI [39] Management's Comments on Operating Environment and Future Outlook - Management highlighted the creation of a trust vacuum due to the acceleration of AI models, emphasizing the importance of trust as a currency [7][38] - The company expects to generate significant ARR growth in 2026, with the Secure Gift Card solution being the largest driver [26][41] - Management expressed confidence in the company's ability to address large problems outside current focus areas when market conditions are favorable [40] Other Important Information - The company ended the year with just under $13 million in cash and investments and no debt [6] - Positive free cash flow of $700,000 was generated in Q4, an improvement of $5.1 million compared to negative free cash flow of $4.4 million in Q4 last year [34] Q&A Session Summary Question: Technical difficulties during the call - The company experienced technical issues with the conference call service, preventing a Q&A session from occurring [42][43]