Flotek Industries Reports 37% Revenue Growth to $55.4 Million in Latest Quarter

Flotek Industries, Inc. reported significant financial growth in its latest quarterly filing, with total revenues for the three months ended March 31, 2025, reaching $55.4 million, a 37% increase from $40.4 million in the same period of 2024. The company's net income also saw a substantial rise, amounting to $5.4 million, compared to $1.6 million in the prior year. This growth was primarily driven by increased sales volumes from external customers and heightened activity under the ProFrac Agreement, despite a decrease in accrued Contract Shortfall Fees.

The company’s Chemistry Technologies (CT) segment was a key contributor to this performance, with external customer revenue soaring by 88% to $22.0 million, while related party revenue increased by 14% to $30.7 million. The Data Analytics (DA) segment also experienced growth, with external customer revenue rising 61% to $2.4 million. Overall, the CT segment's income from operations improved by $2.8 million, reflecting increased product volumes, while the DA segment reduced its loss from operations by $0.3 million.

Flotek's operational metrics indicate a solid foundation for future growth. The company reported cash and cash equivalents of $6.3 million as of March 31, 2025, up from $5.9 million at the end of 2024. Additionally, the company has entered into a significant acquisition agreement, acquiring mobile power generation assets for $105 million, which includes a combination of cash offsets and a secured promissory note. This acquisition is expected to enhance the company's capabilities in the DA segment and is anticipated to contribute positively to future financial results.

The company’s strategic focus remains on leveraging its advanced technology and chemistry solutions to meet the evolving demands of the energy sector. Flotek anticipates stable demand for its products throughout 2025, driven by ongoing growth in natural gas exports and increased activity in key regions such as the Haynesville shale basin. The company is also committed to integrating its CT and DA segments to drive innovation and operational efficiencies, positioning itself for continued success in a cyclical industry.

Looking ahead, Flotek acknowledges the inherent risks associated with the oil and gas market, including fluctuating commodity prices and potential impacts from trade policies. However, the company remains optimistic about its growth trajectory, supported by strong customer commitments and a strategic focus on enhancing its product offerings and operational capabilities.