Flotek Industries, Inc. reported significant financial growth in its fiscal year ending December 31, 2025, with total revenues reaching $237.3 million, a 27% increase from $187.0 million in 2024. The company's net income also saw a substantial rise, amounting to $30.5 million compared to $10.5 million in the previous year. This growth was primarily driven by increased sales in both external and related party transactions, particularly under the ProFrac Agreement, which accounted for 62% of total revenues. The company also generated $16.1 million in rental revenue from its newly acquired assets, contributing to the overall revenue increase.
Flotek's operational performance improved markedly, with gross profit rising to $59.8 million, reflecting a gross profit margin of 25.2%, up from 21.1% in 2024. The cost of sales increased by 20% to $177.4 million, attributed to higher material and service costs. Selling, general, and administrative expenses rose by 14% to $28.0 million, driven by increased salaries and stock compensation expenses. The company also incurred $4.4 million in asset acquisition expenses related to its acquisition of mobile power generation assets from ProFrac, which were completed during the year.
Strategically, Flotek made significant moves, including the acquisition of mobile power generation assets for $107.5 million, which included a combination of cash, a promissory note, and a warrant for common stock. This acquisition is expected to enhance the company's capabilities in providing power generation solutions, particularly in the utility infrastructure sector. Additionally, Flotek secured a contract to deliver power services for utilities infrastructure support, with the potential to install up to 50 megawatts of power generation equipment.
Operationally, Flotek's workforce consisted of approximately 160 employees as of December 31, 2025, with no employees covered by collective bargaining agreements. The company reported a total recordable incident rate of 0.00 for the year, indicating a strong commitment to health and safety. The company also noted a significant increase in accounts receivable from related parties, totaling $64.2 million, reflecting the ongoing reliance on ProFrac for revenue generation.
Looking ahead, Flotek anticipates stable demand for its products and services, particularly in the Chemistry Technologies and Data Analytics segments, driven by ongoing market conditions and customer commitments. The company is focused on leveraging its recent acquisitions and expanding its service offerings to capitalize on growth opportunities in both domestic and international markets. However, Flotek remains cautious about potential risks associated with the cyclical nature of the oil and gas industry, including commodity price fluctuations and regulatory changes that could impact its operations and financial performance.
About FLOTEK INDUSTRIES INC/CN/
Flotek Industries creates specialty chemicals and data analytics solutions for the energy sector, focusing on environmentally sustainable products that enhance operational efficiency and reduce environmental impact. Its segments include Chemistry Technologies, providing green chemistry solutions, and Data Analytics, offering real-time measurement systems. Serving oil, gas, geothermal, and renewable markets globally, Flotek leverages innovation, proprietary IP, and strategic partnerships to support energy producers' sustainability and performance goals.
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