Flowco Holdings Reports 188% Revenue Growth to $192.4 Million in Q1 2025

Flowco Holdings Inc. reported significant financial growth in its latest quarterly filing, with total revenues reaching $192.4 million for the three months ended March 31, 2025, a substantial increase of 188% compared to $66.7 million in the same period last year. This growth was driven by a 111% rise in rental revenues, which totaled $97.3 million, and a remarkable 363% increase in sales revenues, amounting to $95.1 million. The company attributed this surge primarily to the integration of new revenue streams from its recent acquisitions, particularly in the Natural Gas Technologies segment, which included the addition of vapor recovery units (VRUs) and downhole components.

In terms of profitability, Flowco Holdings reported a net income of $27.0 million, or $0.24 per share, for the first quarter of 2025, compared to $17.2 million in the prior year. The increase in net income was supported by a 59% rise in income from operations, which reached $35.3 million, up from $22.2 million in the previous year. However, the company also experienced a significant rise in operating expenses, which increased to $157.0 million from $44.5 million, largely due to higher costs associated with the expanded operations and the integration of new business units.

Flowco Holdings has undergone substantial strategic developments, including the completion of its initial public offering (IPO) on January 15, 2025, which raised approximately $461.8 million in net proceeds. The funds were primarily used to purchase newly issued LLC interests from Flowco LLC and to repay existing debt. The company also completed a business combination in June 2024, acquiring 100% of the membership interests of Estis Intermediate, Flowco Productions, and Flogistix Intermediate, which has significantly expanded its operational capacity and market presence.

Operationally, Flowco Holdings reported an increase in its fleet size, operating over 4,400 active systems as of March 31, 2025. The company noted a rise in average active systems from 1,416 in the previous year to 4,448, contributing to the increased rental revenue. The company also highlighted a decrease in average rental rates, which fell from $10,911 per unit to $7,303 per unit, reflecting the impact of the new VRUs added to the fleet. The company’s geographic footprint has expanded, with major service facilities located in key oil and gas regions across the United States.

Looking ahead, Flowco Holdings remains cautiously optimistic about its growth trajectory, despite potential macroeconomic challenges, including trade policy uncertainties and fluctuating oil prices. The company plans to leverage its integrated product offerings and technological advancements to meet the evolving demands of the oil and gas industry. Management emphasized the importance of maintaining operational efficiency and cost management to navigate the competitive landscape and sustain long-term growth.