Overview

* Flotek Q2 revenue grows 26%, beating analyst expectations, per LSEG data

* Adjusted EBITDA for Q2 beats consensus, marking 11th consecutive qtr of growth

* Data Analytics segment revenue up 189%, boosting overall profitability

Outlook

* Flotek maintains 2025 revenue guidance between $200 mln and $220 mln

* Company expects 2025 adjusted EBITDA between $34 mln and $39 mln

* Flotek anticipates $15 mln high-margin rental revenue from acquired assets in 2025

* Company expects Q3 asset acquisition revenue to exceed Q2

Result Drivers

* DATA ANALYTICS GROWTH - 189% revenue increase driven by asset acquisition and expansion into power generation market

* CHEMISTRY TECHNOLOGIES - 38% growth in external customer chemistry revenues despite decline in North American frac fleets

* GROSS PROFIT MARGIN - 500 basis point improvement due to higher-margin service offerings from Data Analytics

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $58.35 $53 mln

Revenue mln (4

Analysts

)

Q2 Net $1.77

Income mln

Q2 Beat $9.45 $7.74

Adjusted mln mln (4

EBITDA Analysts

)

Q2 Gross $14.41

Profit mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the specialty chemicals peer group is "buy"

* Wall Street's median 12-month price target for Flotek Industries Inc ( FTK ) is $17.00, about 31.2% above its August 4 closing price of $11.69

* The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)