Overview

* Flotek Q3 revenue grew 13% yr/yr, beating analyst expectations

* Gross profit rose 95% yr/yr, driven by Data Analytics segment growth

* Company raises 2025 revenue guidance to $220-$225 mln

Outlook

* Flotek raises 2025 revenue guidance to $220-$225 mln from $200-$220 mln

* Company increases 2025 adjusted EBITDA guidance to $35-$40 mln

Result Drivers

* DATA ANALYTICS GROWTH - Data Analytics segment revenue increased 232%, driven by $6.1 mln from acquired assets

* CHEMISTRY TECHNOLOGIES DEMAND - Strong demand for chemical solutions drove 43% growth in external revenue despite a decline in frac fleets

* GROSS PROFIT IMPROVEMENT - Gross profit margin rose to 32% from 18% due to high-margin Data Analytics revenue and reduced related party sales

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $56.03 $53.55

Revenue mln mln (4

Analysts

)

Q3 Net $20.35

Income mln

Q3 Gross $17.78

Profit mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "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 $18.00, about 3.6% above its November 3 closing price of $17.35

* The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release:

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(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.)