$FTK

FLOTEK INDUSTRIES INC/CN/

CIK:0000928054|SEC Filings

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue:
Total revenues	$ 99,367	$ 58,350	$ 169,418	$ 113,712
Cost of sales	75,584	43,943	130,094	86,856
Gross profit	23,783	14,407	39,324	26,856
Operating costs and expenses:
Selling, general, and administrative	7,736	6,796	14,661	13,078
Asset acquisition expenses	0	4,195	0	4,195
Depreciation	664	374	1,295	626
Research and development	497	455	893	810
Gain on sale of property and equipment	0	0	0	(7)
Total operating costs and expenses	8,897	11,820	16,849	18,702
Income from operations	14,886	2,587	22,475	8,154
Other expense:
Interest expense	(1,371)	(983)	(2,703)	(1,212)
Other income, net	19	181	35	287
Total other expense	(1,352)	(802)	(2,668)	(925)
Income before income taxes	13,534	1,785	19,807	7,229
Income tax expense	(3,581)	(17)	(5,190)	(81)
Net income	$ 9,953	$ 1,768	$ 14,617	$ 7,148
Income per common share:
Basic (in dollars per share)	$ 0.28	$ 0.05	$ 0.40	$ 0.22
Diluted (in dollars per share)	$ 0.26	$ 0.05	$ 0.38	$ 0.21
Weighted average common shares:
Weighted average common shares used in computing basic income per common share (in shares)	36,151	33,947	36,126	31,827
Weighted average common shares used in computing diluted income per common share (in shares)	38,472	36,231	38,409	34,026
Nonrelated Party
Revenue:
Total revenues	$ 43,225	$ 25,182	$ 61,390	$ 49,605
Cost of sales	33,324	21,658	47,880	43,318
Related Party
Revenue:
Total revenues	56,142	33,168	108,028	64,107
Cost of sales	$ 42,260	$ 22,285	$ 82,214	$ 43,538

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025	Dec. 31, 2025
Cash flows from operating activities:
Net income	$ 9,953	$ 1,768	$ 14,617	$ 7,148
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Change in fair value of contingent consideration			0	(127)
Amortization of contract assets			4,658	2,916
Depreciation	664	374	1,295	626
Amortization of deferred financing costs			189	157
Provision for credit losses, net of recoveries			197	261	$ 603
Provision for excess and obsolete inventory			1,089	250
Gain on sale of property and equipment	0	0	0	(7)
Non-cash lease expense			378	624
Stock compensation expense			2,033	1,137
Deferred income tax expense			4,742	16
Changes in current assets and liabilities:
Accounts receivable			(24,570)	(5,096)
Accounts receivable, related party			(19,486)	(2,532)
Inventories			(16,585)	1,448
Income tax receivable			20	(32)
Other assets			52	(155)
Accounts payable			26,233	(1,722)
Accrued liabilities			(1,080)	(1,893)
Operating lease liabilities			(686)	(935)
Income taxes payable			335	37
Interest payable, related party			(11)	701
Net cash (used in) provided by operating activities			(6,580)	2,822
Cash flows from investing activities:
Capital expenditures			(1,239)	(1,309)
Proceeds from sale of assets			0	7
Net cash used in investing activities			(1,239)	(1,302)
Cash flows from financing activities:
Payments on long term debt			0	(60)
Proceeds from asset-based loan			122,150	106,950
Payments on asset-based loan			(115,082)	(106,685)
Payments of asset-based loan origination costs			(8)	0
Payment of note payable issuance costs			0	(480)
Payment of stock warrant issuance costs			0	(456)
Proceeds from exercise of April 2025 Warrant			1	0
Payments to tax authorities for shares withheld from employees			(644)	(60)
Proceeds from issuance of stock under Employee Stock Purchase Plan			83	68
Proceeds from stock option exercises			8	8
Payments for finance leases			(75)	(25)
Net cash provided by (used in) financing activities			6,433	(740)
Effect of changes in exchange rates on cash and cash equivalents			57	(155)
Net change in cash and cash equivalents and restricted cash			(1,329)	625
Cash and cash equivalents at the beginning of the period			5,731	4,404	4,404
Restricted cash at the beginning of the period			104	102	102
Cash and cash equivalents and restricted cash at the beginning of the period			5,835	4,506	4,506
Cash and cash equivalents at the end of the period	4,402	5,028	4,402	5,028	5,731
Restricted cash at the end of the period	104	103	104	103	104
Cash and cash equivalents and restricted cash at the end of the period	$ 4,506	$ 5,131	$ 4,506	$ 5,131	$ 5,835

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 4,402	$ 5,731
Restricted cash	104	104
Equipment credit, related party	9,521	0
Inventories, net	26,626	10,629
Other current assets	3,273	3,445
Current contract asset	9,485	7,621
Total current assets	167,537	110,777
Long-term contract asset	48,593	55,115
Property and equipment, net	23,245	20,344
Right-of-use assets	2,705	3,083
Deferred tax assets, net	24,410	29,152
Other long-term assets	1,546	1,578
TOTAL ASSETS	268,036	220,049
Current liabilities:
Accounts payable	74,550	48,317
Accrued liabilities	6,121	7,256
Income taxes payable	593	258
Interest payable, related party	997	1,008
Current portion of operating lease liabilities	1,324	1,251
Current portion of finance lease liabilities	160	153
Asset-based loan	10,400	3,332
Total current liabilities	94,145	61,575
Deferred revenue, long-term	55	0
Note payable - related party, net of deferred financing costs	39,632	39,584
Long-term operating lease liabilities	4,849	5,608
Long-term finance lease liabilities	142	224
TOTAL LIABILITIES	138,823	106,991
Stockholders’ equity:
Preferred stock, $0.0001 par value, 100,000 shares authorized; no shares issued and outstanding	0	0
Common stock, $0.0001 par value, 240,000,000 shares authorized; 37,440,565 shares issued and 36,217,709 shares outstanding at June 30, 2026; 31,320,960 shares issued and 30,130,480 shares outstanding at December 31, 2025	4	3
Additional paid-in capital	437,088	434,964
Accumulated other comprehensive income	153	96
Accumulated deficit	(271,163)	(285,780)
Treasury stock, at cost; 1,222,856 and 1,190,480 shares at June 30, 2026 and December 31, 2025, respectively	(36,869)	(36,225)
Total stockholders’ equity	129,213	113,058
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	268,036	220,049
Third Party
Current assets:
Accounts Receivable	43,415	19,043
Related Party
Current assets:
Accounts Receivable	70,711	$ 64,204
Current liabilities:
Accrued liabilities	$ 0