Thu, May 8, 8:09 PM (10 days ago)
**Flotek Industries, Inc. (FTK) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $55.4M (up 37% YoY), driven by increased sales volumes from external customers and related party activity. - **Profit Margins:** Gross margin at 22.5%, operating margin at 10.1%, and net margin at 9.7%. - **Earnings:** Net income of $5.4M (up 243% YoY), EPS of $0.18 (basic) and $0.17 (diluted). - **Cash Flow:** Positive operating cash flow of $7.3M, with $6.3M in cash and cash equivalents. **Segment Performance:** - **Chemistry Technologies (CT):** Revenue up 88% YoY to $22M (external) and $30.7M (related party), income from operations up 46% to $8.9M. - **Data Analytics (DA):** Revenue up 61% YoY to $2.4M (external) and $0.2M (related party), loss from operations reduced by 71% to $0.1M. - **Corporate and Other:** Loss from operations decreased by 10% to $3.2M. **Key Trends & Uncertainties:** - **ProFrac Agreement:** Continued reliance on related party revenues, with $7.5M in Contract Shortfall Fees expected for Q1 2025. - **Asset Acquisition:** Recent acquisition of mobile power generation assets and related intellectual property, with financial results to be reported within the DA segment. - **Market Risks:** Exposure to changes in interest rates, raw material prices, freight costs, and foreign currency exchange rates. **Future Operations & Impact:** - **Outlook:** Stable demand for chemistry in 2025, with growth opportunities in the Haynesville shale basin and international markets. - **Data Analytics:** Growing trend in digital analytics, with Verax™ analyzers gaining traction in North American markets. - **Liquidity:** Sufficient cash and cash equivalents, cash generated from operating activities, and availability under the ABL to fund capital requirements and anticipated obligations.