A Houston-based maker of specialty chemicals and real-time measurement tools for the oil and gas industry, Flotek helps producers cut costs and boost output, and has lately added mobile power generation to its lineup. Founded in 1985, it grew out of practical oilfield chemistry before expanding into optical-spectrometer data analytics. Its name blends "Flow" and "Technology" — fitting shorthand for a firm pairing fluid chemistry with digital monitoring.
Revenue more than doubled sequentially to $99.4M as new power-services contracts began contributing alongside ProFrac volumes.
Flotek's Data Analytics swung from a loss to a $12.3M , transforming the company's earnings profile in a single quarter. rose 70% to $99.4M and operating income reached $14.9M, driven by $10.5M from the ProFrac leaseback and $6.6M from a new utility support contract. The quarter's result depends on power-services contracts that carry severe third-party execution risk and an uncertain renewal timeline.
Key takeaways
Data Analytics reached $12.3M, compared to a $1.9M loss a year ago, as the Lease Agreement with ProFrac and a new Utility Support Contract added high-margin .
Consolidated rose 70% to $99.4M, with Data Analytics revenue more than tripling on $10.5M in Lease Agreement revenue and $6.6M from the Utility Support Contract.
Chemistry Technologies external grew 3% to $45.9M for the half, but fell $3.0M to $13.9M because high-margin Contract Shortfall Fees declined by $3.5M.
Section summaries
Management's Discussion and Analysis
Revenue surged 49% to $169.4M in H1 2026, driven by ProFrac volumes, new power contracts, and the Lease Agreement, lifting net income to $14.6M.
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Consolidated rose 49% to $169.4M for H1 2026, driven by higher ProFrac product volumes, a $10.5M increase from the Lease Agreement, and $6.6M from the new Utility Support Contract.
was negative $6.6M for the half despite $14.6M in , as consumed $35.8M — primarily a $44.1M increase in and a $16.6M build.
The company disclosed that the Utility Support Contract has an initial six-month term, power generation is already paused by infrastructure delays, and extension is uncertain.
A 10-year contract with PREPA was awarded with a potential $400M , but approximately 90% of the 400 MW project's capacity depends on third-party execution.
What changed
Q2 2025 flagged Data Analytics loss trajectory to watch as PWRtek transaction costs phased out: the segment swung to a $12.3M in Q2 2026, up from a $1.9M loss a year earlier, as rental income scaled and transaction costs ended.
Q1 2026 noted the utilities infrastructure support contract deployment as a watch item: the contract contributed $6.6M in in Q2 2026, but the filing now discloses power generation is paused by infrastructure delays and the six-month term creates renewal uncertainty.
Q1 2026 flagged and ABL drawdown against $5.7M cash: operating cash flow was negative $6.6M for the half, cash fell to $4.4M, and consumed $35.8M, intensifying liquidity pressure.
The earlier expectation of ~$27.0M in full-year 2026 Data Analytics Lease Agreement remains in place, but the new risk factors warn that power-services revenue depends on third-party performance and contract renewal outside the company's control.
What to watch
Q3 2026 Data Analytics and to see if the Utility Support Contract resumes power generation or if the pause extends beyond the initial six-month term.
Collection and aging of after the $44.1M half-year build, and whether turns positive as those receivables convert.
Cash balance and ABL drawdown against $4.4M cash as the $40M PWRtek note adds interest obligations and continues to absorb cash.
Progress on the PREPA contract's third-party capacity arrangements, given that 90% of the 400 MW project depends on external execution.
Data Analytics jumped 245% in H1 2026, fueled by the Lease Agreement and Utility Support Contract, swinging to a $16.3M from a $2.0M loss.
Chemistry Technologies external grew 3% to $45.9M, but fell $3.0M to $13.9M due to a $3.5M decrease in high-margin .
Consolidated dipped slightly to 23.2% from 23.6%, as cost of sales rose 50% on higher product volumes and costs tied to the Lease and Utility Support agreements.
Cash used in operations was $6.6M despite $14.6M in , as consumed $35.8M, primarily from a $44.1M increase in and a $16.6M build.
The company expects full-year 2026 DA from the Lease Agreement alone to be ~$27.0M and was awarded a 10-year PREPA contract with a potential $400M revenue .
Quantitative and Qualitative Disclosures About Market Risk
The Company is primarily exposed to market risk from changes in interest rates, commodity prices, which could impact raw material prices and drilling and completion activity levels, freight costs and foreign currency exchange rates. Certain of these market risks could be impacte…
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The Company is primarily exposed to market risk from changes in interest rates, commodity prices, which could impact raw material prices and drilling and completion activity levels, freight costs and foreign currency exchange rates. Certain of these market risks could be impacted by the ongoing military conflicts in the Middle East. There have been no material changes to the quantitative or qualitative disclosures about market risk set forth in Part II, Item 7A “Quantitative and Qualitative Disclosures About Market Risk” of the 2025 Annual Report.
Except as described in Note 12, “Commitments and Contingencies” of the Notes to Unaudited Condensed Consolidated Financial Statements contained in Part I, Item 1, there have been no material changes in the legal proceedings as described in “Item 3. - Legal Proceedings” in the 20…
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Except as described in Note 12, “Commitments and Contingencies” of the Notes to Unaudited Condensed Consolidated Financial Statements contained in Part I, Item 1, there have been no material changes in the legal proceedings as described in “Item 3. - Legal Proceedings” in the 2025 Annual Report.
Newly disclosed power-services contracts face severe third-party execution risks that could prevent expected revenue from materializing.
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The PREPA Contract depends on third parties for ~90% of a 400 MW project's capacity and execution, so our hinges on their performance.
The Utility Support Contract has an initial six-month term, power generation is already paused by infrastructure delays, and extension is uncertain.
Both contracts are exposed to fuel supply, permitting, grid interconnection, third-party construction, and severe weather risks outside our control.
Power services is an emerging business with limited operating history, and expansion into data centers or grid power would add scaling and regulatory risks.