Form 8-K - Current report

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

November 4, 2024

Date of Report (Date of earliest event reported)

Flotek Industries, Inc.

(Exact name of registrant as specified in its charter)

Delaware			001-13270			90-0023731
(State or Other Jurisdiction of Incorporation)			(Commission File Number)			(IRS Employer Identification No.)

5775 N. Sam Houston Parkway W., Suite 400 Houston, TX, 77086

(Address of principal executive office and zip code)

[phone]

(Registrant’s telephone number, including area code)

(Not applicable)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of Exchange on which registered
Common Stock, $0.0001 par value			FTK			NYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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Item 2.02			Results of Operations and Financial Condition

On November 4, 2024, the Company issued a press release providing its financial results for the quarter ended September 30, 2024 and announcing that it will hold a conference call to discuss its operating results. The press release is furnished herewith as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The information furnished pursuant to Item 2.02 of this Current Report on Form 8-K and in Exhibit 99.1 shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is not subject to the liabilities of that section and is not deemed incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly stated in such filing.

Item 7.01			Regulation FD Disclosure

On November 4, 2024, the Company provided on its website a presentation containing information relating to its current operations and financial results. A copy of the presentation is attached hereto as Exhibit 99.2 and is incorporated herein by reference.

The information furnished pursuant to Item 7.01 of this Current Report on 8-K and in Exhibit 99.2 shall not be deemed to be “filed” for the purposes of the Exchange Act, is not subject to the liabilities of that section and is not deemed incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly stated in such filing.

Item 9.01			Financial Statements and Exhibits.

d) Exhibits.

Exhibit Number						Description
99.1						Press Release dated November 4, 2024
99.2						Presentation of Flotek Industries, Inc.
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			FLOTEK INDUSTRIES, INC.
Date: November 4, 2024			/s/ Bond Clement
			Name:			Bond Clement
			Title:			Chief Financial Officer

Exhibit 99.1

                                        

Flotek Announces Increased 2024 Guidance, Improved Revenue, and Continued Profit Growth in Connection with Third Quarter 2024 Results

HOUSTON, November 4, 2024 - Flotek Industries, Inc. (“Flotek” or the “Company”) (NYSE: FTK) today announced operational and financial results for the quarter ended September 30, 2024, highlighted by significant improvement in profitability metrics as compared to the third quarter of 2023. Due to the strong results achieved through the first nine months of the year, the Company increased its 2024 profit guidance.

Financial Summary (in thousands, except ‘per share’ amounts)

			Three Months Ended September 30,												Nine Months Ended September 30,
			2024						2023						2024						2023
Total Revenues			$	49,742					$	47,268					$	136,267					$	145,870
Gross Profit			$	9,119					$	9,047					$	27,108					$	14,833
Adjusted Gross Profit (1)			$	10,695					$	10,264					$	31,421					$	18,005
Net Income			$	2,532					$	1,287					$	6,068					$	22,609
Diluted Income (Loss) Per Share			$	0.08					$	0.04					$	0.20					$	(0.18)
Adjusted EBITDA (1)			$	4,840					$	3,392					$	13,303					$	(2,464)

Third Quarter 2024 Highlights

•Generated total revenue of $49.7 million, a 5% increase from the third quarter of 2023, highlighted by a 58% year-over-year increase in Data Analytics revenues.

•Reduced SG&A by 12% from the third quarter of 2023 and by 9% sequentially from the second quarter of 2024.

•Reported net income of $2.5 million and adjusted EBITDA(1) of $4.8 million, representing a year-over-year increase of 97% and 43%, respectively.

•Reduced borrowings outstanding under the Asset Based Loan by 81% (or $6.1 million) compared to year-end 2023.

2024 Guidance: Stronger Profit Expectations

Based upon the Company’s strong year-to-date operational performance and the outlook for the fourth quarter, the Company is increasing its 2024 guidance. Flotek now expects adjusted EBITDA(2) to be in the range of $16.5 million to $18.5 million, up from the previous range of $14 million to $18 million. This represents a 9% increase to the midpoint of the range and a 35% increase when compared to the midpoint of the Company’s original 2024 guidance of $10 million to $16 million. In addition, the Company now expects its adjusted gross profit margin(2) for 2024 to be in the range of 20% to 22%, up from the original guidance of 18% to 22%.

Management Commentary

Chief Executive Officer Dr. Ryan Ezell commented, “We are pleased to report another quarter of outstanding safety, service quality and financial results. We continue to gain momentum and market share with the execution of our strategy, despite a challenging upstream market.

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Revenue from our Data Analytics segment grew 30% in the third quarter, a continuation of the strong growth of 22% in the second quarter. Our new upstream Data Analytics’ applications, including flare monitoring, were a catalyst for revenue growth this quarter. Following the EPA’s approval of our JP3 analyzer in mid-July, we recognized our first revenues from flare monitoring in August and September, which comprised 25% of total quarterly segment revenues. We expect to see further growth in flare monitoring revenues during the fourth quarter. Revenue from our chemistry segment increased 7% in the third quarter, a continuation of the growth in the prior quarter. Our persistent revenue growth in our chemistry segment, despite a declining frac fleet market, is clear evidence that we are gaining market share through our differentiated chemistry technology solutions.

In terms of profitability, adjusted EBITDA during the third quarter improved for the eighth consecutive quarter and, as a result, we are increasing our adjusted EBITDA guidance for the second time this year. Over the first nine months of 2024, we reported adjusted EBITDA of $13.3 million, as compared to ($2.5) million during the nine months ended September 30, 2023. This $15.8 million improvement reflects the continued positive trajectory of the Company and the hard work and dedication of the Flotek employees.”

Third Quarter 2024 Financial Results

•Revenue: Flotek reported total revenues of $49.7 million for the third quarter of 2024, which was an increase of $2.5 million, or 5% compared to the third quarter of 2023. Third quarter revenue increased 8% sequentially driven by a 7% sequential increase in Chemistry revenues and a 30% sequential increase in Data Analytics’ revenue. Data Analytics segment revenue totaled $2.7 million during the third quarter of 2024, of which 25% was attributed to Flotek’s new proprietary flare measurement application.

•Gross Profit: The Company generated gross profit of $9.1 million with a margin of 18% during the third quarter 2024, as compared to gross profit of $9.0 million with a margin of 19% for the third quarter 2023. Gross profit margin during the third quarter of 2024 was lower than the 2023 period as a result of a shift in chemistry product mix as well as lower revenue during the 2024 period related to the minimum chemistry purchase requirements contained in the Company’s long-term supply agreement. Partially offsetting these items was an increase in gross profit from the Company’s Data Analytics segment, which contributed $1.2 million to third quarter 2024 gross profit, a 46% increase from the year ago quarter.

•Adjusted Gross Profit (Non-GAAP)(1): Flotek generated adjusted gross profit of $10.7 million during the third quarter 2024 compared to adjusted gross profit of $10.3 million for the third quarter 2023. Adjusted gross profit excludes non-cash items, primarily amortization of contract assets.

•Selling, General and Administrative (“SG&A”) Expense: SG&A expense totaled $5.7 million for the third quarter 2024 compared to $6.5 million for the third quarter 2023. The improvement was the result of lower personnel costs and professional fee expenses during the 2024 period.

•Net Income and EPS: Flotek reported net income of $2.5 million, or $0.08 per diluted share, for the third quarter 2024. This compares to a net income of $1.3 million, or $0.04 per diluted share, for the third quarter 2023.

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•Adjusted EBITDA (Non-GAAP)(1): Adjusted EBITDA was $4.8 million in the third quarter 2024 as compared to $3.4 million in the third quarter 2023. Third quarter 2024 adjusted EBITDA marked the eighth consecutive quarter of improvement.

(1)A non-GAAP financial measure. See the “Unaudited Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings” section in this release for more information, including reconciliations to the most comparable GAAP measures.

(2)A non-GAAP financial measure. See the “Unaudited Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings” section in this release for more information, including reconciliations to the most comparable GAAP measures. We are unable to reconcile this forward-looking non-GAAP financial measure to the most directly comparable GAAP financial measure without unreasonable efforts, as we are unable to predict with a reasonable degree of certainty the impact of certain items that would be expected to impact the GAAP financial measure, including, among other items, the future amortization of our contract assets, certain stock-based compensation costs and the impact of the revaluation of certain liabilities, which is based upon our future stock price. These items do not impact the non-GAAP financial measure.

Conference Call Details

Flotek will host a conference call on November 5, 2024, at 9:00 a.m. CT (10:00 a.m. ET) to discuss its third quarter 2024 results. Participants may access the call through Flotek’s website at www.flotekind.com under “News” within the Investor Relations section, by telephone toll free at 1-800-836-8184 (international toll: 1-646-357-8785), or by using the following link to access the audience view of the webcast at https://app.webinar.net/7baorgbxmJ5 approximately five minutes prior to the start of the call. Following the conclusion of the conference call, a recording of the call will be available on the Company’s website.

An updated corporate presentation that will be referenced on the call will be posted to the Investor Relations section of Flotek’s website at www.flotekind.com prior to the start of the earnings conference call.

About Flotek Industries, Inc.

Flotek Industries, Inc. is a leading chemistry and data technology company focused on servicing the Energy industry. The Company’s top tier technologies leverage near real-time data to deliver innovative solutions to maximize customer returns. Flotek has an intellectual property portfolio of over 170 patents, 20+ years of field and laboratory data, and a global presence in more than 59 countries.

Flotek has established collaborative partnerships focused on sustainable and optimized chemistry and data solutions, aiming to reduce the environmental impact of energy on land, air, water and people.

Flotek is based in Houston, Texas and its common shares are traded on the New York Stock Exchange under the ticker symbol “FTK.” For additional information, please visit www.flotekind.com.

Forward-Looking Statements

Certain statements set forth in this press release constitute forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) regarding Flotek Industries, Inc.’s business, financial condition, results of operations and prospects. Words such as will, continue, expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this press release. Although forward-looking statements in this press release reflect the good faith judgment of management, such statements can only be based on facts and factors currently known to management. Consequently, forward-looking statements

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are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Further information about the risks and uncertainties that may impact the Company are set forth in the Company’s most recent filing with the Securities and Exchange Commission on Form 10-K (including, without limitation, in the “Risk Factors” section thereof), and in the Company’s other SEC filings and publicly available documents. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this press release.

Investor contact:

Mike Critelli

Director of Finance & Investor Relations

E: [e-mail]

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FLOTEK INDUSTRIES, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

			September 30, 2024						December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents			$	4,997					$	5,851
Restricted cash			101						102
Accounts receivable, net of allowance for credit losses of $388 and $745 at September 30, 2024 and December 31, 2023, respectively			12,220						13,687
Accounts receivable, related party, net of allowance for credit losses of $0 at each of September 30, 2024 and December 31, 2023, respectively			47,064						34,569
Inventories, net			12,744						12,838
Other current assets			2,687						3,564
Current contract asset			6,480						5,836
Total current assets			86,293						76,447
Long-term contract asset			63,835						68,820
Property and equipment, net			4,958						5,129
Operating lease right-of-use assets			3,759						5,030
Deferred tax assets, net			66						300
Other long-term assets			1,738						1,787
TOTAL ASSETS			$	160,649					$	157,513
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable			$	37,395					$	31,705
Accrued liabilities			4,115						5,890
Income taxes payable			54						45
Current portion of operating lease liabilities			1,642						2,449
Current portion of finance lease liabilities			—						22
Asset-based loan			1,426						7,492
Current portion of long-term debt			104						179
Total current liabilities			44,736						47,782
Deferred revenue, long-term			35						35
Long-term operating lease liabilities			6,871						7,676
Long-term debt			—						60
TOTAL LIABILITIES			51,642						55,553
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.0001 par value, 100,000 shares authorized; no shares issued and outstanding			—						—
Common stock, $0.0001 par value, 240,000,000 shares authorized; 30,891,597 shares issued and 29,789,476 shares outstanding at September 30, 2024; 30,772,837 shares issued and 29,664,130 shares outstanding at December 31, 2023			3						3
Additional paid-in capital			464,143						463,140
Accumulated other comprehensive income			133						127
Accumulated deficit			(320,738)						(326,806)
Treasury stock, at cost; 1,102,121 and 1,108,707 shares at September 30, 2024 and December 31, 2023, respectively			(34,534)						(34,504)
Total stockholders’ equity			109,007						101,960
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY			$	160,649					$	157,513

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FLOTEK INDUSTRIES, INC.

Unaudited Condensed Consolidated Statements of Operations

(in thousands, except per share data)

			Three Months Ended September 30,												Nine Months Ended September 30,
			2024						2023						2024						2023
Revenue:
Revenue from external customers			$	16,565					$	17,806					$	47,935					$	47,278
Revenue from related party			33,177						29,462						88,332						98,592
Total revenues			49,742						47,268						136,267						145,870
Cost of goods sold			40,623						38,221						109,159						131,037
Gross profit			9,119						9,047						27,108						14,833
Operating costs and expenses:
Selling, general, and administrative			5,714						6,526						18,056						21,303
Depreciation			220						181						662						530
Research and development			462						757						1,349						2,231
Severance costs			—						2						23						(28)
Gain on sale of property and equipment			—						(38)						(34)						(38)
Gain in fair value of Contract Consideration Convertible Notes Payable			—						—						—						(29,969)
Total operating costs and expenses			6,396						7,428						20,056						(5,971)
Income from operations			2,723						1,619						7,052						20,804
Other income (expense):
Paycheck protection plan loan forgiveness			—						—						—						4,522
Interest expense			(256)						(160)						(842)						(2,537)
Other income, net			102						(91)						151						(82)
Total other income (expense)			(154)						(251)						(691)						1,903
Income before income taxes			2,569						1,368						6,361						22,707
Income tax expense			(37)						(81)						(293)						(98)
Net income			$	2,532					$	1,287					$	6,068					$	22,609
Income (loss) per common share:
Basic			$	0.09					$	0.04					$	0.21					$	0.97
Diluted			$	0.08					$	0.04					$	0.20					$	(0.18)
Weighted average common shares:
Weighted average common shares used in computing basic income (loss) per common share			29,613						29,358						29,498						23,291
Weighted average common shares used in computing diluted income (loss) per common share			30,897						30,688						30,655						28,034

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FLOTEK INDUSTRIES, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

			Nine Months Ended September 30,
			2024						2023
Cash flows from operating activities:
Net income			$	6,068					$	22,609
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Change in fair value of contingent consideration			(46)						(384)
Change in fair value of Contract Consideration Convertible Notes Payable			—						(29,969)
Amortization of convertible note issuance costs			—						83
Payment-in-kind interest expense			—						2,284
Amortization of contract asset			4,341						3,665
Depreciation			662						530
Amortization of asset-based loan origination costs			243						36
Provision for credit losses, net of recoveries			121						97
Provision for excess and obsolete inventory			626						626
Gain on sale of property and equipment			(34)						(38)
Non-cash lease expense			1,661						2,316
Stock compensation expense			915						(565)
Deferred income tax expense			233						50
Paycheck protection plan loan forgiveness			—						(4,522)
Changes in current assets and liabilities:
Accounts receivable			1,346						3,472
Accounts receivable, related party			(12,495)						(2,082)
Inventories			(532)						(776)
Other assets			849						(863)
Accounts payable			5,690						60
Accrued liabilities			(1,730)						(3,179)
Operating lease liabilities			(2,002)						(2,636)
Income taxes payable			9						(54)
Interest payable			—						(8)
Net cash provided by (used in) operating activities			5,925						(9,248)

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FLOTEK INDUSTRIES, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(continued)

			Nine Months Ended September 30,
			2024						2023
Cash flows from investing activities:
Capital expenditures			(491)						(593)
Proceeds from sale of assets			34						68
Net cash used in investing activities			(457)						(525)
Cash flows from financing activities:
Payment for forfeited stock options			—						(617)
Payments on long term debt			(135)						(104)
Proceeds from asset-based loan			122,600						27,750
Payments on asset-based loan			(128,666)						(24,380)
Payment of asset-based loan origination costs			(164)						(502)
Payments to tax authorities for shares withheld from employees			(30)						(246)
Proceeds from issuance of stock			88						48
Payments for finance leases			(22)						(24)
Net cash (used in) provided by financing activities			(6,329)						1,925
Effect of changes in exchange rates on cash and cash equivalents			6						13
Net change in cash and cash equivalents and restricted cash			(855)						(7,835)
Cash and cash equivalents at the beginning of period			5,851						12,290
Restricted cash at the beginning of period			102						100
Cash and cash equivalents and restricted cash at beginning of period			5,953						12,390
Cash and cash equivalents at end of period			4,997						4,453
Restricted cash at the end of period			101						102
Cash and cash equivalents and restricted cash at end of period			$	5,098					$	4,555

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FLOTEK INDUSTRIES, INC.

Unaudited Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings

(in thousands)

			Three Months Ended September 30,												Nine Months Ended September 30,
			2024						2023						2024						2023
Gross profit			$	9,119					$	9,047					$	27,108					$	14,833
Stock compensation expense			3						2						9						(135)
Severance and retirement			—						—						9						26
Contingent liability revaluation			(19)						(61)						(46)						(384)
Amortization of contract asset			1,592						1,276						4,341						3,665
Adjusted Gross profit (Non-GAAP) (1)			$	10,695					$	10,264					$	31,421					$	18,005
Net income			$	2,532					$	1,287					$	6,068					$	22,609
Interest expense			256						160						842						2,537
Income tax expense			37						81						293						98
Depreciation and amortization			220						181						662						530
EBITDA (Non-GAAP) (1)			$	3,045					$	1,709					$	7,865					$	25,774
Stock compensation expense			272						268						915						(574)
Severance			—						2						32						(28)
Contingent liability revaluation			(19)						(61)						(46)						(384)
Gain on disposal of assets			—						(38)						(34)						(38)
PPP loan forgiveness			—						—						—						(4,522)
Contract Consideration Convertible Notes Payable revaluation adjustment			—						—						—						(29,969)
Amortization of contract asset			1,592						1,276						4,341						3,665
Non-Recurring professional fees			(50)						236						230						3,612
Adjusted EBITDA (Non-GAAP) (1)			$	4,840					$	3,392					$	13,303					$	(2,464)

(1) Management believes that adjusted gross profit, EBITDA and adjusted EBITDA for the three and nine months ended September 30, 2024 and 2023, are useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods. Management views the income and expenses noted above to be outside of the Company’s normal operating results. Management analyzes operating results without the impact of the above items as an indicator of performance, to identify underlying trends in the business and cash flow from continuing operations, and to establish financial and operational goals, excluding certain non-cash or non-recurring items.

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3rd Quarter 2024 Earnings Presentation November 2024

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Forward-Looking Statements Certain statements set forth in this presentation constitute forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) regarding Flotek Industries, Inc.’s business, financial condition, results of operations and prospects. Words such as will, continue, expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this presentation. Although forward-looking statements in this presentation reflect the good faith judgment of management, such statements can only be based on facts and factors currently known to management. Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Further information about the risks and uncertainties that may impact the Company are set forth in the Company’s most recent filing with the Securities and Exchange Commission on Form 10-K (including, without limitation, in the "Risk Factors" section thereof), and in the Company’s other SEC filings and publicly available documents. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this presentation. This presentation includes certain non-GAAP measures. Please refer to the reconciliations provided in the earnings press release and the appendix in this presentation for the most comparable GAAP measure. // 2

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// 3 8 Consecutive Quarters of Improved Adj. EBITDA* Strong Balance Sheet with Low Debt Data Analytics Technology with High ROI Long-term ‘Take or Pay’ Contract Insulates Risk Tangible Environmental, Health, &, Safety Impacts Flotek Industries CHEMISTRY AS A COMMON VALUE CREATION PLATFORM Value Creation through Chemistry & Data * Adjusted EBITDA is a non-GAAP measure. See the Appendix in this presentation for a reconciliation to the most comparable GAAP measure

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Complementary Segments Drive Growth // 4 Sustainable chemistry solutions to maximize customer’s value chain while minimizing their environmental impact Transforming business through real-time data, monitoring and visualization across the energy value chain utilizing proprietary technologies Chemistry Technologies Data Analytics CHEMISTRY AS A COMMON VALUE CREATION PLATFORM Founded: 1985 Employees: 143 Headquarters: Houston Countries with Clients: >59 Patents: >170 3Q 2024 Results: – Gross Profit Margin: 18% – Net Income ($MM): $2.5 – Adj. EBITDA* ($MM): $4.8 – Adj. EBITDA Margin: 10% – Debt to Adj. EBITDA*(TTM**) 0.1X * Adjusted EBITDA is a non-GAAP measure. See the Appendix in this presentation for a reconciliation to the most comparable GAAP measure ** Trailing Twelve Months

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• Delivered year-over-year Improvements: Revenue: 5% SG&A: 12% Net income: 97% Adj. EBITDA*: 43% 3Q 2024 Highlights // 5 • Increased FY24 adj. EBITDA** guidance range to $16.5MM to $18.5MM • Mid-point of new guidance represents a 35% increase from mid-point of original guidance • SG&A continues to trend down with lower personnel costs and professional fees • Borrowings outstanding under ABL reduced by 75% during 3Q24 • Debt to TTM adj. EBITDA* falls below 0.1X at 9/30/24 • Initial sales related to flare monitoring made up 25% of 3Q24 Data Analytics ("DA") revenues, of which 86% closed in September IMPROVED PROFIT AND REVENUE WITH LOWER NORTH AMERICAN FRAC FLEET COUNT * Adjusted EBITDA is a non-GAAP measure. See the Appendix in this presentation for a reconciliation to the most comparable GAAP measure ** We are unable to reconcile this forward-looking non-GAAP financial measure to the most directly comparable GAAP financial measure without unreasonable efforts, as we are unable to predict with a reasonable degree of certainty the impact of certain items that would be expected to impact the GAAP financial measure, including, among other items, the future amortization of our contract assets, certain stock-based compensation costs and the impact of the revaluation of certain liabilities, which is based upon our future stock price. These items do not impact the non-GAAP financial measure.

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Chemistry Growth in a Contracting Market // 6 • Chemistry revenues up 7% sequentially with North America Active frac fleet counts down 8% • Related party chemistry revenues up 19% during 3Q24 • External chemistry revenues up 3% through the first nine months of 2024 vs 2023 period CHEMISTRY SEGMENT CONTINUES TO GAIN MARKET SHARE $38.7 $44.1 $47.1 255 253 233 200 225 250 275 $35 $40 $45 $50 1Q24 2Q24 3Q24 N o rt h A m er ic a A ve ra ge F ra c Fl ee ts R ev en u e (i n $ M M ’s ) Total Chemistry Revenue Revenue Avg. Fleet Count -All Frac Fleet data is derived from AOGR avgs.

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Data Analytics Revenue Growth // 7 • DA segment generated $1.2MM in gross profit during 3Q24, an 88% increase from 2Q24 • 25% of 3Q24 segment revenues were from the new JP3 flare monitoring solutions • As of September 30th, the Company had completed 15 flare tests JP3 VERACAL FLARE APPLICATION BOLSTERS DATA ANALYTICS REVENUE IN 3Q24 $1.0 $1.3 $1.7 $0.7 $0.7 $1.0 25% 30% 44% 0% 10% 20% 30% 40% 50% $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 1Q24 2Q24 3Q24 G ro ss M ar gi n % R ev en u e (i n $ M M ’s ) CapEx Revenue Service/DAAS Revenue Gross Margin

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Financial Momentum Continues // 8 Quarterly Adjusted EBITDA* Growth * Adjusted EBITDA is a non-GAAP measure. See the Appendix in this presentation for a reconciliation to the most comparable GAAP measure $(5.1) $(3.9) $(2.0) $3.4 $4.0 $4.0 $4.4 $4.8 -$6.0 -$4.0 -$2.0 $0.0 $2.0 $4.0 $6.0 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 A d j. EB IT D A ( $ M M ’s ) TREND OF PROFITABILITY IMPROVEMENT REACHES 8 CONSECUTIVE QUARTERS TTM 3Q23 3Q24 Growth Gross Profit: $ 12.8 MM $ 36.5 MM $ 23.7 MM SG&A: $ 27.5 MM $ 24.6 MM ($ 2.9 MM) Net Income: $ 3.6 MM $ 8.2 MM $ 4.6 MM Adj. EBITDA*: ($7.5 MM) $ 17.3 MM $ 24.8 MM

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Chemistry Technologies: Competitive Advantage // 9 • Prescriptive Chemistry Management (PCM)TM • Proprietary energy chemistry solutions • Experienced chemistry energy team • Customized solutions to each well’s geology • Leveraging Data and Advanced Testing to enable predictive chemistry solutions • Leveraging over 170 active patents to design the best chemistry for each well • Strong well performance with 75,000 BOE uplift versus competition DELIVERING THE BEST UPLIFT PERFORMANCE IN INDUSTRY Advanced reservoir simulation analysis DATA SUPPORTED GEOCENTRIC CHEMISTRY MODELING

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Data Analytics: VeraCal Flare Solution // 10 INITIAL PENETRATION INTO SIGNIFICANT UPSTREAM APPLICATIONS * Total Addressable Market Pictured above: The proprietary VeraCal mobile flaring cart on location EPA Approval on Flaring Measurement Application • Expected to unlock an estimated $220 million oil & gas upstream TAM* annually • First EPA approved alternative measurement solution • 15 tests performed in 3Q24 Our Flare Measurement System is Differentiated • Continuous and autonomous monitoring • No consumable calibration gas • No manual sampling errors • Fast install and extreme durability Customer Emission Savings via EPA Subpart-W • 4-6% additional savings in emission penalties • Gain 3-4% in production before Super Emitter Status

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Investor Contact: Mike Critelli Director of Finance & Investor Relations [e-mail] // 11

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Appendix

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Data Analytics: “Measure More Strategy” Upstream • Flare monitoring: comply with EPA regulations • Custody Transfer: improves accuracy of payments to royalty owners and operators • Power Generation: facilitate field gas utilization in powering rigs and frac fleets Midstream • Gas processing plant control and optimization • Pipeline batch detection to optimize pipeline transmix processes • Vapor pressure controls to achieve product specifications • Emerging market in carbon capture Downstream • Process Controls: real-time measurement to optimize distillation tower efficiency • Chemicals: quality measurement in pipelines and terminals UTILIZING TECHNOLOGIES FOR EXPANSION INTO NEW MARKETS // 13 Growth Growth

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• JP3 field gas monitoring system allows frac fleets and drilling rigs to safely run on field gas displacing more expensive and higher carbon footprint diesel • Provides meaningful cost savings compared to gas chromatograph • A three-pad customer case study July - August 2023: • Achieved 70% field gas substitution rate • Eliminated 1.2 mm gallons of diesel usage • Realized 100% uptime Data Analytics: Upstream Field Gas Usage // 14 Delivered 70% Reduction in Diesel and CNG usage Frac Trailer Mounted System

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Upstream Custody Transfer challenges: • Readings only taken every 3 to 6 weeks with gas chromatography (gc) • Revenue degradation on inconsistent readings impacted by temperature, timing, and conditions • Requires onsite personnel JP3 technology changes the market: • Accurate readings every 5 seconds • Stakeholders paid on more consistent hydrocarbon quality readings • A more valuable hydrocarbon stream • Autonomous measurement Data Analytics: Upstream Market Disruptor // 15 From 3 weeks to 5 Seconds! Local System Mobile App and SCADA Reporting Real-Time Wellsite Readings

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Recent Financials Unaudited Condensed Consolidated Statement of Operations (in thousands) // 16

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// 17 Recent Financials Unaudited Condensed Consolidated Balance Sheets (in thousands, except share data)

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// 18 Recent Financials Unaudited Condensed Consolidated Statements of Cash Flows (in thousands)

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// 19 (1) Management believes that adjusted gross profit, EBITDA and adjusted EBITDA for the periods presented above, are useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods. Management views the income and expenses noted above to be outside of the Company’s normal operating results. Management analyzes operating results without the impact of the above items as an indicator of performance, to identify underlying trends in the business and cash flow from continuing operations, and to establish financial and operational goals, excluding certain non-cash or non-recurring items. Recent Financials Unaudited Reconciliation of Non-GAAP Items & Non-Cash Items Impacting Earnings (in thousands)(1)

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Cover	Nov. 04, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Nov. 04, 2024
Entity Registrant Name	Flotek Industries, Inc.
Entity Incorporation, State or Country Code	DE
Entity File Number	001-13270
Entity Tax Identification Number	90-0023731
Entity Address, Address Line One	5775 N. Sam Houston Parkway W., Suite 400
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77086
City Area Code	(713)
Local Phone Number	849-9911
Soliciting Material	false
Written Communications	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.0001 par value
Trading Symbol	FTK
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Entity Central Index Key	0000928054
Amendment Flag	false
Entity Addresses [Line Items]
City Area Code	(713)
Local Phone Number	849-9911
Document Period End Date	Nov. 04, 2024

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