Flowco Holdings Inc. Segments Disclosure
Note 16 – Segment Information
Our operations are primarily based in the U.S. All material revenues of the Company are derived from the U.S. Substantially all long-lived assets of the Company are located in the U.S.
The Company identifies reportable operating segments based on management’s structure, the customer’s application of its products and services offered by each and the financial data utilized by the Company’s as the CODM, to assess segment performance and allocate resources among segments. The Company’s two reportable operating segments are as follows:
Corporate headquarters and certain functional departments do not earn revenues but incur costs which do not constitute business activities. Therefore, these corporate headquarters and certain functional departments do not qualify as an operating segment and have been included within corporate and other, which is also not considered a reportable segment. Corporate and other includes (i) corporate and overhead costs, and (ii) capitalized costs related to the IPO and debt issuance and does not include any immaterial and aggregated operating segments.
The CODM assesses segment performances and allocates resources based on profitability. The CODM evaluates operating performance and decides how to allocate resources based on segment profit or loss, which is equivalent to segment income from operations, as well as Adjusted EBITDA, a non-GAAP measure defined as adjusted earnings before interest, income taxes, depreciation and amortization. The CODM uses the segment profit or loss for each segment predominantly in the annual budget and forecasting process. The CODM considers quarter-to-quarter variances on a sequential basis when making decisions about the allocation of operating and capital resources to each
segment.
The below tables contain revenues and certain expenses regularly presented to the CODM in order to make decisions regarding the Company's business, including resource allocation and performance assessments, as well as the current focus in compliance with ASC 280, Segment Reporting, for the periods presented (in thousands):
|
Year Ended December 31, 2025 |
|
||||||||||||
|
|
Production Solutions |
|
|
|
Natural Gas Technologies |
|
|
|
Total |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||
Revenues from external customers |
$ |
|
497,275 |
|
|
$ |
|
262,444 |
|
|
$ |
|
759,719 |
|
Intersegment revenues |
|
|
— |
|
|
|
|
58,786 |
|
|
|
|
58,786 |
|
Total revenues |
|
|
497,275 |
|
|
|
|
321,230 |
|
|
|
|
818,505 |
|
Elimination of intersegment revenue |
|
|
|
|
|
|
|
|
|
|
(58,786 |
) |
||
Total consolidated revenues |
|
|
|
|
|
|
|
|
|
|
759,719 |
|
||
Less: |
|
|
|
|
|
|
|
|
|
|
|
|||
Cost of revenues from external customers (1) |
|
|
225,361 |
|
|
|
|
121,189 |
|
|
|
|
346,550 |
|
Intersegment cost of revenue |
|
|
179 |
|
|
|
|
58,607 |
|
|
|
|
58,786 |
|
Total cost of revenues |
|
|
225,540 |
|
|
|
|
179,796 |
|
|
|
|
405,336 |
|
Elimination of intersegment cost of revenue |
|
|
|
|
|
|
|
|
|
|
(58,786 |
) |
||
Total consolidated cost of revenue |
|
|
|
|
|
|
|
|
|
|
346,550 |
|
||
Selling, general and administrative expenses (1) |
|
|
59,307 |
|
|
|
|
33,915 |
|
|
|
|
93,222 |
|
Depreciation and amortization (1) |
|
|
84,215 |
|
|
|
|
60,596 |
|
|
|
|
144,811 |
|
(Gain) loss on sale of equipment |
|
|
959 |
|
|
|
|
(217 |
) |
|
|
|
742 |
|
Segment profit |
$ |
|
127,254 |
|
|
$ |
|
47,140 |
|
|
|
|
174,394 |
|
Corporate expenses (2) |
|
|
|
|
|
|
|
|
|
|
(25,382 |
) |
||
Total operating income |
|
|
|
|
|
|
|
|
|
|
149,012 |
|
||
Interest expense |
|
|
|
|
|
|
|
|
|
|
(18,939 |
) |
||
Other expense |
|
|
|
|
|
|
|
|
|
|
740 |
|
||
Income before provision for income taxes |
|
|
|
|
|
|
|
|
$ |
|
130,813 |
|
||
____________________________
(1) Represents the significant expense categories and amounts for each reportable operating segment that are regularly provided to the chief operating decision maker.
(2) Comprised primarily of expenses not allocated to our reportable segments.
|
Year Ended December 31, 2024 |
|
||||||||||||
|
|
Production Solutions |
|
|
|
Natural Gas Technologies |
|
|
|
Total |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||
Revenues from external customers |
$ |
|
327,805 |
|
|
$ |
|
207,473 |
|
|
$ |
|
535,278 |
|
Intersegment revenues |
|
|
— |
|
|
|
|
39,163 |
|
|
|
|
39,163 |
|
Total revenues |
|
|
327,805 |
|
|
|
|
246,636 |
|
|
|
|
574,441 |
|
Elimination of intersegment revenue |
|
|
|
|
|
|
|
|
|
|
(39,163 |
) |
||
Total consolidated revenues |
|
|
|
|
|
|
|
|
|
|
535,278 |
|
||
Less: |
|
|
|
|
|
|
|
|
|
|
|
|||
Cost of revenues from external customers (1) |
|
|
140,672 |
|
|
|
|
123,752 |
|
|
|
|
264,424 |
|
Intersegment cost of revenue |
|
|
— |
|
|
|
|
39,163 |
|
|
|
|
39,163 |
|
Total cost of revenues |
|
|
140,672 |
|
|
|
|
162,915 |
|
|
|
|
303,587 |
|
Elimination of intersegment cost of revenue |
|
|
|
|
|
|
|
|
|
|
(39,163 |
) |
||
Total consolidated cost of revenue |
|
|
|
|
|
|
|
|
|
|
264,424 |
|
||
Selling, general and administrative expenses (1) |
|
|
37,867 |
|
|
|
|
20,942 |
|
|
|
|
58,809 |
|
Depreciation and amortization (1) |
|
|
61,475 |
|
|
|
|
29,387 |
|
|
|
|
90,862 |
|
(Gain) loss on sale of equipment |
|
|
784 |
|
|
|
|
13 |
|
|
|
|
797 |
|
Segment profit |
$ |
|
87,007 |
|
|
$ |
|
33,379 |
|
|
|
|
120,386 |
|
Corporate expenses (2) |
|
|
|
|
|
|
|
|
|
|
(3,644 |
) |
||
Total operating income |
|
|
|
|
|
|
|
|
|
|
116,742 |
|
||
Interest expense |
|
|
|
|
|
|
|
|
|
|
(32,345 |
) |
||
Loss on debt extinguishment |
|
|
|
|
|
|
|
|
|
|
(221 |
) |
||
Other expense |
|
|
|
|
|
|
|
|
|
|
(2,756 |
) |
||
Income before provision for income taxes |
|
|
|
|
|
|
|
|
$ |
|
81,420 |
|
||
____________________________
(1) Represents the significant expense categories and amounts for each reportable operating segment that are regularly provided to the chief operating decision maker.
(2) Comprised primarily of expenses not allocated to our reportable segments.
|
Year Ended December 31, 2023 |
|
||||||||||||
|
|
Production Solutions |
|
|
|
Natural Gas Technologies |
|
|
|
Total |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||
Revenues from external customers |
$ |
|
168,801 |
|
|
$ |
|
74,522 |
|
|
$ |
|
243,323 |
|
Intersegment revenues |
|
|
— |
|
|
|
|
36,758 |
|
|
|
|
36,758 |
|
Total revenues |
|
|
168,801 |
|
|
|
|
111,280 |
|
|
|
|
280,081 |
|
Elimination of intersegment revenue |
|
|
|
|
|
|
|
|
|
|
(36,758 |
) |
||
Total consolidated revenues |
|
|
|
|
|
|
|
|
|
|
243,323 |
|
||
Less: |
|
|
|
|
|
|
|
|
|
|
|
|||
Cost of revenues from external customers (1) |
|
|
42,179 |
|
|
|
|
62,599 |
|
|
|
|
104,778 |
|
Intersegment cost of revenue |
|
|
— |
|
|
|
|
36,758 |
|
|
|
|
36,758 |
|
Total cost of revenues |
|
|
42,179 |
|
|
|
|
99,357 |
|
|
|
|
141,536 |
|
Elimination of intersegment cost of revenue |
|
|
|
|
|
|
|
|
|
|
(36,758 |
) |
||
Total consolidated cost of revenue |
|
|
|
|
|
|
|
|
|
|
104,778 |
|
||
Selling, general and administrative expenses (1) |
|
|
11,792 |
|
|
|
|
3,427 |
|
|
|
|
15,219 |
|
Depreciation and amortization (1) |
|
|
42,773 |
|
|
|
|
1,049 |
|
|
|
|
43,822 |
|
(Gain) loss on sale of equipment |
|
|
1,169 |
|
|
|
|
1 |
|
|
|
|
1,170 |
|
Segment profit |
$ |
|
70,888 |
|
|
$ |
|
7,446 |
|
|
|
|
78,334 |
|
Corporate expenses (2) |
|
|
|
|
|
|
|
|
|
|
— |
|
||
Total operating income |
|
|
|
|
|
|
|
|
|
|
78,334 |
|
||
Interest expense |
|
|
|
|
|
|
|
|
|
|
(18,956 |
) |
||
Other expense |
|
|
|
|
|
|
|
|
|
|
(910 |
) |
||
Income before provision for income taxes |
|
|
|
|
|
|
|
|
$ |
|
58,468 |
|
||
____________________________
(1) Represents the significant expense categories and amounts for each reportable operating segment that are regularly provided to the chief operating decision maker.
(2) Comprised primarily of expenses not allocated to our reportable segments.
The following table sets forth certain selected financial information for our operating segments for the periods presented (in thousands):
|
|
Year Ended December 31, |
|
|||||||
|
|
2025 |
|
|
2024 |
|
||||
Segment capital expenditures: |
|
|
|
|
|
|
|
|
||
Production Solutions |
|
$ |
|
140,345 |
|
|
$ |
|
51,207 |
|
Natural Gas Technologies |
|
|
|
59,326 |
|
|
|
|
36,793 |
|
Total segment capital expenditures |
|
|
|
199,671 |
|
|
|
|
88,000 |
|
Corporate and other |
|
|
|
— |
|
|
|
|
2,494 |
|
Total capital expenditures |
|
$ |
|
199,671 |
|
|
$ |
|
90,494 |
|
|
|
As of December 31, |
|
|||||||
|
|
2025 |
|
|
2024 |
|
||||
Segment assets: |
|
|
|
|
|
|
|
|
||
Production Solutions |
|
$ |
|
939,922 |
|
|
$ |
|
886,372 |
|
Natural Gas Technologies |
|
|
|
799,357 |
|
|
|
|
730,459 |
|
Total segment assets |
|
|
|
1,739,279 |
|
|
|
|
1,616,831 |
|
Eliminations |
|
|
|
(113,297 |
) |
|
|
|
(41,639 |
) |
Corporate and other |
|
|
|
20,369 |
|
|
|
|
13,757 |
|
Total assets |
|
$ |
|
1,646,351 |
|
|
$ |
|
1,588,949 |
|
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.