FLOTEK INDUSTRIES INC/CN/FTK
FLOTEK INDUSTRIES INC/CN/ Segments Disclosure
Business Segment, Geographic and Major Customer Information
Segment Information
The Company’s segments are determined as those components whose results are reviewed regularly by the chief operating decision maker (“CODM”), who is the Company's Chief Executive Officer, in deciding how to allocate resources and assess performance. Each segment is organized and managed based upon the nature of the Company’s markets and customers and consists of similar products and services. Gross profit and income (loss) from operations for each segment are used by the CODM to assess the performance of each segment in a financial period. The CODM uses segment gross profit and income (loss) from operations as the measure to make resource (including financial or capital resources) allocation decisions for each segment. Accounting policies have been applied consistently by each segment for all reporting periods. Intercompany revenue and expense amounts, if any, have been eliminated within each segment to report on the basis that management uses internally for evaluating segment performance. Various functions, including certain sales and marketing activities and general and administrative activities, are provided centrally by the corporate office. Costs associated with corporate office functions, other corporate income and expense items, and income taxes are not allocated to the reportable segments.
The operations of the Company are categorized into the following reportable segments:
Chemistry Technologies. The CT segment includes specialty chemistries, logistics and technology services, which we believe enable our customers to pursue improved efficiencies and performance throughout the life cycle of their wells, and also help our customers improve their environmental, social and governance (“ESG”) and operational goals. Customers of the CT segment include major integrated oil and gas companies, oilfield services companies, independent oil and gas companies, national and state-owned oil companies and international supply chain management companies.
Data Analytics. The Company’s Data Analytics (“DA”) segment provides analytical measurement and digital solutions, including measure-and-control services, that deliver near real-time insights for process control across the oil and gas value chain and emerging applications in power and digital valuation. DA solutions help customers optimize performance, improve decision-making, and reduce emissions and carbon intensity, supported in part by recurring service and lease revenues.
Summarized financial information of the reportable segments is as follows (in thousands):
As of and for the years ended December 31, | Chemistry Technologies | Data Analytics | Corporate and Other | Total | |||||||||||||||||||
| 2025 | |||||||||||||||||||||||
| Revenue from external customers | |||||||||||||||||||||||
| Products | $ | 76,059 | $ | 7,261 | $ | — | $ | 83,320 | |||||||||||||||
| Services | 3,506 | 3,610 | — | 7,116 | |||||||||||||||||||
| Total revenue from external customers | 79,565 | 10,871 | — | 90,436 | |||||||||||||||||||
| Revenue from related party | |||||||||||||||||||||||
| Products | 130,098 | 69 | — | 130,167 | |||||||||||||||||||
| Services | 123 | 397 | — | 520 | |||||||||||||||||||
| Rental revenue | — | 16,139 | — | 16,139 | |||||||||||||||||||
| Total revenue from related parties | 130,221 | 16,605 | — | 146,826 | |||||||||||||||||||
| Cost of sales | 168,302 | 9,127 | — | 177,429 | |||||||||||||||||||
| Gross profit | 41,484 | 18,349 | — | 59,833 | |||||||||||||||||||
| Selling, general and administrative | 9,155 | 4,483 | 14,408 | 28,046 | |||||||||||||||||||
| Asset acquisition expenses | — | 4,362 | — | 4,362 | |||||||||||||||||||
| Severance expense | 11 | 29 | 490 | 530 | |||||||||||||||||||
| Other segment items | 1,933 | 1,593 | 125 | 3,651 | |||||||||||||||||||
| Income (loss) from operations | $ | 30,385 | $ | 7,882 | $ | (15,023) | $ | 23,244 | |||||||||||||||
| Reconciliation of profit to income before income taxes: | |||||||||||||||||||||||
| Interest expense | $ | (3,937) | $ | (3,937) | |||||||||||||||||||
| Other income, net | 348 | 348 | |||||||||||||||||||||
| Income before income taxes | $ | 19,655 | |||||||||||||||||||||
| 2024 | |||||||||||||||||||||||
| Revenue from external customers | |||||||||||||||||||||||
| Products | $ | 60,847 | $ | 4,740 | $ | — | $ | 65,587 | |||||||||||||||
| Services | 2,367 | 3,309 | — | 5,676 | |||||||||||||||||||
| Total revenue from external customers | 63,214 | 8,049 | — | 71,263 | |||||||||||||||||||
| Revenue from related party | |||||||||||||||||||||||
| Products | 114,879 | 5 | — | 114,884 | |||||||||||||||||||
| Services | 68 | 810 | — | 878 | |||||||||||||||||||
| Total revenue from related parties | 114,947 | 815 | — | 115,762 | |||||||||||||||||||
| Cost of sales | 141,948 | 5,691 | — | 147,639 | |||||||||||||||||||
| Gross profit | 36,213 | 3,173 | — | 39,386 | |||||||||||||||||||
| Selling, general and administrative | 7,861 | 3,489 | 13,359 | 24,709 | |||||||||||||||||||
| Other segment items | 1,750 | 623 | 108 | 2,481 | |||||||||||||||||||
| Income (loss) from operations | $ | 26,602 | $ | (939) | $ | (13,467) | $ | 12,196 | |||||||||||||||
| Reconciliation of profit to income before income taxes: | |||||||||||||||||||||||
| Interest expense | (1,095) | (1,095) | |||||||||||||||||||||
| Other income, net | 46 | 46 | |||||||||||||||||||||
| Income before income taxes | $ | 11,147 | |||||||||||||||||||||
Other segment items for the year ended December 31, 2025 include depreciation of $0.7 million and $1.1 million in the CT and DA segments, respectively; R&D costs of $1.3 million and $0.5 million in the CT and DA segments, respectively; and gain on sale of property and equipment in the CT segment of $7 thousand.
Other segment items for the year ended December 31, 2024 include depreciation of $0.6 million and $0.2 million in the CT and DA segments, respectively; and R&D costs of $1.2 million and $0.5 million in the CT and DA segments, respectively; and gain on the sale of property and equipment of $0.1 million and $15 thousand in the CT and DA segments, respectively.
Assets of the Company by reportable segments and corporate and other are as follows (in thousands):
| December 31, 2025 | December 31, 2024 | ||||||||||
| Chemistry Technologies | $ | 161,332 | $ | 152,161 | |||||||
| Data Analytics | 19,179 | 8,632 | |||||||||
| Corporate and Other | 39,538 | 10,003 | |||||||||
| Total assets | $ | 220,049 | $ | 170,796 | |||||||
Additions to long-lived assets by reportable segments and corporate and other are as follows (in thousands):
As of and for the years ended December 31, | Chemistry Technologies | Data Analytics | Corporate and Other | Total | |||||||||||||||||||
| 2025 | |||||||||||||||||||||||
Additions to long-lived assets (1) | $ | 1,131 | $ | 14,724 | $ | 381 | $ | 16,236 | |||||||||||||||
| 2024 | |||||||||||||||||||||||
| Additions to long-lived assets | $ | 360 | $ | 1,492 | $ | 88 | $ | 1,940 | |||||||||||||||
(1)Additions to long-lived assets for the year ended December 31, 2025 includes $14.3 million of assets as a result of the PWRtek Transactions (see Note 3, “Asset Acquisition”).
Geographic Information
Revenue by country is based on the location where services are provided and products are sold. For the years ended December 31, 2025 and 2024, no country other than the U.S. accounted for more than 10% of revenue. Revenue by geographic location is as follows (in thousands):
| Years ended December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
U.S. (1) | $ | 225,952 | $ | 177,825 | ||||||||||
| UAE | 9,951 | 7,392 | ||||||||||||
| Other countries | 1,359 | 1,808 | ||||||||||||
| Total revenue | $ | 237,262 | $ | 187,025 | ||||||||||
(1) Includes revenue from related party
Long-lived assets held in countries other than the U.S. are not material to the consolidated financial statements.
Major Customers
Revenue from major customers, as a percentage of consolidated revenue, is as follows (in thousands):
| Revenue | % of Total Revenue | |||||||||||||
Year ended December 31, 2025 | ||||||||||||||
Customer A (related party) | $ | 146,826 | 61.9 | % | ||||||||||
Year ended December 31, 2024 | ||||||||||||||
Customer A (related party) | $ | 115,762 | 61.9 | % | ||||||||||
The concentration with ProFrac and in the oil and gas industry increases credit, commodity and business risk.
Accounts receivable from major external customers, as a percentage of accounts receivable, is as follows (in thousands):
| Accounts Receivable | % of Total Non-Related Party Accounts Receivable | |||||||||||||
As of December 31, 2025 | ||||||||||||||
Customer A | $ | 8,525 | 44.8 | % | ||||||||||
| Customer B | $ | 3,001 | 15.8 | % | ||||||||||
| Customer C | $ | 771 | 4.0 | % | ||||||||||
As of December 31, 2024 | ||||||||||||||
Customer A | $ | 3,324 | 18.6 | % | ||||||||||
| Customer C | $ | 2,264 | 12.7 | % | ||||||||||
| Customer B | $ | 1,288 | 7.2 | % | ||||||||||
Please see Note 18 - “Related Party Transactions” for additional information regarding accounts receivable with ProFrac.
Major Suppliers
Expenditure with major suppliers, as a percentage of consolidated supplier expenditure, is as follows (in thousands):
| Years ended December 31, | Expenditure | % of Total Expenditure | ||||||||||||
| 2025 | ||||||||||||||
| Supplier A | $ | 36,098 | 25 | % | ||||||||||
| Supplier B | 17,840 | 12 | % | |||||||||||
| Supplier C | 16,935 | 12 | % | |||||||||||
| 2024 | ||||||||||||||
| Supplier A | $ | 24,064 | 19 | % | ||||||||||
| Supplier B | 21,410 | 17 | % | |||||||||||
| Supplier C | 20,333 | 16 | % | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 16, 2026 | Showing above |
| 2024 | Mar 12, 2025 | |
| 2023 | Mar 15, 2024 | |
| 2022 | Mar 23, 2023 | |
| 2021 | Mar 31, 2022 | |
| 2020 | Mar 16, 2021 | |
| 2019 | Mar 6, 2020 | |
| 2018 | Mar 8, 2019 | |
| 2017 | Mar 8, 2018 | |
| 2016 | Feb 8, 2017 | |
| 2015 | Jan 27, 2016 | |
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.