FTK

Overall Company Transformation

• The company is successfully executing its strategic transition to a data-as-a-service model, expanding its total addressable market and building a trajectory of diverse recurring revenue.
• Total Q2 2026 revenue approached $100 million, up 70% year-over-year, marking the strongest quarterly performance in 10 years. Total gross profit climbed 65% year-over-year, and adjusted EBITDA grew 109% year-over-year to $16.8 million. Net income was $10 million ($0.26 per share), up from $1.8 million ($0.05 per share) in Q2 2025.
• Zero lost-time incidents were recorded in field operations. G&A expenses fell to less than 8% of revenue from nearly 12% year-over-year, the lowest quarterly G&A rate in at least a decade.
• The company secured a 10-year, $400 million total backlog contract to support PREPA's 400-megawatt Puerto Rico gas power utility project, bringing total contracted backlog to over $500 million.

Data Analytics Segment Progress

• Growth is driven by flagship upstream applications: Power Services and Digital Valuation. By Q1 2027, Flowtech expects to support over 5 gigawatts of power via measurement or control on its proprietary Powertech platform.
• Deployments of XSPECT Analyzer for Digital Valuation grew 56% quarter-over-quarter to 89 units as of Q2 2026, after being named 2026 Product of the Year at the Analyzer Technology Conference. The XSPECT delivers unprecedented real-time well production transparency to reduce enterprise risk.
• The first industry application of the SmartSkid system was successfully completed for a major international oil company, enabling real-time blending of field gas and CNG to optimize gas quality. The company expects to have proprietary real-time analyzers on over 50% of currently active North American EFRAC and natural gas-powered fleets by the end of 2026.

Chemistry Technologies Segment Progress

• Outperformed the overall market despite a 5% decline in the average North American frack fleet count year-over-year, driven by strong growth in the Middle East that pulled revenue forward into June 2026.
• The segment is now converging prescriptive chemistry management with data analytics to deliver high-margin, data-driven services that improve operator return on investment, including real-time flowback monitoring and prescriptive geological targeting.
• International expansion is accelerating, with ongoing opportunities to grow to six active frac fleets in the Middle East Jafara field by the end of 2026, under a contract that runs for an additional 4.5+ years.

• Full-year 2026 total revenue guidance is set at $340 to $350 million, with adjusted EBITDA guidance of $47 to $51 million. The midpoints of these ranges represent 45% revenue growth and 49% adjusted EBITDA growth compared to 2025 actual results, an upward revision from prior guidance.
• Guidance assumes no revenue from the potential Phase II extension of the Montana Power Services contract in Q4 2026, and does not include any revenue impact from the newly awarded Puerto Rico PREPA contract in 2026, as deployment timelines are still being finalized.
• Management expects both data analytics and chemistry segment revenue in Q3 and Q4 2026 to exceed Q1 2026 results. International chemistry revenue is expected to remain strong in the second half of 2026, while domestic external chemistry revenue is normalized to a more sustainable pace after the exceptionally strong June 2026 sales that front-loaded some Q3 activity into Q2.
• The company maintains a strong balance sheet, with a leverage ratio below 1.0x (based on the midpoint of 2026 adjusted EBITDA guidance and net debt as of Q2 2026 end), providing sufficient financial flexibility to fund growth initiatives.

1. Data Analytics Segment: Revenue grew 223% year-over-year to ~$19 million (19% of total company revenue, up from 10% in Q2 2025). It accounted for 51% of total company gross profit (up from 26% in Q2 2025), making it the largest contributor to gross profit. 63% of Q2 2026 data analytics revenue came from external customers, up from 44% in Q2 2025. The segment achieved its highest ever quarterly revenue, exceeding the Q1 2026 record by 85%.
2. Chemistry Technologies Segment: Revenue increased 53% year-over-year, contributing 68% of total year-over-year company revenue growth. International chemistry revenue hit $10.6 million, up 172% year-over-year, representing 93% of full-year 2025 total international chemistry revenue. Related party chemistry revenue grew 64% year-over-year, while external customer chemistry revenue grew 38% year-over-year. This was the strongest quarterly chemistry sales performance since 2017.

• The Puerto Rico contract deployment timeline and revenue recognition are still being finalized, creating near-term uncertainty around 2026 and early 2027 revenue contributions from this large project.
• The Phase II extension of the Montana Power Services contract has not yet been finalized, creating uncertainty around Q4 2026 data analytics revenue.
• Domestic external chemistry revenue is transactional in nature, leading to variability between quarters that requires normalized guidance after an unusually strong Q2 2026.
• Large, chunky project awards require pre-investment in capital equipment, creating near-term working capital requirements, though management notes lead times for equipment are relatively short (4-5 weeks).

Q: Rob Brown (Lake Street Capital Markets) asked about the size and composition of Flowtech's power infrastructure pipeline following the PREPA contract win. / A: Management reported the current power services pipeline (focused on utilities, infrastructure, and data centers) is the largest in company history, with a total combined potential value of well over $1 billion across opportunities in various stages of bidding and negotiation. Flowtech has already expanded into real-time monitoring for traditional gas-fired power plants and data center power projects, and the PREPA win is indicative of the type of high-value opportunities the company is pursuing, with rapid scalability for the PowerTech platform. This growth track will bring Flowtech to almost 5 gigawatts of power under measurement or control, up from the platform's launch just over a year prior.

Q: Jeff Grant (Northland Capital) asked how Flowtech is integrating its data analytics and chemistry segments, and what the adoption timeline for combined offerings looks like. / A: Management stated that convergence of data and chemistry is a core strategic value creation pillar, and the company has now moved from benchtop testing to full field deployment of combined offerings. Deployments of XSPECT measurement units on wells that receive Flowtech chemistry completion services are now active, enabling real-time validation of the uplift from targeted chemistry treatments. The combined offering allows reservoir DNA fingerprinting to target higher-value hydrocarbons and verify production results, unlocking significant customer value and gaining rapid market traction.

Q: Jerry Sweeney (Roth Capital) asked what capital investments Flowtech needs to make to accelerate growth of its data analytics segment. / A: Management confirmed the company has already invested over $13 million in capital expenditures for data analytics monitoring, conditioning, and distribution equipment, more than double the cumulative CapEx spent on the business in all prior years combined. This CapEx spend will continue to increase in the second half of 2026, driven by strong return on investment for these assets. The company is also evaluating potential M&A opportunities to acquire smaller mechanical gas conditioning businesses and integrate their assets with Flowtech's patented real-time technology, and may add limited owned power generation capacity to support partner projects.

Q: Blake McLean (Daniel Partners) asked about the long-term opportunity for Flowtech's international chemistry business and the expected revenue split going forward. / A: Management reported the company has invested 3.5-4 years into building its international chemistry business, which provides geographic diversification to offset North American commodity price cycles, with longer-duration, less transactional contracts than domestic business. Flowtech currently operates on 4 frac fleets in the Middle East Jafara field, with potential expansion to 6 fleets by end of 2026 under a 4.5+ year contract. Growth is also emerging in Latin America, where Flowtech is now deploying both chemistry and data analytics equipment, and data analytics tools have already been approved for use by major Middle East national oil companies, putting the business in the early innings of long-term international growth.

Q: Beau Fratt (AGP) asked why second half 2026 guidance implies revenue below the Q2 2026 level, and how revenue splits between segments. / A: Management explained the downward adjustment is mostly due to normalizing domestic external chemistry revenue, after two large customers moved work scheduled for July into June 2026, front-loading revenue into Q2. Guidance also excludes $6 million of Q4 2026 revenue from the Montana Power Services contract extension, which has not yet been finalized. Data analytics revenue is expected to grow sequentially in the second half, while international chemistry revenue is expected to remain strong at Q2 levels, with domestic chemistry moderated to an average of Q1 and Q2 levels.