Flotek Industries, Inc. (FTK): Business Model Canvas [Dec-2025 Updated]

You're digging into Flotek Industries, Inc. (FTK) to see if this pivot from a chemical supplier to a data-driven energy solutions leader is real, and honestly, the numbers suggest it is. I've seen plenty of these transformations, but their focus on high-margin, recurring Data-as-a-Service (DAS) revenue, supported by a $160 million multi-year backlog from their PWRtek asset lease, is compelling. With 2025 revenue guidance set between $200 million and $220 million, understanding how they plan to execute this-from their 130+ patents to their key partnerships with E&P operators-is crucial for your valuation model. Below, we break down the entire Business Model Canvas to show you the mechanics of this shift.

Flotek Industries, Inc. (FTK) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Flotek Industries, Inc. (FTK) has locked in to drive its Data-as-a-Service transformation, so let's look at the hard numbers behind these alliances.

Long-term supply agreement with ProFrac Services, LLC

The agreement with ProFrac Services, LLC remains a significant, though diversifying, revenue component. For the full year ended December 31, 2024, revenues related to the minimum purchase requirements under this long-term supply agreement totaled $32.4 million. In the fourth quarter of 2024 alone, this contributed $8.6 million to total revenues. The nature of this relationship is evolving; for the third quarter of 2025, revenues attributable to the minimum chemistry purchase requirement saw a 28% increase compared to the year-ago quarter. Importantly, the company is successfully diversifying away from reliance on this single partner, as excluding the chemistry order shortfall penalty, 53% of third quarter 2025 chemistry sales were to external customers, a notable jump from 35% in the third quarter of 2024. Furthermore, a portion of the consideration for Flotek Industries, Inc.'s April 28, 2025 acquisition of mobile power generation assets from ProFrac GDM, LLC involved an offset of $17.6 million against order shortfall payments owed under this agreement for the 2024 measurement period.

Strategic collaboration with domestic E&P operators for technology pilots

The push toward digitalized value chains with domestic Exploration & Production (E&P) operators is showing clear financial traction, primarily through the Data Analytics segment. Data Analytics revenue growth has been explosive: it rose 57% year-over-year in the first quarter of 2025, then 189% in the second quarter of 2025 versus the second quarter of 2024, and further accelerated to a 232% increase in the third quarter of 2025. This segment's focus on real-time gas monitoring and custody transfer solutions is key to meeting operator demands for efficiency and maximum return on invested capital.

Partnerships with flare developers for VeraCaL monitoring system

Regulatory drivers are creating a strong partnership environment for Flotek Industries, Inc.'s environmental compliance technology. The JP3 VeraCal analyzer was the first alternative method approved by the Environmental Protection Agency (EPA) in July 2024 for flare monitoring. The EPA's NSPS OOOOb rule targets over 55,000 U.S. flares needing monitoring by 2028. Flotek Industries, Inc. has 15 deployed flare monitoring units with nine more under contract. These units are shifting the revenue mix; by the second quarter of 2025, flare monitoring services accounted for 46% of the Data Analytics segment revenue, up from 30% in 2023. Separately, the XSPCT custody transfer unit achieved compliance with GPA 2172 standards on October 29, 2025.

Targeted engagement with National Oil Companies (NOCs) in the Middle East

International expansion, including engagement with National Oil Companies (NOCs), is a growing source of revenue. International sales totaled $10 million through the first nine months of 2025, representing an increase of about 122% compared to the same period in the prior year. This follows a strong 2024 performance where the UAE and Saudi Arabia contributed $9.2 million in chemistry revenue, which was a 20% increase over 2023.

Here is a snapshot of the financial impact from key partnerships and related activities as of late 2025:

The mobile power generation assets acquired in April 2025, which are under a six-year dry lease agreement, are expected to deliver approximately $15 million in high-margin rental revenue during 2025. The expected revenue for these assets in the fourth quarter of 2025 is projected to increase to approximately $6.8 million.

• Data Analytics Revenue Growth Q3 2025 vs Q3 2024: 232%
• 2025 Total Revenue Guidance (Revised Midpoint): $220 million
• 2025 Adjusted EBITDA Guidance (Revised Midpoint): $37.5 million (Range: $35 million to $40 million)
• Data Analytics Gross Profit Margin (Q3 2025): 71%

Flotek Industries, Inc. (FTK) - Canvas Business Model: Key Activities

You're looking at the core engine of Flotek Industries, Inc. (FTK) as of late 2025, which is clearly shifting toward high-margin recurring revenue streams. The key activities reflect this transformation, moving beyond just chemical supply.

Specialty chemistry manufacturing and logistics (Chemistry Technologies)

The Chemistry Technologies segment remains a foundational activity, focusing on designing, developing, manufacturing, packaging, and distributing green specialty chemicals. This activity is showing market share gains, particularly internationally. External Chemistry revenues saw an 88% year-over-year increase in the first quarter of 2025. For the nine months ending September 30, 2025, total chemistry sales were up 17% compared to the prior year period. To be fair, the reliance on the ProFrac agreement is decreasing; in the third quarter of 2025, 53% of chemistry sales were to external customers, a significant jump from 35% in the third quarter of 2024. International sales through the first nine months of 2025 totaled $10 million, representing a 122% increase year-over-year.

Research and development spending in this area is being managed tightly. Research and development expense for the first quarter of 2025 was $355 thousand. Looking back, the R&D expense for fiscal year 2024 was $1.714 million, which was the lowest point in the last five fiscal years.

Real-time data analytics and measurement solution development

Developing and supporting advanced analytics is a major focus, driving margin expansion. The Data Analytics segment revenue grew 57% year-over-year in the first quarter of 2025. By the third quarter of 2025, this segment represented 16% of total company revenue, up from 5% in the third quarter of 2024. This shift is dramatically improving profitability, as you can see here:

The development activity includes securing key certifications. The XSPCT analyzer became the first optical spectrometer to comply with GPA 2172 oil and gas custody transfer standards.

Deployment and servicing of 30 PWRtek mobile power generation assets

This activity, stemming from an April 2025 acquisition, is central to the recurring revenue thesis. Flotek Industries, Inc. acquired 30 real-time gas monitoring and dual fuel optimization assets for mobile power generation. As of September 30, 2025, all 30 of these Acquired Assets were in service. This deployment is tied to a six-year lease with a recurring backlog valued at approximately $160 million. The servicing activity generated $6.1 million in rental revenues during the third quarter of 2025 alone, with an approximate gross profit margin of 89% for those specific revenues. Management expects this asset class to contribute approximately $16.1 million in total revenue for the full year 2025, with fourth quarter revenues projected around $6.8 million. The commitment is substantial for the next fiscal year, with PWRtek revenues projected to be north of $27 million in 2026.

Research and development of new patented technologies (e.g., XSPCT Analyzer)

The ongoing development supports both segments, focusing on patented technologies for performance enhancement and compliance. The company leverages more than 170 chemistry design patents. The Data Analytics segment growth is supported by solutions like the XSPCT analyzer, which achieved compliance with GPA 2172 standards in December 2024. The overall 2025 guidance midpoint implies a total company adjusted EBITDA margin of 17%, a significant improvement from 11% in 2024, showing the success of these technology-driven activities.

• Total Revenue guidance midpoint for FY2025: $210 million.
• Adjusted EBITDA guidance midpoint for FY2025: $36.5 million.
• Q1 2025 Net Income: $5.380 million.
• Q3 2025 Net Income: $20.4 million (including a $12.6 million tax benefit).
• The multi-year contract for PWRtek assets is valued at approximately $160 million in recurring backlog.

Flotek Industries, Inc. (FTK) - Canvas Business Model: Key Resources

You're looking at the core assets Flotek Industries, Inc. (FTK) relies on to execute its strategy, which is clearly pivoting toward high-margin data and specialized chemistry. These aren't just line items; they are the engine behind the margin expansion we've seen, defintely.

The foundation of Flotek Industries, Inc.'s competitive edge rests on a blend of protected intellectual property and deep operational data.

• Intellectual property portfolio of over 130 patents as of May 2025.
• 20+ years of accumulated field and laboratory data supporting prescriptive solutions.

The proprietary chemistry formulations, while historically the core, are now being supplemented by high-margin technology assets.

The Chemistry Technologies segment showed strong external growth, capturing market share even with lower domestic frac activity. External Chemistry revenues increased 88% year-over-year in Q1 2025, and still grew 43% year-over-year in Q3 2025.

The real story in Key Resources is the integration of the real-time gas monitoring and dual fuel optimization assets, known as PWRtek, which are now fully deployed.

Flotek Industries, Inc. acquired 30 of these assets in April 2025. These assets are generating significant, high-margin revenue, which is key to the company's transformation.

This collection of resources is what allows Flotek Industries, Inc. to command premium pricing in its Data Analytics segment. The XSPCT analyzer, for instance, became the first optical spectrometer to meet the stringent GPA 2172 standard by October 2025, directly leveraging the IP and data assets.

• The Data Analytics segment revenue grew 232% year-over-year in Q3 2025.
• The Data Analytics segment contributed 16% of total company revenue in Q3 2025.
• The company's global presence spans more than 59 countries.

Finance: draft 13-week cash view by Friday.

Flotek Industries, Inc. (FTK) - Canvas Business Model: Value Propositions

You're looking at how Flotek Industries, Inc. (FTK) creates value now that they've pivoted hard into data and specialized services. The value propositions are centered on tangible performance gains and a shift to higher-margin, recurring revenue streams, moving away from pure commodity chemistry.

Optimizing Well Performance and Reducing Environmental Impact

For the traditional chemistry side, Flotek Industries, Inc. (FTK) offers customized drilling and cementing solutions designed to improve performance deep underground. Their additives enhance flow, suspension, and cleaning in both water- and oil-based drilling fluids. For instance, their cement dispersants make slurries flow more smoothly, which is key for pumpability under high-pressure conditions, especially in tricky zones. You can see the impact of this focus on performance; the company reported a 26% increase in production performance versus competition based on their Chemistry Technologies, using Physics Based Modeling on over >20k Wells.

The environmental angle comes through their newer mobile power generation technology. This tech allows mobile power generators to optimize fuel use and cut emissions. This is a critical advantage as the industry focuses on sustainability. The company acquired $\text{30}$ real-time gas monitoring and dual fuel optimization assets in April $\text{2025}$ to drive this.

Delivering Real-Time Digital Valuation for Custody Transfer (XSPCT)

This is where the digital transformation really shows up. Flotek Industries, Inc. (FTK) announced on October $\text{29, 2025}$, that its XSPCT analyzer became the first optical spectrometer to comply with the GPA $\text{2172}$ oil and gas custody transfer standards. This compliance is a big deal because it helps the company build a high-margin revenue backlog in the Data Analytics segment. The value here is immediate and measurable for the customer; these custody transfer units are reportedly saving operators up to $\$50,000$ per day. The Digital Valuation Pilot is actively transitioning to revenue generation.

High-Margin, Recurring Data-as-a-Service (DAS) Business Model

The shift to a Data-as-a-Service (DAS) model is the core of the current valuation story. The Data Analytics segment is delivering exceptional margins. In Q3 $\text{2025}$, the segment gross profit margin hit 71%, up significantly from $\text{44\%}$ in the year-ago quarter. This high margin is pulling up the overall company performance; gross profit margin for the entire company reached 32% in Q3 $\text{2025}$, up from $\text{18\%}$ year-over-year. The revenue mix is changing fast, so. Data Analytics revenue represented 16% of total company revenue in Q3 $\text{2025}$, a big jump from just $\text{5\%}$ in Q3 $\text{2024}$. By the first $\text{9M25}$, this segment accounted for 25% of the total gross profit, up from $\text{8\%}$ in $\text{FY2024}$. Management projects the Data Analytics segment will contribute over 60% of adjusted EBITDA by $\text{2026}$.

Here's a quick look at the segment's financial weight as of Q3 $\text{2025}$ results:

The company's confidence in this model led them to raise their full-year $\text{2025}$ guidance. The midpoint of the revised guidance implies $\text{19\%}$ total revenue growth and $\text{85\%}$ adjusted EBITDA growth compared to $\text{2024}$, resulting in an implied adjusted EBITDA margin of 17% for $\text{2025}$, up from $\text{11\%}$ in $\text{2024}$. That's a significant margin expansion, which is what you want to see from a high-margin DAS business.

Mobile Power Generation for Fuel Optimization and Emissions Reduction

The assets acquired in April $\text{2025}$-part of the PWRtek platform-are already contributing substantially. These assets generated $\$6.1$ million in revenue during Q3 $\text{2025}$, and the gross profit as a percentage of revenue for that portion was approximately 89%. Power Services, as a whole, delivered a gross margin of $\sim\text{90\%}$. All of the acquired assets were in service as of September $\text{30, 2025}$. You should expect Q4 $\text{2025}$ PWRtek revenues to total approximately $\$6.8$ million, and the projection for $\text{2026}$ is for PWRtek revenues to exceed $\$27$ million, which is about a 70% increase from $\text{2025}$. The initial contract secured for these assets was valued at $\$160$ million.

The value propositions are clearly stacked:

• Chemistry additives deliver a 26% production performance uplift.
• XSPCT compliance helps save operators up to $\$50,000$ per day.
• Data Analytics segment gross margin reached 71% in Q3 $\text{2025}$.
• PWRtek assets achieved an $\sim\text{89\%}$ gross margin in Q3 $\text{2025}$.
• $\text{2025}$ Adjusted EBITDA guidance midpoint implies an 85% growth rate year-over-year.

Finance: draft $\text{13}$-week cash view by Friday.

Flotek Industries, Inc. (FTK) - Canvas Business Model: Customer Relationships

You're looking at how Flotek Industries, Inc. solidifies its customer base, which is really about locking in revenue through specific, high-value service agreements. It's less about transactional sales and more about deep, integrated partnerships, especially as they pivot toward data services.

Long-term, multi-year contracts for stable revenue streams

Flotek Industries, Inc. is actively securing its future revenue through significant, long-term commitments. The CEO confirmed in Q3 2025 that they continue to secure these contracts across both chemistry and data analytics segments, which helps shield the business from commodity price swings. A major anchor for this stability came from the April 2025 acquisition, which included a $160 million multi-year contract.

The financial commitment from this specific deal is clear:

This focus on contracted revenue is a deliberate strategy to build a high-margin revenue backlog, with the Data Analytics segment's recurring backlog expected to exceed 2024 total segment revenues by 221% in 2026.

Consultative, high-touch service for Data Analytics pilot-to-commercial conversion

The Data Analytics segment demands a high-touch, consultative approach to move clients from initial testing to full subscription. This is where Flotek Industries, Inc. proves the value of its technology in a real-world setting. Management noted in their Q3 2025 update that they saw completed transitions from pilot to commercial phases.

Here's a look at the conversion momentum:

• In Q2 2025, nine installations were generating recurring monthly revenue.
• Six additional pilot locations were expected to convert to recurring revenue in Q3 2025.
• The CEO indicated that successful pilot programs are now in the commercial phase, with multiple unit deployments expected to start in Q4 2025, rolling into 2026.

The success of this consultative conversion is reflected in the segment's growth: Data Analytics revenue increased 57% in Q1 2025 and saw a 232% increase year-over-year in Q3 2025.

Dedicated account management for the ProFrac supply agreement

Flotek Industries, Inc. maintains a dedicated relationship structure around its legacy, yet significant, supply agreement with ProFrac Services, LLC. The amended agreement requires Flotek Industries, Inc. to supply a minimum of 70% of ProFrac's chemical needs or enough for 30 hydraulic fracturing fleets. This agreement was structured as a ten-year term.

Even with this dedicated structure, there are performance metrics that require active management. For instance, in Q3 2025, ProFrac fell short of its minimum purchase requirements, resulting in a $7.2 million deferred liability/offset. In Q1 2025, revenue attributable to the Minimum Purchase Requirements under this agreement was $7.5 million. This relationship is evolving, as the April 2025 asset acquisition from a ProFrac subsidiary was paired with a six-year dry lease agreement for those assets.

Prescriptive chemistry management services for customized solutions

The chemistry segment relies on its Prescriptive Chemistry Management (PCM) services, which are inherently customized. Flotek Industries, Inc. claims this customized approach, leveraging AI-driven analytics from over 20,000 wells, delivers 26% better production performance compared to competitors. This tailored service model is driving strong external growth even as overall industry activity shifts.

The results of this customized service model include:

• External chemistry revenue grew 88% in Q1 2025.
• External chemistry revenue grew 38% year-over-year in Q2 2025.
• For the first nine months of 2025, external chemistry sales showed 54% growth.

This performance is notable because it occurred while the average active frac fleet count declined from 255 in Q1 2024 to 192 in Q2 2025.

Finance: draft 13-week cash view by Friday.

Flotek Industries, Inc. (FTK) - Canvas Business Model: Channels

You're looking at how Flotek Industries, Inc. (FTK) gets its differentiated chemistry and data solutions into the hands of energy operators as of late 2025. The channels are clearly shifting, moving from a heavy reliance on traditional chemical sales to high-margin, recurring data service contracts. This mix is what's driving the margin expansion you see in the financials.

Direct sales force to domestic and international energy operators

The direct sales effort targets both US-based and international energy operators, primarily for the Chemistry Technologies segment. While the US frac count has been soft, external chemistry sales are showing strength, indicating market share gains through this direct channel. For instance, external Chemistry revenues rose 88% year-over-year in Q1 2025. The overall FY2025 revenue guidance is now set between $220 million and $225 million. This direct sales force is also key for securing the long-term supply agreements that provide a floor for the chemistry business.

• External Chemistry revenue growth (YoY Q1 2025): 88%.
• Related party revenue growth (YoY Q2 2025): 8%.
• Chemistry Technology segment revenue growth (9M 2025 vs 9M 2024): 21%.

International sales channels, particularly in the Middle East

International expansion is a clear channel focus, especially in the Middle East, which is proving to be a significant growth driver. This channel is directly tied to securing major preparatory work for large-scale fracturing tenders. This focus is helping to shield the business from weakness in the US rig environment. Honestly, this international push is a major component of the upside case.

• International chemistry revenue (9MFY25): $10 million.
• International revenue growth (YoY 9MFY25): 122%.

Long-term lease and service agreements for PWRtek assets

The channel for the Data Analytics segment is heavily weighted toward long-term lease and service agreements, largely centered around the PWRtek mobile power generation assets acquired in April 2025. These agreements create a highly visible, recurring revenue stream, which is a massive shift from the transactional nature of the legacy business. The initial deployment is already generating revenue, and the contracted backlog provides excellent forward visibility.

Here's the quick math on the PWRtek channel commitments:

The lease agreement for these assets is structured to deliver high margins, with PWRtek achieving gross margins of about 89% in Q3 2025. If onboarding takes 14+ days, churn risk rises, so rapid deployment of the remaining assets is key.

Digital platform for real-time data delivery and monitoring

The digital platform, which includes the PWRtek-enabled data analytics, is a core channel for delivering high-margin service revenue. The market acceptance is strong, evidenced by the segment's revenue share growth. The XSPCT analyzer achieving compliance with GPA 2172 standards further solidifies this channel by enabling custody transfer grade measurements, which are critical for customer billing and royalties.

The channel's financial impact is clear when you look at the segment's contribution:

Data Analytics revenue grew 189% year-over-year in Q2 2025, with service revenues specifically growing more than 450% to $4.1 million in that quarter. This platform is definitely the future for Flotek Industries, Inc. (FTK).

Flotek Industries, Inc. (FTK) - Canvas Business Model: Customer Segments

You're looking at the core markets Flotek Industries, Inc. (FTK) serves as of late 2025, which shows a clear pivot toward high-margin, recurring data services alongside its traditional chemistry business. The company's 2025 guidance, based on the midpoint, projects total revenue between $200 million and $220 million, with Adjusted EBITDA targeted between $34 million and $39 million.

The customer base is served through two primary segments: Chemistry Technologies and Data Analytics. The Data Analytics segment is rapidly gaining importance, contributing 16% of total company revenue in the third quarter of 2025, up from 5% in the year-ago quarter.

Here's how the customer segments map to the business activities:

• North American Exploration & Production (E&P) companies
• Global energy operators, including targeted international NOCs
• Mobile power generation and energy infrastructure sector clients
• Customers requiring regulatory compliance (e.g., EPA flare monitoring)

North American Exploration & Production (E&P) companies

North American operators are described as maintaining a 'cautious posture' due to geopolitical and macroeconomic challenges. Flotek Industries, Inc. is working to reduce reliance on single partners; for instance, external chemistry sales (excluding a penalty) made up 53% of Q3 2025 chemistry sales. A major customer, Profrac, has consistently fallen short of its minimum chemistry purchase requirements.

Global energy operators, including targeted international NOCs

International sales show significant growth, with a 122% increase reported in Q3 2025. Flotek Industries, Inc. has secured approved supplier status with ADNOC and shows traction in Saudi frac fleets, accessing highly capitalized national oil companies. However, these international sales face longer payment terms, which can impact working capital needs.

Mobile power generation and energy infrastructure sector clients

This segment is heavily bolstered by the acquisition of mobile power generation assets (PWRtek) in April 2025. The PWRtek business contributed $6.1 million in revenue during the third quarter, achieving a gross margin of approximately 89%. The contract for these assets is locked for an annual revenue of $27.4 million starting in 2026. This technology helps mobile power generators optimize fuel use and reduce emissions.

Customers requiring regulatory compliance (e.g., EPA flare monitoring)

Regulatory compliance solutions are integrated into the Data Analytics segment. The XSPCT Analyzer became the first optical spectrometer to comply with the oil and gas custody transfer standard known as GPA 2172 as of October 29, 2025. Flare monitoring is explicitly listed as one of the upstream technology applications driving the 625% service revenue increase in the Data Analytics segment for Q3 2025 over Q3 2024.

Flotek Industries, Inc. (FTK) - Canvas Business Model: Cost Structure

You're looking at the cost side of Flotek Industries, Inc. (FTK)'s business, which is clearly shifting as the company integrates its new data and asset-heavy components. The cost structure reflects a dual focus: managing the traditional chemical production costs while absorbing the initial outlay for the PWRtek fleet.

Significant cost of goods sold (COGS) for Chemistry Technologies manufacturing is a primary driver, though margins are improving due to the revenue mix shift. For the first half of 2025, the total Cost of goods sold was reported at $43,943 thousand. This is set against the backdrop of a strong gross profit performance; for instance, in the second quarter of 2025, the gross profit as a percentage of revenue reached 25%. By the third quarter of 2025, the gross profit margin climbed further to 32%, showing operational leverage is taking hold.

The control over overhead is quite evident in the Selling, General, and Administrative (SG&A) expenses. You'll see that Flotek Industries, Inc. achieved significant operating leverage here in the first quarter of 2025. SG&A expenses totaled $6.3 million for Q1 2025, which was only 11% as a percentage of revenues. Honestly, that's a sharp improvement from Q1 2024, when SG&A was 15% of revenue. Here's the quick math on that overhead control:

Regarding Research and development (R&D) investment in data and chemistry technologies, the search results confirm a heavy focus on innovation, particularly with the Data Analytics segment, but they don't give a specific dollar amount for R&D spending for 2025. What we do see is the result of that investment:

• The Data Analytics segment revenue grew 57% year-over-year in Q1 2025.
• The XSPCT Analyzer achieved compliance with GPA 2172 custody-transfer standards, a clear R&D milestone.
• The company maintains an intellectual property portfolio of over 130 patents.

The operating costs for the PWRtek asset fleet and field service personnel are now being absorbed, but they are quickly turning into a high-margin revenue stream, which offsets the initial transaction costs. Transaction expenses related to the Asset Acquisition during the second quarter of 2025 totaled $4.2 million. However, the acquired assets are delivering high-margin revenue, which is key to understanding the overall cost structure impact. The company expected the Acquired Assets to deliver approximately $15 million in high-margin rental revenue during 2025. By Q3 2025, the April PowerTech acquisition contributed $6.1 million at margins around 89%. The contracted revenue from this fleet is substantial, set to deliver roughly $27.4 million/year under lease for the first five years.

The PWRtek asset contribution for Q3 2025 versus the prior year's comparable period highlights the shift in operational expenditure impact:

• Q3 2025 PWRtek contribution: $6.1 million.
• PWRtek contracted annual revenue: $27.4 million.
• Expected 2025 revenue uplift from assets: $14 million.

If onboarding takes longer than expected, cash flow visibility gets murky, but the margins on these assets are defintely changing the cost profile.

Flotek Industries, Inc. (FTK) - Canvas Business Model: Revenue Streams

You're looking at the revenue engine for Flotek Industries, Inc. (FTK) as of late 2025, which is clearly shifting toward high-margin, recurring data services while still relying on its core chemical business. The numbers show a company executing a pivot, evidenced by the guidance and the specific contract wins.

The overall financial expectation for the year is set by the management's full-year 2025 revenue guidance, which is between $200 million and $220 million. This guidance midpoint suggests approximately 19% revenue growth compared to the prior year.

Revenue streams are segmented across two primary areas, with a significant new recurring revenue component:

• Chemistry Technologies product sales and logistics services
• Data Analytics recurring rental and subscription revenue (DAS)

The Chemistry Technologies segment showed resilience, with external revenues growing 88% year-over-year in Q1 2025, and international sales reaching $3.8 million in that same quarter. For the first nine months of 2025, international sales totaled $10 million, marking a 122% year-over-year increase. Still, this segment faces revenue uncertainty tied to customer minimum purchase agreements.

The Data Analytics segment is the clear growth driver. In Q3 2025, Data Analytics revenue grew 232% year-over-year and represented 16% of total company revenue, up from 5% in Q3 2024. This growth is heavily supported by the new mobile power generation assets.

The PWRtek asset lease is a cornerstone of the recurring revenue strategy. Flotek Industries, Inc. secured a multi-year lease providing a $160 million multi-year contract backlog. This is tied to the acquisition of power generation assets, which are expected to generate approximately $14 million in high-margin rental revenue during 2025. For the third quarter of 2025 alone, revenues attributable to these Acquired Assets totaled $6.1 million. Looking ahead, annual revenue under the Lease Agreement is projected to be $27.4 million starting in 2026.

A notable element impacting the reported revenue and balance sheet is the minimum purchase requirement from a major customer. Revenue from minimum purchase shortfall penalties is realized through adjustments to deferred liabilities. For instance, the company reported a $7.2 million deferred liability/offset in Q3 2025 related to a ProFrac order shortfall. This contrasts with the $7.5 million Minimum Purchase Requirement (MPR) included in Q1 2025 results.

Here's a quick look at the key revenue drivers and associated metrics as of the latest reported quarter:

The Data Analytics segment's high-margin nature is key; its gross profit margin reached 71% in Q3 2025. Also, the Chemistry segment saw 53% of its Q3 2025 sales come from external customers, excluding the shortfall penalty, showing diversification away from related-party minimums.