Flowco Holdings Inc. Reports Fourth Quarter and Full Year 2025 Results

Key Terms

adjusted net income financial

Adjusted net income is a company's reported profit after removing unusual, one-time, or non-operational items so the number reflects the business’s regular earning power. Investors use it like a cleaned-up scorecard — similar to judging a player’s season performance without a few fluke games — to compare companies or assess trends without being misled by rare gains or losses that won’t affect future cash flow.

adjusted ebitda financial

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

adjusted ebitda margin financial

Adjusted EBITDA margin shows how much profit a company makes from its core operations, expressed as a percentage of its total revenue, after removing certain one-time or unusual expenses and income. It helps investors understand the company's true earning ability from regular business activities, making it easier to compare performance over time or with other companies. Think of it as measuring the efficiency of a business in turning sales into profits, excluding irregular adjustments.

free cash flow financial

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

non-gaap financial measures financial

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

vapor recovery technical

Vapor recovery is a system or process that captures gas or evaporated product—often volatile liquids like fuel or solvents—before it escapes into the air and either returns it to usable form or treats it for safe disposal. For investors, vapor recovery matters because it reduces product loss (improving margins), lowers regulatory and cleanup risk, and can avoid fines or shutdowns; think of it like catching steam from a pot to reuse the water and prevent a mess.

revolving credit facility financial

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

purchase agreement regulatory

A purchase agreement is a legally binding contract that spells out exactly what is being bought, for how much, and under what conditions, including timelines, seller and buyer promises, and protections if things go wrong. For investors it matters because the agreement fixes the deal’s price, risks and closing conditions—like a detailed receipt and return policy for a large transaction—so it helps determine whether the deal will complete and how it will affect the company’s value and cash flow.

HOUSTON--(BUSINESS WIRE)-- Flowco Holdings Inc. (NYSE: FLOC) (“Flowco” or the “Company”), a provider of production optimization, artificial lift and emissions management and monetization solutions for the oil and natural gas industry, today announced financial results for the fourth quarter and full year ended December 31, 2025.

Where presented, the financial results for 2024 represent periods (i) during which Flowco’s operating subsidiary, Flowco MergeCo LLC (“Flowco LLC”), was a privately-owned limited liability company and (ii) prior to the completion of Flowco’s initial public offering in January 2025. Historical financial information for the periods ended in 2024 reflects information for Flowco LLC, and historical financial information presented prior to June 20, 2024 reflects only the historical financial information of Estis Compression LLC (“Estis”) as the accounting predecessor prior to the business combination of Estis, Flowco Production Solutions, LLC and Flogistix, LP and parent entities formed in connection with such business combination (the “2024 Business Combination”).

Key Fourth Quarter 2025 Highlights

• Revenues of $197.2 million, generating net income of $43.0 million and Adjusted Net Income¹ of $45.7 million
• Adjusted EBITDA¹ of $83.5 million
• Adjusted EBITDA Margin¹ of 42.4%
• Net cash provided by operating activities of $87.2 million and Free Cash Flow¹ of $63.2 million
• In January 2026, Flowco's Board of Directors declared a quarterly cash dividend of $0.08 per share
• Robust liquidity with approximately $579.6 million of availability under our revolving credit facility as of February 20, 2026

Financial Summary

		Three Months Ended															Year Ended December 31,
		December 31, 2025					September 30, 2025					December 31, 2024					2025					2024
		(in thousands)
Revenues		$		197,213			$		176,941			$		185,993			$		759,719			$		535,278
Net income				42,985					34,273					22,336					131,655					80,249
Adjusted Net Income (1)				45,734					37,301					28,779					148,802					99,283
Adjusted EBITDA (1)				83,545					76,803					73,779					311,737					223,661
Adjusted EBITDA Margin (1)				42.4	%				43.4	%				39.7	%				41.0	%				41.8	%

(1)	Adjusted Net Income, Adjusted EBITDA, Adjusted EBITDA Margin, and Free Cash Flow are non-GAAP financial measures. See definitions of these measures and the reconciliation of GAAP to non-GAAP financial measures outlined in the reconciliation tables accompanying this press release.

Joe Bob Edwards, President and CEO, commented, “Flowco ended the year with a strong fourth quarter, underscoring a year of consistent execution and differentiated growth across both of our operating segments in a market environment that remained dynamic and at times uncertain. U.S. oil and natural gas production reached record levels during the year, driven in part by operators’ continued focus on maximizing recovery and optimizing existing wells — a trend that directly aligns with Flowco’s production optimization platform.

In the fourth quarter, we maintained our industry-leading margins as anticipated sales growth complemented the strength of our resilient, high-margin rental portfolio. In the fourth quarter and throughout the year, we generated meaningful free cash flow, enabling us to reduce leverage to levels below where we stood prior to our asset transaction in August. This performance reflects the durability of our financial model and our continued focus on disciplined capital allocation.

Subsequent to quarter-end, we announced our agreement to acquire Valiant Artificial Lift Solutions, expanding our artificial lift capabilities and strengthening our ability to deliver the right solution for our customers in each well, every time. The transaction remains subject to customary regulatory approvals, and we expect it to close in the first week of March. We believe this transaction meaningfully expands our addressable market and strengthens our ability to support customers earlier in a well’s producing life and throughout the well lifecycle. As we integrate the business in 2026, we are confident in our ability to drive incremental growth and long-term value while continuing to advance Flowco’s broader production optimization strategy.”

Segment Information

We report our results in two segments, Production Solutions and Natural Gas Technologies. Production Solutions includes the rental, sale and service associated with high pressure gas lift, conventional gas lift and plunger lift, including a range of digital solutions and other production related technologies. Natural Gas Technologies includes the design, manufacture, rental and sale of vapor recovery and natural gas systems. Corporate costs not directly related to either segment are categorized separately.

Segment Financial Information

		Three Months Ended									Year Ended December 31,
		December 31, 2025			September 30, 2025			December 31, 2024			2025			2024
		(in thousands)
Production Solutions
Revenues		$	127,442		$	125,596		$	113,330		$	497,275		$	327,805
Adjusted Segment EBITDA (1)			57,477			55,260			49,929			216,670			161,354
Adjusted Segment EBITDA Margin (1)			45.1%			44.0%			44.1%			43.6%			49.2%
Natural Gas Technologies
Revenues		$	69,771		$	51,345		$	72,663		$	262,444		$	207,473
Adjusted Segment EBITDA (1)			29,982			25,317			27,802			111,358			66,259
Adjusted Segment EBITDA Margin (1)			43.0%			49.3%			38.3%			42.4%			31.9%
Corporate
Adjusted Segment EBITDA (1)		$	(3,914)		$	(3,774)		$	(3,952)		$	(16,291)		$	(3,952)
Adjusted Segment EBITDA Margin (1)			nm			nm			nm			nm			nm
Total
Revenues		$	197,213		$	176,941		$	185,993		$	759,719		$	535,278
Adjusted Segment EBITDA (1)			83,545			76,803			73,779			311,737			223,661
Adjusted Segment EBITDA Margin (1)			42.4%			43.4%			39.7%			41.0%			41.8%

(1)	Adjusted Net Income, Adjusted EBITDA, Adjusted EBITDA Margin, and Free Cash Flow are non-GAAP financial measures. See definitions of these measures and the reconciliation of GAAP to non-GAAP financial measures outlined in the reconciliation tables accompanying this press release.

Production Solutions

Fourth quarter 2025 revenue for the Production Solutions segment increased 1.5% from the third quarter of 2025, primarily due to an increase in Surface Equipment revenue. Adjusted Segment EBITDA increased 4.0% quarter over quarter for the same period, with Adjusted Segment EBITDA Margin increasing 110 basis points. The increase in Adjusted Segment EBITDA and Adjusted Segment EBITDA Margin resulted from a decrease in SG&A in the segment and a favorable revenue mix quarter over quarter.

Natural Gas Technologies

Fourth quarter 2025 revenue for the Natural Gas Technologies segment increased 35.9% from the third quarter of 2025, primarily due to an increase in Vapor Recovery and Natural Gas Systems sales. Adjusted Segment EBITDA increased 18.4% quarter over quarter for the same period, with Adjusted Segment EBITDA Margin decreasing 634 basis points due to a revenue mix shift toward sales.

Corporate

Corporate Adjusted Segment EBITDA for fourth quarter 2025 was $(3.9) million, compared to $(3.8) million Corporate Adjusted Segment EBITDA in the third quarter of 2025.

Balance Sheet & Liquidity

As of February 20, 2026, the Company had outstanding borrowings under its senior secured revolving credit facility (“Credit Agreement”) of $142.0 million and, with a current borrowing base of $722.1 million, had availability under the Credit Agreement of $579.6 million. The Company intends to use a portion of such availability to fund the cash consideration payable at the closing of its acquisition of Valiant Artificial Lift Solutions, which is expected to total approximately $170.0 million, subject to customary adjustments in accordance with the purchase agreement.

Dividend Declaration

On January 30, 2026, Flowco announced that its Board of Directors had declared a quarterly cash dividend of $0.08 per share of Class A common stock payable on February 25, 2026 to Class A common stockholders of record as of the close of business on February 13, 2026. Flowco MergeCo LLC, the Company’s operating subsidiary, will make a corresponding distribution of $0.08 per unit to holders of its common units.

Conference Call and Webcast Information

Flowco will host a conference call on Thursday, February 26, 2026, at 8:00 am Eastern Time to discuss fourth quarter and full year 2025 results. The conference call can be accessed live over the phone by dialing 1-877-704-4453 (for the U.S.) or 1-201-389-0920 (for International). A telephonic replay of the conference call will be available two hours after the call and can be accessed by dialing 1-844-512-2921 (for the U.S.) or 1-412-317-6671 (for International). The passcode for the call and replay is 13758392. A live webcast of the conference call will also be available under the Investor Relations section of Flowco’s website at ir.flowco-inc.com.

About Flowco

Flowco is a leading provider of production optimization, artificial lift and emissions management and monetization solutions for the oil and natural gas industry. The company’s products and services include a full range of equipment and technology solutions that enable oil and natural gas producers to efficiently and cost-effectively maximize the profitability and economic lifespan of their assets.

Forward-Looking Statements

The information in this press release includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this press release may be forward-looking statements. These statements generally relate to future events or our future financial or operating performance, and include, but are not limited to: statements regarding guidance or estimates related to the Company’s results of operations or financial condition; industry trends, customer demand and industry outlook, and effects on Flowco’s operations; Flowco’s strategies and plans, including matters relating to the Company growth, capital expenditures, dividend policies, and leverage profile. When used in this press release, words such as “expect,” “project,” “estimate,” “believe,” “anticipate,” “intend,” “plan,” “seek,” “forecast,” “target,” “predict,” “may,” “should,” “would,” “could,” and “will,” the negative of these terms and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although Flowco believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. These risks and uncertainties are described further in our annual report on Form 10-K for the year ended December 31, 2024 and our quarterly report for the period ended September 30, 2025 filed with the Securities and Exchange Commission. Flowco undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

Flowco Holdings Inc. Condensed Consolidated Statement of Operations
		Three Months Ended															Twelve Months Ended
		December 31, 2025					September 30, 2025					December 31, 2024					December 31, 2025					December 31, 2024
		(in thousands except share and per share amounts)
Revenues:
Rentals		$		111,592			$		106,966			$		91,705			$		417,958			$		276,687
Sales				85,621					69,975					94,288					341,761					258,591
Total revenues				197,213					176,941					185,993					759,719					535,278
Operating expenses:
Cost of rentals (exclusive of depreciation and amortization disclosed separately below)				30,593					29,295					25,538					114,341					74,494
Cost of sales (exclusive of depreciation and amortization disclosed separately below)				59,176					44,888					65,857					232,209					189,930
Selling, general and administrative expenses				26,380					28,980					26,249					118,577					62,453
Depreciation and amortization				38,601					38,953					34,360					144,838					90,862
Loss on sale of equipment				487					232					70					742					797
Income from operations				41,976					34,593					33,919					149,012					116,742
Other expenses:
Interest expenses				(4,372	)				(2,757	)				(10,171	)				(18,939	)				(32,345	)
Loss on debt extinguishment				—					—					—					—					(221	)
Other income (expenses), net				219					229					(943	)				740					(2,756	)
Total other expenses				(4,153	)				(2,528	)				(11,114	)				(18,199	)				(35,322	)
Income before provision for income taxes				37,823					32,065					22,805					130,813					81,420
Income tax benefit (provision)				5,162					2,208					(469	)				842					(1,171	)
Net income				42,985					34,273			$		22,336					131,655			$		80,249
Net income attributable to redeemable non-controlling interests				25,747					21,756										90,257
Net income attributable to Flowco Holdings Inc.		$		17,238			$		12,517								$		41,398
Earnings per share (1):
Basic		$		0.62			$		0.46								$		1.53
Diluted		$		0.41			$		0.32								$		1.24
Weighted average shares outstanding (1):
Basic				28,766,587					27,445,906										26,977,063
Diluted				90,064,283					90,661,805										90,673,021

(1)

The calculations of basic and diluted earnings per share and weighted average shares of common stock outstanding cover the periods after January 16, 2025, which are the periods following the Company's initial public offering and the related reorganization transactions, through the end of fourth quarter 2025.

Flowco Holdings Inc. Condensed Consolidated Balance Sheets
		As of
		December 31, 2025					December 31, 2024
		(in thousands except share and per share amounts)
Assets
Current assets:
Cash and cash equivalents		$		4,522			$		4,615
Accounts receivable, net of allowances for credit losses of $1,079 and $1,169, respectively				100,465					120,353
Inventory				149,590					151,179
Prepaid expenses and other current assets				5,615					9,982
Total current assets				260,192					286,129
Property, plant and equipment, net				797,534					702,616
Operating lease right-of-use assets				17,556					19,480
Finance lease right-of-use assets				25,861					21,871
Intangible assets, net				273,437					302,522
Goodwill				249,692					249,692
Deferred tax asset				16,692					—
Other assets				5,387					6,639
Total assets		$		1,646,351			$		1,588,949
Liabilities, redeemable non-controlling interests and stockholders'/members' equity
Current liabilities:
Accounts payable		$		22,827			$		31,321
Accrued expenses				26,909					33,829
Current portion of operating lease obligations				8,004					6,809
Current portion of finance lease obligations				12,895					7,837
Deferred revenue				7,376					8,002
Total current liabilities				78,011					87,798
Long-term liabilities:
Long-term debt, net				167,819					635,916
Tax receivable agreement liability				21,952					—
Operating lease obligations, net of current portion				9,783					12,739
Finance lease obligations, net of current portion				10,862					13,389
Total long-term liabilities				210,416					662,044
Total liabilities				288,427					749,842
Commitments and contingencies
Redeemable non-controlling interests				1,129,298					—
Members' equity:
Members' equity				—					839,107
Total members' equity				—					839,107
Stockholders' equity:
Class A common stock, $0.0001 par value – 300,000,000 shares authorized; 29,091,960 shares issued and outstanding as of December 31, 2025; no such shares authorized, issued or outstanding as of December 31, 2024.				3					—
Class B common stock, $0.0001 par value – 150,000,000 shares authorized; 60,562,983 shares issued and outstanding as of December 31, 2025; no such shares authorized, issued or outstanding as of December 31, 2024.				6					—
Additional paid-in capital				69,279					—
Retained earnings				159,338					—
Total stockholders' equity to Flowco Holdings Inc.				228,626					—
Total liabilities, redeemable non-controlling interests and members'/stockholders' equity		$		1,646,351			$		1,588,949

Flowco Holdings Inc. Condensed Consolidated Statements of Cash Flows
		Three Months Ended December 31,					Twelve Months Ended December 31,
		2025					2025					2024
		(in thousands)
Cash flows from operating activities
Net income		$		42,985			$		131,655			$		80,249
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization				38,601					144,838					90,862
Provision for inventory obsolescence				201					1,837					1,809
Amortization of operating right-of-use assets				3,200					9,827					4,326
Amortization of deferred financing costs				337					1,349					714
Loss on sale of equipment				487					742					797
Loss on debt extinguishment				—					—					221
Gain on lease termination				(153	)				(944	)				(958	)
Stock-based compensation				1,556					11,026					992
Provision for deferred income taxes				(5,162	)				(5,942	)				—
Allowance for credit losses				(536	)				1,015					636
Changes in operating assets and liabilities:
Accounts receivable				19,041					18,873					(15,487	)
Inventory				9,499					(76	)				21,920
Prepaid expenses and other current assets				2,053					4,367					(3,029	)
Other assets and liabilities				(8	)				(82	)				864
Accounts payable - trade				(9,501	)				(8,493	)				739
Accrued expenses				(7,290	)				(6,931	)				(4,246	)
Deferred revenue				(5,162	)				(626	)				(4,292	)
Operating lease liabilities				(3,496	)				(9,913	)				864
Finance lease liabilities				524					1,848					2,402
Net cash provided by operating activities				87,176					294,370					179,383
Cash flows used in investing activities
Asset acquisition				—					(71,813	)				(7,000	)
Additions to property, plant and equipment				(24,004	)				(127,287	)				(90,494	)
Payment of contingent consideration related to a business combination				—					(548	)				—
Proceeds from sale of property, plant and equipment				33					467					166
Net cash acquired in 2024 Business Combination				—					—					3,088
Payment for capitalized patent costs				(137	)				(571	)				(193	)
Net cash used in investing activities				(24,108	)				(199,752	)				(94,433	)
Cash flows used in financing activities
Issuance of Class A common stock in IPO, net of underwriting discount				—					461,803					—
Payment of offering costs				—					(2,458	)				—
Repurchase of Class A common stock				—					(15,000	)				—
Payments on long-term debt				(207,887	)				(1,114,672	)				(296,009	)
Proceeds from long-term debt				153,077					646,574					459,683
Payments on finance lease obligations				(3,919	)				(14,965	)				(7,503	)
Proceeds on finance lease terminations				120					469					715
Purchase of LLC Interests from Continuing Equity Owners				—					(20,876	)				—
Payment of debt issuance costs				—					(13	)				(6,708	)
Payment of dividend equivalent units				—					(10	)				—
Payment of tax withheld on stock-based compensation				—					(296	)				—
Distributions to members of Flowco LLC				(4,845	)				(28,548	)				(230,513	)
Dividends paid to Flowco Holdings Inc. shareholders				(2,327	)				(6,719	)				—
Net cash provided by (used in) financing activities				(65,781	)				(94,711	)				(80,335	)
Net increase (decrease) in cash and cash equivalents				(2,713	)				(93	)				4,615
Cash and cash equivalents
Beginning of period				7,235					4,615					—
End of period		$		4,522			$		4,522			$		4,615

Non-GAAP Financial Measures

In addition to our results determined in accordance with generally accepted accounting principles in the United States (“GAAP”), the Company uses non-GAAP financial measures, such as Adjusted Net Income, EBITDA, Adjusted EBITDA and Free Cash Flow, as well as Adjusted Segment EBITDA and Adjusted Segment EBITDA Margin, in this press release to supplement financial information presented in accordance with GAAP. We believe that excluding certain items from our GAAP results provides management additional insight on the consolidated financial performance from period to period to project our future consolidated financial performance as forecasts are developed at a level of detail different from that used to prepare GAAP-based financial measures. Moreover, we believe these non-GAAP financial measures provide our management and investors with useful information to help them evaluate our operating results by facilitating an enhanced understanding of our operating performance and enabling them to make more meaningful period to period comparisons. There are limitations to the use of the non-GAAP financial measures presented in this press release. For example, our non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Other companies, including companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes. Similarly, Free Cash Flow does not represent our residual cash flow for discretionary expenditures, since the calculation of this measure does not reflect certain debt service requirements or certain other non-discretionary expenditures. Non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. The Company urges investors to review the reconciliation and not to rely on any single financial measure to evaluate our business.

Adjusted Net Income

Adjusted Net Income is a non-GAAP measure that we define as net income (loss) adjusted to eliminate the impact of (i) transaction-related expenses, (ii) share-based compensation, (iii) loss on the sale of equipment, (iv) loss on debt payments and (v) changes to the value of our inventory. Adjusted Net Income is a supplemental non-GAAP financial measure used by management, our stockholders and others to provide visibility on the profitability and financial strength of the Company by excluding certain expenses related to non-recurring Company transactions.

Reconciliation from net income to Adjusted Net Income is set forth as follows:

		Three Months Ended															Twelve Months Ended December 31,
		December 31, 2025					September 30, 2025					December 31, 2024					2025					2024
		(in thousands)
Net income		$		42,985			$		34,273			$		22,336			$		131,655			$		80,249
Transaction related expenses (1)				705					—					2,727					1,204					5,810
Share-based compensation expense (2)				1,557					1,479					483					9,668					992
Non-recurring charges (3)				—					1,317					—					5,219					—
Loss on sale of equipment				487					232					70					742					797
Loss on debt extinguishment				—					—					—					—					221
Inventory valuation adjustments (4)				—					—					3,163					314					11,214
Adjusted Net Income		$		45,734			$		37,301			$		28,779			$		148,802			$		99,283

(1)	Represents the transaction-related expenses as part of the 2024 Business Combination, non-capitalizable IPO related costs and business combination expenses associated with the Valiant acquisition, which were expensed as incurred and included in the consolidated statements of operations.
(2)	Reflects non-cash compensation expense for equity-based awards to our employees and non-employee directors for the periods presented.
(3)	Represents (i) one-time charge for a settlement expense related to a lawsuit for the three months ended September 30, 2025, and (ii) termination benefits and related expenses and the costs associated with the re-purposing of one of our manufacturing facilities in Pampa, TX for the three months ended June 30, 2025.
(4)	Reflects non-cash adjustment related to inventory fair value step-up from the 2024 Business Combination which has been included in cost of sales.

Adjusted EBITDA and Adjusted EBITDA margin

We define EBITDA as net income, adjusted to exclude interest expense, provision for income taxes and depreciation and amortization. We define Adjusted EBITDA as EBITDA adjusted to exclude (i) share-based compensation expense, (ii) business combination-related expenses and (iii) other non-cash and non-recurring expenses.

EBITDA and Adjusted EBITDA are key performance indicators we use in evaluating our operating performance and in making financial, operating and planning decisions. In particular, the exclusion of certain expenses in calculating EBITDA and Adjusted EBITDA provides additional visibility on operating performance across reporting periods by removing the effect of non-cash and/or non-recurring expenses. Accordingly, we believe that this measure provides useful information to our stockholders and others in understanding and evaluating our operating results in the same manner as our management and board of directors.

Reconciliation from net income to EBITDA and Adjusted EBITDA are set forth as follows:

		Three Months Ended									Twelve Months Ended December 31,
		December 31, 2025			September 30, 2025			December 31, 2024			2025			2024
		(in thousands)
Net income		$	42,985		$	34,273		$	22,336		$	131,655		$	80,249
Interest expense			4,372			2,757			10,171			18,939			32,345
Income tax benefit (provision)			(5,162)			(2,208)			469			(842)			1,171
Depreciation and amortization			38,601			38,953			34,360			144,838			90,862
EBITDA			80,796			73,775			67,336			294,590			204,627
Transaction related expenses (1)			705			—			2,727			1,204			5,810
Share-based compensation expense (2)			1,557			1,479			483			9,668			992
Non-recurring charges (3)			—			1,317			—			5,219			—
Loss on sale of equipment			487			232			70			742			797
Loss on debt extinguishment			—			—			—			—			221
Inventory valuation adjustments (4)			—			—			3,163			314			11,214
Adjusted EBITDA		$	83,545		$	76,803		$	73,779		$	311,737		$	223,661

(1)	Represents the transaction-related expenses as part of the 2024 Business Combination, non-capitalizable IPO related costs and business combination expenses associated with the Valiant acquisition, which were expensed as incurred and included in the consolidated statements of operations.
(2)	Reflects non-cash compensation expense for equity-based awards to our employees and non-employee directors for the periods presented.
(3)	Represents (i) one-time charge for a settlement expense related to a lawsuit for the three months ended September 30, 2025, and (ii) termination benefits and related expenses and the costs associated with the re-purposing of one of our manufacturing facilities in Pampa, TX for the three months ended June 30, 2025.
(4)	Reflects non-cash adjustment related to inventory fair value step-up from the 2024 Business Combination which has been included in cost of sales.

Adjusted Segment EBITDA and Adjusted Segment EBITDA Margin

In addition to business segment profit or loss, our management also evaluates Adjusted Segment EBITDA, which is presented on a business unit level for purposes of allocating resources and evaluating operating and financial performance. As discussed above, the Company operates and manages its business units in the following two operating and reporting segments:

• Production Solutions: relates to rentals, sales and services related to high pressure gas lift, conventional gas lift and plunger lift. This segment includes rental, sales and service revenues.
• Natural Gas Technologies: relates to the design, manufacturing, rental, sale and servicing of vapor recovery and natural gas systems. This segment includes rental, sales, service revenues and methane abatement technology.

We define Adjusted Segment EBITDA as segment net income, as adjusted in the same manner as defined for EBITDA and Adjusted EBITDA above. Reconciliation from segment net income, which includes direct segment costs but excludes corporate costs not directly related to either segment, to Adjusted Segment EBITDA is set forth as follows:

		Three Months Ended									Twelve Months Ended December 31,
		December 31, 2025			September 30, 2025			December 31, 2024			2025			2024
		(in thousands)
Production Solutions
Net income		$	33,236		$	31,734		$	29,712		$	126,678		$	73,385
Interest expense			219			(1,651)			(3,031)			963			13,455
Income tax benefit (provision)			(25)			—			356			239			770
Depreciation and amortization			22,832			23,577			20,198			84,215			61,475
EBITDA			56,262			53,660			47,235			212,095			149,085
Transaction related expenses (1)			705			—			—			705			1,028
Share-based compensation expense (2)			—			—			329			1,280			700
Non-recurring charges (3)			—			1,317			—			1,317			—
(Gain) loss on sale of equipment			510			283			41			959			784
Loss on debt extinguishment			—			—			(221)			—			—
Inventory valuation adjustments (4)			—			—			2,545			314			9,757
Adjusted Segment EBITDA			57,477			55,260			49,929			216,670			161,354
Natural Gas Technologies
Net income		$	14,037		$	9,774		$	14,542		$	46,672		$	29,519
Interest expense			207			224			(1,816)			857			3,135
Income tax benefit (provision)			—			1			113			142			401
Depreciation and amortization			15,761			15,369			14,162			60,596			29,387
EBITDA			30,005			25,368			27,001			108,267			62,442
Transaction related expenses (1)			—			—			—			—			2,055
Share-based compensation expense (2)			—			—			154			2,308			292
Non-recurring charges (3)			—			—			—			1,000			—
(Gain) loss on sale of equipment			(23)			(51)			29			(217)			13
Inventory valuation adjustments (4)			—			—			618			—			1,457
Adjusted Segment EBITDA			29,982			25,317			27,802			111,358			66,259
Corporate
Net income		$	(4,288)		$	(7,235)		$	(21,918)		$	(41,695)		$	(22,655)
Interest expense			3,946			4,184			15,018			17,119			15,755
Income tax benefit (provision)			(5,137)			(2,209)			—			(1,223)			—
Depreciation and amortization			8			7			—			27			—
EBITDA			(5,471)			(5,253)			(6,900)			(25,772)			(6,900)
Transaction related expenses (1)			—			—			2,727			499			2,727
Share-based compensation expense (2)			1,557			1,479			—			6,080			—
Non-recurring charges (3)			—			—			—			2,902			—
(Gain) loss on sale of equipment			—			—			—			—			—
Loss on debt extinguishment			—			—			221			—			221
Inventory valuation adjustments (4)			—			—			—			—			—
Adjusted Segment EBITDA			(3,914)			(3,774)			(3,952)			(16,291)			(3,952)
Total Adjusted EBITDA		$	83,545		$	76,803		$	73,779		$	311,737		$	223,661

(1)	Represents the transaction-related expenses as part of the 2024 Business Combination, non-capitalizable IPO related costs and business combination expenses associated with the Valiant acquisition, which were expensed as incurred and included in the consolidated statements of operations.
(2)	Reflects non-cash compensation expense for equity-based awards to our employees and non-employee directors for the periods presented.
(3)	Represents (i) one-time charge for a settlement expense related to a lawsuit for the three months ended September 30, 2025 (Production Solutions) and (ii) termination benefits and related expenses (Corporate) and the costs associated with the re-purposing of one of our manufacturing facilities in Pampa, TX (Natural Gas Technologies) for the three months ended June 30, 2025.
(4)	Reflects non-cash adjustment related to inventory fair value step-up from the 2024 Business Combination which has been included in cost of sales.

Free Cash Flow

Free Cash Flow is a non-GAAP measure that we define as cash flow provided by operating activities less additions to property, plant and equipment (which includes both maintenance and growth capital expenditures, but excludes asset acquisitions of a business, and excludes other business acquisitions and equity investments). Management believes this information is important to provide because it is used by management to evaluate the Company’s operational performance and trends between periods and to manage our business. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s results of ongoing operations. Free Cash Flow is not intended to replace GAAP financial measures. A reconciliation of net cash provided by operating activities to Free Cash Flow, as well as Free Cash Flow (Deficit) after Asset Acquisition, is set forth as follows:

		Three Months Ended December 31,					Twelve Months Ended December 31,
		2025					2025					2024
		(in thousands)
Net cash provided by operating activities		$		87,176			$		294,370			$		179,383
Additions to property, plant and equipment				(24,004	)				(127,287	)				(90,494	)
Free Cash Flow				63,172					167,083					88,889
Asset acquisition				—					(71,813	)				(7,000	)
Free Cash Flow (Deficit) after Asset Acquisition		$		63,172			$		95,270			$		81,889

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260225981033/en/

Investor Contact:

Andrew Leonpacher | VP of Finance, Corporate Development, and Investor Relations

andrew.leonpacher@flowco-inc.com

(713) 997-4647

Media Contact:

Cheryl Brashear-White | VP of Marketing Communications

cheryl.white@flowco-inc.com

(405) 819-5290

Source: Flowco Holdings Inc.