Flowco Holdings Inc. Reports Third Quarter 2026 Results

Natural Gas Technologies revenue increased sequentially, but its adjusted segment earnings margin fell to 38.6%.

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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 third quarter ended September 30, 2026.

Key Third Quarter 2026 Highlights

• Revenues of $258.6 million, generating net income of $40.7 million and Adjusted Net Income¹ of $48.0 million
• Adjusted EBITDA¹ of $103.9 million
• Adjusted EBITDA Margin¹ of 40.2%
• Net cash provided by operating activities of $103.1 million and Free Cash Flow¹ of $72.4 million
• In October 2026, Flowco’s Board of Directors approved a quarterly cash dividend of $0.09 per share
• In November 2026, Flowco announced the approval by its Board of Directors of a $150 million increase to the Company's existing share repurchase authorization, bringing the total authorization to $200 million
• Robust liquidity with approximately $365 million of availability under our revolving credit facility as of October 30, 2026

Financial Summary

		Three Months Ended
		September 30, 2026					June 30, 2026					September 30, 2025
		(in thousands)
Revenues		$		258,622			$		235,859			$		176,941
Net income				40,713					30,944					34,273
Adjusted Net Income (1)				47,973					34,267					37,301
Adjusted EBITDA (1)				103,865					93,884					76,803
Adjusted EBITDA Margin (1)				40.2	%				39.8	%				43.4	%

(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 delivered a strong third quarter, with Adjusted EBITDA exceeding the high end of our guidance range and approximately $72 million of free cash flow, representing roughly 70% free cash flow conversion from Adjusted EBITDA. Our performance reflects the benefits of our production optimization orientation and consistent execution across both of our segments. In addition to the continued performance of our rental revenue base, we benefited from accelerated revenue associated with the release of certain rental systems within Surface Equipment, which we are actively working to redeploy based on identified customer demand.

U.S. operators’ focus on enhancing returns from existing assets is driving demand for our solutions as we advance our strategic priorities, including international growth. Valiant continues to exceed our expectations and recently secured an award for future work from a large independent operator through an existing Flowco relationship, demonstrating the cross-selling opportunities across our platform. Subsequent to quarter-end, we completed our acquisition of Lifting Solutions, a meaningful step in expanding our international presence. We are encouraged by the early international momentum across our business units, including incremental orders for ESPs and gas lift equipment in Venezuela and the Middle East, and we believe Lifting Solutions provides an attractive platform to accelerate these efforts.

Our durable cash flow generation and balance sheet provide the flexibility to pursue strategic growth, both organically and through acquisitions like Valiant and Lifting Solutions, while also returning capital to shareholders through dividends and repurchases under our recently expanded authorization. We remain committed to disciplined capital allocation as we seek to create long-term value for our shareholders.”

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, electric submersible pumps (ESP), 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
		September 30, 2026				June 30, 2026				September 30, 2025
		(in thousands)
Production Solutions
Revenues		$	178,616			$	170,878			$	125,596
Adjusted Segment EBITDA (1)			77,959				71,019				55,260
Adjusted Segment EBITDA Margin (1)			43.6	%			41.6	%			44.0	%
Natural Gas Technologies
Revenues		$	80,006			$	64,981			$	51,345
Adjusted Segment EBITDA (1)			30,876				27,759				25,317
Adjusted Segment EBITDA Margin (1)			38.6	%			42.7	%			49.3	%
Corporate
Adjusted Segment EBITDA (1)		$	(4,970	)		$	(4,894	)		$	(3,774	)
Adjusted Segment EBITDA Margin (1)			nm				nm				nm
Total
Revenues		$	258,622			$	235,859			$	176,941
Adjusted EBITDA (1)			103,865				93,884				76,803
Adjusted EBITDA Margin (1)			40.2	%			39.8	%			43.4	%

(1)	Adjusted Segment EBITDA and Adjusted Segment EBITDA Margin 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 release.

Production Solutions

Third quarter 2026 revenue and Adjusted Segment EBITDA for the Production Solutions segment increased 4.5% and 9.8%, respectively, from the second quarter of 2026, driven by higher Surface Equipment revenue and Adjusted EBITDA. Adjusted Segment EBITDA Margin increased 209 basis points, primarily reflecting a higher proportion of Surface Equipment revenue within the quarter. Third quarter 2026 revenue included approximately $9 million in accelerated rental revenue associated with the release of certain Surface Equipment systems.

Natural Gas Technologies

Third quarter 2026 revenue and Adjusted Segment EBITDA for the Natural Gas Technologies segment increased 23.1% and 11.2%, respectively, from the second quarter of 2026, primarily due to an increase in Natural Gas Systems sales. Adjusted Segment EBITDA Margin decreased 413 basis points, primarily reflecting a higher proportion of Natural Gas Systems revenue within the quarter.

Corporate

Third quarter 2026 Corporate Adjusted Segment EBITDA was largely unchanged at $(5.0) million, compared to $(4.9) million in the second quarter of 2026.

Balance Sheet & Liquidity

As of October 30, 2026, the Company had outstanding borrowings under its senior secured revolving credit facility (“Credit Agreement”) of $355.7 million and, with a current borrowing base of $721.8 million, had availability under the Credit Agreement of $364.8 million.

Dividend Declaration

On October 30, 2026, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.09 per share of Class A common stock payable on November 24, 2026 to Class A common stockholders of record as of the close of business on November 13, 2026. Flowco MergeCo LLC, the Company’s operating subsidiary, will make a corresponding distribution of $0.09 per unit to holders of its common units.

Share Repurchase Program

On November 2, 2026, the Company announced that its Board of Directors approved a $150 million increase to the Company’s existing share repurchase program, bringing the total authorization to $200 million of the Company’s Class A common stock. The expanded program has no expiration date.

Conference Call and Webcast Information

Flowco will host a conference call on Wednesday, November 4, 2026, at 8:00 a.m. Eastern Time to discuss third quarter 2026 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 three 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 13763393. 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’s 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, 2025, in our subsequent quarterly reports on Form 10-Q and in our other filings 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															Nine Months Ended
		September 30, 2026					June 30, 2026					September 30, 2025					September 30, 2026					September 30, 2025
		(in thousands except share and per share amounts)
Revenues:
Rentals		$		141,756			$		132,670			$		106,966			$		396,299			$		306,366
Sales				116,866					103,189					69,975					307,712					256,140
Total revenues				258,622					235,859					176,941					704,011					562,506
Operating expenses:
Cost of rentals (exclusive of depreciation and amortization disclosed separately below)				36,870					35,221					29,295					104,643					83,748
Cost of sales (exclusive of depreciation and amortization disclosed separately below)				84,646					74,209					44,888					221,259					173,033
Selling, general and administrative expenses				39,846					35,655					28,980					111,977					92,197
Depreciation and amortization				48,907					49,372					38,953					139,774					106,237
Loss on sale of equipment				422					184					232					916					255
Income from operations				47,931					41,218					34,593					125,442					107,036
Other expenses:
Interest expense, net				(4,856	)				(5,597	)				(2,757	)				(14,801	)				(14,567	)
Other income (expense), net				(233	)				(29	)				229					(723	)				521
Total other expenses				(5,089	)				(5,626	)				(2,528	)				(15,524	)				(14,046	)
Income before provision for income taxes				42,842					35,592					32,065					109,918					92,990
Income tax benefit (provision)				(2,129	)				(4,648	)				2,208					(10,807	)				(4,320	)
Net income				40,713					30,944					34,273					99,111					88,670
Net income attributable to redeemable non-controlling interests				20,588					18,429					21,756					59,029					64,510
Net income attributable to Flowco Holdings Inc.		$		20,125			$		12,515			$		12,517			$		40,082			$		24,160
Earnings per share:
Basic		$		0.45			$		0.29			$		0.46			$		1.01			$		0.92
Diluted		$		0.40			$		0.28			$		0.32			$		0.94			$		0.82
Weighted average shares outstanding:
Basic				44,363,299					42,857,602					27,445,906					39,678,482					26,338,938
Diluted				91,410,610					43,971,042					90,661,805					91,348,060					90,890,091

Flowco Holdings Inc. Condensed Consolidated Balance Sheets
		As of
		September 30, 2026					December 31, 2025
		(in thousands except share and per share amounts)
Assets
Current assets:
Cash and cash equivalents		$		137,815			$		4,522
Accounts receivable, net of allowances for credit losses				146,631					100,465
Inventory				189,608					149,590
Prepaid expenses and other current assets				30,235					5,615
Total current assets				504,289					260,192
Property, plant and equipment, net				855,821					797,534
Operating lease right-of-use assets				25,713					17,556
Finance lease right-of-use assets				29,018					25,861
Intangible assets, net				296,955					273,437
Goodwill				304,002					249,692
Deferred tax asset				40,808					16,692
Other assets				4,414					5,387
Total assets		$		2,061,020			$		1,646,351
Liabilities, redeemable non-controlling interests and stockholders' equity
Current liabilities:
Accounts payable		$		49,527			$		22,827
Accrued expenses				66,364					26,909
Current portion of tax receivable agreement liability				3,500					—
Current portion of operating lease obligations				8,479					8,004
Current portion of finance lease obligations				14,089					12,895
Deferred revenue				16,034					7,376
Total current liabilities				157,993					78,011
Long-term liabilities:
Long-term debt, net				363,449					167,819
Tax receivable agreement liability				131,898					21,952
Operating lease obligations, net of current portion				17,504					9,783
Finance lease obligations, net of current portion				11,318					10,862
Total long-term liabilities				524,169					210,416
Total liabilities				682,162					288,427
Commitments and contingencies
Redeemable non-controlling interests				833,060					1,129,298
Stockholders' equity:
Class A common stock, $0.0001 par value – 300,000,000 shares authorized; 44,960,812 shares issued and outstanding as of September 30, 2026; 300,000,000 shares authorized; 29,091,960 shares issued and outstanding as of December 31, 2025.				4					3
Class B common stock, $0.0001 par value – 150,000,000 shares authorized; 45,439,646 shares issued and outstanding as of September 30, 2026; 150,000,000 shares authorized; 60,562,983 shares issued and outstanding as of December 31, 2025.				5					6
Additional paid-in capital				344,945					40,731
Retained earnings				200,844					187,886
Total stockholders' equity to Flowco Holdings Inc.				545,798					228,626
Total liabilities, redeemable non-controlling interests and stockholders' equity		$		2,061,020			$		1,646,351

Flowco Holdings Inc. Condensed Consolidated Statements of Cash Flows
		Three Months Ended September 30,										Nine Months Ended September 30,
		2026					2025					2026					2025
		(in thousands)
Cash flows from operating activities
Net income		$		40,713			$		34,273			$		99,111			$		88,670
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization				48,907					38,953					139,774					106,237
Provision for inventory obsolescence				655					362					1,807					1,636
Amortization of operating right-of-use assets				2,757					2,616					8,056					6,627
Amortization of deferred financing costs				338					338					1,013					1,012
Loss on sale of equipment				422					232					916					255
Gain on lease termination				(24	)				(528	)				(66	)				(791	)
Stock-based compensation				4,262					1,479					10,422					9,470
Provision for deferred income taxes				1,769					(2,208	)				9,554					(780	)
Allowance for credit losses				376					610					959					1,551
Changes in operating assets and liabilities:
Accounts receivable				(1,538	)				3,188					(16,534	)				(168	)
Inventory				(4,614	)				(8,634	)				(7,026	)				(9,575	)
Prepaid expenses and other current assets				(4,791	)				1,700					(17,566	)				2,314
Other assets and liabilities				5					(8	)				(41	)				(74	)
Accounts payable - trade				4,243					(1,006	)				20,254					1,008
Accrued expenses				16,126					7,054					30,163					359
Deferred revenue				(2,879	)				6,615					4,498					4,536
Operating lease liabilities				(2,994	)				(2,826	)				(8,552	)				(6,417	)
Finance lease liabilities				(632	)				257					299					1,324
Net cash provided by operating activities				103,101					82,467					277,041					207,194
Cash flows from investing activities
Net cash paid in Valiant acquisition				—					—					(161,846	)				—
Asset acquisition				—					(71,813	)				—					(71,813	)
Additions to property, plant and equipment				(30,710	)				(39,663	)				(102,569	)				(103,283	)
Payment of contingent consideration related to a business combination				—					(548	)				—					(548	)
Proceeds from sale of property, plant and equipment				227					164					332					434
Payment for capitalized patent costs				(180	)				(339	)				(494	)				(434	)
Net cash used in investing activities				(30,663	)				(112,199	)				(264,577	)				(175,644	)
Cash flows from 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	)				(16,516	)				(15,000	)
Payments on long-term debt				(244,417	)				(166,788	)				(780,820	)				(906,785	)
Proceeds from long-term debt				309,458					222,366					976,450					493,497
Payments on finance lease obligations				(4,668	)				(5,383	)				(12,888	)				(11,046	)
Proceeds on finance lease terminations				132					36					168					349
Purchase of LLC Interests from Continuing Equity Owners				—					—					—					(20,876	)
Payment of debt issuance costs				—					—					—					(13	)
Payment of dividend equivalent units				(29	)				(10	)				(31	)				(10	)
Payments of selling commissions and fees				—					—					(69	)				—
Distributions to members of Flowco LLC				(4,174	)				(4,911	)				(29,215	)				(23,703	)
Dividends paid to Flowco Holdings Inc. shareholders				(10,114	)				(2,334	)				(16,250	)				(4,392	)
Net cash provided by (used in) financing activities				46,188					27,680					120,829					(28,930	)
Net increase (decrease) in cash and cash equivalents				118,626					(2,052	)				133,293					2,620
Cash and cash equivalents
Beginning of period				19,189					9,287					4,522					4,615
End of period		$		137,815			$		7,235			$		137,815			$		7,235

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, and (iv) non-recurring charges.  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
		September 30, 2026					June 30, 2026					September 30, 2025
		(in thousands)
Net income		$		40,713			$		30,944			$		34,273
Transaction-related expenses (1)				1,716					66					—
Share-based compensation expense (2)				4,262					3,073					1,479
Non-recurring charges (3)				860					—					1,317
Loss on sale of equipment				422					184					232
Adjusted Net Income		$		47,973			$		34,267			$		37,301

(1)	Represents transaction-related and business combination expenses associated with the Lifting Solutions acquisition that began to be incurred in the third quarter 2026. These costs were expensed as incurred and included in the consolidated statements of operations.
(2)	Reflects non-cash compensation expense for equity-based awards granted to our employees and non-employee directors, including expense associated with the accelerated vesting of certain employee awards during the third quarter 2026.
(3)	Represents one-time charges within the Production Solutions segment, including (i) termination benefits and related expenses associated with the departures of executive officers during the third quarters of 2026 and 2025 and (ii) a litigation settlement expense during the third quarter of 2025.

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) transaction-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
		September 30, 2026				June 30, 2026				September 30, 2025
		(in thousands)
Net income		$	40,713			$	30,944			$	34,273
Interest expense			4,856				5,597				2,757
Income tax benefit (provision)			2,129				4,648				(2,208	)
Depreciation and amortization			48,907				49,372				38,953
EBITDA			96,605				90,561				73,775
Transaction-related expenses (1)			1,716				66				—
Share-based compensation expense (2)			4,262				3,073				1,479
Non-recurring charges (3)			860				—				1,317
Loss on sale of equipment			422				184				232
Adjusted EBITDA		$	103,865			$	93,884			$	76,803

(1)	Represents transaction-related and business combination expenses associated with the Lifting Solutions acquisition that began to be incurred in the third quarter 2026. These costs were expensed as incurred and included in the consolidated statements of operations.
(2)	Reflects non-cash compensation expense for equity-based awards granted to our employees and non-employee directors, including expense associated with the accelerated vesting of certain employee awards during the third quarter 2026.
(3)	Represents one-time charges within the Production Solutions segment, including (i) termination benefits and related expenses associated with the departures of executive officers during the third quarters of 2026 and 2025 and (ii) a litigation settlement expense during the third quarter of 2025.

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, electric submersible pumps (ESP), 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 and service revenues.

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
		September 30, 2026				June 30, 2026				September 30, 2025
		(in thousands)
Production Solutions
Net income		$	43,730			$	38,296			$	31,734
Interest expense			10				176				(1,651	)
Income tax benefit (provision)			—				89				—
Depreciation and amortization			32,928				32,197				23,577
EBITDA			76,668				70,758				53,660
Non-recurring charges (3)			860				—				1,317
(Gain) loss on sale of equipment			431				261				283
Adjusted Segment EBITDA			77,959				71,019				55,260
Natural Gas Technologies
Net income		$	14,760			$	10,502			$	9,774
Interest expense			165				170				224
Income tax benefit (provision)			1				—				1
Depreciation and amortization			15,959				17,164				15,369
EBITDA			30,885				27,836				25,368
(Gain) loss on sale of equipment			(9	)			(77	)			(51	)
Adjusted Segment EBITDA			30,876				27,759				25,317
Corporate
Net income		$	(17,777	)		$	(17,854	)		$	(7,235	)
Interest expense			4,681				5,251				4,184
Income tax benefit (provision)			2,128				4,559				(2,209	)
Depreciation and amortization			20				11				7
EBITDA			(10,948	)			(8,033	)			(5,253	)
Transaction-related expenses (1)			1,716				66				—
Share-based compensation expense (2)			4,262				3,073				1,479
Adjusted Segment EBITDA			(4,970	)			(4,894	)			(3,774	)
Total Adjusted EBITDA		$	103,865			$	93,884			$	76,803

(1)	Represents transaction-related and business combination expenses associated with the Lifting Solutions acquisition that began to be incurred in the third quarter 2026. These costs were expensed as incurred and included in the consolidated statements of operations.
(2)	Reflects non-cash compensation expense for equity-based awards granted to our employees and non-employee directors, including expense associated with the accelerated vesting of certain employee awards during the third quarter 2026.
(3)	Represents one-time charges within the Production Solutions segment, including (i) termination benefits and related expenses associated with the departures of executive officers during the third quarters of 2026 and 2025 and (ii) a litigation settlement expense during the third quarter of 2025.

Free Cash Flow; Free Cash Flow Conversion

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. Free Cash Flow Conversion is a non-GAAP measure that we define as Free Cash Flow divided by Adjusted EBITDA. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s cash flows and results of ongoing operations.

A reconciliation of net cash provided by operating activities to Free Cash Flow, as well as Free Cash Flow (Deficit) after net cash paid in acquisitions, is set forth as follows:  

		Three Months Ended September 30,										Nine Months Ended September 30,
		2026					2025					2026					2025
		(in thousands)
Net cash provided by operating activities		$		103,101			$		82,467			$		277,041			$		207,194
Additions to property, plant and equipment				(30,710	)				(39,663	)				(102,569	)				(103,283	)
Free Cash Flow		$		72,391			$		42,804			$		174,472			$		103,911
Net cash paid in acquisitions				—					(71,813	)				(161,846	)				(71,813	)
Free Cash Flow (Deficit) after Net Cash Paid in Acquisition		$		72,391			$		(29,009	)		$		12,626			$		32,098
Adjusted EBITDA		$		103,865			$		76,803			$		283,283			$		228,192
Free Cash Flow Conversion				69.7	%				55.7	%				61.6	%				45.5	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261104909918/en/

Investor Contact:
Andrew Leonpacher | VP of Finance, Corporate Development, and Investor Relations
investor.relations@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.

Key Terms

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.

electric submersible pumps technical

Electric submersible pumps are electrically driven machines placed downhole or underwater to lift liquids—commonly oil, water or mixed fluids—from deep wells or reservoirs to the surface. Investors care because these pumps are critical to maintaining or increasing production rates; like a high-powered blender buried at the bottom of a bottle, their reliability and efficiency directly affect output, operating costs and the value of assets that depend on steady fluid flow.

senior secured revolving credit facility financial

A senior secured revolving credit facility is a multi‑use bank lending line that a company can draw, repay and redraw as needed, backed by specific assets and ranked first in repayment order if the company defaults. Think of it like a collateralized credit card that gives flexible short‑term cash while lenders hold priority to recover their money; investors watch it because it affects a company’s liquidity, borrowing cost, and who gets paid first in financial distress.