Flowco Holdings Inc. Reports First Quarter 2026 Results

Flowco Holdings Inc. Reports First Quarter 2026 Results 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 first quarter ended March 31, 2026. Key First Quarter 2026 Highlights Revenues of $209.5 million, generating net income of $27.5 million and Adjusted Net Income 1 of $35.7 millionAdjusted EBITDA 1 of $85.5 millionAdjusted EBITDA Margin 1 of 40.8%Net cash provided by operating activities of $78.7 million and Free Cash Flow 1 of $52.3 millionReturned $16.5 million of cash to shareholders through share repurchasesIn May 2026, Flowco’s Board of Directors approved a 12.5% increase to the quarterly cash dividend to $0.09 per shareRobust liquidity with approximately $387.5 million of availability under our revolving credit facility as of May 1, 2026On March 2, 2026, Flowco closed on its previously announced acquisition of Valiant Artificial Lift Solutions LLC (“Valiant”) Financial Summary Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 (in thousands) Revenues $ 209,530 $ 197,213 $ 192,350 Net income 27,454 42,985 27,045 Adjusted Net Income (1) 35,661 45,734 32,769 Adjusted EBITDA (1) 85,534 83,545 74,901 Adjusted EBITDA Margin (1) 40.8 % 42.4 % 38.9 % (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 first quarter, generating meaningful free cash flow and Adjusted EBITDA growth, while sustaining industry-leading margins through disciplined execution across both operating segments. During the quarter, we successfully closed our acquisition of Valiant Artificial Lift Solutions, and we believe the integration is progressing well. We are encouraged by the early alignment across the organization and our expanded ability to support customers across a broader range of artificial lift solutions throughout the life of the well. As we look ahead, a growing global focus on energy security is reinforcing the need for reliable, diversified sources of supply and highlighting the role of U.S. oil and natural gas production. As a North American-focused business, we have remained insulated from recent international market disruptions and are well positioned as this environment supports incremental activity across the region. We expect this dynamic to drive continued demand for production optimization and artificial lift solutions, as operators remain disciplined while prioritizing efficiency gains from existing production. This outlook supports our anticipated earnings growth profile through the remainder of the year and our ability to drive 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 pump (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 March 31, 2026 December 31, 2025 March 31, 2025 (in thousands) Production Solutions Revenues $ 140,163 $ 127,442 $ 115,992 Adjusted Segment EBITDA (1) 61,469 57,477 50,590 Adjusted Segment EBITDA Margin (1) 43.9 % 45.1 % 43.6 % Natural Gas Technologies Revenues $ 69,367 $ 69,771 $ 76,358 Adjusted Segment EBITDA (1) 29,665 29,982 28,662 Adjusted Segment EBITDA Margin (1) 42.8 % 43.0 % 37.5 % Corporate Adjusted Segment EBITDA (1) $ (5,600 ) $ (3,914 ) $ (4,351 ) Adjusted Segment EBITDA Margin (1) nm nm nm Total Revenues $ 209,530 $ 197,213 $ 192,350 Adjusted Segment EBITDA (1) 85,534 83,545 74,901 Adjusted Segment EBITDA Margin (1) 40.8 % 42.4 % 38.9 % (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 First quarter 2026 revenue and Adjusted Segment EBITDA for the Production Solutions segment increased 10.0% and 6.9%, respectively, from the fourth quarter of 2025, driven by higher Surface Equipment revenue and one month of earnings contribution from Valiant, which added an ESP offering to our Production Solutions segment. Adjusted Segment EBITDA margin decreased 125 basis points, reflecting a revenue mix shift. Natural Gas Technologies First quarter 2026 revenue for the Natural Gas Technologies segment decreased 0.6% from the fourth quarter of 2025, primarily due to lower Vapor Recovery system sales, partially offset by increased Vapor Recovery rentals and Natural Gas Systems sales. Adjusted Segment EBITDA decreased 1.1% quarter over quarter, while Adjusted Segment EBITDA Margin was effectively flat. Corporate Corporate Adjusted Segment EBITDA for the first quarter 2026 was $(5.6) million, compared to $(3.9) million for the fourth quarter of 2025. This decrease was driven primarily by incremental filing and legal expenses associated with our Form S-3 filing on February 4, 2026 and subsequent public secondary equity offering by selling stockholders. Balance Sheet & Liquidity As of May 1, 2026, the Company had outstanding borrowings under its senior secured revolving credit facility (“Credit Agreement”) of $332.9 million and, with a current borrowing base of $721.6 million, had availability under the Credit Agreement of $387.5 million. Dividend Declaration On May 1, 2026, Flowco announced that its Board of Directors declared an increased quarterly cash dividend of $0.09 per share of Class A common stock, representing a 12.5% increase, payable on May 27, 2026 to Class A common stockholders of record as of the close of business on May 15, 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. Conference Call and Webcast Information Flowco will host a conference call on Wednesday, May 6, 2026, at 8:00 a.m. Eastern Time to discuss first quarter 2026 results. The conference call can be accessed live over the phone by dialing 1-800-717-1738 (for the U.S.) or 1-646-307-1865 (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 1190872. 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 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 March 31, 2026 December 31, 2025 March 31, 2025 (in thousands except share and per share amounts) Revenues: Rentals $ 121,873 $ 111,592 $ 97,296 Sales 87,657 85,621 95,054 Total revenues 209,530 197,213 192,350 Operating expenses: Cost of rentals (exclusive of depreciation and amortization disclosed separately below) 32,552 30,593 26,851 Cost of sales (exclusive of depreciation and amortization disclosed separately below) 62,404 59,176 65,566 Selling, general and administrative expenses 36,476 26,380 30,534 Depreciation and amortization 41,495 38,601 34,119 (Gain) loss on sale of equipment 310 487 (45 ) Income from operations 36,293 41,976 35,325 Other expenses: Interest expense, net (4,348 ) (4,372 ) (5,365 ) Other expenses, net (461 ) 219 (267 ) Total other expenses (4,809 ) (4,153 ) (5,632 ) Income before provision for income taxes 31,484 37,823 29,693 Provision for income taxes (4,030 ) 5,162 (2,648 ) Net income 27,454 42,985 27,045 Net income attributable to redeemable non-controlling interests 20,012 25,747 20,873 Net income attributable to Flowco Holdings Inc. $ 7,442 $ 17,238 $ 6,172 Earnings per share (1): Basic $ 0.24 $ 0.62 $ 0.24 Diluted $ 0.23 $ 0.41 $ 0.24 Weighted average shares outstanding (1): Basic 31,620,520 28,766,587 25,721,620 Diluted 32,719,382 90,064,283 26,187,264 (1) The calculations of basic and diluted earnings per share for the three months ended March 31, 2025, have been calculated based solely on the post-IPO period, as earnings per share is not meaningful for the period from January 1, 2025 to January 15, 2025, due to the different capital structure. Flowco Holdings Inc. Condensed Consolidated Balance Sheets As of March 31, 2026 December 31, 2025 (in thousands except share and per share amounts) Assets Current assets: Cash and cash equivalents $ 17,337 $ 4,522 Accounts receivable, net of allowances for credit losses of $1,284 and $1,079, respectively 146,068 100,465 Inventory 185,972 149,590 Prepaid expenses and other current assets 6,248 5,615 Total current assets 355,625 260,192 Property, plant and equipment, net 853,862 797,534 Operating lease right-of-use assets 16,871 17,556 Finance lease right-of-use assets 25,098 25,861 Intangible assets, net 315,992 273,437 Goodwill 305,248 249,692 Deferred tax asset 20,046 16,692 Other assets 5,092 5,387 Total assets $ 1,897,834 $ 1,646,351 Liabilities, redeemable non-controlling interests and stockholders' equity Current liabilities: Accounts payable $ 45,221 $ 22,827 Accrued expenses 31,658 26,909 Current portion of operating lease obligations 8,354 8,004 Current portion of finance lease obligations 13,010 12,895 Deferred revenue 16,732 7,376 Total current liabilities 114,975 78,011 Long-term liabilities: Long-term debt, net 327,991 167,819 Tax receivable agreement liability 92,437 21,952 Operating lease obligations, net of current portion 8,733 9,783 Finance lease obligations, net of current portion 9,851 10,862 Total long-term liabilities 439,012 210,416 Total liabilities 553,987 288,427 Commitments and contingencies Redeemable non-controlling interests 1,007,625 1,129,298 Stockholders' equity: Class A common stock, $0.0001 par value – 300,000,000 shares authorized; 41,816,350 shares issued and outstanding as of March 31, 2026; 300,000,000 shares authorized; 25,721,620 shares issued and outstanding as of December 31, 2025. 4 3 Class B common stock, $0.0001 par value – 150,000,000 shares authorized; 48,521,254 shares issued and outstanding as of March 31, 2026; 150,000,000 shares authorized; 64,823,042 shares issued and outstanding as of December 31, 2025. 5 6 Additional paid-in capital 336,213 69,279 Retained earnings — 159,338 Total stockholders' equity to Flowco Holdings Inc. 336,222 228,626 Total liabilities, redeemable non-controlling interests and stockholders' equity $ 1,897,834 $ 1,646,351 Flowco Holdings Inc. Condensed Consolidated Statements of Cash Flows Three Months Ended March 31, 2026 2025 (in thousands) Cash flows from operating activities Net income $ 27,454 $ 27,045 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 41,495 34,119 Provision for inventory obsolescence 404 603 Amortization of operating right-of-use assets 2,542 2,052 Amortization of deferred financing costs 338 335 (Gain) loss on sale of equipment 310 (45 ) Loss on debt extinguishment — — Gain on lease termination (19 ) (190 ) Stock-based compensation 3,086 4,962 Provision for deferred income taxes 4,030 2,648 Allowance for credit losses 373 407 Changes in operating assets and liabilities: Accounts receivable (15,385 ) (14,355 ) Inventory (1,302 ) (6,380 ) Prepaid expenses and other current assets 654 461 Other assets and liabilities (43 ) — Accounts payable - trade 15,948 401 Accrued expenses (3,897 ) (6,943 ) Deferred revenue 5,021 (426 ) Operating lease liabilities (2,804 ) (1,848 ) Finance lease liabilities 503 (297 ) Net cash provided by operating activities 78,708 42,549 Cash flows used in investing activities Net cash paid in Valiant acquisition (161,764 ) — Additions to property, plant and equipment (26,385 ) (27,850 ) Proceeds from sale of property, plant and equipment 4 206 Payment for capitalized patent costs (133 ) (19 ) Net cash used in investing activities (188,278 ) (27,663 ) Cash flows used in financing activities Issuance of Class A common stock in IPO, net of underwriting discount — 461,803 Payment of offering costs — (2,034 ) Repurchase of Class A common stock (16,516 ) — Payments on long-term debt (308,962 ) (579,864 ) Proceeds from long-term debt 469,134 124,962 Payments on finance lease obligations (4,055 ) (2,829 ) Proceeds on finance lease terminations — 37 Purchase of LLC Interests from Continuing Equity Owners — (20,876 ) Payment of debt issuance costs — (13 ) Payment of dividend equivalent units (2 ) — Payment of tax withheld on stock-based compensation — — Distributions to members of Flowco LLC (14,842 ) — Dividends paid to Flowco Holdings Inc. shareholders (2,372 ) — Net cash provided by (used in) financing activities 122,385 (18,814 ) Net increase (decrease) in cash and cash equivalents 12,815 (3,928 ) Cash and cash equivalents Beginning of period 4,522 4,615 End of period $ 17,337 $ 687 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 March 31, 2026 December 31, 2025 March 31, 2025 (in thousands) Net income $ 27,454 $ 42,985 $ 27,045 Transaction-related expenses (1) 4,811 705 493 Share-based compensation expense (2) 3,086 1,557 4,962 Loss on sale of equipment 310 487 (45 ) Inventory valuation adjustments (3) — — 314 Adjusted Net Income $ 35,661 $ 45,734 $ 32,769 (1) Represents the transaction-related expenses, 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) 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) 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 March 31, 2026 December 31, 2025 March 31, 2025 (in thousands) Net income $ 27,454 $ 42,985 $ 27,045 Interest expense 4,348 4,372 5,365 Income tax benefit (provision) 4,030 (5,162 ) 2,648 Depreciation and amortization 41,495 38,601 34,119 EBITDA 77,327 80,796 69,177 Transaction-related expenses (1) 4,811 705 493 Share-based compensation expense (2) 3,086 1,557 4,962 Loss on sale of equipment 310 487 (45 ) Inventory valuation adjustments (3) — — 314 Adjusted EBITDA $ 85,534 $ 83,545 $ 74,901 (1) Represents the transaction-related expenses, 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) 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, electric submersible pump (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 March 31, 2026 December 31, 2025 March 31, 2025 (in thousands) Production Solutions Net income $ 35,100 $ 33,236 $ 29,032 Interest expense 127 219 93 Income tax benefit (provision) 29 (25 ) 211 Depreciation and amortization 25,899 22,832 19,614 EBITDA 61,155 56,262 48,950 Transaction-related expenses (1) — 705 — Share-based compensation expense (2) — — 1,280 (Gain) loss on sale of equipment 314 510 46 Inventory valuation adjustments (3) — — 314 Adjusted Segment EBITDA 61,469 57,477 50,590 Natural Gas Technologies Net income $ 13,895 $ 14,037 $ 11,632 Interest expense 186 207 202 Income tax benefit (provision) 1 — 112 Depreciation and amortization 15,587 15,761 14,499 EBITDA 29,669 30,005 26,445 Share-based compensation expense (2) — — 2,308 (Gain) loss on sale of equipment (4 ) (23 ) (91 ) Adjusted Segment EBITDA 29,665 29,982 28,662 Corporate Net income $ (21,541 ) $ (4,288 ) $ (13,619 ) Interest expense 4,035 3,946 5,070 Income tax benefit (provision) 4,000 (5,137 ) 2,325 Depreciation and amortization 9 8 6 EBITDA (13,497 ) (5,471 ) (6,218 ) Transaction-related expenses (1) 4,811 — 493 Share-based compensation expense (2) 3,086 1,557 1,374 Adjusted Segment EBITDA (5,600 ) (3,914 ) (4,351 ) Total Adjusted EBITDA $ 85,534 $ 83,545 $ 74,901 (1) Represents the transaction-related expenses, 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) 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 net cash paid in acquisitions, is set forth as follows: Three Months Ended March 31, 2026 2025 (in thousands) Net cash provided by operating activities $ 78,708 $ 42,549 Additions to property, plant and equipment (26,385 ) (27,850 ) Free Cash Flow 52,323 14,699 Net cash paid in acquisitions (161,764 ) — Free Cash Flow (Deficit) after Net Cash Paid in Acquisitions $ (109,441 ) $ 14,699 Source: Flowco Holdings Inc.