Flowco Adjusted EBITDA Clears Guidance High End

The Tip Desk · November 10, 2026 · 3 min read

The oilfield services provider posted $103.9 million of Adjusted EBITDA and $258.6 million of revenue in the third quarter, with free cash flow of $72.4 million.

Flowco Holdings Inc. (FLOC), a provider of production optimization, artificial lift and emissions management solutions for oil and natural gas producers, reported Adjusted EBITDA of $103.9 million for the three months ended September 30, 2026, exceeding the high end of its guidance range, after a 9.8% sequential increase in the second quarter.

Revenue was $258.6 million, up 9.7% from $235.9 million in the prior quarter, after a 12.6% sequential increase in the second quarter, and up 46.2% from $176.9 million a year earlier. Adjusted EBITDA margin was 40.2%, after compressing to 39.8% from 40.8% in the second quarter. Net income was $40.7 million and Adjusted Net Income was $48.0 million.

President and CEO Joe Bob Edwards said the results reflected production optimization orientation and execution across both segments, and that the company benefited from accelerated rental revenue associated with the release of certain Surface Equipment systems it is working to redeploy. He said U.S. operators’ focus on enhancing returns from existing assets is driving demand.

Production Solutions, which covers gas lift, electric submersible pumps, plunger lift and related digital solutions, generated revenue of $178.6 million, up 4.5% from $170.9 million in the second quarter, after a 21.9% sequential rise in that quarter. Adjusted Segment EBITDA was $78.0 million, and Adjusted Segment EBITDA margin was 43.6%, reversing a 230-basis-point sequential compression in the second quarter. The company said the margin increase primarily reflected a higher proportion of Surface Equipment revenue. Third-quarter Production Solutions revenue included approximately $9 million of accelerated rental revenue from the release of certain Surface Equipment systems.

Natural Gas Technologies, which designs, manufactures, rents and sells vapor recovery and natural gas systems, generated revenue of $80.0 million, reversing a 6.3% sequential decline in the second quarter. Adjusted Segment EBITDA was $30.9 million. Adjusted Segment EBITDA margin was 38.6%, down 413 basis points from 42.7%, primarily reflecting a higher proportion of Natural Gas Systems revenue, the company said. Corporate Adjusted Segment EBITDA was $(5.0) million.

Rental revenue was $141.8 million and sales revenue was $116.9 million. Transaction-related expenses of $1.7 million associated with the Lifting Solutions acquisition began in the third quarter, versus $66 thousand in the second quarter.

Net cash provided by operating activities was $103.1 million. Free Cash Flow was $72.4 million, with Free Cash Flow Conversion of 69.7% versus 55.7% a year earlier. Edwards said that represented roughly 70% conversion from Adjusted EBITDA.

The company said Valiant recently secured an award for future work from a large independent operator through an existing Flowco relationship. Subsequent to quarter-end, Flowco completed its acquisition of Lifting Solutions. Edwards said the company is encouraged by early international momentum, including incremental orders for ESPs and gas lift equipment in Venezuela and the Middle East, and that Lifting Solutions provides a platform to accelerate those efforts.

As of October 30, 2026, outstanding borrowings under the revolving credit facility were $355.7 million, with availability of $364.8 million against a borrowing base of $721.8 million. The board declared a quarterly cash dividend of $0.09 a share payable November 24, 2026. On November 2, 2026, the board approved a $150 million increase to the share-repurchase authorization, bringing the total to $200 million with no expiration date.