Flotek Industries, Inc.

Good morning, ladies and gentlemen, and welcome to the FlowTag First Quarter 2026 Earnings Conference Call. At this time, all hours are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star-zero for the operator. This call is being recorded on Wednesday, May 6, 2026. I would now like to turn the conference over to Michael Criccioli, VP Commercial. Please go ahead, sir.

Thank you and good morning. We are thrilled to have you with us for Float Tech's first quarter 2026 earnings conference call. Today, I'm joined by Ryan Ezell, Chief Executive Officer, and Bon Clement, Chief Financial Officer. We'll begin with prepared remarks on our operations and financial performance, followed by Q&A. Yesterday, we released our first quarter results, 2026 full year guidance, and an updated investor presentation. all available on our investor relations website. This call is being webcast with a replay available shortly afterward. Please note that today's comments may include forward-looking statements. These are subject to risks and uncertainties that could cause actual results to differ materially from our projections. For a full discussion of risk factors, please review our earnings release and most recent SEC filings. Please also refer to the reconciliations in our earnings release and investor presentation for non-GAAP measures. With that, I will turn the call over to our CEO, Ryan Ezell.

Thank you, Mike, and good morning to everyone. We appreciate your interest in Flowtech and your participation today as we review our first quarter 2026 operational and financial results. In the first quarter of 2026, Flowtech further positioned its industrialized pivot and transformational growth storyline through the continued execution of its corporate strategy. Driven by the power convergence of innovative real-time data and chemistry solutions, as shown on slide three, Flowtech has laid the foundation for a data-driven growth trajectory built on diverse recurring revenue, high-margin services, and proprietary technologies that create value for our customers and improve returns for our shareholders. The strategic transition of the company into a data-as-a-service business model continues to gain momentum while expanding the total addressable market for the company. As a result, Flowtech's data analytics segment grew exponentially, while our differentiated chemistry segment outpaced the market in a challenging environment through an unwavering commitment to safety, service quality, innovation, and total value creation. Now, before I discuss the company's vantage point on the evolving geopolitical and macroeconomic dynamics within the sector, I'd like to touch on some key highlights for the first quarter referenced on slide four that Vaughn will discuss later in the call. Company total revenue grew 27% as compared to the first quarter of 2025, highlighted by a 295% growth in data analytics, which was the highest quarterly revenue for data analytics in the company's history. Chemistry technologies revenue increased 13%, despite three-year lows in completions activity in North America, which was also the highest quarterly revenues in over seven years. Company gross profit climbed 25% versus the first quarter of 2025. It's impactful to note that data analytics accounted for 50% of the company gross profit versus 8% in the prior year quarter, marking a major milestone in Flowtech's transformation. Total company adjusted EBITDA grew 44% year over year. And Flowtech's expect analyzer was named product of the year at the 2026 Analyzer Technology Conference. And finally, 2026 guidance builds upon a multi-year trend of revenue and profitability growth as the company executes on its strategic initiatives to provide long-term resiliency and profitability as shown on slide five. Most importantly, these results were achieved with zero lost time incidents in the field of operations. I want to thank all of our employees for their hard work and commitment to safety and service quality in achieving these outstanding results. Now, turning to the larger picture for the energy and infrastructure sector, we share the viewpoint that the ongoing situation in Iran will have impactful and potentially long-term implications on global supply and energy security that will demand action. The structural disruption in the Middle East has catalyzed a fundamental shift in supply-side dynamics, establishing a higher baseline for energy security and recalibrating the risk profile of regional supply. As cumulative production deficits and reductions in strategic reserves are trending towards a billion barrels, we expect increased investment in localized oil and gas developments, while geographies that do not possess resources look to rapidly diversify energy security exposure. All of these factors point towards a fundamentally tighter energy market than what existed just 60 days ago and support a stronger commodity pricing environment for increased upstream activities. Layering in the expanding power demand driven by AI, data centers, and industrial reshoring, combined with the reliability issues of an aging transmission infrastructure, the expectations for tailwinds within the energy sector further strengthen. North America is already showing early indicators of recovery as completionist activity white space has all but disappeared for the first half of 2026, with spot work interest increasing throughout the remainder of the year. Our legacy pressure pumping customers continue to capitalize on the portfolio diversification opportunity provided by the demand for remote power generation. Flowtech is poised to support emerging customers with products and services that help protect their assets while optimizing their operational performance and fuel efficiency. With multi-year waiting lists for turbines and reciprocating engines, Protecting these capital-intensive investments is critical, along with enabling reliability standards that exceed the greater than 99% uptime requirements. Transitioning from the macro view, let's dive into details, starting with slide nine. I want to spotlight the remarkable progress in our data analytics segment. We saw service revenues increase 785% in the first quarter of 2026 versus the first quarter of 2025. driving gross profit margin to 75% versus 38% in the prior year period. This strong growth is powered by our flagship upstream applications, Power Services and Digital Valuation, both of which are generating significant contracted wins and a robust recurring revenue backlog shown on slide 10. Highlighting these wins are, first, 21 power services measurement units added since closing our original Powertech deal. These are in addition to the primary long-term Powertech contract assets. There's a 27-unit order from a large OFS customer with an expanding distributed power fleet to monitor fuel gas for power generation and digital valuation of fuel quality and consumption. a 15-unit order from a major midstream customer for real-time crude and constant state quality measurement, and also a deployment of a smart skid rental to a major IOC to optimize gas quality with real-time blending of field gas and CNG, which is one of the first applications of its kind. We also deployed rental assets to support our large utilities recovery power contract in Montana. This momentum has accelerated with these new contracts, expanding our expected backlog for the remainder of the year in 2026 to $34.1 million and our three-year expected backlog to more than $90 million. Power Services led this growth, further reinforcing our shift towards high-margin recurring revenue streams. Flowtech's Power Services has evolved from a novel analytical approach into a transformative solution for the energy infrastructure sector that we call PowerTech. What began as advanced analytics has grown into a comprehensive end-to-end fuel management platform, redefining performance standards and operations within the sector, as shown on slide 11. Our expanding portfolio of patents and field-proven use cases position FlowTech as a leader across the natural gas value chain. When considering the velocity of our measurement, we deliver unmatched real-time fuel monitoring, conditioning, blending, and engine control to optimize performance and safety for behind-the-meter distributed power operations. The success of Flowtech's power services applications is expanding rapidly as we expect to have proprietary real-time analyzers on more than 50% of the currently active North American EFRAC and natural gas-powered fleets by year-end. Additionally, on March 3rd of 2026, Flowtech announced its first contract within the utilities infrastructure sector, seen on slide 12. Leveraging our patented PowerTech platform, Flowtech will partner with leading distributed power service providers to coordinate installation of up to 50 megawatts of state-of-the-art power generation equipment, including advanced gas distribution and smart conditioning systems to support critical federal disaster recovery initiatives. We are pleased to announce that we have initiated phase one of the project, which includes the mobilization of 12 megawatts of distributed power combined with our proprietary gas conditioning and distribution skids to the infill staging area while the site prep work is completed. First power is expected in the third quarter, 2026. Now, let's transition to slide 13, where we'll dive into our second upstream application, digital valuation. This groundbreaking use case sets a new standard in the oil and gas industry, delivering unprecedented transparency and minimizing enterprise risk for producing wells like never before through real-time digital twinning of the custody transfer process. In the fourth quarter of 2025, Flowchart reported a historic milestone in natural gas measurement. The EXPECT spectrometer became the first optical instrument to achieve the stringent reproducibility and repeatability requirements of the Oil and Gas Industry Standard for Custom Transfer, GPA 2172, also known as API 14.5. We believe the EXPECT speed, accuracy, durability, and qualification under the rigorous measurement standards outlined in GPA 2172 will provide a significant advantage in discussions with prospective customers as we aggressively expand its manufacture and field deployment. In March of 2026, the XSPEC Analyzer was named Product of the Year at the 2026 Analyzer Technology Conference, further exemplifying its differentiated capabilities. Since completing our Digital Evaluation Pilot Program in the third quarter of 2025, we exited the year with 25 active units deployed. Furthermore, 2026 is off to a great start, with that number more than doubling to 57 units currently deployed or contracted for delivery. It is clear that execution of our transformational strategy to grow the data analytics segment through upstream applications is gaining traction. But what is most important is what it means for our stakeholders and investors. First, our DASH-driven strategy ensures predictable recurring revenue and cash flow, delivering stability and long-term value. Secondly, our proprietary data technologies and superior measurement accuracy enable velocity and decision control that establish a high barrier to entry, secure client loyalty, and support our value-based service model. And finally, long-term high-margin subscriptions position Flowtech for sustained growth and margin expansion, driving significant shareholder value over time. And lastly, let's move to our chemistry technology segment, which continues to deliver robust performance, driven by the differentiation of our prescriptive chemistry management services and our expanding international presence. Slide 15 highlights the resilient performance of our chemistry technology segment, which delivered a 13% increase in total revenue for the first quarter of 2026 compared to the first quarter of 2025, despite a 21% decline in the average North American frack fleet count over the same period, according to primary vision data. As mentioned earlier, we believe we have reached the trough of the cycle and see encouraging indicators for cautious optimism in the second quarter of 2026 and beyond. We continue to closely monitor operational and supply chain risks to our international operations amid the ongoing conflicts in the Eastern Hemisphere. It is evident that our chemistry team has executed our strategy flawlessly. As we move into the second quarter of 2026 and beyond, the opportunities leveraging the convergence of prescriptive chemistry management and data services move to the forefront through high-margin services that improve operator ROI. These advanced DAS-driven services include smart ChemAd units, real-time flowback monitoring, and implementation of prescriptive geological targeting. Looking ahead, I am more confident than ever in Flowtech's momentum and our ability to drive sustained, profitable growth as we execute our transformative corporate strategy. We are firmly positioning Flowtech as a high-growth technology leader in the energy and infrastructure sectors, accelerating innovation through the powerful integration of real-time data analytics and advanced chemistry solutions that are tailored to precisely meet our customers' evolving needs. Now, I'll turn the call over to Bon to provide key financial highlights.