📊 FTK Key Takeaways
Is Flotek Industries Inc./Cn/ (FTK) a Good Investment?
Flotek demonstrates impressive profit growth (191% YoY net income, 27% revenue growth) and strong interest coverage, but exhibits critical cash flow deterioration that undermines earnings quality. Operating cash flow of $21K cannot legitimately support $4.7M net income, indicating severe working capital issues, inventory buildup, or earnings quality concerns that make the profitability unsustainable.
Flotek Industries shows a sharp improvement in fundamentals, with strong revenue growth, major net income expansion, and solid profitability across gross, operating, and net margins. The balance sheet appears healthy with moderate leverage, good liquidity, and very high interest coverage, but the quality of earnings is tempered by relatively weak cash conversion and a low absolute cash balance.
Why Buy Flotek Industries Inc./Cn/ Stock? FTK Key Strengths
- Strong revenue growth of 26.9% YoY signals demand strength
- Exceptional net income growth of 190.8% YoY with margin expansion
- Excellent interest coverage ratio of 27.3x with manageable leverage (0.34x debt/equity)
- Adequate liquidity with 1.83x current ratio
- Revenue grew 26.9% year over year while net income rose 190.8%, indicating strong operating momentum and improved scale
- Profitability is solid with 25.2% gross margin, 9.8% operating margin, 12.9% net margin, and strong returns on equity and assets
- Financial health is sound with a 1.80x current ratio, modest 0.35x debt-to-equity, and 83.6x interest coverage
FTK Stock Risks: Flotek Industries Inc./Cn/ Investment Risks
- Critical divergence between $4.7M net income and $21K operating cash flow indicates severe earnings quality issues or working capital dysfunction
- Negative free cash flow of -$271K despite reported profitability is fundamentally unsustainable
- Extremely low returns on capital (ROE 3.9%, ROA 2.0%) despite profitability indicates poor asset utilization
- Weak cash position ($5.7M) relative to $40M long-term debt creates liquidity risk if cash flow remains negative
- Operating cash flow of $7.20M is low relative to $30.53M of net income, suggesting weaker earnings-to-cash conversion
- Cash on hand of $5.73M is relatively thin compared with the size of the business and outstanding liabilities
- Free cash flow margin of 2.9% remains modest, so sustained growth may depend on improving cash generation
Key Metrics to Watch
- Operating cash flow convergence with net income - must reach materially positive levels
- Working capital changes, accounts receivable days, and inventory turnover
- Free cash flow trajectory and cash balance depletion rate
- Return on equity and asset efficiency improvements
- Operating cash flow relative to net income
- Free cash flow margin
Flotek Industries Inc./Cn/ (FTK) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Flotek Industries Inc./Cn/ presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
FTK Profit Margin, ROE & Profitability Analysis
FTK vs Materials Sector: How Flotek Industries Inc./Cn/ Compares
How Flotek Industries Inc./Cn/ compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Flotek Industries Inc./Cn/ Stock Overvalued? FTK Valuation Analysis 2026
Based on fundamental analysis, Flotek Industries Inc./Cn/ has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Flotek Industries Inc./Cn/ Balance Sheet: FTK Debt, Cash & Liquidity
FTK Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Flotek Industries Inc./Cn/'s revenue has grown significantly by 346% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.34 reflects profitable operations.
FTK Revenue Growth, EPS Growth & YoY Performance
FTK Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $55.4M | $4.7M | $0.12 |
| Q3 2025 | $49.7M | $2.5M | $0.08 |
| Q2 2025 | $46.2M | $1.8M | $0.05 |
| Q1 2025 | $40.4M | $1.6M | $0.05 |
| Q3 2024 | $47.3M | $1.3M | $0.04 |
| Q2 2024 | $46.2M | -$21.0K | $0.06 |
| Q1 2024 | $40.4M | $1.6M | $0.05 |
| Q3 2023 | $45.6M | $1.3M | $0.04 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Flotek Industries Inc./Cn/ Dividends, Buybacks & Capital Allocation
FTK SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Flotek Industries Inc./Cn/ (CIK: 0000928054)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FTK
What is the AI rating for FTK?
Flotek Industries Inc./Cn/ (FTK) has a Combined AI Rating of HOLD from Claude (SELL) and ChatGPT (BUY) with 67% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FTK's key strengths?
Claude: Strong revenue growth of 26.9% YoY signals demand strength. Exceptional net income growth of 190.8% YoY with margin expansion. ChatGPT: Revenue grew 26.9% year over year while net income rose 190.8%, indicating strong operating momentum and improved scale. Profitability is solid with 25.2% gross margin, 9.8% operating margin, 12.9% net margin, and strong returns on equity and assets.
What are the risks of investing in FTK?
Claude: Critical divergence between $4.7M net income and $21K operating cash flow indicates severe earnings quality issues or working capital dysfunction. Negative free cash flow of -$271K despite reported profitability is fundamentally unsustainable. ChatGPT: Operating cash flow of $7.20M is low relative to $30.53M of net income, suggesting weaker earnings-to-cash conversion. Cash on hand of $5.73M is relatively thin compared with the size of the business and outstanding liabilities.
What is FTK's revenue and growth?
Flotek Industries Inc./Cn/ reported revenue of $70.1M.
Does FTK pay dividends?
Flotek Industries Inc./Cn/ does not currently pay dividends.
Where can I find FTK SEC filings?
Official SEC filings for Flotek Industries Inc./Cn/ (CIK: 0000928054) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FTK's EPS?
Flotek Industries Inc./Cn/ has a diluted EPS of $0.12.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FTK a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Flotek Industries Inc./Cn/ has a HOLD rating with 67% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FTK stock overvalued or undervalued?
Valuation metrics for FTK: ROE of 3.9% (sector avg: 14%), net margin of 6.7% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy FTK stock in 2026?
Our dual AI analysis gives Flotek Industries Inc./Cn/ a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FTK's free cash flow?
Flotek Industries Inc./Cn/'s operating cash flow is $21.0K, with capital expenditures of $292.0K. FCF margin is -0.4%.
How does FTK compare to other Materials stocks?
Vs Materials sector averages: Net margin 6.7% (avg: 10%), ROE 3.9% (avg: 14%), current ratio 1.83 (avg: 1.6).