GET DAILY SIGNALSFlowco Holdings (FLOC) Delivers Record Q3 EBITDA Amid Growth and Acquisitions
Key Takeaways
- Flowco Holdings reported third-quarter 2026 revenue of $258.6 million, up roughly 46% year over year and above the consensus estimate near $249 million.
- Adjusted earnings per share (EPS) came in at $0.70, well ahead of the approximately $0.36 consensus, while generally accepted accounting principles (GAAP) diluted EPS was $0.40.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reached a record $103.9 million, topping the company's own $92–$98 million guidance range.
- Free cash flow hit a quarterly record of $72.4 million, representing roughly 70% conversion from adjusted EBITDA.
- The company guided fourth-quarter adjusted EBITDA to $93–$99 million, below the third quarter's result, partly reflecting seasonality and an equipment release.
- Flowco's board raised its share repurchase authorization by $150 million to $200 million and declared a quarterly dividend of $0.09 per share.
Putting the Results in Context
Flowco Holdings, a provider of production optimization, artificial lift, and emissions management solutions for the oil and natural gas industry, has grown quickly since its January 2025 initial public offering (IPO). The third quarter marked its strongest adjusted EBITDA since going public, underscoring how its rental-heavy, production-focused business model generates cash even amid volatile energy prices. The report also matters because it is the first to reflect a growing acquisition strategy: the company closed its Lifting Solutions deal in early October and continues integrating Valiant. With margins drifting lower on a year-over-year basis and management guiding to a softer fourth quarter, investors are weighing the durability of recent growth against acquisition-driven scaling. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
A Closer Look at the Reported Numbers
Flowco Holdings reported third-quarter 2026 revenue of $258.6 million, an increase of 46% from $176.9 million in the prior-year period and ahead of the roughly $249 million consensus estimate. Net income was $40.7 million, with adjusted net income of $48.0 million. Adjusted EPS of $0.70 exceeded the consensus estimate near $0.36, while GAAP diluted EPS was $0.40, up from $0.32 a year earlier.
Adjusted EBITDA reached a record $103.9 million, above management's prior guidance of $92–$98 million, at a 40.2% adjusted EBITDA margin. The Production Solutions segment posted revenue of $178.6 million, while Natural Gas Technologies revenue rose 23% sequentially to approximately $80 million. Operating cash flow was $103.1 million and free cash flow reached a record $72.4 million. Management guided fourth-quarter adjusted EBITDA to $93–$99 million, below the third quarter's result. The board also expanded the buyback program to $200 million and declared a $0.09 per share dividend.
Market Reaction and Investor Sentiment
Flowco shares initially spiked in pre-market trading following the beat, opening near $21.50 before pulling back to close at $19.46, a gain of about 1% on the day. The fade reflects investor focus on the lower fourth-quarter adjusted EBITDA guide of $93–$99 million and the roughly $9 million of third-quarter revenue tied to a one-time early release of surface equipment by a customer. While the record free cash flow, expanded buyback, and international order momentum supported sentiment, softer margin trends in Natural Gas Technologies and a step-down in the near-term outlook tempered enthusiasm. Analysts maintained a broadly constructive view, with a consensus "Buy" rating and a 12-month price target near $30.
Forward Outlook and Key Factors to Monitor
Looking ahead, investors will watch how Flowco redeploys the surface equipment released during the quarter. Management expects to return to current stacked equipment levels by mid-2027, with a modest near-term impact on results as those systems are reassigned. The pace of that redeployment will shape the production and rental revenue trajectory over the next several quarters.
The integration of Lifting Solutions, closed on October 2 for about $112 million, is another key variable. The deal adds rod lift and progressing cavity pump capabilities, makes Canada the company's second-largest geography, and lifts international exposure to roughly 10% of revenue. Management expects roughly $23 million of adjusted EBITDA contribution in 2027.
Finally, monitor capital spending and cash conversion. Management anticipates 2027 capital expenditures at similar or slightly lower levels than 2026, which could support free cash flow generation even as leverage rises. Margin trends across the Natural Gas Technologies segment, ongoing electric submersible pump (ESP) orders in Venezuela and Iraq, and the company's disciplined capital allocation between buybacks, dividends, and acquisitions will be central to the investment narrative in the quarters ahead.
Using Tickeron’s AI Tools for Deeper Analysis
In my own research process, I often turn to Tickeron’s AI Screener to quickly filter energy-services names and compare technical and fundamental signals across the sector. It helps surface ideas and monitor conditions without spending hours on manual screens, which keeps my workflow efficient when tracking names like this one.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
FLOC's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for FLOC turned positive on October 07, 2026. Looking at past instances where FLOC's MACD turned positive, the stock continued to rise in 13 of 15 cases over the following month. The odds of a continued upward trend are 87%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where FLOC's RSI Oscillator exited the oversold zone, 9 of 12 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 75%.
The Momentum Indicator moved above the 0 level on October 23, 2026. You may want to consider a long position or call options on FLOC as a result. In 25 of 33 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 76%.
Following a +3.35% 3-day Advance, the price is estimated to grow further. Considering data from situations where FLOC advanced for three days, in 82 of 104 cases, the price rose further within the following month. The odds of a continued upward trend are 79%.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 15 of 22 cases where FLOC's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 68%.
FLOC moved below its 50-day moving average on November 02, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FLOC declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 72%.
FLOC broke above its upper Bollinger Band on October 28, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for FLOC entered a downward trend on October 26, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 8 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 34 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.319) is normal, around the industry mean (1.536). P/E Ratio (11.889) is within average values for comparable stocks, (-25.825). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (1.687). Dividend Yield (0.029) settles around the average of (0.039) among similar stocks. P/S Ratio (2.415) is also within normal values, averaging (1.663).
The Tickeron SMR rating for this company is 48 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 55 (best 1 - 100 worst), indicating steady price growth. FLOC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. FLOC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 69, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
Industry OilfieldServicesEquipment
Advertisement