FTK Q3 2026 earnings call transcript, November 4, 2026

Good morning, ladies and gentlemen, and welcome to the FTEC Industries third quarter 2026 earnings conference call.

At this time, all lines are in a lesson-only mode. Following the presentation, we'll conduct a question-and-answer session. If at any time during this call, you're recording. If you require immediate assistance, please press star 0 for the operator. This call is being recorded on Wednesday, November 4th, 2026. I will now turn the conference over to Michael Critelli, VP Comercio.

Thank you. And good morning. We're thrilled to have you with us for Flowtech's third 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 third-quarter results, updated full-year guidance, and an updated investor presentation, all available on our investor relations website. This call is being web- broadcast with a replay 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, as well as slide two. of our investor presentation. 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 Zell.

Thank you, Mike, and good morning, everyone. Appreciate your interest in Flowtech and your participation today as we review our third quarter.

In the third quarter, Flowtech's growth storyline continued through the execution of our corporate strategy and the industry's adoption of our evolving portfolio of advanced technology. Driven by the powerful convergence of innovative, real-time data and chemistry solutions, as shown on slide three, Flowtech has laid the foundation for a data-driven, industrialized... Built on diverse, recurring revenue, higher-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, FTK's data analytics segment grew exponentially, while our differentiated chemistry technology segment outpaced the market and extended its international footprint in a challenging environment through an unwavering commitment to the company. Safety, service quality, innovation, and total value creation. With that, I'd like to touch on some key highlights for the third quarter shown on slide five. That Bob will discuss later in the call. Company total revenue exceeded $114 million, more than doubling from the third quarter of 2025 and the highest quarterly revenue performance since 2014. Data analytics revenue grew 104% from the third quarter of 2025. It's important to note that almost 80% of data analytics revenue is derived from

data as a service offerings, making a milestone in the company's transformation. Additionally, the percentage of external customer revenue within data analytics grew 60%. Up from 31% in the prior year quarter. Chemistry Technologies revenue increased 104% versus the prior year quarter. With international chemistry revenue reaching $28.4 million, representing 25% of total company revenue in the quarter. Company gross profit climbed 54% versus the third quarter of 2025. And total company adjusted EBITDA grew 87% year-over-year, totaling $19.5 million. The company updated its 2026 guidance with the new midpoint being 63% and 83% increases versus 2025 actuals on revenue and adjusted EBITDA, respectively. represents the third increase to 2026 guidance and builds upon a multi-year trend of growth as the company executes on its strategy to provide long-term resiliency and profitability, as shown on slide 6. And finally, in September, the company secured a $120 million senior-secured term loan to fund a 2027 data analytics capex and strategic growth initiatives. 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 continue to believe that the ongoing geopolitical unrest

and the situation in the Middle East will have impactful and potentially long-term implications on global supply and energy security. The industry continues to exhibit a shift in supply-side dynamics. That's recalibrating the risk profile of regional supply while fundamentally establishing a higher baseline for energy security driven by the almost 3 billion barrel production disruption and 1 billion. Barrel drawdown of global strategic reserves. 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 stronger commodity pricing environment for increased upstream activities. or an extended duration. 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. 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 operation performance and fuel efficiency. With multi-year waiting lists for turbines and reciprocating engines, protecting these capital intensive investments is critical along with enabling electrical.

Reliability services that improved operational up-tem and overall efficiency. Transitioning from the micro view, let's dive into the details. Starting with slide 8. I want to spotlight the transformational growth in our data analytics segment. We saw total segment revenues up 104% year-over-year in third quarter 2000. 2026 service revenues exceeding total segment revenues from the year-ago quarter. More importantly, external customer revenue increased to 11. million in the third quarter of 2026 versus only $2.8 million in the third quarter of 2025. This is an almost 300% increase as the customer base continues. to diversify. This strong growth is powered by our flagship upstream technologies, power services, and digital valuation, both of which are generating significant contracts. Wins and a robust recurring revenue backlog. Outlining these wins are shown on slide 10. By the first quarter of 2027, FlosTech expects to add an additional 1 gigawatt of power support to the measurement or control by proprietary PowerTech platform, extending our services to supporting almost 6 gigawatt. of behind-the-meter power. This further validates the demand and scalability of our innovative technologies in the rapidly growing behind-the-meter power space. The utilization of our state-of-the-art smart skids to optimize gas quality with real-time blending and fuel gas continues to expand as new skids are bought online in the next several months. In October,

Flowtech announced that the Verical had received EPA approval as an alternative to gas chromatography for measuring flare vent gas and the heating value in petroleum refineries. The milestone marked Verical's second EPA alternative method approval while extending the company's addressable market for flare operations. Estimate the refinery total addressable market relative to flare monitoring to be in excess of 40 million dollars. Power services continues to lead this growth, further reinforcing our shift. toward high-margin recurring revenue streams. Flowtech's PowerTech platform has evolved from a novel analytical approach into a transformative solution for the energy and infrastructure sector. What we began as advanced analytics has grown into a comprehensive end-to-end fuel management platform, redefining performance standards and operations within the sector. Our expanding portfolio is a part of the project. And field-proven use cases position FloTek as a leader across the entire natural gas value chain. When considering the velocity of measurement, we deliver unmatched real-time fuel models. Monitoring, conditioning, blending, and engine control to optimize performance and safety for behind-the-meter distributed power operations, as shown on slide. In addition, we are now realizing the impact of real-time measurements on the Electrical Reliability Services, or ERS, value chain and expect to expand our technologies into

additional ancillary service opportunities in the sector, such as emissions and noise reduction. 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 the enterprise. price risk for producing wells like never before through real-time digital valuation. We believe to expect speed, accuracy, durability, and qualification under the rigorous measurements. Outlined in GPA 2172 will provide a significant advantage in discussions with prospective customers as we aggressively expand this manufacturing and field deployment. In the third quarter, in 2026, we extended the total number of digital valuation measurement devices deployed to over 135 as its evolution into enterprise-level value creation gains momentum and a diversity. and diversified customer base. It is clear that the execution of our transformational strategy to grow the data analytics segment, the roughstream applications continues to gain momentum, but what is most important is what it means for stakeholders and investors. And that's first, our data-driven strategy ensures predictable recurring revenue and cash flow, delivering stability and long-term value. Second, 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 third, long-term, high-margin subscriptions position Flowtech for sustained growth and margin expansion, driving significant shareholder value. Now, lastly, our chemistry technology segment continues to deliver robust performance, driven by the differentiation of our... Prescriptive chemistry management services, expanding international presence, and leveraging our real-time production surveillance services to enhance asset returns. Block 15 highlights the results. The leading performance of our chemistry segment, which delivered a 104% increase in total revenue for the third quarter of 2026 compared to the third quarter of 2025, and was the strongest quarter of chemistry sales since 2000.

Production surveillance and PowerTech offer a unique and innovative entry point for growth that mimics our strategy in North America while providing substantial value creation for our customer base. It's evident that our chemistry team has executed our strategy flawlessly. As we move through the remainder of 2026, opportunities... leveraging the convergence of prescriptive chemistry management and data services moved to the forefront through high-margin services that improved operator ROI. These advanced DAS-driven services include smart chem-ad units, real-time flow-back monitoring, and the implementation of prescriptive geological targeting. Looking ahead, I am more confident ever in Flotec's momentum and our ability to drive sustained, profitable growth as we execute our transformative corporate strategy. In yesterday's release, we announced a 2027 capital plant to support the continued development of our data analytics segment. We expect to invest $15 to $20 million to expand our fleet of gas conditioning. and distribution equipment, grow our inventory of measurement instruments, and enhance our manufacturing capacity to support further segment scaling. We anticipate the majority of next year's capital spend. to be allocated to our next generation distribution skids as pictured on slide 10. These assets combine the functionality of our measurement, conditioning, and distribution into one platform.

This should provide a competitive advantage as we continue to expand beyond oil and gas. 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 tailored precisely to our customers' evolving needs. Now, I'll turn the call over to Barron to provide key financial highlights.

Thanks, Ryan. Good morning, everyone. It's great to be able to report another exceptional quarter as compared to both the prior years. Year and sequentially. As Ryan mentioned, third quarter revenue more than doubled from a year ago as we grew both chemistry and data analytics top line by 104%. Adjusted EBITDA followed soon. With third quarter results exceeding the year ago quarter by 87%. In conjunction with continued strong results, we provided updating guidance on total revenues and adjusted EBITDA in yesterday's release. As shown on slide six, we're not expecting total revenue in the range of $382 to $390 million with adjusted EBITDA in the range of $59 million to $62 million. As Ryan pointed out, the midpoint of these metrics implies very strong growth rates as compared to full-year 2025 revenue in adjusted EBITDA. As a reminder, our adjusted EBITDA guidance... ...does not add back non-cash amortization of contract assets, which is expected to total approximately $9.3 million during 2026. Our updated guide... ...includes fourth quarter international chemistry revenue forecasted at similar levels to third quarter. Consistent with comments made on our second quarter earnings call with respect to guidance, we are again assuming no fourth quarter... ...revenue related to our power services contract in Montana in our guidance. We continue to evaluate options for additional work beyond the initial term, which expired in September. Moving from guidance...

...to quarterly results, we posted strong growth in revenue throughout 2026, as year-to-date revenues recorded through September have surpassed the full-year 2025 revenue by nearly $50 million. Quarter-over-quarter growth was driven by international and related-party chemistry sales, as chemistry accounted for about 84% of the total revenue growth as compared to the third quarter of last year. Our external chemistry sales totaled approximately $46 million and consisted of $17.5 million of domestic revenue and $28.4 million of international sales. Domestic external chemistry... ...sales approximated the prior year quarter, while international sales were up over $26 million from third quarter last year, driven by our ongoing work in the Middle East. International chemistry revenue accounted for roughly 25% of total revenue in this quarter. As compared to just 4% in the year ago quarter. To provide some context on the rapid growth in international this year, international chemistry revenue total of $1.9 million in the first quarter, $10.6 million during the second quarter. And now $28.4 million this quarter. Year-to-date international chemistry revenues totaled $40.8 million as compared to just $10 million during the year ago period. As noted in our comments on guidance. We expect fourth quarter 2026 international chemistry revenues to be fairly consistent with third quarter, which would bring the annual total for international chemistry to approximately $70 million.

Related part of chemistry revenues also had an impressive quarter as it increased 87% from the year-ago quarter, topping the $50 million quarterly mark for the first time in the history of our long-term. Chemistry supply agreement that we put in place in 2022. Data analytics revenue posted another strong quarter with revenue of $18.1 million. Year-to-date, our data analytics revenue was up $100 million. 73% from prior year-to-date period as we continue to see strong gains in our upstream applications, including power services and digital evaluation that Ryan highlighted earlier. Data analytics... ...provided a solid contribution to gross profit during the quarter, comprising only 16% of total quarterly revenue. The segment contributed 45% of company gross profit. For the quarter, the segment generated gross margins of 68%. Third quarter, 2026 gross profit is a percentage of revenue total of 24%, which was down from 32%. In the year-ago quarter, it's important to note that third quarter 2025 results included an order shortfall payment of $8.7 million. With the record-related part of the quarter, the chemistry revenue posted this quarter, the order shortfall penalty fell to less than $1 million. Because the order shortfall penalty carries no associated cost, it had a significant impact on margins in the year. Ago quarter. Excluding this shortfall penalty, the current quarter gross margin was approximately 400 basis points higher than last year, attributable to the 104% increase.

and data analytics revenue and higher margin chemistry sales. G&A expenses increased 15% year-over-year, but excluding non-cash stock comp, G&A increased 10% versus the year-ago quarter. As revenues continue to scale, we've seen meaningful leverage in our G&A expenses. Total G&A expense declined to 7% of revenue in the third quarter of this year compared to 13% of the year-ago quarter. This marks the lowest quarterly G&A as a percentage of revenue that we have achieved in at least the last decade. Net income from the quarter was $13.3 million, or $13.3 million. On a diluted share basis compared to $20.3 million or $0.53 per diluted share in the prior year quarter. As a reminder, net income last year included a $12 million tax benefit. With the partial release of valuation allowance on a deferred tax assets, excluding net tax benefit in the third quarter of last year and assuming an effective tax rate consistent. With the current quarter, earnings per share for the year ago quarter would have approximated approximately 17 cents per share versus the 34 cents per share where we came in for the third quarter of this year. September, we closed the term loan with initial funding of 75 million. After repaying our previous term loan at closing, remaining net proceeds are expected to be used to fund our 2027 data analytics capital plan. The capital investment plan is targeted to support the expansion of the data analytics segment with investments focused on the priorities Ryan outlined earlier.

and also summarized in the release. Just to close up, we have posted consistently strong results throughout 2026. Our recent term loan strengthens our liquidity and provides capital for our DA expansion plans. As shown on slide 7. We have maintained our focus on keeping relative leverage low. Using the midpoint of our updated 2026 EBITI guidance and net debt as of September 30th, our leverage ratio is less than one. We believe this positions us to continue executing our growth initiatives while maintaining financial flexibility. With that, I'll turn it to Ryan for closing remarks.

Thanks, Brian. Flowtech's third quarter results extend our multi-year track record of consistent improvement through the execution of our corporate strategy and the transformation of Flowtech into a data-driven technology leader. Both data analytics and chemistry technology segments delivered robust growth, highlighted by triple-digit increases in revenue and rapidly expanding upstream. Stream application portfolios. Together, our synergistic segments position Flowtech to gain additional market share and drive further top and bottom line improvement with substantial ups. Side opportunities in our data-driven services. We expect investments made through our 2027 capital plan will drive longer-term, high-margin growth and should accelerate Flowtech's. Transition to a data and technology-driven enterprise. We remain committed to shaping the industry's digital and sustainable future by leveraging chemistry as our company. and value creation platform. With our proven execution, expanding high-margin capabilities, and clear pathway to scale growth, Flowtech is poised for the next phase of value creation for our investors.

Operator, we're ready to open the floor for questions. Thank you, ladies and gentlemen. If you'd like to ask a question, please press star 1 on your telephone keypad. If you'd like to withdraw your question, press star 2. One moment, please, for your first question.

Your first question comes from Jeff Gramp from Northland Capital Markets. Please go ahead.

Fantastic. Appreciate those details. For my follow-up on the 27 CapEx plan that you guys provided, could you walk us through the process of establishing that quantum? Fleet is that going to build? And is that size informed by customer demand, by manufacturing capacity? Just trying to understand, you know, how you guys ultimately decided on the quantum of that program. Thanks. Yeah. Yeah. Let me kind of walk through. So where we talk about these 41 skids that we ended the quarter at, we've now taken acceptance on a multitude of other fleets. So we had an initial target of wanting to more than. fleet in 2026, we're going to far exceed that goal. And so our plans in the 2025 is to build a fleet that would match our potential wins that we're having built in our CRM system with probably about a 25% excess because we're seeing a lot of work come to us like, hey, do you have it right? And so we'll be bringing forward, I would say, out of the current plan right now, 75% of us already got a home that we've got. For the 25 plan, and then we'll have about 25% of it that we're looking for homes sometime throughout the year, if that makes sense. Now, notice not all 15 to 20 million that are hitting Q1. They're kind of staggered throughout the years. We've got a few. Potential opportunities with the data centers that are coming online, some of the utility contracts and different pieces there.

So, plus some of the conversion of our current monitoring services over into. Full-time conditioning and or distribution. So, it's a pretty exciting piece for us, you know, when you look at the intensity and the design of some of the equipment, particularly the real-time blending skis that are doing some monumental things.

Great. Push those details around. I'll pop back in queue.

Your next question comes from Rob Brown from Lake Street Capital Markets.

Please go ahead. Good morning. I just wanted to touch base a little bit on the digital valuation growth there, strong growth, 235 units. How do you see that market developing? Moving into 27 and what are sort of the customer interest opportunities that are developing there?

This is actually, you know, the time you spent talking to me, this is probably one of our most exciting, when you look at long-term development and long-term segments of the organization. You know, what started out with us just... Trying to understand the value of gas, when we first acquired this technology, what it's evolved to now, has been quite amazing. And so we've had the movement of the instruments, number one, has been highly... on recurring revenue data services on a rental basis. Some of the growth has been moving directly to the wellhead of what we call production surveillance. So we are... We're actually monitoring the initial flow out of the well. We're looking at chemistry that comes out, the initial production wedge, oil gas ratio changes, total valuation of the inventory, et cetera. It's a monumental breakthrough in some of the trials that we're seeing there. We're seeing phenomenal uptake in, what I'd say, gathering locations. We're actually looking at true custody transfer components in digital valuation. And the other one is looking at kind of a modified look at RVP measurements on volume expansion, volume blending. So it's kind of a very diverse and spread out growth. And if you look at the opportunities that we've got as sheer number on the size of what it is, I mean, this could be, you know, a really profitable long-term investment for Flowtech. And the enterprise value that it's creating the operators and the midstream companies is unbelievable.

So we're really excited about what's going on. And if you remember, at the start of the year, we wanted to have 150 instruments roll out in 2026, and we surpassed. The 135 mark in Q3, and they're getting bigger every quarter, and we expect Q4 to be our biggest delivery of units, so we'll far exceed that 100.

Hey, Rob, just to give you a sense of scale of the growth in that particular application, digital valuation made up only about 3% of second quarter DA. Revenue for the third quarter, it jumped up to 9%. So, it's really gaining a lot of traction pretty quickly. Okay, great. Excellent progress there. And then. And then on the OEM kind of segment, how is that developing, and what do you sort of see there in the next 12 to 18 months? Yeah, so it's. To me, we're making consistent steady progress in line with our prior guidance on that. I think right now, one of the primary customers that we had are in final stages of what I. called field acceptance testing and software integration. We've also added another three customers that are looking at it for talking directly to their engines. Would you see our potential gas conditioning equipment, our power tech skids, but also mounting of our expect FG units directly on engines to further optimize? Fuel efficiency and or prevent derating issues. So a lot of good movement there. You know, we still kind of keep close to the chest. I don't know who and what that is, but those things are running spot on track of where we want and bring a couple of new customers on in that realm.

Yeah, thank you. I'll turn it over.

Your next question comes from Jerry Swinney from Roth Capital. Please go ahead.

Thanks. I wanted to maybe open up the aperture a little bit, take a little bit of a step back, you know, obviously on data analytics, but obviously you have a lot of shots. Gold next year, power services, digital valuation, you know, below that, refining opportunities, OEM engine opportunities. You know, how do we... We look at those opportunities as we go into 27, you know, how big of an opportunity are they, you know, maybe holistically and then into 27, and how much could...

You know, that's an interesting question. I'm going to... Well, it's a great question. I'm going to... I'm going to tiptoe around the line because we haven't issued our 2027 guidance yet. But when you look at it holistically, let's talk about it as a group. When we started the digital transformation of the... We only had about a $2.5 billion total addressable market. And that would have been back at the end of 2020s. We started 2021. Where we sit today, our total addressable... ...market between our advanced chemical technologies and our data analytics business is approaching $20 billion. And we're continuing to unlock additional value-add components around... ...electrical reliability services on the data center and industrialized power platforms. And so we've got a significant runway. I think there's, as you can imagine, there's significant... ...higher percentage growth in the data services, particularly in the upstream and the power side of business, than we would typically see in chemistry because chemistry is a much more mature business. But when I look at... ...27, I do believe that our power services division, digital valuation, and as some of the ERS... ...platformers will do the bulk of the heavy lift and growth. And then when you look at, you know, when you combine chemistry in there, chemistry will have really strong, sustained size in international business. You know, I look for North American land to be flat to down in activity. So without getting specific numbers, being we have an issue of guidance, I hope that gives a little bit of color on the opportunity size and where we think the bigger portion.

The growth will come from as a percentage basis will be on the data analytics side.

I was going to ask it like this, and hopefully it doesn't come across the wrong way, but you knew that facility.

For data analytics growth in the short term, and does this really start to accelerate it into next year? I don't know that CapEx was a limiting term. For us in the near term, because a lot of these technologies are so new, you've got to realize they're not even two years old yet. And, you know, it was more of an acceptance rate issue. What we were trying to do is, as you can imagine, in a startup business or a new scale business, when do you actually pour? The fuel to the fire to get the growth. And what we're getting comfortable with is being able to address the wins we're getting and that we're going a little bit in the excess to where we've got some call-off capital. And when you consider the fact that... We're going to spend close to $15 million in between the 20 years leading up to that. It's been a couple million in total in my first five years here. So a significant investment for us, but I don't think it's been a limiting piece right now. You know, we have seen some things. But we are pre-investing in our manufacturing capacity so that we don't have those bottlenecks. That's been a big step that we're looking at at 27. And we've got basically. A stepwise plan in that, depending on what we do to address equipment there versus if we have OEM build opportunities for analyzers. So they're two different manufacturing platforms. So you mentioned the term acceptance, you know, market acceptance, but the OEM, it was Rob's question, was the OEM.

OEM partnership or opportunity, however you want to phrase it, but what does final field acceptance mean? I mean, is that, if it passes that, do you get into nitty gritty in terms of talking economics or just curious as to what final field acceptance means in that process? So there are our initial initial potential partner that we're working with there it went through an evolution where they started with the our initial like barracks box that moved to an X. and now we have the expect fg as you can imagine a multi-million dollar piece of equipment they want a field acceptance test they need so many thousand hours with that thing delivering consistent information within a specific accuracy ratio. and more importantly was understanding the software components to make sure the logic transfers effectively and so the measurement device has been very successful.

And right now they are just fine-tuning what I'd call the software components to it that would do it. Now the great part about that is other OEM-type customers that come on board, you know, it's going to be like the fast-forward component. We won't have all those growing pains that we did during the first unit demo. The model and the updated model capital in terms of the piece of equipment, plus the

studies that have been done. So they'll come on, you know, orders of magnitude faster, if that makes sense. Gotcha. Okay. Thank you for taking my questions. Absolutely.

Your next question comes from Don Christ from Johnson Rice. Please go ahead.

Some of these facilities are running 75 to 100 gas chromatography units at one time. So, you know, we look at this number of plants, but you can imagine... It's 100 times that in terms of measurement points and devices. So, it's a pretty good unlocking piece because now, to your point, they don't have to buy two pieces of equipment. They can buy one to do all of it. And so, I do believe this is going to unlock a significant amount of value for us. And what's pretty interesting is now you're starting to see from the wellhead all the way. We are now making measurements with the data analytics type measurement, whether it be a VARACS, an EXPECT, an EXPECT-FG, a VARACAL, or whatever. All of them have been down the value chain, whether it's liquid or gas. And so these are some big steps that we're having. You know, when you look at that, I think one of our initial slides here in the deck shows that whole... We are actively generating revenue at almost every measurement point now compared to where we just started in the midstream when we acquired JP3 back in 2020. I appreciate that color, and it's going to be very exciting. On the chemical side, can you talk about South America, specifically Argentina? Things are really blowing and going down there. Do you have any traction down there? Are some of your customers from the U.S. kind of pulling you down there? Any comments, Randall? Argentina? It's a comment of both, right? We've been selling chemicals down there for quite a bit.

Some of the individuals that we've been selling chemicals are inquiring about our data services. We've had questions in Venezuela. We've had questions in Argentina. We've had questions in Colombia. And so we are moving. Down there. We haven't penetrated at the rate. Obviously, you go to the numbers of what we have in the Middle East coin piece. We have a manufacturing. Partner that we're working with down there that actually is already building equipment for us internationally and domestically. So we've been taking preliminary steps about how that works. We're traditionally trying to keep services together between chemicals, data, et cetera, like what we've seen, how we started that business in North America, how we were able to penetrate the Middle East. And we'll look to. The same thing in Latin America, Dom. I appreciate the color. I'll turn it back. Thanks, guys. Yeah.

Your next question comes from Josh.

So now we look more at the domestic business. I think it's interesting how we look at it. A lot of times we try to bifurcate between what we call external revenue and related party. In reality, those are a lot of times on the same location. So sometimes I still partnered as in the total growth of the business, which has been substantial year over year. So you got to say we're taking. in total number of wells. We look at a market share. But I do believe, in all honesty, that we've been preaching for, since you've been talking with me, about the importance of. of choosing the right set of chemistry, like what our PCM service does, to minimize formation damage, and optimize the output of the asset. And we're combining that with our production surveillance technologies. With our data analytics, and I believe that as being a differentiator being perceived as that now. And traditionally, when we go head-to-head at our PCM service versus other types of service out there, we come in a really good spot. There's no doubt that when you bid this on a commodity for commodity basis, we may or may not be that choice. But if you want... the best return out of that asset, we definitely move to the tip of the spear for that. And looking at, I don't know, it's hard to rate how the growth would be. in North America until we understand a little bit better how we finish Q4 and what we think the activity will be. And considering what happened yesterday with the, you know, government.

It changes everything will take place. You know, you could see ramp ups. You could see a headwind. So we'll give a little more color in that. But I definitely think it's the tale of two cities. International is taking share. North America is about. For a little bit of share, but more about technology adoption, if that makes sense. That makes sense. Thanks for all that. And then as my follow up, could you just speak to, I guess, over the course of what we've seen in 26, a lot of the. People who've increased activities since the start of the year have been on the private side. Could you just give any color? Like, I know you're not going to quantify, you know, thoughts on next year. But just has your customer base in the lower 48 evolved over the course of this year? Or are you seeing different penetration with sort of the larger integrated relative to the privates? Maybe you could just unpack that. A little bit more, and then I'll turn it back. Thanks. Yeah, you know, I think that, you know, the predominant thing, I say, Josh, has been not. only apparent to me, but been a breath of fresh air, is there seems to be significant more capital discipline being shown by not only the EMP guys, but also the. service companies, and to me, this is the drilling, completion, and turning one. In North America, I do believe that you've had a lot of companies that have been kind of on the forefront, whether you look at a vintage.

Chevron or some of these that have been out there, they've invested a lot of money in trying to understand whether you call it cubic analysis, spacing, and well-designed, what's the appropriate chemistry for your target zone. You know, the impact of water damaging wells, infield wells versus the parent-child interactions, all these things are discussions that are significantly further along than what I was seeing back in 2000. 2020, even 2019. So to me, all of these are, you know, advancements in the field. But I can tell you what it all relates to. We're getting more out of less in terms of there's less fleets active because they're more efficient. We're getting better productions at lower costs. We're doing all these types of things. So I think what will challenge that paradigm is. Who can maintain the quality of acreage? And as with Flowtech being able to bring advanced technologies on understanding the quality of production and making real time logic decisions on improving. Chemistry throughout, I think that we will help kind of bridge that gap and produce tier one economics out of tier two acreage, which I think will be extreme value proposition for us in the future. I think, you know, my initial look right now, pre the election last night, I was thinking you see that kind of flat, you know, whole. Whole pace in 27. We'll see how that plays out over the next couple of weeks as we get ready to release guidance here in Q1.

Thanks for taking my questions.

Your next question comes from Tom Bishop from BI Research. Please go ahead.

in the not-too-distant future. Yeah, you know, it's interesting for us because with that contract, both, there were two primary... bids and awards that took place inside Puerto Rico. One was for the Costa Sur facility and one was the Aguirre facility. Bid through a public tendering process. Both of those were... Back at the end of 25, we got re-evaluated this first part of 26. When they were looking at starting the initial mobilizations of those, we were asked to come in on the back side of those awards. To help a technical aspect of it, because they didn't have the infrastructure to move enough CNG through ISOs, and so they were going to try to combine CNG. LNG, and some biogas inputs, and so our blended technologies did a phenomenal job for that. However, you know, after they had kicked off, one of the initial consortiums, and the other one, they didn't put up a performance bond, and so the contract unwound, and the conditioning pieces that we were tied to were related to that. And so our contract that we had directly with PREPA was no longer active because the consortium wasn't moving forward, and so for us, they are still in... our need for the power. They are working at a power deficit in the country. There's 200,000 people a day without electricity. They reach out to us on a regular basis. However, there has to be some type of contractual construct. We can't just ship the assets down there and take that kind of risk on, especially considering the potential turmoil.

And what they've seen with their nationally run electricity groups, etc. But, you know, for us, our big push initially was around almost like a humanitarian deal to come in and help. And we would still be potentially open to do it, but it has to be a contractual construction pricing that makes sense going forward.

Ladies and gentlemen, as a reminder, if you'd like to ask a question, please press star 1. Your next question comes from Jeff Grant from Northland Capital Markets. Please go ahead.

Like the incremental growth we've seen this year, maybe looking ahead, are the use cases. How does that kind of pie chart look like in terms of where you're seeing. Most accelerated adoption there. And also curious if pricing differs between application or if it's kind of, you know, pretty similar across across use cases. Thanks. Well, is you. In areas where some other type of technology has been doing, let's say pure custody transfer, right? The pricing there is a little bit. It has a little bit more of a ceiling on it because you still have a manual sampling and laboratory testing with GCs that can step in, right? So it has more. These other components we look at, we talk about production surveillance, the other allocation and production measurement pieces. They're unlocking such a significant amount of value, depending on the volume and rates and stuff, that we are seeing, I would say, significantly better. We're all pricing. And when you discuss, because there's such a strong return on investment there, there's very little pushback on rental models versus selling a capital selling instrument like what you would inside of a. refinery or flare, flare monitoring segment. And so there's no doubt that, again, as our premise has been, the further you move upstream, you. The better the pricing is and the higher degree of, what I say, ROI.

Fantastic. Sounds good. I appreciate it. Thank you. And there are no further questions at this time. I will turn the call back over to Michael Critelli for closing remarks.

Thank you all for joining. Join us at some of our upcoming investor events. Tomorrow we'll be at the Invest Houston Leadership Summit in Houston where Ryan will be speaking on November 10th and 11th at the Daniel Energy Park. Partner's Annual Permian Barbecue where we hope to win a couple awards for some of our barbecue dishes. On November 17th and 19th we'll be at the Roth Techno. Conference in New York City. And on December 3rd we'll be at the Daniel Energy Partners NASDAQ market site in New York City. Oh and lastly on December 9th and 12th at Roth Deer Valley in Park City, Utah. For any other events and the latest info go to our website and I'll turn it over to Ryan. Yeah thanks. Thank you all.

Thank you for joining us today and we look forward to updating you on our progress and how Flowtech is bringing technology to the forefront and tip of the spear going forward. Thank you guys.

Ladies and gentlemen, this concludes today's conference call. You may now disconnect. Thank you.