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Flowco Holdings Inc Class A (FLOC)
:FLOC
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Flowco Holdings Inc Class A
(NYSE:FLOC)
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Rating:57Neutral
Price Target:―
Flowco Holdings Inc Class A's overall stock score is driven by strong revenue growth and strategic initiatives but is hampered by significant balance sheet risks and technical analysis indicating potential short-term weaknesses. The absence of valuation metrics adds uncertainty to the stock's relative appeal. The announcement of a dividend and optimistic guidance from the earnings call provide some positive outlook, but the financial risks need to be addressed for improved stability.
Positive Factors
Revenue Growth
Flowco's strong revenue growth outpaces industry averages, indicating robust demand and effective market strategies that enhance long-term competitiveness.
Cash Flow Generation
Consistent cash flow growth supports operational stability and provides resources for reinvestment, debt reduction, and potential shareholder returns.
Dividend Initiation
Initiating dividends reflects financial strength and commitment to shareholder value, enhancing investor confidence and signaling sustainable earnings.
Negative Factors
High Leverage
High leverage poses financial risks, limiting flexibility and increasing vulnerability to economic downturns, which could impact long-term stability.
Natural Gas Technologies Revenue Decline
Revenue decline in key segments like Natural Gas Technologies could signal challenges in maintaining growth, affecting overall performance.
Increased Tax Burden
The anticipated increase in tax rates post-IPO could reduce net income and cash available for reinvestment, impacting long-term financial planning.
Flowco Holdings Inc Class A (FLOC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.50B
Dividend Yield1.43%
Average Volume (3M)364.32K
Price to Earnings (P/E)32.5
Beta (1Y)0.98
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees1,283
SectorServices
Sector StrengthN/A
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.35
Shares Outstanding28,263,706
10 Day Avg. Volume226,104
30 Day Avg. Volume364,319
Financial Highlights & Ratios
PEG Ratio0.96
Price to Book (P/B)3.20
Price to Sales (P/S)5.02
P/FCF Ratio30.32
Enterprise Value/Market Cap1.69
Enterprise Value/Revenue4.61
Enterprise Value/Gross Profit13.24
Enterprise Value/Ebitda9.58
Forecast
1Y Price Target
$27.00Price Target Upside61.19% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Flowco Holdings Inc Class A Business Overview & Revenue Model
Company DescriptionFlowco Holdings Inc. operates as a holding company. The Company, through its subsidiaries, specializes in production optimization, artificial lift, and methane abatement solutions for the oil and natural gas industry.
How the Company Makes MoneyFlowco Holdings Inc makes money primarily through the acquisition and management of its subsidiary companies, which operate in various industries such as energy, technology, and infrastructure. The company generates revenue by leveraging the operational efficiencies and synergies of its diverse portfolio. Key revenue streams include dividends from subsidiary profits, capital gains from strategic sales, and earnings from operational improvements. Significant partnerships with industry leaders and financial institutions also contribute to Flowco's earnings by enhancing its investment capabilities and expanding its market reach.
Flowco Holdings Inc Class A Earnings Call Summary
Earnings Call Date:Nov 01, 2025
(Q3-2025)
| Next Earnings Date:Mar 24, 2026
Earnings Call Sentiment Neutral
Flowco demonstrated strong operational performance and execution despite facing revenue declines in key segments. The successful integration of new assets and growth in the high-margin rental portfolio contributed positively, though challenges in product sales impacted overall revenue.Q3-2025 Updates
Positive Updates
Strong Operational and Financial Execution
Flowco delivered adjusted EBITDA of $76.8 million, exceeding expectations, with a 382 basis point expansion in adjusted EBITDA margin quarter-over-quarter.
High-Margin Rental Portfolio Growth
Rental revenue increased to $107 million from $102 million last quarter, with a strategic shift towards high-margin rental portfolio, particularly high-pressure gas lift and vapor recovery systems.
Successful Asset Integration
Integration of 155 high-pressure gas lift and vapor recovery systems completed successfully, strengthening relationships with blue-chip customers and enhancing margin profile.
Reduction in Corporate Costs
Third quarter corporate expenses decreased to $3.8 million from $4.3 million in the second quarter, reflecting lower third-party professional service costs.
Positive Market Outlook
Flowco anticipates continued resilience and strong free cash flow generation across sales business units, with the rental fleet delivering consistent, predictable performance.
Negative Updates
Sequential Revenue Decline
Total revenue declined 8% sequentially, driven by lower product sales activity in both Production Solutions and Natural Gas Technologies segments.
Decrease in Natural Gas Technologies Revenue
Segment revenue decreased 21% to $51 million, with adjusted EBITDA decreasing by 7.6% due to a decrease in natural gas systems and vapor recovery system sales.
Lower Product Sales in Production Solutions
Production Solutions segment saw a 2.1% decrease in revenue primarily due to lower downhole components product sales, despite an increase in rental revenue.
Company Guidance
During the third quarter of 2025, Flowco Holdings, Inc. reported strong operational and financial results with an adjusted EBITDA of $76.8 million, which exceeded expectations, and a 382 basis point increase in adjusted EBITDA margin quarter-over-quarter. The company generated approximately $43 million in free cash flow, excluding capital from a recent asset acquisition. Revenue for the quarter was $176.9 million, showing an 8% sequential decline, mainly due to lower product sales in both the Production Solutions and Natural Gas Technologies segments. Despite this, rental revenue increased to $107 million from $102 million in the previous quarter, highlighting the growth and high-margin nature of Flowco’s rental portfolio. Adjusted net income was reported at $37.3 million. In the Production Solutions segment, revenue decreased by 2.1% to $126 million, while adjusted segment EBITDA increased by 3.6% to $55 million, with a 240 basis point margin expansion. The Natural Gas Technologies segment saw a 21% revenue decline to $51 million, but adjusted EBITDA margin improved by 714 basis points due to a favorable revenue mix shift. The company ended the quarter with $205.2 million of borrowings on its credit facility and declared a quarterly dividend of $0.08 per share. Looking ahead, Flowco anticipates fourth-quarter adjusted EBITDA to range between $76 million and $80 million, reflecting continued momentum in their rental fleets and an expected rebound in sales in the Natural Gas Technologies segment.Flowco Holdings Inc Class A Financial Statement Overview
Summary
Flowco Holdings Inc Class A demonstrates strong revenue growth and profitability indicators on the income statement, yet faces significant challenges on the balance sheet with high leverage and negative equity. Cash flow generation is a strength, showing good operational performance. The company should focus on improving its capital structure to mitigate financial risks and enhance long-term sustainability.Income Statement
Flowco Holdings Inc Class A shows a robust revenue growth with a significant increase from 2023 to 2024. The gross profit margin and net profit margin have improved, indicating enhanced operational efficiency. However, the margins could be higher compared to industry leaders, and the net profit margin is relatively modest. The EBIT and EBITDA margins are solid, reflecting strong core profitability.75
Positive
Balance Sheet
The company has a concerning debt-to-equity ratio due to negative stockholders' equity, posing a financial risk. While total assets have increased, the high level of total debt and negative equity are significant issues. The balance sheet reflects potential solvency risks that need addressing for long-term stability.40
Negative
Cash Flow
Operating cash flow has grown consistently, and the free cash flow is positive, indicating healthy cash generation capabilities. Although the free cash flow growth is notable, the free cash flow to net income ratio suggests room for improvement in cash conversion. Overall, cash flow stability is a positive aspect of the company's financials.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 550.52M | 535.28M | 243.32M | 148.61M |
| Gross Profit | 191.81M | 179.99M | 94.72M | 56.93M |
| EBITDA | 265.01M | 208.95M | 121.75M | 78.72M |
| Net Income | 87.14M | 80.25M | 58.09M | 32.73M |
Balance Sheet | ||||
| Total Assets | 1.69B | 1.59B | 392.09M | 366.21M |
| Cash, Cash Equivalents and Short-Term Investments | 7.24M | 4.62M | 0.00 | 0.00 |
| Total Debt | 264.69M | 676.69M | 243.08M | 223.17M |
| Total Liabilities | 364.94M | 749.84M | 258.34M | 238.13M |
| Stockholders Equity | 370.96M | 839.11M | 133.75M | 128.08M |
Cash Flow | ||||
| Free Cash Flow | 137.55M | 88.70M | 38.35M | -40.40M |
| Operating Cash Flow | 269.37M | 179.38M | 81.86M | 66.56M |
| Investing Cash Flow | -211.17M | -94.43M | -42.67M | -106.93M |
| Financing Cash Flow | -74.08M | -80.33M | -39.19M | 40.37M |
Flowco Holdings Inc Class A Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.58B | 15.86 | 8.10% | ― | 3.18% | -53.71% | |
68 Neutral | $2.87B | 15.76 | 9.21% | 1.80% | -12.05% | -46.45% | |
57 Neutral | $1.50B | 32.53 | ― | 1.43% | ― | ― | |
55 Neutral | $13.29B | 17.42 | 10.03% | 0.93% | 7.13% | -12.93% | |
45 Neutral | ― | ― | 0.28% | ― | -10.96% | -169.10% | |
45 Neutral | $1.03B | -85.98 | -1.20% | 11.87% | 20.68% | -112.42% | |
42 Neutral | $926.06M | -2.94 | -31.46% | ― | -11.92% | -53.72% |
* Services Sector Average
FLOC
Flowco Holdings Inc Class A
16.75
-12.84
-43.39%
MRC
MRC Global
13.78
-0.29
-2.06%
DNOW
Now
13.87
-1.31
-8.63%
LBRT
Liberty Oilfield Services
17.73
-0.39
-2.15%
ACDC
ProFrac Holding
3.43
-5.41
-61.20%
AESI
Atlas Energy Solutions
8.34
-13.92
-62.53%
Flowco Holdings Inc Class A Corporate Events
DividendsBusiness Operations and Strategy
Flowco Holdings Announces First Quarterly Cash Dividend
Positive
May 2, 2025
On May 2, 2025, Flowco Holdings Inc. announced its first quarterly cash dividend of $0.08 per share for its Class A common stock, payable on May 28, 2025, to shareholders of record as of May 14, 2025. This move, reflecting the company’s strong financial position and long-term strategy, aims to deliver value to shareholders while continuing to invest in future growth. The dividend declaration underscores Flowco’s commitment to maintaining regular payouts, although future dividends will depend on various factors, including financial performance and capital requirements.
Spark’s Take on FLOC Stock
According to Spark, TipRanks’ AI Analyst, FLOC is a Neutral.
Flowco Holdings Inc Class A’s overall stock score is driven by strong revenue growth and strategic initiatives, but is hampered by significant balance sheet risks and technical analysis indicating potential short-term weaknesses. The absence of valuation metrics adds uncertainty to the stock’s relative appeal.
To see Spark’s full report on FLOC stock, click here.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.