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Image source: The Motley Fool. Tuesday, Aug. 11, 2026 at 8:00 a.m. ET Vice President, Finance, Corporate Development, and Investor Relations - Andrew Leonpacher President and Chief Executive Officer - Joe Bob Edwards Chief Financial Officer - Jonathan Byers Operator: Good morning. Welcome to Flowco Holdings, Inc.'s Second Quarter 2026 Earnings Call. Today's call is being recorded. We have allocated 1 hour for prepared remarks and questions and answers. At this time, I would like to turn the conference over to Andrew Leonpacher, Vice President, Finance, Corporate Development, and Investor Relations at Flowco. Thank you. You may begin. Andrew Leonpacher: Good morning, everyone, and thanks for joining us to discuss Flowco's second quarter results. Before we begin, we would like to remind you that this conference call may include forward-looking statements. These statements, which are subject to various risks, uncertainties, and assumptions, could cause our actual results to differ materially from these statements. These risks, uncertainties, and assumptions are detailed in this morning's press release as well as our filings with the SEC, which can be found on our website at ir.flowco-inc.com. We undertake no obligation to revise or update any forward-looking statements or information except as required by law. During our call today, we will also reference certain non-GAAP financial information. We use non-GAAP measures as we believe they more accurately represent the true operational performance and underlying results of our business. Presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Reconciliation of GAAP to non-GAAP measures can be found in this morning's press release and in our SEC filings. Joining me on the call today are our President and Chief Executive Officer, Joe Bob Edwards, and our Chief Financial Officer, Jon Byers. Following our prepared remarks, we'll open the call for your questions. With that, I'll turn the call over to Joe Bob. Joseph Edwards: Thank you, Andrew. Good morning, everybody, and thank you for joining us today. I'll begin today's call with a review of our second quarter performance and key highlights. Jon will then discuss our financial results, segment performance, capital allocation, and balance sheet in more detail. I'll conclude with our perspective on the current market environment and our outlook for the third quarter. Flowco delivered solid results in the second quarter, generating adjusted EBITDA of approximately $94 million while maintaining our top-quartile adjusted EBITDA margins of roughly 40%. Revenue increased 13% quarter-over-quarter, while adjusted EBITDA grew 10%, reflecting solid execution across the business. These results were supported by better-than-expected performance from recently acquired Valiant, continued growth in rental revenue across our Surface Equipment and Vapor Recovery businesses, and a stronger quarter in Downhole Components product sales. Flowco generated $50 million of free cash flow during the quarter, further enhancing our balance sheet and reinforcing the strength of our business model. 56% of our revenue in the quarter was generated from rental revenue, which provide a high degree of revenue visibility, while our asset-light sales businesses continue to generate attractive returns and strong cash conversion. This balanced model enables us to consistently generate meaningful free cash flow while we invest in Flowco's long-term growth prospects. Overall, I am very pleased with our execution during the quarter. While we experienced the cost headwinds discussed in our mid-quarter update, which Jon will discuss in greater detail, our team remained focused on the factors within our control: superior service quality, efficient execution, and delivering the solutions that help operators generate more attractive returns from their existing assets. This disciplined approach enabled us to deliver results within our original expectations. Our second quarter performance reflects the demand for Flowco's production optimization technologies and the critical role they play throughout the productive life of the well. Whether we are enhancing production through our broad artificial lift portfolio, capturing high-value hydrocarbons through our Vapor Recovery solutions, or providing the Surface Equipment that enables more efficient production of oil and natural gas, our objective is the same: helping customers optimize production with the right solution for each well, every time. As operators continue to prioritize production optimization to drive their performance, we believe our differentiated platform is well positioned to support our customers throughout the lifecycle of the well. Looking ahead, we see opportunities to further leverage our platform and deliver even greater value to our customers. Valiant is an excellent example of this strategy in action. The acquisition of Valiant's ESP capability broadened our production optimization platform while enhancing our ability to better serve customers across the life of the well. By leveraging the operational data generated through platforms like Optimus, Valiant's ESP monitoring and optimization software, we are better positioned to identify customer opportunities earlier and deliver more integrated solutions. We believe this data-driven, collaborative approach is applicable across our platform and will continue to strengthen customer relationships, identify new commercial opportunities, and enhance the value we deliver. In summary, the second quarter demonstrated our ability to deliver profitable growth, generate meaningful free cash flow, and continue executing on our long-term strategy. With that, I'll turn it over to Jon. Jonathan Byers: Thanks, Joe Bob. Turning to our financials, second quarter performance was within our original guidance range, driven by growth in our high-margin rental businesses and a full quarter of contribution from Valiant. Total revenue increased 13% sequentially to $236 million, primarily driven by growth within Production Solutions. Adjusted EBITDA increased approximately $8 million from the first quarter to approximately $94 million. While higher operating and maintenance expenses within Production Solutions created modest margin pressure during the quarter, we continue to deliver approximately 40% adjusted EBITDA margins, highlighting the strength of our operating model and customer demand for our technologies. In our Production Solution segment, second quarter revenue increased 22% sequentially to $171 million, while adjusted segment EBITDA increased approximately 16% to $71 million. The increase was primarily driven by Downhole Components, including the contribution from Valiant, which is performing ahead of our expectations. Integration activities for Valiant are substantially complete, and our focus has shifted towards capturing incremental commercial opportunities across the combined platform as we continue to invest in the business. Turning to margins, adjusted segment EBITDA margin decreased 229 basis points quarter-over-quarter, reflecting a revenue mix shift towards Downhole Components following the inclusion of Valiant, as well as higher operating and maintenance expenses within the segment, including increased lubricant and fuel expenses. We expect these cost pressures to continue into the third quarter and have reflected them in our third quarter guidance. We are actively focused on mitigating these cost pressures through disciplined cost management, improving the efficiency of our rental fleet maintenance program, optimizing overtime, and reducing fuel and lubricant costs where possible. In our Natural Gas Technology segment, second quarter revenue and adjusted segment EBITDA each decreased 6% sequentially to approximately $65 million and $28 million, respectively. The decline was primarily driven by lower Vapor Recovery system sales, which more than offset continued growth in our Vapor Recovery rental business. Turning to corporate costs, second quarter corporate expenses decreased to $5 million from approximately $5.6 million in the prior quarter, primarily due to lower professional fees. Overall, second quarter adjusted EBITDA came in at $93.9 million, underscoring the durability of our operating model and building on the momentum we outlined last quarter. In the second quarter, we generated approximately $50 million of free cash flow while investing $45 million of capital, primarily to expand our Surface Equipment and Vapor Recovery rental fleets and support the continued growth of Valiant. Our annualized adjusted return on capital employed for the quarter was approximately 18%. Capital investment was elevated during the quarter with the inclusion of Valiant and continued expansion of our rental fleet, but our full-year capital outlook remains unchanged and continues to support meaningful free cash flow generation. Our vertically integrated manufacturing model and 6-month lead time on equipment provide flexibility to respond efficiently to customer demand while focusing our capital on high-return opportunities. Turning to our balance sheet, liquidity, and capital allocation, we continue to strengthen our financial position during the second quarter and into the third quarter, increasing available liquidity while reducing leverage further below 1x. As of August 7, we had approximately $274 million of borrowings outstanding under our credit facility with a borrowing base of $722 million. We had approximately $446 million of available capacity. Our conservative balance sheet and consistent cash flow generation provide the flexibility to invest organically, pursue strategic acquisition opportunities that strengthen the business, and consistently return capital to shareholders through dividends and opportunistic share repurchases. Subsequent to the quarter, our board approved a $0.14-per-share one-time special dividend to Class A shareholders only. This is in addition to our quarterly discretionary dividend of $0.09 declared on July 30. As a result of our ownership structure, we've accumulated cash on our balance sheet and are returning this cash to our shareholders. We do not anticipate similar special dividends in the future. In summary, we delivered another strong quarter, strong free cash flow, disciplined investment and high-return growth, and a stronger balance sheet that provides strategic flexibility. We're well positioned for the opportunities ahead. Back to you, Joe Bob. Joseph Edwards: Thanks, Jon. Let me close by sharing our perspective on the current market environment, Flowco's positioning, and our outlook for the quarter. We believe we continue to benefit from our North American positioning, where reliable domestic energy production is playing an increasingly important role in meeting global energy demand. We continue to see an uptick in activity across portions of our customer base, which we expect will increasingly accrue to Flowco's benefit over time. With U.S. production expected to remain near record levels, operators must continue working to offset natural decline across a large and growing base of producing wells. This requires an increasing focus on production optimization, operating efficiency and recovery, providing consistent demand for our solutions. Against this backdrop, we anticipate third quarter adjusted EBITDA of $92 million to $98 million. We will continue to drive incremental efficiencies across our full organization and further integrate our platform. Increasingly, that means putting our operational data and deep industry expertise to work, not just to identify cross-sell opportunities and the right solutions for each customer, but to run our broader rental fleet more efficiently through condition-based maintenance powered by AI and machine learning. We also remain disciplined in evaluating strategic opportunities that complement our existing technologies, broaden our platform, and enhance the value that we deliver customers. Together, we believe this positions us to deepen customer relationships and drive profitability over time. We believe Flowco is the leading pure-play production optimization platform positioned to benefit from our customers' non-discretionary spending patterns in what has become an increasingly industrialized production base in North America. We believe our margins, returns on capital, consistency of our free cash flow generation, and capital-efficient growth are differentiated within our industry segment. As we continue to execute quarter after quarter, we believe these qualities will increasingly become evident, leading to long-term value creation for our shareholders. And with that, I'll turn it back to the operator for Q&A. Operator: [Operator Instructions] Our first question is from Arun Jayaram with JPMorgan. Arun Jayaram: I was wondering, Joe Bob, if you could elaborate a little bit more on what you're seeing with the Valiant, kind of, acquisition, you appear to be ahead of plan. I know when you guys got Valiant, they had about 30 to 35 customers. This compares to Flowco, I think you have over 300 customers. And then you'd highlighted expectations to deliver around $52 million of EBITDA at, kind of, 40% margins. Can you maybe give us an updated view on what you think Valiant can deliver and opportunities to further scale this part of your business? Joseph Edwards: Yes, absolutely, Arun, and thanks for the question. Listen, as we said in our prepared remarks, we are very pleased with how well the Valiant integration has gone and how well the culture that the Valiant team built has integrated into the Flowco culture. As it relates to customers, you've just highlighted exactly what we are doing, which is expanding the Valiant customer base through deliberate, intentional conversations with customers that we have a deep history with on the Flowco side, where Valiant might or might not have done work with in the past. But really using that platform and the integrated approach to business development to expand that customer base. Not quite ready to give you specifics on how much ahead of plan we are, but yes, the guidance that we provided looks eminently achievable, and we will report back once we have a little more visibility through the end of the year on, kind of, what our expectations are for Valiant on a full-year basis. But rest assured, things are going well and hope to have more specificity for you potentially next quarter. Arun Jayaram: Great. My follow-up, Joe Bob, just digesting the guide that you gave, call it $92 million to $98 million for 3Q, which would be up slightly from 2Q on a sequential basis. Could you or Jon just provide a little bit more segment-level detail on your expectations for 3Q, including thoughts on what would frame maybe the upper end of the guide versus the lower end, but maybe just a little bit more segment-level detail would be appreciated. Joseph Edwards: Yes, Jon can certainly dive into some specifics there, but look, at a high level, our capital deployment across really all segments is really unchanged. You'll see some quarter-by-quarter variation here and there just given the natural ups and downs of delivery times. But there's really no change in our expectation on a full-year basis for capital deployment. So that really at a high level will inform the guide and the range of outcomes. And before Jon goes into detail, what I'll also remind you is that our Downhole Components business, which now does include Valiant, is more variable on a quarter-by-quarter basis than our rental businesses. So I think the wide end of the range reflects that variability. We had a couple of months during Q2 that were behind expectations and a month that was ahead of expectations for Downhole Components. So I expect that variability will continue, but I also expect a maybe slightly better-than-expected results as compared to history because of the inclusion of Valiant in the Downhole Components segment. Jon, did I say all that right? Jonathan Byers: Yes, I think you got it. I mean -- Arun, kind of, directionally, we expect Surface Equipment to be relatively flat quarter-over-quarter. We expect a little bit of an uptick in NGT driven by an increase in business at NGS, which is our packaging business that we use internally and externally. Operator: Our next question is from Derek Podhaizer with Piper Sandler. Derek Podhaizer: I just want to stick on the Valiant conversation. I appreciate we're not giving out too many details yet, but have you seen any immediate wins now that you had a few months with the company on the Flowco platform, as far as cross-selling opportunities? Obviously, you have the starting artificial lift solutions in HPGL and ESP, but then as you kind of move towards that conventional gas lift into plunger lift, have you had a conversation around those or have seen any sort of immediate wins when it comes to cross-selling opportunities? Joseph Edwards: Derek, we have. It's off to a great start. A couple of examples. Recall that within legacy Flowco, we have what we refer to as our cap and spooling business. This is the actual service where an operator will really unbundle the installation of an ESP. They will choose a vendor to actually buy the ESP, and they'll choose a different vendor to run the cable and the capillary string downhole to optimize the performance of the ESP. Valiant historically had gone to market in two ways, on a limited basis themselves, but actually to a larger degree externally. Flowco, before the acquisition of Valiant, was one of the larger players in the Permian Basin on that specific product line, even though we did not offer an ESP product prior to our acquisition of Valiant. The low-hanging fruit is actually starting to come our way, which is, on every Valiant installation, we are increasingly relying on our own internal capability to install the cap string and the ESP cable. So that's an immediate uplift, kind of a no-brainer, if you will. More broadly, on the customer-by-customer intentionality that I described earlier in Arun's question, yes, we're starting to see some good results there. Going to hold off on talking about, again, specifics around customers, but some household names are starting to engage with us on a more holistic approach to the early days first form of artificial lift installation. That's been very promising. And then also, again, early days, but we're starting to see some very interesting signs internationally coming out of our Valiant acquisition. Not only does the team there have deep experience in international markets, many of which are very large ESP markets, but they're going to dovetail nicely with some of the organic efforts that we've had historically at Flowco. So our ambition is to talk more openly and more specifically about some international wins in the coming quarters. Still a bit early though, but I think more broadly, Derek, the last thing I'll mention here is the Valiant acquisition and integration, really, I think, the playbook for Flowco has been written. Okay, we've proven to ourselves, and hopefully this is demonstrated in our commentary to you, we've been very successful, I think, identifying and integrating acquisitions that make sense. And so keep an eye on that for us in the coming quarters. We hope to add more as our business progresses. Derek Podhaizer: Great. Very helpful and encouraging commentary there, Joe Bob. I appreciate it. My follow-up, I just wanted to go back to some of the cost inflationary pressures that you felt during the quarter. It sounds like these will somewhat remain consistent maybe through the rest of the year. But I think specifically on the lube oil side, I know your compression peers are also navigating and facing these pressures as well. Maybe can you help us understand how you expect or potentially lock in or de-risk some of these longer-term swings when it comes to lube oil and what you're able to do with your supply chain as we think about how much of an overhang this could potentially be for the business over the next, you know, 6 to 18 months or something like that? Just maybe a little bit more education and help as we try to think about lube oil's effect on your business. Joseph Edwards: Yes, so we procure a lot of lube oil for our fleet of compressors, over 5,000 units in our fleet. We have choice among suppliers, but we also try to manage that supply chain by locking in prices periodically. And just so, the suppliers of that commodity, it's tied directly to crack spreads. So everything you're seeing in the refining space with crack spreads being really at an all-time high are directly impacting the pricing of that product for us. We have very limited potential ways to pass that through. Contracts don't contemplate our ability to actually share that risk with customers, unfortunately. So we have to get more creative. And we're actively trying to manage that. The contract that we are currently living under, the most substantial one, is priced 90 days in advance. So I think for Q3, the cake is baked. I'm looking at Jon, he's nodding, I think that's right. But we're actively looking for ways to help there. Anything to add there? Jonathan Byers: No, I don't think so on the lube oil side. I do want to highlight operations and maintenance has been a part of the cost increase as well, probably a bigger part than lube oil. And that's something where I think I don't expect anything in the short term, but I think over the medium term, that's something we've got real expertise in operating fleets across the two segments. And so I think that's something that more to come in the next 6 months where we can make some progress. Operator: Our next question is from Phillip Jungwirth with BMO Capital Markets. Phillip Jungwirth: Free cash flow is really strong in the quarter, and you've been above 50% EBITDA conversion for the last five quarters now, I think. I know this can bounce around a bit, but just how are you viewing medium-term free cash conversion now for the business? And maybe go into a little bit more detail on the thought process behind the special dividend in the quarter, although I know you said don't expect that to continue in the future. Joseph Edwards: Yes, Phil, look, free cash flow, return on capital. These aren't just buzzwords that we talk to you guys about. These are our North Stars within Flowco. Okay, we talk every day with the folks on the front line running businesses on every lever they can pull to impact those two key metrics. Okay, so we are laser-focused on generating not just high EBITDA margins or not just revenue growth, but real free cash flow, cash-on-cash returns. Every quarter compounded over time should yield increased equity value, right? That's kind of finance 101. So those are our North Stars. We're going to continue to emphasize that. Yes, we're very pleased with the conversion this quarter, are happy that this is sort of a quarter-over-quarter continuing story, and really hope to continue that story in the back half of the year. Phillip Jungwirth: Yes. Then on... Jonathan Byers: Just to address this special, if you want me to, we're an Up-C, that's our corporate structure, and historically we've paid tax distributions at the individual tax rates of 40%. Flowco pays taxes at 22%. But when distributions are made, it's done pro rata. So everybody gets the same amount per share, per unit. That resulted in accumulation of cash on the balance sheet. And what the board has said is, look, we're going to return that to our shareholders. And going forward, we have the option just to pay tax distributions at the corporate tax rate. And so that's the plan. And that's why we don't expect another one-time special dividend in the future. Phillip Jungwirth: Got it. Appreciate that. Then on the production optimization platform with Valiant added, could you expand on the technology integration point and specifically what you're doing here? And then, just separately, we've heard a lot from the E&Ps talking about utilizing AI to manage artificial lift systems. Are there ways in which Flowco is able to implement this technology in its own products and services? And I know you referenced this earlier as far as condition-based maintenance, too. Joseph Edwards: Yes, so the Valiant technology that they've developed in-house is really something special. Okay, so we have a fleet of ESPs installed in customer wells, and we are able to capture real-time operating data on every one of those ESPs, and that data is monitored in real time remotely. And it's actually today monitored with human beings that look at data and actually predict when wells will require a change. The changes could be, let's adjust the operating parameters of the ESP, or this well is about to go down and we might need to get out there and do something about it in terms of an intervention and potentially even change the form of lift that's being used to lift that well. Okay, so you can imagine that where there's a human being looking at data today, there presents the potential for AI to not only provide predictive analytics on when wells will go down, but also autonomously intervene in the operation of those wells with, obviously with the permission of the customer. We've certainly seen the successes that others have had in this area. I would say that it's still early in the U.S. onshore where we currently operate. Customers are on their own AI journey and customers are to varying degrees embracing it and resisting it. And I'll quote more than a handful of customers when I say they will not today. They are very uncomfortable eliminating the human being from the operation of thousands of wells in the field. Now, will we get there one day? Maybe. Will it be a straight line up and to the right? Absolutely not. It will be fits and starts. Customers will have varying opinions on this because it impacts not only their operations, but also potentially thousands of employees. So we're in the middle of it. We are making progress at our own pace. We also see a lot of opportunity to take the early success of the ESP technology that we are today using for remote monitoring and intervention to help with that commercial collaboration as operators change the phase of lift over time. So from ESP to gas lift to plunger lift. And you use the same technology platform to help the customer not only monitor the well, but also have predictive analytics on when a well needs to have a lift change out. So that's our ambition. That's the effort that we're on internally. And we've got some very interesting case studies with customers where we're seeing success there. So stay tuned for our version of this, but we're really happy with the progress that we're making. Operator: Our next question is from Keith Beckmann with Pickering Energy Partners. Keith Beckmann: I just wanted to get a sense around we've seen VRU sales tick down a little bit here, I think over the last quarter. I just wanted to get a sense maybe on what the upcoming catalyst could be for growth in that business. I think a little bit about pipeline capacity takeaway increasing is potentially one of them, but anything shorter term or longer term around potential growth in Natural Gas Technologies. Joseph Edwards: Yes, Keith, the growth story, they're still very much intact. Okay. Almost to a pad, well pads, particularly in the Permian Basin, have VRUs as standard equipment spec'd into the facilities design before any pad gets constructed and certainly before it gets turned on. So we're seeing that continue in the Permian. I think you mentioned pipeline takeaway capacity. That has been a concern of some customers that we've talked to about longer-range plans for installation of VRU. We are starting to see that be alleviated with more takeaway capacity, so that's good. I think the in-basin power theme that a lot of oil companies and service companies are starting to highlight is going to be a tailwind as well for increased VRU adoption. Every molecule that you can capture that you can send, even if it's just in-basin, to in-basin generation, is one less molecule you have to go find. So yes, I think that the tailwinds for VRU are very much intact. Any kind of slowdown you see in VRU sets or sales, I'd say is really just consistent with the lumpiness of the quarter-by-quarter growth trajectory. But we have continued confidence in our ability to deploy more VRUs, either by the way of selling them to customers who want to own them or building them and putting them in our rental fleet. Keith Beckmann: Awesome. No, it's really helpful. And then my second question is a little bit twofold. So I think about kind of the 6-month look ahead you all do for CapEx and just wanted to get a sense into if you guys have a good feel for operators' plans into early next year and what that could mean for growth for you guys in the early next year. And then the second one, just thinking about, I think we've seen a lot of private operators kind of start to ramp here. I think of you guys as having more of a blue-chip customer base, larger customers, but I wanted to get a sense on if you're seeing any adaption of any of your technologies onto some of these smaller privates here at all? Joseph Edwards: Listen, to answer the second one first, yes, absolutely. The small private operator is still near and dear to Flowco's customer base. We work with a wide range of operators. Just by the law of big numbers and what's happened to the customer base via consolidation, sure, our top customers are the blue-chip customers, but there are a plethora of either private family-backed businesses or private equity-backed businesses that Flowco works with. As it relates to your first question around longer-dated growth expectations, look, we've seen, as you have, rig counts increase, right? I think we're up 50-somewhat off the bottom, which is great. Every one of those rigs is being put to work to make new wellbores, and the question is, are they -- are operators building DUCs or are they turning those on? And at some level, we don't really care because every one of those wellbores that gets constructed needs to be produced for 20 years. And so we view the current uptick among our customer base and drilling activity as really just fueling the fire for future growth for us. So hard to put a number on it for '27 at this point, Keith, but we're feeling pretty good about the early signs of growth that customers are starting to lean into. Operator: There are no further questions at this time. I would like to turn the conference back over to Joe Bob for closing remarks. Joseph Edwards: Thank you all for tuning in and look forward to talking to you in 90 days. Appreciate it. Have a good summer. Operator: Thank you. This will conclude today's conference. You may disconnect at this time and thank you for your participation. 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Interested in Flowco Holdings Inc.? Here are five stocks we like better. Flowco delivered strong second-quarter growth: Revenue rose 13% sequentially to $236 million, adjusted EBITDA increased 10% to approximately $94 million, and free cash flow reached $50 million. Growth was driven by Production Solutions, rental expansion and a full-quarter contribution from the Valiant acquisition. Valiant is outperforming expectations, but Production Solutions margins declined because of a shift toward downhole components and higher fuel, lubricant and maintenance costs. Natural Gas Systems revenue fell 6% as lower equipment sales offset continued growth in vapor-recovery rentals. Flowco maintained its full-year capital outlook and ended the period with leverage below one times and approximately $446 million of available borrowing capacity. Third-quarter adjusted EBITDA guidance is $92 million to $98 million, while the company authorized a $0.14 special dividend in addition to its regular $0.09 quarterly dividend. Flowco (NYSE:FLOC) reported second-quarter results that included sequential revenue growth, adjusted EBITDA of about $94 million and $50 million in free cash flow, supported by rental-business growth, a full-quarter contribution from its Valiant acquisition and stronger downhole-components sales. President and Chief Executive Officer Joe Bob Edwards said revenue rose 13% from the first quarter, while adjusted EBITDA increased 10%. The company maintained an adjusted EBITDA margin of roughly 40% during the period. Rental revenue accounted for 56% of quarterly revenue, providing what Edwards described as a high degree of revenue visibility. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat “The second quarter demonstrated our ability to deliver profitable growth, generate meaningful free cash flow, and continue executing on our long-term strategy,” Edwards said. Total second-quarter revenue was $236 million, up 13% sequentially. Chief Financial Officer Jon Byers said growth was primarily driven by the Production Solutions segment, where revenue increased 22% from the prior quarter to $171 million. Adjusted segment EBITDA rose about 16% to $71 million. → 3 Dividend Champion Utilities for a Market That Can't Sit Still The increase was led by the downhole-components business, including contributions from Valiant, which Flowco acquired to expand its electrical submersible pump, or ESP, capabilities. Byers said Valiant was performing ahead of the company’s expectations and that integration activities were substantially complete. Production Solutions adjusted EBITDA margin declined 229 basis points sequentially. Byers attributed the decline to a revenue mix shift toward downhole components following Valiant’s inclusion, as well as higher operating and maintenance costs, including lubricant and fuel expenses. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War The company expects those cost pressures to continue into the third quarter. Management said it is seeking to mitigate the impact through cost management, maintenance-program efficiencies, overtime optimization and efforts to reduce fuel and lubricant costs where possible. Edwards said lubricant costs are being affected by elevated refining crack spreads, and the company has limited ability to pass the higher costs through to customers. Flowco periodically locks in lubricant prices, but its most substantial existing contract is priced 90 days in advance, meaning third-quarter costs are largely set, according to management. In the Natural Gas Systems segment, revenue and adjusted segment EBITDA each declined 6% sequentially, to approximately $65 million and $28 million, respectively. Byers said lower vapor-recovery-system sales more than offset continued growth in the vapor-recovery rental business. Edwards said Flowco continues to view vapor recovery as a growth opportunity, particularly in the Permian Basin, where vapor recovery units, or VRUs, are increasingly included in well-pad facility designs. He also cited additional pipeline takeaway capacity and the growth of in-basin power generation as potential tailwinds for VRU adoption. Management characterized quarter-to-quarter changes in VRU sales as part of the business’s normal lumpiness, while maintaining confidence in its ability to either sell systems to customers or add equipment to its rental fleet. Flowco generated approximately $50 million in free cash flow during the quarter while investing $45 million of capital. The capital spending primarily supported expansion of surface-equipment and vapor-recovery rental fleets and continued growth at Valiant. The company’s annualized adjusted return on capital employed was approximately 18% for the quarter. Byers said capital investment was elevated because of Valiant and rental-fleet expansion, but Flowco’s full-year capital outlook was unchanged. He said the company’s vertically integrated manufacturing model and approximately six-month equipment lead time give it flexibility to respond to demand. As of Aug. 7, Flowco had approximately $274 million of borrowings under its credit facility, against a borrowing base of $722 million, leaving about $446 million of available capacity. Management said leverage had fallen below one times. The board approved a one-time special dividend of $0.14 per Class A share, in addition to a quarterly discretionary dividend of $0.09 declared July 30. Byers said the special dividend reflects cash accumulated under Flowco’s Up-C ownership structure and that the company does not expect similar special dividends in the future. Flowco forecast third-quarter adjusted EBITDA of $92 million to $98 million. Management expects surface-equipment activity to remain relatively flat sequentially and anticipates a modest increase in Natural Gas Systems activity, driven by its packaging business. The company noted that its downhole-components business, including Valiant, can be more variable on a quarter-to-quarter basis than its rental operations. Edwards said Flowco is using its broader customer base to expand Valiant’s commercial reach. He cited an immediate cross-selling opportunity involving Flowco’s cap-and-spooling service, which installs ESP cable and capillary strings. Flowco is increasingly using its internal capabilities on Valiant ESP installations rather than relying on external providers, he said. The company also plans to use operational data from Valiant’s Optimus monitoring and optimization software to identify intervention needs and potential transitions among artificial-lift methods. Edwards said the technology currently relies on people monitoring real-time ESP operating data, while AI could eventually support predictive analytics and autonomous operational adjustments with customer approval. Management said adoption of AI-enabled operations remains at an early stage among U.S. onshore customers, with operators showing varying levels of comfort with reducing human involvement in managing large well portfolios. We are a leading provider of production optimization, artificial lift and methane abatement solutions for the oil and natural gas industry. Our products and services include a full range of equipment and technology solutions that enable our customers to efficiently and cost-effectively maximize the profitability and economic lifespan of the production phase of their operations. Our principal products and services are organized into two business segments: (i) Production Solutions; and (ii) Natural Gas Technologies. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Flowco Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was anchored by the successful integration of Valiant, which expanded the company's artificial lift portfolio into Electric Submersible Pumps (ESPs) and performed ahead of internal expectations. Revenue growth of 13% was supported by the Production Solutions segment, where performance was primarily driven by Downhole Components and the contribution from the Valiant acquisition. Management attributes the 40% adjusted EBITDA margins to a disciplined focus on service quality and helping operators optimize production from existing assets rather than relying solely on new drilling. The business model remains balanced between high-visibility rental revenue (56% of total) and asset-light sales that drive strong cash conversion and returns. Strategic positioning is focused on the 'industrialized' North American production base, where non-discretionary spending on production optimization is required to offset natural well declines. Operational efficiency is increasingly being driven by the Optimus software platform, using real-time data to identify cross-sell opportunities and transition customers through the lifecycle of artificial lift. Third quarter adjusted EBITDA guidance of $92 million to $98 million reflects anticipated variability in the Downhole Components segment and continued cost pressures. Management expects Surface Equipment revenue to remain relatively flat in Q3, while Natural Gas Technology is projected to see an uptick driven by internal and external packaging business. The company is transitioning toward condition-based maintenance powered by AI and machine learning to improve the efficiency of its 5,000-unit compressor fleet. Capital allocation will remain focused on high-return organic growth and strategic M&A, with a 6-month equipment lead time providing flexibility to adjust to shifting customer demand. International expansion is a key strategic ambition, leveraging Valiant's existing expertise and Flowco's organic efforts to enter large global ESP markets. Significant margin pressure is expected to persist due to higher operating and maintenance expenses, specifically increased costs for fuel and lubricants. Lube oil pricing is currently tied to high crack spreads and is typically locked in 90 days in advance, limiting the company's ability to mitigate these costs in the immediate term. A one-time special dividend of $0.14 per share was issued to address cash accumulation resulting from the Up-C corporate structure; management explicitly stated this will not be a recurring event. The Downhole Components business is noted as being more volatile on a month-to-month basis compared to the stable rental segments, contributing to a wider guidance range. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed they are ahead of the initial plan for Valiant and are actively cross-selling ESP services to Flowco's legacy base of over 300 customers. Immediate 'no-brainer' wins have been achieved by insourcing the installation of capillary strings and cables for Valiant ESPs using Flowco's existing service capabilities. Management noted that contracts generally do not allow for passing through lubricant cost increases to customers, requiring creative supply chain management. While lube oil is a headwind, broader operations and maintenance efficiency is viewed as a larger opportunity for cost improvement over the next six months. Flowco is using data to move toward autonomous intervention in wells, though management noted that many customers remain hesitant to remove human oversight entirely. The technology platform is being designed to predict the optimal timing for 'lift change outs'—transitioning a well from ESP to gas lift or plunger lift. Recent softness in VRU sales is attributed to quarterly 'lumpiness' rather than a trend change; VRUs are becoming standard equipment for Permian Basin well pads. Increased pipeline takeaway capacity and the trend toward 'in-basin power' generation are expected to serve as long-term tailwinds for gas capture technology.

Flowco Holdings Inc. (FLOC) came out with quarterly earnings of $0.36 per share, missing the Zacks Consensus Estimate of $0.37 per share. This compares to earnings of $1.26 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -2.70%. A quarter ago, it was expected that this company would post earnings of $0.34 per share when it actually produced earnings of $0.48, delivering a surprise of +41.18%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Flowco Holdings Inc., which belongs to the Zacks Oil and Gas - Integrated - International industry, posted revenues of $235.86 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.55%. This compares to year-ago revenues of $193.21 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Flowco Holdings Inc. shares have added about 19.2% since the beginning of the year versus the S&P 500's gain of 13.3%. While Flowco Holdings Inc. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Flowco Holdings Inc. was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.39 on $238.52 million in revenues for the coming quarter and $1.54 on $923.15 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Integrated - International is currently in the bottom 8% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Golar LNG (GLNG), is yet to report results for the quarter ended June 2026. This operator of carriers for natural gas shipping is expected to post quarterly earnings of $0.30 per share in its upcoming report, which represents a year-over-year change of +15.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Golar LNG's revenues are expected to be $125.03 million, up 65.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Flowco Holdings Inc. (FLOC) : Free Stock Analysis Report Golar LNG Limited (GLNG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Flowco Holdings Inc. (NYSE:FLOC) shares gained 4.66% in pre-market trading on Tuesday even after the oil and gas equipment provider reported second-quarter adjusted earnings below analyst expectations, as strong revenue growth and free cash flow provided more positive signals from the quarter. Adjusted earnings per share came in at $0.28 for the three months ended June 30, 2026, below the analyst consensus of $0.45. Revenue offered a stronger result, reaching $235.9 million and exceeding expectations. Sales increased 22.1% from $193.2 million in the same quarter last year. Flowco generated $49.8 million in free cash flow during the quarter, while adjusted EBITDA reached $93.9 million with a margin of 39.8%. “Flowco delivered solid second quarter results within our original guidance range, reflecting the resilience of our differentiated production optimization business and continued focus across the organization,” said Joe Bob Edwards, President and CEO. “Strong customer demand for our solutions, combined with disciplined execution, enabled us to offset the impact of cost headwinds during the quarter and generate approximately $50 million of free cash flow.” The cash generation provides an important counterweight to the earnings miss, particularly as the company continues integrating acquisitions and managing cost pressures. Production Solutions was the main contributor to Flowco’s expansion during the quarter, with segment revenue increasing 21.9% sequentially to $170.9 million. Growth was supported by the Valiant acquisition completed in March 2026, which added electric submersible pump capabilities to Flowco’s portfolio. Natural Gas Technologies generated $65.0 million in revenue, remaining broadly unchanged compared with the same period last year. The contrasting performance of the two divisions puts additional focus on Production Solutions as a key source of growth following the Valiant transaction. Alongside the quarterly results, Flowco’s Board of Directors declared a regular quarterly dividend of $0.09 per share and a special dividend of $0.14 per share. The company also reported substantial available liquidity, with approximately $446 million accessible through its revolving credit facility as of August 7, 2026. For investors, the positive pre-market reaction suggests attention is falling on Flowco’s 22.1% revenue growth, nearly $50 million of quarterly free cash flow and strong adjusted EBITDA margin rather than solely on the weaker-than-expected EPS figure. Future quarters will provide a clearer indication of whether Flowco can maintain that cash generation while translating the Valiant acquisition and strong customer demand into sustained earnings growth. Flowco Holdings stock price

This article first appeared on GuruFocus. Release Date: August 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Flowco Holdings Inc (NYSE:FLOC) delivered solid Q2 results with adjusted EBITDA of approximately $94 million and maintained top-quartile adjusted EBITDA margins of roughly 40%. The company generated strong free cash flow of $50 million during the quarter, reinforcing its balance sheet and business model strength. The Valeant acquisition is performing ahead of expectations, with integration activities substantially complete and a focus on capturing incremental commercial opportunities. Flowco Holdings Inc (NYSE:FLOC) continues to strengthen its financial position, reducing leverage further below one times and increasing available liquidity to approximately $446 million. The company sees an uptick in customer activity and benefits from non-discretionary spending patterns, positioning it well for future growth. Flowco Holdings Inc (NYSE:FLOC) experienced cost headwinds during the quarter, including higher operating and maintenance expenses, increased lubricant and fuel expenses, which created modest margin pressure. Adjusted segment EBITDA margin in Production Solutions decreased 229 basis points quarter-over-quarter due to a revenue mix shift and higher costs. The company expects cost pressures, particularly from lube oil tied to high crack spreads, to continue into the third quarter, with limited ability to pass through these costs to customers. Natural gas technology segment revenue and adjusted segment EBITDA each decreased 6% sequentially, driven by lower vapor recovery system sales. Flowco Holdings Inc (NYSE:FLOC) anticipates continued variability in its downhole components business, which could impact quarterly performance. Warning! GuruFocus has detected 4 Warning Sign with FLOC. Is FLOC fairly valued? Test your thesis with our free DCF calculator. Q: Can you elaborate on the Valiant acquisition's performance, which appears to be ahead of plan, and provide an updated view on what Valiant can deliver and opportunities to scale this part of the business? A: JoeBob Edwards (President and CEO): We are very pleased with how well the Valiant integration has gone and how well the culture has integrated into FloCo. We are expanding Valiant's customer base through deliberate, intentional efforts with customers we have a deep history with on the FloCo side. We are not quite ready to give specifics on how much ahead of plan we are, but the guidance we provided looks imminently achievable. We will report back once we have more visibility through the end of the year on our full-year expectations for Valiant. Q: Can you provide more segment-level detail on your expectations for 3Q, including thoughts on what would frame the upper end of the guide versus the lower end? A: JoeBob Edwards (President and CEO) and John Byers (CFO): Our capital deployment across all segments is really unchanged, with some quarter-by-quarter variation due to delivery times. The downhole components business, which now includes Valiant, is more variable on a quarter-by-quarter basis than our rental businesses, so the wide end of the range reflects that variability. We expect surface equipment to be relatively flat quarter over quarter, with a little bit of an uptick in NGT driven by an increase in business at NGS, our packaging business. Q: Have you seen any immediate wins now that you had a few months with Valiant on the FloCo platform as far as cross-selling opportunities, especially moving towards conventional gas lift and plunger lift? A: JoeBob Edwards (President and CEO): It's off to a great start. For example, within Legacy FloCo, we have a cap and spooling business for ESP installations. Valiant historically went to market externally for this, but now on every Valiant installation, we are increasingly relying on our own internal capability to install the cap string and ESP cable, providing an immediate uplift. We are also starting to see some household names engage with us on a more holistic approach to early-day artificial lift installation. Additionally, we are starting to see very interesting signs internationally coming out of the Valiant acquisition, with ambitions to talk more openly about international wins in the coming quarters. Q: Could you help us understand how you expect to lock in or de-risk longer-term swings when it comes to lube oil, and how much of an overhang this could be for the business over the next 6 to 18 months? A: JoeBob Edwards (President and CEO) and John Byers (CFO): We procure a lot of lube oil for our fleet of over 5,000 compressors. The pricing is tied directly to crack spreads, which are at an all-time high. We have very limited ways to pass that through to customers, as contracts don't contemplate sharing that risk. The most substantial contract is priced 90 days in advance, so for Q3, the cake is baked. However, operations and maintenance has been a bigger part of the cost increase than lube oil, and over the medium term, we have real expertise in operating fleets across the two segments, so we expect to make progress in the next six months. Q: Free cash flow is really strong in the quarter, and you've been above 50% EBITDA conversion for the last five quarters. How are you viewing medium-term free cash conversion now, and can you go into more detail on the thought process behind the special dividend? A: JoeBob Edwards (President and CEO) and John Byers (CFO): Free cash flow and return on capital are our North Stars. We are laser-focused on generating real free cash flow and cash-on-cash returns every quarter, compounded over time to yield increased equity value. Regarding the special dividend, due to our UPSI corporate structure, we historically paid tax distributions at the individual tax rate, resulting in an accumulation of cash on the balance sheet. The board decided to return that cash to shareholders. Going forward, we have the option to pay tax distributions at the corporate tax rate, so we do not expect another one-time special dividend in the future. Q: Could you expand on the technology integration point with Valiant, and are there ways FlowCo is able to implement AI to manage artificial lift systems, as you referenced with condition-based maintenance? A: JoeBob Edwards (President and CEO): The Valiant technology is really something special. We capture real-time operating data on every ESP in our fleet, monitored remotely by human beings who predict when wells will require changes. This presents the potential for AI to provide predictive analytics and autonomously intervene in well operations with customer permission. It's still early in the US onshore, as customers are on their own AI journey with varying degrees of embracement and resistance. We see a lot of opportunity to take the early success of ESP technology for remote monitoring and intervention to help with commercial collaboration as operators change the phase of lift over time, from ESP to gas lift to plunger lift. Q: We've seen VRU sales tick down a little bit over the last quarter. What could be the upcoming catalyst for growth in that business, and what are your thoughts on growth in natural gas technologies? A: JoeBob Edwards (President and CEO): The growth story for VRUs is still very much intact. Well pads, particularly in the Permian Basin, have VRUs as standard equipment spec'd into facilities. Pipeline takeaway capacity has been a concern, but we are starting to see that alleviated with more takeaway capacity. The in-basin power theme is going to be a tailwind for increased VRU adoption, as every molecule captured for in-basin generation is one less molecule to find. Any slowdown in VRU sales is consistent with the lumpiness of the quarter-by-quarter growth trajectory, but we have continued confidence in our ability to deploy more VRUs. Q: Do you have a good feel for operators' plans into early next year, and are you seeing adoption of your technologies onto smaller private operators? A: JoeBob Edwards (President and CEO): Yes, absolutely. The small private operator is still near and dear to Flowco's customer base. We work with a wide range of operators, including private family-backed and private equity-backed businesses. As it relates to longer-dated growth expectations, we've seen rig counts increase, and every one of those wellbores constructed needs to be produced for 20 years. We view the current uptick in drilling activity as fuel in the fire for future growth. It's hard to put a number on it for For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Wall Street analysts expect Flowco Holdings Inc. (FLOC) to post quarterly earnings of $0.37 per share in its upcoming report, which indicates a year-over-year decline of 70.6%. Revenues are expected to be $234.57 million, up 21.4% from the year-ago quarter. Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 2.5% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period. Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock. While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights. That said, let's delve into the average estimates of some Flowco Holdings Inc. metrics that Wall Street analysts commonly model and monitor. The consensus estimate for 'Revenues- Natural Gas Technologies' stands at $69.55 million. The estimate indicates a change of +7% from the prior-year quarter. The collective assessment of analysts points to an estimated 'Revenues- Production Solutions' of $165.15 million. The estimate suggests a change of +28.8% year over year. It is projected by analysts that the 'Adjusted Segment EBITDA- Production Solutions' will reach $68.12 million. Compared to the present estimate, the company reported $53.34 million in the same quarter last year. Analysts predict that the 'Adjusted Segment EBITDA- Natural Gas Technologies' will reach $28.94 million. The estimate is in contrast to the year-ago figure of $27.40 million. View all Key Company Metrics for Flowco Holdings Inc. here>>> Shares of Flowco Holdings Inc. have experienced a change of +1.7% in the past month compared to the +2.3% move of the Zacks S&P 500 composite. With a Zacks Rank #4 (Sell), FLOC is expected to underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Flowco Holdings Inc. (FLOC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Flowco Holdings Inc. (FLOC) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on August 11, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This company is expected to post quarterly earnings of $0.37 per share in its upcoming report, which represents a year-over-year change of -70.6%. Revenues are expected to be $234.57 million, up 21.4% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 2.53% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Flowco Holdings Inc., the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +6.85%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Flowco Holdings Inc. will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Flowco Holdings Inc. would post earnings of $0.34 per share when it actually produced earnings of $0.48, delivering a surprise of +41.18%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Flowco Holdings Inc. doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Flowco Holdings Inc. (FLOC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research