Flowco Holdings Inc. (FLOC)

Price$21.10Cached quoteAs of 2026-09-05 02:49 UTC

AI: Undervalued

Price checkFlowco looks inexpensive on cash flow and earnings multiples, though not at a distressed valuation.

Flowco Holdings Inc. is listed as FLOC on the New York Stock Exchange. The latest close remains below its IPO offer price, while market data shows roughly 6.9 times enterprise value to trailing EBITDA and about 14 times free cash flow. Enterprise value means the market value of the operating business after adding debt and subtracting cash. Those multiples are reasonable for an oilfield-services company and look attractive given recent growth, strong margins, and modest leverage, supporting an Undervalued view rather than a deep-value call.

Big pictureCash generation is strong, but acquisition spending means headline free cash flow needs context.

Second-quarter revenue was $235.9 million, adjusted EBITDA was $93.9 million, and free cash flow was $49.8 million; first-half free cash flow reached $102.1 million. Free cash flow is cash left after operating needs and capital spending, before acquisitions. The catch is capital allocation: first-half acquisition cash spending of $161.8 million pushed free cash flow after acquisitions negative. Borrowings were $274.1 million in early August, but roughly $446 million remained available on the revolving credit line, giving Flowco a substantial liquidity cushion.

Business strengthHigh-margin production services and recurring rentals reduce, but do not remove, energy-cycle risk.

Flowco’s roughly 40% adjusted EBITDA margin is unusually strong for an energy equipment and services business. Its focus on production optimization and artificial lift supports wells after drilling, so customer spending can be steadier than drilling-and-completion budgets. Rental revenue also adds repeat business. Still, Flowco is cyclical: lower oil or gas prices can cause producers to cut operating and capital spending. Natural Gas Technologies already declined sequentially in the second quarter, showing that even a resilient portfolio is not immune to customer timing and commodity conditions.

What could change the storyValiant execution, deleveraging, and energy spending will determine whether today’s discount is deserved.

A bull case assumes adjusted EBITDA stays near a $375 million annualized pace, free cash flow holds around $175–200 million, Valiant cross-selling works, and debt trends lower; that could support a higher multiple than today. A bear case assumes EBITDA falls 20–25% toward roughly $280 million, free cash flow drops below $100 million, and debt remains elevated as energy activity weakens; a five-times enterprise-value-to-EBITDA multiple would then look plausible. Share issuance for acquisitions is another watchpoint, although the March secondary offering itself was not dilutive.

AI: News

Q2 cash flow stays strongSecond-quarter earnings showed faster revenue growth, strong margins, and nearly $50 million of free cash flow.

On August 11, Flowco reported second-quarter revenue of $235.9 million, net income of $30.9 million, and adjusted EBITDA of $93.9 million with a 39.8% margin. Operating cash flow was $95.2 million and free cash flow was $49.8 million. Production Solutions improved sharply from the first quarter, helped by Valiant, while Natural Gas Technologies weakened because vapor-recovery system sales declined. Management also reported about $446 million of unused revolver capacity, highlighting solid liquidity after the acquisition.

Special dividend approvedThe board approved a one-time special dividend, adding to the regular quarterly cash payout.

On August 10, Flowco declared a one-time $0.14 special cash dividend for Class A shareholders, payable August 31 to holders of record August 21. The company said the payment would come from cash on hand and explicitly warned investors not to treat it as a new recurring policy. Combined with the regular quarterly dividend, the action signals confidence in near-term cash generation, but it also directs cash away from debt reduction, acquisitions, or further buybacks.

Secondary sale, company buybackSelling stockholders completed a secondary offering while Flowco repurchased shares, avoiding new-company issuance.

On March 23, affiliates of GEC Advisors sold 7.8 million existing Class A shares in an underwritten offering. Flowco did not issue the offered shares and did not receive proceeds, so the transaction itself did not dilute total ownership. At the same time, the company repurchased 780,000 shares under its existing authorization for about $16.5 million. The deal increased public float while using cash to reduce the share count, a mixed but shareholder-conscious capital-allocation signal.

Valiant acquisition closesFlowco completed the Valiant acquisition, adding electric submersible pumps and expanding artificial-lift offerings.

On March 3, Flowco completed its acquisition of Valiant Artificial Lift Solutions for approximately $200 million net of Valiant cash. The company funded about $170 million of net cash consideration with its asset-based lending facility and paid the balance with roughly 1.5 million Class A shares. Valiant broadened Flowco into electric submersible pumps and has since exceeded management expectations, but the transaction increased debt and created modest dilution, making integration and cash returns important to the valuation.

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Revenue

2022

2023

2024

2025

Net income

2022

2023

2024

2025

Free cash flow

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2023

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Total cash / debt

CashTotal debt

2022

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2025

Financial statements

	2025	2024	2023	2022
Revenue	$341.8M	$258.6M	$74.5M	$148.6M
Gross profit	−$4.8M	−$5.8M	−$30.3M	$56.9M
Gross margin	−1.40%	−2.26%	−40.60%	38.31%
Operating expenses	$118.6M	$62.5M	$15.2M	$14.2M
Operating income	$149.0M	$116.7M	$78.3M	$42.8M
Operating margin	43.60%	45.15%	105.12%	28.77%
EBITDA	$293.9M	$207.6M	$122.2M	$78.7M
EBITDA margin	85.98%	80.28%	163.92%	52.97%
Net income	$41.4M	$80.2M	$58.1M	$32.7M
Net profit margin	12.11%	31.03%	77.95%	22.02%
Basic EPSper basic share	$0.00	$3.65	$2.64	$1.49
Diluted EPSper diluted share	$1.24	$3.65	$0.66	$0.37

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

13.57%of listed shares

FMR LLC5.97M shares · Jun 30, 2026

View holders

Top 20 reported holders of FLOC
Holder	% owned
FMR LLC	13.57%5.97M shares
WD Thunder CV Ultimate GP LLC	9.97%4.38M shares
PRICE T ROWE ASSOCIATES INC /MD/	6.90%3.03M shares
BlackRock, Inc.	6.36%2.8M shares
AMERICAN CENTURY COMPANIES INC	5.45%2.4M shares
JPMORGAN CHASE & CO	4.25%1.87M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	4.16%1.83M shares
VANGUARD CAPITAL MANAGEMENT LLC	3.71%1.63M shares
First Eagle Investment Management, LLC	3.54%1.56M shares
SCHRODER INVESTMENT MANAGEMENT GROUP	3.09%1.36M shares
Nuveen, LLC	2.66%1.17M shares
STATE STREET CORP	2.41%1.06M shares
Encompass Capital Advisors LLC	2.32%1.02M shares
LOOMIS SAYLES & CO L P	2.10%921.1K shares
GEODE CAPITAL MANAGEMENT, LLC	2.03%893.76K shares
WELLINGTON MANAGEMENT GROUP LLP	2.00%881.23K shares
GOLDMAN SACHS GROUP INC	1.99%876K shares
LAZARD ASSET MANAGEMENT LLC	1.72%757.14K shares
ROYCE & ASSOCIATES LP	1.29%567.85K shares
MORGAN STANLEY	1.07%472.04K shares

Percentages use 43.96M shares of this listed class outstanding on Jun 30, 2026.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys14$2.17M disclosed value

Sells (SEC code S)31$386.61M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Mar 26, 2026Form 4/A	GEC Advisors LLC +8TenPercentOwner,Other	SellClass A Common Stock · indirect	12.6K	$21.18	$266.2K	311.4K
Mar 26, 2026Form 4/A	GEC Advisors LLC +8TenPercentOwner,Other	SellClass A Common Stock · indirect	14.2K	$21.18	$300.9K	351.9K
Mar 26, 2026Form 4/A	GEC Advisors LLC +8TenPercentOwner,Other	SellClass A Common Stock · indirect	604.7K	$21.18	$12.81M	0
Mar 26, 2026Form 4/A	GEC Advisors LLC +8TenPercentOwner,Other	SellClass A Common Stock · indirect	286.2K	$21.18	$6.06M	0
Mar 26, 2026Form 4/A	GEC Advisors LLC +8TenPercentOwner,Other	SellClass A Common Stock · indirect	252.4K	$21.18	$5.35M	0

Review ownership filings at SEC.gov ↗

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Flowco Holdings Inc. (FLOC)

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