A forensic read on Flotek Industries Inc/Cn/ built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
-0.9
Distress distance
4
Forensic signals
26.9%
ROE
26.9%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Flotek Industries Inc/Cn/ earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads -0.9, placing it in the Distress zone. 4 forensic signals were flagged in its latest SEC filings, led by cash conversion.
What the filings flag
-0.01×
FY2023–FY2025
Cash conversion.Over FY2023–FY2025, cumulative operating cash flow was -0.01× cumulative net income. Reported profit is not turning into cash. The shortfall is profit tied up in working capital rather than collected — the accrual and receivables lines below show where.Cash conversion: operating cash flow divided by net income, the share of profit that arrived as cash.
+29.5%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +29.5% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building sharply — a large slice of profit sits in operating assets, not cash. An accrual is a claim that still has to be collected or written down, so the gap resolves in a later period whichever way it goes. The build is led by PP&E up +229% against revenue +27%. A cash-flow measure on the same base agrees: reported earnings ran ahead of operating cash by 18% of net operating assets, against an accruals ratio of 29.5%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average.Accruals ratio: the year-over-year change in net operating assets, relative to their own average.NOA (net operating assets): the money tied up in running the business, operating assets minus operating liabilities.
+12.9%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +27% over the last 2 years to FY2025 (+12.9%/yr). The count is growing — 28.4M shares in FY2023, 36.2M in FY2025: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~12.9% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~22%.
1.0% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 1.0% of revenue and 44% of free cash flow in FY2025 — about $0.06 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 12.9% a year across FY2023–FY2025 and that rate is not falling, so total profit has to grow by that much annually before any of it reaches a share. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
Key fundamentals
Latest Revenue$237.3M
Revenue Growth YoY+26.9%
Revenue CAGR (2yr)+12.3%
Net Margin12.9%
Free Cash Flow$5.2M
Return on Equity26.9%
Debt / Equity0.35x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Flotek Industries Inc/Cn/'s actual 10-K/10-Q/8-K filings?