Flowco Holdings Inc.

Adjusted Segment EBITDA and Adjusted Segment EBITDA Margin

In addition to business segment profit or loss, our management also evaluates Adjusted Segment EBITDA, which is presented on a business unit level for purposes of allocating resources and evaluating operating and financial performance. As discussed above, the Company operates and manages its business units in the following two operating and reporting segments:

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Production Solutions: relates to rentals, sales and services related to high pressure gas lift, electric submersible pumps (ESP), conventional gas lift and plunger lift. This segment includes rental, sales and service revenues.

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Natural Gas Technologies: relates to the design, manufacturing, rental, sale and servicing of vapor recovery and natural gas systems. This segment includes rental, sales and service revenues.

We define Adjusted Segment EBITDA as segment net income, as adjusted in the same manner as defined for EBITDA and Adjusted EBITDA above. Reconciliation from segment net income, which includes direct segment costs but excludes corporate costs not directly related to either segment, to Adjusted Segment EBITDA is set forth as follows:

(1)

Represents transaction-related and business combination expenses associated with the Lifting Solutions acquisition that began to be incurred in the third quarter 2026. These costs were expensed as incurred and included in the consolidated statements of operations.

(2)

Reflects non-cash compensation expense for equity-based awards granted to our employees and non-employee directors, including expense associated with the accelerated vesting of certain employee awards during the third quarter 2026.

(3)

Represents one-time charges within the Production Solutions segment, including (i) termination benefits and related expenses associated with the departures of executive officers during the third quarters of 2026 and 2025 and (ii) a litigation settlement expense during the third quarter of 2025.