Flowco Holdings Inc.

Previous wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report. The following discussion includes forward-looking statements that involve certain risks and uncertainties. For further information on items that could impact our future operating performance or financial condition, see the sections entitled “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, and “Cautionary Note Regarding Forward-Looking Statements” in this Quarterly Report. We assume no obligation to update any of these forward-looking statements, except as required by law. Unless otherwise indicated or the context otherwise requires, the historical financial information in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” reflects only the historical financial results of Flowco Holdings Inc. and its consolidated subsidiaries and references to the “Company,” “we,” “our,” or “us” are to Flowco Holdings Inc. and its consolidated subsidiaries.

Current wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report. The following discussion includes forward-looking statements that involve certain risks and uncertainties. For further information on items that could impact our future operating performance or financial condition, see Part I, Item 1A, Risk Factors of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and in our Quarterly Reports on Form 10-Q for the three months ended March 31, 2026 and June 30, 2026, and “Cautionary Statement Regarding Forward-Looking Statements” in this Quarterly Report. We assume no obligation to update any of these forward-looking statements, except as required by law. Unless otherwise indicated or the context otherwise requires, the historical financial information in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” reflects only the historical financial results of Flowco Holdings Inc. and its consolidated subsidiaries and references to the “Company,” “we,” “our,” or “us” are to Flowco Holdings Inc. and its consolidated subsidiaries.

Previous wording

Revenue – rentals. Rental revenue was $132.7 million for the three months ended June 30, 2026, an increase of $30.6 million, or 30%, from $102.1 million for the three months ended June 30, 2025. This increase in rental revenue was driven primarily by three factors as follows:

Current wording

Revenue – rentals. Rental revenue was $141.8 million for the three months ended September 30, 2026, an increase of $34.8 million, or approximately 33%, compared to $107.0 million for the three months ended September 30, 2025. This increase was primarily attributable to the following:

Previous wording

Revenue – sales. Sales revenue was $103.2 million for the three months ended June 30, 2026, an increase of $12.1 million, or 13%, compared with $91.1 million for the three months ended June 30, 2025. The increase was primarily driven by higher sales of downhole components of approximately $15.2 million, primarily attributable to incremental sales from the Valiant Acquisition, which was completed in March 2026 and therefore was not reflected in the three months ended June 30, 2025. The increase also reflects higher sales of natural gas systems of approximately $1.3 million due to strong customer demand during the three months ended June 30, 2026. These increases were partially offset by a decrease in VRU sales of approximately $4.4 million as certain customers shifted their purchasing preferences from purchasing VRUs to renting equipment within our Natural Gas Technologies segment.

Current wording

Revenue – sales. Sales revenue was $116.9 million for the three months ended September 30, 2026, an increase of $46.9 million, or 67%, compared with $70.0 million for the three months ended September 30, 2025. The increase was primarily driven by higher sales of downhole components of approximately $21.1 million, including $18.6 million of incremental sales revenue generated from the Valiant Acquisition, which was completed in March 2026 and therefore was not included in the three months ended September 30, 2025. The increase also reflects higher sales of natural gas systems of approximately $24.8 million, primarily attributable to significantly higher customer order volumes during the three months ended September 30, 2026, compared to minimal sales activity during the three months ended September 30, 2025. Additionally, VRU sales increased approximately $0.9 million, primarily attributable to the timing of customer orders.

Previous wording

In addition to sales to our external customers, we sell our natural gas systems to our Production Solutions segment through intercompany transactions for further use in its operations. Intercompany sales of natural gas systems to the Production Solutions segment were approximately $13.7 million for the three months ended June 30, 2026, a decrease of approximately $3.4 million from approximately $17.1 million in the three months ended June 30, 2025. The decrease was primarily attributable to certain HPGL customers taking fewer new units than previously anticipated and delaying the timing of deliveries relative to their original schedules. All intercompany revenues have been eliminated in consolidation.

Current wording

In addition to sales to our external customers, we sell our natural gas systems to our Production Solutions segment through intercompany transactions for further use in its operations. Intercompany sales of natural gas systems to the Production Solutions segment were approximately $1.6 million for the three months ended September 30, 2026, a decrease of approximately $16.5 million from approximately $18.1 million in the three months ended September 30, 2025. The decrease was primarily attributable to certain HPGL customers taking fewer new units than previously anticipated and delaying the timing of deliveries relative to their original schedules. All intercompany revenues have been eliminated in consolidation.

Previous wording

Cost of rentals. Rental cost was $35.2 million in the three months ended June 30, 2026, an increase of $7.6 million, or approximately 28%, from $27.6 million for the three months ended June 30, 2025. The increase was primarily due to higher costs of approximately $6.9 million associated with the Surface Equipment rental fleet, reflecting increased rental activity, higher maintenance expenditures and operating costs on the rental fleet, and increased labor costs resulting from higher headcount. The increase in rental costs was generally consistent with the growth in rental revenues discussed above, although costs increased at a higher rate due to the additional maintenance and labor expenses.

Current wording

Cost of rentals. Rental cost was $36.9 million for the three months ended September 30, 2026, an increase of $7.6 million, or approximately 26%, compared to $29.3 million for the three months ended September 30, 2025. The increase was primarily attributable to higher costs of approximately $5.0 million associated with the surface equipment rental fleet, reflecting increased maintenance activities, higher operating costs and increased labor costs resulting from higher headcount. Additionally, vapor recovery rental costs increased approximately $1.0 million, generally consistent with the increase in vapor recovery rental revenue during the current-year period. The increase also included approximately $1.6 million of incremental costs associated with downhole component rental operations acquired in connection with the Valiant Acquisition in March 2026, which were not included in the three months ended September 30, 2025. Excluding the impact of the nonrecurring $9.1 million lease termination payment discussed above, the approximately 26% increase in cost of rentals was generally consistent with the 24% increase in rental revenue, with the slightly higher rate of cost growth primarily reflecting increased maintenance and labor expenses.

Previous wording

Selling, general and administrative expenses. Selling, general and administrative expenses for the three months ended June 30, 2026 were $35.7 million, an increase of $3.0 million, or approximately 9%, from $32.7 million for the three months ended June 30, 2025. This increase was primarily attributable to approximately $4.1 million of incremental selling, general and administrative expenses associated with the Valiant Acquisition, which was completed in March 2026 and therefore was not reflected in the three months ended June 30, 2025. The increase was partially offset by lower corporate selling, general and administrative expenses, primarily due to a reduction in legal and professional fees incurred in the first quarter of 2026 in connection with the Valiant Acquisition.

Current wording

Selling, general and administrative expenses. Selling, general and administrative expenses were $39.8 million for the three months ended September 30, 2026, an increase of $10.9 million, or approximately 37%, compared to $29.0 million for the three months ended September 30, 2025. The increase was primarily attributable to approximately $5.7 million of higher corporate selling, general and administrative expenses, driven by transaction-related costs incurred in connection with the anticipated Lifting Solutions acquisition (see Note 19 – Subsequent Events) and increased share-based compensation expense associated with the accelerated vesting of equity awards held by certain individuals. The increase also included approximately $4.0 million of incremental selling, general and administrative expenses associated with the Valiant Acquisition, which was completed in March 2026 and therefore was not included in the three months ended September 30, 2025. The remaining increase was primarily attributable to higher personnel and administrative expenses across the Company’s other operations.

Previous wording

Depreciation and amortization. Depreciation and amortization was $49.4 million for the three months ended June 30, 2026, an increase of $16.2 million, or approximately 49%, from $33.2 million for the three months ended June 30, 2025. The increase was primarily attributable to approximately $8.1 million of depreciation and amortization expense associated with the Valiant Acquisition, which was completed in March 2026 and therefore was not reflected in the three months ended June 30, 2025. Excluding the impact of the Valiant Acquisition, depreciation and amortization expense increased by approximately $8.1 million, primarily due to the continued expansion of the Company's rental fleet, including additional assets placed into service and assets acquired in the Archrock acquisition, principally within the Estis and Flogistix businesses.

Current wording

Depreciation and amortization. Depreciation and amortization was $48.9 million for the three months ended September 30, 2026, an increase of $10.0 million, or approximately 26%, compared to $39.0 million for the three months ended September 30, 2025. The increase was primarily attributable to approximately $8.2 million of depreciation and amortization expense associated with the Valiant Acquisition, which was completed in March 2026 and therefore was not reflected in the three months ended September 30, 2025. Excluding the impact of the Valiant Acquisition, depreciation and amortization expense increased by approximately $1.8 million, primarily driven by the continued expansion of the Company's rental fleet, including additional assets placed into service and assets acquired in the Archrock acquisition, principally within the Estis and Flogistix operations.

Previous wording

Revenue – rentals. Rental revenue was $254.5 million for the six months ended June 30, 2026, an increase of $55.1 million, or 28%, from $199.4 million for the six months ended June 30, 2025. This increase in rental revenue was driven primarily by three factors as follows:

Current wording

Revenue – rentals. Rental revenue was $396.3 million for the nine months ended September 30, 2026, an increase of $89.9 million, or approximately 29%, compared to $306.4 million for the nine months ended September 30, 2025. The increase was primarily attributable to the following:

Previous wording

In addition to sales to our external customers, we sell our natural gas systems through intercompany transactions for further use in the Production Solutions segment. Approximately $24.9 million of intercompany natural gas system sales to the Production Solutions segment were recognized in the six months ended June 30, 2026, a decrease of approximately $1.2 million in intercompany revenues from approximately $26.1 million in the six months ended June 30, 2025 due primarily to certain HPGL customers taking fewer new units than previously anticipated and delaying the timing of deliveries relative to their original schedules. All intercompany revenues have been eliminated in consolidation.

Current wording

In addition to sales to our external customers, we sell our natural gas systems through intercompany transactions for further use in the Production Solutions segment. Approximately $26.6 million of intercompany natural gas system sales to the Production Solutions segment were recognized in the nine months ended September 30, 2026, a decrease of approximately $17.7 million in intercompany revenues from approximately $44.3 million in the nine months ended September 30, 2025. The decrease was primarily attributable to certain HPGL customers taking fewer new units than previously anticipated and delaying the timing of deliveries relative to their original schedules. All intercompany revenues have been eliminated in consolidation.

Previous wording

Cost of rentals. Rental cost was $67.8 million in the six months ended June 30, 2026, an increase of $13.3 million, or approximately 24%, from $54.5 million for the six months ended June 30, 2025. The increase was primarily attributable to approximately $11.9 million of higher costs associated with the Surface Equipment rental fleet, reflecting increased rental activity, higher maintenance expenditures and operating costs on the rental fleet and increased labor costs resulting from higher headcount. Rental costs also increased by approximately $0.8 million for Vapor Recovery rental activity and approximately $0.7 million for downhole component rental activity from the Valiant Acquisition, which was not present during the six months ended June 30, 2025. The increase in rental costs was generally consistent with the growth in rental revenues discussed above, although costs associated with the Surface Equipment rental fleet increased at a higher rate due to the additional maintenance and labor expenses.

Current wording

Cost of rentals. Cost of rentals was $104.6 million for the nine months ended September 30, 2026, an increase of $20.9 million, or approximately 25%, compared to $83.7 million for the nine months ended September 30, 2025. The increase was primarily attributable to approximately $16.8 million of higher costs associated with the surface equipment rental fleet, reflecting increased rental activity, higher maintenance expenditures and operating costs associated with the rental fleet, and increased labor costs resulting from higher headcount. Additionally, vapor recovery rental costs increased approximately $1.7 million, reflecting increased rental activity during the nine months ended September 30, 2026. The increase also included approximately $2.3 million of incremental costs associated with downhole component rental operations acquired in connection with the Valiant Acquisition in March 2026, which was not included in the nine months ended September 30, 2025. Excluding the impact of the nonrecurring $9.1 million lease termination payment discussed above, the approximately 25% increase in cost of rentals was generally consistent with the 26% increase in rental revenue, although surface equipment rental costs increased at a higher rate due to the additional maintenance and labor expenses.

Previous wording

Selling, general and administrative expenses. Selling, general and administrative expenses for the six months ended June 30, 2026 were $72.1 million, an increase of $8.9 million, or approximately 14%, from $63.2 million for the six months ended June 30, 2025. This increase was primarily attributable to approximately $5.3 million of incremental selling, general and administrative expenses associated with the Valiant Acquisition, which was completed in March 2026 and therefore was not reflected in the six months ended June 30, 2025. Selling, general and administrative expenses also increased due to higher corporate expenses, primarily consisting of legal and acquisition-related professional fees that were not incurred in the six months ended June 30, 2025 and higher share-based compensation expense, as well as higher employee related expenses from the overall increased headcount. These increases were partially offset by lower selling, general and administrative expenses across certain of our legacy entities, primarily due to the absence of one-time legacy equity-based compensation crystallization expense recognized during the six months ended June 30, 2025 in connection with the Company's IPO.

Current wording

Selling, general and administrative expenses. Selling, general and administrative expenses for the nine months ended September 30, 2026 were $112.0 million, an increase of $19.8 million, or approximately 21%, compared to $92.2 million for the nine months ended September 30, 2025. The increase was primarily attributable to approximately $12.2 million of higher corporate selling, general and administrative expenses, primarily driven by increased legal and professional fees incurred in connection with the Valiant Acquisition and the anticipated Lifting Solutions (see Note 19 – Subsequent Events), higher share-based compensation expense, including the accelerated vesting of equity awards held by certain individuals and increased employee-related expenses. The increase also included approximately $9.3 million of incremental selling, general and administrative expenses associated with the Valiant Acquisition, which was completed in March 2026 and therefore was not reflected in the nine months ended September 30, 2025. These increases were partially offset by a net decrease of approximately $1.8 million in selling, general and administrative expenses across the Company’s other operations, primarily reflecting the absence of certain nonrecurring legacy equity-based compensation crystallization expenses recognized during the nine months ended September 30, 2025 in connection with the Company's IPO.

Previous wording

Depreciation and amortization. Depreciation and amortization was $90.9 million for the six months ended June 30, 2026 an increase of $23.6 million or approximately 35%, from $67.3 million for the six months ended June 30, 2025. The increase was primarily attributable to approximately $10.6 million of depreciation and amortization expense associated with the Valiant Acquisition, which was completed in March 2026 and therefore was not reflected in the six months ended June 30, 2025. Excluding the impact of the Valiant Acquisition, depreciation and amortization expense increased by approximately $12.9 million, primarily due to the continued expansion of the Company's rental fleet, including additional assets placed into service and assets acquired in the Archrock acquisition.

Current wording

Depreciation and amortization. Depreciation and amortization was $139.8 million for the nine months ended September 30, 2026 an increase of $33.5 million, or approximately 32%, from $106.2 million for the nine months ended September 30, 2025. The increase was primarily attributable to approximately $18.8 million of incremental depreciation and amortization expense associated with the Valiant Acquisition, which was completed in March 2026 and therefore was not included in the nine months ended September 30, 2025. Excluding the impact of the Valiant Acquisition, depreciation and amortization expense increased by approximately $14.8 million, primarily driven by the continued expansion of the Company's rental fleet, including additional assets placed into service and assets acquired in the Archrock acquisition, principally within the Estis and Flogistix operations.

Previous wording

Income tax provision. Income tax provision was $8.7 million for the six months ended June 30, 2026, an increase of $2.2 million, or approximately 33%, compared to $6.5 million for the six months ended June 30, 2025. This increase in income tax provision is primarily attributable to the impact on the tax rate due to the Company’s increased ownership in Flowco LLC in the six months ended June 30, 2026 compared to the six months ended June 30, 2025.

Current wording

Income tax provision. Income tax provision was $10.8 million for the nine months ended September 30, 2026, an increase of $6.5 million, or approximately 150%, compared to $4.3 million for the nine months ended September 30, 2025. The increase was primarily attributable to the Company’s increased ownership interest in Flowco LLC during the nine months ended September 30, 2026, resulting in a higher proportion of income subject to corporate-level income taxation. The increase also reflects the absence of a tax benefit recognized during the nine months ended September 30, 2025 following the enactment of the OBBBA in July 2025, which resulted in a reversal of a portion of the income tax provision previously recognized during the six months ended June 30, 2025.

Previous wording

As of June 30, 2026, we had $19.2 million of cash and cash equivalents. We believe existing cash and cash equivalents and cash flows from operations will be sufficient to support working capital and capital expenditure requirements for at least the next 12 months. We have historically generated cash and funded our operations primarily from cash flows from operating activities as well as availability under our Credit Agreement. Borrowings under our Credit Agreement have a maturity date of August 20, 2029, at which all principal owed is payable upon maturity. Our interest rate is Term Secured Overnight Finance Rate (“SOFR”) for one month plus 0.1% (“Adjusted REVSOFR30”) plus a contractual applicable margin based on the Company’s calculated leverage ratio, which combined approximates 5.43% per annum at the effective date with interest due monthly. If such rate is below contractual minimums, the interest rate will be calculated based on Adjusted Term SOFR Rate, Adjusted REVSOFR30 Rate or the Adjusted Daily Simple SOFR Rate. Depending upon market conditions and other factors, we may also have the ability to issue additional equity and/or debt, as needed.

Current wording

As of September 30, 2026, we had $137.8 million of cash and cash equivalents. We believe existing cash and cash equivalents and cash flows from operations will be sufficient to support working capital and capital expenditure requirements for at least the next 12 months. We have historically generated cash and funded our operations primarily from cash flows from operating activities as well as availability under our Credit Agreement. Borrowings under our Credit Agreement have a maturity date of August 20, 2029, at which all principal owed is payable upon maturity. Our interest rate is Term Secured Overnight Finance Rate (“SOFR”) for one month plus 0.1% (“Adjusted REVSOFR30”) plus a contractual applicable margin based on the Company’s calculated leverage ratio, which combined approximates 5.46% per annum at the effective date with interest due monthly. If such rate is below contractual minimums, the interest rate will be calculated based on Adjusted Term SOFR Rate, Adjusted REVSOFR30 Rate or the Adjusted Daily Simple SOFR Rate. Depending upon market conditions and other factors, we may also have the ability to issue additional equity and/or debt, as needed.

Previous wording

As of August 7, 2026, we had $274.1 million outstanding borrowings and $446.4 million available borrowing capacity under our Credit Agreement.

Current wording

As of October 30, 2026, we had $355.7 million outstanding borrowings and $364.8 million available borrowing capacity under our Credit Agreement.

Previous wording

In February and May 2026, our Board of Directors declared and paid a cash dividend of $0.08 per share and $0.09 per share payable to holders of Class A common stock of record as of the close of business on February 13, 2026 and May 15, 2026, respectively (the “Common Stock Dividend”). In conjunction with the Common Stock Dividend, Flowco LLC declared a distribution on its units of $0.08 and $0.09 per unit to all unitholders of record of Flowco LLC as of the close of business on February 13, 2026 and May 15, 2026, respectively. The declaration and payment of future dividends will be at the discretion of our Board of Directors and will depend on future business conditions, financial conditions, results of operations and other factors.

Current wording

In February, May and July 2026, our Board of Directors declared and paid a cash dividend of $0.08 per share payable to holders of Class A common stock of record as of the close of business February 13, 2026, and $0.09 per share payable to holders of Class A common stock of record as of the close of business on each of May 15, 2026 and August 14, 2026 (the “Common Stock Dividend”). In conjunction with the Common Stock Dividend, Flowco LLC declared a distribution on its units of $0.08 to all unitholders of record of Flowco LLC as of the close of business on February 13, 2026 and $0.09 per unit to all unitholders of record of Flowco LLC as of the close of business on each of May 15, 2026 and August 14, 2026. On August 10, 2026, our Board of Directors approved a one-time special cash dividend of $0.14 per share payable to holders of Class A common stock as of the close of business on August 21, 2026 (the “Special Dividend”). The Special Dividend applies only to the Company’s outstanding shares of Class A common stock and represents a one-time, discretionary event. The declaration and payment of future dividends will be at the discretion of our Board of Directors and will depend on future business conditions, financial conditions, results of operations and other factors.

Previous wording

On June 11, 2025, our Board of Directors authorized the Repurchase Program to reacquire shares via open market purchase, privately negotiated transactions, or by other means in accordance with the regulations of the Securities and Exchange Commission. The Repurchase Program does not obligate us to repurchase any particular amount of shares and may be modified, suspended, or discontinued at any time. The timing of purchases and the number of shares repurchased under the Repurchase Program will depend on a variety of factors including price, trading volume, market conditions and corporate and regulatory requirements.

Current wording

On June 11, 2025, our Board of Directors authorized a share repurchase program (the “Repurchase Program”) for up to $50 million of our Class A common stock. Repurchases under the Repurchase Program may be made from time to time through open market purchases, privately negotiated transactions, or other means in accordance with applicable regulations of the Securities and Exchange Commission. The timing of purchases and the number of shares repurchased under the Repurchase Program will depend on a variety of factors including price, trading volume, market conditions and corporate and regulatory requirements. The Repurchase Program does not obligate us to repurchase any particular amount of shares and may be modified, suspended, or discontinued at any time.

Previous wording

During the three months ended June 30, 2026, we repurchased no shares under the Repurchase Program. During the six months ended June 30, 2026, we repurchased and subsequently retired 780,000 shares of our Class A common stock at an average price of $21.18 per share, excluding commissions.

Current wording

During the three months ended September 30, 2026, we did not repurchase any shares under the Repurchase Program. During the nine months ended September 30, 2026, we repurchased and subsequently retired 780,000 shares of our Class A common stock at an average price of $21.18 per share, excluding commissions. As of September 30, 2026, the remaining total available authorization under the Repurchase Program was approximately $18.5 million.

Previous wording

The following table presents our summary cash flows for the periods presented (in thousands):

Current wording

The following table summarizes our cash flows for the periods presented (in thousands):

Previous wording

Operating Cash Flows– Net cash provided by operating activities was $173.9 million in the six months ended June 30, 2026 compared to $124.7 million in the six months ended June 30, 2025, an increase of approximately $49.2 million. Operating cash flows increased primarily due to timing of payments to vendors, suppliers and other third parties.

Current wording

Operating Cash Flows– Net cash provided by operating activities was $277.0 million in the nine months ended September 30, 2026 compared to $207.2 million in the nine months ended September 30, 2025, an increase of approximately $69.8 million. The increase was primarily attributable to higher cash receipts from customers driven by increased revenues and operating activity, as well as the timing of payments to vendors, suppliers and other third parties.

Previous wording

Investing Cash Flows– Net cash used in investing activities was $233.9 million and $63.4 million for the six months ended June 30, 2026 and 2025, respectively. The approximately $170.5 million increase in net cash used was primarily attributable to the cash paid for the Valiant acquisition during the six months ended June 30, 2026.

Current wording

Investing Cash Flows– Net cash used in investing activities was $264.6 million and $175.6 million for the nine months ended September 30, 2026 and 2025, respectively. The approximately $89.0 million increase in net cash used was primarily attributable to the cash paid for the Valiant acquisition during the nine months ended September 30, 2026.

Previous wording

Financing Cash Flows– Cash from financing activities had a favorable swing of $131.2 million from a net cash used of $56.6 million in the six months ended June 30, 2025 to net cash provided by financing activities of $74.6 million in the six months ended June 30, 2026. This $131.2 million change was primarily attributable to (i) $599.5 million favorable year-over-year change in net cash flows from long-term debt, consisting of higher borrowings and lower repayments during the six months ended June 30, 2026, (ii) the absence of $20.9 million purchase of LLC Interests from the Continuing Equity Owners immediately following the IPO, partially offset by (i) the absence of $461.8 million IPO proceeds in January 2025, (ii) $16.7 million of repurchase of Class A common stock in March 2026, (iii) $6.2 million additional distributions to the members of Flowco LLC in the six months ended June 30, 2026 compared to the six months ended June 30, 2025, and (iv) $4.0 million additional dividends paid to the shareholders of the Company’s Class A common stock.

Current wording

Financing Cash Flows– Net Cash provided by financing activities was $120.8 million for nine months ended September 30, 2026, compared to net cash used in financing activities of $28.9 million in the nine months ended September 30, 2025, representing a favorable change of $149.7 million. The change was primarily attributable to a $609.0 million increase in net cash flows from long-term debt, reflecting higher borrowings and lower debt repayments during the nine months ended September 30, 2026. The higher borrowings were primarily driven by additional amounts drawn under our Revolving Credit Facility in March 2026 to fund the Valiant Acquisition, while the lower debt repayments reflected the significant repayment of outstanding indebtedness during the nine months ended September 30, 2025, using proceeds from our IPO. The change also reflected the absence of approximately $20.9 million of cash to purchase LLC Interests from the Continuing Equity Owners following our IPO in January 2025. These favorable changes were partially offset by the absence of $461.8 million IPO proceeds received during the nine months ended September 30, 2025, an $11.9 million increase in dividends paid to Class A common stockholders, $5.5 million increase in distributions to members of Flowco LLC, and $1.5 million of additional cash used for repurchases of the Company’s Class A common stock.