0000950170-25-104997
SEC filingProFrac's Q2 2025 revenue fell 13% to $501.9M, driven by lower stimulation services activity and pricing, widening net loss to $105.9M.
ProFrac Holding Corp. reported Q2 2025 total revenue of $501.9M, a decrease of $77.5M or 13.4% compared to $579.4M in Q2 2024. The decline was primarily driven by a 15% drop in Stimulation Services revenue, which fell to $432.0M from $505.6M due to lower average active fleets and pricing. Product sales also decreased to $69.9M from $86.5M. Gross profit (revenue less cost of revenues excluding depreciation) declined to $127.2M from $186.3M, with gross margin contracting to 25.3% from 32.1%, reflecting cost inflation and operational deleverage. Operating loss widened to $54.3M from $49.2M, as higher other operating expenses ($25.3M vs $7.4M) offset modest cost reductions. Net loss attributable to ProFrac increased to $105.9M from $66.7M, including a $12.8M provision for credit losses and $10.5M loss on disposal of EKU Power Drives. Diluted EPS was $(0.67) versus $(0.42) in the prior year.
As of June 30, 2025, ProFrac had cash and cash equivalents of $26.0M, up from $14.8M at December 31, 2024. Total principal amount of long-term debt decreased to $1,110.0M from $1,138.9M, primarily due to net repayments. The 2022 ABL Credit Facility had $87.3M of remaining availability. Current assets increased to $580.3M from $574.1M, while total liabilities fell to $1,812.4M from $1,848.5M. Stockholders' equity declined to $875.5M from $1,006.9M, driven by net losses and preferred stock adjustments. The Alpine subsidiary's debt of $335.2M principal is structurally subordinated. The Alpine 2023 Term Loan was amended on June 26, 2025, reducing quarterly amortization from $15.0M to $5.0M through December 2025 and deferring the Total Net Leverage Ratio covenant test to the fiscal quarter ending March 31, 2027.
For the six months ended June 30, 2025, net cash provided by operating activities was $139.1M, down from $192.6M in the prior year, driven by lower net income and unfavorable working capital changes (accounts receivable increased $38.0M). Capital expenditures totaled $99.0M, resulting in free cash flow of $40.1M. This compares to capex of $121.8M and free cash flow of $70.8M in the prior year. Financing activities used $30.0M, including $71.9M of long-term debt repayments and $916.7M of revolving credit borrowings (largely matched by repayments). The company ended the period with $26.0M of cash and no significant near-term liquidity pressures.
Management attributed the revenue decline to lower customer activity levels in Q2 2025, following a decrease in oil and natural gas prices starting in April 2025. They expect results in Q3 2025 to decline further relative to Q2. Despite limited near-term visibility, customer engagement around 2026 planning is improving. For full-year 2025, capital expenditures are estimated at $125M-$145M for maintenance and $50M-$80M for growth initiatives, including fleet upgrades and next-generation technology. In June 2025, ProFrac entered into a purchase agreement to issue up to $60.0M of Senior Secured Floating Rate Notes due 2029; $20.0M was funded at closing. The company amended the Alpine term loan to improve liquidity and defer financial covenant testing. The company remains compliant with all debt covenants and expects to remain so for at least the next twelve months.
Segment performance: Stimulation Services Adjusted EBITDA halved to $51.1M, reflecting a 52% decline. Proppant Production revenue grew 11.5% on higher pricing, but segment Adjusted EBITDA fell to $14.8M from $25.7M due to higher costs from a shift to wellsite pricing. Manufacturing revenue was flat at $55.8M, with Adjusted EBITDA improving to $7.3M. Other segment (primarily Flotek) revenue increased 36.6% to $65.0M. Consolidated Adjusted EBITDA was $78.6M, down from $135.6M. The company recorded a $12.8M provision for credit losses from an insolvent customer, a $10.5M loss on disposal of EKU Power Drives, and $2.8M in litigation expenses. No goodwill impairment was recorded in Q2 2025 (versus $67.7M in Q2 2024). Stock-based compensation decreased to $2.0M from $2.9M. The effective tax rate was negative 4.1% for the six-month period, impacted by a discrete expense on asset sale. No forward guidance on revenue or earnings was provided beyond capex.