Nov 5, 2026, 6:03 AM ETEnergy

ProFrac Holding Corp. — Third Quarter 2026 Earnings Summary

ACDCPROFRAC HOLDING CORP

Financial Performance

Total revenue for the third quarter of 2026 was $511 million, an increase from $498 million in the second quarter of 2026 and $403 million in the third quarter of 2025.
Net loss was $74 million, compared to a net loss of $75 million in the second quarter of 2026 and $92 million in the third quarter of 2025.
Adjusted EBITDA was $65 million (13% of revenue), down from $69 million (14% of revenue) in the second quarter of 2026 and up from $41 million in the third quarter of 2025.
Net cash provided by operating activities was $51 million, compared to $23 million in the second quarter of 2026 and $5 million in the third quarter of 2025.
Capital expenditures totaled $40 million, up from $32 million in the second quarter of 2026.
Free cash flow was positive $14 million, compared to negative $8 million in the second quarter of 2026 and negative $29 million in the third quarter of 2025.
Total principal debt outstanding was approximately $1.05 billion as of September 30, 2026, with net debt of approximately $1.01 billion.
Total cash and cash equivalents were approximately $44 million as of September 30, 2026, including $25 million related to Flotek.
Liquidity was approximately $97 million as of September 30, 2026, consisting of $19 million in cash (excluding Flotek) and $79 million of availability under the asset-based credit facility.

ProFrac expects fourth quarter 2026 Stimulation Services results to improve sequentially due to continued price increases and steady activity, partially offset by customary year-end seasonality.
2027 contracting discussions are ongoing with a focus on pricing, duration, and the ability to pass through inflationary cost increases.
ProFrac expects fourth quarter 2026 Proppant Production results to improve relative to the third quarter, driven by recovering throughput in West Texas and pricing improvements in South Texas.
The Company expects less seasonality in the fourth quarter due to market tightness and limited equipment availability.
Full-year 2026 capital expenditures are updated to a range of $160 million to $180 million, including Flotek's plan; excluding Flotek, the range is $145 million to $165 million.
Management anticipates industry demand for services in 2027 will exceed deployable supply.

Stimulation Services: Generated $421 million in revenue, $37 million in Adjusted EBITDA, and a 9% margin.
Proppant Production: Generated $101 million in revenue, $2 million in Adjusted EBITDA, and a 2% margin; approximately 79% of revenue was intercompany.
Manufacturing: Generated $53 million in revenue, $6 million in Adjusted EBITDA, and an 11% margin; approximately 83% of revenue was intercompany.
Flotek Industries: Generated $117 million in revenue, $22 million in Adjusted EBITDA, and a 19% margin; approximately 51% of revenue was intercompany.
Other Business Activities: Generated $4 million in revenue and $1 million in Adjusted EBITDA, resulting in a 25% margin.

The hydraulic fracturing market backdrop continues to tighten with limited available capacity, particularly for natural gas capable equipment.
Pricing is gradually increasing with single-digit improvements observed in the third quarter.
Industry demand for services in 2027 appears to exceed deployable supply, exacerbated by capital discipline and declining investment due to depressed economics in previous years.
West Texas proppant production remains highly competitive, while South Texas pricing improvements are beginning to materialize.

The Company faces unanticipated white space and downtime leading to uneven activity in the third quarter.
Inflationary pressure has impacted full-cycle margins across the industry.
The Company must comply with leverage covenants effective for the quarter ending March 31, 2028, with no assurance it will be able to meet, modify, or defer them.
Contemplated dispositions of non-core assets are subject to negotiation, approvals, and closing conditions, with no assurance on timing, proceeds, or terms.
Forward-looking statements are subject to risks including fluctuations in supply, demand, and prices for oil and natural gas, global economic conditions, and the ability to execute strategic initiatives.

CEO Matt Wilks stated the market backdrop is tightening and expressed confidence in supply and demand fundamentals and pricing heading into 2027.
Management noted that industry demand for services in 2027 currently exceeds deployable supply and that capital discipline will exacerbate tightening supply-demand balances.
The Company is actively translating opportunities into shareholder returns through disciplined contracting, capital allocation, and balance sheet strengthening.
Management highlighted the leverage of its vertically integrated platform and in-house manufacturing to manage equipment costs and timing.

In July 2026, ProFrac replaced its $275 million asset-based revolving credit facility with a new $300 million facility, increasing commitments and extending maturity.
In September 2026, ProFrac amended its Alpine term loan agreement to extend maturity to February 2030, reduce scheduled amortization to zero through Q1 2028, and permit interest-in-kind payments for twelve months.
A related Alpine transaction involved the repayment and cancellation of $60 million of term loans held by affiliated lenders in exchange for Flotek common stock.
In September 2026, Flotek entered into a $75 million senior secured term loan maturing in 2031 to repay existing debt.
The Company is pursuing initiatives to enhance liquidity and reduce indebtedness, including the potential disposition of non-core assets.
The maximum availability under the ABL credit facility was limited to a borrowing base of approximately $245 million, with $148 million in borrowings and $18 million in letters of credit outstanding.