WILLOW PARK, Texas--(BUSINESS WIRE)--November 10, 2025--
ProFrac Holding Corp. (NASDAQ: ACDC) ("ProFrac", or the "Company") today announced financial and operational results for its third quarter ended September 30, 2025.
Third Quarter 2025 Results
-- Total revenue was $403 million compared to second quarter 2025 revenue
of $502 million
-- Net loss was $92 million compared to net loss of $107 million in second
quarter 2025
-- Adjusted EBITDA1 was $41 million compared to $79 million in second
quarter 2025; 10% of revenue in the third quarter compared to 16% of
revenue in second quarter 2025
-- Net cash provided by operating activities of $5 million compared to $97
million in second quarter 2025
-- Capital expenditures of $38 million compared to $43 million in second
quarter 2025
-- Free cash flow2 of $(29) million compared to $54 million in second
quarter 2025
"Our third quarter results reflected continued challenging market conditions, with improvement mid-period giving way to an unexpected decline in conditions toward quarter-end. Thus far in the fourth quarter, activity levels have improved from the end of the third quarter. We believe the U.S. onshore completions market is well-positioned for recovery when commodity prices strengthen, as production remains at or below maintenance levels, and as the pressure pumping market continues to tighten via natural equipment attrition," said Matt Wilks, ProFrac's Executive Chairman.
"We remain focused on financial and operational discipline by reemphasizing dedicated, consistent programs, right sizing our organization and optimizing our asset base. We believe these actions will collectively result in $85 to $115 million of annualized cash savings by the end of second quarter of 2026," concluded Mr. Wilks.
Outlook
In the Stimulation Services segment, the Company believes fourth quarter activity levels could continue to improve from third quarter levels on a flattish fleet count. Pricing in the fourth quarter is expected to be lower on average versus the third quarter. The Company expects results to improve sequentially.
In the Proppant Production segment, the Company expects fourth quarter profitability to improve compared to the third quarter. While pricing pressures persist, the Company anticipates enhanced operational efficiency and increased throughput and volumes to drive sequential improvement.
Business Optimization
The Company has recently taken meaningful steps to adjust its strategy with a focus on operational efficiency, through-cycle resilience and structural cost savings to align with current market conditions. The Company is prioritizing dedicated fleets paired with operators conducting more robust, less volatile programs. The Company has identified initial COGS, SG&A and capital expenditure savings of $85 to $115 million on a combined annualized basis, comprised of (i) approximately $35 million to $45 million of COGS and SG&A labor reductions that have been implemented, (ii) $30 million to $40 million across non-labor COGS and SG&A line items, and (iii) $20 million to $30 million of capital expenditures. The Company believes that this is the first step in its business optimization and that additional savings are possible.
Business Segment Information
The Stimulation Services segment generated revenues of $343 million in third quarter 2025, which resulted in $20 million of Adjusted EBITDA and a margin of 6%. This is compared with $432 million in revenues in second quarter 2025, which resulted in $51 million of Adjusted EBITDA and a margin of 12%.
The Proppant Production segment generated revenues of $76 million in third quarter 2025, which resulted in $8 million of Adjusted EBITDA and a margin of 10%. This is compared with revenues of $78 million in second quarter 2025, which resulted in $15 million of Adjusted EBITDA and a margin of 19%. Approximately 73% of the Proppant Production segment's revenue was intercompany during third quarter 2025.
The Manufacturing segment generated revenues of $48 million in third quarter 2025, which resulted in $4 million of Adjusted EBITDA and a margin of 7%. This is compared with revenues of $56 million in second quarter 2025, which resulted in $7 million of Adjusted EBITDA and a margin of 13%. Approximately 82% of the Manufacturing segment's revenue was intercompany during third quarter 2025.
Other Business Activities generated revenues of $61 million in third quarter 2025, which resulted in $12 million of Adjusted EBITDA and a margin of 20%. This is compared with revenues of $65 million in second quarter 2025, which resulted in $8 million of Adjusted EBITDA and a margin of 12%. ProFrac's Other Business Activities include the results of Flotek Industries and Livewire Power.
Capital Expenditures and Capital Allocation
Cash capital expenditures totaled $38 million in the third quarter, a decline from $43 million reported in second quarter 2025.
We now expect capital expenditures to be $160 to $190 million for 2025, representing a further reduction of approximately $25 million at the mid-point from our previous guidance of $175 to $225 million. This adjustment reflects our commitment to maintaining financial discipline during the current downturn while maintaining service quality and operational efficiency through our asset management platform.
Balance Sheet and Liquidity
Total debt outstanding as of September 30, 2025 was $1.07 billion while total principal amount of debt outstanding as of September 30, 2025 was $1.09 billion. Net debt(3) outstanding as of September 30, 2025 was $1.04 billion.
Total cash and cash equivalents as of September 30, 2025 was $58 million, of which $5 million was related to Flotek and not accessible by the Company.
As of September 30, 2025 the Company had $95 million of liquidity, including approximately $53 million in cash and cash equivalents, excluding Flotek, and $41 million of availability under its asset-based credit facility.
Footnotes
(1) Adjusted EBITDA is a financial measure not presented in accordance with
generally accepted accounting principles ("GAAP") (a "Non-GAAP
Financial Measure"). Please see "Non-GAAP Financial Measures" at the
end of this news release.
(2) Free Cash Flow is a Non-GAAP Financial Measure. Please see "Non-GAAP
Financial Measures" at the end of this news release.
(3) Net Debt is a Non-GAAP Financial Measure. Please see "Non-GAAP
Financial Measures" at the end of this news release.
Conference Call
ProFrac has scheduled a conference call on Monday, November 10, 2025, at 11:00 a.m. Eastern / 10:00 a.m. Central. To register for and access the event, please click here. An archive of the webcast will be available shortly after the call's conclusion on the IR Calendar section of ProFrac's investor relations website for 90 days.
About ProFrac Holding Corp.
ProFrac Holding Corp. is a technology-focused, vertically integrated and innovation-driven energy services holding company providing hydraulic fracturing, proppant production, related completion services and complementary products and services to leading upstream oil and natural gas companies engaged in the exploration and production ("E&P") of North American unconventional oil and natural gas resources. ProFrac operates through three business segments: Stimulation Services, Proppant Production and Manufacturing, in addition to Other Business Activities. For more information, please visit ProFrac's website at www.PFHoldingsCorp.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release may be considered "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be accompanied by words such as "may," "should," "expect," "intend," "will," "estimate," "anticipate," "believe, " "predict," or similar words. Forward-looking statements relate to future events or the Company's future financial or operating performance. These forward-looking statements include, among other things, statements regarding: the Company's strategies and plans for cash savings and sources of liquidity, including incremental debt or non-collateralized asset sales and issuance of the Senior Secured Notes; the Company's ability to manage the industry and commodity downturn; the Company's positioning, resources, capabilities, and expectations for future performance; customer, market and industry demand and expectations; the Company's expectations about price fluctuations, and macroeconomic conditions impacting the industry; competitive conditions in the industry; success of the Company's ongoing strategic initiatives; the Company's guidance regarding its financial and operational results; pricing of the Company's services in light of the prevailing market conditions; the impact of continued inflation, risk of a global recession and U.S. trade policy, including the imposition of tariffs and retaliatory measures; the Company's currently expected guidance regarding its planned capital expenditures; statements regarding the Company's future profitability, cash flows, liquidity and management of debt obligations; the Company's anticipated timing for operationalizing and amount of contribution from its fleets and its sand mines; the amount of capital that may be available to the Company in future periods; any financial or other information based upon or otherwise incorporating judgments or estimates relating to future performance, events or expectations; any estimates and forecasts of financial and other performance metrics; and the Company's outlook and financial and other guidance. Such forward-looking statements are based upon assumptions made by the Company as of the date hereof and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from
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