ProFrac Holding Corp.

What they do

ProFrac provides hydraulic fracturing services through its Stimulation Services segment and produces proppant through its Proppant Production segment. It also operates a Manufacturing segment that builds equipment and holds an interest in Flotek Industries, which reported as a separate segment in the second quarter 2026 earnings release. A large share of segment revenue is intercompany: about 87% in Proppant Production, 82% in Manufacturing, and 58% at Flotek.

Revenue drivers

• Stimulation Services — Hydraulic fracturing services; generated $430 million of second quarter 2026 revenue and $39 million of Adjusted EBITDA, a 9% margin.
• Proppant Production — Proppant supply; generated $121 million of second quarter 2026 revenue and $6 million of Adjusted EBITDA, a 5% margin, with approximately 87% of revenue intercompany.
• Manufacturing — Equipment manufacturing; generated $48 million of second quarter 2026 revenue and $6 million of Adjusted EBITDA, a 13% margin, with approximately 82% of revenue intercompany.
• Flotek Industries — Reported as a segment generating $102 million of second quarter 2026 revenue and $19 million of Adjusted EBITDA, a 19% margin, with approximately 58% of revenue intercompany.

Recent performance

Second quarter 2026 total revenue was $498 million, up from $450 million in the first quarter. The net loss was $75 million, narrower than the $81 million loss in the first quarter, and Adjusted EBITDA rose to $69 million (14% of revenue) from $54 million (12%). Net cash provided by operating activities was $23 million versus $9 million in the first quarter, while capital expenditures were $32 million versus $41 million, leaving free cash flow negative $8 million compared with negative $25 million. Full-year 2025 revenue was $1.94 billion with a net loss of $355.5 million, extending losses from $207.8 million in 2024.

Strategy

Management is emphasizing cost optimization, a fleet upgrade program, and differentiated technology investment. It points to a tighter market for high-specification frac equipment after years of industry attrition and to pricing increases layering in for the third quarter in hydraulic fracturing. The company says it is taking a disciplined approach to the back half of 2026 and into an RFP season that is starting earlier than typical, which it sees as evidence of potential equipment tightness into 2027. In proppant, it is focused on operational improvements while navigating competitive pricing pressure, particularly in West Texas, and cites potential in the Haynesville and South Texas.

Risks

• Customer capital spending — Demand depends on U.S. oil and gas capital expenditures, and the 10-K states a prolonged reduction in oil and gas prices would depress activity and demand for hydraulic fracturing services.
• Sustained losses — ProFrac reported net losses of $207.8 million in 2024 and $355.5 million in 2025, and a $75 million net loss in second quarter 2026.
• Liquidity and leverage — At June 30, 2026 the company held $18.8 million of cash against $918.2 million of long-term debt and $1.79 billion of total liabilities.
• Proppant pricing pressure — Management cites incremental competitive pricing pressure in the proppant market, particularly in West Texas, where the Proppant Production segment earned only a 5% Adjusted EBITDA margin in the second quarter.

Outlook

For the third quarter of 2026, ProFrac expects Stimulation Services results to improve on the second quarter, driven by pricing increases and steady utilization. Proppant Production is expected to be approximately flat on stable volumes. Management also says RFP season conversations are unfolding earlier than typical, indicating potential equipment tightness into 2027.