Group 1: Earnings Performance - ProFrac Holding Corp. reported a quarterly loss of $0.11 per share, significantly better than the Zacks Consensus Estimate of a loss of $0.32, representing an earnings surprise of 65.63% [1] - The company posted revenues of $600.3 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 22.84% and showing an increase from $581.5 million year-over-year [2] - Over the last four quarters, ProFrac has surpassed consensus EPS estimates two times and topped consensus revenue estimates twice [2] Group 2: Stock Performance and Outlook - ProFrac Holding Corp. shares have declined approximately 41.2% since the beginning of the year, compared to a decline of 4.7% for the S&P 500 [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at -$0.24 on revenues of $526.07 million, and -$0.91 on revenues of $2.08 billion for the current fiscal year [7] - The Zacks Rank for ProFrac is currently 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Group 3: Industry Context - The Alternative Energy - Other industry, to which ProFrac belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5]

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 (Mark One) OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q For the transition period from [ ] to [ ] Commission File Number: 001-41388 ProFrac Holding Corp. (Exact Name of Registrant as Specified in its Charter) | Delaware | | 87-2424964 | | --- | ...

Financial Data and Key Metrics Changes - In Q1 2025, ProFrac reported revenue of $600 million, a 32% increase from $455 million in Q4 2024, while adjusted EBITDA rose 83% to $130 million from $71 million in the previous quarter [5][29][30] - The adjusted EBITDA margin improved to 22% in Q1 from 16% in Q4 [30] Business Line Data and Key Metrics Changes - The Stimulation Services segment generated $525 million in revenue in Q1, up from $384 million in Q4, with adjusted EBITDA increasing to $105 million from $54 million [30] - The Proppant Production segment saw revenues rise to $67 million in Q1 from $47 million in Q4, driven by a 53% increase in sales volumes [31] - The Manufacturing segment's revenue increased by 6% sequentially to $66 million, with adjusted EBITDA improving to approximately $4 million [33] Market Data and Key Metrics Changes - The company experienced a significant improvement in active fleet count, with six fleets returning to service early in Q1, particularly in the Eagle Ford and Permian regions [21] - Demand for next-gen natural gas burning equipment remained resilient compared to diesel assets [21] Company Strategy and Development Direction - ProFrac is focused on leveraging its in-house R&D, manufacturing, and maintenance capabilities to enhance operational efficiency and customer service [5][19] - The company completed a strategic transaction with Flotek, enhancing its gas quality assurance and asset integrity solutions, which is expected to drive future growth [10][19] - ProFrac is optimistic about the potential in the Haynesville region, particularly for natural gas-directed activity [17][26] Management's Comments on Operating Environment and Future Outlook - Management noted that economic uncertainty from tariffs and OPEC's production increase has impacted commodity prices and spending outlook [14][15] - Operators are expected to reduce activity in Q2 relative to Q1, but some maintain flexibility to resume operations quickly when conditions improve [15][16] - The natural gas market is showing resilience, with potential for increased activity in the second half of 2025 [17][19] Other Important Information - The company identified potential CapEx reductions of $70 million to $100 million to align with evolving market conditions [28] - Total cash and cash equivalents as of March 31, 2025, were approximately $16 million, with total liquidity at about $76 million [34] Q&A Session Summary Question: Can you provide more specific guidance on the second quarter outlook? - Management acknowledged a pullback in Q2 but noted uncertainty on the degree, emphasizing customer-specific evaluations [39][41] Question: What is the capacity of your electric frac assets? - Most electric fleets are on long-term contracts and remain fully utilized, with seven electric frac fleets deployed [43][45] Question: Can you comment on the performance of specific fleets? - Record-breaking pump times were noted across the fleet, attributed to operational excellence and asset management [51][53] Question: How do you expect Q4 seasonality to impact performance? - Management expects a muted seasonal slowdown in Q4 compared to previous years, with strong gas market fundamentals [57][59] Question: What are the pricing dynamics in the Haynesville versus West Texas? - The Haynesville market is expected to provide significant opportunities, with a focus on balancing volumes and pricing [67][68]

Exhibit 99.1 News Release Contacts: ProFrac Holding Corp. Austin Harbour – Chief Financial Officer Michael Messina – Director of Finance investors@pfholdingscorp.com ICR, Inc. PFHoldingsIR@icrinc.com ProFrac Holding Corp. Reports First Quarter 2025 Results WILLOW PARK, TX – May 7, 2025 – ProFrac Holding Corp. (NASDAQ: ACDC) ("ProFrac", or the "Company") today announced financial and operational results for its first quarter ended March 31, 2025. First Quarter 2025 Results "Our first quarter 2025 results wer ...

ProFrac Holding Corp. (ACDC) shares soared 23% in the last trading session to close at $5.30. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 40.6% loss over the past four weeks.An analyst from Stifel has recently raised the target price for ProFrac Holding Corp.’s stocks. This might have led to ACDC’s latest share price hike.This company is expected to post quarterly loss of $0.31 per share in its upcoming report, which represen ...

Core Viewpoint - JP Morgan analyst Arun Jayaram maintains an Underweight rating on ProFrac Holding Corp. (ACDC) with a price target of $7, following disappointing fourth-quarter results that missed sales expectations and reported a significant net loss [1]. Financial Performance - ACDC reported fourth-quarter sales of $454.7 million, falling short of the consensus estimate of $479.3 million, and recorded a net loss of $105.0 million compared to a loss of $45.2 million in the same quarter last year [1]. - The results were impacted by misses in EBITDA and free cash flow (FCF) attributed to seasonality and a weaker macroeconomic environment [1]. Operational Insights - Management noted an increase in ACDC's active fleet count, reaching its highest level since mid-2024, with six additional fleets secured since the fourth-quarter low point [2]. - The company expects lower average pricing to slightly offset modestly higher activity in Stimulation Services year-over-year [2]. - Continued industry-wide equipment attrition is anticipated due to higher hours pumped per fleet and lower reinvestment levels [2]. Future Projections - The analyst estimates an average of 29.3 fleets in the first quarter of 2025, leading to Stimulation Services EBITDA of approximately $80 million [3]. - Profitability is expected to improve as utilization increases across business units throughout the year, albeit at a slower pace [3]. - Revised EBITDA forecasts for 2025 and 2026 are $472 million and $588 million, down from previous estimates of $543 million and $680 million, respectively [3]. Cash Flow and Capital Expenditure - Projected FCF generation for 2025 and 2026 is $78 million and $184 million, respectively, with capital expenditures estimated at $340 million and $447 million for the same periods [4]. - Investors can gain exposure to ACDC through the Invesco Oil & Gas Services ETF (PXJ) [4]. Stock Performance - ACDC shares are down 1.65%, trading at $7.15 as of the last check on Monday [4].

Operations and Capacity - ProFrac operates 28 active hydraulic fracturing fleets as of December 31, 2024, with 15 Tier IV fleets, 9 Tier II fleets, and 4 electric fleets[32]. - The company has approximately 21.5 million tons of annual nameplate capacity across eight frac sand mines, positioning it as one of the largest producers of in-basin frac sand in the U.S.[33]. - ProFrac's operations are strategically located in major unconventional oil and gas basins, enhancing its ability to serve a diversified customer base[32]. - ProFrac's scale and geographic diversification allow it to respond flexibly to market volatility and improve operational efficiencies[41]. Business Model and Strategy - ProFrac's business model emphasizes vertical integration and technological innovation, allowing for tailored products and services to meet customer needs[30]. - The company aims to be the most reliable, cost-effective supplier of in-basin frac sand, maximizing value through strong cash flow generation[40]. - The company focuses on integrating new technologies in a cost-effective manner through its in-house manufacturing capabilities[44]. - ProFrac's manufacturing segment enables cost-advantaged growth and maintenance by assembling new fleets and refurbishing existing ones[43]. Acquisitions and Investments - In April 2024, the company acquired Basin Production and Completion LLC for a total consideration of $39.8 million, consisting of $14.9 million in cash and a pre-existing investment of $24.9 million[51]. - In June 2024, the company acquired Advanced Stimulation Technologies, Inc. for $174.0 million in cash, enhancing its pressure pumping services in the Permian Basin[52]. - The company acquired NRG Manufacturing, Inc. and its affiliate for a total consideration of $6.0 million in cash in June 2024, further expanding its capabilities in the hydraulic fracturing industry[53]. - The company acquired Producers Service Holdings LLC for approximately $35.0 million, adding three fleets totaling 200,000 HHP and a manufacturing facility in Ohio[55]. - The acquisition of Performance Proppants in February 2023 totaled approximately $462.8 million, with $452.4 million paid in cash, enhancing the company's frac sand supply capabilities[56]. Financial Performance - Total revenues for 2024 were $2,190.9 million, a decrease of 16.7% from $2,630.0 million in 2023[417]. - Services revenue decreased to $1,886.7 million in 2024 from $2,274.2 million in 2023, representing a decline of 16.9%[417]. - Product sales revenue decreased significantly to $304.2 million in 2024 from $355.8 million in 2023, a drop of 14.5%[417]. - Operating loss for 2024 was $60.4 million, compared to an operating income of $166.6 million in 2023[417]. - Net loss attributable to ProFrac Holding Corp. for 2024 was $215.1 million, compared to a net loss of $97.7 million in 2023[418]. - Earnings per Class A common share (basic and diluted) for 2024 was $(1.38), compared to $(0.82) in 2023[418]. - Total assets decreased to $2,988.1 million as of December 31, 2024, down from $3,070.7 million in 2023[416]. - Total liabilities increased to $1,848.5 million in 2024 from $1,742.1 million in 2023[416]. Environmental and Regulatory Compliance - The company operates under stringent environmental and occupational health and safety regulations, which may impose costly compliance measures and potential penalties for non-compliance[79]. - The Resource Conservation and Recovery Act (RCRA) and state laws impose requirements on the handling, transportation, and disposal of hazardous and non-hazardous wastes, affecting operational costs[81]. - The Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) imposes strict liability for the cleanup of hazardous substances, which could lead to significant financial liabilities for the company[83]. - The Clean Water Act (CWA) and related regulations impose strict controls on the discharge of pollutants, potentially increasing operational costs and delays in obtaining necessary permits[87]. - The Clean Air Act (CAA) regulates air emissions, with new stringent requirements potentially increasing compliance costs for the company[88]. - Climate change regulations are evolving, with potential future legislation that could impose stricter GHG emissions standards, impacting operational costs and demand for services[89]. - The Endangered Species Act (ESA) may affect exploration and production activities, leading to additional costs or operational restrictions in certain areas[96]. - Hydraulic fracturing operations are significant for the company, but increased regulatory scrutiny could lead to higher costs and reduced activity on federal lands[100]. - The company is actively participating in conservation agreements to mitigate potential impacts from environmental regulations[96]. Safety and Workforce - As of December 31, 2024, the company employed 3,077 people, with a Total Reportable Incident Rate of 0.28 for safety performance[69]. - Compliance with OSHA standards for worker exposure to silica may result in material additional costs for the company and its customers[105]. Debt and Financial Management - The company completed a debt refinancing in December 2023, totaling $885 million, extending significant debt maturities to 2029[64]. - A 1% increase in interest rates on variable-rate debt would raise annual interest payments by approximately $10.7 million as of December 31, 2024[389]. - The company has no derivative instruments that materially increase exposure to market risks as of December 31, 2024[389]. Goodwill and Asset Management - The company holds $209.1 million in goodwill related to its Stimulation Services reporting unit, with no impairment identified following a quantitative assessment[400]. - Goodwill impairment of $74.5 million was recognized in 2024, indicating challenges in asset recoverability[418]. - Goodwill balance as of December 31, 2024, is $302.0 million, down from $325.9 million in 2023, reflecting an impairment of $74.5 million in the Proppant segment[466]. Cash Flow and Capital Expenditures - Cash provided by operating activities for 2024 was $367.3 million, down from $553.5 million in 2023 and $415.2 million in 2022[433]. - Cash used in investing activities was $372.3 million in 2024, compared to $715.8 million in 2023 and $1,028.6 million in 2022[433]. - The company incurred capital expenditures of $32.4 million included in accounts payable for 2024[435]. - Cash payments for interest in 2024 were $137.8 million, slightly down from $139.1 million in 2023[435]. - The company reported a net cash used in financing activities of $5.5 million in 2024, compared to a net cash provided of $149.7 million in 2023[433].

Financial Data and Key Metrics Changes - In Q4 2024, ProFrac reported revenue of $455 million and adjusted EBITDA of $71 million, down from $575 million and $135 million in Q3 2024 respectively [17][42] - For the full year 2024, revenue was $2.19 billion with adjusted EBITDA of $501 million, reflecting a margin of 23% [17][43] - Free cash flow for Q4 was $54 million, an increase from $31 million in Q3, totaling $185 million for the year [20][44] Business Line Data and Key Metrics Changes - Stimulation services revenue decreased to $384 million in Q4 from $507 million in Q3, with adjusted EBITDA dropping to $54 million from $113 million [44][45] - Proppant Production segment generated $47 million in revenue for Q4, down from $53 million in Q3, with adjusted EBITDA of $14 million [46][48] - Manufacturing segment revenues remained flat at $62 million in Q4, with adjusted EBITDA increasing to $3 million from near break-even in Q3 [51][52] Market Data and Key Metrics Changes - The North American completions industry faced challenges in Q4 due to budget constraints, holiday shutdowns, and adverse weather conditions [17][21] - There is potential for increased activity in the Haynesville region, driven by improved gas prices and proximity to LNG export terminals [19] - The company has the largest proppant footprint in the Haynesville with a capacity of 10 million tons per annum across four mines [19] Company Strategy and Development Direction - ProFrac continues to execute a differentiated commercial strategy by partnering with operators who prioritize integrated, efficient solutions [10][22] - The launch of Livewire Power marks a significant step in the company's power generation strategy, focusing on the demand for power in remote locations [15][23] - The company is committed to innovation, investing in next-generation pumps and software platforms to maintain industry leadership [16][23] Management's Comments on Operating Environment and Future Outlook - Management noted a recovery in activity levels in the Stimulation business since the end of 2024, with expectations for continued efficiency improvements [12][26] - The company anticipates marginal growth in the frac market throughout 2025, despite lower average pricing [32][28] - Management emphasized the importance of long-term customer relationships over short-term pricing gains [68][90] Other Important Information - The company generated $54 million of free cash flow in Q4 and $185 million for the full year, indicating strong cash generation capabilities [20][44] - Total cash and cash equivalents as of December 31, 2024, were approximately $15 million, with total liquidity at about $81 million [56][57] - The company repaid approximately $157 million of long-term debt in 2024 and plans to continue using free cash flow for deleveraging [57] Q&A Session Summary Question: Activity improvement in Stimulation and Proppant - Management noted that the year started well with operators returning to work and increasing fleet activity, leading to a positive outlook for 2025 [66][67] Question: Livewire business ramp-up and CapEx guidance - Management indicated that internal demand is the priority for Livewire, with capital investments focused on projects that meet economic return thresholds [69][72] Question: Frac supply-demand dynamics and asset attrition - Management highlighted that high utilization rates are leading to accelerated attrition of older assets, creating opportunities for price improvements [85][86] Question: Current pricing levels compared to 12 months ago - Management refrained from providing specific pricing details but emphasized a focus on long-term customer relationships rather than short-term pricing strategies [90][91] Question: Active frac fleet count and outlook - Management confirmed that the active fleet count is in the low-30s and will remain stable unless market demand justifies an increase [108][109] Question: Proppant business market share and optimization - Management confirmed that while one asset in the Haynesville is idle, the remaining operational assets are performing well, with a focus on long-term commitments rather than immediate price increases [114][115]

Financial Performance - Total revenue for 2024 was $2.19 billion, a decrease of 16.7% from $2.63 billion in 2023[4] - Net loss for 2024 was $208 million, compared to a net loss of $59 million in 2023[4] - Adjusted EBITDA for 2024 was $501 million, representing 23% of revenue, down from 26% in 2023[4] - Operating income for the twelve months ended December 31, 2024, was a loss of $60.4 million, compared to an operating income of $166.6 million for the same period in 2023[33] - Net loss attributable to ProFrac Holding Corp. for the three months ended December 31, 2024, was $105.0 million, compared to a net loss of $97.9 million for the same period in 2023[33] - Total revenues for the three months ended December 31, 2024, were $454.7 million, a decrease of 21% from $575.3 million in the previous quarter[36] - Adjusted EBITDA for the three months ended December 31, 2024, was $70.8 million, down from $134.8 million in the previous quarter, reflecting a decline of 47.5%[35] Cash Flow and Investments - Free cash flow for 2024 was $185 million, with net cash provided by operating activities at $367 million[4] - Cash flows from operating activities generated $76.5 million for the three months ended December 31, 2024, compared to $98.0 million in the previous quarter[34] - For the three months ended December 31, 2024, net cash provided by operating activities was $76.5 million, compared to $42.7 million for the same period in 2023, reflecting a 79% increase[38] - Free cash flow for the three months ended December 31, 2024, was $54.3 million, up from $12.8 million in the same period of 2023, representing a 324% increase[38] - The net cash provided by operating activities for the twelve months ended December 31, 2024, was $367.3 million, down from $553.5 million in 2023, reflecting a decline of 33.6%[38] - For the twelve months ended December 31, 2024, free cash flow was $185.2 million, compared to $292.7 million in 2023, showing a decrease of 36.7%[38] - Investment in property, plant & equipment for the twelve months ended December 31, 2024, was $255.0 million, a decrease from $267.0 million in 2023, indicating a 4.5% reduction[38] - The investment in property, plant & equipment for the three months ended December 31, 2024, was $63.2 million, down from $33.1 million in the same period of 2023, representing a 90% increase[38] Assets and Liabilities - Total current assets decreased to $574.1 million as of December 31, 2024, from $638.1 million as of December 31, 2023, representing a decline of approximately 10%[32] - Total liabilities increased to $1,848.5 million as of December 31, 2024, compared to $1,742.1 million as of December 31, 2023, reflecting an increase of about 6%[32] - Cash and cash equivalents decreased to $14.8 million as of December 31, 2024, down from $25.3 million as of December 31, 2023, a decline of approximately 41%[32] - Long-term debt remained relatively stable at $931.1 million as of December 31, 2024, compared to $923.5 million as of December 31, 2023[32] - The company’s total debt increased to $1,109.0 million as of December 31, 2024, up from $1,068.5 million in the previous year[37] - The current portion of long-term debt increased to $164.6 million as of December 31, 2024, compared to $126.4 million in the previous year[37] Segment Performance - The Stimulation Services segment generated revenues of $1.91 billion in 2024, with an Adjusted EBITDA margin of 21%[10] - The Proppant Production segment's revenues for 2024 were $247 million, with a margin of 35%[11] - Stimulation services revenue for the three months ended December 31, 2024, was $384.4 million, a decrease of 24.2% from $507.1 million in the previous quarter[36] Goodwill and Equity - The company experienced a goodwill impairment of $74.5 million for the twelve months ended December 31, 2024[33] - Total stockholders' equity attributable to ProFrac Holding Corp. decreased to $1,006.9 million as of December 31, 2024, from $1,211.2 million as of December 31, 2023, a decline of approximately 17%[32] - The company reported acquisition and integration costs of $2.7 million for the three months ended December 31, 2024, compared to $1.7 million for the same period in 2023[33] New Initiatives - The company launched Livewire Power in Q4 2024 to address the demand for flexible power generation solutions[7]

Core Viewpoint - ProFrac Holding (NASDAQ: ACDC) is identified as an undervalued vertically integrated energy services company with resilient free cash flow, leading to a stock price increase of over 24% since the last analysis [1]. Company Analysis - ProFrac Holding has demonstrated strong performance in the energy services sector, showcasing its ability to generate free cash flow despite market fluctuations [1]. - The company is positioned as a value investment opportunity, appealing to investors looking for low-risk and high uncertainty bets [1]. Investment Philosophy - The analysis reflects a focus on emerging markets and a willingness to seek out undervalued companies, influenced by notable investors and economic thinkers [1]. - The investment approach emphasizes an owner-mindset, prioritizing company fundamentals over macroeconomic noise [1].