Core Insights - ProFrac Holding Corp. and Seismos have announced a strategic partnership to launch Closed Loop Fracturing across all major U.S. basins, marking a significant advancement in hydraulic fracturing technology [1][2] - The partnership introduces a real-time quality control system that enables fully automated Closed Loop Fracturing, optimizing completions and enhancing performance measurement [2][6] - ProFrac's integration of Seismos' subsurface intelligence with its ProPilot surface automation aims to improve hydrocarbon recovery and provide operators with more control through dynamic completion design [3][5] Company Overview - ProFrac Holding Corp. is a technology-focused energy services holding company that provides hydraulic fracturing, proppant production, and related services to upstream oil and natural gas companies in North America [7] - Seismos is a leader in AI-powered Acoustic Sensing, specializing in real-time frac optimization and providing unbiased, real-time quality control across operations [9][10] Deployment Models - The partnership offers two deployment models: - **Supervised Mode** allows engineers to optimize stage design and strategy in real-time using validated subsurface data [3] - **Unsupervised Mode** automates decision-making based on real-time responses, enhancing operational speed and consistency without human intervention [4] Commitment to Innovation - Both companies emphasize a commitment to transparency, optimization, and accountability in performance, with ProFrac's approach designed to scale across all fleets [5][8] - Seismos' technology is described as years ahead of competitors, highlighting its patented and fully-vetted capabilities in closed-loop frac operations [6]

Group 1: CoreWeave Inc Financial Results - CoreWeave reported a revenue of $1.21 billion for the second quarter, exceeding analysts' expectations of $1.08 billion [1] - The company's adjusted loss per share was 27 cents, which was worse than the anticipated loss of 17 cents per share [1] Group 2: Stock Movements - CoreWeave shares fell 8.8% to $135.72 in pre-market trading following the mixed quarterly results [2] - Profrac Holding Corp shares tumbled 29.4% to $4.46 after pricing a $75 million stock offering at $4 per share [4] - CAVA Group Inc shares dipped 24% to $64.26 after reporting worse-than-expected quarterly sales results [4] - Journey Medical Corp shares declined 20.5% to $6.79 after reporting disappointing second-quarter EPS results [4] - Ondas Holdings Inc shares fell 17.5% to $3.54 after announcing a proposed public offering [4] - KinderCare Learning Companies Inc shares dropped 16.4% to $8.20 after missing second-quarter earnings estimates and narrowing 2025 guidance [4] - Endeavour Silver Corp shares fell 13.9% to $4.95 after posting a loss for the second quarter [4] - Stratasys Ltd shares dipped 13.4% to $9.80 following second-quarter results [4] - Denison Mines Corp shares declined 8.8% to $1.97 as the company announced the pricing of upsized $300 million convertible senior notes offering [4] - Hanesbrands Inc shares fell 7.7% to $5.70 after a previous jump of 28% due to acquisition news [4] - Penguin Solutions Inc shares fell 5.8% to $22.84 in pre-market trading [4]

Core Insights - ProFrac Holding Corp. reported a revenue of $501.9 million for the quarter ended June 2025, reflecting a 13.4% decrease year-over-year, with an EPS of -$0.67 compared to $0.02 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $499.29 million by 0.52%, while the EPS fell short of the consensus estimate of -$0.29 by 131.03% [1] Revenue Breakdown - Stimulation services revenue was $432 million, slightly below the estimated $435.78 million [4] - Manufacturing revenue reached $55.8 million, compared to the average estimate of $60.55 million [4] - Other revenues amounted to $65 million, surpassing the average estimate of $52.44 million [4] - Eliminations revenue was reported at -$128.4 million, worse than the estimated -$109.03 million [4] - Proppant production revenue was $77.5 million, exceeding the estimate of $59.52 million [4] Adjusted EBITDA Analysis - Adjusted EBITDA for stimulation services was $51.1 million, below the estimate of $72.66 million [4] - Adjusted EBITDA for proppant production was $14.8 million, compared to the average estimate of $16.82 million [4] - Adjusted EBITDA for eliminations was -$3 million, slightly better than the estimate of -$4.1 million [4] - Adjusted EBITDA for other segments was $8.4 million, above the estimate of $6.61 million [4] - Adjusted EBITDA for manufacturing was $7.3 million, significantly higher than the estimate of $2.62 million [4] Stock Performance - ProFrac Holding Corp.'s shares have declined by 16.6% over the past month, contrasting with a 1.2% increase in the Zacks S&P 500 composite [3] - The company currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

What's Next for ProFrac Holding Corp.? While ProFrac Holding Corp. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a str ...

[Cautionary Note Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section highlights that the report contains forward-looking statements, which are not historical facts and involve risks and uncertainties, with the company disclaiming any obligation to update these statements unless legally required - The report contains forward-looking statements, which are not historical facts and involve risks and uncertainties; the company disclaims any obligation to update these statements unless legally required[7](index=7&type=chunk)[9](index=9&type=chunk)[12](index=12&type=chunk) - Key areas of forward-looking statements include business strategy, future growth, industry conditions, profitability, cash flows, capital expenditures, market for products/services, competition, government regulations, and general economic conditions[10](index=10&type=chunk) - Risks and uncertainties include the ability to integrate acquisitions, economic growth uncertainty, commodity price fluctuations, geopolitical conditions, inflation, competitive conditions, and regulatory changes[11](index=11&type=chunk)[13](index=13&type=chunk) [PART I - Financial Information](index=5&type=section&id=PART%20I) [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for ProFrac Holding Corp., including the balance sheets, statements of operations, comprehensive income, changes in equity, and cash flows, along with detailed notes explaining the company's organization, accounting policies, and specific financial line items [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) - Cash and cash equivalents increased from **$14.8 million** at December 31, 2024, to **$26.0 million** at June 30, 2025[16](index=16&type=chunk) - Inventories decreased from **$201.1 million** to **$180.9 million**, while accounts receivable increased from **$312.7 million** to **$333.8 million**[16](index=16&type=chunk) Condensed Consolidated Balance Sheets (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | Change (millions) | % Change | | :----------------------------------- | :----------------------- | :-------------------------- | :---------------- | :------- | | **ASSETS** | | | | | | Total current assets | $580.3 | $574.1 | $6.2 | 1.1% | | Property, plant, and equipment (net) | $1,636.0 | $1,761.2 | $(125.2) | -7.1% | | Total assets | $2,830.7 | $2,988.1 | $(157.4) | -5.3% | | **LIABILITIES & EQUITY** | | | | | | Total current liabilities | $640.1 | $660.0 | $(19.9) | -3.0% | | Total liabilities | $1,812.4 | $1,848.5 | $(36.1) | -2.0% | | Total stockholders' equity | $952.2 | $1,076.1 | $(123.9) | -11.5% | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) - Goodwill impairment of **$67.7 million** was recorded in the six months ended June 30, 2024, with no impairment in 2025[18](index=18&type=chunk) Condensed Consolidated Statements of Operations (Three Months Ended June 30) | Metric | 2025 (millions) | 2024 (millions) | Change (millions) | % Change | | :----------------------------------- | :-------------- | :-------------- | :---------------- | :------- | | Total revenues | $501.9 | $579.4 | $(77.5) | -13.4% | | Total operating costs and expenses | $556.2 | $628.6 | $(72.4) | -11.5% | | Operating loss | $(54.3) | $(49.2) | $(5.1) | 10.4% | | Loss before income taxes | $(99.1) | $(89.3) | $(9.8) | 11.0% | | Net loss | $(103.5) | $(65.6) | $(37.9) | 57.8% | | Net loss attributable to ProFrac Holding Corp. | $(105.9) | $(66.7) | $(39.2) | 58.8% | | Loss per Class A common share (basic and diluted) | $(0.67) | $(0.42) | $(0.25) | 59.5% | Condensed Consolidated Statements of Operations (Six Months Ended June 30) | Metric | 2025 (millions) | 2024 (millions) | Change (millions) | % Change | | :----------------------------------- | :-------------- | :-------------- | :---------------- | :------- | | Total revenues | $1,102.2 | $1,160.9 | $(58.7) | -5.1% | | Total operating costs and expenses | $1,140.5 | $1,170.2 | $(29.7) | -2.5% | | Operating loss | $(38.3) | $(9.3) | $(29.0) | 311.8% | | Loss before income taxes | $(114.2) | $(86.0) | $(28.2) | 32.8% | | Net loss | $(118.9) | $(62.6) | $(56.3) | 89.9% | | Net loss attributable to ProFrac Holding Corp. | $(123.4) | $(64.9) | $(58.5) | 90.1% | | Loss per Class A common share (basic and diluted) | $(0.79) | $(0.42) | $(0.37) | 88.1% | [Condensed Consolidated Statements of Comprehensive Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Condensed Consolidated Statements of Comprehensive Income (Three Months Ended June 30) | Metric | 2025 (millions) | 2024 (millions) | Change (millions) | % Change | | :----------------------------------- | :-------------- | :-------------- | :---------------- | :------- | | Net loss | $(103.5) | $(65.6) | $(37.9) | 57.8% | | Foreign currency translation adjustments | $0.0 | $0.4 | $(0.4) | -100.0% | | Comprehensive loss | $(103.5) | $(65.2) | $(38.3) | 58.7% | | Comprehensive loss attributable to ProFrac Holding Corp. | $(105.9) | $(66.8) | $(39.1) | 58.5% | Condensed Consolidated Statements of Comprehensive Income (Six Months Ended June 30) | Metric | 2025 (millions) | 2024 (millions) | Change (millions) | % Change | | :----------------------------------- | :-------------- | :-------------- | :---------------- | :------- | | Net loss | $(118.9) | $(62.6) | $(56.3) | 89.9% | | Foreign currency translation adjustments | $0.1 | $0.4 | $(0.3) | -75.0% | | Comprehensive loss | $(118.8) | $(62.2) | $(56.6) | 91.0% | | Comprehensive loss attributable to ProFrac Holding Corp. | $(123.3) | $(65.0) | $(58.3) | 89.7% | [Condensed Consolidated Statements of Changes in Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) - Total stockholders' equity decreased from **$1,076.1 million** at December 31, 2024, to **$952.2 million** at June 30, 2025, primarily due to net loss and adjustments related to convertible preferred stock[24](index=24&type=chunk) Changes in Stockholders' Equity (December 31, 2024 to June 30, 2025) | Metric | Balance, Dec 31, 2024 (millions) | Net Income (Loss) (millions) | Stock-based Compensation (millions) | Other Changes (millions) | Balance, Jun 30, 2025 (millions) | | :----------------------------------- | :----------------------------- | :--------------------------- | :---------------------------------- | :----------------------- | :----------------------------- | | Class A Common Stock (Amount) | $1.5 | $0.0 | $0.0 | $0.0 | $1.5 | | Additional Paid-in Capital | $1,241.2 | $0.0 | $1.4 | $(6.7) | $1,235.9 | | Accumulated Deficit | $(235.9) | $(123.4) | $0.0 | $(2.6) | $(361.9) | | Accumulated Other Comprehensive Income | $0.1 | $0.0 | $0.0 | $(0.2) | $0.0 | | Noncontrolling Interests | $69.2 | $4.5 | $0.5 | $2.5 | $76.7 | | Total Stockholders' Equity | $1,076.1 | $(118.9) | $1.9 | $(6.9) | $952.2 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) - The decrease in cash from operating activities was primarily due to lower earnings in 2025[135](index=135&type=chunk) - The significant decrease in cash used in investing activities was mainly due to decreased capital expenditures and fewer acquisitions in 2025 compared to 2024[136](index=136&type=chunk) - Cash used in financing activities in 2025 contrasts with cash provided in 2024, primarily due to increased borrowings to fund acquisitions in 2024[137](index=137&type=chunk) Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30) | Metric | 2025 (millions) | 2024 (millions) | Change (millions) | % Change | | :----------------------------------- | :-------------- | :-------------- | :---------------- | :------- | | Net cash provided by operating activities | $139.1 | $192.6 | $(53.5) | -27.8% | | Net cash used in investing activities | $(97.9) | $(284.8) | $186.9 | -65.6% | | Net cash provided by (used in) financing activities | $(30.0) | $90.9 | $(120.9) | -133.0% | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $11.2 | $(1.3) | $12.5 | -961.5% | | Cash, cash equivalents, and restricted cash end of period | $26.0 | $24.0 | $2.0 | 8.3% | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [1. Organization and Description of Business](index=12&type=section&id=1.%20Organization%20and%20Description%20of%20Business) - ProFrac Holding Corp. is a vertically integrated energy services holding company providing hydraulic fracturing, proppant production, and manufacturing services to North American oil and natural gas E&P companies[32](index=32&type=chunk) - The company operates in three segments: Stimulation Services, Proppant Production, and Manufacturing[33](index=33&type=chunk) - The business is concentrated in the U.S. oilfield services industry, which is cyclical and highly dependent on oil and natural gas prices[38](index=38&type=chunk) - The company adopted FASB ASU 2023-07, Segment Reporting, retrospectively for fiscal year 2024, enhancing segment expense disclosures[39](index=39&type=chunk) [2. Supplemental Balance Sheet Information](index=13&type=section&id=2.%20Supplemental%20Balance%20Sheet%20Information) Inventories (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 (millions) | December 31, 2024 (millions) | | :---------------------- | :----------------------- | :-------------------------- | | Raw materials and supplies | $7.2 | $16.2 | | Work in process | $18.0 | $19.7 | | Finished products and parts | $155.7 | $165.2 | | Total | $180.9 | $201.1 | Accrued Expenses (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 (millions) | December 31, 2024 (millions) | | :-------------------------- | :----------------------- | :-------------------------- | | Employee compensation and benefits | $30.4 | $22.9 | | Sales, use, and property taxes | $15.5 | $21.0 | | Insurance | $15.7 | $13.2 | | Interest | $7.4 | $6.1 | | Income taxes | $4.8 | $1.9 | | Other | $3.2 | $2.1 | | Total accrued expenses | $77.0 | $67.2 | Other Current Liabilities (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 (millions) | December 31, 2024 (millions) | | :-------------------------- | :----------------------- | :-------------------------- | | Acquired unfavorable contracts | $0.0 | $7.6 | | Accrued supply commitment charges | $12.6 | $12.6 | | Munger make-whole liability | $0.0 | $8.6 | | Accrued legal contingencies | $5.5 | $7.1 | | Deferred revenue | $1.4 | $7.4 | | Tax receivable agreement obligation | $3.4 | $3.3 | | Other | $10.1 | $10.0 | | Total other current liabilities | $33.0 | $56.6 | [3. Business Combinations and Dispositions](index=14&type=section&id=3.%20Business%20Combinations%20and%20Dispositions) - In June 2025, the company disposed of its EKU Power Drives subsidiary in the Manufacturing Segment, recording a **$10.5 million** loss[45](index=45&type=chunk) - In 2024, the company completed several acquisitions: BPC (hydraulic fracturing equipment) for **$39.8 million** in April, AST (pressure pumping services) for **$174.0 million** in June, and NRG (hydraulic fracturing equipment and software) for **$6.0 million** in June[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk) Pro Forma Revenues and Net Loss (as if 2024 acquisitions occurred Jan 1, 2023) | Metric | Three Months Ended June 30, 2024 (millions) | Six Months Ended June 30, 2024 (millions) | | :------- | :---------------------------------------- | :--------------------------------------- | | Revenues | $643.1 | $1,324.9 | | Net loss | $(69.4) | $(64.6) | [4. Debt](index=16&type=section&id=4.%20Debt) - On June 30, 2025, ProFrac Holdings II, LLC issued **$20.0 million** of Senior Secured Floating Rate Notes due 2029 to Wilks Brothers, LLC, with commitments for an additional **$40.0 million** in the second half of 2025[52](index=52&type=chunk) - The Alpine 2023 Term Loan was amended on June 26, 2025, reducing amortization payments and deferring the Total Net Leverage Ratio covenant testing to March 31, 2027[54](index=54&type=chunk) - As of June 30, 2025, the company was in compliance with covenants for the 2029 Senior Notes and ABL Credit Facility, with **$87.3 million** remaining availability under the ABL[55](index=55&type=chunk)[56](index=56&type=chunk) Consolidated Debt (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | | :----------------------------------- | :----------------------- | :-------------------------- | | Total principal amount | $1,110.0 | $1,138.9 | | Less: unamortized debt discounts, premiums, and issuance costs | $(25.8) | $(29.9) | | Less: current portion of long-term debt | $(136.0) | $(164.6) | | Total long-term debt, net | $948.2 | $944.4 | [5. Revenue from Contracts with Customers](index=18&type=section&id=5.%20Revenue%20from%20Contracts%20with%20Customers) - The company recognized amortization of acquired unfavorable contracts as revenue: **$1.9 million** (Q2 2025) and **$7.6 million** (YTD Q2 2025), down from **$10.9 million** and **$27.4 million** in the respective 2024 periods; as of June 30, 2025, off-market contract liabilities were zero[62](index=62&type=chunk) - As of June 30, 2025, the aggregate transaction price allocated to unsatisfied performance obligations for Proppant Production contracts was **$24.3 million**, expected to be recognized as revenue through 2027[63](index=63&type=chunk) [6. Other Operating Expense, Net](index=18&type=section&id=6.%20Other%20Operating%20Expense,%20Net) - The significant increase in other operating expense, net, for Q2 and YTD 2025 was driven by a **$12.8 million** provision for credit losses related to an insolvent customer and increased transaction costs for strategic initiatives[68](index=68&type=chunk)[123](index=123&type=chunk) - Litigation expenses decreased in 2025 compared to 2024, while losses on disposal of assets increased[65](index=65&type=chunk) Other Operating Expense, Net (Three and Six Months Ended June 30) | Category | Q2 2025 (millions) | Q2 2024 (millions) | YTD Q2 2025 (millions) | YTD Q2 2024 (millions) | | :----------------------------------- | :----------------- | :----------------- | :------------------- | :------------------- | | Litigation expenses and accruals | $2.8 | $9.2 | $4.4 | $14.0 | | Provision for credit losses | $12.8 | $0.0 | $12.8 | $0.0 | | Gain on insurance recoveries | $0.0 | $(3.2) | $0.0 | $(3.2) | | Transaction costs | $3.3 | $0.0 | $3.5 | $0.0 | | Lease termination | $0.8 | $0.0 | $0.8 | $0.0 | | Severance charges | $0.4 | $1.1 | $0.4 | $1.8 | | (Gain) loss on disposal of assets | $5.2 | $0.3 | $8.6 | $(1.1) | | Supply commitment charge | $0.0 | $0.0 | $0.0 | $0.2 | | Total | $25.3 | $7.4 | $30.5 | $11.7 | [7. Income Taxes](index=20&type=section&id=7.%20Income%20Taxes) - The effective tax rate for the six months ended June 30, 2025, was **negative 4.1%**, compared with **27.2%** in the same period in 2024[70](index=70&type=chunk) - The 2025 tax provision included a **$4 million** discrete expense from a book-tax difference on the sale of gas conditioning equipment to Flotek[71](index=71&type=chunk) - The 2024 tax provision included a **$27.4 million** discrete benefit from the release of a valuation allowance on deferred tax assets due to the AST acquisition[72](index=72&type=chunk) - The recently enacted One Big Beautiful Bill Act (OBBBA) will be evaluated for impact in Q3 2025, but effects are expected to be immaterial due to the valuation allowance on net deferred tax assets[73](index=73&type=chunk) [8. Earnings Per Share](index=21&type=section&id=8.%20Earnings%20Per%20Share) - Loss per Class A common share increased significantly in both the three and six months ended June 30, 2025, compared to the same periods in 2024, reflecting higher net losses[74](index=74&type=chunk) Loss per Class A Common Share (Basic and Diluted) | Period | Q2 2025 | Q2 2024 | YTD Q2 2025 | YTD Q2 2024 | | :----------------------------------- | :------ | :------ | :---------- | :---------- | | Net loss attributable to ProFrac Holding Corp. (millions) | $(105.9) | $(66.7) | $(123.4) | $(64.9) | | Adjust Series A preferred stock to redemption value (millions) | $(1.3) | $(1.2) | $(2.6) | $(2.4) | | Net loss used for EPS (millions) | $(107.2) | $(67.9) | $(126.0) | $(67.3) | | Weighted average Class A common shares (millions) | 160.2 | 160.0 | 160.2 | 159.7 | | Basic and diluted EPS | $(0.67) | $(0.42) | $(0.79) | $(0.42) | [9. Commitments and Contingencies](index=21&type=section&id=9.%20Commitments%20and%20Contingencies) - As of June 30, 2025, the company had purchase commitments of **$30.9 million** for hydraulic fracturing equipment components in 2025[75](index=75&type=chunk) - The company is involved in various legal actions and administrative proceedings in the ordinary course of business, but management believes the ultimate liability will not materially adversely affect its financial position or liquidity[76](index=76&type=chunk)[77](index=77&type=chunk) [10. Variable Interest Entity](index=21&type=section&id=10.%20Variable%20Interest%20Entity) - ProFrac Holding Corp. consolidates Flotek Industries, Inc. as a Variable Interest Entity (VIE) because it has the power to appoint a majority of Flotek's board of directors through a contractual relationship, despite owning **50.4%** of its common stock[79](index=79&type=chunk) - As of June 30, 2025, Flotek's consolidated assets were **$78.2 million** and liabilities were **$52.9 million**, with Flotek's assets only usable to settle its own obligations[80](index=80&type=chunk) [11. Fair Value Measurements](index=22&type=section&id=11.%20Fair%20Value%20Measurements) - The Munger make-whole provision liability, measured at Level 3 fair value, was **$8.6 million** at December 31, 2024, and zero at June 30, 2025, due to settlement[81](index=81&type=chunk)[82](index=82&type=chunk) - The carrying amounts of most financial instruments (cash, receivables, payables) approximate fair value due to their short-term nature or variable interest rates for debt[83](index=83&type=chunk)[84](index=84&type=chunk) [12. Business Segments](index=23&type=section&id=12.%20Business%20Segments) - The company operates in three reportable segments: Stimulation Services, Proppant Production, and Manufacturing, with an 'Other' category primarily including Flotek and Livewire Power, LLC[85](index=85&type=chunk) - Segment performance is assessed based on Adjusted EBITDA, which excludes interest, taxes, DDA, stock-based compensation, and other specific charges[86](index=86&type=chunk) - Stimulation Services revenue decreased due to fewer active fleets and lower pricing, while Proppant Production saw increased Q2 revenue due to higher pricing from a shift to wellsite pricing[110](index=110&type=chunk)[111](index=111&type=chunk) - Manufacturing revenue increased year-to-date due to higher intercompany demand and acquisitions (BPC, NRG); Other segment revenue increased due to Flotek, including contract shortfall revenue[113](index=113&type=chunk)[114](index=114&type=chunk) Adjusted EBITDA by Segment (Three Months Ended June 30) | Segment | Q2 2025 (millions) | Q2 2024 (millions) | Change (millions) | % Change | | :-------------------- | :----------------- | :----------------- | :---------------- | :------- | | Stimulation Services | $51.1 | $107.3 | $(56.2) | -52.4% | | Proppant Production | $14.8 | $25.7 | $(10.9) | -42.4% | | Manufacturing | $7.3 | $0.1 | $7.2 | 7200.0% | | Other | $8.4 | $4.4 | $4.0 | 90.9% | | Eliminations | $(3.0) | $(1.9) | $(1.1) | 57.9% | | Total Adjusted EBITDA | $78.6 | $135.6 | $(57.0) | -42.0% | Adjusted EBITDA by Segment (Six Months Ended June 30) | Segment | YTD Q2 2025 (millions) | YTD Q2 2024 (millions) | Change (millions) | % Change | | :-------------------- | :--------------------- | :--------------------- | :---------------- | :------- | | Stimulation Services | $155.7 | $232.5 | $(76.8) | -33.0% | | Proppant Production | $33.1 | $54.1 | $(21.0) | -38.8% | | Manufacturing | $11.3 | $4.5 | $6.8 | 151.1% | | Other | $16.1 | $8.0 | $8.1 | 101.3% | | Eliminations | $(8.1) | $(3.6) | $(4.5) | 125.0% | | Total Adjusted EBITDA | $208.1 | $295.5 | $(87.4) | -29.6% | [13. Related Party Transactions](index=26&type=section&id=13.%20Related%20Party%20Transactions) - The company engages in various transactions with entities controlled by or affiliated with the Wilks Parties (founders and principal stockholders), including logistics, financing, administrative support, pressure pumping services, equipment rental/sales, leasing, construction, earthworks, and aviation[34](index=34&type=chunk)[93](index=93&type=chunk)[96](index=96&type=chunk) - Accounts receivable from related parties, primarily Flying A, increased from **$16.1 million** at December 31, 2024, to **$18.9 million** at June 30, 2025[97](index=97&type=chunk) - Accounts payable to related parties, primarily Logistix IQ, increased from **$18.1 million** at December 31, 2024, to **$30.0 million** at June 30, 2025[97](index=97&type=chunk) Revenue from Related Parties (Three and Six Months Ended June 30) | Related Party | Q2 2025 (millions) | Q2 2024 (millions) | YTD Q2 2025 (millions) | YTD Q2 2024 (millions) | | :-------------- | :----------------- | :----------------- | :--------------------- | :--------------------- | | Flying A | $3.1 | $6.5 | $5.0 | $11.7 | | Total | $3.1 | $6.5 | $5.0 | $11.7 | Expenditures with Related Parties (Three and Six Months Ended June 30) | Related Party | Q2 2025 (millions) | Q2 2024 (millions) | YTD Q2 2025 (millions) | YTD Q2 2024 (millions) | | :---------------- | :----------------- | :----------------- | :--------------------- | :--------------------- | | Logistix IQ | $15.0 | $20.4 | $58.1 | $41.7 | | Wilks Brothers | $2.0 | $2.6 | $4.0 | $4.7 | | Related Lessors | $3.8 | $3.1 | $7.6 | $6.3 | | Wilks Earthworks | $6.8 | $4.5 | $12.4 | $6.1 | | Equify Financial | $4.6 | $2.6 | $9.2 | $4.7 | | Total | $36.4 | $35.6 | $96.8 | $66.2 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, highlighting key developments, recent trends, and detailed analysis of revenues, costs, and liquidity across its business segments [OVERVIEW](index=29&type=section&id=OVERVIEW) - ProFrac is a vertically integrated energy services company focused on hydraulic fracturing, proppant production, and manufacturing for North American unconventional oil and natural gas resources[99](index=99&type=chunk) - The company operates through three reportable segments: Stimulation Services, Proppant Production, and Manufacturing[100](index=100&type=chunk) [Summary Financial Results](index=29&type=section&id=Summary%20Financial%20Results) - Net loss in 2024 included a **$67.7 million** pre-tax goodwill impairment charge[105](index=105&type=chunk) - Total principal amount of long-term debt decreased by **$28.9 million** from December 31, 2024, to June 30, 2025[105](index=105&type=chunk) Summary Financial Results (Three and Six Months Ended June 30) | Metric | Q2 2025 (millions) | Q2 2024 (millions) | YTD Q2 2025 (millions) | YTD Q2 2024 (millions) | | :----------------------------------- | :----------------- | :----------------- | :--------------------- | :--------------------- | | Total revenue | $501.9 | $579.4 | $1,102.2 | $1,160.9 | | Net loss attributable to ProFrac Holding Corp. | $(105.9) | $(66.7) | $(123.4) | $(64.9) | | Cash provided by operating activities (YTD) | N/A | N/A | $139.1 | $192.6 | | Total principal amount of long-term debt (period end) | $1,110.0 | N/A | $1,110.0 | N/A | [2025 Developments](index=29&type=section&id=2025%20Developments) - In April 2025, Flotek acquired gas conditioning equipment from the Stimulation Services segment for **$107.5 million**, with a six-year leaseback, providing ownership exposure to a scalable gas quality business[102](index=102&type=chunk) - In June 2025, the company issued **$20.0 million** of Senior Secured Floating Rate Notes due 2029 to Wilks Brothers, LLC, with commitments for an additional **$40.0 million** later in 2025, to fund capital expenditures and general corporate purposes[103](index=103&type=chunk) - The Alpine 2023 Term Loan was amended in June 2025 to reduce amortization payments and defer the Total Net Leverage Ratio covenant testing until March 31, 2027[104](index=104&type=chunk)[106](index=106&type=chunk) - In June 2025, the EKU Power Drives subsidiary in the Manufacturing Segment was disposed of, resulting in a **$10.5 million** loss[106](index=106&type=chunk) [Recent Trends and Outlook](index=30&type=section&id=Recent%20Trends%20and%20Outlook) - The business is highly dependent on E&P companies' expenditures, which are influenced by oil and natural gas prices[107](index=107&type=chunk) - Oil and natural gas commodity prices decreased in Q2 2025, leading to reduced customer activity and a decline in the company's Q2 results compared to Q1[107](index=107&type=chunk)[108](index=108&type=chunk) - The company expects Q3 results to decline relative to Q2 but is encouraged by increasing customer engagement for 2026 planning[108](index=108&type=chunk) [RESULTS OF OPERATIONS](index=30&type=section&id=RESULTS%20OF%20OPERATIONS) [Revenues](index=30&type=section&id=Revenues) - Stimulation Services revenues decreased by **15%** (Q2) and **6%** (YTD) due to fewer active fleets and lower average pricing[110](index=110&type=chunk) - Proppant Production revenues increased **12%** in Q2 due to higher average pricing from a shift to wellsite pricing, but decreased **2%** YTD due to lower Q1 pricing[111](index=111&type=chunk) - Manufacturing revenues were flat in Q2 but increased **22%** YTD, driven by increased intercompany demand in Q1 and contributions from BPC and NRG acquisitions[113](index=113&type=chunk) - Other revenues increased significantly (**37%** in Q2, **42%** YTD) primarily due to increased revenue for Flotek, including contract shortfall revenue from the Stimulation Services segment[114](index=114&type=chunk) Revenues by Reportable Segment (Three and Six Months Ended June 30) | Segment | Q2 2025 (millions) | Q2 2024 (millions) | YTD Q2 2025 (millions) | YTD Q2 2024 (millions) | | :-------------------- | :----------------- | :----------------- | :--------------------- | :--------------------- | | Stimulation Services | $432.0 | $505.6 | $956.5 | $1,022.9 | | Proppant Production | $77.5 | $69.5 | $144.8 | $147.2 | | Manufacturing | $55.8 | $55.9 | $121.6 | $99.4 | | Other | $65.0 | $47.6 | $127.2 | $89.3 | | Eliminations | $(128.4) | $(99.2) | $(247.9) | $(197.9) | | Total revenues | $501.9 | $579.4 | $1,102.2 | $1,160.9 | [Cost of Revenues](index=31&type=section&id=Cost%20of%20Revenues) - Stimulation Services cost of revenues decreased in Q2 due to fewer active fleets but increased YTD due to higher active fleets in Q1, including intercompany supply commitment charges from Flotek[115](index=115&type=chunk) - Proppant Production cost of revenues increased significantly (**56%** in Q2, **27%** YTD) due to increased costs supporting the shift to wellsite pricing for intercompany sales[116](index=116&type=chunk) - Manufacturing cost of revenues decreased in Q2 due to lower intercompany volumes but increased YTD due to higher Q1 volumes and acquisition contributions[117](index=117&type=chunk) - Other cost of revenues increased (**33%** in Q2, **40%** YTD) primarily due to increased product sales at Flotek[118](index=118&type=chunk) Cost of Revenues (Exclusive of DDA) by Reportable Segment (Three and Six Months Ended June 30) | Segment | Q2 2025 (millions) | Q2 2024 (millions) | YTD Q2 2025 (millions) | YTD Q2 2024 (millions) | | :-------------------- | :----------------- | :----------------- | :--------------------- | :--------------------- | | Stimulation Services | $350.2 | $367.7 | $738.0 | $730.5 | | Proppant Production | $57.6 | $37.0 | $100.8 | $79.1 | | Manufacturing | $43.6 | $49.0 | $98.9 | $82.8 | | Other | $48.7 | $36.7 | $96.2 | $68.7 | | Eliminations | $(125.4) | $(97.3) | $(239.8) | $(194.3) | | Total cost of revenues | $374.7 | $393.1 | $794.1 | $766.8 | [Selling, General and Administrative](index=32&type=section&id=Selling,%20General%20and%20Administrative) - Total SG&A decreased **5%** in Q2 due to lower labor costs from cost control measures and decreased stock-based compensation[119](index=119&type=chunk) - Total SG&A was flat YTD, with increased labor and facility costs from 2024 acquisitions (BPC, AST, NRG) offset by decreased stock-based compensation[119](index=119&type=chunk) Selling, General and Administrative Expenses (Three and Six Months Ended June 30) | Category | Q2 2025 (millions) | Q2 2024 (millions) | YTD Q2 2025 (millions) | YTD Q2 2024 (millions) | | :----------------------------------- | :----------------- | :----------------- | :--------------------- | :--------------------- | | SG&A, excluding stock-based compensation | $49.4 | $51.2 | $101.9 | $99.7 | | Stock-based compensation | $2.0 | $2.9 | $3.1 | $5.0 | | Total SG&A | $51.4 | $54.1 | $105.0 | $104.7 | [Depreciation, Depletion, and Amortization](index=32&type=section&id=Depreciation,%20Depletion,%20and%20Amortization) - Depreciation, depletion, and amortization increased by **$1.3 million** in Q2 2025 but decreased by **$5.5 million** YTD 2025 compared to the same periods in 2024[120](index=120&type=chunk) [Acquisition and Integration Costs](index=32&type=section&id=Acquisition%20and%20Integration%20Costs) - Acquisition and integration costs significantly decreased in 2025 compared to 2024, reflecting fewer acquisition activities[121](index=121&type=chunk) Acquisition and Integration Costs (Three and Six Months Ended June 30) | Period | Q2 2025 (millions) | Q2 2024 (millions) | YTD Q2 2025 (millions) | YTD Q2 2024 (millions) | | :----- | :----------------- | :----------------- | :--------------------- | :--------------------- | | Costs | $0.1 | $2.9 | $0.2 | $3.1 | [Other Operating Expense, Net](index=32&type=section&id=Other%20Operating%20Expense,%20Net) - The increase in other operating expense, net, was primarily due to a **$12.8 million** provision for credit losses related to an insolvent customer and **$3.3 million** in transaction costs for strategic initiatives in 2025[123](index=123&type=chunk) - Litigation expenses decreased, while losses on disposal of assets increased in 2025[122](index=122&type=chunk) Other Operating Expense, Net (Three and Six Months Ended June 30) | Category | Q2 2025 (millions) | Q2 2024 (millions) | YTD Q2 2025 (millions) | YTD Q2 2024 (millions) | | :----------------------------------- | :----------------- | :----------------- | :------------------- | :------------------- | | Litigation expenses and accruals | $2.8 | $9.2 | $4.4 | $14.0 | | Provision for credit losses | $12.8 | $0.0 | $12.8 | $0.0 | | Gain on insurance recoveries | $0.0 | $(3.2) | $0.0 | $(3.2) | | Transaction costs | $3.3 | $0.0 | $3.5 | $0.0 | | Lease termination | $0.8 | $0.0 | $0.8 | $0.0 | | Severance charges | $0.4 | $1.1 | $0.4 | $1.8 | | (Gain) loss on disposal of assets | $5.2 | $0.3 | $8.6 | $(1.1) | | Supply commitment charge | $0.0 | $0.0 | $0.0 | $0.2 | | Total | $25.3 | $7.4 | $30.5 | $11.7 | [Interest Expense, Net](index=34&type=section&id=Interest%20Expense,%20Net) - Interest expense, net, decreased in both periods due to lower average interest rates in 2025[125](index=125&type=chunk) Interest Expense, Net (Three and Six Months Ended June 30) | Period | Q2 2025 (millions) | Q2 2024 (millions) | YTD Q2 2025 (millions) | YTD Q2 2024 (millions) | | :----- | :----------------- | :----------------- | :--------------------- | :--------------------- | | Interest expense, net | $35.1 | $39.6 | $71.0 | $77.2 | [Other (Expense) Income, Net](index=34&type=section&id=Other%20(Expense)%20Income,%20Net) - The shift to net expense in 2025 was primarily due to a **$10.5 million** loss on disposal of EKU Power Drives in Q2 2025, partially offset by a decrease in the fair value of the Munger make-whole provision in Q1 2025[126](index=126&type=chunk) Other (Expense) Income, Net (Three and Six Months Ended June 30) | Period | Q2 2025 (millions) | Q2 2024 (millions) | YTD Q2 2025 (millions) | YTD Q2 2024 (millions) | | :----- | :----------------- | :----------------- | :--------------------- | :--------------------- | | Other (expense) income, net | $(9.7) | $(0.5) | $(4.9) | $1.3 | [Income Taxes](index=34&type=section&id=Income%20Taxes) - The 2025 tax provision included a **$4 million** discrete expense related to a book-tax difference on the sale of gas conditioning equipment to Flotek[128](index=128&type=chunk) - The 2024 tax provision included a **$27.4 million** discrete benefit from the release of a valuation allowance on deferred tax assets due to the AST acquisition[129](index=129&type=chunk) Income Taxes (Six Months Ended June 30) | Metric | YTD Q2 2025 (millions) | YTD Q2 2024 (millions) | | :-------------------- | :--------------------- | :--------------------- | | Income tax (expense) benefit | $(4.7) | $23.4 | | Effective tax rate | -4.1% | 27.2% | [LIQUIDITY AND CAPITAL RESOURCES](index=34&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) [Sources of Liquidity](index=34&type=section&id=Sources%20of%20Liquidity) - Primary liquidity sources are cash flows from operations, availability under the revolving credit facility, and commitments for an additional **$40.0 million** of 2029 Senior Notes in H2 2025[131](index=131&type=chunk) - As of June 30, 2025, total liquidity was **$108.3 million**, comprising **$21.0 million** in cash (excluding Flotek) and **$87.3 million** available under the revolving credit facility[133](index=133&type=chunk) - The company expects sufficient liquidity for capital expenditures, obligations, and debt covenant compliance for at least the next 12 months, though Alpine's forthcoming debt covenant (March 31, 2027) is being monitored[134](index=134&type=chunk) [Cash Flows](index=35&type=section&id=Cash%20Flows) - Operating cash flow decreased due to lower earnings in 2025, despite a slight increase in cash from changes in net working capital[135](index=135&type=chunk) - Investing activities used less cash in 2025 due to decreased capital expenditures and fewer acquisitions compared to 2024[136](index=136&type=chunk) - Financing activities shifted from providing cash in 2024 to using cash in 2025, primarily due to increased borrowings for acquisitions in 2024[137](index=137&type=chunk) Cash Flows (Six Months Ended June 30) | Activity | YTD Q2 2025 (millions) | YTD Q2 2024 (millions) | | :-------------------- | :--------------------- | :--------------------- | | Operating activities | $139.1 | $192.6 | | Investing activities | $(97.9) | $(284.8) | | Financing activities | $(30.0) | $90.9 | | Net change in cash | $11.2 | $(1.3) | [Cash Requirements](index=35&type=section&id=Cash%20Requirements) - Material cash requirements include debt service obligations, capital expenditures, purchase commitments, tax receivable agreement payments, and potential acquisitions[139](index=139&type=chunk) - As of June 30, 2025, total long-term debt outstanding was **$1,110.0 million**, with **$136.0 million** due in the next twelve months[140](index=140&type=chunk) - Estimated capital expenditures for full-year 2025 range from **$125 million** to **$145 million** for maintenance and an additional **$50 million** to **$80 million** for growth initiatives[144](index=144&type=chunk) - Purchase commitments for hydraulic fracturing equipment components totaled **$30.9 million** for 2025[146](index=146&type=chunk) - Estimated tax receivable agreement obligations are **$86.4 million**, with **$3.4 million** due in the next twelve months[147](index=147&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discusses the company's exposure to market risks, particularly interest rate risk on its variable-rate debt - The company is subject to interest rate risk on its variable-rate debt[151](index=151&type=chunk) - A **1%** increase in interest rates on variable-rate debt as of June 30, 2025, would increase annual interest payments by approximately **$10.6 million**[151](index=151&type=chunk) - No derivative instruments were held that materially increased exposure to market risks for interest rates, foreign currency rates, commodity prices, or other market price risks[151](index=151&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details management's evaluation of the effectiveness of the company's disclosure controls and procedures and reports on any changes in internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=40&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) - Management, including the Executive Chairman and CFO, concluded that disclosure controls and procedures were effective as of June 30, 2025, providing reasonable assurance that required information is recorded, processed, summarized, and reported timely[152](index=152&type=chunk) [Limitations on Controls and Procedures](index=40&type=section&id=Limitations%20on%20Controls%20and%20Procedures) - Management acknowledges that disclosure controls and procedures provide only reasonable, not absolute, assurance and are subject to inherent limitations, including the cost-benefit relationship and potential deterioration over time[153](index=153&type=chunk) [Changes in Internal Control over Financial Reporting](index=40&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) - There were no material changes in internal control over financial reporting during the three months ended June 30, 2025[154](index=154&type=chunk) [PART II - Other Information](index=41&type=section&id=PART%20II) [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to the detailed discussion of legal proceedings and contingencies provided in the notes to the financial statements - Information regarding legal proceedings is incorporated by reference from Note 9, 'Commitments and Contingencies,' in the unaudited condensed consolidated financial statements[156](index=156&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the significant risk factors previously disclosed in the company's Annual Report - No material changes have occurred in the significant risk factors affecting the business, results of operations, or liquidity since the Annual Report on Form 10-K for the year ended December 31, 2024[157](index=157&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section confirms that there were no unregistered sales of equity securities during the reporting period - The company had no sales of unregistered equity securities during the period covered by this Quarterly Report[158](index=158&type=chunk) [Item 3. Defaults Upon Senior Securities](index=41&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section indicates that there were no defaults upon senior securities during the reporting period - There were no defaults upon senior securities during the reporting period[159](index=159&type=chunk) [Item 4. Mine Safety Disclosures](index=41&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section directs to Exhibit 95 for information regarding mine safety violations and regulatory matters - Mine safety violations and other regulatory matters are disclosed in Exhibit 95 to this Quarterly Report, as required by Section 1503(a) of the Dodd-Frank Act and Item 104 of Regulation S-K[160](index=160&type=chunk) [Item 5. Other Information](index=41&type=section&id=Item%205.%20Other%20Information) This section reports on securities trading plans by directors and executive officers - None of the company's directors or executive officers adopted or terminated any Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025[161](index=161&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed or furnished with the Quarterly Report on Form 10-Q - The report includes various exhibits, such as the Second Amended and Restated Certificate of Incorporation, Amended and Restated Bylaws, Indenture documents, and certifications from principal executive and financial officers[163](index=163&type=chunk) - Key exhibits include Amendment No. 3 to Term Loan Credit Agreement and Amendment No. 1 to Guarantee Agreement (Exhibit 10.1) and a Purchase Agreement for Senior Secured Floating Rate Notes (Exhibit 10.2)[163](index=163&type=chunk) [SIGNATURES](index=43&type=section&id=SIGNATURES) - The report was duly signed on behalf of ProFrac Holding Corp. on August 7, 2025, by Matthew D. Wilks, Executive Chairman and Director (Principal Executive Officer), and Austin Harbour, Chief Financial Officer (Principal Financial Officer)[166](index=166&type=chunk)[168](index=168&type=chunk)

Financial Data and Key Metrics Changes - In Q2, the company generated revenues of $520 million, a decrease from $600 million in Q1, reflecting market headwinds [18][32] - Adjusted EBITDA for Q2 was $79 million, down from $130 million in Q1, resulting in an adjusted EBITDA margin of 16% compared to 22% in the previous quarter [32][34] - Free cash flow improved to $54 million in Q2 from negative $14 million in Q1, demonstrating operational resilience despite challenging conditions [18][34] Business Line Data and Key Metrics Changes - Stimulation services revenues declined to $432 million in Q2 from $525 million in Q1, with adjusted EBITDA falling to $51 million from $105 million [34] - Proppant production segment revenues increased to $78 million in Q2 from $67 million in Q1, driven by higher delivered sand sales [35] - Manufacturing segment revenues decreased to $56 million in Q2 from $66 million in Q1, with a notable increase in external sales contributing to adjusted EBITDA improvement [36] Market Data and Key Metrics Changes - The company noted a stabilization in active fleet count towards the end of Q2 and into early Q3, with modest improvements in activity levels observed [22] - Increased customer engagement around 2026 planning indicates a potential uptick in activity levels compared to current conditions [43][44] - The company anticipates increased demand in the Haynesville region, positioning itself well with significant proppant production capacity [24][19] Company Strategy and Development Direction - The company emphasizes its vertically integrated manufacturing capabilities and sophisticated asset management platform as key competitive advantages [10][19] - A strategic partnership with Flotek has unlocked value and positioned the company in a multibillion-dollar market for gas quality management [16][40] - The company is focusing on a power generation strategy that targets the data center market, aiming to generate revenues decoupled from the volatility of the completions industry [17][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about market conditions improving, with signs of increased activity and customer dialogue for 2026 planning [7][19] - The company remains disciplined in capital allocation while preparing for potential tightening in the market in early 2026 [20][50] - Management highlighted the importance of technology leadership and operational flexibility in navigating current market challenges [11][19] Other Important Information - The company reported total liquidity of approximately $108 million at the end of Q2, including $87 million available under the ABL [38] - The company executed transactions expected to provide approximately $90 million in incremental liquidity through 2025, enhancing financial flexibility [39] - The Flotek transaction involved the transfer of mobile gas conditioning units, strengthening the strategic partnership and providing financial benefits [40] Q&A Session Summary Question: Inquiry about increasing customer engagement around 2026 - Management noted a significant increase in engagement regarding 2026 programs, with operators reassessing their activity levels and some already returning to work [43][44] Question: Context on increased activity since late June - Management indicated that the uptick in activity is observed across both gas and oil markets, with a more pronounced increase in gas-directed activities [45][46]

[Second Quarter 2025 Performance Overview](index=1&type=section&id=Second%20Quarter%202025%20Results) [Executive Summary](index=1&type=section&id=Executive%20Summary) ProFrac's Q2 2025 results faced market headwinds, but operational excellence improved capital efficiency, exceeding Adjusted EBITDA less capital expenditures, with fleet redeployment and positive 2026 outlook - Q2 performance reflected market headwinds following a **sharp decline in commodity prices** in early April[4](index=4&type=chunk) - Operational excellence initiatives, particularly asset management programs, continuously **improved capital efficiency** and optimized capital investments[4](index=4&type=chunk) - **Adjusted EBITDA less capital expenditures exceeded expectations**, with the company maintaining an **industry-leading position** in this metric[4](index=4&type=chunk) - Since the end of Q2, a portion of the fleet has returned to work, and frac calendar utilization has **improved** from recent lows[4](index=4&type=chunk) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) The company experienced a sequential decline in total revenue and Adjusted EBITDA in Q2 2025, with a significant net loss expansion, yet net cash flow from operating activities and free cash flow both substantially increased, while capital expenditures decreased Key Financial Data for Q2 2025 (vs. Q1) | Metric | Q2 2025 | Q1 2025 | Sequential Change | | :----------------------- | :------------- | :------------- | :--------- | | Total Revenue | $502 million | $600 million | ↓ $98 million | | Net Loss | $104 million | $15 million | ↑ $89 million | | Adjusted EBITDA | $79 million | $130 million | ↓ $51 million | | Adjusted EBITDA as % of Revenue | 16% | 22% | ↓ 6 percentage points | | Net Cash Provided by Operating Activities | $100 million | $39 million | ↑ $61 million | | Capital Expenditures | $47 million | $53 million | ↓ $6 million | | Free Cash Flow | $54 million | $(14) million | ↑ $68 million | [Strategic Initiatives and Business Outlook](index=1&type=section&id=Strategic%20Initiatives%20and%20Outlook) The company continues to deploy the ProPilot automated frac system, deepen its partnership with Flotek for gas quality and asset integrity management, and enhance financial flexibility through debt refinancing, while Q3 outlook anticipates a sequential decline in frac services but stable proppant production - The ProPilot automated frac system has been deployed to all active fleets, aiming for **transformative improvements** in frac operations[5](index=5&type=chunk) - Collaboration with Flotek provides ownership exposure to a **highly scalable gas quality and asset integrity management business**[5](index=5&type=chunk) - Financial flexibility was enhanced through targeted debt refinancing measures, providing **incremental liquidity**[5](index=5&type=chunk) - Active fleet count in the stimulation services segment bottomed out in late June to early July, with incremental fleets redeployed as of July 31, but Q3 performance is expected to **decline sequentially**[7](index=7&type=chunk) - The proppant production segment anticipates sales volumes to be **flat with Q2 levels**, with efficiency gains expected to maintain profitability similar to Q2[8](index=8&type=chunk) [Consolidated Financial Performance](index=7&type=section&id=Consolidated%20Financial%20Performance) [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) In Q2 2025, the company experienced a significant sequential decline in total revenue, leading to an expanded operating loss and a substantial increase in net loss, with both revenue and net income declining compared to the prior year period Key Data from Consolidated Statements of Operations | Metric | Q2 2025 | Q1 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Total Revenue | $501.9 million | $600.3 million | $579.4 million | $1,102.2 million | $1,160.9 million | | Operating Income (Loss) | $(54.3) million | $16.0 million | $(49.2) million | $(38.3) million | $(9.3) million | | Net Income (Loss) | $(103.5) million | $(15.4) million | $(65.6) million | $(118.9) million | $(62.6) million | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, the company's total assets and total liabilities both decreased compared to the end of 2024, with cash and cash equivalents increasing but the accumulated deficit expanding Key Data from Consolidated Balance Sheets | Metric | June 30, 2025 | Dec 31, 2024 | | :----------------------- | :------------- | :------------- | | Total Assets | $2,830.7 million | $2,988.1 million | | Total Liabilities | $1,812.4 million | $1,848.5 million | | Cash and Cash Equivalents | $26.0 million | $14.8 million | | Accumulated Deficit | $(361.9) million | $(235.9) million | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In Q2 2025, cash flow from operating activities significantly increased, while investing activities continued to be a net cash outflow, and financing activities shifted from a net inflow in Q1 to a net outflow Key Data from Consolidated Statements of Cash Flows | Metric | Q2 2025 | Q1 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Net Cash Provided by Operating Activities | $100.4 million | $38.7 million | $113.5 million | $139.1 million | $192.6 million | | Net Cash Used in Investing Activities | $(46.2) million | $(51.7) million | $(231.5) million | $(97.9) million | $(284.8) million | | Net Cash Provided by (Used in) Financing Activities | $(44.2) million | $14.2 million | $113.7 million | $(30.0) million | $90.9 million | [Business Segment Information](index=2&type=section&id=Business%20Segment%20Information) [Stimulation Services](index=2&type=section&id=Stimulation%20Services) The Stimulation Services segment experienced a significant sequential decline in both revenue and Adjusted EBITDA in Q2 2025, leading to a substantial contraction in profit margin Stimulation Services Segment Performance (Sequential) | Metric | Q2 2025 | Q1 2025 | Sequential Change | | :---------------- | :------------- | :------------- | :--------- | | Revenue | $432 million | $525 million | ↓ $93 million | | Adjusted EBITDA | $51 million | $105 million | ↓ $54 million | | Profit Margin | 12% | 20% | ↓ 8 percentage points | [Proppant Production](index=2&type=section&id=Proppant%20Production) The Proppant Production segment saw sequential revenue growth in Q2 2025, but Adjusted EBITDA decreased, resulting in margin contraction, with approximately 58% of its revenue from intercompany transactions Proppant Production Segment Performance (Sequential) | Metric | Q2 2025 | Q1 2025 | Sequential Change | | :---------------- | :------------- | :------------- | :--------- | | Revenue | $78 million | $67 million | ↑ $11 million | | Adjusted EBITDA | $15 million | $18 million | ↓ $3 million | | Profit Margin | 19% | 27% | ↓ 8 percentage points | | Intercompany Revenue Share | 58% | N/A | N/A | [Manufacturing](index=2&type=section&id=Manufacturing) The Manufacturing segment experienced a sequential revenue decline in Q2 2025, but Adjusted EBITDA significantly increased, leading to a substantial improvement in profit margin, with approximately 78% of its revenue from intercompany transactions Manufacturing Segment Performance (Sequential) | Metric | Q2 2025 | Q1 2025 | Sequential Change | | :---------------- | :------------- | :------------- | :--------- | | Revenue | $56 million | $66 million | ↓ $10 million | | Adjusted EBITDA | $7 million | $4 million | ↑ $3 million | | Profit Margin | 13% | 6% | ↑ 7 percentage points | | Intercompany Revenue Share | 78% | N/A | N/A | [Other Business Activities](index=2&type=section&id=Other%20Business%20Activities) The Other Business Activities segment saw a slight sequential revenue increase in Q2 2025, with stable Adjusted EBITDA and a minor decrease in profit margin, including performance from Flotek Industries and Livewire Power Other Business Activities Segment Performance (Sequential) | Metric | Q2 2025 | Q1 2025 | Sequential Change | | :---------------- | :------------- | :------------- | :--------- | | Revenue | $65 million | $62 million | ↑ $3 million | | Adjusted EBITDA | $8 million | $8 million | ↔ $0 million | | Profit Margin | 12% | 13% | ↓ 1 percentage point | - Other business activities include the performance of Flotek Industries and Livewire Power[12](index=12&type=chunk) [Capital Structure, Liquidity and Free Cash Flow](index=2&type=section&id=Capital%20Structure,%20Liquidity%20%26%20Free%20Cash%20Flow) [Capital Expenditures and Allocation](index=3&type=section&id=Capital%20Expenditures%20and%20Allocation) Cash capital expenditures decreased sequentially in Q2 2025, and the company raised its full-year 2025 capital expenditure guidance, primarily for frac fleet maintenance, selective growth, and Alpine mine improvements Capital Expenditures (Sequential) | Metric | Q2 2025 | Q1 2025 | Sequential Change | | :----------- | :------------- | :------------- | :--------- | | Cash Capital Expenditures | $47 million | $53 million | ↓ $6 million | - The company expects 2025 capital expenditures to be approximately **$175 million to $225 million**, primarily for frac fleet maintenance, selective growth, and quality and throughput improvements at the Alpine mine[14](index=14&type=chunk) [Balance Sheet and Liquidity Position](index=3&type=section&id=Balance%20Sheet%20and%20Liquidity%20Position) As of June 30, 2025, the company maintained high total and net debt levels, with increased cash and cash equivalents, and total liquidity of $108 million, including cash and available asset-backed credit facility Debt and Liquidity (Period End) | Metric | June 30, 2025 | Dec 31, 2024 | | :----------------------- | :------------- | :------------- | | Total Debt | $108.42 million | $110.9 million | | Total Principal Debt | $111.0 million | $113.89 million | | Net Debt | $108.4 million | $112.41 million | | Cash and Cash Equivalents | $26 million | $14.8 million | | Total Liquidity | $108 million | N/A | - Total liquidity includes approximately **$21 million in cash and cash equivalents** (excluding Flotek) and **$87 million in available asset-backed credit facility**[16](index=16&type=chunk) [Free Cash Flow Generation](index=1&type=section&id=Free%20Cash%20Flow%20Generation) The company generated $54 million in free cash flow in Q2 2025, a significant improvement from the negative value in Q1 Free Cash Flow (Sequential) | Metric | Q2 2025 | Q1 2025 | Sequential Change | | :----------- | :------------- | :------------- | :--------- | | Free Cash Flow | $54.4 million | $(13.6) million | ↑ $68.0 million | [Corporate Information and Disclosures](index=3&type=section&id=Corporate%20Information%20and%20Disclosures) [About ProFrac Holding Corp.](index=3&type=section&id=About%20ProFrac%20Holding%20Corp.) ProFrac Holding Corp. is a technology-driven, vertically integrated energy services holding company providing hydraulic fracturing, proppant production, related completion services, and supplementary products to North American unconventional oil and gas E&P companies - ProFrac Holding Corp. is a **technology-driven, vertically integrated energy services holding company**[18](index=18&type=chunk) - Core businesses include hydraulic fracturing, proppant production, related completion services, and supplementary products and services[18](index=18&type=chunk) - Operates through three business segments: Stimulation Services, Proppant Production, and Manufacturing, along with Other Business Activities[18](index=18&type=chunk) [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) This report defines and explains non-GAAP financial measures such as Adjusted EBITDA, Free Cash Flow, and Net Debt, used by management and investors to assess financial performance and liquidity, noting their limitations as non-substitutes for GAAP measures - **Adjusted EBITDA** is defined as net income (loss) adjusted for interest expense, income taxes, depreciation and amortization, gain or loss on asset disposals, stock-based compensation, and other items[23](index=23&type=chunk) - **Free Cash Flow** is defined as net cash provided by operating activities less investments in property, plant, and equipment, plus proceeds from asset sales[23](index=23&type=chunk) - **Net Debt** is defined as total debt plus unamortized debt discounts, premiums, and issuance costs, less cash and cash equivalents[26](index=26&type=chunk) - These non-GAAP measures are supplementary and should not be considered substitutes for GAAP financial measures, and may not be comparable to similarly titled measures used by other companies[22](index=22&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This press release contains forward-looking statements about future events or financial performance, based on current assumptions but subject to risks and uncertainties that may cause actual results to differ materially, with no obligation to update unless legally required - Forward-looking statements involve future events or the company's future financial or operating performance, often accompanied by words such as "may," "should," and "expect"[20](index=20&type=chunk) - Actual results may differ materially from forward-looking statements due to various risks and uncertainties, including acquisition benefits, market conditions, capital requirements, industry fluctuations, and economic conditions[20](index=20&type=chunk) - Readers should not place undue reliance on forward-looking statements, and the company undertakes no obligation to update them unless required by law[21](index=21&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call) ProFrac has scheduled a conference call for Thursday, August 7, 2025, at 11:00 AM ET / 10:00 AM CT to discuss results, with a webcast archive available on the company's investor relations website for 90 days - The conference call is scheduled for **Thursday, August 7, 2025, at 11:00 AM ET / 10:00 AM CT**[17](index=17&type=chunk) - An archive of the webcast will be available for **90 days** shortly after the call in the IR Calendar section of ProFrac's investor relations website[17](index=17&type=chunk)

Core Viewpoint - Flotek Industries (FTK) is strategically expanding its Data Analytics Services (DAS) segment through the acquisition of mobile gas monitoring and dual-fuel optimization units, aiming to build recurring, high-margin revenues from real-time gas analytics and remote power solutions [1][2]. Group 1: Acquisition Details - In April 2025, Flotek acquired 30 mobile gas monitoring and dual-fuel optimization units from ProFrac Holding Corp. for $105 million [1]. - The transaction is expected to generate $14 million in EBITDA in 2025 from 22 units already deployed under a six-year lease [2]. - Once all 30 units are operational, annual lease revenues could reach $27.4 million in 2026, nearly double the DAS segment's revenues in 2024 [2]. Group 2: Strategic Positioning - The acquisition strengthens Flotek's partnership with ProFrac and positions the company to capitalize on the growing off-grid energy market [3]. - This move enhances Flotek's competitiveness in gas analytics and on-site power management, which are critical as industries aim to reduce flaring and improve fuel efficiency [3]. Group 3: Competitive Landscape - Compared to larger rival ChampionX, which has not adopted a lease-based model for its analytics technology, Flotek's hybrid approach combines hardware with built-in analytics and long-term leases [4][5]. - ChampionX's digital revenues remain modest, and its reliance on short-cycle markets adds volatility, highlighting Flotek's differentiated strategy [4]. Group 4: Financial Performance and Estimates - Flotek's shares have increased approximately 54% year to date [8]. - The company trades at a forward price-to-earnings ratio of 24.98, significantly higher than the subindustry's 12.19 [9]. - The Zacks Consensus Estimate for Flotek's 2025 earnings indicates a 56% year-over-year improvement, with estimates of $0.53 for the current year and $0.67 for the next year [11][12].

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]

Financial Performance - Total revenue for Q1 2025 was $600.3 million, an increase of $18.8 million or 3.2% from Q1 2024[96] - Net loss attributable to ProFrac Holding Corp. for Q1 2025 was $17.5 million, a decrease of $19.3 million from Q1 2024[96] - Stimulation Services revenue increased by $7.2 million, or 1%, to $524.5 million in Q1 2025 compared to Q1 2024[97] - Proppant Production revenue decreased by $10.4 million, or 13%, to $67.3 million in Q1 2025 due to lower average pricing[98] - Manufacturing revenue increased by $22.3 million, or 51%, to $65.8 million in Q1 2025, driven by higher intercompany demand[99] Costs and Expenses - Total cost of revenues for Q1 2025 was $419.4 million, an increase of $45.7 million or 12.2% from Q1 2024[101] - Selling, general and administrative expenses increased by $3.0 million, or 6%, to $53.6 million in Q1 2025, primarily due to labor and facility costs from acquisitions[106] Cash Flow - Cash provided by operating activities for Q1 2025 was $38.7 million, a decrease of $40.4 million from Q1 2024[96] - Net cash provided by operating activities decreased to $38.7 million in Q1 2025 from $79.1 million in Q1 2024, primarily due to lower earnings[121] - Net cash used in investing activities was $51.7 million in Q1 2025, slightly down from $53.3 million in Q1 2024[122] - Net cash provided by financing activities was $14.2 million in Q1 2025, compared to a net cash used of $22.8 million in Q1 2024[123] Debt and Capital Expenditures - Long-term debt increased by $15.5 million to $1,154.4 million as of March 31, 2025[96] - As of March 31, 2025, the company had $1,154.4 million in long-term debt, with $151.8 million due in the next twelve months[124] - Capital expenditures for Q1 2025 were $52.5 million, with full-year estimates ranging from $150 million to $175 million for maintenance and an additional $100 million to $125 million for growth initiatives[128] - The company has identified potential capital expenditure reductions of $70 million to $100 million to align with market conditions[128] Future Outlook - The company expects consolidated results to decline in Q2 2025 due to reduced capital spending by customers[94] - The company is closely monitoring compliance with a covenant requiring a maximum Total Net Leverage Ratio of 2.00 to 1.00, effective from Q1 2026[126] Tax and Interest Obligations - Estimated tax receivable agreement obligations were $86.2 million, with $3.3 million due in the next twelve months[131] - A 1% increase in interest rates on variable-rate debt would increase annual interest payments by approximately $11.1 million[136] Purchase Commitments - As of March 31, 2025, the company had purchase commitments of $41.6 million for hydraulic fracturing equipment components and proppant[130]