The share price of ProFrac Holding Corp. (NASDAQ:ACDC) fell by 4.06% between December 17 and December 24, 2025, putting it among the Energy Stocks that Lost the Most This Week. Analyst Assumes Coverage of ProFrac Holding (ACDC) with 'Underweight' Rating ProFrac Holding Corp. (NASDAQ:ACDC) is a technology-focused energy services company operating in the United States. ProFrac Holding Corp. (NASDAQ:ACDC) slid on December 15 when Morgan Stanley assumed coverage of the stock with an ‘Underweight’ rating and ...

Group 1 - ProFrac Holding Corp. (NASDAQ:ACDC) experienced a share price decline of 13.02% from December 10 to December 17, 2025, ranking it among the energy stocks that lost the most during that week [1] - Morgan Stanley initiated coverage of ProFrac Holding with an 'Underweight' rating and set a price target of $3.50, suggesting a potential downside of over 11% from the current share price [3] - The analyst noted that oil and gas services stocks have rebounded from their lows after a challenging 2025, but cautioned that it is premature to invest due to expected tight North American onshore spending amid an uncertain oil market [3] Group 2 - Global crude oil prices have fallen to their lowest levels since February 2021, influenced by weak employment data, oversupply, and the possibility of a peace deal between Ukraine and Russia [4]

Core Insights - ProFrac Holding Corp. (NASDAQ: ACDC) experienced a significant decline in share price, falling by 11.06% from November 11 to November 18, 2025, ranking among the energy stocks that lost the most during that week [1] Financial Performance - The company reported lower-than-expected results for Q3 on November 10, with both earnings and revenue falling below estimates [3] - Revenue decreased by 30% year-over-year, with the Stimulation Services division being the most affected [3] - Net cash provided by operating activities plummeted from $97 million in Q2 to $5 million in Q3, while free cash flow turned negative at $29 million [3] Profitability and Cost-Saving Measures - Although the net loss improved from $107 million in Q2 to $92 million in Q3, adjusted EBITDA was nearly halved to $41 million, indicating reduced profitability [4] - To enhance profitability, the company aims to achieve annualized cash savings of $85 to $115 million by the end of Q2 2026 through various strategic initiatives [4]

Group 1 - Deteriorating onshore activity levels in the US are negatively impacting ProFrac's business, with guidance indicating a worsening situation in the fourth quarter and little expectation for near-term improvement [1] - Narweena, an asset manager led by Richard Durant, focuses on identifying market dislocations due to poor understanding of long-term business prospects, aiming for excess risk-adjusted returns through secular growth opportunities in markets with barriers to entry [1] - The research process at Narweena emphasizes company and industry fundamentals to uncover unique insights, with a high risk appetite and long-term investment horizon targeting deeply undervalued stocks, particularly in smaller cap markets [1] Group 2 - An aging population with low growth and stagnating productivity is expected to create a different investment opportunity set compared to the past, with many industries facing stagnation or secular decline, potentially improving business performance due to reduced competition [1] - Conversely, some businesses may encounter rising costs and diseconomies of scale, while economies are increasingly dominated by asset-light businesses, leading to a declining need for infrastructure investments over time [1] - A large pool of capital is pursuing a limited set of investment opportunities, resulting in rising asset prices and compressing risk premia over time [1]

Core Insights - ProFrac Holding Corp. (NASDAQ:ACDC) experienced a significant decline in share price, falling by 27.53% from November 3 to November 10, 2025, making it one of the worst-performing energy stocks during that week [1]. Financial Performance - The company reported disappointing Q3 results on November 10, with earnings per share (EPS) of -$0.51, missing estimates by $0.09, and revenue of $403.1 million, which represented a 30% year-over-year decline [3]. - ProFrac's net loss for Q3 narrowed to $92 million from $107 million in the previous quarter, but adjusted EBITDA plummeted by 93% quarter-over-quarter, indicating significant challenges in the market [4]. - Net cash provided by operating activities dropped sharply to $5 million, down from $97 million in the prior quarter [4]. Strategic Initiatives - To enhance earnings, ProFrac aims to achieve annualized cash savings of $85 to $115 million by the end of Q2 2026, focusing on operational efficiency and cost reductions [5]. - The company's share price has decreased by over 51% since the start of 2025, reflecting ongoing struggles in the energy sector [5].

Financial Performance - Total revenue for Q3 2025 was $403.1 million, a decrease of $172.2 million (30%) from Q3 2024, and for the nine months ended September 30, 2025, it was $1,505.3 million, down $230.9 million (13%) from the same period in 2024[114]. - Net loss attributable to ProFrac Holding Corp. for Q3 2025 was $100.9 million, an increase of $55.7 million (122%) from Q3 2024, and for the nine months ended September 30, 2025, it was $226.4 million, up $116.3 million (106%) from the same period in 2024[114]. - Stimulation Services revenue for Q3 2025 decreased by $164.2 million (48%) to $342.9 million compared to Q3 2024, and for the nine months, it decreased by $230.6 million (15%) to $1,299.4 million[120]. - Proppant Production revenue for Q3 2025 increased by $23.6 million (45%) to $76.4 million compared to Q3 2024, and for the nine months, it increased by $21.2 million (11%) to $221.2 million[121]. - Manufacturing revenue for Q3 2025 decreased by $13.4 million (22%) to $48.1 million compared to Q3 2024, while for the nine months, it increased by $8.8 million (5%) to $169.7 million[123]. Cash Flow and Liquidity - Cash provided by operating activities for the nine months ended September 30, 2025, was $140.0 million, a decrease of $150.8 million (52%) from the same period in 2024[114]. - Net cash provided by operating activities was $140.0 million for the nine months ended September 30, 2025, down from $290.8 million in the same period in 2024[148]. - Total liquidity position at September 30, 2025, was $94.5 million, consisting of $53.4 million in cash and cash equivalents and $41.1 million available for borrowings[142]. Debt and Financing - Total principal amount of long-term debt was $1,094.0 million as of September 30, 2025, a decrease of $44.9 million (4%) from December 31, 2024[114]. - Total long-term debt outstanding as of September 30, 2025, was $1,094.0 million, with $158.6 million due within the next twelve months[153]. - The company plans to issue an additional $40.0 million of 2029 Senior Notes in December 2025, subject to customary closing conditions[143]. - A 1% increase in interest rates on variable-rate debt would increase annual interest payments by approximately $10.4 million[165]. - Interest expense, net decreased to $34.5 million and $105.5 million for the three and nine months ended September 30, 2025, respectively, compared to $40.6 million and $117.8 million in the same periods in 2024[135]. Expenses and Cost Management - Selling, general and administrative expenses decreased by $8.9 million (17%) and $8.6 million (5%) for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024[129]. - Depreciation, depletion, and amortization decreased by $9.7 million and $15.2 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024[130]. - Acquisition and integration costs were $0 for the three months and $0.2 million for the nine months ended September 30, 2025, down from $2.0 million and $5.1 million in the same periods in 2024[131]. Future Outlook - The company expects Q4 2025 results to improve relative to Q3 2025, focusing on financial and operational discipline amid challenging market conditions[118]. - For the full year of 2025, capital expenditures are estimated to range from $115 million to $135 million for maintenance and an additional $45 million to $55 million for growth initiatives[157]. - Capital expenditures for the nine months ended September 30, 2025, were $133.3 million, reflecting investments in maintenance and next-generation technology[156]. Strategic Initiatives - The company’s growth strategy includes potential acquisitions, which may be suspended if liquidity improvement actions are ineffective[161]. - Historical funding for acquisitions has been through equity securities issuances, borrowings under credit agreements, and debt securities issuance[164]. - As of September 30, 2025, the company had purchase commitments of $30.9 million for hydraulic fracturing equipment components[159]. Taxation - The effective tax rate for the nine months ended September 30, 2025, was 6.7%, compared to 19.0% in the same period in 2024[137]. - The estimated tax receivable agreement obligations amount to $86.4 million, with $3.4 million due in the next twelve months[160]. Other - The company recorded a loss of $10.5 million from the disposal of its EKU Power Drives subsidiary in June 2025[116]. - In June 2025, the company amended the Alpine 2023 Term Loan, reducing required amortization payments from $15.0 million to $5.0 million for certain dates[115].

Financial Data and Key Metrics Changes - In Q3, the company generated revenues of $403 million, adjusted EBITDA of $41 million, and free cash flow of negative $29 million, compared to revenues of $502 million, adjusted EBITDA of $79 million, and free cash flow of $54 million in Q2 [20][34][40] - The adjusted EBITDA margin decreased to 10% from 16% in the previous quarter, reflecting operational challenges and market volatility [34][40] Business Line Data and Key Metrics Changes - Stimulation services revenues declined to $343 million in Q3 from $432 million in Q2, with adjusted EBITDA falling to $20 million from $51 million, resulting in margins of 6% compared to 12% in Q2 [39][40] - The proppant production segment generated revenues of $76 million in Q3, effectively flat from $78 million in Q2, with adjusted EBITDA of $8 million compared to $15 million in Q2, and margins decreased from 19% to 10% [40][41] - The manufacturing segment's revenues decreased to $48 million from $56 million in Q2, with adjusted EBITDA of $4 million compared to $7 million in Q2 [41] Market Data and Key Metrics Changes - The U.S. onshore completions market is experiencing cautious capital deployment, leading to increased calendar white space and operational inefficiencies [7][12] - The natural gas sector's outlook remains favorable, driven by expanding LNG export capacity and rising power demand, which are expected to support improved completions fundamentals in 2026 [12][23] Company Strategy and Development Direction - The company is prioritizing dedicated fleets paired with operators conducting more robust, less volatile programs to build a sustainable and resilient business model [7][21] - A comprehensive cost management strategy has been implemented, targeting $100 million in annualized savings by the end of Q2 2026, with specific savings identified across COGS, SG&A, and capital expenditures [9][36] - The company is focusing on maintaining financial flexibility and building a resilient platform through strategic partnerships and capital raises, including a recent equity offering that netted approximately $80 million [14][22] Management's Comments on Operating Environment and Future Outlook - Management noted that while Q3 presented challenges, there are signs of stabilization in October, with some deferred programs returning to the calendar [11][27] - The company expects global supply imbalances to normalize in 2026 as operators will need to gradually accelerate completion activity to overcome natural production decline [11][12] - Management remains optimistic about the future, citing the potential for meaningful supply-demand tightening in the hydraulic fracturing market [12][21] Other Important Information - The company has identified initial savings of $100 million at the midpoint on an annualized basis, with $35 million-$45 million driven by labor reductions already implemented [9][36] - The company is pursuing up to $200 million in incremental capital through various means, including senior secured notes and non-collateralized asset sales [22][38] Q&A Session Summary Question: How does the company approach pricing in the current market? - The company focuses on reliable, consistent programs and expects spot pricing to return to historical levels where it is typically higher than committed work [51][56] Question: What is the current portion of dedicated versus spot work? - Approximately 80% of the current work is dedicated, with expectations to shift to high 90s by 2026 [67][70] Question: Are the cost cuts considered permanent? - All cost cuts are characterized as sustainable, with a focus on maintaining the right number of employees and optimizing maintenance programs [76][79] Question: What is the outlook for the proppant production segment? - The company anticipates improved volumes and pricing in the Haynesville and South Texas regions, contributing positively to the proppant segment's performance [95] Question: What is the current capacity and attrition expected? - The company has high utilization on E fleets and dual fuel programs, with expectations for continued demand in these areas [108]

Group 1 - U.S. stock futures are higher, with Nasdaq futures gaining approximately 1.5% [1] - Monday.Com Ltd is expected to report quarterly earnings of 88 cents per share, an increase from 85 cents per share year-over-year [2] - The consensus estimate for monday.com's quarterly revenue is $312.26 million, up from $251 million a year earlier [2] Group 2 - Monday.Com shares fell 2.6% to $184.70 in pre-market trading [2] - Metsera Inc shares dipped 15% to $70.68 in pre-market trading following Pfizer's $10 billion acquisition deal [4] - Ionis Pharmaceuticals Inc declined 11.5% to $65.00 after disclosing results from pivotal Phase 3 studies [4] - Other companies such as UniQure NV, Oscar Health Inc, Centene Corp, and Immunovant Inc also experienced declines in pre-market trading [4]

Group 1 - U.S. stock futures are higher, with Nasdaq futures gaining approximately 1.5% on Monday [1] - Monday.Com Ltd is expected to report quarterly earnings of 88 cents per share, an increase from 85 cents per share in the previous year [2] - The consensus estimate for monday.com's quarterly revenue is $312.26 million, up from $251 million a year earlier [2] Group 2 - Monday.Com shares fell 2.6% to $184.70 in pre-market trading [2] - Metsera Inc shares dipped 15% to $70.68 after Pfizer secured a $10 billion deal to acquire the company [4] - Ionis Pharmaceuticals Inc declined 11.5% to $65.00 following the disclosure of pivotal Phase 3 study results [4] - Other companies such as UniQure NV, Oscar Health Inc, Centene Corp, and Immunovant Inc also experienced declines in pre-market trading [4]

Financial Performance - Total revenue for Q3 2025 was $403 million, down from $502 million in Q2 2025, representing a decrease of approximately 20%[7] - Net loss for Q3 2025 was $92 million, an improvement from a net loss of $107 million in Q2 2025[7] - Adjusted EBITDA for Q3 2025 was $41 million, which is 10% of revenue, compared to $79 million or 16% of revenue in Q2 2025[7] - Total revenues for Q3 2025 were $403.1 million, a decrease from $501.9 million in the prior quarter, with stimulation services generating $342.9 million[34] - Adjusted EBITDA for the three months ended September 30, 2025, was $40.9 million, down from $78.6 million in the previous quarter[34] - Free cash flow for the three months ended September 30, 2025, was negative $29.2 million, compared to positive $54.4 million in the prior quarter[36] - The adjusted EBITDA for the nine months ended September 30, 2025, totaled $249.0 million, compared to $430.3 million for the same period in the previous year[34] Segment Performance - The Stimulation Services segment generated revenues of $343 million in Q3 2025, resulting in an Adjusted EBITDA of $20 million and a margin of 6%, down from $432 million and a margin of 12% in Q2 2025[9] - The Proppant Production segment reported revenues of $76 million in Q3 2025, with an Adjusted EBITDA of $8 million and a margin of 10%, compared to $78 million and a margin of 19% in Q2 2025[10] - The company expects fourth quarter profitability in the Proppant Production segment to improve compared to Q3 2025, driven by enhanced operational efficiency[6] - Approximately 73% of the Proppant Production segment's revenue was intercompany during Q3 2025[10] - ProFrac's proppant production segment generated revenues of $76.4 million for the three months ended September 30, 2025, compared to $77.5 million in the previous quarter[34] Financial Position - Total debt outstanding as of September 30, 2025, was $1.07 billion, with net debt of $1.04 billion[15] - The company’s total debt as of September 30, 2025, was $1,070.2 million, a slight decrease from $1,109.0 million at the end of the previous year[35] - ProFrac Holding Corp. had a total stockholders' equity of $953.9 million as of September 30, 2025, down from $1,076.1 million at the end of 2024[30] - Total assets decreased to $2,742.4 million as of September 30, 2025, down from $2,988.1 million at the end of 2024[30] - Total liabilities decreased to $1,721.1 million as of September 30, 2025, from $1,848.5 million at the end of 2024[30] Cash Flow and Expenditures - Cash flows from operating activities for Q3 2025 were $4.6 million, compared to $98.2 million in Q3 2024[32] - The company reported a net cash used in investing activities of $33.8 million for Q3 2025[32] - The Company expects capital expenditures for 2025 to be between $160 million and $190 million, a reduction of approximately $25 million from previous guidance[14] - The Company anticipates annualized cash savings of $85 to $115 million by the end of Q2 2026 through operational efficiency and cost optimization measures[4] Losses and Expenses - Operating loss for Q3 2025 was $78.8 million, compared to an operating loss of $4.3 million in Q3 2024[31] - Net loss attributable to ProFrac Holding Corp. for Q3 2025 was $100.9 million, compared to a net loss of $45.2 million in Q3 2024[31] - The company incurred $103.0 million in depreciation, depletion, and amortization for Q3 2025[32] - The company incurred $4.9 million in litigation expenses for the three months ended September 30, 2025[33]