ProFrac Holding Corp. (ACDC)

Price$5.15Cached quoteAs of 2026-09-05 13:13 UTC

AI: Fair-priced

Price checkThe equity valuation is low relative to revenue but less obviously cheap after accounting for ProFrac's heavy debt load, negative earnings and negative trailing free cash flow.

ProFrac's market capitalization is about $0.88 billion, while enterprise value is approximately $2.1 billion because net debt remains substantial. Trailing revenue is about $1.79 billion and trailing EBITDA about $209 million, implying roughly 1.2 times enterprise value to sales and about 10 times enterprise value to EBITDA. Those multiples leave meaningful upside if pressure-pumping margins recover, but the balance-sheet risk and capital intensity prevent the depressed equity value from being an unambiguous bargain.

Big pictureNorth American completion activity remains cyclical and challenging, but second-quarter utilization, efficiency and pressure-pumping pricing showed signs of improvement.

Second-quarter revenue rose sequentially to $498.1 million from $449.6 million and Adjusted EBITDA improved to $69 million from $54 million, lifting the margin to 14%. Stimulation Services generated $429.5 million of revenue and $39.3 million of Adjusted EBITDA. Management expects third-quarter stimulation performance to improve further through pricing increases and steady utilization and said customer RFP discussions began unusually early, suggesting tighter high-specification frac capacity into 2027. Proppant conditions are weaker: competitive sand pricing remains particularly intense in West Texas even as Haynesville and South Texas offer better opportunities.

Business strengthVertical integration across pumping, sand, manufacturing and Flotek can improve fleet economics and supply reliability, but leverage, restricted liquidity and ongoing capital needs remain major constraints.

ProFrac's model combines hydraulic-fracturing fleets with internally supplied proppant, manufactured components and Flotek chemistry and data services. In the second quarter, 87% of Proppant Production revenue, 82% of Manufacturing revenue and 58% of Flotek revenue were intercompany, illustrating the depth of that integration. The tradeoff is capital intensity: first-half capital expenditures were $72.4 million, and full-year spending is expected at $155 million to $185 million. Management reported roughly $1.08 billion of net principal debt and only $72 million of usable liquidity at June, excluding inaccessible Flotek cash. Second-quarter free cash flow remained negative despite improved EBITDA.

What could change the storySustained frac pricing recovery and higher fleet utilization could create strong operating leverage, while another shale slowdown or continued sand-price pressure could make the debt burden increasingly difficult.

The bull case is that industry equipment attrition tightens available high-specification frac capacity, allowing ProFrac to raise prices, keep fleets working steadily and capture more value from vertically integrated sand, manufacturing and chemistry. Fleet upgrades and cost optimization could then convert EBITDA improvement into positive free cash flow and deleveraging. The bear case is that oil and gas producers reduce completion budgets, utilization falls, West Texas sand pricing weakens further or planned technology and fleet investments fail to earn adequate returns. With more than $1 billion of principal debt, significant interest and capital-spending requirements and limited unrestricted liquidity, even a moderate cyclical downturn could pressure the balance sheet. The new revolving facility improves flexibility but does not remove the underlying leverage.

AI: News

Second-quarter margins improved as frac utilization and pricing strengthenedProFrac delivered a sequential improvement in revenue, Adjusted EBITDA and cash flow and expects additional stimulation gains in the third quarter.

Second-quarter revenue increased 11% sequentially and Adjusted EBITDA rose to $69 million, with its margin increasing to 14%. Stimulation Services benefited from stronger operating efficiency, while management said pricing increases were beginning to layer into the third quarter and utilization should remain steady. Proppant Production remained under pressure from competitive sand pricing, particularly in West Texas.

New revolving facility extends funding flexibilityProFrac refinanced its prior asset-based revolver with a larger facility that pushes the scheduled maturity to 2030.

Effective July 1, ProFrac entered into a new senior secured asset-based revolving facility with a maximum commitment of $300 million and a potential additional $25 million accordion. The facility replaced the previous revolver and matures in July 2030. At inception, borrowing-base limits left approximately $71 million of remaining availability. The refinancing reduces near-term facility-maturity risk but carries floating-rate borrowing costs and leaves the broader debt burden substantial.

Matt Wilks assumed the CEO role in leadership transitionProFrac consolidated executive leadership under Executive Chairman Matt Wilks while former CEO Ladd Wilks moved to the board.

Effective August 7, Ladd Wilks stepped down as chief executive and became a director, replacing Sergei Krylov. Matt Wilks added the CEO position to his Executive Chairman role. The transition comes as ProFrac pursues cost optimization, fleet upgrades and tighter capital discipline during an uncertain shale-services cycle, making execution on pricing, utilization and leverage reduction important measures of the new leadership structure.

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Revenue

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Net income

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Free cash flow

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020
Revenue	$1.94B	$2.19B	$2.63B	$2.43B	$768.4M	$547.7M
Gross profit	$487.2M	$695.8M	$889.9M	$0	$0	$0
Gross margin	25.09%	31.76%	33.84%	0.00%	0.00%	0.00%
Operating expenses	$2.17B	$2.25B	$2.46B	$2.01B	$786.4M	$642.7M
Operating income	−$225.8M	−$60.4M	$166.6M	$412.4M	−$18.0M	−$95.0M
Operating margin	−11.63%	−2.76%	6.33%	17.00%	−2.34%	−17.35%
EBITDA	$190.5M	$381.8M	$605.0M	$679.7M	$122.7M	$55.7M
EBITDA margin	9.81%	17.43%	23.00%	28.02%	15.97%	10.17%
Net income	−$369.0M	−$215.1M	−$97.7M	$91.5M	−$42.4M	−$118.5M
Net profit margin	−19.00%	−9.82%	−3.71%	3.77%	−5.52%	−21.64%
Basic EPSper basic share	-$2.22	-$1.38	-$0.82	$2.06	—	—
Diluted EPSper diluted share	-$2.22	-$1.38	-$0.82	$2.06	—	—

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Owners

Reported shareholders

Ownership data is not available for this listing yet.

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys36$51.80M disclosed value

Sells (SEC code S)1$1.00M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Sep 8, 2025Form 4	Wilks MatthewExecutive Chairman	BuyClass A common stock, par value $0.01 per share · indirect	18.3K	$3.83	$70.1K	422.1K
Sep 8, 2025Form 4	Wilks MatthewExecutive Chairman	BuyClass A common stock, par value $0.01 per share · indirect	25.0K	$3.78	$94.5K	403.8K
Aug 14, 2025Form 4	Wilks Dan H. +2TenPercentOwner	BuyClass A common stock, par value $0.01 per share	2.50M	$4.00	$10.00M	82.39M
Aug 14, 2025Form 4	Wilks FarrisTenPercentOwner	BuyClass A common stock, par value $0.01 per share	2.50M	$4.00	$10.00M	3.67M
May 16, 2025Form 4	THRC Management, LLC +2TenPercentOwner	BuyClass A common stock, par value $0.01 per share	207.2K	$6.25	$1.29M	79.86M