ProFrac Q2 2026 Earnings: Sequential EBITDA and Cash Flow Improve

ProFrac Holding Corp. (NASDAQ: ACDC) reported second-quarter 2026 revenue of $498.1 million, down about 0.8% from $501.9 million a year earlier, while its GAAP net loss narrowed to $74.7 million from $107.2 million. Compared with Q1 2026, adjusted EBITDA rose to $69 million from $54 million and operating cash flow increased to $22.9 million from $9.3 million, although free cash flow remained negative.

Core financial results

The quarter showed clear sequential improvement across revenue, adjusted EBITDA and cash generation. Management attributed the progress partly to a broadly stronger market and operating discipline, but the company remained loss-making on a GAAP basis.

Adjusted EBITDA margin increased by two percentage points from Q1, while lower capital spending helped reduce the free cash flow deficit.

Adjusted EBITDA and free cash flow are non-GAAP measures. ProFrac defines free cash flow as operating cash flow less property and equipment investment plus proceeds from asset sales.

Business and segment performance

Stimulation Services remained ProFrac’s largest segment by both revenue and adjusted EBITDA. Flotek recorded the highest adjusted EBITDA margin at 19%, while Proppant Production had the lowest at 5%.

A large portion of revenue in Proppant Production, Manufacturing and Flotek was intercompany. As a result, the segment revenue figures cannot be added together to arrive at consolidated revenue.

Lower overhead narrowed the loss despite direct-cost pressure

ProFrac’s year-over-year operating improvement did not come from stronger direct-cost economics. Revenue less cost of revenues, excluding depreciation, depletion and amortization, declined to $110.0 million from $127.2 million. The corresponding calculated margin fell to approximately 22.1% from 25.3%, as cost of revenues increased to $388.1 million even though revenue declined slightly.

The operating loss nevertheless narrowed to $37.9 million from $58.0 million. Lower selling, general and administrative expense, lower depreciation, depletion and amortization, and a reduction in other operating expense more than offset the weaker direct-cost margin. Other operating expense fell to $7.2 million from $29.0 million, while SG&A declined to $43.7 million from $51.4 million.

Cash flow and balance sheet

Operating cash flow improved sequentially but remained well below the $96.7 million generated in Q2 2025. The main difference was working capital: changes in operating assets and liabilities used $12.6 million in Q2 2026 after contributing $68.8 million a year earlier. Depreciation, depletion and amortization of $97.0 million helped offset the GAAP net loss, but free cash flow still remained approximately $8 million negative after capital investment.

ProFrac ended June with approximately $1.10 billion of principal debt and $1.08 billion of net debt, a non-GAAP measure. Cash and cash equivalents were approximately $19 million, including about $5 million held by Flotek that was not accessible to ProFrac. Excluding Flotek, the company reported approximately $72 million of liquidity, consisting of $14 million of cash and $58 million of availability under its asset-based credit facility.

On July 1, ProFrac replaced its $275 million revolving credit facility with a new $300 million facility. Its eligible borrowing base initially limited maximum availability to approximately $243 million; with $173 million borrowed, about $71 million remained available.

Guidance

ProFrac maintained its quantitative full-year 2026 capital expenditure outlook. For Q3, the company expects Stimulation Services to improve from Q2 because of pricing increases and steady utilization, while Proppant Production is expected to remain approximately flat on stable volumes.

Management view and leadership transition

Management said demand for higher-specification hydraulic fracturing fleets is increasing after several years of industry equipment attrition. ProFrac is implementing pricing increases for Q3 and expects an earlier-than-usual request-for-proposal season, while continuing its fleet upgrade and cost optimization programs.

Conditions are less favorable in proppant production, where the company is facing additional competitive pricing pressure, particularly in West Texas. ProFrac is seeking operational improvements and stronger activity in markets including the Haynesville and South Texas.

Effective August 7, 2026, Ladd Wilks will step down as CEO and remain with ProFrac as a director. Matt Wilks will assume the combined roles of CEO and executive chairman.

Risks investors should watch

• High leverage and limited accessible cash: ProFrac reported approximately $1.08 billion of net debt compared with about $19 million of cash, including Flotek cash that is unavailable to the parent company.
• Cash flow remains sensitive to working capital and capital spending: Operating cash flow fell substantially from the prior-year quarter, and free cash flow remained negative despite lower capital expenditures.
• Proppant pricing pressure: Additional competition in West Texas is limiting the segment’s near-term improvement, with management expecting approximately flat Q3 results.
• Execution of the stimulation outlook: Expected Q3 improvement depends on pricing increases, steady utilization and successful deployment of upgraded high-specification fleets.
• Leadership transition: The CEO change adds an execution consideration as the company pursues cost optimization, fleet upgrades and refinancing-related priorities.

Summary

ProFrac’s Q2 2026 results improved sequentially, with higher revenue, a wider adjusted EBITDA margin and better operating cash flow. Year over year, however, weaker direct-cost economics and a large working-capital reversal showed that the recovery remains incomplete. The main follow-up points are whether stimulation pricing produces the expected Q3 improvement, whether proppant competition remains contained and whether ProFrac can improve free cash flow while managing its substantial debt load.