ProFrac Rebounds as Margins Recover and Flotek Accelerates
Second-quarter revenue reached $498.1 million, extending a three-quarter recovery.
ProFrac Holding (ACDC), the oilfield-services provider, lifted adjusted EBITDA 28.5% from the prior quarter as stronger stimulation activity and Flotek growth helped margins recover.
The improvement extended a rebound from the second half of 2024, though results remained below year-earlier levels. Adjusted EBITDA margin returned to 14% after slipping to 12% in the first quarter, following margins of 10% in the third quarter and 14% in the fourth quarter of 2024.
Revenue rose 10.8% sequentially and slipped 0.8% from a year earlier. The net loss narrowed to $74.7 million from $80.8 million in the first quarter and $107.2 million a year earlier, while the operating loss narrowed to $37.9 million. Adjusted EBITDA reached $69.4 million, still below the year-earlier $78.6 million.
Stimulation Services revenue increased 5.5% sequentially to $429.5 million, while adjusted EBITDA rose 22.8% to $39.3 million and margin expanded to 9% from 8%. Proppant Production revenue climbed 56.5% from a year earlier to $121.3 million, though adjusted EBITDA fell to $6.3 million from $14.8 million and margin compressed to 5%.
Flotek provided the strongest growth among the disclosed businesses. Its revenue rose 40.8% sequentially to $101.8 million, adjusted EBITDA increased 69% to $19.1 million and margin widened to 19% from 15%. Intercompany revenue declined to about 58% of Flotek sales from 75%, reflecting a larger contribution from customers outside ProFrac.
Operating cash flow increased sequentially to $22.9 million, while free cash flow improved to negative $7.9 million from negative $25.2 million. Both measures remained below the year-earlier quarter, when ProFrac generated $96.7 million of operating cash flow and $54.4 million of free cash flow. Capital spending declined to $31.7 million, and the company maintained its 2025 guidance of $155 million to $185 million including Flotek.
For the third quarter, ProFrac expects Stimulation Services results to improve again as pricing increases and utilization remains steady. The company expects Proppant results to be approximately flat on stable volumes and flagged additional competitive pricing pressure, particularly in West Texas.
After the quarter, ProFrac replaced its $275 million revolving credit facility with a $300 million facility maturing in July 2030, with about $71 million available at closing. Ladd Wilks will resign as chief executive effective Aug. 7 and remain a director, while Matt Wilks will become chief executive and executive chairman.