ProFrac Free Cash Flow Turns Positive After Uneven Quarter

The Tip Desk · November 11, 2026 · 3 min read

The hydraulic-fracturing holding company posted $511 million of third-quarter revenue and $14 million of free cash flow as Stimulation Services revenue slipped to $421 million.

ProFrac Holding Corp. (ACDC) reported free cash flow of $14 million in the third quarter ended September 30, 2026, reversing an $8 million outflow in the second quarter, as operating cash generation more than doubled and capital spending rose.

Total revenue was $511 million, up from $498 million in the second quarter after a larger sequential step from $450 million in the first quarter. Adjusted EBITDA was $65 million, or 13% of revenue, down from $69 million and a 14% margin in the second quarter. Net loss was $74 million, in line with a $75 million loss in the second quarter.

Chief Executive Officer and Executive Chairman Matt Wilks said third-quarter activity was uneven because of unanticipated white space and downtime, and that pricing improved by a single digit in the quarter. He said fourth-quarter utilization improved with a more efficient calendar and that, given limited equipment availability and minimal signs of budget exhaustion, the company expects less seasonality next quarter than it has historically experienced.

Stimulation Services, the largest reportable segment, generated $421 million of revenue and $37 million of Adjusted EBITDA, a 9% margin. That revenue was below $430 million in the second quarter. Proppant Production revenue fell to $101 million from $121 million, with Adjusted EBITDA of $2 million and a 2% margin, down from $6 million and a 5% margin. About 79% of Proppant Production revenue was intercompany.

Manufacturing revenue was $53 million, with $6 million of Adjusted EBITDA and an 11% margin. Flotek Industries generated $117 million of revenue and $22 million of Adjusted EBITDA, a 19% margin, with about 51% of Flotek revenue intercompany. Other Business Activities contributed $4 million of revenue and $1 million of Adjusted EBITDA.

Net cash provided by operating activities was $51 million, compared with $23 million in the second quarter. Cash capital expenditures were $40 million, up from $32 million. For full-year 2026, ProFrac updated its capital-expenditure expectation to $160 million to $180 million, including Flotek’s plan; excluding Flotek, the company expects $145 million to $165 million.

In Stimulation Services, the company expects fourth-quarter 2026 results to improve sequentially, reflecting continued price increases and steady activity levels, partially offset by customary year-end seasonality. In Proppant Production, it expects fourth-quarter results to improve relative to the third quarter, reflecting recovering throughput at West Texas operations. Pricing improvements in South Texas are beginning to materialize, the company said, while West Texas remains highly competitive. 2027 contracting discussions remain ongoing.

Total principal debt outstanding was approximately $1.05 billion as of September 30, 2026; net debt was approximately $1.01 billion. Cash and cash equivalents were about $44 million, of which about $25 million related to Flotek and was not accessible by the company. Liquidity was about $97 million, including about $19 million of cash excluding Flotek and $79 million of availability under its asset-based credit facility.

In July, ProFrac replaced a $275 million asset-based revolving credit facility with a new $300 million facility. In September, it amended its Alpine term loan to extend maturity to February 2030 and reduce scheduled amortization to zero through the first quarter of 2028, and permitted a twelve-month option to pay a portion of interest in kind. In a related transaction, $60 million of term loans held by affiliated lenders were repaid and cancelled in exchange for Flotek common stock held by a company subsidiary. Flotek entered a $75 million senior secured term loan maturing in 2031.

The company said it is pursuing initiatives to enhance liquidity and reduce indebtedness, including contemplated dispositions of certain non-core assets, with timing and proceeds subject to definitive agreements and other closing conditions.