ProFrac reported Q2 2025 revenue of $501.9 million, reflecting a slowdown from the prior-year period (-13.4% YoY) and a sequential decline (-16.4% QoQ). Despite a robust gross margin of 46.5% and gross profit of $233.2 million, the quarter delivered a negative net income of $105.9 million and an operating loss of $54.3 million, underscored by significant depreciation and amortization of $104.7 million and interest expense of $35.1 million. EBITDA stood at $40.7 million, yielding an EBITDA margin of about 8.1%; however, EBIT remained negative, pointing to a high fixed-cost base and substantial non-cash charges that weigh on reported earnings.
The quarter showcased a pronounced swing in gross profit versus the prior quarter, with gross margin expanding to the mid-40s percentage range (from roughly the low-teens in Q1 2025), driven by an improved product mix and the scale of high-margin stimulation-related activities. Yet the bottom line was pressured by non-operating costs and heavy depreciation tied to an asset-intensive business model. Liquidity metrics remained tight with a current ratio of 0.91, quick ratio of 0.62, and cash ratio of 0.0406, highlighting working capital sensitivity in a cyclical market. Cash flow from operations per share was $0.63, and free cash flow per share matched that level, indicating that ongoing depreciation continues to support cash generation even as net income remains negative.
From a balance-sheet standpoint, debt remains elevated: total debt to capitalization at 56.6% and long-term debt to capitalization at 50.2%, with an interest-coverage ratio of negative 1.55x. The company trades with negative earnings metrics (P/E negative) but displays stronger valuation signals on asset-light multiples such as price-to-book (~1.32x) and price-to-sales (~2.48x). In sum, the quarter signals near-term earnings volatility but shows pockets of margin strength; the ultimate investor takeaway rests on the trajectory of oilfield activity, utilization of capacity, and the company’s ability to convert EBITDA into sustainable free cash flow going into 2H 2025.