NASDAQ$ACDC

ProFrac Holding Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

ProFrac's third quarter results were announced, revealing a decrease in revenue and a net loss, but also highlighting progress in strategic initiatives and positioning for future growth.

ProFrac Holding Corp. reported a decrease in revenue to $574.2 million, a net loss of $17.9 million, and an adjusted EBITDA of $149.3 million for Q3 2023. The company focused on right-sizing its fleet and support structure, and is optimistic about 2024 due to dedicated agreements and increased utilization of mining assets.

  • Revenue decreased to $574.2 million due to lower fleet count and material sales.
  • Net loss was $17.9 million, impacted by fleet adjustments and support structure changes.
  • Adjusted EBITDA decreased to $149.3 million.
  • Free cash flow was $72.6 million, contributing to a reduction in net debt.

Headline financials

Total Revenue

$574M

Previous: $697M-17.6%
EPS (adj)

-$0.21

Previous: $1.09-119.3%
Capital Expenditures

-$234M

Previous: -$239M+2.3%
Free Cash Flow

-$258M

Previous: -$195M-32.8%
Net Income

-$24.5M

Previous: $44.9M-154.5%
Operating Income

$20.5M

Previous: $169M-87.9%
Gross Profit

-$480M

Previous: $0.00
Cash & Equivalents

$25.1M

Previous: $64.7M-61.2%
Total Assets

$3.22B

Previous: $1.98B+62.8%
Stock-Based Comp

$4.4M

Previous: $12.9M-66.0%

Revenue & EPS history

ProFrac · Revenue · Quarterly

$574M

Q3 2023-17.6%vs Q3 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

ProFrac · $632M total across 3 segments · Q3 2023

  • Stimulation services
    $490M-26.8%
  • Proppant production
    $98.4M+300.0%
  • Manufacturing
    $43.8M-10.1%

Forward guidance

ProFrac anticipates an improved 2024, driven by dedicated agreements with operators, increased fleet count, and enhanced utilization of mining assets through third-party contracts.

Tailwinds

  • Focus on dedicated agreements with operators in 2024.
  • Expectation to increase fleet count in Q1, with commitments already in place.
  • Marketing all eight mines for the first time, anticipating positive results.
  • Anticipation of more contracts with third parties, increasing mining asset utilization.
  • Confidence that 2024 will be much improved over 2023.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 15 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-0.4%

Avg return

Earnings day

+1.3%

Avg return

5 days after

+7.2%

Avg return

30 days after

53%

8 / 15 earnings

Positive

+19.6%

Q3 2024

Best reaction

-21.6%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.5%+8.4%+5.5%
Q4 2025+18.6%+15.5%+0.3%
Q3 2025-20.1%-24.1%-9.9%
Q1 2025-7.3%+8.3%+94.5%
Q4 2024+0.6%+10.9%-21.1%
Q3 2024+19.6%+11.7%+32.2%
Q2 2024-19.9%-12.4%-10.6%
Q1 2024+12.0%+22.8%+23.1%
Q4 2023-1.8%-1.4%+6.6%
Q3 2023-4.9%+6.0%-5.0%
Q2 2023-11.3%-18.3%-12.3%
Q1 2023+8.2%+2.9%+25.5%
Q4 2022-21.6%-24.4%-20.5%
Q3 2022+7.3%+5.6%-11.9%
Q2 2022+13.7%+7.5%+11.0%
Q1 2022
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Q4 2020
Q3 2020
Q2 2020
Q1 2020

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