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The payment obligations under the Tax Receivable Agreement are our obligations and not obligations of ProFrac LLC, and we expect that the payments required to be made under the Tax Receivable Agreement will be substantial. Estimating the amount and timing of payments that may become due under the Tax Receivable Agreement is by its nature imprecise.
The business is unprofitable at the operating level (-11.63% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue declined 11.4% YoY. Margins deteriorated 8.9pp alongside, both lines moving the wrong way.
Free cash flow declined 83% versus the prior year, cash generation momentum has weakened. ROIC dropped from -2.04% to -8.47%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$1.79B
▼ -11.4% YoY
Net Income (TTM)
-$435M
▼ -71.5% YoY
Op. Margin
-16.09%
▼ -8.9pp YoY
ROIC
-11.53%
▼ -6.4pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$2M
▼ -82.5% YoY
Op. Cash Flow (TTM)
$160M
▼ -48.4% YoY
Net Debt
$1.17B
Cash & Equiv.
$34M
5Y CAGR: +28.8%
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