Investment Thesis
ProFrac is in severe financial distress with negative operating income (-$46.4M), deteriorating profitability (net margin -18.6%), and negative free cash flow (-$31.4M). The company cannot service its $866.7M debt burden with an interest coverage ratio of -1.4x and faces acute liquidity risk with a current ratio of 0.82x and only $33.5M in cash.
Strengths
- Asset base of $2.6B provides potential restructuring value
- Positive operating cash flow of $9.3M despite losses
- Stockholders equity of $617.2M provides some solvency cushion
Risks
- Acute liquidity crisis: current ratio 0.82x and quick ratio 0.58x indicate inability to meet short-term obligations
- Negative free cash flow of -$31.4M with company actively burning cash
- Debt service unsustainable: negative interest coverage (-1.4x) and $866.7M long-term debt cannot be serviced from operations
- Revenue decline of -11.4% YoY in cyclical industry with worsening profitability trends (-18.6% net margin)
- Covenant violation risk and potential forced restructuring or bankruptcy
Key Metrics to Watch
- Quarterly free cash flow trajectory and path to cash flow breakeven
- Debt covenant compliance and refinancing/restructuring announcements
- Revenue stabilization and operating margin recovery
- Cash balance trend and liquidity runway in months
- Working capital management and current ratio improvement
Financial Metrics
Revenue
449.6M
Net Income
-83.5M
EPS (Diluted)
$-0.47
Free Cash Flow
-31.4M
Total Assets
2.6B
Cash
33.5M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-10.3%
Net Margin
-18.6%
ROE
-13.5%
ROA
-3.3%
FCF Margin
-7.0%
Balance Sheet & Liquidity
Current Ratio
0.82x
Quick Ratio
0.58x
Debt/Equity
1.40x
Debt/Assets
69.2%
Interest Coverage
-1.41x
Long-term Debt
866.7M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-09T08:37:34.869804 |
Data as of: 2026-03-31 |
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