{"success":true,"data":{"pressRelease":{"id":"32341","rtpr_id":"nPn3hdyDFa","ticker":"SND","exchange":"NASDAQ","all_tickers":["SND"],"title":"Smart Sand, Inc. Announces First Quarter 2026 Results","author":"PR Newswire","published_at":"2026-05-12T20:10:00.104Z","article_body":"Smart Sand, Inc. Announces First Quarter 2026 Results\n\nPR Newswire\n\nYARDLEY, Pa., May 12, 2026\n\n * 1Q 2026 revenue of $93.1 million\n * 1Q 2026 net loss of $(3.9) million\n * 1Q 2026 cash flow provided by operations of $3.0 million\n * 1Q 2026 contribution margin $13.2 million\n * 1Q 2026 Adjusted EBITDA of $3.8 million\n * 1Q 2026 free cash flow of $0.8 million\nYARDLEY, Pa., May 12, 2026 /PRNewswire/ -- Smart Sand, Inc. (NASDAQ: SND) (the\n\"Company\" or \"Smart Sand\"), a leading supplier of premium Northern White frac\nsand and industrial sand and a proppant logistics solutions provider, today\nannounced results for the first quarter of 2026.\n\n(https://mma.prnewswire.com/media/2359636/Smart_Sand_Logo.html)\n\n\"Smart Sand delivered another strong quarter of operating and financial\nperformance,\" said Charles Young, Smart Sand's Chief Executive Officer. \"The\nfirst quarter was our fourth consecutive quarter with more than 1.4 million\ntons of sand sold, and we set a quarterly sales-volume record at just under\n1.5 million tons. During the quarter, we generated positive free cash flow,\nand year to date through today we have returned approximately $5.7 million to\nshareholders through stock repurchases and dividends. During the quarter, we\nsaw increasing sales activity in the Appalachian Basins and consistent\nactivity in the Bakken Formation and the Montney and Duvernay shales in\nCanada.\"\n\n\"We remain focused on being the premier provider of Northern White sand in\nNorth America,\" Young continued. \"Our strategic investments in our Blair,\nWisconsin facility and our two terminals in Ohio are key drivers of increasing\nsales activity in the Utica Shale and across Canadian basins. We have\npositioned Smart Sand to benefit from expected long-term growth in North\nAmerican natural gas demand driven by expanding LNG export capacity and\nincreasing gas-fired power generation to support AI data center electricity\nneeds.\"\n\n\"We continue to expand our Industrial Products Solutions business, primarily\nthrough our Ottawa, Illinois facility. Industrial sales volumes in the first\nquarter of 2026 were consistent with the fourth quarter of 2025, and we\ncurrently expect industrial sales volumes to increase year over year,\" Young\nsaid.\n\n\"In the first quarter, we successfully put our new SmartSystem design to work\nin the field. We believe the reconfigured design enables us to more\nefficiently and cost effectively meet the growing market demand for higher\ndaily sand volumes used in oil and gas well completions. We are seeing strong\ncustomer interest in the new SmartSystem configuration. However, consistent\nwith our focus on capital discipline, we want to see customer commitments for\nnew systems before making incremental investments in additional SmartSystem\nfleets.\"\n\n\"Smart Sand is committed to growing our leading Northern White sand franchise\nwhile continuing to return capital to shareholders.\" said Charles Young. \"We\nwill remain true to our core operating principles of maintaining strong\nliquidity, prudent debt levels and positive annual cash flow. Our liquidity\nposition is strong, with healthy cash balances and full availability under our\n$30 million credit facility. We expect to generate positive free cash flow in\n2026, with sales volume growth in the 5% to 10% range over 2025 tons sold.\"\n\nFirst Quarter 2026 Highlights\n\nIn the first quarter of 2026, tons sold totaled approximately 1,492,000,\ncompared to 1,478,000 tons in the fourth quarter of 2025 and 1,069,000 tons in\nthe first quarter of 2025, reflecting a 1% sequential increase and a 40%\nyear-over-year increase.\n\nRevenues in the first quarter of 2026 were $93.1 million, compared to $86.0\nmillion in the fourth quarter of 2025 and $65.6 million in the first quarter\nof 2025. The increase in revenue sequentially and year over year was primarily\ndriven by higher sales volumes and higher average selling prices.\n\nCost of goods sold increased to $87.0 million for the first quarter of 2026,\nup from $74.8 million for the fourth quarter of 2025 and $62.8 million for the\nfirst quarter of 2025. The increase sequentially was primarily due to higher\nproduction and freight costs on similar volumes. The higher production costs,\ncompared to the previous quarter, were primarily driven by increased drawdown\nand expensing of inventory to meet sales volumes levels for the first quarter\n2026. The higher freight expense, compared to the fourth quarter 2025, was due\nprimarily to the location mix of sand sales. The increase over the prior year\nperiod was primarily due to an increase in sales volumes.\n\nGross profit for the first quarter of 2026 was $6.1 million compared to $11.2\nmillion in the fourth quarter of 2025 and $2.8 million in the first quarter of\n2025. Gross profit decreased sequentially due to higher production and freight\ncosts and increased over the prior year period due to the increase in sales\nvolumes.\n\nOperating expenses for the first quarter of 2026 were $11.0 million, down from\n$13.9 million for the fourth quarter of 2025 and up from $9.8 million for the\nfirst quarter of 2025. Selling, general and administrative costs were higher\nin the fourth quarter of 2025 due to higher wages of $2.9 million related to\nincreased incentive compensation in the quarter and a $1.0 million payment to\none of our utility providers in connection with planned growth at our Oakdale\nfacility. Operating expenses increased from the first quarter of 2025\nprimarily due to increased wages and royalties associated with increased sales\nvolumes.\n\nTotal other expenses for the first quarter of 2026 were $0.2 million,\nconsistent with both the fourth quarter of 2025 and the first quarter of 2025.\n\nIn the first quarter of 2026, the Company recorded a net loss of $(3.9)\nmillion, or $(0.10) per basic and diluted share. The Company had net income of\n$1.2 million, or $0.03 per basic and diluted share, for the fourth quarter of\n2025 and a net loss of $(24.2) million, or $(0.62) per basic and diluted\nshare, for the first quarter of 2025. The fluctuations in net income are\nprimarily driven by non-cash deferred income tax expense. Income tax expense /\n(benefit) often distorts the Company's results of operations due primarily to\ndeferred tax variances. The Company is required to record its interim period\nincome tax expense / (benefit) in accordance with GAAP, which requires that\nthe Company estimate its full year effective tax rate and apply that rate to\nthe net income for the period. The Company's effective tax rate includes\nmodifications from the statutory rate for items such as income tax credits,\ntax depletion deduction, valuation allowance, and state apportionment changes,\namong other items. The biggest driver of the Company's income tax expense /\n(benefit) is the depletion deduction calculation, which is not directly\nrelated to the net income of the Company. This tax deduction has an equally\nlarge effect on the Company's income tax rate, which is the basis for the\nquarterly income tax expense / (benefit) calculation. The Company does not\nexpect to be a payer of federal income tax in 2026 and expects to pay an\nimmaterial amount of state income taxes in 2026. Because of the difference\nbetween income tax recorded on a GAAP basis and the cash taxes the Company\nexpects to pay, the Company uses additional non-GAAP performance measures of\ncontribution margin, Adjusted EBITDA, and free cash flow to evaluate its\nresults of operations.\n\nContribution margin in the first quarter of 2026 was $13.2 million, or $8.84\nper ton sold, compared to $18.0 million, or $12.18 per ton sold, in the fourth\nquarter of 2025 and $9.6 million, or $8.96 per ton sold, in the first quarter\nof 2025. Contribution margin was lower in the first quarter of 2026 compared\nto the fourth quarter of 2025 primarily due to increased production and\nlogistics costs. Contribution margin was higher in the first quarter of 2026\ncompared to the first quarter of 2025 due to increased sales volumes and\nhigher average selling prices.\n\nAdjusted EBITDA was $3.8 million in the first quarter of 2026 down from $7.1\nmillion in the fourth quarter of 2025 and up from $1.4 million in the first\nquarter of 2025. The decrease in Adjusted EBITDA from the fourth quarter of\n2025 is due to an increase in production and logistics costs. The increase in\nAdjusted EBITDA from the first quarter of 2025 is primarily due to an increase\nin sales volumes with slightly higher average selling prices offset by an\nincrease in production and logistics costs associated with higher sand sales.\n\nNet cash provided by operating activities in the first quarter of 2026 was\n$3.0 million, compared to $22.4 million provided in the fourth quarter of 2025\nand $8.7 million provided in the first quarter of 2025. Net cash provided by\noperating activities in the fourth quarter of 2025 included a customer\nprepayment for sand that was in deferred revenue as well as a $4.4 million\npayment received related to contractual charges for tons sold in excess of\ncertain contractual thresholds. The revenue associated with the customer\nprepayment from the fourth quarter 2025 was fully recognized in the first\nquarter of 2026.\n\nIn the first quarter of 2026, free cash flow was $0.8 million, resulting from\nnet cash provided by operating activities of $3.0 million and capital\nexpenditures of $2.2 million. The Company currently projects full year 2026\ncapital expenditures to range between $15.0 million and $20.0 million,\nexcluding potential investments in new terminals, and anticipates being free\ncash flow positive for 2026.\n\nLiquidity\n\nIn the first quarter of 2026, the Company repurchased 343,998 shares of its\ncommon stock for $1.4 million under its share repurchase program. On October\n3, 2024, the Smart Sand Board of Directors approved an eighteen month share\nrepurchase program under which the Company may purchase up to $10.0 million of\nits outstanding shares of common stock (the \"Prior Repurchase Program\"). The\nPrior Repurchase Program was completed on April 2, 2026.\n\nOn February 23, 2026, the Company's board of directors approved a share\nrepurchase program authorizing the Company to repurchase up to $20.0 million\nof its outstanding shares of common stock (the \"New Repurchase Program\"). The\nNew Repurchase Program took effect on April 3, 2026 after completion of the\nPrior Repurchase Program and will continue through April 2, 2028. The timing,\nmanner, price, and amount of any repurchases under the New Repurchase Program\nwill be determined at the Company's discretion. Purchases may be effected\nthrough open market transactions, privately negotiated transactions,\ntransactions structured through investment banking institutions, or other\nmeans. The New Repurchase Program does not obligate the Company to acquire any\nparticular amount of shares and the New Repurchase Program may be modified or\nsuspended at any time at the Company's discretion.\n\nOn April 9, 2026, the Company's board of directors declared a special dividend\nof $0.10 per share of common stock, which was paid on May 5, 2026 to\nstockholders of record at the close of business on April 22, 2026. The\ndividend payment distributed approximately $3.9 million to shareholders.\n\nThe Company's primary sources of liquidity include cash on hand, cash flow\nfrom operations, and available borrowings under the Company's FCB ABL Credit\nFacility. As of March 31, 2026, cash on hand was $19.5 million and the Company\nhad $30.0 million in undrawn availability on the FCB ABL Credit Facility.\n\nAdditional Information\n\nInvestors are invited to view the Company's Financial Statements and Investor\nPresentations at www.smartsand.com (http://www.smartsand.com) . The Company\nalso welcomes calls or emails to the Company's Chief Financial Officer, Lee\nBeckelman, with any specific questions.\n\nForward-looking Statements\n\nAll statements in this news release other than statements of historical facts\nare forward-looking statements that contain the Company's current expectations\nabout its future results, including the Company's expectations regarding\nfuture sales. The Company has attempted to identify any forward-looking\nstatements by using words such as \"expect,\" \"will,\" \"estimate,\" \"believe\" and\nother similar expressions. Although the Company believes that the\nexpectations reflected and the assumptions or bases underlying its\nforward-looking statements are reasonable, the Company can give no assurance\nthat such expectations will prove to be correct. Such statements are not\nguarantees of future performance or events and are subject to known and\nunknown risks and uncertainties that could cause actual results, events or\nfinancial positions to differ materially from those included within or implied\nby such forward-looking statements.\n\nFactors that could cause actual results to differ materially from the results\ncontemplated by such forward-looking statements include, but are not limited\nto, fluctuations in product demand, delays in the completion of certain\nexpansion and improvement projects at the Company's existing facilities or\nfailure to recognize the anticipated benefits of such projects, regulatory\nchanges, adverse weather conditions, increased fuel prices, higher\ntransportation costs, access to capital, increased competition, changes in\neconomic or political conditions, and such other factors discussed or\nreferenced in the \"Risk Factors\" section of the Company's Annual Report on\nForm 10-K for the year ended December 31, 2025, filed by the Company with\nthe U.S. Securities and Exchange Commission (\"SEC\") on February 26, 2026,\nand in the Company's Quarterly Report on Form 10-Q for the quarter ended March\n31, 2026, filed by the Company with the SEC on May 12, 2026.\n\nThe reader should not place undue reliance on the Company's forward-looking\nstatements. Any forward-looking statement speaks only as of the date on which\nsuch statement is made, and the Company undertakes no obligation to publicly\nupdate or revise any forward-looking statement, whether as a result of new\ninformation, future events, changed circumstances or otherwise, unless\nrequired by law.\n\nAbout Smart Sand\n\nSmart Sand is a fully integrated frac and industrial sand supply and services\ncompany, offering complete mine to wellsite proppant and logistic solutions to\nits frac sand customers, and a broad offering of products for industrial sand\ncustomers. The Company produces low-cost, high quality Northern White sand,\nwhich is a premium sand used as a proppant to enhance hydrocarbon recovery\nrates in the hydraulic fracturing of oil and natural gas wells. The Company's\nsand is also a high-quality product used in a variety of industrial\napplications, including glass, foundry, building products, filtration,\ngeothermal, renewables, ceramics, turf & landscaping, retail, recreation\nand more. The Company also offers logistics solutions to its customers through\nits in-basin transloading terminals and its SmartSystems wellsite storage\ncapabilities. Smart Sand owns and operates premium sand mines and related\nprocessing facilities in Wisconsin and Illinois, which have access to four\nClass I rail lines, allowing the Company to deliver products substantially\nanywhere in the United States and Canada. For more information, please visit\nwww.smartsand.com\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4687058-1&h=4178876971&u=https%3A%2F%2Fwww.smartsand.com%2F&a=www.smartsand.com)\n.\n SMART SAND, INC.\n\nCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS\n\n Three Months Ended\n March 31, 2026 December 31, 2025 March 31, 2025\n (unaudited) (unaudited) (unaudited)\n\n Revenues:\n Sand revenue $ 92,488 $ 85,065 $ 64,464\n SmartSystems revenue 623 980 1,094\n Total revenue 93,111 86,045 65,558\n Cost of goods sold:\n Sand cost of goods sold 85,842 73,714 61,673\n SmartSystems cost of goods sold 1,161 1,107 1,113\n Total cost of goods sold 87,003 74,821 62,786\n Gross profit 6,108 11,224 2,772\n Operating expenses:\n Selling, general and administrative 10,709 13,085 9,243\n Depreciation and amortization 569 578 619\n (Gain) loss on disposal of fixed asset, net (297) 264 (40)\n Total operating expenses 10,981 13,927 9,822\n Operating income (4,873) (2,703) (7,050)\n Other income (expenses):\n Interest expense, net (255) (491) (342)\n Other income 96 120 129\n Total other expenses, net (159) (371) (213)\n Loss before income tax (benefit) expense (5,032) (3,074) (7,263)\n Income tax (benefit) expense (1,172) (4,252) 16,968\n Net (loss) income $ (3,860) $ 1,178 $ (24,231)\n Net (loss) income per common share:\n Basic $ (0.10) $ 0.03 $ (0.62)\n Diluted $ (0.10) $ 0.03 $ (0.62)\n Weighted-average number of common shares:\n Basic 39,173 38,893 39,257\n Diluted 39,173 40,177 39,257\n\n \n SMART SAND, INC.\n\nCONDENSED CONSOLIDATED BALANCE SHEETS\n\n March 31, 2026 December 31, 2025\n (unaudited)\n (in thousands)\n Assets\n Current assets:\n Cash and cash equivalents $ 19,454 $ 22,551\n Accounts receivable 28,396 30,519\n Unbilled receivables 121 —\n Inventory 30,235 31,081\n Prepaid expenses and other current assets 4,824 3,991\n Total current assets 83,030 88,142\n Property, plant and equipment, net 222,361 223,254\n Operating lease right-of-use assets 25,382 23,471\n Intangible assets, net 4,094 4,292\n Other assets 798 855\n Total assets $ 335,665 $ 340,014\n Liabilities and Stockholders' Equity\n Current liabilities:\n Accounts payable $ 12,497 $ 9,427\n Accrued expenses and other liabilities 22,820 17,544\n Deferred revenue 1,041 9,838\n Current portion of long-term debt 4,749 4,366\n Current portion of operating lease liabilities 9,051 8,765\n Total current liabilities 50,158 49,940\n Long-term debt 9,156 8,657\n Long-term operating lease liabilities 15,908 14,392\n Deferred tax liabilities, net 3,206 4,188\n Asset retirement obligations 22,760 22,472\n Other non-current liabilities 359 668\n Total liabilities 101,547 100,317\n Commitments and contingencies\n Stockholders' equity\n Common stock 38 39\n Treasury stock (20,101) (17,393)\n Additional paid-in capital 190,021 189,031\n Retained earnings 64,213 68,073\n Accumulated other comprehensive loss (53) (53)\n Total stockholders' equity 234,118 239,697\n Total liabilities and stockholders' equity $ 335,665 $ 340,014\n\n \n SMART SAND, INC.CONSOLIDATED\n\nSTATEMENTS OF CASH FLOWS\n\n Three Months Ended\n March 31, 2026 December 31, 2025 March 31, 2025\n (unaudited) (unaudited) (unaudited)\n (in thousands)\n Operating activities:\n Net (loss) income $ (3,860) $ 1,178 $ (24,231)\n Adjustments to reconcile net income to net cash provided by\n operating activities:\n Depreciation, depletion and accretion of asset retirement 7,528 7,406 7,299\n obligations\n Amortization of intangible assets 199 201 198\n Loss (gain) on disposal of fixed assets (297) 264 (40)\n Amortization of deferred financing cost 64 64 46\n Deferred income taxes (982) (2,546) 16,662\n Stock-based compensation 960 864 934\n Employee stock purchase plan compensation 10 5 6\n Changes in assets and liabilities:\n Accounts receivable 2,123 13,671 13,015\n Unbilled receivables (121) — 2,408\n Inventory 629 518 (3,265)\n Prepaid expenses and other assets (721) (1,006) (1,712)\n Deferred revenue (8,797) 9,838 423\n Asset retirement obligation settlement — (92) —\n Accounts payable 1,534 209 (4,061)\n Accrued and other expenses 4,774 (8,204) 1,042\n Net cash provided by operating activities 3,043 22,370 8,724\n Investing activities:\n Purchases of property, plant and equipment (2,201) (1,998) (3,536)\n Proceeds from disposal of assets — — 1\n Net cash used in investing activities (2,201) (1,998) (3,535)\n Financing activities:\n Dividend payments to shareholders — (1,978) (7)\n Repayments of notes payable (1,188) (816) (955)\n Payments under finance leases (61) (59) (58)\n Proceeds from revolving credit facility — 2,000 11,000\n Repayment of revolving credit facility — (2,000) (11,000)\n Proceeds from equity issuance 20 — 26\n Repurchase of treasury stock from restricted stock vesting (1,238) (49) (336)\n Repurchase of treasury stock from Repurchase Program (1,472) (1) (305)\n Net cash used in financing activities (3,939) (2,903) (1,635)\n Net (decrease) increase in cash and cash equivalents (3,097) 17,469 3,554\n Cash and cash equivalents at beginning of period 22,551 5,082 1,554\n Cash and cash equivalents at end of period $ 19,454 $ 22,551 $ 5,108\n\nNon-GAAP Financial Measures\n\nContribution Margin\n\nThe Company also uses contribution margin, which is defined as total revenues\nless costs of goods sold excluding depreciation, depletion and accretion of\nasset retirement obligations, to measure its financial and operating\nperformance. Contribution margin excludes other operating expenses and income,\nincluding costs not directly associated with the operations of the Company's\nbusiness such as accounting, human resources, information technology, legal,\nsales and other administrative activities.\n\nManagement believes that reporting contribution margin and contribution margin\nper ton sold provides useful performance metrics to management and external\nusers of the Company's financial statements, such as investors and commercial\nbanks, because these metrics provide an operating and financial measure of the\nCompany's ability, as a combined business, to generate margin in excess of its\noperating cost base.\n\nGross profit is the GAAP measure most directly comparable to contribution\nmargin. Contribution margin should not be considered an alternative to gross\nprofit presented in accordance with GAAP. Because contribution margin may be\ndefined differently by other companies in the industry, the Company's\ndefinition of contribution margin may not be comparable to similarly titled\nmeasures of other companies, thereby diminishing its utility. The following\ntable presents a reconciliation of gross profit to contribution margin.\n Three Months Ended\n March 31, 2026 December 31, 2025 March 31, 2025\n (in thousands, except per ton amounts)\n Revenue $ 93,111 $ 86,045 $ 65,558\n Cost of goods sold 87,003 74,821 62,786\n Gross profit 6,108 11,224 2,772\n Depreciation, depletion, and accretion of asset retirement 7,081 6,784 6,805\n obligations included in cost of goods sold\n Contribution margin $ 13,189 $ 18,008 $ 9,577\n Contribution margin per ton $ 8.84 $ 12.18 $ 8.96\n Total tons sold 1,492 1,478 1,069\n\nEBITDA and Adjusted EBITDA\n\nEBITDA is defined as net income, plus: (i) depreciation, depletion and\namortization expense; (ii) income tax expense (benefit) and other results of\noperations based taxes; and (iii) interest expense. Adjusted EBITDA is defined\nas EBITDA, plus: (i) gain or loss on sale of fixed assets or discontinued\noperations; (ii) integration and transition costs associated with specified\ntransactions; (iii) equity compensation; (iv) acquisition and development\ncosts; (v) non-recurring cash charges related to restructuring, retention and\nother similar actions; (vi) earn-out, contingent consideration obligations;\nand (vii) non-cash charges and unusual or non-recurring charges. Adjusted\nEBITDA is used as a supplemental financial measure by management and by\nexternal users of the Company's financial statements, such as investors and\ncommercial banks, to assess:\n\n * the financial performance of the Company's assets without regard to the impact\nof financing methods, capital structure or historical cost basis of such\nassets;\n * the viability of capital expenditure projects and the overall rates of return\non alternative investment opportunities;\n * the Company's ability to incur and service debt and fund capital expenditures;\n * the Company's operating performance as compared to those of other companies in\nits industry without regard to the impact of financing methods or capital\nstructure; and\n * the Company's debt covenant compliance, as Adjusted EBITDA is a key component\nof critical covenants to the FCB ABL Credit Facility.\nManagement believes that the presentation of EBITDA and Adjusted EBITDA will\nprovide useful information to investors in assessing the Company's financial\ncondition and results of operations. Net income is the GAAP measure most\ndirectly comparable to EBITDA and Adjusted EBITDA. EBITDA and Adjusted EBITDA\nshould not be considered alternatives to net income presented in accordance\nwith GAAP. Because EBITDA and Adjusted EBITDA may be defined differently by\nother companies in the Company's industry, the Company's definitions of EBITDA\nand Adjusted EBITDA may not be comparable to similarly titled measures of\nother companies, thereby diminishing their utility. The following table\npresents a reconciliation of net (loss) income to EBITDA and Adjusted EBITDA\nfor each of the periods indicated.\n Three Months Ended\n March 31, 2026 December 31, 2025 March 31, 2025\n (in thousands)\n Net (loss) income $ (3,860) $ 1,178 $ (24,231)\n Depreciation, depletion and amortization 7,439 7,166 7,205\n Income tax expense (benefit) and other taxes (1,172) (4,252) 16,968\n Interest expense 394 657 372\n EBITDA $ 2,801 $ 4,749 $ 314\n Net (gain) loss on disposal of fixed assets (297) 264 (40)\n Equity compensation 913 784 859\n Acquisition and development costs 71 1,000 —\n Accretion of asset retirement obligations 288 269 293\n Adjusted EBITDA $ 3,776 $ 7,066 $ 1,426\n\nFree Cash Flow\n\nFree cash flow, which is defined as net cash provided by operating activities\nless purchases of property, plant and equipment, is used as a supplemental\nfinancial measure by the Company's management and by external users of the\nCompany's financial statements, such as investors and commercial banks, to\nmeasure the liquidity of its business.\n\nNet cash provided by operating activities is the GAAP measure most directly\ncomparable to free cash flow. Free cash flow should not be considered an\nalternative to net cash provided by operating activities presented in\naccordance with GAAP. Because free cash flows may be defined differently by\nother companies in the Company's industry, the Company's definition of free\ncash flow may not be comparable to similarly titled measures of other\ncompanies, thereby diminishing its utility. The following table presents a\nreconciliation of net cash provided by operating activities to free cash flow.\n Three Months Ended\n March 31, 2026 December 31, 2025 March 31, 2025\n (in thousands)\n Net cash provided by operating activities $ 3,043 $ 22,370 $ 8,724\n Purchases of property, plant and equipment (2,201) (1,998) (3,536)\n Free cash flow $ 842 $ 20,372 $ 5,188\n\n \n\nInvestor Contacts:\n\nLee Beckelman\nChief Financial Officer\n(281) 231-2660\nlbeckelman@smartsand.com (mailto:lbeckelman@smartsand.com)\n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/smart-sand-inc-announces-first-quarter-2026-results-302770064.html\n(https://www.prnewswire.com/news-releases/smart-sand-inc-announces-first-quarter-2026-results-302770064.html)\n\nSOURCE Smart Sand, Inc.\n\n\n\nPhoto: \nhttps://mma.prnewswire.com/media/2359636/Smart_Sand_Logo.jpg\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nPn3hdyDFa","title":"Smart Sand, Inc. Announces First Quarter 2026 Results","author":"PR Newswire","ticker":"SND","created":"2026-05-12T20:10:00.104Z","tickers":["SND"],"exchange":"NASDAQ","article_body":"Smart Sand, Inc. Announces First Quarter 2026 Results\n\nPR Newswire\n\nYARDLEY, Pa., May 12, 2026\n\n * 1Q 2026 revenue of $93.1 million\n * 1Q 2026 net loss of $(3.9) million\n * 1Q 2026 cash flow provided by operations of $3.0 million\n * 1Q 2026 contribution margin $13.2 million\n * 1Q 2026 Adjusted EBITDA of $3.8 million\n * 1Q 2026 free cash flow of $0.8 million\nYARDLEY, Pa., May 12, 2026 /PRNewswire/ -- Smart Sand, Inc. (NASDAQ: SND) (the\n\"Company\" or \"Smart Sand\"), a leading supplier of premium Northern White frac\nsand and industrial sand and a proppant logistics solutions provider, today\nannounced results for the first quarter of 2026.\n\n(https://mma.prnewswire.com/media/2359636/Smart_Sand_Logo.html)\n\n\"Smart Sand delivered another strong quarter of operating and financial\nperformance,\" said Charles Young, Smart Sand's Chief Executive Officer. \"The\nfirst quarter was our fourth consecutive quarter with more than 1.4 million\ntons of sand sold, and we set a quarterly sales-volume record at just under\n1.5 million tons. During the quarter, we generated positive free cash flow,\nand year to date through today we have returned approximately $5.7 million to\nshareholders through stock repurchases and dividends. During the quarter, we\nsaw increasing sales activity in the Appalachian Basins and consistent\nactivity in the Bakken Formation and the Montney and Duvernay shales in\nCanada.\"\n\n\"We remain focused on being the premier provider of Northern White sand in\nNorth America,\" Young continued. \"Our strategic investments in our Blair,\nWisconsin facility and our two terminals in Ohio are key drivers of increasing\nsales activity in the Utica Shale and across Canadian basins. We have\npositioned Smart Sand to benefit from expected long-term growth in North\nAmerican natural gas demand driven by expanding LNG export capacity and\nincreasing gas-fired power generation to support AI data center electricity\nneeds.\"\n\n\"We continue to expand our Industrial Products Solutions business, primarily\nthrough our Ottawa, Illinois facility. Industrial sales volumes in the first\nquarter of 2026 were consistent with the fourth quarter of 2025, and we\ncurrently expect industrial sales volumes to increase year over year,\" Young\nsaid.\n\n\"In the first quarter, we successfully put our new SmartSystem design to work\nin the field. We believe the reconfigured design enables us to more\nefficiently and cost effectively meet the growing market demand for higher\ndaily sand volumes used in oil and gas well completions. We are seeing strong\ncustomer interest in the new SmartSystem configuration. However, consistent\nwith our focus on capital discipline, we want to see customer commitments for\nnew systems before making incremental investments in additional SmartSystem\nfleets.\"\n\n\"Smart Sand is committed to growing our leading Northern White sand franchise\nwhile continuing to return capital to shareholders.\" said Charles Young. \"We\nwill remain true to our core operating principles of maintaining strong\nliquidity, prudent debt levels and positive annual cash flow. Our liquidity\nposition is strong, with healthy cash balances and full availability under our\n$30 million credit facility. We expect to generate positive free cash flow in\n2026, with sales volume growth in the 5% to 10% range over 2025 tons sold.\"\n\nFirst Quarter 2026 Highlights\n\nIn the first quarter of 2026, tons sold totaled approximately 1,492,000,\ncompared to 1,478,000 tons in the fourth quarter of 2025 and 1,069,000 tons in\nthe first quarter of 2025, reflecting a 1% sequential increase and a 40%\nyear-over-year increase.\n\nRevenues in the first quarter of 2026 were $93.1 million, compared to $86.0\nmillion in the fourth quarter of 2025 and $65.6 million in the first quarter\nof 2025. The increase in revenue sequentially and year over year was primarily\ndriven by higher sales volumes and higher average selling prices.\n\nCost of goods sold increased to $87.0 million for the first quarter of 2026,\nup from $74.8 million for the fourth quarter of 2025 and $62.8 million for the\nfirst quarter of 2025. The increase sequentially was primarily due to higher\nproduction and freight costs on similar volumes. The higher production costs,\ncompared to the previous quarter, were primarily driven by increased drawdown\nand expensing of inventory to meet sales volumes levels for the first quarter\n2026. The higher freight expense, compared to the fourth quarter 2025, was due\nprimarily to the location mix of sand sales. The increase over the prior year\nperiod was primarily due to an increase in sales volumes.\n\nGross profit for the first quarter of 2026 was $6.1 million compared to $11.2\nmillion in the fourth quarter of 2025 and $2.8 million in the first quarter of\n2025. Gross profit decreased sequentially due to higher production and freight\ncosts and increased over the prior year period due to the increase in sales\nvolumes.\n\nOperating expenses for the first quarter of 2026 were $11.0 million, down from\n$13.9 million for the fourth quarter of 2025 and up from $9.8 million for the\nfirst quarter of 2025. Selling, general and administrative costs were higher\nin the fourth quarter of 2025 due to higher wages of $2.9 million related to\nincreased incentive compensation in the quarter and a $1.0 million payment to\none of our utility providers in connection with planned growth at our Oakdale\nfacility. Operating expenses increased from the first quarter of 2025\nprimarily due to increased wages and royalties associated with increased sales\nvolumes.\n\nTotal other expenses for the first quarter of 2026 were $0.2 million,\nconsistent with both the fourth quarter of 2025 and the first quarter of 2025.\n\nIn the first quarter of 2026, the Company recorded a net loss of $(3.9)\nmillion, or $(0.10) per basic and diluted share. The Company had net income of\n$1.2 million, or $0.03 per basic and diluted share, for the fourth quarter of\n2025 and a net loss of $(24.2) million, or $(0.62) per basic and diluted\nshare, for the first quarter of 2025. The fluctuations in net income are\nprimarily driven by non-cash deferred income tax expense. Income tax expense /\n(benefit) often distorts the Company's results of operations due primarily to\ndeferred tax variances. The Company is required to record its interim period\nincome tax expense / (benefit) in accordance with GAAP, which requires that\nthe Company estimate its full year effective tax rate and apply that rate to\nthe net income for the period. The Company's effective tax rate includes\nmodifications from the statutory rate for items such as income tax credits,\ntax depletion deduction, valuation allowance, and state apportionment changes,\namong other items. The biggest driver of the Company's income tax expense /\n(benefit) is the depletion deduction calculation, which is not directly\nrelated to the net income of the Company. This tax deduction has an equally\nlarge effect on the Company's income tax rate, which is the basis for the\nquarterly income tax expense / (benefit) calculation. The Company does not\nexpect to be a payer of federal income tax in 2026 and expects to pay an\nimmaterial amount of state income taxes in 2026. Because of the difference\nbetween income tax recorded on a GAAP basis and the cash taxes the Company\nexpects to pay, the Company uses additional non-GAAP performance measures of\ncontribution margin, Adjusted EBITDA, and free cash flow to evaluate its\nresults of operations.\n\nContribution margin in the first quarter of 2026 was $13.2 million, or $8.84\nper ton sold, compared to $18.0 million, or $12.18 per ton sold, in the fourth\nquarter of 2025 and $9.6 million, or $8.96 per ton sold, in the first quarter\nof 2025. Contribution margin was lower in the first quarter of 2026 compared\nto the fourth quarter of 2025 primarily due to increased production and\nlogistics costs. Contribution margin was higher in the first quarter of 2026\ncompared to the first quarter of 2025 due to increased sales volumes and\nhigher average selling prices.\n\nAdjusted EBITDA was $3.8 million in the first quarter of 2026 down from $7.1\nmillion in the fourth quarter of 2025 and up from $1.4 million in the first\nquarter of 2025. The decrease in Adjusted EBITDA from the fourth quarter of\n2025 is due to an increase in production and logistics costs. The increase in\nAdjusted EBITDA from the first quarter of 2025 is primarily due to an increase\nin sales volumes with slightly higher average selling prices offset by an\nincrease in production and logistics costs associated with higher sand sales.\n\nNet cash provided by operating activities in the first quarter of 2026 was\n$3.0 million, compared to $22.4 million provided in the fourth quarter of 2025\nand $8.7 million provided in the first quarter of 2025. Net cash provided by\noperating activities in the fourth quarter of 2025 included a customer\nprepayment for sand that was in deferred revenue as well as a $4.4 million\npayment received related to contractual charges for tons sold in excess of\ncertain contractual thresholds. The revenue associated with the customer\nprepayment from the fourth quarter 2025 was fully recognized in the first\nquarter of 2026.\n\nIn the first quarter of 2026, free cash flow was $0.8 million, resulting from\nnet cash provided by operating activities of $3.0 million and capital\nexpenditures of $2.2 million. The Company currently projects full year 2026\ncapital expenditures to range between $15.0 million and $20.0 million,\nexcluding potential investments in new terminals, and anticipates being free\ncash flow positive for 2026.\n\nLiquidity\n\nIn the first quarter of 2026, the Company repurchased 343,998 shares of its\ncommon stock for $1.4 million under its share repurchase program. On October\n3, 2024, the Smart Sand Board of Directors approved an eighteen month share\nrepurchase program under which the Company may purchase up to $10.0 million of\nits outstanding shares of common stock (the \"Prior Repurchase Program\"). The\nPrior Repurchase Program was completed on April 2, 2026.\n\nOn February 23, 2026, the Company's board of directors approved a share\nrepurchase program authorizing the Company to repurchase up to $20.0 million\nof its outstanding shares of common stock (the \"New Repurchase Program\"). The\nNew Repurchase Program took effect on April 3, 2026 after completion of the\nPrior Repurchase Program and will continue through April 2, 2028. The timing,\nmanner, price, and amount of any repurchases under the New Repurchase Program\nwill be determined at the Company's discretion. Purchases may be effected\nthrough open market transactions, privately negotiated transactions,\ntransactions structured through investment banking institutions, or other\nmeans. The New Repurchase Program does not obligate the Company to acquire any\nparticular amount of shares and the New Repurchase Program may be modified or\nsuspended at any time at the Company's discretion.\n\nOn April 9, 2026, the Company's board of directors declared a special dividend\nof $0.10 per share of common stock, which was paid on May 5, 2026 to\nstockholders of record at the close of business on April 22, 2026. The\ndividend payment distributed approximately $3.9 million to shareholders.\n\nThe Company's primary sources of liquidity include cash on hand, cash flow\nfrom operations, and available borrowings under the Company's FCB ABL Credit\nFacility. As of March 31, 2026, cash on hand was $19.5 million and the Company\nhad $30.0 million in undrawn availability on the FCB ABL Credit Facility.\n\nAdditional Information\n\nInvestors are invited to view the Company's Financial Statements and Investor\nPresentations at www.smartsand.com (http://www.smartsand.com) . The Company\nalso welcomes calls or emails to the Company's Chief Financial Officer, Lee\nBeckelman, with any specific questions.\n\nForward-looking Statements\n\nAll statements in this news release other than statements of historical facts\nare forward-looking statements that contain the Company's current expectations\nabout its future results, including the Company's expectations regarding\nfuture sales. The Company has attempted to identify any forward-looking\nstatements by using words such as \"expect,\" \"will,\" \"estimate,\" \"believe\" and\nother similar expressions. Although the Company believes that the\nexpectations reflected and the assumptions or bases underlying its\nforward-looking statements are reasonable, the Company can give no assurance\nthat such expectations will prove to be correct. Such statements are not\nguarantees of future performance or events and are subject to known and\nunknown risks and uncertainties that could cause actual results, events or\nfinancial positions to differ materially from those included within or implied\nby such forward-looking statements.\n\nFactors that could cause actual results to differ materially from the results\ncontemplated by such forward-looking statements include, but are not limited\nto, fluctuations in product demand, delays in the completion of certain\nexpansion and improvement projects at the Company's existing facilities or\nfailure to recognize the anticipated benefits of such projects, regulatory\nchanges, adverse weather conditions, increased fuel prices, higher\ntransportation costs, access to capital, increased competition, changes in\neconomic or political conditions, and such other factors discussed or\nreferenced in the \"Risk Factors\" section of the Company's Annual Report on\nForm 10-K for the year ended December 31, 2025, filed by the Company with\nthe U.S. Securities and Exchange Commission (\"SEC\") on February 26, 2026,\nand in the Company's Quarterly Report on Form 10-Q for the quarter ended March\n31, 2026, filed by the Company with the SEC on May 12, 2026.\n\nThe reader should not place undue reliance on the Company's forward-looking\nstatements. Any forward-looking statement speaks only as of the date on which\nsuch statement is made, and the Company undertakes no obligation to publicly\nupdate or revise any forward-looking statement, whether as a result of new\ninformation, future events, changed circumstances or otherwise, unless\nrequired by law.\n\nAbout Smart Sand\n\nSmart Sand is a fully integrated frac and industrial sand supply and services\ncompany, offering complete mine to wellsite proppant and logistic solutions to\nits frac sand customers, and a broad offering of products for industrial sand\ncustomers. The Company produces low-cost, high quality Northern White sand,\nwhich is a premium sand used as a proppant to enhance hydrocarbon recovery\nrates in the hydraulic fracturing of oil and natural gas wells. The Company's\nsand is also a high-quality product used in a variety of industrial\napplications, including glass, foundry, building products, filtration,\ngeothermal, renewables, ceramics, turf & landscaping, retail, recreation\nand more. The Company also offers logistics solutions to its customers through\nits in-basin transloading terminals and its SmartSystems wellsite storage\ncapabilities. Smart Sand owns and operates premium sand mines and related\nprocessing facilities in Wisconsin and Illinois, which have access to four\nClass I rail lines, allowing the Company to deliver products substantially\nanywhere in the United States and Canada. For more information, please visit\nwww.smartsand.com\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4687058-1&h=4178876971&u=https%3A%2F%2Fwww.smartsand.com%2F&a=www.smartsand.com)\n.\n SMART SAND, INC.\n\nCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS\n\n Three Months Ended\n March 31, 2026 December 31, 2025 March 31, 2025\n (unaudited) (unaudited) (unaudited)\n\n Revenues:\n Sand revenue $ 92,488 $ 85,065 $ 64,464\n SmartSystems revenue 623 980 1,094\n Total revenue 93,111 86,045 65,558\n Cost of goods sold:\n Sand cost of goods sold 85,842 73,714 61,673\n SmartSystems cost of goods sold 1,161 1,107 1,113\n Total cost of goods sold 87,003 74,821 62,786\n Gross profit 6,108 11,224 2,772\n Operating expenses:\n Selling, general and administrative 10,709 13,085 9,243\n Depreciation and amortization 569 578 619\n (Gain) loss on disposal of fixed asset, net (297) 264 (40)\n Total operating expenses 10,981 13,927 9,822\n Operating income (4,873) (2,703) (7,050)\n Other income (expenses):\n Interest expense, net (255) (491) (342)\n Other income 96 120 129\n Total other expenses, net (159) (371) (213)\n Loss before income tax (benefit) expense (5,032) (3,074) (7,263)\n Income tax (benefit) expense (1,172) (4,252) 16,968\n Net (loss) income $ (3,860) $ 1,178 $ (24,231)\n Net (loss) income per common share:\n Basic $ (0.10) $ 0.03 $ (0.62)\n Diluted $ (0.10) $ 0.03 $ (0.62)\n Weighted-average number of common shares:\n Basic 39,173 38,893 39,257\n Diluted 39,173 40,177 39,257\n\n \n SMART SAND, INC.\n\nCONDENSED CONSOLIDATED BALANCE SHEETS\n\n March 31, 2026 December 31, 2025\n (unaudited)\n (in thousands)\n Assets\n Current assets:\n Cash and cash equivalents $ 19,454 $ 22,551\n Accounts receivable 28,396 30,519\n Unbilled receivables 121 —\n Inventory 30,235 31,081\n Prepaid expenses and other current assets 4,824 3,991\n Total current assets 83,030 88,142\n Property, plant and equipment, net 222,361 223,254\n Operating lease right-of-use assets 25,382 23,471\n Intangible assets, net 4,094 4,292\n Other assets 798 855\n Total assets $ 335,665 $ 340,014\n Liabilities and Stockholders' Equity\n Current liabilities:\n Accounts payable $ 12,497 $ 9,427\n Accrued expenses and other liabilities 22,820 17,544\n Deferred revenue 1,041 9,838\n Current portion of long-term debt 4,749 4,366\n Current portion of operating lease liabilities 9,051 8,765\n Total current liabilities 50,158 49,940\n Long-term debt 9,156 8,657\n Long-term operating lease liabilities 15,908 14,392\n Deferred tax liabilities, net 3,206 4,188\n Asset retirement obligations 22,760 22,472\n Other non-current liabilities 359 668\n Total liabilities 101,547 100,317\n Commitments and contingencies\n Stockholders' equity\n Common stock 38 39\n Treasury stock (20,101) (17,393)\n Additional paid-in capital 190,021 189,031\n Retained earnings 64,213 68,073\n Accumulated other comprehensive loss (53) (53)\n Total stockholders' equity 234,118 239,697\n Total liabilities and stockholders' equity $ 335,665 $ 340,014\n\n \n SMART SAND, INC.CONSOLIDATED\n\nSTATEMENTS OF CASH FLOWS\n\n Three Months Ended\n March 31, 2026 December 31, 2025 March 31, 2025\n (unaudited) (unaudited) (unaudited)\n (in thousands)\n Operating activities:\n Net (loss) income $ (3,860) $ 1,178 $ (24,231)\n Adjustments to reconcile net income to net cash provided by\n operating activities:\n Depreciation, depletion and accretion of asset retirement 7,528 7,406 7,299\n obligations\n Amortization of intangible assets 199 201 198\n Loss (gain) on disposal of fixed assets (297) 264 (40)\n Amortization of deferred financing cost 64 64 46\n Deferred income taxes (982) (2,546) 16,662\n Stock-based compensation 960 864 934\n Employee stock purchase plan compensation 10 5 6\n Changes in assets and liabilities:\n Accounts receivable 2,123 13,671 13,015\n Unbilled receivables (121) — 2,408\n Inventory 629 518 (3,265)\n Prepaid expenses and other assets (721) (1,006) (1,712)\n Deferred revenue (8,797) 9,838 423\n Asset retirement obligation settlement — (92) —\n Accounts payable 1,534 209 (4,061)\n Accrued and other expenses 4,774 (8,204) 1,042\n Net cash provided by operating activities 3,043 22,370 8,724\n Investing activities:\n Purchases of property, plant and equipment (2,201) (1,998) (3,536)\n Proceeds from disposal of assets — — 1\n Net cash used in investing activities (2,201) (1,998) (3,535)\n Financing activities:\n Dividend payments to shareholders — (1,978) (7)\n Repayments of notes payable (1,188) (816) (955)\n Payments under finance leases (61) (59) (58)\n Proceeds from revolving credit facility — 2,000 11,000\n Repayment of revolving credit facility — (2,000) (11,000)\n Proceeds from equity issuance 20 — 26\n Repurchase of treasury stock from restricted stock vesting (1,238) (49) (336)\n Repurchase of treasury stock from Repurchase Program (1,472) (1) (305)\n Net cash used in financing activities (3,939) (2,903) (1,635)\n Net (decrease) increase in cash and cash equivalents (3,097) 17,469 3,554\n Cash and cash equivalents at beginning of period 22,551 5,082 1,554\n Cash and cash equivalents at end of period $ 19,454 $ 22,551 $ 5,108\n\nNon-GAAP Financial Measures\n\nContribution Margin\n\nThe Company also uses contribution margin, which is defined as total revenues\nless costs of goods sold excluding depreciation, depletion and accretion of\nasset retirement obligations, to measure its financial and operating\nperformance. Contribution margin excludes other operating expenses and income,\nincluding costs not directly associated with the operations of the Company's\nbusiness such as accounting, human resources, information technology, legal,\nsales and other administrative activities.\n\nManagement believes that reporting contribution margin and contribution margin\nper ton sold provides useful performance metrics to management and external\nusers of the Company's financial statements, such as investors and commercial\nbanks, because these metrics provide an operating and financial measure of the\nCompany's ability, as a combined business, to generate margin in excess of its\noperating cost base.\n\nGross profit is the GAAP measure most directly comparable to contribution\nmargin. Contribution margin should not be considered an alternative to gross\nprofit presented in accordance with GAAP. Because contribution margin may be\ndefined differently by other companies in the industry, the Company's\ndefinition of contribution margin may not be comparable to similarly titled\nmeasures of other companies, thereby diminishing its utility. The following\ntable presents a reconciliation of gross profit to contribution margin.\n Three Months Ended\n March 31, 2026 December 31, 2025 March 31, 2025\n (in thousands, except per ton amounts)\n Revenue $ 93,111 $ 86,045 $ 65,558\n Cost of goods sold 87,003 74,821 62,786\n Gross profit 6,108 11,224 2,772\n Depreciation, depletion, and accretion of asset retirement 7,081 6,784 6,805\n obligations included in cost of goods sold\n Contribution margin $ 13,189 $ 18,008 $ 9,577\n Contribution margin per ton $ 8.84 $ 12.18 $ 8.96\n Total tons sold 1,492 1,478 1,069\n\nEBITDA and Adjusted EBITDA\n\nEBITDA is defined as net income, plus: (i) depreciation, depletion and\namortization expense; (ii) income tax expense (benefit) and other results of\noperations based taxes; and (iii) interest expense. Adjusted EBITDA is defined\nas EBITDA, plus: (i) gain or loss on sale of fixed assets or discontinued\noperations; (ii) integration and transition costs associated with specified\ntransactions; (iii) equity compensation; (iv) acquisition and development\ncosts; (v) non-recurring cash charges related to restructuring, retention and\nother similar actions; (vi) earn-out, contingent consideration obligations;\nand (vii) non-cash charges and unusual or non-recurring charges. Adjusted\nEBITDA is used as a supplemental financial measure by management and by\nexternal users of the Company's financial statements, such as investors and\ncommercial banks, to assess:\n\n * the financial performance of the Company's assets without regard to the impact\nof financing methods, capital structure or historical cost basis of such\nassets;\n * the viability of capital expenditure projects and the overall rates of return\non alternative investment opportunities;\n * the Company's ability to incur and service debt and fund capital expenditures;\n * the Company's operating performance as compared to those of other companies in\nits industry without regard to the impact of financing methods or capital\nstructure; and\n * the Company's debt covenant compliance, as Adjusted EBITDA is a key component\nof critical covenants to the FCB ABL Credit Facility.\nManagement believes that the presentation of EBITDA and Adjusted EBITDA will\nprovide useful information to investors in assessing the Company's financial\ncondition and results of operations. Net income is the GAAP measure most\ndirectly comparable to EBITDA and Adjusted EBITDA. EBITDA and Adjusted EBITDA\nshould not be considered alternatives to net income presented in accordance\nwith GAAP. Because EBITDA and Adjusted EBITDA may be defined differently by\nother companies in the Company's industry, the Company's definitions of EBITDA\nand Adjusted EBITDA may not be comparable to similarly titled measures of\nother companies, thereby diminishing their utility. The following table\npresents a reconciliation of net (loss) income to EBITDA and Adjusted EBITDA\nfor each of the periods indicated.\n Three Months Ended\n March 31, 2026 December 31, 2025 March 31, 2025\n (in thousands)\n Net (loss) income $ (3,860) $ 1,178 $ (24,231)\n Depreciation, depletion and amortization 7,439 7,166 7,205\n Income tax expense (benefit) and other taxes (1,172) (4,252) 16,968\n Interest expense 394 657 372\n EBITDA $ 2,801 $ 4,749 $ 314\n Net (gain) loss on disposal of fixed assets (297) 264 (40)\n Equity compensation 913 784 859\n Acquisition and development costs 71 1,000 —\n Accretion of asset retirement obligations 288 269 293\n Adjusted EBITDA $ 3,776 $ 7,066 $ 1,426\n\nFree Cash Flow\n\nFree cash flow, which is defined as net cash provided by operating activities\nless purchases of property, plant and equipment, is used as a supplemental\nfinancial measure by the Company's management and by external users of the\nCompany's financial statements, such as investors and commercial banks, to\nmeasure the liquidity of its business.\n\nNet cash provided by operating activities is the GAAP measure most directly\ncomparable to free cash flow. Free cash flow should not be considered an\nalternative to net cash provided by operating activities presented in\naccordance with GAAP. Because free cash flows may be defined differently by\nother companies in the Company's industry, the Company's definition of free\ncash flow may not be comparable to similarly titled measures of other\ncompanies, thereby diminishing its utility. The following table presents a\nreconciliation of net cash provided by operating activities to free cash flow.\n Three Months Ended\n March 31, 2026 December 31, 2025 March 31, 2025\n (in thousands)\n Net cash provided by operating activities $ 3,043 $ 22,370 $ 8,724\n Purchases of property, plant and equipment (2,201) (1,998) (3,536)\n Free cash flow $ 842 $ 20,372 $ 5,188\n\n \n\nInvestor Contacts:\n\nLee Beckelman\nChief Financial Officer\n(281) 231-2660\nlbeckelman@smartsand.com (mailto:lbeckelman@smartsand.com)\n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/smart-sand-inc-announces-first-quarter-2026-results-302770064.html\n(https://www.prnewswire.com/news-releases/smart-sand-inc-announces-first-quarter-2026-results-302770064.html)\n\nSOURCE Smart Sand, Inc.\n\n\n\nPhoto: \nhttps://mma.prnewswire.com/media/2359636/Smart_Sand_Logo.jpg\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved."},"type":"article","timestamp":"2026-05-12T20:10:00.187501035Z","server_sent_at_ms":1778616600187},"received_at":"2026-05-12T20:10:00.415Z","source_url":"https://www.prnewswire.com/news-releases/smart-sand-inc-announces-first-quarter-2026-results-302770064.html"},"analysis":{"id":"23328","press_release_id":"32341","analysis_json":{"industry":{"label":"Construction Materials","sector":"Materials"},"redFlags":[],"eventType":"earnings","narrative":"Smart Sand, Inc. reported first quarter 2026 revenue of $93.1 million, up 40% year-over-year, driven by higher sales volumes and average selling prices.\n\nThe company recorded a net loss of $3.9 million, or $(0.10) per share, in the first quarter of 2026, compared to a net income of $1.2 million, or $0.03 per share, in the fourth quarter of 2025.\n\nSmart Sand repurchased 343,998 shares for $1.4 million under its share repurchase program and declared a special dividend of $0.10 per share, distributing approximately $3.9 million to shareholders.\n\nThe company's contribution margin was $13.2 million, or $8.84 per ton sold, and Adjusted EBITDA was $3.8 million, both showing improvement over the prior year period despite a sequential decline.","sentiment":"neutral","agentHooks":{"shouldPost":true,"suggestedAngle":"Strong revenue growth and positive free cash flow, despite net loss; new buyback and dividend announced."},"keyFigures":{"revenue":93100000,"revenueYoy":"40%","customDimensions":{"tons_sold":1492000,"adjusted_ebitda":3800000,"dividend_payment":3900000,"repurchase_amount":1400000,"contribution_margin":13200000}},"quotedText":"Smart Sand delivered another strong quarter of operating and financial performance","namedEntities":{"people":[{"name":"Charles Young","role":"CEO"},{"name":"Lee Beckelman","role":"CFO"}],"products":["Northern White frac sand","industrial sand","SmartSystem"],"companies":[{"name":"Smart Sand, Inc.","ticker":"SND"}],"dollarAmounts":[{"amount":"$93.1 million","context":"1Q 2026 revenue"},{"amount":"$3.0 million","context":"1Q 2026 net cash provided by operating activities"},{"amount":"$13.2 million","context":"1Q 2026 contribution margin"},{"amount":"$3.8 million","context":"1Q 2026 Adjusted EBITDA"},{"amount":"$0.8 million","context":"1Q 2026 free cash flow"},{"amount":"$1.4 million","context":"1Q 2026 share repurchase amount"},{"amount":"$3.9 million","context":"1Q 2026 dividend payment"},{"amount":"$19.5 million","context":"cash on hand as of March 31, 2026"},{"amount":"$30.0 million","context":"undrawn availability on the FCB ABL Credit Facility as of March 31, 2026"}]},"materialImpact":{"score":3,"reasoning":"The company reported a net loss but showed strong revenue growth and positive free cash flow. Additionally, the company announced a new share repurchase program and a special dividend, which are positive for shareholders."},"tickerRelevance":{"others":[],"primary":"SND"},"globalImportance":35,"audienceRelevance":45,"eventTypeSecondary":["buyback","dividend"],"importanceComponents":{"tickerTier":"mid-cap","eventGravity":"earnings with mixed results and capital return actions","householdBrandBoost":"low","marketCapAdjustment":"moderate"}},"event_type":"earnings","event_type_secondary":["buyback","dividend"],"sentiment":"neutral","material_impact_score":3,"narrative":"Smart Sand, Inc. reported first quarter 2026 revenue of $93.1 million, up 40% year-over-year, driven by higher sales volumes and average selling prices.\n\nThe company recorded a net loss of $3.9 million, or $(0.10) per share, in the first quarter of 2026, compared to a net income of $1.2 million, or $0.03 per share, in the fourth quarter of 2025.\n\nSmart Sand repurchased 343,998 shares for $1.4 million under its share repurchase program and declared a special dividend of $0.10 per share, distributing approximately $3.9 million to shareholders.\n\nThe company's contribution margin was $13.2 million, or $8.84 per ton sold, and Adjusted EBITDA was $3.8 million, both showing improvement over the prior year period despite a sequential decline.","key_figures":{"revenue":93100000,"revenueYoy":"40%","customDimensions":{"tons_sold":1492000,"adjusted_ebitda":3800000,"dividend_payment":3900000,"repurchase_amount":1400000,"contribution_margin":13200000}},"named_entities":{"people":[{"name":"Charles Young","role":"CEO"},{"name":"Lee Beckelman","role":"CFO"}],"products":["Northern White frac sand","industrial sand","SmartSystem"],"companies":[{"name":"Smart Sand, Inc.","ticker":"SND"}],"dollarAmounts":[{"amount":"$93.1 million","context":"1Q 2026 revenue"},{"amount":"$3.0 million","context":"1Q 2026 net cash provided by operating activities"},{"amount":"$13.2 million","context":"1Q 2026 contribution margin"},{"amount":"$3.8 million","context":"1Q 2026 Adjusted EBITDA"},{"amount":"$0.8 million","context":"1Q 2026 free cash flow"},{"amount":"$1.4 million","context":"1Q 2026 share repurchase amount"},{"amount":"$3.9 million","context":"1Q 2026 dividend payment"},{"amount":"$19.5 million","context":"cash on hand as of March 31, 2026"},{"amount":"$30.0 million","context":"undrawn availability on the FCB ABL Credit Facility as of March 31, 2026"}]},"model_name":"Qwen/Qwen2.5-72B-Instruct-AWQ","prompt_hash":"sha256:a68c0d5c02b24190","schema_hash":"sha256:4b22e0a142e5d4b1","created_at":"2026-05-12T20:16:48.301Z","global_importance":35,"audience_relevance":45,"importance_components":{"tickerTier":"mid-cap","eventGravity":"earnings with mixed results and capital return actions","householdBrandBoost":"low","marketCapAdjustment":"moderate"}},"durationMs":145445,"modelName":"george-droid-qwen-72b"}}