SND · Smart Sand, Inc.

Smart Sand delivered stronger Q1 2026 results driven by increased customer activity and higher sand volumes sold, as noted in management's discussion. Revenue climbed 42.0% to $93.1 million from $65.6 million in the prior year quarter, reflecting sustained demand recovery through 2025 into early 2026. This volume surge directly boosted gross profit by 120.3% to $6.1 million, expanding the gross margin to 6.6% despite elevated costs. The increase in costs of goods sold stemmed primarily from higher production, freight, and transloading expenses tied to those greater volumes, compounded by seasonal dynamics where capitalized cash operating costs from prior periods are expensed upon sale, pressuring first-quarter margins.

Operating income loss narrowed 30.9% to -$4.9 million from -$7.0 million, with operating margin at -5.2%, as revenue growth and gross profit gains offset other operating pressures. Management highlights that contribution margin excludes overhead like accounting, HR, IT, and sales activities not directly tied to core sand operations, providing a clearer lens on volume-driven performance. The net loss improved dramatically by 84.1% to -$3.9 million from -$24.2 million, lifting diluted EPS to -$0.10 from -$0.62, underscoring underlying operational momentum beyond prior-year tax distortions.

These results reflect customer activity ramp benefits, though management cautions historical performance may not predict future outcomes amid monitored global events. The focus on volume growth positions Smart Sand to capitalize on demand while navigating production seasonality and cost timing.