SND · Smart Sand, Inc.

Smart Sand's first quarter 2026 results reflect record sales volumes but a sequential decline in profitability due to cost headwinds. Revenue rose to $93.1 million, up 8% from Q4 2025 and 42% year-over-year, driven by a 1% sequential and 40% annual increase in tons sold to approximately 1.49 million tons. However, gross profit fell to $6.1 million from $11.2 million in Q4 2025, as cost of goods sold increased to $87.0 million. The company attributed the higher costs to increased production and freight expenses, including inventory drawdown and location mix. Operating expenses decreased to $11.0 million from $13.9 million in Q4 2025, which had included higher incentive compensation and a $1.0 million utility payment. Net loss of $(3.9) million compared to net income of $1.2 million in Q4 2025, primarily due to non-cash deferred income tax expense; the company noted it does not expect to pay federal income tax in 2026. Adjusted EBITDA of $3.8 million was down from $7.1 million in Q4 2025 but up from $1.4 million a year ago. Management highlighted strong customer interest in the new SmartSystem design and expects industrial sales volumes to increase year-over-year. The company provided full-year 2026 guidance for capital expenditures of $15-20 million and sales volume growth of 5-10% over 2025. It also returned capital to shareholders through a $20 million share repurchase program and a $0.10 per share special dividend. Liquidity remains strong with $19.5 million cash and full $30 million credit facility availability.