Smart Sand (SND) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was $93.1 million, up 42% year-over-year, driven by a 40% increase in sand volumes sold and slightly higher pricing.

• Net loss narrowed to $3.9 million from $24.2 million in Q1 2025, compared to net income of $1.2 million in 4Q 2025, primarily due to a lower income tax expense.

• Adjusted EBITDA rose to $3.8 million from $1.4 million year-over-year, though down from $7.1 million in 4Q 2025, reflecting higher sales volumes.

• Free cash flow was $0.8 million, down from $5.2 million in Q1 2025, with operating cash flow of $3.0 million in Q1 2026.

• Returned $5.7 million to shareholders year-to-date through stock repurchases and dividends.

Financial highlights

• Sand revenue increased 43% to $92.5 million; SmartSystems revenue declined 43% to $0.6 million.

• Contribution margin was $13.2 million ($8.84/ton), up from $9.6 million ($8.96/ton) year-over-year, but down from $18.0 million ($12.18/ton) in 4Q 2025.

• Gross profit improved to $6.1 million from $2.8 million year-over-year, but down from $11.2 million in 4Q 2025.

• Selling, general and administrative expenses rose to $10.7 million, up 16% year-over-year.

• Cash and cash equivalents at quarter-end were $19.5 million, with $30 million undrawn on the credit facility.

Outlook and guidance

• Full-year 2026 capital expenditures expected between $15 million and $20 million, focused on mine development and efficiency projects, excluding new terminals.

• Management expects sufficient liquidity and positive free cash flow for the next twelve months.

• Anticipates sales volume growth of 5% to 10% over 2025 and industrial sales volumes to increase year-over-year.

• No material federal income tax expected for 2026; state taxes anticipated to be immaterial.