Smart Sand, Inc. Announces First Quarter 2026 Results
Rhea-AI Summary
Smart Sand (NASDAQ:SND) reported Q1 2026 revenue of $93.1 million, tons sold of about 1.49 million, a net loss of $3.9 million, Adjusted EBITDA of $3.8 million and free cash flow of $0.8 million.
The company highlighted strong liquidity with $19.5 million cash and $30 million undrawn credit, a new $20 million share repurchase program, a $0.10 special dividend, and guidance for 2026 volume growth of 5–10% and positive free cash flow.
Positive
- Q1 2026 revenue rose to $93.1 million from $65.6 million year over year
- Tons sold increased 40% year over year to approximately 1,492,000
- Q1 2026 Adjusted EBITDA increased to $3.8 million from $1.4 million year over year
- Q1 2026 contribution margin grew to $13.2 million from $9.6 million year over year
- Generated positive free cash flow of $0.8 million in Q1 2026
- Declared $0.10 per share special dividend totaling about $3.9 million
- New share repurchase program authorizes up to $20 million through April 2028
- Liquidity at March 31, 2026 included $19.5 million cash and $30 million undrawn credit
- Management projects 2026 sales volume growth of 5%–10% over 2025 and positive free cash flow
Negative
- Reported Q1 2026 net loss of $3.9 million, or $(0.10) per share
- Gross profit declined sequentially to $6.1 million from $11.2 million
- Q1 2026 contribution margin per ton fell to $8.84 from $12.18 sequentially
- Adjusted EBITDA decreased sequentially to $3.8 million from $7.1 million
- Cost of goods sold increased to $87.0 million from $74.8 million sequentially
- Operating cash flow fell to $3.0 million from $22.4 million in Q4 2025
News Market Reaction – SND
On the day this news was published, SND declined 11.00%, reflecting a significant negative market reaction. Argus tracked a peak move of +2.4% during that session. Argus tracked a trough of -16.1% from its starting point during tracking. Our momentum scanner triggered 20 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $28M from the company's valuation, bringing the market cap to $224.17M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 26 | Q4 2025 earnings | Positive | +2.2% | Reported $86.0M Q4 revenue and $20.4M free cash flow with buybacks. |
| Nov 12 | Q3 2025 earnings | Positive | -0.9% | Strong Q3 revenue $92.8M and $13.6M Adjusted EBITDA but higher costs. |
| Aug 12 | Q2 2025 earnings | Positive | -1.6% | Q2 revenue $85.8M and 1.424M tons sold with $7.8M Adjusted EBITDA. |
| Aug 04 | Earnings timing | Neutral | -5.8% | Announced scheduled release date and access details for Q2 2025 results. |
| May 13 | Q1 2025 earnings | Negative | -7.9% | Q1 2025 loss of $(24.2)M on $65.6M revenue despite industrial growth. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings headlines have produced mixed reactions, with an even split between aligned and divergent moves.
Over the last year, Smart Sand’s earnings reports showed growing sand volumes and revenue but variable margins. Events on Feb 26, 2026 and Nov 12, 2025 highlighted strong revenue and free cash flow alongside rising logistics and production costs. Earlier, Q2 and Q1 2025 results on Aug 12 and May 13 featured sharp swings in net income and heavy tax effects. This Q1 2026 release continues the theme of higher volumes with margin pressure and ongoing capital returns.
Key Terms
contribution margin financial
adjusted EBITDA financial
free cash flow financial
GAAP financial
credit facility financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- 1Q 2026 revenue of
$93.1 million - 1Q 2026 net loss of
$(3.9) million - 1Q 2026 cash flow provided by operations of
$3.0 million - 1Q 2026 contribution margin
$13.2 million - 1Q 2026 Adjusted EBITDA of
$3.8 million - 1Q 2026 free cash flow of
$0.8 million
"Smart Sand delivered another strong quarter of operating and financial performance," said Charles Young, Smart Sand's Chief Executive Officer. "The first quarter was our fourth consecutive quarter with more than 1.4 million tons of sand sold, and we set a quarterly sales-volume record at just under 1.5 million tons. During the quarter, we generated positive free cash flow, and year to date through today we have returned approximately
"We remain focused on being the premier provider of Northern White sand in
"We continue to expand our Industrial Products Solutions business, primarily through our
"In the first quarter, we successfully put our new SmartSystem design to work in the field. We believe the reconfigured design enables us to more efficiently and cost effectively meet the growing market demand for higher daily sand volumes used in oil and gas well completions. We are seeing strong customer interest in the new SmartSystem configuration. However, consistent with our focus on capital discipline, we want to see customer commitments for new systems before making incremental investments in additional SmartSystem fleets."
"Smart Sand is committed to growing our leading Northern White sand franchise while continuing to return capital to shareholders." said Charles Young. "We will remain true to our core operating principles of maintaining strong liquidity, prudent debt levels and positive annual cash flow. Our liquidity position is strong, with healthy cash balances and full availability under our
First Quarter 2026 Highlights
In the first quarter of 2026, tons sold totaled approximately 1,492,000, compared to 1,478,000 tons in the fourth quarter of 2025 and 1,069,000 tons in the first quarter of 2025, reflecting a
Revenues in the first quarter of 2026 were
Cost of goods sold increased to
Gross profit for the first quarter of 2026 was
Operating expenses for the first quarter of 2026 were
Total other expenses for the first quarter of 2026 were
In the first quarter of 2026, the Company recorded a net loss of
Contribution margin in the first quarter of 2026 was
Adjusted EBITDA was
Net cash provided by operating activities in the first quarter of 2026 was
In the first quarter of 2026, free cash flow was
Liquidity
In the first quarter of 2026, the Company repurchased 343,998 shares of its common stock for
On February 23, 2026, the Company's board of directors approved a share repurchase program authorizing the Company to repurchase up to
On April 9, 2026, the Company's board of directors declared a special dividend of
The Company's primary sources of liquidity include cash on hand, cash flow from operations, and available borrowings under the Company's FCB ABL Credit Facility. As of March 31, 2026, cash on hand was
Additional Information
Investors are invited to view the Company's Financial Statements and Investor Presentations at www.smartsand.com. The Company also welcomes calls or emails to the Company's Chief Financial Officer, Lee Beckelman, with any specific questions.
Forward-looking Statements
All statements in this news release other than statements of historical facts are forward-looking statements that contain the Company's current expectations about its future results, including the Company's expectations regarding future sales. The Company has attempted to identify any forward-looking statements by using words such as "expect," "will," "estimate," "believe" and other similar expressions. Although the Company believes that the expectations reflected and the assumptions or bases underlying its forward-looking statements are reasonable, the Company can give no assurance that such expectations will prove to be correct. Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause actual results, events or financial positions to differ materially from those included within or implied by such forward-looking statements.
Factors that could cause actual results to differ materially from the results contemplated by such forward-looking statements include, but are not limited to, fluctuations in product demand, delays in the completion of certain expansion and improvement projects at the Company's existing facilities or failure to recognize the anticipated benefits of such projects, regulatory changes, adverse weather conditions, increased fuel prices, higher transportation costs, access to capital, increased competition, changes in economic or political conditions, and such other factors discussed or referenced in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended December 31, 2025, filed by the Company with the U.S. Securities and Exchange Commission ("SEC") on February 26, 2026, and in the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, filed by the Company with the SEC on May 12, 2026.
The reader should not place undue reliance on the Company's forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, unless required by law.
About Smart Sand
Smart Sand is a fully integrated frac and industrial sand supply and services company, offering complete mine to wellsite proppant and logistic solutions to its frac sand customers, and a broad offering of products for industrial sand customers. The Company produces low-cost, high quality Northern White sand, which is a premium sand used as a proppant to enhance hydrocarbon recovery rates in the hydraulic fracturing of oil and natural gas wells. The Company's sand is also a high-quality product used in a variety of industrial applications, including glass, foundry, building products, filtration, geothermal, renewables, ceramics, turf & landscaping, retail, recreation and more. The Company also offers logistics solutions to its customers through its in-basin transloading terminals and its SmartSystems wellsite storage capabilities. Smart Sand owns and operates premium sand mines and related processing facilities in
SMART SAND, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
Three Months Ended | |||||
March 31, 2026 | December 31, 2025 | March 31, 2025 | |||
(unaudited) | (unaudited) | (unaudited) | |||
Revenues: | |||||
Sand revenue | $ 92,488 | $ 85,065 | $ 64,464 | ||
SmartSystems revenue | 623 | 980 | 1,094 | ||
Total revenue | 93,111 | 86,045 | 65,558 | ||
Cost of goods sold: | |||||
Sand cost of goods sold | 85,842 | 73,714 | 61,673 | ||
SmartSystems cost of goods sold | 1,161 | 1,107 | 1,113 | ||
Total cost of goods sold | 87,003 | 74,821 | 62,786 | ||
Gross profit | 6,108 | 11,224 | 2,772 | ||
Operating expenses: | |||||
Selling, general and administrative | 10,709 | 13,085 | 9,243 | ||
Depreciation and amortization | 569 | 578 | 619 | ||
(Gain) loss on disposal of fixed asset, net | (297) | 264 | (40) | ||
Total operating expenses | 10,981 | 13,927 | 9,822 | ||
Operating income | (4,873) | (2,703) | (7,050) | ||
Other income (expenses): | |||||
Interest expense, net | (255) | (491) | (342) | ||
Other income | 96 | 120 | 129 | ||
Total other expenses, net | (159) | (371) | (213) | ||
Loss before income tax (benefit) expense | (5,032) | (3,074) | (7,263) | ||
Income tax (benefit) expense | (1,172) | (4,252) | 16,968 | ||
Net (loss) income | $ (3,860) | $ 1,178 | $ (24,231) | ||
Net (loss) income per common share: | |||||
Basic | $ (0.10) | $ 0.03 | $ (0.62) | ||
Diluted | $ (0.10) | $ 0.03 | $ (0.62) | ||
Weighted-average number of common shares: | |||||
Basic | 39,173 | 38,893 | 39,257 | ||
Diluted | 39,173 | 40,177 | 39,257 | ||
SMART SAND, INC. CONDENSED CONSOLIDATED BALANCE SHEETS | |||
March 31, 2026 | December 31, 2025 | ||
(unaudited) | |||
(in thousands) | |||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 19,454 | $ 22,551 | |
Accounts receivable | 28,396 | 30,519 | |
Unbilled receivables | 121 | — | |
Inventory | 30,235 | 31,081 | |
Prepaid expenses and other current assets | 4,824 | 3,991 | |
Total current assets | 83,030 | 88,142 | |
Property, plant and equipment, net | 222,361 | 223,254 | |
Operating lease right-of-use assets | 25,382 | 23,471 | |
Intangible assets, net | 4,094 | 4,292 | |
Other assets | 798 | 855 | |
Total assets | $ 335,665 | $ 340,014 | |
Liabilities and Stockholders' Equity | |||
Current liabilities: | |||
Accounts payable | $ 12,497 | $ 9,427 | |
Accrued expenses and other liabilities | 22,820 | 17,544 | |
Deferred revenue | 1,041 | 9,838 | |
Current portion of long-term debt | 4,749 | 4,366 | |
Current portion of operating lease liabilities | 9,051 | 8,765 | |
Total current liabilities | 50,158 | 49,940 | |
Long-term debt | 9,156 | 8,657 | |
Long-term operating lease liabilities | 15,908 | 14,392 | |
Deferred tax liabilities, net | 3,206 | 4,188 | |
Asset retirement obligations | 22,760 | 22,472 | |
Other non-current liabilities | 359 | 668 | |
Total liabilities | 101,547 | 100,317 | |
Commitments and contingencies | |||
Stockholders' equity | |||
Common stock | 38 | 39 | |
Treasury stock | (20,101) | (17,393) | |
Additional paid-in capital | 190,021 | 189,031 | |
Retained earnings | 64,213 | 68,073 | |
Accumulated other comprehensive loss | (53) | (53) | |
Total stockholders' equity | 234,118 | 239,697 | |
Total liabilities and stockholders' equity | $ 335,665 | $ 340,014 | |
SMART SAND, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
Three Months Ended | |||||
March 31, 2026 | December 31, 2025 | March 31, 2025 | |||
(unaudited) | (unaudited) | (unaudited) | |||
(in thousands) | |||||
Operating activities: | |||||
Net (loss) income | $ (3,860) | $ 1,178 | $ (24,231) | ||
Adjustments to reconcile net income to net cash provided by | |||||
Depreciation, depletion and accretion of asset retirement | 7,528 | 7,406 | 7,299 | ||
Amortization of intangible assets | 199 | 201 | 198 | ||
Loss (gain) on disposal of fixed assets | (297) | 264 | (40) | ||
Amortization of deferred financing cost | 64 | 64 | 46 | ||
Deferred income taxes | (982) | (2,546) | 16,662 | ||
Stock-based compensation | 960 | 864 | 934 | ||
Employee stock purchase plan compensation | 10 | 5 | 6 | ||
Changes in assets and liabilities: | |||||
Accounts receivable | 2,123 | 13,671 | 13,015 | ||
Unbilled receivables | (121) | — | 2,408 | ||
Inventory | 629 | 518 | (3,265) | ||
Prepaid expenses and other assets | (721) | (1,006) | (1,712) | ||
Deferred revenue | (8,797) | 9,838 | 423 | ||
Asset retirement obligation settlement | — | (92) | — | ||
Accounts payable | 1,534 | 209 | (4,061) | ||
Accrued and other expenses | 4,774 | (8,204) | 1,042 | ||
Net cash provided by operating activities | 3,043 | 22,370 | 8,724 | ||
Investing activities: | |||||
Purchases of property, plant and equipment | (2,201) | (1,998) | (3,536) | ||
Proceeds from disposal of assets | — | — | 1 | ||
Net cash used in investing activities | (2,201) | (1,998) | (3,535) | ||
Financing activities: | |||||
Dividend payments to shareholders | — | (1,978) | (7) | ||
Repayments of notes payable | (1,188) | (816) | (955) | ||
Payments under finance leases | (61) | (59) | (58) | ||
Proceeds from revolving credit facility | — | 2,000 | 11,000 | ||
Repayment of revolving credit facility | — | (2,000) | (11,000) | ||
Proceeds from equity issuance | 20 | — | 26 | ||
Repurchase of treasury stock from restricted stock vesting | (1,238) | (49) | (336) | ||
Repurchase of treasury stock from Repurchase Program | (1,472) | (1) | (305) | ||
Net cash used in financing activities | (3,939) | (2,903) | (1,635) | ||
Net (decrease) increase in cash and cash equivalents | (3,097) | 17,469 | 3,554 | ||
Cash and cash equivalents at beginning of period | 22,551 | 5,082 | 1,554 | ||
Cash and cash equivalents at end of period | $ 19,454 | $ 22,551 | $ 5,108 | ||
Non-GAAP Financial Measures
Contribution Margin
The Company also uses contribution margin, which is defined as total revenues less costs of goods sold excluding depreciation, depletion and accretion of asset retirement obligations, to measure its financial and operating performance. Contribution margin excludes other operating expenses and income, including costs not directly associated with the operations of the Company's business such as accounting, human resources, information technology, legal, sales and other administrative activities.
Management believes that reporting contribution margin and contribution margin per ton sold provides useful performance metrics to management and external users of the Company's financial statements, such as investors and commercial banks, because these metrics provide an operating and financial measure of the Company's ability, as a combined business, to generate margin in excess of its operating cost base.
Gross profit is the GAAP measure most directly comparable to contribution margin. Contribution margin should not be considered an alternative to gross profit presented in accordance with GAAP. Because contribution margin may be defined differently by other companies in the industry, the Company's definition of contribution margin may not be comparable to similarly titled measures of other companies, thereby diminishing its utility. The following table presents a reconciliation of gross profit to contribution margin.
Three Months Ended | |||||
March 31, 2026 | December 31, 2025 | March 31, 2025 | |||
(in thousands, except per ton amounts) | |||||
Revenue | $ 93,111 | $ 86,045 | $ 65,558 | ||
Cost of goods sold | 87,003 | 74,821 | 62,786 | ||
Gross profit | 6,108 | 11,224 | 2,772 | ||
Depreciation, depletion, and accretion of asset retirement | 7,081 | 6,784 | 6,805 | ||
Contribution margin | $ 13,189 | $ 18,008 | $ 9,577 | ||
Contribution margin per ton | $ 8.84 | $ 12.18 | $ 8.96 | ||
Total tons sold | 1,492 | 1,478 | 1,069 | ||
EBITDA and Adjusted EBITDA
EBITDA is defined as net income, plus: (i) depreciation, depletion and amortization expense; (ii) income tax expense (benefit) and other results of operations based taxes; and (iii) interest expense. Adjusted EBITDA is defined as EBITDA, plus: (i) gain or loss on sale of fixed assets or discontinued operations; (ii) integration and transition costs associated with specified transactions; (iii) equity compensation; (iv) acquisition and development costs; (v) non-recurring cash charges related to restructuring, retention and other similar actions; (vi) earn-out, contingent consideration obligations; and (vii) non-cash charges and unusual or non-recurring charges. Adjusted EBITDA is used as a supplemental financial measure by management and by external users of the Company's financial statements, such as investors and commercial banks, to assess:
- the financial performance of the Company's assets without regard to the impact of financing methods, capital structure or historical cost basis of such assets;
- the viability of capital expenditure projects and the overall rates of return on alternative investment opportunities;
- the Company's ability to incur and service debt and fund capital expenditures;
- the Company's operating performance as compared to those of other companies in its industry without regard to the impact of financing methods or capital structure; and
- the Company's debt covenant compliance, as Adjusted EBITDA is a key component of critical covenants to the FCB ABL Credit Facility.
Management believes that the presentation of EBITDA and Adjusted EBITDA will provide useful information to investors in assessing the Company's financial condition and results of operations. Net income is the GAAP measure most directly comparable to EBITDA and Adjusted EBITDA. EBITDA and Adjusted EBITDA should not be considered alternatives to net income presented in accordance with GAAP. Because EBITDA and Adjusted EBITDA may be defined differently by other companies in the Company's industry, the Company's definitions of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. The following table presents a reconciliation of net (loss) income to EBITDA and Adjusted EBITDA for each of the periods indicated.
Three Months Ended | |||||
March 31, 2026 | December 31, 2025 | March 31, 2025 | |||
(in thousands) | |||||
Net (loss) income | $ (3,860) | $ 1,178 | $ (24,231) | ||
Depreciation, depletion and amortization | 7,439 | 7,166 | 7,205 | ||
Income tax expense (benefit) and other taxes | (1,172) | (4,252) | 16,968 | ||
Interest expense | 394 | 657 | 372 | ||
EBITDA | $ 2,801 | $ 4,749 | $ 314 | ||
Net (gain) loss on disposal of fixed assets | (297) | 264 | (40) | ||
Equity compensation | 913 | 784 | 859 | ||
Acquisition and development costs | 71 | 1,000 | — | ||
Accretion of asset retirement obligations | 288 | 269 | 293 | ||
Adjusted EBITDA | $ 3,776 | $ 7,066 | $ 1,426 | ||
Free Cash Flow
Free cash flow, which is defined as net cash provided by operating activities less purchases of property, plant and equipment, is used as a supplemental financial measure by the Company's management and by external users of the Company's financial statements, such as investors and commercial banks, to measure the liquidity of its business.
Net cash provided by operating activities is the GAAP measure most directly comparable to free cash flow. Free cash flow should not be considered an alternative to net cash provided by operating activities presented in accordance with GAAP. Because free cash flows may be defined differently by other companies in the Company's industry, the Company's definition of free cash flow may not be comparable to similarly titled measures of other companies, thereby diminishing its utility. The following table presents a reconciliation of net cash provided by operating activities to free cash flow.
Three Months Ended | |||||
March 31, 2026 | December 31, 2025 | March 31, 2025 | |||
(in thousands) | |||||
Net cash provided by operating activities | $ 3,043 | $ 22,370 | $ 8,724 | ||
Purchases of property, plant and equipment | (2,201) | (1,998) | (3,536) | ||
Free cash flow | $ 842 | $ 20,372 | $ 5,188 | ||
Investor Contacts:
Lee Beckelman
Chief Financial Officer
(281) 231-2660
lbeckelman@smartsand.com
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SOURCE Smart Sand, Inc.