Smart Sand Reports 42% Revenue Growth to $93.1 Million in Latest Quarter

Smart Sand, Inc. reported significant financial improvements in its latest quarterly results, with total revenues reaching $93.1 million for the three months ended March 31, 2026, a 42% increase from $65.6 million in the same period last year. The surge in revenue was primarily driven by a 43% increase in sand revenue, which amounted to $92.5 million, attributed to higher sales volumes and slightly improved pricing. The company sold approximately 1.49 million tons of sand during the quarter, compared to 1.07 million tons in the prior year. Despite the increase in revenue, Smart Sand's SmartSystems segment saw a decline in revenue to $623,000 from $1.1 million, reflecting lower utilization of its equipment.

The company's gross profit also saw a substantial increase, rising to $6.1 million from $2.8 million, marking a 120% improvement year-over-year. This growth in gross profit was largely due to the higher sales volumes in the current period. Operating expenses increased to $10.98 million from $9.82 million, driven by higher selling, general, and administrative costs, which rose by 16% due to increased wages and royalties associated with the higher sales volumes. As a result, Smart Sand reported a net loss of $3.86 million, a significant reduction from the $24.23 million loss recorded in the same quarter of 2025.

In terms of operational developments, Smart Sand continues to expand its geographic footprint and product offerings. The company operates multiple frac sand mines and processing facilities, with a total annual processing capacity of approximately 10 million tons across its facilities in Wisconsin and Illinois. The company has also been actively enhancing its Industrial Products Solutions (IPS) business, which serves a diverse range of industrial markets. The recent installation of blending and cooling equipment at its Ottawa facility is expected to further diversify its customer base.

Smart Sand's liquidity position remains strong, with cash and cash equivalents totaling $19.5 million as of March 31, 2026, and an undrawn availability of $30 million under its FCB ABL Credit Facility. The company declared a special dividend of $0.10 per share, returning approximately $3.9 million to shareholders. Looking ahead, Smart Sand anticipates capital expenditures between $15 million and $20 million for 2026, primarily for the development of new mining areas and efficiency projects. The company remains optimistic about the demand for frac sand, driven by long-term natural gas needs and increased drilling activities, while also monitoring potential impacts from geopolitical events and market conditions.