Smart Sand (SND) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 2026 reached a record $115.1 million, up 34% year-over-year, driven by a 31% rise in sand sales volumes and modest price improvements.

• Net income for Q2 2026 was $10.2 million ($0.26 per share), down from $21.4 million in Q2 2025, primarily due to a significant prior-year tax benefit.

• Adjusted EBITDA for Q2 2026 rose to $18.7 million from $7.8 million in Q2 2025, reflecting higher sales volumes and stable operating expenses.

• Achieved record quarterly sales volumes and revenues in Q2 2026, with strong demand across key operating basins and continued growth in industrial product solutions.

• Maintained a strong cash position and low leverage, returning $12.1 million to shareholders year-to-date through dividends and share repurchases.

Financial highlights

• Six-month revenue ended June 30, 2026 was $208.2 million, up 38% year-over-year, with sand revenue up 38% and SmartSystems revenue down 20%.

• Gross profit for Q2 2026 was $19.8 million, up from $9.0 million in Q2 2025.

• Contribution margin per ton sold increased to $14.54 in Q2 2026 from $11.08 in Q2 2025.

• Free cash flow for the first half of 2026 was $(0.5) million, an improvement from $(2.6) million in the prior year.

• 2Q 2026 revenue was $115.1 million, up from $93.1 million in 1Q 2026 and $85.8 million in 2Q 2025.

Outlook and guidance

• Management expects continued demand growth for frac sand, driven by increased natural gas activity, LNG export capacity, and data center development.

• Expecting 2026 sales volumes to increase by 10% to 20% over 2025, with continued strong demand in the second half.

• Full-year 2026 capital expenditures are projected between $15 million and $20 million, focused on mine development and efficiency projects.

• Sufficient liquidity is anticipated for the next twelve months, with $10.2 million in cash and $30 million undrawn on the credit facility as of June 30, 2026.

• Anticipates generating positive free cash flow for the full year 2026.