Smart Sand, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Q3 2026 revenue was $112.3 million, a 4% sequential decrease from Q2 2026 ($115.1 million) and a 21% year-over-year increase from Q3 2025 ($92.8 million).
• Q3 2026 net income was $8.4 million ($0.21 basic, $0.20 diluted per share), compared to $10.2 million ($0.26 basic, $0.25 diluted) in Q2 2026 and $3.0 million ($0.08 basic and diluted) in Q3 2025.
• Cost of goods sold was $93.1 million in Q3 2026, down from $95.2 million in Q2 2026 but up from $77.9 million in Q3 2025.
• Gross profit was $19.2 million in Q3 2026, down from $19.8 million in Q2 2026 and up from $14.9 million in Q3 2025.
• Operating expenses were $10.0 million in Q3 2026, up from $9.8 million in Q2 2026 and $9.5 million in Q3 2025.
• Contribution margin was $26.4 million ($14.82 per ton) in Q3 2026, down from $27.1 million ($14.54 per ton) in Q2 2026 and up from $21.7 million ($14.74 per ton) in Q3 2025.
• Adjusted EBITDA was $18.0 million in Q3 2026, down from $18.7 million in Q2 2026 and up from $13.6 million in Q3 2025.
• Free cash flow was $17.3 million in Q3 2026, compared to $(1.4) million in Q2 2026 and $14.8 million in Q3 2025.
• Net cash provided by operating activities was $21.1 million in Q3 2026.
• Capital expenditures were $3.8 million in Q3 2026; year-to-date capex was approximately $10.8 million.
• Total interest expense was $0.3 million in Q3 2026, consistent with prior quarters.
• As of September 30, 2026, cash on hand was $21.7 million with $50.0 million in undrawn availability under the FCB ABL Credit Facility.
• Total liabilities were $110.3 million as of September 30, 2026, compared to $100.3 million as of December 31, 2025.
• Total stockholders' equity was $242.8 million as of September 30, 2026, compared to $239.7 million as of December 31, 2025.

Guidance and Future Outlook:

• Management expects sales volumes for the full year 2026 to increase by 20% to 30% compared to 2025 sales volumes.
• Management expects to generate positive free cash flow for the full year 2026.
• Full year 2026 capital expenditures are projected to range between $15.0 million and $20.0 million, excluding acquisitions and potential investments in new terminals.
• Management expects robust activity levels in core operating basins to continue through the fourth quarter of 2026 and into 2027.

Business Segments and Product Lines:

• Tons sold totaled approximately 1,783,000 in Q3 2026, a 4% sequential decrease and a 21% year-over-year increase compared to 1,472,000 tons in Q3 2025.
• Revenue growth year-over-year was driven by a 21% increase in sales volumes and higher average selling prices.
• Sequential revenue decline was driven by a 4% decrease in sales volumes, partially offset by slightly higher average selling prices.
• Industrial Product Solution sales volumes continued to grow.
• SmartSystems performed well in the quarter.
• The Company acquired the right to operate a terminal in Williamsport, Pennsylvania, which will become operational in 2027.
• The Company acquired the right to a site in Fort St. John, British Columbia, for potential future terminal development.

Market and Competitive Landscape:

• The Company believes it has built the premier Northern White sand franchise in the industry.
• Management expects to take advantage of continued expected growth in demand for oil and natural gas in North America.
• The Company produces low-cost, high-quality Northern White sand used as a proppant for hydraulic fracturing and in various industrial applications.

Risks and Challenges:

• Forward-looking statements are subject to risks including fluctuations in product demand, delays in expansion projects, regulatory changes, adverse weather, increased fuel prices, higher transportation costs, access to capital, increased competition, and changes in economic or political conditions.
• Actual results may differ materially from expectations due to known and unknown risks and uncertainties.

Management Commentary and Tone:

• CEO Charles Young stated the Company delivered "another outstanding quarter of operational and financial results."
• Management highlighted strong sales volumes, contribution margin, Adjusted EBITDA, and free cash flow generation.
• Management expressed confidence in the growth of the business and the ability to return capital to shareholders while investing in future growth.

Other Key Points:

• The Company returned approximately $14.3 million to shareholders year-to-date in 2026 through dividends and share repurchases.
• On November 5, 2026, the Board declared a special dividend of $0.05 per share, payable November 30, 2026, returning approximately $2.2 million to stockholders.
• A special dividend of $0.10 per share was paid on August 12, 2026, returning approximately $4.2 million.
• A special dividend of $0.10 per share was paid on May 5, 2026, returning approximately $3.9 million.
• On February 23, 2026, the Board approved a new share repurchase program authorizing up to $20.0 million of shares, effective April 3, 2026, through April 2, 2028.
• No shares were repurchased under the program during Q3 2026.
• Deferred revenue was $2.95 million as of September 30, 2026, down from $9.84 million as of December 31, 2025.
• Inventory increased to $39.4 million as of September 30, 2026, from $31.1 million as of December 31, 2025.
• Accounts receivable increased to $33.8 million as of September 30, 2026, from $30.5 million as of December 31, 2025.