SND

2Q 2026 revenue of $115.1 million 2Q 2026 net income of $10.2 million 2Q 2026 cash flow provided by operations of $3.4 million 2Q 2026 contribution margin $27.1 million 2Q 2026 Adjusted EBITDA of $18.7 million 2Q 2026 free cash flow of $(1.4) million YARDLEY, Pa., Aug. 11, 2026 /PRNewswire/ -- Smart Sand, Inc. (NASDAQ: SND) (the "Company" or "Smart Sand"), a leading supplier of premium Northern White frac sand and industrial sand and a proppant logistics solutions provider, today announced results for the second quarter of 2026. "The second quarter was one of the best quarters in Smart Sand's history," said Charles Young, Smart Sand's Chief Executive Officer. "We achieved record quarterly sales volumes and revenues and, excluding one-time items, generated record contribution margin and Adjusted EBITDA. While delivering record performance, we maintained a strong cash position and low leverage levels. Including the dividend that will be paid on August 12th, we will have returned approximately $12.1 million of capital to shareholders year to date in 2026 through share repurchases and dividends." "Our outstanding operational and financial performance in the first half of 2026 demonstrates the dedication of our employees and the value of the Northern White sand franchise we have built," Young continued. "We have seen strong demand across the key operating basins we serve, and we expect this demand to continue into the second half of 2026. Expected long-term growth in North American natural gas demand, driven by expanding LNG export capacity and increased gas-fired power generation to support electricity demand from AI data centers, continues to support consistent well completion activity, particularly in the Appalachian Basin in the Northeast United States and Canadian shale basins." "Our Industrial Product Solution sales volumes grew sequentially, and we expect to see continued growth in this business segment. Our redesigned SmartSystems fleet also continued to perform well in the quarter," Young said. "We expect activity levels to remain strong through the third quarter and potentially into the fourth quarter. Based on our strong first half results and current demand levels, we expect 2026 sales volumes to increase by 10% to 20% compared with 2025 sales volumes. We expect to generate positive free cash flow in 2026." Second Quarter 2026 Highlights In the second quarter of 2026, tons sold totaled approximately 1,864,000, compared to 1,492,000 tons in the first quarter of 2026 and 1,424,000 tons in the second quarter of 2025, reflecting a 25% sequential increase and a 31% year-over-year increase. Revenues in the second quarter of 2026 were $115.1 million, compared to $93.1 million in the first quarter of 2026 and $85.8 million in the second quarter of 2025. The increase in revenue sequentially and year over year was primarily driven by higher sales volumes and higher average selling prices. Cost of goods sold increased to $95.2 million for the second quarter of 2026, up from $87.0 million for the first quarter of 2026 and $76.8 million for the second quarter of 2025. The increase sequentially was primarily due to an increase in freight and transload costs due to higher sales volumes. While higher sales volumes led to overall increased freight costs, we experienced an increase in volumes sold through Smart Sand controlled terminals that allowed us to have more cost efficient logistics costs per ton sold than selling through third party terminals. The increase over the prior year period was primarily due to higher sales volumes and the related increase in mining, production and freight costs. Gross profit for the second quarter of 2026 was $19.8 million compared to $6.1 million in the first quarter of 2026 and $9.0 million in the second quarter of 2025. Gross profit increased sequentially and year over year primarily due to increased sales volumes and slightly higher pricing, which was partially offset by an increase in cost of goods sold. Operating expenses for the second quarter of 2026 were $9.8 million, down from $11.0 million for the first quarter of 2026 and up from $9.0 million for the second quarter of 2025. Operating expenses were lower in the second quarter of 2026 compared to the first quarter of 2026 primarily due to decreased wages and benefits. Operating expenses increased from the second quarter of 2025 primarily due to increased royalties associated with higher sales volumes. Total other income for the second quarter of 2026 was $0.2 million, up from total other expenses in the first quarter of 2026 of $0.2 million and second quarter of 2025 of $0.3 million. Total interest expense for the second quarter of 2026 was $0.3 million, consistent with interest expense in the first quarter of 2026 and second quarter of 2025. In the second quarter of 2026, the Company recorded a net income of $10.2 million, or $0.26 per basic and diluted share. The Company had a net loss of $(3.9) million, or $(0.10) per basic and diluted share, for the first quarter of 2026 and a net income of $21.4 million, or $0.55 per basic and diluted share, for the second quarter of 2025. Net income increased in the current period compared to the first quarter of 2026 primarily due to higher sales volumes and modest pricing improvements, which was offset by the increase in cost of goods sold associated with those volumes, while keeping operating expenses relatively consistent. Our income tax expense (benefit) further contributed to the difference in net income between the current and prior periods. Contribution margin in the second quarter of 2026 was $27.1 million, or $14.54 per ton sold, compared to $13.2 million, or $8.84 per ton sold, in the first quarter of 2026 and $15.8 million, or $11.08 per ton sold, in the second quarter of 2025. Contribution margin was higher sequentially and year over year due primarily to increased revenue from higher sales volumes. Incrementally higher volumes led to increased contribution margin and contribution margin per ton as fixed operating costs were spread over larger sales volumes. Adjusted EBITDA was $18.7 million in the second quarter of 2026, up from $3.8 million in the first quarter of 2026 and $7.8 million in the second quarter of 2025. The increase in Adjusted EBITDA from the first quarter of 2026 and the second quarter of 2025 was primarily due to higher sales volumes, partially offset by increased production and logistics costs associated with higher sand sales. Free cash flow in the second quarter of 2026 was $(1.4) million, compared to $0.8 million in the first quarter of 2026 and $(7.8) million in the second quarter of 2025. The decrease sequentially was primarily due to an increase in purchases of property, plant and equipment. The increase year over year was primarily due to an increase in net cash provided by operating activities from an increase in conversion of our working capital. The $(1.4) million free cash flow in the second quarter of 2026 resulted from net cash provided by operating activities of $3.4 million and capital expenditures of $4.8 million. Through June 30, 2026, the Company has spent approximately $7.0 million in capital expenditures. The Company currently projects full year 2026 capital expenditures to range between $15.0 million and $20.0 million, excluding acquisitions and potential investments in new terminals, and anticipates being free cash flow positive for 2026. Liquidity In the second quarter of 2026, the Company repurchased 470,088 shares of its common stock for $2.5 million under its share repurchase program. On February 23, 2026, the Company's board of directors approved a share repurchase program authorizing the Company to repurchase up to $20.0 million of its outstanding shares of common stock (the "New Repurchase Program"). The New Repurchase Program took effect on April 3, 2026 after completion of the Company's prior share repurchase program and will continue through April 2, 2028. The timing, manner, price, and amount of any repurchases under the New Repurchase Program will be determined at the Company's discretion. Purchases may be effected through open market transactions, privately negotiated transactions, transactions structured through investment banking institutions, or other means. The New Repurchase Program does not obligate the Company to acquire any particular amount of shares and the New Repurchase Program may be modified or suspended at any time at the Company's discretion. On July 16, 2026, the Company's board of directors declared a special dividend of $0.10 per share of common stock, which will be paid on August 12, 2026 to shareholders of record at the close of business on July 28, 2026. The dividend payment will return approximately $4.2 million to shareholders. On April 9, 2026, the Company's board of directors declared a special dividend of $0.10 per share of common stock, which was paid on May 5, 2026 to shareholders of record at the close of business on April 22, 2026. The dividend payment distributed approximately $3.9 million to shareholders. Including the dividend to be paid on August 12th, year to date in 2026, the Company has returned approximately $12.1 million to shareholders through dividends and share repurchases. The Company's primary sources of liquidity consist of cash on hand, cash flow from operations, and available borrowings under the Company's FCB ABL Credit Facility. As of June 30, 2026, cash on hand was $10.2 million and the Company had $30.0 million in undrawn availability under the FCB ABL Credit Facility. Leadership Transition In August 2026, the Company's board of directors approved the transition of the role of Chief Financial Officer from Lee Beckelman to James Young, effective January 1, 2027. Lee Beckelman will remain with the Company as an advisor to the CFO to assist with the transition and other projects that may arise. "I want to thank Lee for his years of service to Smart Sand as CFO," stated Charles Young. "Lee will continue to support the Company in an advisory capacity going forward. I am excited to have James Young transition into the CFO role from his current position as General Counsel. James' years of experience with Smart Sand will allow him to smoothly transition into his new role and provide the financial and strategic leadership that the Company needs going forward." Effective January 1, 2027, Stephen Brill will be promoted to General Counsel from his current position of Associate General Counsel for Smart Sand. 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 June 30, 2026, filed by the Company with the SEC on August 11, 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 logistics 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 Wisconsin and Illinois, which have access to four Class I rail lines, allowing the Company to deliver products substantially anywhere in the United States and Canada. For more information, please visit www.smartsand.com. Non-GAAP Financial Measures Contribution Margin The Company 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. 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 items and unusual or non-recurring items. 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 income (loss) to EBITDA and Adjusted EBITDA for each of the periods indicated. 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. Investor Contacts: Lee BeckelmanChief Financial Officer(281) [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/smart-sand-inc-announces-second-quarter-2026-results-302848832.html

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 YARDLEY, Pa., May 12, 2026 /PRNewswire/ -- Smart Sand, Inc. (NASDAQ: SND) (the "Company" or "Smart Sand"), a leading supplier of premium Northern White frac sand and industrial sand and a proppant logistics solutions provider, today announced results for the first quarter of 2026. "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 $5.7 million to shareholders through stock repurchases and dividends. During the quarter, we saw increasing sales activity in the Appalachian Basins and consistent activity in the Bakken Formation and the Montney and Duvernay shales in Canada." "We remain focused on being the premier provider of Northern White sand in North America," Young continued. "Our strategic investments in our Blair, Wisconsin facility and our two terminals in Ohio are key drivers of increasing sales activity in the Utica Shale and across Canadian basins. We have positioned Smart Sand to benefit from expected long-term growth in North American natural gas demand driven by expanding LNG export capacity and increasing gas-fired power generation to support AI data center electricity needs." "We continue to expand our Industrial Products Solutions business, primarily through our Ottawa, Illinois facility. Industrial sales volumes in the first quarter of 2026 were consistent with the fourth quarter of 2025, and we currently expect industrial sales volumes to increase year over year," Young said. "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 $30 million credit facility. We expect to generate positive free cash flow in 2026, with sales volume growth in the 5% to 10% range over 2025 tons sold." 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 1% sequential increase and a 40% year-over-year increase. Revenues in the first quarter of 2026 were $93.1 million, compared to $86.0 million in the fourth quarter of 2025 and $65.6 million in the first quarter of 2025. The increase in revenue sequentially and year over year was primarily driven by higher sales volumes and higher average selling prices. Cost of goods sold increased to $87.0 million for the first quarter of 2026, up from $74.8 million for the fourth quarter of 2025 and $62.8 million for the first quarter of 2025. The increase sequentially was primarily due to higher production and freight costs on similar volumes. The higher production costs, compared to the previous quarter, were primarily driven by increased drawdown and expensing of inventory to meet sales volumes levels for the first quarter 2026. The higher freight expense, compared to the fourth quarter 2025, was due primarily to the location mix of sand sales. The increase over the prior year period was primarily due to an increase in sales volumes. Gross profit for the first quarter of 2026 was $6.1 million compared to $11.2 million in the fourth quarter of 2025 and $2.8 million in the first quarter of 2025. Gross profit decreased sequentially due to higher production and freight costs and increased over the prior year period due to the increase in sales volumes. Operating expenses for the first quarter of 2026 were $11.0 million, down from $13.9 million for the fourth quarter of 2025 and up from $9.8 million for the first quarter of 2025. Selling, general and administrative costs were higher in the fourth quarter of 2025 due to higher wages of $2.9 million related to increased incentive compensation in the quarter and a $1.0 million payment to one of our utility providers in connection with planned growth at our Oakdale facility. Operating expenses increased from the first quarter of 2025 primarily due to increased wages and royalties associated with increased sales volumes. Total other expenses for the first quarter of 2026 were $0.2 million, consistent with both the fourth quarter of 2025 and the first quarter of 2025. In the first quarter of 2026, the Company recorded a net loss of $(3.9) million, or $(0.10) per basic and diluted share. The Company had net income of $1.2 million, or $0.03 per basic and diluted share, for the fourth quarter of 2025 and a net loss of $(24.2) million, or $(0.62) per basic and diluted share, for the first quarter of 2025. The fluctuations in net income are primarily driven by non-cash deferred income tax expense. Income tax expense / (benefit) often distorts the Company's results of operations due primarily to deferred tax variances. The Company is required to record its interim period income tax expense / (benefit) in accordance with GAAP, which requires that the Company estimate its full year effective tax rate and apply that rate to the net income for the period. The Company's effective tax rate includes modifications from the statutory rate for items such as income tax credits, tax depletion deduction, valuation allowance, and state apportionment changes, among other items. The biggest driver of the Company's income tax expense / (benefit) is the depletion deduction calculation, which is not directly related to the net income of the Company. This tax deduction has an equally large effect on the Company's income tax rate, which is the basis for the quarterly income tax expense / (benefit) calculation. The Company does not expect to be a payer of federal income tax in 2026 and expects to pay an immaterial amount of state income taxes in 2026. Because of the difference between income tax recorded on a GAAP basis and the cash taxes the Company expects to pay, the Company uses additional non-GAAP performance measures of contribution margin, Adjusted EBITDA, and free cash flow to evaluate its results of operations. Contribution margin in the first quarter of 2026 was $13.2 million, or $8.84 per ton sold, compared to $18.0 million, or $12.18 per ton sold, in the fourth quarter of 2025 and $9.6 million, or $8.96 per ton sold, in the first quarter of 2025. Contribution margin was lower in the first quarter of 2026 compared to the fourth quarter of 2025 primarily due to increased production and logistics costs. Contribution margin was higher in the first quarter of 2026 compared to the first quarter of 2025 due to increased sales volumes and higher average selling prices. Adjusted EBITDA was $3.8 million in the first quarter of 2026 down from $7.1 million in the fourth quarter of 2025 and up from $1.4 million in the first quarter of 2025. The decrease in Adjusted EBITDA from the fourth quarter of 2025 is due to an increase in production and logistics costs. The increase in Adjusted EBITDA from the first quarter of 2025 is primarily due to an increase in sales volumes with slightly higher average selling prices offset by an increase in production and logistics costs associated with higher sand sales. Net cash provided by operating activities in the first quarter of 2026 was $3.0 million, compared to $22.4 million provided in the fourth quarter of 2025 and $8.7 million provided in the first quarter of 2025. Net cash provided by operating activities in the fourth quarter of 2025 included a customer prepayment for sand that was in deferred revenue as well as a $4.4 million payment received related to contractual charges for tons sold in excess of certain contractual thresholds. The revenue associated with the customer prepayment from the fourth quarter 2025 was fully recognized in the first quarter of 2026. In the first quarter of 2026, free cash flow was $0.8 million, resulting from net cash provided by operating activities of $3.0 million and capital expenditures of $2.2 million. The Company currently projects full year 2026 capital expenditures to range between $15.0 million and $20.0 million, excluding potential investments in new terminals, and anticipates being free cash flow positive for 2026. Liquidity In the first quarter of 2026, the Company repurchased 343,998 shares of its common stock for $1.4 million under its share repurchase program. On October 3, 2024, the Smart Sand Board of Directors approved an eighteen month share repurchase program under which the Company may purchase up to $10.0 million of its outstanding shares of common stock (the "Prior Repurchase Program"). The Prior Repurchase Program was completed on April 2, 2026. On February 23, 2026, the Company's board of directors approved a share repurchase program authorizing the Company to repurchase up to $20.0 million of its outstanding shares of common stock (the "New Repurchase Program"). The New Repurchase Program took effect on April 3, 2026 after completion of the Prior Repurchase Program and will continue through April 2, 2028. The timing, manner, price, and amount of any repurchases under the New Repurchase Program will be determined at the Company's discretion. Purchases may be effected through open market transactions, privately negotiated transactions, transactions structured through investment banking institutions, or other means. The New Repurchase Program does not obligate the Company to acquire any particular amount of shares and the New Repurchase Program may be modified or suspended at any time at the Company's discretion. On April 9, 2026, the Company's board of directors declared a special dividend of $0.10 per share of common stock, which was paid on May 5, 2026 to stockholders of record at the close of business on April 22, 2026. The dividend payment distributed approximately $3.9 million to shareholders. 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 $19.5 million and the Company had $30.0 million in undrawn availability on the FCB ABL Credit Facility. 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 Wisconsin and Illinois, which have access to four Class I rail lines, allowing the Company to deliver products substantially anywhere in the United States and Canada. For more information, please visit www.smartsand.com. 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. 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. 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. Investor Contacts: Lee Beckelman Chief Financial Officer (281) 231-2660 [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/smart-sand-inc-announces-first-quarter-2026-results-302770064.html

4Q 2025 and full year 2025 revenue of $86.0 million and $330.2 million, respectively. 4Q 2025 and full year 2025 total tons sold of approximately 1,478,000 and 5,443,000, respectively. 4Q 2025 and full year 2025 net cash provided by operating activities of $22.4 million and $44.1 million, respectively. 4Q 2025 and full year 2025 free cash flow of $20.4 million and $32.5 million, respectively, 4Q 2025 Smart Sand declared and paid $0.05 per share dividend to stockholders. Smart Sand's board of directors approved a new two-year repurchase program authorizing the repurchase of up to $20.0 million in ordinary shares of the Company's common stock. YARDLEY, Pa., Feb. 26, 2026 /PRNewswire/ -- Smart Sand, Inc. (NASDAQ: SND) (the "Company" or "Smart Sand"), a fully integrated frac and industrial sand supply and services company, a low-cost producer of high quality Northern White sand, and a proppant logistics solutions provider through both its in-basin transloading terminals and SmartSystemsTM products and services, today announced results for the fourth quarter and full year ended December 31, 2025. "Smart Sand delivered strong results in both the fourth quarter and full year 2025," said Charles Young, Smart Sand's Chief Executive Officer. "The fourth quarter marked our third consecutive quarter with sales volumes exceeding 1.4 million tons. During the quarter we generated more than $20 million in free cash flow and returned approximately $2.0 million to shareholders through dividends. We experienced robust sales activity across our key shale markets, including the Appalachian Basin, the Bakken, and the Montney and Duvernay shales in Canada." "For 2025, we achieved record sales volumes of 5.4 million tons and record free cash flow of approximately $33 million. In 2025, we returned approximately $8 million in capital to our shareholders in dividends and stock buybacks," continued Mr. Young. "We remain focused on providing reliable and cost-effective proppant supply chain execution for our customers by being a low-cost supplier of high-quality Northern White sand, supported by our efficient and sustainable logistics network. We continue to expand our Industrial Products Solutions business, with sales volumes increasing by 60% year over year. During 2025 we focused on improving our last mile product offering through modifications to our SmartSystem design, and we expect to have our first reconfigured system utilized in the field during the first quarter of 2026." "Smart Sand is well positioned to benefit from expected growth in natural gas demand driven by expanding LNG export capacity and rising AI-related power demand, given that the Appalachian Basin and Canadian markets we serve are primarily natural gas-focused. In 2026, Smart Sand plans to further strengthen its leading Northern White sand franchise while maintaining a disciplined and consistent capital return strategy," said Mr. Young. "Alongside market share gains in our core frac sand markets, we expect continued strong growth in our Industrial Products Solutions business. We currently expect to be free cash flow positive in 2026 with sales volumes growth in the five to ten percent range." Full Year 2025 Highlights Total revenue was $330.2 million for the full year 2025, compared to $311.4 million for the full year of 2024. Sand revenue in 2025 was $325.8 million compared to $303.6 million in 2024. Total revenue and sand revenue increased by 6% and 7%, respectively, year-over-year, as a result of increased sand sales volumes at slightly higher average selling prices. Total tons sold were 5,443,000 for the full year 2025, compared to full year 2024 total tons sold of 5,263,000, a 3% increase year-over-year. SmartSystems revenue was $4.4 million for the year ended 2025, a decline from $7.8 million for the year ended 2024. The decline was due to lower overall utilization of our SmartSystems fleet in 2025. Cost of goods sold for the full year 2025 increased by 10% to $292.3 million, compared to $266.5 million for the full year 2024, primarily reflecting increased costs associated with an increase in sales volumes. The year over year increase was primarily due to increased production, freight and other delivery costs. The increase in freight and other delivery costs was due to the delivery location for frac sand sales and increased volumes through third party terminals. Operating expenses for the year ended 2025 were $42.3 million, which was consistent with full year 2024 operating expenses of $41.8 million. Overall, selling, general and administrative costs increased due to increased wages and a $1.0 million payment to one of our utility providers to support planned growth at our Oakdale facility. The increase in selling, general and administrative costs was partially offset by a decrease in bank and legal fees related to the debt refinancing completed in 2024. The gain on disposal of assets of $0.6 million was primarily related to the sale of vacant land that was part of a previous acquisition. The loss on the disposal of assets of $1.1 million for the year ended December 31, 2024 was primarily related to relocating the Company's last mile equipment manufacturing and maintenance facility from Canada to the United States. Total other expenses for the full year 2025 were $1.1 million, compared to $2.8 million for the full year 2024. The decrease from 2024 to 2025 was due to higher interest expense in 2024 from a higher average debt balance outstanding. Additionally, we recorded a $1.3 million loss on extinguishment of debt for the year ended December 31, 2024. Net income was $1.3 million, or $0.03 per basic and diluted share, for the full year 2025, compared with net income of $3.0 million, or $0.08 per basic and diluted share, for the full year 2024. The decrease in net income is attributable to an increase in volumes sold with slightly increased pricing offset by the increase in cost of goods sold due to increased freight and transloading costs. Additionally, a larger benefit from income taxes was recorded in the current period. Net cash provided by operating activities was $44.1 million for the year ended December 31, 2025, derived from net income of $1.3 million, which includes net non-cash items of $28.4 million and $14.4 million in changes in operating assets and liabilities. The net cash provided by operating activities in 2024 was $17.9 million. The increase in net cash provided by operating activities in 2025, compared to 2024, was driven primarily by stronger collections on accounts receivable following several consecutive quarters of higher sales and a customer prepayment for sand sales for 2026, currently in deferred revenue. Contribution margin was $65.1 million, or $11.96 per ton sold, for the full year 2025, compared to $71.7 million, or $13.62 per ton sold, for the full year 2024. The decrease in overall contribution margin for 2025, as compared to the prior year, was primarily due to the increase in logistics costs due to higher sales volumes, the delivery location of our sales and increased mining and production costs. Adjusted EBITDA was $29.9 million for the full year 2025 compared to Adjusted EBITDA of $38.8 million for the full year 2024. The decrease in Adjusted EBITDA for 2025, as compared to the prior year, was primarily due to higher logistics costs due to the delivery location of frac sand sales and higher mining costs. On November 18, 2025, our Board of Directors declared a special dividend of $0.05 per share of common stock, which was paid on December 16, 2025 to stockholders of record at the close of business on December 2, 2025. The dividend payment returned approximately $2.1 million to our shareholders. On July 23, 2025, our Board of Directors declared a special dividend of $0.10 per share of common stock, which was paid on August 14, 2025 to stockholders of record at the close of business on August 4, 2025. The dividend payment returned approximately $4.4 million to our shareholders. On October 3, 2024, our board of directors also approved an eighteen-month share repurchase program under which the Company may purchase up to $10.0 million of its ordinary shares, (the "Repurchase Program"). Pursuant to the Repurchase Program, we may repurchase our ordinary shares from time to time, in amounts, at prices and at such times as management deems appropriate, subject to market conditions and other considerations. In 2025, we repurchased $2.1 million in ordinary shares. Fourth Quarter 2025 Highlights Total revenue was $86.0 million in the fourth quarter of 2025, compared to third quarter of 2025 revenue of $92.8 million. Total revenue decreased 7% sequentially, primarily due to decreased average selling prices. Sand revenue for the third quarter of 2025 also included $4.4 million related to contractual charges for tons sold in excess of certain contractual thresholds in a prior period, which was not recognizable until the current period. Fourth quarter 2025 total revenue decreased by 6% compared to fourth quarter 2024 revenues of $91.4 million. Revenues in the fourth quarter of 2024 included $4.8 million related to contractual charges for tons sold in excess of certain contractual thresholds for the year. Tons sold in the fourth quarter of 2025 were 1,478,000, which is consistent with third quarter 2025 tons sold of 1,472,000. Tons sold in the fourth quarter of 2025 increased by 1% compared to 1,464,000 tons sold in the fourth quarter of 2024. Cost of goods sold in the fourth quarter of 2025 decreased to $74.8 million, compared to $77.8 million in the third quarter of 2025 and $77.9 million in the fourth quarter of 2024. The sequential and year over year decreases were primarily due to decreased freight and delivery costs due to the delivery location of our sales in the fourth quarter. Operating expenses for the fourth quarter of 2025 were $13.9 million, compared to $9.6 million in the third quarter of 2025 and $9.8 million for the fourth quarter 2024. Selling, general and administrative costs increased in the fourth quarter of 2025 due to increased wages of $2.9 million and a $1.0 million payment to one of our utility providers to support planned growth at our Oakdale facility. The increase in selling, general and administrative costs was partially offset by a decrease in bank and legal fees related to the debt refinancing completed in 2024. For the fourth quarter of 2025, the Company had a net income of $1.2 million, or $0.03 per basic and diluted share, compared to net income of $3.0 million, or $0.08 per basic and diluted share, for the third quarter of 2025, and net income of $3.7 million, or $0.10 per basic share and $0.09 per diluted share for the fourth quarter 2024. Net cash provided by operating activities was $22.4 million for the fourth quarter of 2025, derived from net income of $1.2 million, which includes net non-cash items of $6.4 million and $14.9 million in changes in operating assets and liabilities. The net cash provided by operating activities was $18.2 million for the third quarter 2025 and $1.0 million provided in the fourth quarter of 2024. The increase sequentially and year over year was primarily due to an increase in the conversion of our accounts receivables and a customer prepayment for sand sales for 2026, currently in deferred revenue. Contribution margin was $18.0 million, or $12.18 per ton sold, for the fourth quarter of 2025 compared to $21.7 million, or $14.76 per ton sold, for the third quarter of 2025 and $20.2 million, or $13.80 per ton sold, for the fourth quarter of 2024. Adjusted EBITDA was $7.1 million for the fourth quarter of 2025, compared to $13.6 million for the third quarter of 2025 and $11.9 million for the fourth quarter of 2024. Contribution margin and Adjusted EBITDA were lower sequentially primarily due to $4.4 million in revenue in the third quarter of 2025 related to contractual charges for tons sold in excess of certain contractual thresholds in a prior period, which was not recognizable until the third quarter of 2025. Contribution margin and Adjusted EBITDA were lower year over year primarily due to $4.8 million in revenues in the fourth quarter of 2024 related to contractual charges for tons sold in excess of certain contractual thresholds for the year. Capital and Liquidity For the full year 2025, we had positive free cash flow of $32.5 million, generating $44.1 million in cash flow from operations while spending $11.6 million on capital expenditures. For the fourth quarter of 2025, we had $20.4 million in free cash flow, generating $22.4 million in cash flow from operations and spending $2.0 million on capital expenditures. As of December 31, 2025, we had cash on hand of $22.6 million and $30.0 million in undrawn availability on our existing credit facility. For 2026, we currently expect capital expenditures to be in the $15.0 million to $20.0 million range. Included in 2026 budgeted capital expenditures are approximately $12.0 million in mining expansion and potential terminal investments to support future expected sales growth. New Share Repurchase Program On February 23, 2026, the Company's board of directors approved an additional share repurchase program authorizing the Company to repurchase up to $20.0 million of the Company's outstanding shares of common stock (the "New Repurchase Program"). The New Repurchase Program will take effect on April 4, 2026 after expiration of the Company's current Repurchase Program, and continue through April 3, 2028. The timing, manner, price, and amount of any repurchases under the New Repurchase Program will be determined by the Company at its discretion. Purchases may be effected through open market transactions, privately negotiated transactions, transactions structured through investment banking institutions, or other means. The Company is not obligated to repurchase any specific number of shares and the New Repurchase Program may be modified, suspended, or discontinued at any time. Additional Information In addition to reviewing this earnings release, 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 CFO, 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 our Company's current expectations about our future results. We have attempted to identify any forward-looking statements by using words such as "expect," "will," "estimate," "believe" and other similar expressions. Although we believe that the expectations reflected and the assumptions or bases underlying our forward-looking statements are reasonable, we 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 our actual results, events or financial positions to differ materially from those included within or implied by such forward-looking statements. Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements include, but are not limited to, fluctuations in product demand, regulatory changes, adverse weather conditions, increased fuel prices, higher transportation costs, access to capital, increased competition, continued effects of the global pandemic, changes in economic or political conditions, and such other factors discussed or referenced in the "Risk Factors" section of our Company's Form 10-K for the year ended December 31, 2025, to be filed by us with the U.S. Securities and Exchange Commission on February 26, 2026. You should not place undue reliance on our forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake 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 logistics solutions to our 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 and recreation. The Company offers logistics solutions to our customers through its in-basin transloading terminals and SmartSystemsTM wellsite storage and sand management capabilities. Smart Sand owns and operates premium sand mines and related processing facilities in Wisconsin and Illinois, which have access to four Class I rail lines, allowing the Company to deliver products substantially anywhere in the United States and Canada. For more information, please visit www.smartsand.com. Availability of Information on Smart Sand's Website We routinely announce material information using U.S. Securities and Exchange Commission filings, press releases, public conference calls and webcasts and the Smart Sand investor relations website. While not all of the information that we post to the Smart Sand investor relations website is of a material nature, some information could be deemed to be material. Accordingly, we encourage investors, the media, and others interested in Smart Sand to review the information that we share at the "Investors" link located at the top of the page on www.smartsand.com. Non-GAAP Financial Measures Contribution Margin We use contribution margin, which we define as total revenues less costs of goods sold excluding depreciation, depletion and accretion of asset retirement obligations, to measure our financial and operating performance. Contribution margin excludes other operating expenses and income, including costs not directly associated with the operations of the our business such as accounting, human resources, information technology, legal, sales and other administrative activities. 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, our 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 contribution margin to gross profit. EBITDA and Adjusted EBITDA We define EBITDA 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. We define Adjusted EBITDA 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 other acquisition and development costs; 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 our financial statements, such as investors and commercial banks, to assess: the financial performance of our assets without regard to the impact of financing methods, capital structure or historical cost basis of our assets; the viability of capital expenditure projects and the overall rates of return on alternative investment opportunities; our ability to incur and service debt and fund capital expenditures; our operating performance as compared to those of other companies in our industry without regard to the impact of financing methods or capital structure; and our debt covenant compliance, as Adjusted EBITDA is a key component of critical covenants to the FCB ABL Credit Facility. We believe that our presentation of EBITDA and Adjusted EBITDA will provide useful information to investors in assessing our 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 our industry, our 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 EBITDA and Adjusted EBITDA to net income for each of the periods indicated. The following tables present a reconciliation of EBITDA and Adjusted EBITDA to net income for each of the periods indicated: Free Cash Flow Free cash flow, which we define as net cash provided by operating activities less purchases of property, plant and equipment, is used as a supplemental financial measure by our management and by external users of our financial statements, such as investors and commercial banks, to measure the liquidity of our 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 flow may be defined differently by other companies in our industry, our 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 free cash flow to net cash provided by operating activities. Investor Contacts: Lee Beckelman Chief Financial Officer (281) 231-2660 [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/smart-sand-inc-announces-fourth-quarter-2025-and-full-year-2025-results-302698976.html

3Q 2025 revenue of $92.8 million 3Q 2025 net income of $3.0 million 3Q 2025 cash flow provided by operations of $18.2 million 3Q 2025 contribution margin $21.7 million 3Q 2025 Adjusted EBITDA of $13.6 million 3Q 2025 free cash flow of $14.8 million YARDLEY, Pa., Nov. 12, 2025 /PRNewswire/ -- Smart Sand, Inc. (NASDAQ: SND) (the "Company" or "Smart Sand"), a leading supplier of premium Northern White frac sand and industrial sand and a proppant logistics solutions provider, today announced results for the third quarter of 2025. "Smart Sand delivered another strong quarter with third quarter sales volumes, contribution margin, Adjusted EBITDA and free cash flow all increasing from second quarter results," stated Charles Young, Smart Sand's Chief Executive Officer. "Our commitment to opening up new markets for our high quality Northern White sand continued to deliver strong results. In the third quarter, we had record sales volumes into Canada, we continued to broaden our customer base in Industrial Product Solutions and we expanded our presence in the Utica shale through our Ohio terminals. Additionally, we had strong sand sales in our traditional markets of the Marcellus and the Bakken." "Despite continued short term market volatility impacting oil and natural gas prices, we continue to see consistent activity in the primary markets we serve," said Charles Young. "We believe the long-term fundamentals for natural gas are strong. Smart Sand is well positioned to take advantage of the increasing need for increasing natural gas production to support growing LNG export capacity in both the United States and Canada as well as the continued need for increased electric power to support growing AI demand. We have one of the largest reserve bases of fine mesh Northern White sand in North America supported by one of the most extensive sand logistics networks that can deliver sand efficiently and cost effectively to all shale operating basins in North America." "Fourth quarter demand has started off strong, but we do anticipate some potential seasonal slowdown as we approach year end," Charles Young continued. "For the year, we currently expect sales volumes to be in the 5.1 million to 5.4 million range and we expect to be free cash flow positive for the year." "While continuing to grow our leading Northern White sand franchise, we remain committed to returning capital back to our shareholders. In August, we paid a $.10/share dividend and year to date we have bought back 1 million shares under our current share buyback program. Through the end of September, Smart Sand has returned $6.4 million back to our shareholders through share repurchases and special dividends in 2025." Third Quarter 2025 Highlights In the third quarter of 2025, tons sold totaled approximately 1,472,000, compared to 1,424,000 tons in the second quarter of 2025 and 1,189,000 tons in the third quarter of 2024, reflecting a 3% sequential increase and a 24% year-over-year increase. Revenues in the third quarter of 2025 were $92.8 million, compared to $85.8 million in the second quarter of 2025 and $63.2 million in the third quarter of 2024. The increase in revenue sequentially and year over year was primarily driven by higher sales volumes and higher average selling prices. Revenues in the third quarter of 2025 also included a $4.4 million payment related to contractual charges for tons sold in excess of certain contractual thresholds in a prior period. Cost of goods sold increased to $77.8 million for the third quarter of 2025, up from $76.8 million for the second quarter of 2025 and $56.7 million for the third quarter of 2024. The increase is primarily due to an increase in sales volumes. Freight and transloading costs were higher sequentially and year over year primarily due to the delivery locations for frac sand sales and increased sales volumes through third party terminals. Gross profit for the third quarter of 2025 was $14.9 million compared to $9.0 million in the second quarter of 2025 and $6.5 million in the third quarter of 2024. Gross profit increased sequentially and year over year due to the increase in sales volumes and the excess tons payment in the quarter, which was partially offset by higher freight and transloading costs due to delivery locations for the Company's frac sand sales. Operating expenses in the third quarter of 2025 were $9.6 million, up from $9.0 million in the second quarter of 2025 and down from $11.4 million in the third quarter of 2024. In the second quarter of 2025, the Company had a gain on the sale of an asset of $0.7 million related to the sale of vacant land that was part of a previous acquisition. Operating expenses decreased from the third quarter of 2024 primarily due to $1.3 million in banking and legal fees associated with refinancing the Company's ABL facility in September 2024 partially offset by increased royalty expense due to increased sales volumes in the third quarter of 2025. Total other expenses for the third quarter of 2025 were $0.3 million, consistent with both the second quarter of 2025 and the third quarter of 2024. In the third quarter of 2025, the Company recorded a net income of $3.0 million, or $0.08 per basic and diluted share. The Company had net income of $21.4 million, or $0.55 per basic and diluted share, for the second quarter of 2025 and a net loss of $(0.1) million, or $0.00 per basic and diluted share, for the third quarter of 2024. The fluctuations in net income are primarily driven by non-cash deferred income tax expense. Income tax expense / (benefit) often distorts the Company's results of operations due primarily to deferred tax variances. The Company is required to record its interim period income tax expense / (benefit) in accordance with GAAP, which requires that the Company estimate its full year effective tax rate and apply that rate to the net income for the period. The Company's effective tax rate includes modifications from the statutory rate for items such as income tax credits, tax depletion deduction, carrybacks, and state apportionment changes, among other items. The biggest driver of the Company's income tax expense / (benefit) is the depletion deduction calculation, which is not directly related to the net income of the Company. This tax deduction has an equally large effect on the Company's income tax rate, which is the basis for the quarterly income tax expense / (benefit) calculation. The Company does not expect to be a payer of federal income tax in 2025 and expects to pay an immaterial amount of state income taxes in 2025. Because of the difference between income tax recorded on a GAAP basis and the cash taxes the Company expects to pay, the Company uses additional non-GAAP performance measures of contribution margin, Adjusted EBITDA, and free cash flow to evaluate its results of operations. Contribution margin in the third quarter of 2025 was $21.7 million, or $14.76 per ton sold, compared to $15.8 million, or $11.08 per ton sold, in the second quarter of 2025 and $13.2 million, or $11.09 per ton sold, in the third quarter of 2024. Adjusted EBITDA was $13.6 million in the third quarter of 2025 up from $7.8 million in the second quarter of 2025 and from $5.7 million in the third quarter of 2024. The sequential and year over year increase in contribution margin and Adjusted EBITDA were primarily driven by higher sales volumes, higher average selling prices and the excess ton payment of $4.4 million, partially offset by an increase in cost of goods sold due to higher production costs from higher sales volumes and increased logistics costs due to sand delivery locations. Net cash provided by operating activities in the third quarter of 2025 was $18.2 million, compared to $(5.1) million used in the second quarter of 2025 and $5.8 million provided in the third quarter of 2024. The increase sequentially and year over year was primarily due to higher cash collections on increased sand sales volumes and higher average selling prices. In the third quarter of 2025, free cash flow was $14.8 million, resulting from net cash provided by operating activities of $18.2 million and capital expenditures of $3.4 million. The Company currently projects full year 2025 capital expenditures to range between $15.0 million and $17.0 million, excluding acquisitions, and anticipates being free cash flow positive for 2025. Liquidity In the third quarter of 2025, the Company repurchased 13,627 shares of its common stock for $28.2 thousand under its share repurchase program. On October 3, 2024, the Smart Sand Board of Directors approved an eighteen month share repurchase program under which the Company may purchase up to $10.0 million of its ordinary shares (the "Repurchase Program"). Pursuant to the Repurchase Program, the Company may repurchase its ordinary shares from time to time, in amounts, at prices and at such times as management deems appropriate, subject to market conditions and other considerations. Management may make repurchases in the open market, privately negotiated transactions, accelerated repurchase programs or structured share repurchase programs. The Repurchase Program will be conducted in compliance with applicable legal requirements and shall be subject to market conditions and other factors. The Repurchase Program does not obligate management to acquire any particular amount of ordinary shares and the Repurchase Program may be modified or suspended at any time. The remaining amount that may be repurchased as of September 30, 2025 is $7.9 million of ordinary shares. On July 23, 2025, the Company's board of directors declared a special cash dividend on the Company's common stock of $0.10 per share, or $4.3 million, which was paid on August 14, 2025, to stockholders of record as of the close of business on August 4, 2025. 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 September 30, 2025, cash on hand was $5.1 million and the Company had $30.0 million in undrawn availability on the FCB ABL Credit Facility. 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 CFO, 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, 2024, filed by the Company with the U.S. Securities and Exchange Commission ("SEC") on March 11, 2024, and in the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, filed by the Company with the SEC on November 12, 2025. 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 Wisconsin and Illinois, which have access to four Class I rail lines, allowing the Company to deliver products substantially anywhere in the United States and Canada. For more information, please visit www.smartsand.com. 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. 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. 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. Investor Contacts: Lee Beckelman Chief Financial Officer (281) 231-2660 [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/smart-sand-inc-announces-third-quarter-2025-results-302613018.html

2Q 2025 revenue of $85.8 million 2Q 2025 net income of $21.4 million which includes a $(21.7) million tax benefit 2Q 2025 cash flow used in operations of $(5.1) million 2Q 2025 contribution margin $15.8 million 2Q 2025 Adjusted EBITDA of $7.8 million 2Q 2025 free cash flow of $(7.8) million YARDLEY, Pa., Aug. 12, 2025 /PRNewswire/ -- Smart Sand, Inc. (NASDAQ: SND) (the "Company" or "Smart Sand"), a leading supplier of premium Northern White frac sand and industrial sand and a proppant logistics solutions provider, today announced results for the second quarter of 2025. "Smart Sand delivered robust sales volumes and improved profitability in the second quarter" stated Charles Young, Smart Sand's Chief Executive Officer. "Our sales volumes rose 33% and our Adjusted EBITDA grew by $6.3M, compared to the first quarter. Strategic investments in our Blair and Ottawa facilities and our Utica Shale terminals have driven higher frac sand sales into the Northeast United States and Canada, while our Industrial Production Solutions ("IPS") business continues to gain traction." "In the second quarter, our IPS sales volumes increased 28% from the first quarter, accounting for 6% of our total sales volumes in the first half of 2025. Frac sand sales into the Utica basin continued to grow, representing 16% of our total sales volumes through June 30th, primarily via our Ohio terminals." "We remain committed to returning capital to shareholders while growing our business by optimizing our industry-leading Northern White sand assets," Young added. "So far this year, we have repurchased approximately 1 million shares and declared a $0.10/share dividend, payable on August 14, 2025, bringing 2025 shareholder returns to $6.4 million through August 14, 2025. Since January 2023, we have returned a total of $19.6 million in capital to our shareholders through a combination of stock buybacks and special dividends, and we will continue to look for opportunities to provide value to our shareholders." "Despite market volatility impacting customer activity, our strong balance sheet, low debt and ample liquidity levels position us well to navigate fluctuating oil and gas industry cycles. We expect sales volumes in the second half of 2025 to align with the first half of 2025 and we anticipate being free cash flow positive for the year," said Young. "Long term fundamentals are strong for Northern White sand, driven by natural gas development in North America, LNG investments, and growing demand for data centers to support AI. With our robust logistics network and ample capacity of fine mesh Northern White sand, we are well positioned to grow our market share in the key Montney and Duvernay shale markets of Canada, and remain a leading supplier to the Appalachian and Bakken basins." Second Quarter 2025 Highlights In the second quarter of 2025, tons sold totaled approximately 1,424,000, compared to 1,069,000 tons in the first quarter of 2025 and 1,274,000 tons in the second quarter of 2024, reflecting a 33% sequential increase and a 12% year-over-year increase. Revenues in the second quarter of 2025 were $85.8 million, compared to $65.6 million in the first quarter of 2025 and $73.8 million in the second quarter of 2024. This increase sequentially was primarily driven by higher sales volumes partially offset by lower average selling prices, reflecting a more balanced supply and demand for Northern White sand currently. Revenues were higher year over year due to higher sales volumes and higher average selling prices. Cost of goods sold increased to $76.8 million for the second quarter of 2025, up from $62.8 million for the first quarter of 2025 and $60.7 million for the second quarter of 2024, primarily reflecting an increase in sales volumes. Freight and other delivery costs were higher sequentially and year over year primarily due to delivery location for frac sand sales and increased sales volumes through third party terminals. Gross profit for the second quarter of 2025 was $9.0 million compared to $2.8 million in the first quarter of 2025 and $13.1 million in the second quarter of 2024. Gross profit increased sequentially due to the increase in sales volumes. Gross profit was lower than second quarter of 2024 results primarily due to higher freight and transloading expenses due to the delivery location for frac sand sales. Operating expenses in the second quarter of 2025 were $9.0 million, down from $9.8 million in the first quarter of 2025 and $9.5 million in the second quarter of 2024. In the second quarter of 2025, we had a gain on the sale of an asset of $0.7 million related to the sale of vacant land that was part of a previous acquisition. Total other expenses for the second quarter of 2025 were $0.3 million, up from $0.2 million in both the first quarter of 2025 and the second quarter of 2024. In the second quarter of 2025, the Company recorded a net income of $21.4 million, or $0.55 per basic and diluted share. The Company had a net loss of $(24.2) million, or $(0.62) per basic and diluted share, for the first quarter of 2025 and a net loss of $(0.4) million, or $(0.01) per basic and diluted share, for the second quarter of 2024. The fluctuations in net income are primarily driven by non-cash deferred income tax expense. Income tax expense / (benefit) often distorts our results of operations due primarily to deferred tax variances. We are required to record our interim period income tax expense / (benefit) in accordance with GAAP, which requires that we estimate our full year effective tax rate and apply that rate to the net income for the period. Our effective tax rate includes modifications from the statutory rate for items such as income tax credits, tax depletion deduction, carrybacks, and state apportionment changes, among other items. The biggest driver of our income tax expense / (benefit) is our depletion deduction calculation, which is not directly related to the net income of our Company. This tax deduction has an equally large effect on our income tax rate, which is the basis for the quarterly income tax expense / (benefit) calculation. We do not expect to be a payer of federal income tax in 2025 and we expect to pay an immaterial amount of state income taxes in 2025. Because of the difference between income tax recorded on a GAAP basis and the cash taxes we expect to pay, we use additional non-GAAP performance measures of contribution margin, Adjusted EBITDA, and free cash flow to evaluate our results of operations. Contribution margin in the second quarter of 2025 was $15.8 million, or $11.08 per ton sold, compared to $9.6 million, or $8.96 per ton sold, in the first quarter of 2025 and $19.8 million, or $15.53 per ton sold, in the second quarter of 2024. Adjusted EBITDA was $7.8 million in the second quarter of 2025 up from $1.4 million in the first quarter of 2025 and down from $11.9 million in the second quarter of 2024. The sequential increase in contribution margin and Adjusted EBITDA were primarily driven by higher sales volumes partially offset by lower average selling prices and an increase in cost of goods sold due to higher production costs from higher sales volumes and increased logistics costs due to delivery location. The year-over-year decline in contribution margin and Adjusted EBITDA were primarily driven by an increase in cost of goods sold due to increased logistics and production costs. Net cash used in operating activities in the second quarter of 2025 was $(5.1) million, a decline from $8.7 million generated in the first quarter of 2025 and net cash provided by operating activities of $14.9 million in the second quarter of 2024. The decrease sequentially and year over year was primarily due to the timing between customer collections and payables related to the increased sand shipments to our customers in the second quarter of 2025. In the second quarter of 2025, free cash flow was $(7.8) million, net cash used in operating activities was $(5.1) million, and capital expenditures were $2.7 million. We currently project full year 2025 capital expenditures to range between $13.0 million and $17.0 million. We anticipate being free cash flow positive for 2025. Liquidity In the second quarter of 2025, the Company repurchased 854,779 shares of its common stock for $1.8 million under its share repurchase program. On October 3, 2024, the Smart Sand Board of Directors approved an eighteen month share repurchase program under which the Company may purchase up to $10.0 million of its ordinary shares (the "Repurchase Program"). Pursuant to the Repurchase Program, the Company may repurchase its ordinary shares from time to time, in amounts, at prices and at such times as management deems appropriate, subject to market conditions and other considerations. Management may make repurchases in the open market, privately negotiated transactions, accelerated repurchase programs or structured share repurchase programs. The Repurchase Program will be conducted in compliance with applicable legal requirements and shall be subject to market conditions and other factors. The Repurchase Program does not obligate management to acquire any particular amount of ordinary shares and the Repurchase Program may be modified or suspended at any time. The remaining amount that may be repurchased as of June 30, 2025 is $7.9 million of ordinary shares. On July 23, 2025, the Company's board of directors declared a special cash dividend on the Company's common stock of $0.10 per share, or $4.3 million, payable on August 14, 2025, to stockholders of record as of the close of business on August 4, 2025. The Company continues to focus on consistently returning capital back to its shareholders. Through August 14, 2025, Smart Sand will have returned a total of $6.4 million to shareholders through share repurchases and special dividends in 2025. 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 June 30, 2025, cash on hand was $4.3 million and the Company had $21.0 million in undrawn availability on the FCB ABL Credit Facility. 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 CFO, 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 our Company's current expectations about our future results, including the Company's expectations regarding future sales. We have attempted to identify any forward-looking statements by using words such as "expect," "will," "estimate," "believe" and other similar expressions. Although we believe that the expectations reflected and the assumptions or bases underlying our forward-looking statements are reasonable, we 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 our actual results, events or financial positions to differ materially from those included within or implied by such forward-looking statements. Factors that could cause our 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 our 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, 2024, filed by the Company with the U.S. Securities and Exchange Commission ("SEC") on March 11, 2024, and in the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, filed by the Company with the SEC on August 12, 2025. You should not place undue reliance on our forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake 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 our 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 our customers through its in-basin transloading terminals and our SmartSystems wellsite storage capabilities. Smart Sand owns and operates premium sand mines and related processing facilities in Wisconsin and Illinois, which have access to four Class I rail lines, allowing the Company to deliver products substantially anywhere in the United States and Canada. For more information, please visit www.smartsand.com. Non-GAAP Financial Measures Contribution Margin We also use contribution margin, which we define 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. We believe that reporting contribution margin and contribution margin per ton sold provides useful performance metrics to management and external users of our financial statements, such as investors and commercial banks, because these metrics provide an operating and financial measure of our ability, as a combined business, to generate margin in excess of our 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, our 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. EBITDA and Adjusted EBITDA We define EBITDA 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. We define Adjusted EBITDA 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 our financial statements, such as investors and commercial banks, to assess: the financial performance of our assets without regard to the impact of financing methods, capital structure or historical cost basis of our assets; the viability of capital expenditure projects and the overall rates of return on alternative investment opportunities; our ability to incur and service debt and fund capital expenditures; our operating performance as compared to those of other companies in our industry without regard to the impact of financing methods or capital structure; and our debt covenant compliance, as Adjusted EBITDA is a key component of critical covenants to the FCB ABL Credit Facility. We believe that our presentation of EBITDA and Adjusted EBITDA will provide useful information to investors in assessing our 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 our industry, our 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. Free Cash Flow Free cash flow, which we define as net cash provided by operating activities less purchases of property, plant and equipment, is used as a supplemental financial measure by our management and by external users of our financial statements, such as investors and commercial banks, to measure the liquidity of our 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 our industry, our 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. Investor Contacts: Lee Beckelman Chief Financial Officer (281) 231-2660 [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/smart-sand-inc-announces-second-quarter-2025-results-302528180.html SOURCE Smart Sand, Inc.