Smart Sand, Inc.SND
Smart Sand, Inc. Segments Disclosure
NOTE 11 — Segment Reporting
The Company has two reportable segments, Sand and SmartSystems as of December 31, 2025. The Company evaluates its segment reporting on an ongoing basis and has changed its reporting in the current period and applied that reporting retrospectively to the prior periods presented. The accounting policies for the segments are not different from the accounting policies for the Company. The Company does not currently provide asset information by reportable segment as it does not routinely evaluate the total asset position by segment. The Company’s operations in foreign countries are immaterial. The chief operating decision maker (“CODM”) is Charles Young, the Company’s chief executive officer. The CODM regularly reviews the Company’s GAAP financial statements, as well as the non-GAAP reporting measures when considering the profit and loss of the company and uses this information in deciding how to allocate resources.
The Sand segment includes both frac sand sales and IPS sales. The sand production process begins the same way for each of these revenue streams. Frac Sand consists of four primary sizes of sand, called grades. IPS begins with these same frac sand grades and may contain additional sizes or custom blends of a variety of grades.
The SmartSystems segment revenue is primarily from the rental of our patented SmartSystems equipment and related services provided to customers. This segment offers customers portable wellsite storage and management solutions that enable customers to unload, store, and deliver proppant at the wellsite.
During the year ended December 31, 2025, two of the Company’s customers had revenues of more than 10%. Of these two customers, all had revenues in the Sand segment. Sand segment revenue for the year ended December 31, 2025 includes $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. Sand segment revenue for the year ended December 31, 2024 includes $4.8 million related to contractual charges for tons sold in excess of certain contractual thresholds.
The following tables present additional segment information for the year ended December 31, 2025 and a reconciliation to amounts on the Consolidated Statement of Operations.
| Sand | SmartSystems | Total | |||||||||||||||
| Revenue | $ | 325,762 | $ | 4,391 | $ | 330,153 | |||||||||||
| Segment cost of goods sold | |||||||||||||||||
| Logistics costs | $ | 181,982 | $ | — | $ | 181,982 | |||||||||||
| Production costs | 80,828 | — | 80,828 | ||||||||||||||
| Depreciation, depletion, and accretion of asset retirement obligations | 25,001 | 2,202 | 27,203 | ||||||||||||||
Other costs (1) | — | 2,252 | 2,252 | ||||||||||||||
| Total cost of goods sold | $ | 287,811 | $ | 4,454 | $ | 292,265 | |||||||||||
| Gross profit | $ | 37,951 | $ | (63) | $ | 37,888 | |||||||||||
| Total operating expenses | 42,348 | ||||||||||||||||
| Total other (expenses), net | (1,126) | ||||||||||||||||
| Income tax (benefit) expense | (6,931) | ||||||||||||||||
| Net income | $ | 1,345 | |||||||||||||||
| Capital expenditures on property, plant and equipment | $ | 14,444 | $ | 31 | |||||||||||||
(1) Other costs primarily consist of labor and benefits, consumables, equipment‑related costs, maintenance, utilities, and other operational support expenses. | |||||||||||||||||
The following tables present additional segment information for the year ended December 31, 2024 and a reconciliation to amounts on the Consolidated Statement of Operations.
| Sand | SmartSystems | Total | |||||||||||||||
| Revenue | $ | 303,590 | $ | 7,782 | $ | 311,372 | |||||||||||
| Segment cost of goods sold | |||||||||||||||||
| Logistics costs | $ | 154,628 | $ | — | $ | 154,628 | |||||||||||
| Production costs | 78,919 | — | 78,919 | ||||||||||||||
| Depreciation, depletion, and accretion of asset retirement obligations | 24,727 | 2,134 | 26,861 | ||||||||||||||
Other costs (1) | 538 | 5,603 | 6,141 | ||||||||||||||
| Total cost of goods sold | $ | 258,812 | $ | 7,737 | $ | 266,549 | |||||||||||
| Gross profit | $ | 44,778 | $ | 45 | $ | 44,823 | |||||||||||
| Total operating expenses | 41,819 | ||||||||||||||||
| Total other (expenses), net | (2,752) | ||||||||||||||||
| Income tax (benefit) expense | (2,740) | ||||||||||||||||
| Net income | $ | 2,992 | |||||||||||||||
| Capital expenditures on property, plant and equipment | $ | 8,249 | $ | 1,237 | |||||||||||||
(1) Other costs primarily consist of labor and benefits, consumables, equipment‑related costs, maintenance, utilities, and other operational support expenses. | |||||||||||||||||
The following tables present additional segment information for the year ended December 31, 2023 and a reconciliation to amounts on the Consolidated Statement of Operations.
| Sand | SmartSystems | Total | |||||||||||||||
| Revenue | $ | 287,479 | $ | 8,494 | $ | 295,973 | |||||||||||
| Segment cost of goods sold | |||||||||||||||||
| Logistics costs | $ | 152,260 | $ | — | $ | 152,260 | |||||||||||
| Production costs | 70,298 | — | 70,298 | ||||||||||||||
| Depreciation, depletion, and accretion of asset retirement obligations | 23,287 | 2,182 | 25,469 | ||||||||||||||
Other costs (1) | 1,336 | 5,055 | 6,391 | ||||||||||||||
| Total cost of goods sold | $ | 247,181 | $ | 7,237 | $ | 254,418 | |||||||||||
| Gross profit | $ | 40,298 | $ | 1,257 | $ | 41,555 | |||||||||||
| Total operating expenses | 43,059 | ||||||||||||||||
| Total other (expenses), net | (748) | ||||||||||||||||
| Income tax (benefit) expense | (6,901) | ||||||||||||||||
| Net income | $ | 4,649 | |||||||||||||||
| Capital expenditures on property, plant and equipment | $ | 19,700 | $ | 3,756 | |||||||||||||
(1) Other costs primarily consist of labor and benefits, consumables, equipment‑related costs, maintenance, utilities, and other operational support expenses. | |||||||||||||||||
The following table presents revenue by geographic location, based on the country in which delivery to the customer occurred for the years ended December 31, 2025, 2024 and 2023:
| 2025 | 2024 | 2023 | |||||||||||||||
| United States | $ | 298,252 | $ | 309,472 | $ | 295,108 | |||||||||||
| Canada | 31,901 | 1,900 | 865 | ||||||||||||||
| Total Revenue | $ | 330,153 | $ | 311,372 | $ | 295,973 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Mar 4, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.