v3.25.2
Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
Disaggregation of Revenue
The Company differentiates revenue based on whether the source of revenue is attributable to product sales, service revenue or rental income. Product, service and rental revenues include sales to related parties as described in Note 17, “Related Party Transactions.”
Total revenue disaggregated by revenue source is as follows (in thousands):
 Three months ended June 30,Six months ended June 30,
 2025202420252024
Revenue:
Products$53,406 $44,694 $107,031 $83,809 
Services1,716 1,458 3,453 2,717 
Rental3,228 — 3,228 — 
$58,350 $46,152 $113,712 $86,526 
Disaggregation of Cost of Sales
The Company differentiates cost of sales based on whether the cost is attributable to tangible goods sold, cost of services sold or other costs that cannot be directly attributed to either tangible goods or services.
Total cost of sales disaggregated is as follows (in thousands):
 Three months ended June 30,Six months ended June 30,
 2025202420252024
Cost of sales:
Tangible goods sold$38,933 $32,215 $77,165 $59,240 
Services147 88 326 182 
Other4,863 4,679 9,365 9,113 
$43,943 $36,982 $86,856 $68,535 
Other cost of sales represents costs directly associated with the generation of revenue that cannot be attributed directly to tangible goods sold or services. Other cost of sales for the three and six months ended June 30, 2025 includes $0.2 million related to the Lease Agreement. Examples of other costs of sales are certain personnel costs and equipment rental and insurance costs.
Cost of sales, disaggregated between external customers and related party, is as follows (in thousands):
 Three months ended June 30,Six months ended June 30,
 2025202420252024
Cost of sales:
Cost of sales for external customers$21,658 $17,486 $43,318 $30,439 
Cost of sales for related party22,285 19,496 43,538 38,096 
$43,943 $36,982 $86,856 $68,535 
Contract Assets
Contract assets are as follows (in thousands):
June 30, 2025December 31, 2024
Contract assets$83,060 $83,060 
Less accumulated amortization(16,931)(14,016)
Contract assets, net66,129 69,044 
Less current contract assets(6,743)(5,939)
Contract assets, long term$59,386 $63,105 
In connection with entering into the Initial ProFrac Agreement (defined below) and Amended ProFrac Agreement (defined below) on February 2, 2022 and May 17, 2022, respectively, as discussed in Note 17, “Related Party Transactions,” the Company recognized contract assets of $10.0 million and $69.5 million, respectively, and associated fees of $3.6 million. As of June 30, 2025 and December 31, 2024, $59.4 million and $63.1 million, respectively, of the contract assets were classified as long term based upon our estimate of the forecasted revenues from the ProFrac Agreement that will not be realized within the next twelve months of the ProFrac Agreement. The Company’s estimate of the timing of the future contract revenues is evaluated on a quarterly basis.
During the three months ended June 30, 2025 and 2024, the Company recognized $1.4 million and $1.5 million, respectively, of contract assets amortization that is recorded as a reduction of the transaction price included in related party revenue in the consolidated statement of operations. During the six months ended June 30, 2025 and 2024, the Company recognized $2.9 million and $2.7 million, respectively, of contract assets amortization that is recorded as a reduction of the transaction price included in related party revenue in the consolidated statement of operations. The below table reflects our estimated amortization per year (in thousands) based on the Company’s current forecasted revenues from the ProFrac Agreement.
Years ending December 31,Amortization
2025 (excluding first six months)
$2,798 
20269,006 
202710,347 
202810,347 
202910,347 
Thereafter through May 203223,284 
Total contract assets$66,129