v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company has two reportable segments, Sand and SmartSystems, as of March 31, 2026. The Company evaluates its segment reporting on an ongoing basis. The Company does not currently provide asset information by reportable segment as it does not routinely evaluate the total asset position by segment. 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 primarily consists of four 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 three months ended March 31, 2026, three of the Company’s customers each accounted for more than 10% of the Company’s revenues. Of these three customers, two had revenues in the Sand segment and one had revenues in both the Sand and SmartSystems segment. The following tables present additional segment information for the three months ended March 31, 2026 and a reconciliation to amounts on the condensed consolidated statements of operations.
SandSmartSystemsTotal
Revenue$92,488 $623 $93,111 
Segment cost of goods sold
Logistics costs$54,883 $— $54,883 
Production costs24,428 — 24,428 
Depreciation, depletion, and accretion of asset retirement obligations6,531 551 7,082 
Other costs (1)
— 610 610 
Total cost of goods sold$85,842 $1,161 $87,003 
Gross profit$6,646 $(538)$6,108 
Total operating expenses10,981 
Total other (expenses) income, net(159)
Income tax expense (benefit)(1,172)
Net loss$(3,860)
Additions to property, plant and equipment$1,822 $59 
(1) Other costs primarily consist of labor and benefits, consumables, equipment-related costs, maintenance, utilities, and other operational support expenses.
During the three months ended March 31, 2025, four of the Company’s customers each accounted for more than 10% of the Company’s revenues. Of these four customers, all had revenues in the Sand segment. The following tables present additional segment information for the three months ended March 31, 2025 and a reconciliation to amounts on the condensed consolidated statements of operations.
SandSmartSystemsTotal
Revenue$64,464 $1,094 $65,558 
Segment cost of goods sold
Logistics costs$36,240 $— $36,240 
Production costs19,164 — 19,164 
Depreciation, depletion, and accretion of asset retirement obligations6,022 550 6,572 
Other costs (1)
247 563 810 
Total cost of goods sold$61,673 $1,113 $62,786 
Gross profit$2,791 $(19)$2,772 
Total operating expenses9,822 
Total other (expenses) income, net(213)
Income tax expense (benefit)16,968 
Net loss$(24,231)
Additions to property, plant and equipment$2,738 $— 
(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 three months ended March 31, 2026 and 2025:
Three Months Ended March 31,
20262025
United States$76,000 $65,315 
Canada17,111 243 
Total Revenue$93,111 $65,558