v3.26.1
Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2026
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 16, “Related Party Transactions.”
Total revenue disaggregated by revenue source is as follows (in thousands):
Three months ended June 30,Six months ended June 30,
2026202520262025
Revenue:
Products$84,195 $53,406 $144,816 $107,031 
Services2,589 1,716 4,859 3,453 
Rental12,583 3,228 19,743 3,228 
$99,367 $58,350 $169,418 $113,712 
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,
2026202520262025
Cost of sales:
Tangible goods sold$67,794 $38,933 $116,494 $77,165 
Services271 147 626 326 
Other7,519 4,863 12,974 9,365 
$75,584 $43,943 $130,094 $86,856 
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 months ended June 30, 2026 and 2025 includes $1.0 million and $0.2 million, related to the Lease Agreement. For the six months ended June 30, 2026 and 2025, other cost of sales includes $1.8 million and $0.2 million, respectively, 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,
2026202520262025
Cost of sales:
Cost of sales for external customers$33,324 $21,658 $47,880 $43,318 
Cost of sales for related party42,260 22,285 82,214 43,538 
$75,584 $43,943 $130,094 $86,856 
Contract Assets
Contract assets are as follows (in thousands):
June 30, 2026December 31, 2025
Contract assets$83,060 $83,060 
Less accumulated amortization(24,982)(20,324)
Contract assets, net58,078 62,736 
Less current contract assets(9,485)(7,621)
Contract assets, long term$48,593 $55,115 
In connection with entering into the Initial ProFrac Agreement (defined below) and First Amendment to ProFrac Agreement (defined below) on February 2, 2022 and May 17, 2022, respectively, as discussed in Note 16, “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, 2026 and December 31, 2025, $48.6 million and $55.1 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 quarterly.
During the three months ended June 30, 2026 and 2025, the Company recognized $2.4 million and $1.4 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, 2026 and 2025, the Company recognized $4.7 million and $2.9 million, respectively, of contract assets amortization.
The table below reflects our estimated contract assets amortization per year (in thousands) based on the Company’s forecasted revenues from the ProFrac Agreement as of June 30, 2026.
Years ending December 31,Amortization
2026 (excluding the first six months)
$4,743 
20279,858 
202810,230 
202910,230 
203010,230 
Thereafter through May 203212,787 
Total contract assets$58,078