Smart Sand, Inc. (NASDAQ: SND) has reported significant financial gains for the third quarter of 2025, driven by increased demand for its frac sand across North America. The company achieved revenue of $92.8 million, a notable rise from $85.8 million in the previous quarter and $63.2 million during the same period last year. This growth reflects higher sales volumes, stronger pricing, and a $4.4 million contractual payment related to excess tons sold in a prior period.
Net income for the quarter reached $3.0 million, a decrease from $21.4 million in the second quarter, which had benefited from tax-related impacts. Comparatively, the company reported nearly break-even results in the third quarter of the previous year. CEO Charles Young emphasized the quarter’s performance, noting broad strength across the company’s operational areas.
Sales Volume and Profitability Surge
During the third quarter, Smart Sand sold 1.47 million tons of sand, representing a 3% increase from the previous quarter and a remarkable 24% rise from the same period last year. The company’s contribution margin rose to $21.7 million, translating to $14.76 per ton sold. Adjusted EBITDA reached $13.6 million, significantly up from $7.8 million in the second quarter.
Cash generation also saw considerable improvement, with the company reporting $18.2 million in operating cash flow, recovering from a net outflow in the previous quarter. Free cash flow for the period stood at $14.8 million. For the entire year, capital spending is projected to be between $15 million and $17 million, excluding acquisitions.
Young indicated that long-term fundamentals remain robust despite short-term volatility in commodity prices. He highlighted the increasing demand for natural gas, particularly related to liquefied natural gas (LNG) export capacity and rising electricity needs spurred by advancements in artificial intelligence. “We have one of the largest reserve bases of fine mesh Northern White sand in North America,” Young stated, reinforcing the company’s competitive position.
Shareholder Returns and Future Outlook
Gross profit for the quarter nearly doubled from the previous quarter, climbing to $14.9 million, while operating expenses increased modestly to $9.6 million. The rise in expenses was attributed to higher freight and transloading costs, which impacted margins. Smart Sand continued its commitment to returning capital to shareholders, paying a $0.10 per-share dividend in August and repurchasing 13,627 shares during the quarter. Year-to-date, the company has returned $6.4 million through dividends and share buybacks.
As of September 30, 2025, Smart Sand held $5.1 million in cash and had $30 million available in credit. Looking ahead, Young noted that demand in the fourth quarter has “started off strong,” although some seasonal slowdown is anticipated. Full-year sales volumes are projected to fall between 5.1 million and 5.4 million tons, with expectations to maintain a positive free cash flow.
Investors and interested parties can access Smart Sand’s complete financial filings and presentations on their official website.
