Smart Sand, Inc. (SND): Business Model Canvas [Dec-2025 Updated]

You're looking at the engine room of a specialized energy supplier, and honestly, the Smart Sand, Inc. business model in late 2025 boils down to one thing: low-cost, high-reliability logistics for premium frac sand. This isn't just about mining their massive 500 million tons of reserves; it's about controlling the unit train shipments and wellsite delivery, which helped them post Q3 2025 revenue of $92.8 million. We see a clear strategy balancing the volatile oil patch with a diversification push toward Industrial Products Solutions, aiming for 10% of sales, all while rewarding shareholders with a $0.05/share special dividend. If you want the precise breakdown of how they manage those high fixed costs against their premium value proposition, check out the full canvas details right below.

Smart Sand, Inc. (SND) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Smart Sand, Inc. (SND) relies on to move that Northern White sand from Wisconsin and Illinois to the wellsite, and to diversify its revenue base. These aren't just vendors; they're critical links in the mine-to-wellsite chain.

Class I rail carriers for unit train logistics across North America

Smart Sand, Inc. operates three facilities that connect directly to four Class I rail lines, which is key for reaching all operating basins in the U.S.. Honestly, logistics is a huge part of their cost structure, so efficiency here matters a lot. The company moves product via unit train shipments, which make up about 90% of sales. These unit trains typically run in 100 to 150 rail car shipments from the mines. All of their sand, primarily for oil and gas outside the Midwest, has to move by rail to terminals first.

Third-party transloading terminals for expanded in-basin access

To get the sand into the operating basins efficiently, Smart Sand, Inc. uses a network of terminals. They own four terminals across the U.S., including the Van Hook terminal in North Dakota. The sand moves from rail cars to these terminals, which include their own and third-party terminals. This network helps them serve key areas like the Appalachian, Bakken, Utica, and Canadian basins.

Key oil and gas E&P customers with long-term supply contracts

Securing long-term, committed volumes is how Smart Sand, Inc. manages volume volatility. For example, on November 4, 2025, Smart Sand, Inc. and EQT Production Company entered into a new take-or-pay product purchase agreement that allows Smart Sand to supply frac sand through 2027. This new deal replaced a previous Master Product Purchase Agreement, which was mutually terminated effective December 31, 2025. The company continues to see consistent activity in its primary markets, including the Marcellus, Utica, and Bakken formations.

Equipment and service providers for SmartSystems wellsite solutions

The SmartSystems segment, which handles wellsite storage and sand management, involves financing partners for the physical assets. Smart Sand, Inc. has a financing arrangement structured as a sale-leaseback for specific SmartSystems wellsite proppant storage equipment with Varilease Finance, Inc. (VFI). This was established under a four-year Master Lease Agreement dated May 9, 2024. SmartSystems includes products like the SmartDepot and SmartDepotXL silo systems, the SmartPath transloader, and rapid deployment trailers.

Industrial distributors for non-oil and gas sand markets

Diversification through the Industrial Products Solutions (IPS) business, started in late 2021, relies on industrial customers and distributors. Industrial applications represented 5% of sales in the first half of 2025, but this segment saw an 80% year-over-year growth. Smart Sand, Inc. is targeting growth here to reach 10% or more of total sales. These industrial uses span markets such as glass, foundry, building products, filtration, geothermal, renewables, ceramics, turf & landscape, retail, and recreation.

Here's a quick look at some of the key operational and contractual metrics that define these partnerships as of late 2025:

Metric	Value/Detail	Reference Point
Class I Rail Connections	4 direct connections	Smart Sand facilities
Unit Train Shipment Share	90% of sales	Logistics efficiency
Owned Terminals	4 terminals owned	Distribution capability
EQT Supply Contract Term	Through 2027	New take-or-pay agreement
Industrial Sales Share (H1 2025)	5% of sales	Diversification progress
Industrial Sales YoY Growth	80% year-over-year	IPS segment performance

The company's ability to move product hinges on these rail and terminal relationships, which is why their logistics cost structure is so important to their overall profitability. Smart Sand, Inc. is definitely focused on locking in long-term volume where it can, like with the EQT deal extending through 2027.

Smart Sand, Inc. (SND) - Canvas Business Model: Key Activities

You're looking at the core engine of Smart Sand, Inc. (SND) as of late 2025, focusing strictly on the numbers that define what they actually do to generate revenue and maintain their position. This isn't about projections; it's about the reported operational reality from their latest filings.

Mining and processing high-quality Northern White frac sand is the foundation. For the third quarter ended September 30, 2025, Smart Sand, Inc. sold approximately 1.472 million tons of sand. This volume translated to a contribution margin of $21.7 million for the quarter, which works out to $14.76 per ton sold. This per-ton metric shows the efficiency of their mining and processing relative to direct costs for that period. The company is also focused on its long-term reserves, believing it has one of the largest reserve bases of fine mesh Northern White sand in North America.

Managing complex, low-cost rail and terminal logistics is critical to keeping that sand competitive. Smart Sand, Inc. supports its logistics footprint with transload facilities across the country, providing efficient access to the United States, Canada, and Mexico. Their Q3 2025 results specifically highlighted record sales volumes into Canada and an expanded presence in the Utica shale through their Ohio terminals, showing logistics deployment in action.

Operating and deploying proprietary SmartSystems wellsite storage is the technology layer of their logistics offering. While the most recent full-year revenue for the SmartSystems segment was reported as $7.8 million for the year ended 2024, the Q3 2025 commentary confirms the continued operation of their patented SmartSystems equipment and related services, which is part of their integrated mine-to-wellsite solution.

Expanding Industrial Products Solutions (IPS) sales and distribution provides diversification away from pure frac sand demand. The company continued to broaden its customer base in Industrial Product Solutions during Q3 2025. For the nine months ended September 30, 2025, customer concentration showed this diversification effort: Equitable Gas Corporation accounted for 27.7% of total revenue, and Encino Energy accounted for 12.5% of total revenue. This shows the ongoing sales activity across their customer base.

Maintaining a low-leverage, prudent capital structure underpins their operational flexibility. Smart Sand, Inc. reported cash on hand of $5.1 million as of September 30, 2025, and they project full year 2025 capital expenditures to range between $15.0 million and $17.0 million, anticipating being free cash flow positive for 2025. They are actively returning capital; through the end of September 2025, the company had returned $6.4 million to shareholders via share repurchases and dividends, including repurchasing 1 million shares in Q3 2025 alone.

Here are the key financial results that reflect the output of these activities for the third quarter of 2025:

Metric	Value (Q3 2025)	Value (9 Months Ended Sep 30, 2025)
Total Revenue	$92.8 million	$335.4 million (TTM)
Sand Revenue	$91.6 million	N/A
Tons Sold	1.472 million tons	N/A
Gross Profit	$14.9 million	N/A
Contribution Margin	$21.7 million	N/A
Adjusted EBITDA	$13.6 million	N/A
Net Income	$3.0 million	$3.90 million (TTM)
Cash Flow from Operations	$18.2 million	N/A
Free Cash Flow	$14.8 million	N/A

The operational focus areas driving these numbers include:

• Selling approximately 1.472 million tons of sand in Q3 2025.
• Achieving a contribution margin of $14.76 per ton sold in Q3 2025.
• Generating $14.8 million in free cash flow in Q3 2025.
• Projecting full year 2025 capital expenditures between $15.0 million and $17.0 million.
• Returning $6.4 million to shareholders year-to-date in 2025.

Smart Sand, Inc. (SND) - Canvas Business Model: Key Resources

You're looking at the core assets that let Smart Sand, Inc. deliver its value proposition. These aren't just inventory items; they are the foundation of their competitive edge in the proppant and logistics space. Honestly, the quality and scale of the resource base are what make their logistics play so powerful.

The physical assets start with the raw material itself. Smart Sand, Inc. claims over 500 million tons of high-quality Northern White sand reserves. This is a massive, long-term supply advantage. Furthermore, the company has established a significant processing footprint, boasting 10 million tons of annual mining and processing capacity. This scale is crucial for meeting high-demand periods in the oilfield.

Logistics is where the physical assets meet the proprietary technology. Smart Sand, Inc. operates three facilities with direct access to four major Class I rail lines. This rail connectivity is key to cost-effective, long-haul delivery. Also, they bolster this with owned in-basin transloading terminals in key US basins, which cuts down on the final-mile cost and time for customers.

The technology layer is the SmartSystems wellsite proppant storage technology. This system helps manage the proppant right at the wellsite, which is a major logistical service component. The industrial products business, which is a diversification effort, has also seen investment, growing over 80% versus the prior year as of late 2025, with investments of about $5 to $10 million in cooling and custom blending capabilities to serve markets like foundry and glass.

To give you a snapshot of how these resources translated into recent performance leading up to late 2025, here are some key operational and financial metrics from the reported quarters:

Metric	Value (Latest Reported Quarter)	Context/Period
Revenue	$92.8 million	Q3 2025
Net Income	$3.0 million	Q3 2025
Cash Flow Provided by Operations	$18.2 million	Q3 2025
Contribution Margin	$21.7 million	Q3 2025
Total Tons Sold	Approximately 1.1 million	Q1 2025
Projected Full Year 2025 CapEx Range	$13.0 million to $17.0 million	Full Year Expectation (as of March 2025)

The quality of the underlying resource is also a key differentiator. Over 70% of Smart Sand, Inc.'s reserves are fine mesh sand, which is the primary product demanded in the oil and gas business today. This resource alignment is critical for their core frac sand market.

The strength of the management team's alignment is another intangible resource. As of the October 2025 investor conference, the management team owned over 36% of the business, showing they are definitely invested owners.

Here's a quick look at the operational focus areas that rely on these resources:

• Mine to Wellsite Solutions
• Industrial Products Solutions
• Logistic Solutions, Technology
• Focus on Northern White Sand quality

If onboarding takes 14+ days, churn risk rises, which is why the in-basin terminals and SmartSystems are so important for rapid deployment.

Smart Sand, Inc. (SND) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Smart Sand, Inc. (SND) over competitors, especially now that the market has tightened up a bit after the Q1 2025 dip. The value proposition centers on quality, integration, cost discipline, and diversification.

Premium Northern White sand quality for superior well performance

The fundamental offering is the high-quality Northern White sand, which you know is the premium proppant for hydraulic fracturing. While I don't have a specific sieve analysis percentage from the latest filings, the continued demand confirms its performance profile in enhancing hydrocarbon recovery rates across key basins.

Fully integrated, mine-to-wellsite logistics and supply chain efficiency

This is where Smart Sand, Inc. really separates itself. They own the process from the mine in Wisconsin and Illinois right to the wellsite. This integration is backed by significant infrastructure investments. For instance, 90% of sales are shipped on a unit train basis, which is a massive efficiency driver compared to truck or smaller rail movements. You have access to three facilities connecting to four Class 1 rail lines directly, and the company owns four terminals across the country to manage distribution.

Here's a quick look at the operational scale supporting this claim:

Metric	Value (As of Q3 2025 or Latest Available)
Total Mining & Processing Capacity	10 million tons
Unit Train Size Capability	100 to 150 cars or more
Q3 2025 Tons Sold	Approximately 1,472,000
Contribution Margin Per Ton (Q3 2025)	$14.76

Low-cost operating structure and low royalty rates for competitive pricing

The integrated model helps drive a low-cost structure, which translates directly into competitive pricing for you, the customer. The efficiency gains are visible in the margin performance. In the third quarter of 2025, the Contribution Margin hit $21.7 million, which is a solid result showing they are managing the operating cost base effectively, especially with volumes recovering.

Diversified, steadier cash flow from growing Industrial Products Solutions (IPS)

Diversification is key to smoothing out the cyclical nature of the frac sand business. The Industrial Products Solutions (IPS) segment is showing real traction. In the first half of 2025, IPS represented 5% of sales, but it grew 80% year-over-year. Management is actively targeting this segment to grow to 10% or more of total sales, which should definitely help stabilize cash flow, especially when oilfield activity fluctuates.

Consider the overall financial context as of late 2025:

• Trailing Twelve Months Revenue (ending Sep 30, 2025): $335.47 million.
• Q3 2025 Revenue: $92.8 million.
• Q3 2025 Net Income: $3.0 million.
• Q3 2025 Free Cash Flow: $14.8 million.

Reliable supply via unit train delivery capability to all major basins

Reliability means you get the sand when and where you need it. Because the mines have access to all Class 1 rail lines, Smart Sand, Inc. can deliver products to all operating basins in the U.S. and Canada. This expansive logistical reach, combined with the ability to move product in large unit trains, ensures supply continuity even during peak demand periods. They are positioned to support activity in areas like the Marcellus, Utica, Bakken, and Western Canadian Sedimentary Basin.

Finance: draft the Q4 2025 cash flow forecast incorporating the Q3 performance by next Tuesday.

Smart Sand, Inc. (SND) - Canvas Business Model: Customer Relationships

You're looking at how Smart Sand, Inc. (SND) manages its connections with the buyers of its premium Northern White sand and logistics services as of late 2025. It's a mix of deep, sticky relationships and more opportunistic transactional sales.

The core of the energy-side relationship is built on direct, long-term contractual relationships with major E&P operators. This provides a foundation of demand stability, even with near-term market volatility impacting oil and natural gas prices. For instance, in Q3 2025, the revenue included a $4.4 million payment related to contractual charges for tons sold in excess of certain contractual thresholds from a prior period, which shows the structure of these agreements in action. Smart Sand, Inc. expects full year 2025 sales volumes to be in the 5.1 million to 5.4 million ton range, much of which is likely underpinned by these contracts.

To support these critical contracts, the company provides dedicated sales and logistics support for mine-to-wellsite delivery. This integration is key to their value proposition. They own and operate premium sand mines in Wisconsin and Illinois, which have access to four Class I rail lines, allowing delivery substantially anywhere in the United States and Canada. Their logistics arm includes in-basin transloading terminals and their SmartSystems™ wellsite storage and sand management capabilities, ensuring they can service customers efficiently, as evidenced by record sales volumes into Canada in Q3 2025.

Still, the business isn't purely locked into long-term deals; there is room for transactional sales for smaller, spot-market frac sand needs. This flexibility allows Smart Sand, Inc. to capture upside when activity spikes, like the 24% year-over-year increase in tons sold in Q3 2025 (1,472,000 tons) compared to Q3 2024. The company is also actively expanding its non-energy customer base through its Industrial Product Solutions (IPS) segment.

For the non-energy side, there are direct sales to industrial manufacturers for non-energy products. This diversification is a clear strategic focus. The Industrial Product Solutions segment broadened its customer base in Q3 2025. To be fair, the industrial sales segment already showed strength earlier in the year, marking a 9% sequential increase in sales volumes in Q1 2025.

Finally, the relationship with the investment community is managed through investor relations focused on capital returns. This is a tangible way they connect with shareholders. Smart Sand, Inc. declared a special cash dividend of $0.05/share in November 2025, payable in December 2025. This follows a prior special dividend of $0.10/share paid in August 2025. Through August 14, 2025, the company had returned $6.4 million to shareholders through share repurchases and special dividends in 2025.

Here's a quick look at the recent operational scale supporting these relationships:

• Q3 2025 Revenue: $92.8 million.
• Q3 2025 Tons Sold: Approximately 1,472,000.
• Expanded presence in Utica shale via Ohio terminals.
• Maintained strong sand sales in traditional Marcellus and Bakken markets.

We can map the key customer-facing activities and their recent performance metrics:

Customer Relationship Type	Key Activity/Market Focus	Latest Reported Metric (Q3 2025 unless noted)
Long-Term E&P Contracts	Frac Sand Supply & Logistics	Revenue included $4.4 million in contractual over-volume charges.
Dedicated Logistics Support	Mine-to-Wellsite Delivery	Mines access four Class I rail lines.
Transactional Sales	Spot Market Frac Sand	Q3 2025 Tons Sold: 1,472,000.
Direct Industrial Sales	Industrial Product Solutions (IPS)	Broadened customer base in Q3 2025.
Investor Relations	Capital Returns	Declared $0.05/share special dividend in November 2025.

The company's strategy clearly involves locking in the E&P customers with integrated logistics while simultaneously building out the Industrial segment for diversification. If onboarding new industrial clients takes longer than expected, revenue growth from that segment could be delayed. Finance: draft 13-week cash view by Friday.

Smart Sand, Inc. (SND) - Canvas Business Model: Channels

The distribution and delivery of Northern White Sand and related services for Smart Sand, Inc. (SND) rely on a multi-faceted logistics and sales approach designed to reach both the hydraulic fracturing and industrial markets across North America.

Direct sales force targeting E&P and oilfield service companies forms the core for the frac sand business, focusing on key basins. The company's sales volumes and revenue reflect the effectiveness of this channel through 2025.

• Markets served include the Appalachian basins (Marcellus and Utica), the Bakken, and expanding into Canada (Montney).
• New market activity represented approximately 11% of sales volume in the full year 2024.

Here's a look at the quarterly sales performance that flows through these primary channels in 2025:

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue	$65.6 million	$85.8 million	$92.8 million
Total Tons Sold (Approximate)	1.1 million	Expected 10% to 20% QoQ rise vs Q1	Expected $\approx$ 2.5 million for H2 2025

The company mines and processes its sand with a stated capacity of 10 million tons.

Company-owned and third-party transloading terminals are critical for moving bulk sand from the mine to the wellsite, as all sand for oil and gas moves by rail to terminals first. Smart Sand, Inc. currently has 4 terminals it owns, including the Van Hook terminal in North Dakota.

Class I rail lines for efficient, high-volume unit train shipments underpin the logistics advantage. Smart Sand, Inc.'s facilities are positioned to access all Class I rail lines, with 3 facilities connecting directly to 4 rail runs.

• Shipments are executed on a unit train basis, often involving 100 to 150 cars or more.
• This system allows transport directly to owned or third-party terminals in all operating basins.

SmartSystems wellsite storage and sand management services provide a direct service channel at the wellsite. This segment showed operational improvement in 2025.

• SmartSystems revenue was $7.8 million for the year ended 2024.
• In the first quarter of 2025, the SmartSystems business showed increased fleet utilization and achieved a positive contribution margin.

Industrial product distributors and direct sales for IPS serve as the channel for non-energy markets. This segment is a key diversification effort.

• Industrial sand sales set a record in the first quarter of 2025, increasing 9% Quarter-over-Quarter.
• Smart Sand, Inc. is looking to grow this business to be 10% or more of total sales over time.

The Trailing Twelve Month (TTM) revenue as of September 30, 2025, reached $335 million, reflecting the combined output across these channels.

Smart Sand, Inc. (SND) - Canvas Business Model: Customer Segments

You're looking at who actually buys the high-quality Northern White sand and logistics from Smart Sand, Inc. as of late 2025. It's a mix of direct buyers and service providers, heavily concentrated in specific North American basins.

Oil and natural gas Exploration and Production (E&P) companies

E&P companies are core end-users, though Smart Sand, Inc. often sells through the service layer. For the nine months ended September 30, 2025, two specific customers, Equitable Gas Corporation and Encino Energy, accounted for a significant portion of the total revenue, at 27.7% and 12.5% respectively. This shows a degree of customer concentration, even as the company works to diversify.

Oilfield Service companies requiring proppant supply

These companies are critical intermediaries, taking delivery of the proppant for use in hydraulic fracturing operations. Smart Sand, Inc. provides them with complete mine-to-wellsite proppant and logistic solutions. The total tons sold for the third quarter of 2025 was approximately 1,472,000 tons.

Industrial Manufacturers (e.g., glass, foundry, building products)

The Industrial Product Solutions (IPS) segment serves as a diversification stream. In the second quarter of 2025, IPS sales volumes grew 28% sequentially. For the first half of 2025, this segment accounted for 6% of the company's total sales volumes.

Key industrial customers utilize Northern White sand for applications including:

• Glass manufacturing
• Foundry operations
• Building Products
• Filtration, Geothermal, Renewables, Ceramics, Turf & Landscape, Retail, and Recreation

Operators in key basins: Marcellus/Utica, Bakken, WCSB (Canada)

Smart Sand, Inc. focuses its frac sand sales on specific operational geographies where their premium sand and logistics are advantageous. The company noted strong sand sales in its traditional markets of the Marcellus and the Bakken in Q3 2025. They are also expanding their presence, with frac sand sales into the Utica basin making up 16% of total sales volumes through June 30, 2025.

Geographically, the customer base includes significant international sales:

Region/Basin	2025 Activity/Volume Detail	Data Source
Canada	Record sales volumes in Q3 2025
Canada & Mexico	Approximately 20% of sand volumes sold in Q3 2025 went to these regions
Appalachian Basin (Marcellus/Utica)	Enhanced transloading capabilities via Dennison, Ohio terminal expansion completed September 2025

The company expects continuing demand in the Bakken and Western Canadian Sedimentary Basin (WCSB).

Customers prioritizing premium Northern White sand over in-basin alternatives

Smart Sand, Inc.'s value proposition centers on its premium, high-quality Northern White sand. The company believes this sand is the first and best choice of proppant. While the broader market shows in-basin sand usage surging to 46%, displacing Northern White sand to a 24% market share, Smart Sand, Inc. leverages its extensive logistics network to deliver its premium product efficiently to all shale operating basins in North America.

The total tons sold for the nine months ended September 30, 2025, was 3,965,000 tons.

The company's logistics footprint, including unit train delivery capability, supports customers who value quality and reliable, cost-effective delivery over local sourcing.

Finance: review Q4 2025 customer concentration against the Equitable Gas Corporation (27.7%) and Encino Energy (12.5%) figures from the nine-month period.

Smart Sand, Inc. (SND) - Canvas Business Model: Cost Structure

You're looking at the cost side of Smart Sand, Inc. (SND)'s business, which is heavily influenced by the physical movement and processing of sand. The structure shows a clear mix of costs that you need to manage to keep that contribution margin per ton healthy.

The company has high fixed costs baked into its operations. These are tied to owning and maintaining the physical assets: the mines in Wisconsin and Illinois, the processing facilities, and the access to four Class I rail lines needed to move the product across the United States and Canada. While specific fixed cost line items aren't broken out in detail for 2025, the need for ongoing capital investment points to this structure.

Variable costs, however, are where the immediate pressure points show up. Freight and logistics are definitely a key cost driver. Look at the second quarter of 2025: Cost of Goods Sold (COGS) jumped to $76.8 million, up from $62.8 million in the first quarter of 2025, largely due to increased sales volumes and the specific delivery locations for frac sand sales. Freight and other delivery costs were specifically noted as higher sequentially and year over year, which directly impacted the gross profit, which fell to $9.0 million in Q2 2025 from $13.1 million year-over-year. This pressure is why the contribution margin per ton dropped to $11.08 in Q2 2025 from $15.53 in Q2 2024.

To be fair, Smart Sand, Inc. (SND) benefits from a structure that keeps some costs low. The company explicitly mentioned that operating expenses in the first quarter of 2025 were $9.8 million, down from $11.0 million in the first quarter of 2024, primarily due to reduced wages and royalties. This suggests that low royalty rates are a structural advantage contributing to a lower-cost operating base when volumes are lower.

Capital spending is a major component of the cost structure, reflecting investment in both maintenance and growth. Smart Sand, Inc. (SND) currently projects full-year 2025 capital expenditures to range between $13.0 million and $17.0 million. More recently, guidance was tightened to a range of $15 million to $17 million for 2025. For context, capital expenditures in the third quarter of 2025 were $3.4 million, primarily for maintenance and expansion projects at facilities like Oakdale, Blair, and Ottawa, plus potential new terminals. This spending directly relates to maintaining and expanding the infrastructure that supports the business, including the SmartSystems fleet.

The SmartSystems fleet itself represents an investment where maintenance costs are necessary to ensure operational excellence. While specific maintenance costs for the SmartSystems fleet aren't itemized separately in the public reports, the overall capital expenditure plan, which includes targeted investments for efficiency projects, covers the upkeep of these proprietary logistics assets. Here's a quick look at the quarterly cost movement:

Metric	Q1 2025 Amount	Q2 2025 Amount
Cost of Goods Sold (COGS)	$62.8 million	$76.8 million
Operating Expenses	$9.8 million	Not explicitly stated, but Q1 2024 was $11.0 million
Gross Profit	$2.8 million	$9.0 million
Contribution Margin per Ton	$8.96	$11.08

The company is actively managing these costs, as seen by the reduction in operating expenses due to lower royalties and the focus on logistics cost control in Q1 2025, which helped COGS decline sequentially before volume picked up in Q2. You've got to watch those freight costs; they clearly swing profitability.

• Projected 2025 Capital Expenditures: $13.0 million and $17.0 million (with a tighter range of $15 million to $17 million).
• Q3 2025 Capital Expenditures: $3.4 million.
• Q1 2025 Operating Expenses: $9.8 million, reduced due to lower royalties.
• Costs associated with maintaining the SmartSystems fleet are embedded within capital expenditures and operational costs.

Finance: draft 13-week cash view by Friday.

Smart Sand, Inc. (SND) - Canvas Business Model: Revenue Streams

You're looking at the revenue engine for Smart Sand, Inc. (SND) as of late 2025. It's a model built on core energy services but actively diversifying its income sources.

The primary revenue driver remains the Sale of frac sand (proppant) to the oil and gas industry. This segment is highly sensitive to drilling activity, as seen in the strong recovery reported for the third quarter of 2025. The company is a low-cost producer of high-quality Northern White sand, essential for enhanced hydrocarbon recovery.

Revenue from logistics and SmartSystems wellsite services is integral, supporting the core sand sales by providing mine-to-well site delivery solutions. These services include in-basin transloading terminals and SmartSystems products and services, like the SmartBelt, SmartDepot Silo, and SmartPath Loader.

The company is also growing its Sales from Industrial Products Solutions (IPS), targeting non-energy markets such as glass, ceramics, and renewable energy. While the long-term goal might be 10% of sales, the latest available data shows traction: IPS sales volumes increased 28% from the first quarter to the second quarter of 2025, accounting for 6% of total sales volumes in the first half of 2025.

A notable, though less recurring, component of revenue comes from Contractual charges for volumes exceeding certain thresholds. This provided a boost in Q3 2025.

Here's a quick look at the top-line performance and key revenue components for the most recently reported quarter:

Metric	Amount
Q3 2025 Total Revenue	$92.8 million
Q3 2025 Sand Revenue	$91.6 million
Q3 2025 Contractual Payment (Excess Tons)	$4.4 million
Q3 2025 Contribution Margin per Ton Sold	$14.76

The Q3 2025 revenue was $92.8 million, reflecting strong volume recovery compared to $63.2 million in the same period last year. This sequential growth was supported by higher volumes and pricing, plus that one-time contractual payment.

You can see the revenue streams broken down by their contribution to the quarter's results:

• Sale of frac sand (proppant) to the oil and gas industry.
• Revenue from logistics and SmartSystems wellsite services.
• Sales from Industrial Products Solutions (IPS), representing 6% of H1 2025 volumes.
• A $4.4 million contractual payment for prior-period excess tons was included in Q3 2025 revenue.

Finance: draft 13-week cash view by Friday.