Core Insights - Smart Sand, Inc. reported strong sales volumes and improved profitability in Q2 2025, with sales volumes increasing by 33% sequentially and Adjusted EBITDA growing by $6.3 million compared to Q1 2025 [2][3][10] - The company is focused on returning capital to shareholders while optimizing its Northern White sand assets, having repurchased approximately 1 million shares and declared a $0.10 per share dividend [2][15][14] - Long-term fundamentals for Northern White sand remain strong, driven by natural gas development, LNG investments, and increasing demand for data centers supporting AI [2][10] Sales and Revenue - In Q2 2025, tons sold totaled approximately 1,424,000, reflecting a 33% sequential increase and a 12% year-over-year increase [3] - Revenues for Q2 2025 were $85.8 million, up from $65.6 million in Q1 2025 and $73.8 million in Q2 2024, primarily driven by higher sales volumes [4][8] - The increase in revenues year-over-year was attributed to higher sales volumes and higher average selling prices [4] Cost and Profitability - Cost of goods sold increased to $76.8 million in Q2 2025, up from $62.8 million in Q1 2025 and $60.7 million in Q2 2024, primarily due to increased sales volumes [5] - Gross profit for Q2 2025 was $9.0 million, compared to $2.8 million in Q1 2025 and $13.1 million in Q2 2024, with the sequential increase attributed to higher sales volumes [6][11] - Contribution margin in Q2 2025 was $15.8 million, or $11.08 per ton sold, compared to $9.6 million, or $8.96 per ton sold, in Q1 2025 [10][32] Net Income and Cash Flow - The company recorded a net income of $21.4 million in Q2 2025, a significant improvement from a net loss of $(24.2) million in Q1 2025 [9][35] - Free cash flow for Q2 2025 was $(7.8) million, with net cash used in operating activities at $(5.1) million [13][40] - The company anticipates being free cash flow positive for the year 2025 [13] Shareholder Returns and Liquidity - Smart Sand has returned a total of $6.4 million to shareholders through share repurchases and special dividends in 2025 [15] - As of June 30, 2025, the company had cash on hand of $4.3 million and $21.0 million in undrawn availability on its credit facility [16]