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Revenue from Contracts with Customers
 9 Months Ended
Sep. 30, 2025
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 17, “Related Party Transactions.”
Total revenue disaggregated by revenue source is as follows (in thousands):
 Three months ended September 30,Nine months ended September 30,
 2025202420252024
Revenue:
Products$47,686 $48,243 $154,717 $132,052 
Services2,278 1,499 5,731 4,215 
Rental6,067 — 9,295 — 
$56,031 $49,742 $169,743 $136,267 
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 September 30,Nine months ended September 30,
 2025202420252024
Cost of sales:
Tangible goods sold$32,538 $35,824 $109,703 $95,064 
Services521 91 847 273 
Other5,189 4,708 14,554 13,822 
$38,248 $40,623 $125,104 $109,159 
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 and nine months ended September 30, 2025 includes $0.6 million and $0.8 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 September 30,Nine months ended September 30,
 2025202420252024
Cost of sales:
Cost of sales for external customers$18,329 $14,996 $61,647 $45,436 
Cost of sales for related party19,919 25,627 63,457 63,723 
$38,248 $40,623 $125,104 $109,159 
Contract Assets
Contract assets are as follows (in thousands):
September 30, 2025December 31, 2024
Contract assets$83,060 $83,060 
Less accumulated amortization(18,226)(14,016)
Contract assets, net64,834 69,044 
Less current contract assets(8,179)(5,939)
Contract assets, long term$56,655 $63,105 
In connection with entering into the Initial ProFrac Agreement (defined below) and Amended ProFrac Agreement (defined below) on February 2, 2022 and May 17, 2022, respectively, as discussed in Note 17, “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 September 30, 2025 and December 31, 2024, $56.7 million and $63.1 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 on a quarterly basis.
During the three months ended September 30, 2025 and 2024, the Company recognized $1.3 million and $1.6 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 nine months ended September 30, 2025 and 2024, the Company recognized $4.2 million and $4.3 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. The table below reflects our estimated amortization per year (in thousands) based on the Company’s forecasted revenues from the ProFrac Agreement as of September 30, 2025.
Years ending December 31,Amortization
2025 (excluding first nine months)
$1,745 
20268,724 
20279,976 
202810,443 
202910,443 
Thereafter through May 203223,503 
Total contract assets$64,834