Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2025

Summary of Significant Accounting Policies

Business Combinations

Business combinations are accounted for using the acquisition method. Under this approach, we recognize the assets acquired and liabilities assumed at their fair values as of the acquisition date. Any excess of the acquisition price over the fair values of the identifiable assets and liabilities is recorded as goodwill, provided that the criteria for defining a business are met.

For significant acquisitions, we engage third-party appraisal firms to help determine the fair values of certain assets and liabilities, utilizing techniques such as discounted cash flows and other relevant valuation methods. Acquisition-related costs are expensed as incurred.

We may adjust the fair values of acquired assets and assumed liabilities during the measurement period, which lasts until we have all relevant information regarding the facts and circumstances that existed as of the acquisition date, not to exceed one year from the acquisition date. Adjustments made during this period will be recognized in the period they are determined, including any impacts on earnings that would have been recorded in previous periods if the accounting had been finalized at the acquisition date.

Estimating the fair values of assets and liabilities in business combinations requires significant judgment. These estimates rely on both observable and unobservable inputs, making them susceptible to variability and sensitive to changes in market conditions. As a result, future changes in these inputs may significantly affect our consolidated financial statements.

Consolidation

The consolidated financial statements include the accounts of the Company and its subsidiaries in which the Company has a controlling financial interest in accordance with ASC 810, Consolidation. All material intercompany balances and transactions have been eliminated in consolidation.

The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a variable interest entity (“VIE”). If the entity is not a VIE, the Company evaluates whether it has control through voting interests.

Variable Interest Entities. A VIE is an entity that lacks one or more of the characteristics of a voting interest entity. The Company consolidates a VIE when it is the primary beneficiary, which occurs when the Company has both (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.

The Company reassesses whether an entity is a VIE and whether it is the primary beneficiary upon the occurrence of reconsideration events, as defined in ASC 810, or when changes in facts and circumstances indicate that reconsideration is necessary.

Voting Interest Entities. Voting interest entities are entities in which the equity investors have equity investment at risk that is sufficient to finance the entity’s activities independently and, as a group, possess the characteristics of a controlling financial interest, including the power to direct the activities that most significantly impact the entity’s economic performance through voting or similar rights.

The Company consolidates voting interest entities when it holds a majority voting interest, unless control does not rest with the majority owner due to veto rights or other substantive participating rights held by other equity holders.

Non-controlling interests represent the portion of profit or loss and net assets attributable to equity interests in consolidated subsidiaries that are not owned by the Company. Non-controlling interests are presented as a separate component of equity in the consolidated balance sheets and as a separate line item in the consolidated statements of operations.

Use of Estimates

The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect reported amounts of assets, liabilities, revenues and expenses, as well as disclosure of contingent liabilities.

The most significant estimates and assumptions relate to:

•fair value measurements in business combinations,

•allowance for credit losses,

•income taxes,

•fair value of performance-based restricted stock units,

•future cash flows associated with goodwill and long-lived asset impairment evaluations, and

•tax receivable agreement liability.

Actual results could differ from these estimates.

Reclassification of Prior Year Presentation

Certain prior period amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations.

Cash and Cash Equivalents

The Company considers all short-term, highly liquid, investments with an original maturity of three months or less to be cash equivalents. Cash is deposited in demand accounts in federally insured domestic institutions to minimize risk. Cash balances at times may exceed federally-insured limits. We have not incurred losses related to these deposits.

Restricted Cash

Restricted cash consists of amounts that are subject to contractual agreements or designated for specific purposes and, as such, are not available for general use. These amounts are classified as restricted cash in the consolidated balance sheets. As of December 31, 2025, the Company had zero restricted cash, as previously restricted funds were utilized for growth-related capital expenditures. As of December 31, 2024, restricted cash was designated for capital expenditures related to on-order power generation assets.

The following table presents a reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheets that total to the same amounts shown in the consolidated statements of cash flows.


	December 31,
	2025		2024
Cash and cash equivalents	$	353.3	$	114.3
Restricted cash	—		45.6
Cash and cash equivalents and restricted cash	$	353.3	$	159.9

Accounts Receivable and Related Allowances

Accounts receivable, which consist of trade receivables, unbilled revenue, and operating lease receivables, are stated at the net amount expected to be collected. We record accounts receivable at the invoiced amount, and unbilled receivables represent revenues recognized but not yet invoiced. Accounts receivable are presented net of allowances for credit losses and uncollectible accounts, as applicable.

Trade Receivables

Trade receivables are evaluated for impairment under ASC 326, Financial Instruments – Credit Losses, using the current expected credit losses (“CECL”) methodology. In determining the allowance for credit losses, we pool trade receivables with similar risk characteristics and consider a number of current conditions, past events and other factors, including the length of time trade accounts receivable are past due, previous loss history and the condition of the general economy and the industry as a whole, and apply an expected loss percentage. The expected credit loss percentage is determined using historical loss data adjusted for current conditions and forecasts of future economic conditions. Along with the expected credit loss percentage approach, we apply a case-by-case review on individual trade receivables when deemed appropriate. The expense associated with the provision for credit losses on trade receivables is recognized in other operating expenses, net in our consolidated statements of operations. Accounts deemed uncollectible are written off against the allowance when our customers’ financial condition deteriorates, impairing their ability to make payments, such as upon customer bankruptcies. Subsequent recoveries, if any, are credited to the allowance.

Operating Lease Receivables

Operating lease receivables represent the Company’s right to receive lease payments under ASC 842, Leases. Collectability of lease payments is assessed at lease commencement and reassessed throughout the lease term. At lease commencement, the Company may collect the first and last month’s rent in advance, which serve as collateral to mitigate credit risk. If collectability of substantially all lease payments is probable at lease commencement, leasing revenue is recognized on a straight-line basis over the lease term. For leases meeting this recognition threshold, the Company records an allowance for uncollectable operating lease receivables, as necessary, in accordance with ASC 450, Contingencies. The allowance is based on historical loss experience, current customer-specific conditions, and relevant economic factors without incorporating forward-looking expected losses under CECL. If collectability of substantially all lease payments is not probable, we recognize leasing revenue on a cash basis.

The following table presents activity related to our allowance for credit losses and uncollectible operating lease receivables.


	Year Ended December 31,
	2025		2024		2023
Balance at beginning of period	$	1.3	$	1.0	$	0.4
Provision for credit losses	1.0		0.3		0.8
Provision for uncollectible operating lease receivables	0.2		—		—
Write-offs	(0.8)		—		(0.2)
Balance at end of period	$	1.7	$	1.3	$	1.0

Inventories

Inventories managed in our Solaris Logistics Solutions segment primarily consist of raw materials used in the manufacturing and maintenance of the Company’s oil and gas logistics equipment. Inventories managed in our Solaris Power Solutions segment primarily consist of maintenance spare parts for equipment held for lease.

Inventories are stated at the lower of weighted-average cost or net realizable value. Net realizable value is determined based on the expected utility of the inventory in our operations and considers factors such as inventory quality, excess quantities, obsolescence, and expected usage levels in our manufacturing and maintenance processes. Inventory expected to be used beyond 12 months is classified as non-current on our consolidated balance sheets. Inventory write-downs to net realizable value, including for obsolete inventory, are recorded in cost of services or cost of leasing revenue, as applicable.

Property, Plant and Equipment and Equipment Held for Lease

Property, plant and equipment and equipment held for lease are stated at cost (or fair value at the acquisition date for assets acquired in a business combination), net of accumulated depreciation.

Depreciation is calculated using the straight-line method over the estimated useful lives of the assets except for turbine engine cores. Turbine engine cores represent a significant component of our turbines and are depreciated using the units of production method based on an expected life of 30,000 fired hours. To reflect this distinct depreciation method and usage-based nature of these assets, turbine engine cores are presented as a separate line item in the table below, Power Generation - Turbine engine core.

We capitalize interest on borrowings to the extent they are incurred during the construction or acquisition period of qualifying assets in accordance with ASC 835-20, Interest – Capitalization of Interest. Qualifying assets are assets which require a substantial period of time to get ready for its intended use, such as certain power generation equipment. The amount capitalized is based on the weighted-average expenditures incurred and applicable interest rates on specific or general borrowings. Capitalized interest is included in the cost basis of the related asset and is depreciated over the asset’s estimated useful life once the asset is substantially complete and ready for its intended use. Capitalization of interest ceases when the qualifying asset is substantially complete.


			Useful Life
Equipment held for lease
Power Generation - Turbine			25 years
Power Generation - Turbine engine core			30,000 fired hours
Power Generation - Ancillary equipment			3 - 20 years
Power control and distribution equipment			15 years

Property, plant and equipment
Oil and gas logistics equipment			5 - 15 years
Machinery and equipment			3 - 12 years
Furniture and fixtures			5 years
Computer hardware and software			3 - 10 years
Vehicles			5 years
Buildings and leasehold improvements			15 years

Maintenance and repair costs are expensed as incurred. Expenditures that materially enhance the value or extend the useful life of the assets are capitalized. Upon sale or disposal, the asset’s cost and accumulated depreciation are removed from the balance sheet, with any resulting gain or loss recognized in operations.

Property, plant and equipment and equipment held for lease are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Recoverability is assessed by comparing the carrying amount of the asset to its estimated undiscounted future cash flows. If the carrying amount exceeds the estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount exceeds the asset’s fair value.

Definite-lived Intangible Assets

Intangible assets acquired in a business combination are recognized separately from goodwill and initially measured at their fair value as of the acquisition date. These assets are then amortized over their estimated useful lives, reflecting the pattern of economic benefits derived from the assets. Specifically, trademarks are amortized using the straight-line method over a period of five years, while customer relationships are amortized over approximately 9.3 years, based on the expected pattern of future cash flows associated with these assets.

Impairment of Long-Lived Assets

Long-lived assets, such as property, plant, and equipment, equipment held for lease, definite-lived intangible assets and right-of-use lease assets, are held for use and are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Such events or changes may include insufficient cash flows, changes in business plans, or plans to dispose of assets before the end of their estimated useful lives. We first group individual assets based on the lowest level for which identifiable cash flows are largely independent of the cash flows from other assets. Recoverability is assessed by comparing the carrying amount of the asset group to the sum of the estimated undiscounted cash flows expected to result from the use and eventual disposition of the asset group. If the undiscounted cash flows are less than the carrying amount, an impairment loss is recognized for the amount by which the carrying amount exceeds the asset group’s fair value. Fair value is determined using discounted cash flow analyses, which incorporate significant management estimates and assumptions, including forecasts of future operating performance (such as revenue growth rates and expected profitability margins), estimates of the remaining useful lives and service potential of the assets within the asset group, and a discount rate based on the Company’s weighted-average cost of capital.

There were no impairment losses recognized in the years ended December 31, 2025 and 2024. In 2023, we recorded an impairment loss of $1.4 million related to certain property, plant and equipment.

Goodwill

Goodwill represents the excess of the purchase price of a business over the estimated fair value of the identifiable assets acquired and liabilities assumed. Goodwill is not amortized but is evaluated for impairment annually during the fourth quarter or more frequently if events or circumstances indicate that impairment may exist. Factors such as adverse economic conditions, competition or changes in market dynamics may require more frequent assessments.

We assess our goodwill for impairment initially using a qualitative approach to determine whether it is more likely than not that the carrying value of a reporting unit exceeds its fair value. If such conditions are identified, we then perform a quantitative analysis, comparing the fair value of the reporting unit to its carrying amount to assess for impairment. There were no goodwill impairment losses recognized in the years ended December 31, 2025, 2024 and 2023.

The following table presents the changes in the carrying amount of goodwill by reportable segment.


	Solaris Logistics Solutions		Solaris Power Solutions		Total
Balance at December 31, 2023	$	13.0	$	—	$	13.0
Acquisition of MER	—		91.0		91.0
Balance at December 31, 2024	$	13.0	$	91.0	$	104.0
Acquisition of HVMVLV	$	—	$	2.1	$	2.1
Measurement period adjustment (1)	—		(0.7)		(0.7)
Balance at December 31, 2025	$	13.0	$	92.4	$	105.4

(1)The measurement period adjustment for the Solaris Power Solutions segment relates to an adjustment of the deferred tax liability assumed in the MER Acquisition.

Convertible Notes

Our convertible notes are classified as convertible debt instruments recorded as liabilities in accordance with ASC 470-20 and are initially recognized at their principal amount, net of issuance costs and any discounts. Issuance costs and discounts are amortized to interest expense over the term of the instrument using the effective interest method. We evaluate each instrument to determine its classification as debt or equity and assess whether embedded features, such as conversion options, require bifurcation and separate accounting as derivatives under ASC 815-15. Bifurcation is required if these features are not clearly and closely related to the host contract and do not meet the scope exception criteria under ASC 815-40. Upon conversion, the carrying amount of the debt is reduced, and the settlement is accounted for based on the terms of the instrument, which may include issuance of common stock, cash payment, or a combination thereof. Interest expense includes the contractual coupon rate and amortization of issuance costs and discounts.

Capped call transactions entered into concurrently with the issuance of convertible notes are accounted for as separate freestanding financial instruments. These transactions are evaluated under ASC 815-40, and, when they meet the criteria for equity classification, are recorded as a reduction to additional paid-in capital within stockholder’s equity. Capped calls classified in equity are not subsequently remeasured. The capped calls do not affect the rights of the convertible note holders and are designed to reduce potential dilution to Class A common stock upon conversion of the related notes.

Leases

The Company accounts for leases in accordance with ASC 842, Leases.

Lessee Arrangements

At lease commencement, the Company classifies leases as either operating leases or finance leases. The Company does not recognize right-of-use (“ROU”) assets and lease liabilities for short-term leases (i.e., leases with a term of 12 months or less). Short-term lease costs are recognized on a straight-line basis over the lease term.

ROU assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from long-term leases. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate in determining the present value of lease payments. The incremental borrowing rate reflects the estimated interest rate the Company would pay to borrow on a collateralized basis over a similar term and in a similar economic environment. Lease terms may include options to extend or terminate the lease when it is reasonably certain such options will be exercised. Lease expense is recognized on a straight-line basis over the lease term.

The Company’s lessee arrangements may contain both lease and non-lease components. Non-lease components, such as maintenance costs, are excluded from the measurement of ROU assets and lease liabilities and are recognized as incurred. The Company’s lessee arrangements do not include residual value guarantees.

Lessor Arrangements

The Company acts as a lessor in certain operating lease arrangements related to the provision of power generation, power control, and power distribution systems. These arrangements include lease components consisting primarily of the rental of turbine equipment and power control and distribution panels, which represent identified assets and convey the right to control the use of those assets to customers for stated periods.

The stated rental price for the turbine equipment includes operations and maintenance activities that are provided over the same period and in the same pattern as the related lease component. The Company has elected the lessor practical expedient to not separate these non-lease components (operations and maintenance) from the lease component (rental of turbine equipment). Accordingly, consideration related to these activities is recognized as leasing revenue under ASC 842.

The Company provides other elements, including ancillary equipment such as generators, trailers, cables, and switchgears, which are separately priced. These items are necessary to enable full operation of the turbine systems but are evaluated as distinct from the primary turbine lease components and do not convey the right to control the use of an identified asset. Commissioning and decommissioning services are also provided and do not transfer in the same pattern as the lease component. These elements are separated from the lease component and accounted for as distinct performance

obligations under ASC 606, Revenue from Contracts with Customers, with the related consideration recognized as service revenue.

Certain arrangements also include subleases of equipment to customers. These subleases are classified as operating leases, and the related income is recognized on a straight-line basis over the lease term and included in leasing revenue.

The Company’s lessor arrangements do not include residual value guarantees.

Revenue Recognition

Service Revenue

Service revenue is primarily derived from providing services related to the Company’s mobile proppant and fluid management systems (“Systems”), last mile logistics management services, and ancillary equipment and other distinct elements (including generators, trailers, cables, switchgear, mobilization, demobilization, commissioning, and decommissioning) associated with rental equipment arrangements.

The Company recognizes service revenue upon the transfer of control of promised services (or distinct goods) to customers in an amount that reflects the consideration expected to be received. The Company evaluates collectability based on historical payment experience and customer financial condition. Customers are generally billed on a weekly or monthly basis, and contracts typically include payment terms of 30 to 60 days.

For contracts with multiple performance obligations, the transaction price is allocated based on relative stand-alone selling prices, or estimates of such prices, and revenue is recognized as each performance obligation is satisfied. Revenue from Systems, last mile logistics, and ancillary equipment is primarily recognized over time as customers simultaneously receive and consume the benefits. Mobilization, demobilization, commissioning, and decommissioning services are recognized at a point in time upon completion.

Receivables and Contract Assets

The following table presents the balances of receivables and contract assets arising from contracts with customers. Receivables represent amounts due from customers for goods and services that have been billed. Contract assets represent amounts earned from performance under a contract but not yet billed to the customer (unbilled receivables).


	December 31,
	2025		2024		2023
Receivables	$	64.3	$	50.3	$	49.0
Contract assets (unbilled receivables)	11.7		9.0		13.5

Variable consideration may include discounts, price concessions and incentives. The Company estimates variable consideration based on the expected amount to be received and updates its estimate as facts and circumstances change.

Leasing Revenue

Leasing revenue is recognized on a straight-line basis over the lease term, reflecting the consumption of benefits derived from the leased assets. Lease payments are fixed throughout the lease term. Leasing arrangements may be renewed, subject to price negotiations with customers.

Future minimum lease payments to be received under our long-term lessor arrangements as of December 31, 2025, including payments from leases that have already commenced and leases that will commence in the future based on estimated commencement dates, were as follows:


Year Ending December 31,	Future Lease Payments to be Received
2026	$	396.8
2027	346.9
2028	349.1
2029	349.1
2030	340.1
Thereafter	451.0
Total	$	2,233.0

Disaggregation of Revenue

We categorize revenue from contracts with customers by revenue-generating activity, in alignment with our two reportable segments. This includes service revenue recognized under ASC 606 and leasing revenue recognized under ASC 842. The table below presents information on our disaggregated revenue.


	Year Ended December 31,
	2025		2024		2023

Solaris Power Solutions
Leasing revenue	$	267.9	$	36.4	$	—
Service revenue	65.6		2.2		—
Solaris Logistics Solutions
Service revenue	288.7		274.5		292.9
Total revenue	$	622.2	$	313.1	$	292.9

Deferred Revenue

Deferred revenue arises from our lessor arrangements and consists of amounts received in advance that have not yet been earned. It may also include uncollected amounts related to the final month’s rent that have been billed.

Stock-based Compensation

Stock-based compensation cost is measured at the grant date based on the fair value of the award and is amortized to compensation expense on a straight-line basis over the awards’ vesting period, which is generally the requisite service period. Forfeitures of stock-based compensation are recognized as they occur.

For time-based restricted stock awards, fair value is determined based on the closing market price of the underlying Class A common stock on the grant date.

For performance-based restricted stock units subject to market conditions, the grant date fair value is estimated using a Monte Carlo simulation model. This valuation involves significant judgments and estimates, including expected stock price volatility, risk-free interest rates, expected term, and correlation of the Company’s stock price to relevant market or peer indices.

Income Taxes

Solaris Inc. is a corporation and, as a result, is subject to United States federal, state and local income taxes.

Solaris LLC is treated as a partnership for United States federal income tax purposes, meaning it is not subject to federal income tax on its taxable income. Instead, the taxable income is passed through to its unitholders, including Solaris Inc., who are individually responsible for paying federal income tax on their respective shares of Solaris LLC’s taxable

income, as reported on the unitholders’ federal income tax returns. However, Solaris LLC is liable for income taxes in states that do not recognize its status as a partnership for federal income tax purposes.

We recognize deferred tax assets and liabilities for the expected future tax consequences of events included in the consolidated financial statements. Deferred tax assets and liabilities are determined based on the differences between the book value and tax bases of assets and liabilities, using enacted tax rates that are expected to be in effect when these differences reverse. Any change in tax rates is recognized in income in the period in which the change is enacted.

We recognize deferred tax assets to the extent that it is more likely than not that they will be realized. In making this determination, we consider all available positive and negative evidence, including the future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent operating results.

Uncertain tax positions are evaluated using a two-step process: (i) we first assess whether it is more likely than not that the tax position will be sustained based on its technical merits, and (ii) for those tax positions meeting the more-likely-than-not threshold, we recognize the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the relevant tax authority.

See Note 17. “Income Taxes” for additional information regarding income taxes.

Payable Related to the Tax Receivable Agreement

In connection with its IPO, Solaris Inc. entered into a Tax Receivable Agreement (the “Tax Receivable Agreement”) with the other then-existing members of Solaris LLC (each such person and any permitted transferee, a “TRA Holder,” and together, the “TRA Holders”). This agreement generally provides for the payment by Solaris Inc. to each TRA Holder of 85% of the net cash savings, if any, in United States federal, state and local income tax or franchise tax that Solaris Inc. actually realizes (computed using simplifying assumptions to address the impact of state and local taxes) or is deemed to realize in certain circumstances in periods after the IPO as a result of (i) certain increases in tax basis that occur as a result of Solaris Inc.’s acquisition (or deemed acquisition for United States federal income tax purposes) of all or a portion of such TRA Holder’s Solaris LLC Units in connection with the IPO or pursuant to the exercise of the Redemption Right or the Call Right (each as defined in the Solaris LLC Agreement) and (ii) imputed interest deemed to be paid by Solaris Inc. as a result of, and additional tax basis arising from, any payments Solaris Inc. makes under the Tax Receivable Agreement. Solaris Inc. will retain the benefit of the remaining 15% of these cash savings.

The Company accounts for amounts payable under the Tax Receivable Agreement in accordance with ASC Topic 450, Contingencies.

New Accounting Pronouncements

Recently Adopted

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disaggregation of information included in a reporting entity’s income tax disclosures through effective tax rate reconciliation and information on income taxes paid. The guidance is effective for annual periods beginning after December 15, 2024. The Company has adopted the provisions of this ASU and has included the required disclosures in its consolidated financial statements. The provisions of this ASU have been applied retrospectively to all prior periods presented in the consolidated financial statements. See Note 17. “Income Taxes” for additional disclosures.

Not Yet Adopted

In December 2025, the FASB issued ASU 2025-12, Codification Improvements. This ASU addresses thirty-three items, representing codification changes that (1) clarify, (2) correct errors, or (3) make minor improvements. Generally, the amendments in this Update are not intended to result in significant changes for most entities. This standard is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2026. Early adoption is permitted. The Company is currently evaluating the effects of this ASU, but does not expect a material impact on its consolidated financial statements.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. This ASU clarifies interim disclosure requirements and the applicability of Topic 270. The objective of the amendments is

to provide further clarity about the current interim disclosure requirements. This standard is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the effects of this ASU, but does not expect a material impact on its consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This ASU updates the rules on capitalizing costs related to developing software for internal purposes, eliminating the use of specific project phases and introducing new guidance on how to evaluate whether the probable-to-complete recognition threshold has been met. This standard applies to annual periods beginning after December 15, 2027, including interim periods within those annual periods. Early adoption is permitted. The Company is currently evaluating the potential effects of this ASU on its consolidated financial statements.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses: Measurement of Credit Losses for Accounts Receivable and Contract Assets. This ASU simplifies the Current Expected Losses model, including a practical expedient that allows entities to assume current economic conditions will remain stable over the life of the short-term accounts receivable and contract assets arising from revenue contracts under ASC 606, without the need to forecast future economic conditions. This standard is effective for annual periods beginning after December 15, 2025, including interim periods within those annual periods. Early adoption is permitted. The Company is currently evaluating the effects of this ASU, but does not expect a material impact on its consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses. This update requires entities to disclose specified information about certain costs and expenses, including the amounts related to (a) purchases of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization, and (e) depletion expense, disaggregated within relevant expense captions on the statement of operations. It also requires qualitative descriptions for amounts not separately disaggregated and the total amount of selling expenses, along with the entity’s definition of selling expenses. The guidance is effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027. The Company is currently assessing the impact of this ASU on its disclosures.

Solaris Energy Infrastructure, Inc. 10-K