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Smith Micro Software (SMSI) investor relations material

Smith Micro Software Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary6 Aug, 2025

Executive summary

  • Q2 2025 revenue was $4.4M, down 14% year-over-year, mainly due to lower Family Safety and ViewSpot sales after contract losses and subscriber migration.

  • Gross margin improved to 74% (73.5%) in Q2 2025 from 69% (68.7%) in Q2 2024, driven by cost reductions.

  • GAAP net loss for Q2 2025 was $15.1M ($0.78/share), mainly due to an $11.1M goodwill impairment.

  • Non-GAAP net loss for Q2 2025 was $2.8M ($0.14/share), improved from $4M ($0.38/share) in Q2 2024.

  • Sale of ViewSpot for $1.3M in June 2025 to focus on SafePath platform.

Financial highlights

  • Six-month 2025 revenue was $9.0M, down 17% year-over-year.

  • Six-month gross profit was $6.6M (73.1% margin), up from 67.1% margin in 2024.

  • Six-month GAAP net loss was $20.2M ($1.08/share), improved from $37.9M ($3.79/share) in 2024.

  • Cash and equivalents at June 30, 2025 were $1.4M; $1.5M raised in July 2025 via equity offering.

  • Net cash used in operations for the first half of 2025 was $2.9M, compared to $5.6M in the prior year.

Outlook and guidance

  • Sequential quarterly revenue growth expected in Q3 and Q4 2025, driven by new product launches (SafePath 8, SafePath Kids, SafePath OS) and expanded customer features.

  • Gross margin expected to remain strong at 72–75% for Q3 2025.

  • Management is considering further cost reductions, asset sales, or capital raises to address liquidity needs.

  • Current liquidity may not be sufficient to fund operations over the next twelve months without additional capital.

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Frequently asked questions

Smith Micro Software Inc develops and markets software solutions aimed at enhancing mobile and wireless user experiences. The company's products include platforms for family safety, location tracking, device management, and digital lifestyle services. Smith Micro serves wireless service providers, cable operators, and device manufacturers. The company is headquartered in Pittsburgh, Pennsylvania, and its shares are listed on the NASDAQ.

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