Samsara (IOT) Q2 2025 earnings summary

Executive summary

• Achieved Q2 FY2025 revenue of $300.2M, up 37% year-over-year, and ARR of $1.264B, up 36% year-over-year.

• Added 2,133 customers with ARR over $100,000, a 41% increase year-over-year, and 14 customers with over $1 million in ARR.

• Launched new products including Asset Tag, Connected Workflows, Connected Training, and AI-powered safety features, driving strong customer adoption and expansion.

• Recognized for digital transformation, safety, efficiency, innovation, and company culture through industry awards and new leadership appointments.

• Collected over 10 trillion data points annually, enhancing AI-driven insights and operational milestones.

Financial highlights

• Non-GAAP gross margin was 77% in Q2 FY25, up from 75% a year ago; non-GAAP operating margin reached a record 6%, up nine percentage points year-over-year.

• Adjusted free cash flow margin was 4% in Q2 FY25, up from 2% a year ago; free cash flow for the six months ended August 3, 2024 was $31.7M.

• Non-GAAP operating income was $17.6M, with GAAP operating loss improving to $(58.2)M from $(69.8)M a year ago.

• Net loss per share was $(0.09), improved from $(0.11) in the prior year quarter; non-GAAP net income per share was $0.05.

• Cash, cash equivalents, and investments totaled $880.3M as of August 3, 2024.

Outlook and guidance

• Q3 FY25 revenue expected at $309M–$311M (30–31% YoY growth); non-GAAP operating margin 4%; non-GAAP EPS $0.03–$0.04.

• FY2025 revenue guidance raised to $1.224B–$1.228B (31–34% YoY growth); non-GAAP operating margin 5%; non-GAAP EPS $0.16–$0.18.

• Q4 FY2025 revenue outlook $334M–$336M (21–22% YoY growth); non-GAAP operating margin 8%; non-GAAP EPS $0.06–$0.07.

• Management expects continued investment in growth initiatives, with sufficient liquidity to support operations for at least the next 12 months.