Smith Micro Software (SMSI) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 16% QoQ and 15% YoY to $5.017M; gross margin reached 81.6%, while GAAP and non-GAAP losses narrowed YoY.

• Third consecutive quarter of sequential revenue growth; Q4 revenue guidance is $5.4M–$5.6M.

• Commercial momentum included three new Q3 contracts, an expanded multi-year Tier 1 agreement, and SafePath launches; substantial doubt about continuing as a going concern within one year remains unalleviated.

Financial highlights

• Q3 revenue was $5.017M vs. $4.347M YoY; gross profit was $4.096M vs. $3.211M, and operating loss narrowed to $1.462M from $4.485M.

• Q3 GAAP net loss attributable to common stockholders was $1.698M, or $0.30/share, vs. $5.170M, or $1.23/share; non-GAAP net loss was $281K, or $0.05/share.

• 9M revenue was $13.580M vs. $13.389M; gross profit was $10.936M vs. $9.823M.

• 9M GAAP net loss was $8.244M vs. $24.774M; non-GAAP net loss was $2.8M, or $0.52/share, vs. $8.2M, or $2.10/share.

• Cash was $2.369M at Sept. 30; 9M operating cash use was $4.827M and financing cash inflow was $5.724M.

Outlook and guidance

• Q4 2026 revenue expected at $5.4M–$5.6M, with double-digit sequential growth supported by new contract contributions.

• Q4 gross margin expected at 81%–83%; non-GAAP operating expenses expected to remain relatively flat QoQ.

• Management plans to grow subscribers, add customers and expand offerings; further financing, restructuring, credit, product-line sales or IP licensing may be pursued, with availability and timing uncertain.

• First SDK/API customer launch expected in H1 2027; management cited a growing pipeline and expects further contract signings and market launches.