Smith Micro Software (SMSI) Q4 2025 earnings summary

Executive summary

• Strategic focus on SafePath OS for kids and seniors doubled the addressable market and drove new customer wins, with two new carrier launches expected by mid-2026.

• Revenue for Q4 2025 was $4.0 million, down from $5.0 million in Q4 2024; full-year 2025 revenue was $17.4 million, down from $20.6 million in 2024.

• Gross profit margin improved to 76.4% in Q4 2025 from 75.6% in Q4 2024; full-year margin rose to 74.1% from 70.2% year-over-year.

• Leadership transition announced: Bill Smith to Executive Chairman, Tim Hofmeyer (also referenced as Tim Huffmyer) to become President and CEO, and Bethany Braun to assume CFO role.

• Additional $4 million in funding from Bill and Diva Smith to support the path to profitability.

Financial highlights

• Q4 2025 revenue was $4 million, down 20% year-over-year and 7% sequentially; full-year 2025 revenue was $17.4 million, down 16%.

• Q4 2025 gross profit was $3 million (76.4% margin); full-year gross profit was $12.9 million (74.1% margin).

• Q4 2025 GAAP net loss was $4.7 million ($0.20/share); full-year GAAP net loss was $30.1 million ($1.46/share).

• Q4 2025 Non-GAAP net loss was $1.8 million ($0.08/share); full-year Non-GAAP net loss was $10.6 million ($0.52/share).

• Cash and cash equivalents at year-end 2025 were $1.5 million.

Outlook and guidance

• Q1 2026 revenue expected between $4.2 million and $4.5 million.

• Q1 2026 gross margin expected at 76%-78%, with long-term target of 85%.

• Non-GAAP profit anticipated in Q2 2026 and beyond, supported by cost reductions and new customer wins.

• Management expressed confidence in returning to growth and profitability, supported by cost reductions and strategic investments.

• Focus on expanding SafePath OST solutions and deepening relationships with Tier 1 customers.