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SMSISmith Micro Software, Inc.
$2.66$11M
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  4. Financial Ratios

Smith Micro Software, Inc. (SMSI) Financial Ratios

Latest Ratios: P/E Ratio -0.4x · EV/EBITDA N/A · ROE -101.8%. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

SMSI Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$11M$11M$16M$54M$116M$252M$232M$147M$40M$38M$19M
Enterprise Value$12M$12M$16M$50M$116M$242M$212M$126M$28M$40M$19M
P/E Ratio →-0.36—————54.2013.72———
P/S Ratio0.630.640.791.312.404.314.523.401.531.670.66
P/B Ratio0.600.610.400.711.522.513.953.021.958.396.13
P/FCF——————35.1117.68———
P/OCF——————29.2514.74———

P/E links to full P/E history page with 30-year chart

SMSI EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—0.690.781.222.394.144.142.911.071.740.68
EV / EBITDA——————29.8811.00———
EV / EBIT——————60.2912.23———
EV / FCF——————32.1615.12———

SMSI Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin74.1%74.1%70.2%74.2%70.7%78.3%89.9%90.9%83.5%77.9%73.2%
Operating Margin-110.8%-110.8%-240.3%-44.2%-63.7%-53.0%6.9%23.3%-4.6%-24.7%-56.3%
Net Profit Margin-173.3%-173.3%-236.9%-59.7%-60.4%-53.1%8.1%24.7%-10.4%-29.0%-54.3%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE-101.8%-101.8%-83.9%-32.1%-33.1%-39.0%7.8%31.0%-21.8%-174.7%-179.6%
ROA-82.4%-82.4%-72.9%-25.8%-26.9%-33.1%6.2%24.8%-14.0%-47.3%-79.1%
ROIC-48.3%-48.3%-66.1%-18.4%-27.9%-35.8%7.9%42.3%-12.5%-89.2%-276.5%
ROCE-62.8%-62.8%-82.1%-22.5%-32.9%-36.5%5.9%26.1%-7.9%-63.5%-122.1%

SMSI Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.130.130.060.040.180.060.110.14—0.820.85
Debt / EBITDA——————0.880.61———
Net Debt / Equity—0.05-0.01-0.05-0.01-0.10-0.33-0.44-0.590.340.12
Net Debt / EBITDA——————-2.75-1.86———
Debt / FCF——————-2.96-2.55———
Interest Coverage-71.24-71.24—-2.81-9.84———-2.21-5.18-48.53

SMSI Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio0.740.741.772.211.283.064.696.995.941.651.44
Quick Ratio0.740.741.772.211.283.064.696.995.941.651.44
Cash Ratio0.240.240.500.930.681.723.084.943.590.460.40
Asset Turnover—0.700.430.480.470.510.700.711.041.661.97
Inventory Turnover——————————630.33
Days Sales Outstanding—38.20101.5970.6779.0166.1687.8591.7399.0181.7464.14

SMSI Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield———————0.1%1.0%——
Payout Ratio———————————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield——————1.8%7.3%———
FCF Yield——————2.8%5.7%———
Buyback Yield0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Total Shareholder Yield0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.1%1.0%0.0%0.0%
Shares Outstanding—$4M$2M$2M$1M$1M$1M$924775$558050$337225$298775

Key Metrics

Growth RegimeContracting
ProfitabilityNegative
Balance SheetVulnerable
Cash FlowBurning
Top Statement Risk

Imminent liquidity and solvency

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Distressed Valuation Reflects Operational Uncertainty

Based on current market data, Smith Micro trades at a price-to-sales multiple of 0.67, a valuation level that suggests investors are heavily discounting the company's future growth prospects due to persistent revenue contraction and the absence of a clear path to profitability in the near term.

The lack of a meaningful P/E ratio, combined with a P/B of 0.63, indicates that the market is pricing the firm as a distressed asset rather than a growth-oriented software provider. This valuation suggests that the market is skeptical of the company's ability to leverage its carrier relationships into sustainable earnings, effectively treating the equity as a speculative option on a potential turnaround.

Persistent Capital Decay Undermines Value

As reported in financial statements, Smith Micro's ROIC has remained consistently negative over the last ten quarters, reaching a low of -41.3% in 2024Q1, which highlights a structural inability to generate adequate returns on the capital invested into its carrier-integrated software platform and recent acquisitions.

The persistent negative trend in ROIC suggests that the company's investments in R&D and business development are failing to yield the necessary economies of scale. Investors should monitor whether management can pivot toward a more capital-efficient model, as the current trajectory indicates that capital is being consumed rather than compounded.

Working Capital Inefficiencies Hamper Liquidity

According to recent SEC filings, Smith Micro's days sales outstanding have fluctuated significantly, peaking at 97 days in 2023Q4, which reveals a reliance on a concentrated customer base that appears to exert substantial leverage over the company's cash conversion cycle and overall working capital efficiency.

The high and volatile DPO, which reached 207 days in 2025Q4, suggests that the company may be stretching its payables to manage its dwindling cash position. This reliance on supplier credit is a precarious strategy that may become unsustainable if the company's primary carrier partners delay payments or if vendors tighten credit terms.

Liquidity Buffer Nears Critical Threshold

Based on the most recent quarterly data, the current ratio has declined to 1.37, a level that, when paired with the company's minimal cash reserves of $1.49 million, leaves the firm highly vulnerable to even minor operational disruptions or unexpected delays in milestone-based carrier payments.

The company's liquidity position appears increasingly fragile, as the current ratio provides a misleading sense of security given the lack of liquid assets relative to the ongoing cash burn. Without a significant infusion of capital or a rapid improvement in operating cash flow, the company may face severe constraints in meeting its short-term obligations.

Misapplied SaaS Metrics Obscure Reality

Analysts frequently misapply standard SaaS valuation multiples to Smith Micro, failing to account for the fact that the company's revenue is derived from a white-label carrier model rather than a direct-to-consumer subscription business, which fundamentally alters the risk profile and the durability of its recurring revenue.

Using standard SaaS metrics like EV/Sales ignores the extreme customer concentration and the lack of control over the end-user acquisition funnel. A more appropriate approach would be to focus on the cash-neutral revenue requirement, which adjusts for the high fixed-cost burden and the inherent volatility of milestone-based carrier contracts.

Download Financial Ratios Data

Includes 30+ ratios · 30 years · Updated daily

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SMSI — Frequently Asked Questions

Quick answers to the most common questions about buying SMSI stock.

What is Smith Micro Software, Inc.'s P/E ratio?

Smith Micro Software, Inc.'s current P/E ratio is -0.4x. The historical average is 34.0x.

What is Smith Micro Software, Inc.'s ROE?

Smith Micro Software, Inc.'s return on equity (ROE) is -101.8%. The historical average is -35.6%.

Is SMSI stock overvalued?

Based on historical data, Smith Micro Software, Inc. is trading at a P/E of -0.4x. Compare with industry peers and growth rates for a complete picture.

What are Smith Micro Software, Inc.'s profit margins?

Smith Micro Software, Inc. has 74.1% gross margin and -110.8% operating margin.