Revenue has entered a sustained contraction phase, with the most recent quarterly top-line falling to $4.2 million while operating margins remain severely constrained at -58.3%.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 16.96M | 17.36M | 20.55M | 40.86M | 48.51M | 58.42M | 51.3M | 43.35M | 26.29M | 22.97M | 28.23M | 39.51M | 36.98M | 42.67M | 43.33M | 57.77M | 130.5M | 107.28M | 98.42M | 73.38M | 54.47M | 20.26M | 13.32M | 7.22M | 7.13M | 10.76M | 13.74M | 10.7M | 9.5M | 11.7M | 22.1M |
| Revenue Growth % | -12.47% | -15.53% | -49.7% | -15.77% | -16.96% | 13.88% | 18.35% | 64.91% | 14.41% | -18.63% | -28.53% | 6.84% | -13.35% | -1.51% | -24.99% | -55.73% | 21.65% | 9% | 34.13% | 34.71% | 168.88% | 52.13% | 84.53% | 1.19% | -33.74% | -21.66% | 28.39% | 12.63% | -18.8% | -47.06% | 22.78% |
| Cost of Goods Sold | 4.16M | 4.5M | 6.13M | 10.56M | 14.21M | 12.7M | 5.19M | 3.93M | 4.33M | 5.08M | 7.56M | 8.15M | 9.32M | 9.71M | 8.45M | 13.76M | 15.51M | 15.49M | 20.11M | 20.64M | 20.26M | 4.1M | 2.91M | 1.67M | 2.2M | 3.93M | 2.54M | 1.6M | 2.2M | 3.2M | 6.3M |
| COGS % of Revenue | - | 25.95% | 29.8% | 25.84% | 29.29% | 21.73% | 10.12% | 9.06% | 16.48% | 22.12% | 26.79% | 20.63% | 25.2% | 22.75% | 19.5% | 23.82% | 11.88% | 14.44% | 20.43% | 28.13% | 37.19% | 20.25% | 21.85% | 23.16% | 30.88% | 36.5% | 18.47% | 14.95% | 23.16% | 27.35% | 28.51% |
| Gross Profit | 12.8M | 12.86M | 14.43M | 30.3M | 34.3M | 45.72M | 46.11M | 39.42M | 21.95M | 17.89M | 20.67M | 31.36M | 27.66M | 32.97M | 34.88M | 44.01M | 114.99M | 91.79M | 78.32M | 52.73M | 34.21M | 16.16M | 10.41M | 5.54M | 4.93M | 6.83M | 11.2M | 9.1M | 7.3M | 8.5M | 15.8M |
| Gross Margin % | 75.49% | 74.05% | 70.2% | 74.16% | 70.71% | 78.27% | 89.88% | 90.94% | 83.52% | 77.88% | 73.21% | 79.37% | 74.8% | 77.25% | 80.5% | 76.18% | 88.12% | 85.56% | 79.57% | 71.87% | 62.81% | 79.75% | 78.15% | 76.84% | 69.12% | 63.5% | 81.53% | 85.05% | 76.84% | 72.65% | 71.49% |
| Gross Profit Growth % | - | -10.89% | -52.38% | -11.66% | -24.98% | -0.84% | 16.97% | 79.57% | 22.69% | -13.44% | -34.07% | 13.35% | -16.09% | -5.48% | -20.74% | -61.73% | 25.28% | 17.21% | 48.51% | 54.14% | 111.76% | 55.25% | 87.66% | 12.5% | -27.88% | -38.99% | 23.09% | 24.66% | -14.12% | -46.2% | 28.46% |
| Operating Expenses | 39.07M | 32.1M | 63.82M | 48.36M | 65.23M | 76.66M | 42.59M | 29.31M | 22.99M | 23.69M | 35.86M | 33.89M | 36.97M | 55.2M | 61.64M | 93.58M | 96.61M | 80.68M | 75.61M | 48.48M | 25.42M | 11.99M | 6.94M | 6.43M | 6.65M | 12.57M | 14.72M | 14.7M | 11.2M | 11.7M | 10.5M |
| OpEx % of Revenue | - | 184.9% | 310.48% | 118.34% | 134.46% | 131.22% | 83.02% | 67.63% | 87.48% | 103.11% | 127.01% | 85.79% | 99.97% | 129.34% | 142.27% | 162% | 74.03% | 75.21% | 76.83% | 66.08% | 46.67% | 59.21% | 52.14% | 89.11% | 93.3% | 116.85% | 107.12% | 137.38% | 117.89% | 100% | 47.51% |
| Selling, General & Admin | 15.21M | 15.99M | 19.46M | 23.87M | 29.05M | 29.5M | 21.9M | 17.44M | 14.39M | 14.74M | 19.96M | 20.03M | 22.78M | 33.89M | 36.88M | 51.87M | 53.85M | 44.15M | 44.8M | 33.71M | 17.52M | 8.03M | 4.39M | 3.92M | 4.49M | 9.58M | 9.56M | 10M | 7.2M | 7.7M | 6.7M |
| SG&A % of Revenue | - | 92.08% | 94.67% | 58.41% | 59.88% | 50.5% | 42.68% | 40.23% | 54.75% | 64.15% | 70.68% | 50.7% | 61.59% | 79.42% | 85.11% | 89.8% | 41.27% | 41.16% | 45.52% | 45.94% | 32.17% | 39.64% | 32.95% | 54.38% | 62.98% | 89% | 69.61% | 93.46% | 75.79% | 65.81% | 30.32% |
| Research & Development | 9.71M | 10.72M | 14.09M | 17.14M | 29.87M | 26.2M | 17.77M | 11.68M | 8.6M | 8.95M | 15.91M | 13.86M | 14.19M | 21.3M | 24.77M | 41.71M | 42.76M | 36.53M | 30.81M | 14.77M | 7.9M | 3.96M | 2.56M | 2.51M | 2.16M | 3M | 4.04M | 3.8M | 3.3M | 3.3M | 3.3M |
| R&D % of Revenue | - | 61.73% | 68.52% | 41.96% | 61.57% | 44.84% | 34.64% | 26.95% | 32.73% | 38.97% | 56.33% | 35.09% | 38.38% | 49.92% | 57.16% | 72.21% | 32.77% | 34.05% | 31.3% | 20.13% | 14.5% | 19.56% | 19.2% | 34.73% | 30.32% | 27.85% | 29.41% | 35.51% | 34.74% | 28.21% | 14.93% |
| Other Operating Expenses | 3.33M | 5.4M | 30.27M | 7.34M | 6.31M | 20.96M | 2.92M | 194K | -26K | -8K | -22K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.11M | 900K | 700K | 700K | 500K |
| Operating Income | -26.26M | -19.25M | -49.39M | -18.05M | -30.93M | -30.94M | 3.52M | 10.11M | -1.21M | -5.67M | -15.9M | -2.54M | -11.74M | -27.83M | -27M | -165.67M | 18.38M | 11.11M | 2.7M | 4.25M | 8.79M | 4.16M | 3.46M | -885K | -1.72M | -6.12M | -3.52M | -5.6M | -3.9M | -3.2M | 5.3M |
| Operating Margin % | -154.84% | -110.84% | -240.28% | -44.19% | -63.75% | -52.96% | 6.86% | 23.31% | -4.62% | -24.7% | -56.33% | -6.42% | -31.75% | -65.21% | -62.32% | -286.78% | 14.08% | 10.36% | 2.74% | 5.79% | 16.13% | 20.54% | 26.01% | -12.26% | -24.18% | -56.88% | -25.59% | -52.34% | -41.05% | -27.35% | 23.98% |
| Operating Income Growth % | - | 61.03% | -173.55% | 41.62% | 0.04% | -978.67% | -65.16% | 932.37% | 78.6% | 64.33% | -526.67% | 78.39% | 57.81% | -3.07% | 83.7% | -1001.29% | 65.46% | 311.29% | -36.43% | -51.64% | 111.18% | 20.16% | 491.3% | 48.67% | 71.83% | -74.14% | 37.23% | -43.59% | -21.88% | -160.38% | -10.17% |
| EBITDA | -20.97M | -13.85M | -43.09M | -10.66M | -22.23M | -21.6M | 7.1M | 11.45M | -435K | -4.75M | -14.52M | -634K | -8.81M | -23.82M | -22.57M | -155.49M | 30.16M | 21.65M | 11.15M | 7.45M | 10.88M | 5.06M | 3.61M | -475K | -1.12M | -4.87M | -2.4M | -4.7M | -3.2M | -2.5M | 5.8M |
| EBITDA Margin % | -123.62% | -79.76% | -209.63% | -26.09% | -45.82% | -36.97% | 13.85% | 26.41% | -1.65% | -20.68% | -51.44% | -1.6% | -23.83% | -55.83% | -52.09% | -269.17% | 23.11% | 20.18% | 11.33% | 10.15% | 19.98% | 24.99% | 27.1% | -6.58% | -15.69% | -45.21% | -17.49% | -43.93% | -33.68% | -21.37% | 26.24% |
| EBITDA Growth % | -20.39% | 67.86% | -304.22% | 52.04% | -2.9% | -404.1% | -37.94% | 2731.26% | 90.85% | 67.28% | -2190.85% | 92.8% | 63.02% | -5.55% | 85.48% | -615.56% | 39.31% | 94.21% | 49.68% | -31.58% | 115.03% | 40.26% | 859.79% | 57.55% | 77% | -102.5% | 48.87% | -46.88% | -28% | -143.1% | -4.92% |
| D&A (Non-Cash Add-back) | 5.3M | 5.4M | 6.3M | 7.39M | 8.7M | 9.34M | 3.58M | 1.34M | 779K | 922K | 1.38M | 1.9M | 2.93M | 4.01M | 4.43M | 10.18M | 11.78M | 10.54M | 8.45M | 3.2M | 2.1M | 901K | 146K | 410K | 605K | 1.25M | 1.11M | 900K | 700K | 700K | 500K |
| EBIT | -7.62M | -29M | -25.4M | -17.88M | -26.37M | -18.07M | 3.52M | 10.3M | -1.04M | -5.8M | -15.19M | -2.54M | -9.31M | -22.23M | -26.76M | -49.58M | 18.38M | 11.11M | 2.7M | 4.25M | 8.79M | 4.16M | 3.46M | -957K | -1.72M | -5.74M | -3.52M | -5.6M | -3.7M | -3M | 5.3M |
| Net Interest Income | -907K | -407K | 112K | -6.35M | -2.68M | 34K | 96K | 228K | -472K | -1.12M | -313K | 1K | -5K | 30K | 94K | 131K | 130K | 381K | 739K | 0 | 1.4M | 667K | 0 | -35K | 0 | 0 | 414K | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 112K | 0 | 0 | 34K | 96K | 228K | 0 | 0 | 0 | 0 | 0 | 30K | 94K | 131K | 130K | 381K | 739K | 4.25M | 1.4M | 667K | 53K | 37K | 0 | 0 | 414K | 0 | 0 | 0 | 0 |
| Interest Expense | 907K | 407K | 0 | 6.35M | 2.68M | 0 | 0 | 0 | 472K | 1.12M | 313K | 4K | 30K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 72K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -1.86M | -10.16M | 680K | -6.18M | 1.87M | 110K | 804K | 697K | -1.51M | -1.53M | 333K | 4K | -8K | 30K | 1.3M | 131K | 130K | 381K | 739K | 4.25M | 1.4M | 667K | 53K | -35K | -26K | -294K | 414K | 400K | 700K | 700K | -4.4M |
| Pretax Income | -28.12M | -29.4M | -48.71M | -24.24M | -29.05M | -30.83M | 4.33M | 10.8M | -2.73M | -7.21M | -15.57M | -2.53M | -11.75M | -27.8M | -25.7M | -165.53M | 18.51M | 11.49M | 3.44M | 8.5M | 10.19M | 4.83M | 3.52M | -920K | -1.75M | -6.04M | -3.1M | -5.2M | -3.1M | -2.4M | 900K |
| Pretax Margin % | -165.81% | -169.34% | -236.97% | -59.32% | -59.89% | -52.77% | 8.43% | 24.92% | -10.37% | -31.37% | -55.15% | -6.41% | -31.77% | -65.14% | -59.31% | -286.56% | 14.18% | 10.71% | 3.5% | 11.59% | 18.71% | 23.83% | 26.4% | -12.75% | -24.54% | -56.08% | -22.57% | -48.6% | -32.63% | -20.51% | 4.07% |
| Income Tax | -77K | 693K | -13K | 158K | 226K | 215K | 160K | 80K | 13K | -546K | -229K | 68K | 49K | 153K | -234K | -5.93M | 6.17M | 6.74M | 4.17M | 5.34M | 1.23M | 104K | 71K | 3K | -1.06M | 90K | 54K | 900K | -1.1M | -800K | 2.4M |
| Effective Tax Rate % | 0.27% | -2.36% | 0.03% | -0.65% | -0.78% | -0.7% | 3.7% | 0.74% | -0.48% | 7.58% | 1.47% | -2.68% | -0.42% | -0.55% | 0.91% | 3.58% | 33.3% | 58.64% | 121.28% | 62.82% | 12.11% | 2.15% | 2.02% | -0.33% | 60.69% | -1.49% | -1.74% | -17.31% | 35.48% | 33.33% | 266.67% |
| Net Income | -28.05M | -30.1M | -48.7M | -24.4M | -29.28M | -31.04M | 4.17M | 10.72M | -2.74M | -6.66M | -15.34M | -2.6M | -11.8M | -27.95M | -25.46M | -159.61M | 12.35M | 4.75M | -732K | 3.16M | 8.96M | 4.72M | 3.44M | -923K | -688K | -6.13M | -3.15M | -6.1M | -2M | -1.6M | -1.5M |
| Net Margin % | -165.35% | -173.33% | -236.91% | -59.7% | -60.35% | -53.14% | 8.12% | 24.74% | -10.42% | -28.99% | -54.34% | -6.59% | -31.91% | -65.5% | -58.77% | -276.29% | 9.46% | 4.43% | -0.74% | 4.31% | 16.44% | 23.32% | 25.87% | -12.79% | -9.65% | -56.91% | -22.97% | -57.01% | -21.05% | -13.68% | -6.79% |
| Net Income Growth % | -22.65% | 38.2% | -99.61% | 16.68% | 5.68% | -845.33% | -61.15% | 491.31% | 58.87% | 56.59% | -489.66% | 77.95% | 57.79% | -9.78% | 84.05% | -1392.77% | 159.81% | 749.18% | -123.16% | -64.71% | 89.59% | 37.13% | 473.24% | -34.16% | 88.77% | -94.14% | 48.28% | -205% | -25% | -6.67% | -127.27% |
| Net Income (Continuing) | -28.05M | -30.1M | -48.7M | -24.4M | -29.28M | -31.04M | 4.17M | 10.72M | -2.74M | -6.66M | -15.34M | -2.6M | -11.8M | -27.95M | -25.46M | -159.61M | 12.35M | 4.75M | -732K | 3.16M | 8.96M | 4.72M | 3.44M | -923K | -688K | -6.13M | -3.15M | -6.1M | -1.9M | -1.5M | -1.5M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -5.46 | -7.30 | -19.70 | -15.05 | -21.15 | -24.25 | 4.00 | 11.60 | -4.90 | -19.75 | -51.35 | -9.05 | -46.45 | -120.95 | -14.20 | -89.60 | 7.20 | 2.80 | -0.47 | 2.00 | 7.00 | 4.20 | 3.80 | -1.10 | -0.85 | -7.55 | -3.95 | -7.90 | -2.65 | -2.15 | -2.00 |
| EPS Growth % | 26.2% | 62.94% | -30.9% | 28.84% | 12.78% | -706.25% | -65.52% | 336.73% | 75.19% | 61.54% | -467.4% | 80.52% | 61.6% | -751.76% | 84.15% | -1344.44% | 157.14% | 692.59% | -123.63% | -71.43% | 66.67% | 10.53% | 445.45% | -29.41% | 88.74% | -91.14% | 50% | -198.11% | -23.26% | -7.5% | -133.33% |
| EPS (Basic) | - | -7.30 | -19.70 | -15.20 | -21.20 | -24.40 | 4.10 | 12.30 | -4.90 | -19.75 | -51.35 | -9.20 | -46.45 | -121.60 | -14.20 | -89.60 | 7.20 | 3.00 | -0.47 | 2.20 | 7.60 | 4.40 | 4.00 | -1.10 | -0.85 | -7.55 | -3.95 | -8.00 | -2.65 | -2.15 | -2.15 |
| Diluted Shares Outstanding | 5.14M | 4.12M | 2.47M | 1.62M | 1.39M | 1.28M | 1.07M | 924.77K | 558.05K | 337.23K | 298.77K | 287.15K | 254.05K | 231.14K | 1.79M | 1.78M | 1.73M | 1.64M | 1.55M | 1.55M | 1.27M | 1.14M | 920.6K | 825.55K | 811.75K | 811.6K | 799.2K | 772.73K | 753.75K | 750K | 750K |
| Basic Shares Outstanding | 5.14M | 4.12M | 2.47M | 1.6M | 1.38M | 1.27M | 1.04M | 914.05K | 558.05K | 337.23K | 298.77K | 282.83K | 254.05K | 229.88K | 1.79M | 1.78M | 1.71M | 1.62M | 1.55M | 1.49M | 1.19M | 1.07M | 863.35K | 825.55K | 811.75K | 811.6K | 799.2K | 764.6K | 753.75K | 750K | 699.6K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Imminent liquidity and solvency risk
As reported in recent financial filings, Smith Micro's revenue has experienced a consistent downward trajectory, evidenced by a 15.53% year-over-year decline in the most recent quarter, suggesting that legacy subscriber attrition is currently outpacing the company's ability to secure new growth through its carrier-integrated SafePath platform.
The consistent revenue decay indicates that the company's reliance on a concentrated Tier 1 carrier base is failing to provide a stable growth floor. Investors should monitor whether this trend reflects a structural shift in carrier priorities or merely a temporary delay in platform migration cycles.
According to the company's quarterly income statements, Smith Micro has maintained a relatively robust gross margin profile, averaging approximately 74% over the last ten quarters, which highlights the inherent scalability of its software-based business model despite the broader operational challenges currently facing the organization.
While the gross margin remains healthy, it appears insufficient to offset the heavy R&D and SG&A burden required to support bespoke carrier integrations. This divergence suggests that the company's pricing power is not being effectively leveraged to achieve the scale necessary for operational profitability.
Based on the provided income statement data, Smith Micro exhibits a profound lack of operating leverage, with operating margins frequently dipping below -100%, indicating that the company's fixed cost structure is fundamentally misaligned with its current revenue generation capacity in the competitive wireless software market.
The inability to scale operating income alongside gross profit suggests that the company's cost base is largely rigid and tied to specialized engineering talent. Without a significant increase in subscriber volume, the current operating model appears to be structurally incapable of reaching a break-even point.
As evidenced by the historical income statement data, Smith Micro's R&D and SG&A expenses consistently exceed total gross profit, creating a structural deficit that has necessitated ongoing reliance on external capital to sustain operations while the company attempts to navigate its complex carrier-grade software development requirements.
The persistent high level of R&D spending suggests that the company is trapped in a cycle of continuous customization for its carrier partners. This expense discipline, or lack thereof, warrants further investigation into whether these costs are truly essential for maintenance or if they represent inefficient capital allocation.
Data from recent financial disclosures indicates that cash reserves have dwindled to approximately $1.49 million, a precarious position that suggests the company may face an imminent liquidity crisis if it cannot rapidly improve its cash flow or secure additional dilutive financing to cover ongoing operating losses.
Short-sellers would likely focus on the company's inability to achieve self-sustaining cash flow despite its long-standing carrier relationships. The combination of declining revenue and minimal cash reserves creates a high-risk environment where the company's survival may depend on external factors beyond its direct operational control.
Quick answers to the most common questions about buying SMSI stock.
For fiscal year 2025, Smith Micro Software, Inc. (SMSI) reported total revenue of $17.4M. This represents a 21.4% decline compared to $22.1M in 1996.
Smith Micro Software, Inc. (SMSI) reported a net loss of $30.1M for the fiscal year ending 2025.
Smith Micro Software, Inc. (SMSI) reported an operating income of $-19.2M, resulting in an operating profit margin of -110.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Smith Micro Software, Inc. (SMSI) generated $12.9M in gross profit for the year, representing a gross profit margin of 74.1%. This demonstrates the company's core pricing power and production efficiency.