Core Viewpoint - Samsara, a sensor data platform based in San Francisco, saw its stock price surge over 18% to $42.31 following the announcement of a 26% revenue growth target for fiscal year 2026, supported by AI-driven customer adoption [1] Financial Performance - In the second quarter, Samsara reported revenue of $391.5 million, representing a year-over-year increase of 30%, and a 31% increase when adjusted for constant currency [1] - The annualized recurring revenue at the end of the second quarter reached $1.6 billion, also reflecting a 30% year-over-year growth [1] Market Position and Strategy - The CEO, Sanjit Biswas, emphasized the company's role as a trusted partner for some of the largest and most complex enterprises globally, witnessing increased demand for its platform driven by the rise of the AI-driven economy [1] - The company is innovating at an unprecedented pace and aims to create greater value for customers that support the global economy [1]

Group 1: Hong Kong Stock Market Highlights - China Tobacco Hong Kong (06055) rose over 2% after announcing exclusive distribution agreements for brand cigars with Hubei and Shandong Tobacco [1] - Sportswear stocks generally increased, with Li Ning (02331) up nearly 1% and Tmall (06110) up nearly 2%, following a government directive to enhance the modern sports industry and boost consumption [1] - He Yu-B (02256) surged over 3% as the company announced multiple positive developments, including the approval of oral PD-L1 combined with Gorai Leisai for Phase II clinical trials [1] - Gold stocks collectively rose, with Lingbao Gold (03330) up over 4%, China Gold International (02099) up over 1%, and Zijin Mining (02899) up over 3%, amid expectations of a U.S. interest rate cut [1] - UBTECH (09880) increased over 2% after Citigroup reported that the company has received 400 million RMB in humanoid robot orders and secured a $1 billion strategic investment from a Middle Eastern fund [1] - Huimai Technology (01860) surged over 12%, reaching a historical high, with a year-to-date stock price increase of over 110% due to the continuous iteration of its AI-driven smart bidding system [1] Group 2: Other Notable Stocks - Wanka Yilian (01762) rose over 11% after announcing a comprehensive cooperation memorandum with Alibaba Cloud to create an AI marketing ecosystem [2] - Longpan Technology (02465) increased over 10%, with Citic Securities indicating potential opportunities in the battery sector due to an upcoming significant meeting [2] - Juzi Bio (02367) rose over 4%, with institutions optimistic about the recovery of live streaming during the upcoming Double Eleven shopping festival [2] - Shoucheng Holdings (00697) increased over 8% after its subsidiary announced additional investment in Songyan Power amounting to several million RMB [2] Group 3: U.S. Stock Market Highlights - Salesforce (CRM.US) fell 4.85% after reporting a 9.8% year-over-year revenue growth for Q2, with Q3 revenue guidance slightly below expectations [3] - American Eagle (AEO.US) surged 37.96% after exceeding expectations in its Q2 earnings report [3] - Hewlett Packard Enterprise (HPE.US) rose 1.49% with a 19% year-over-year revenue growth in Q3, marking a record high [3] - United Microelectronics (UMC.US) increased 3.46%, reporting a 1.86% year-over-year sales growth for the first eight months of the year [3] - ZTO Express (ZTO.US) continued to rise by 0.94%, with the logistics industry index in China at 50.9%, up 0.4 percentage points from the previous month [3] - Bilibili (BILI.US) rose 0.99%, with research indicating high growth in the gaming industry supported by policy, expecting continued quarter-over-quarter improvement [3] - Waterdrop (WDH.US) increased 2.25%, reporting nearly a 120% growth in net profit attributable to shareholders, driven by AI model empowerment [3] Group 4: Additional U.S. Stock Movements - Sanofi (SNY.US) fell 9.14% despite achieving all primary and secondary endpoints in a Phase III study for Amlitelimab, as results did not meet market expectations [4] - Toyota (TM.US) rose 2.40% after announcing plans to produce a pure electric vehicle model at its Czech factory, marking its first electric vehicle production in Europe [4] - Baidu (BIDU.US) increased 1.88% following the release of an action plan by the Ministry of Industry and Information Technology to enhance intelligent cloud services [4] Group 5: Earnings Reports and Forecasts - C3.ai (AI.US) fell 7.31% after reporting Q1 results and revenue guidance for FY2026 that fell short of expectations [5] - Samsara (IOT.US) rose over 10% with a 30% year-over-year revenue growth in Q2 [5] - UiPath (PATH.US) increased nearly 5%, reporting Q2 revenue of $362 million, a 14% year-over-year growth, and projecting FY2026 revenue between $1.571 billion and $1.576 billion [5] - DocuSign (DOCU.US) rose nearly 9% after reporting Q2 revenue of $800.6 million, a 9% year-over-year increase, with GAAP gross margin at 79.3% [5]

Core Insights - Samsara Inc. reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.07 per share, and showing an increase from $0.05 per share a year ago, resulting in an earnings surprise of +71.43% [1] - The company achieved revenues of $391.48 million for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 5.15% and up from $300.2 million year-over-year [2] - Samsara has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The future performance of Samsara's stock will largely depend on management's commentary during the earnings call and the sustainability of the recent earnings surprise [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.10 on revenues of $393.92 million, and for the current fiscal year, it is $0.41 on revenues of $1.55 billion [7] Industry Context - The Internet - Software industry, to which Samsara belongs, is currently ranked in the top 29% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - The company ended Q2 with $1.6 billion in Annual Recurring Revenue (ARR), growing 30% year over year [4] - Net new ARR for Q2 was $105 million, representing a 19% year-over-year increase [15][17] - Q2 revenue reached $391 million, also growing 30% year over year, or 31% in constant currency [17][22] - Non-GAAP gross margin was 78%, up 1 percentage point year over year, while non-GAAP operating margin was 15%, up 9 percentage points [22] Business Line Data and Key Metrics Changes - Customers with $100,000+ ARR contributed close to $1 billion of ARR, up 35% year over year, representing 59% of total ARR [4][15] - The company added 17 customers with more than $1 million in ARR, a quarterly record, with this cohort now generating over 20% of total ARR [4][15] - Approximately 8% of net new Annual Contract Value (ACV) came from new products launched in the past year [15][22] Market Data and Key Metrics Changes - 15% of net new ACV came from non-U.S. geographies, with Europe showing the highest sequential growth in the last four quarters [20] - The construction sector drove the highest net new ACV mix for the eighth consecutive quarter, with significant contributions from public sector and manufacturing [20][21] Company Strategy and Development Direction - The company aims to partner with large and complex operations organizations, which is fueling growth at scale [4][5] - The focus is on leveraging a unique data advantage and accelerating innovation through AI, which is expected to drive higher customer engagement [16][17] - The company is targeting large, less discretionary operations budgets, representing approximately 80% of customers' revenue [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering durable growth and creating long-term shareholder value due to a defensible data advantage and accelerating AI innovation [16][17] - The company is well-positioned to help customers optimize their operations amidst ongoing tariff uncertainties [61][62] Other Important Information - The company processed approximately 20 trillion data points annually, with a growing proprietary data asset that provides unique insights [5][13] - The Connected Operations Cloud platform is expected to drive actionable AI-powered insights for customers [13] Q&A Session Summary Question: Early customer conversations and product traction - Management noted strong enthusiasm for new products launched, particularly in routing and commercial navigation, with positive momentum in trials and pilots across various industries [27][28] Question: Performance bounce back after Q1 - Management indicated that the strong performance in Q2 was partly due to larger deals that were pushed from Q1, with significant momentum from $1 million+ ARR customers [30][32] Question: AI traction and monetization - Management highlighted that AI is enhancing core product experiences and enabling new product introductions, with a focus on delivering value through data insights [35][37] Question: Large customer momentum and investments - Management discussed ongoing investments in supporting large customers, including dedicated teams for strategic accounts and enhancements in product security and integration [42][44] Question: International growth and competitive environment - Management stated that sustained investments in Europe have led to success, with a focus on understanding local market needs and building relevant features [46][47] Question: Pre-delivery installation program value - Management explained that pre-installation of hardware in trucks streamlines operations for large enterprises, providing a better customer experience and operational efficiency [83][84] Question: Smaller and mid-sized customer behavior - Management confirmed consistent performance in the mid-market segment, with strong growth in ARR from $100K+ customers [87]

Financial Data and Key Metrics Changes - Samsara ended Q2 with $1.6 billion in ARR, growing 30% year over year [3][16] - The company added $105 million of net new ARR, an increase of 19% year over year [16][19] - Q2 revenue was $391 million, growing 30% year over year, or 31% in constant currency [16][23] - Non-GAAP gross margin was 78%, up 1 percentage point year over year [22] - Non-GAAP operating margin was 15%, up 9 percentage points from one year ago [22] - Free cash flow margin was 11% in Q2, up 7 percentage points year over year [22] Business Line Data and Key Metrics Changes - Customers with $100,000+ ARR now contribute close to $1 billion of ARR, up 35% year over year, representing 59% of total ARR [3][14] - The number of $1 million+ ARR customers reached 147, with a quarterly record increase of 17 [17][19] - $1 million+ ARR customers now generate more than 20% of total ARR, approximately $350 million [3][16] Market Data and Key Metrics Changes - 15% of net new ACV came from non-U.S. geographies, with Europe showing the highest sequential growth in the last four quarters [19][20] - Construction drove the highest net new ACV mix of all industries for the eighth consecutive quarter [19][20] - Public sector strength came from wins across several state departments and large municipalities [19][20] Company Strategy and Development Direction - The strategy focuses on partnering with large enterprises to drive growth at scale [3][4] - The company aims to build the world's largest physical operations data set, leveraging AI for actionable insights [5][12] - New products launched include asset maintenance, commercial navigation, and AI multicam, addressing customer needs for safety and efficiency [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining durable growth due to a unique defensible data advantage and accelerating AI innovation [15][23] - The company is well-positioned to benefit from major initiatives like the global AI infrastructure buildout [15][23] - Management noted that customers are adapting to the tariff environment and focusing on optimizing asset utilization [60][61] Other Important Information - The company processed approximately 20 trillion data points annually on its platform [4][12] - The Connected Operations Cloud now sees 300 million digitized workflows and 90 billion miles annually [12] - Gary Steele joined the Board of Directors, bringing over 30 years of leadership experience in the technology industry [12] Q&A Session Summary Question: Early customer conversations from Samsara Beyond - Management noted enthusiasm for new products like routing and commercial navigation, with positive momentum in trials and pilots across various industries [26][27] Question: Net new ARR growth and sales execution - Management explained that the strong performance was due to the closure of larger deals that were delayed from Q1, contributing to the strong growth in Q2 [30][32] Question: AI traction and product portfolio monetization - Management highlighted that AI enhances core product experiences and that new products enabled by AI will be introduced over time [35][36] Question: Large customer momentum and investments - Management discussed investments in dedicated teams for strategic accounts and improvements in product security and integration [42][44] Question: European market success and learnings - Management emphasized sustained investment in sales and marketing resources in Europe, leading to continued success in that market [45][46] Question: AI infrastructure buildout and public sector opportunities - Management noted that customers in physical operations are seeking efficiency and safety, with public sector opportunities focusing on infrastructure savings [50][52] Question: Pre-delivery installation program value - Management explained that pre-installation of hardware streamlines operations for large enterprises, providing a better customer experience [80][81] Question: Performance of smaller and mid-sized customers - Management confirmed strong growth in the mid-market segment, indicating consistent performance across customer sizes [83][85]

Financial Performance - Q2 FY26 ARR reached $1.64 billion, demonstrating a 30% year-over-year growth as reported and in constant currency[11] - Q2 FY26 Adjusted Free Cash Flow was $44 million, resulting in an 11% Adjusted Free Cash Flow Margin[11] - The company is projecting total revenue of $1.574 - $1.578 billion for FY26, representing a 26% year-over-year growth[48] - Non-GAAP operating margin is guided at 15% for Q3 FY26, 15.5% for Q4 FY26, and 15% for the full FY26[48] - Non-GAAP EPS is expected to be $0.11 - $0.12 for Q3 FY26, $0.11 - $0.12 for Q4 FY26, and $0.45 - $0.47 for the full FY26[48] Customer Growth and Expansion - The company has 2,771 customers with over $100K+ ARR, indicating a strong large customer base[11] - Over 20% of the company's ARR comes from customers with over $1M+ ARR[11] - The company added 1,000+ core customers for the 4th time in the last 5 quarters[41] Product and Platform Expansion - The company has digitized 300 million workflows[18] - The company boasts 350 partner integrations, with the largest customers averaging 6 integrations[29] - 8% of net new ACV is attributed to new products launched within the last year[43] Data and Usage - The company's connected operations platform has accumulated 20 trillion data points, showing a 50% year-over-year growth[18] - The platform has tracked 90 billion miles traveled[18]

[Executive Summary & Q2 FY2026 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q2%20FY2026%20Highlights) Samsara achieved strong Q2 FY2026 results, with significant ARR and revenue growth, improved profitability, and robust customer acquisition [Q2 FY2026 Financial Performance](index=1&type=section&id=Q2%20FY2026%20Financial%20Performance) Samsara reported strong financial results for Q2 FY2026, with significant year-over-year growth in key metrics such as Annual Recurring Revenue (ARR) and total revenue, alongside improved profitability on a non-GAAP basis - Samsara ended Q2 FY2026 with **$1.6 billion in ARR**, marking a **30% increase year-over-year**, driven by amplified demand for its Connected Operations Platform in an AI-driven economy[2](index=2&type=chunk) Q2 FY2026 Key Financial Highlights (YoY Change) | Metric | Q2 FY2026 | Q2 FY2025 | Y/Y Change | Y/Y Change (Constant Currency) | | :--------------------------------- | :-------- | :-------- | :--------- | :----------------------------- | | Annual Recurring Revenue (ARR) | $1,640.1M | $1,264.0M | 30% | 30% | | Total revenue | $391.5M | $300.2M | 30% | 31% | | GAAP gross profit | $301.0M | $226.8M | $74.2M | - | | GAAP gross margin | 77% | 76% | 1 pt | - | | Non-GAAP gross profit | $305.7M | $230.8M | $74.9M | - | | Non-GAAP gross margin | 78% | 77% | 1 pt | - | | GAAP operating loss | $(26.6)M | $(58.2)M | $31.6M | - | | GAAP operating margin | (7%) | (19%) | 13 pts | - | | Non-GAAP operating income | $59.7M | $17.6M | $42.1M | - | | Non-GAAP operating margin | 15% | 6% | 9 pts | - | | GAAP net loss per share, basic and diluted | $(0.03) | $(0.09) | $0.06 | - | | Non-GAAP net income per share, basic and diluted | $0.12 | $0.05 | $0.07 | - | | Net cash provided by operating activities | $50.2M | $18.1M | $32.1M | - | | Net cash provided by operating activities margin | 13% | 6% | 7 pts | - | | Adjusted free cash flow | $44.2M | $13.1M | $31.1M | - | | Adjusted free cash flow margin | 11% | 4% | 7 pts | - | [Key Operational Metrics](index=1&type=section&id=Key%20Operational%20Metrics) Samsara demonstrated strong customer acquisition and expansion, particularly among larger customers, contributing significantly to its Annual Recurring Revenue (ARR) growth - The number of customers with ARR over $100,000 increased to **2,771**, up from 2,120 a year ago, indicating strong growth in larger customer segments[4](index=4&type=chunk) - Customers with ARR over $100,000 generated approximately **$1 billion of ARR**, representing **35% year-over-year growth**[4](index=4&type=chunk) - Customers with ARR over $1,000,000 contributed **more than 20% of the total ARR**[4](index=4&type=chunk) [Financial Outlook](index=2&type=section&id=Financial%20Outlook) Samsara forecasts continued revenue growth and improved non-GAAP operating margins and diluted EPS for Q3 and full fiscal year 2026 [Q3 FY2026 and FY2026 Guidance](index=2&type=section&id=Q3%20FY2026%20and%20FY2026%20Guidance) Samsara provided optimistic financial guidance for Q3 FY2026 and the full fiscal year 2026, projecting continued revenue growth and improved non-GAAP operating margins and diluted net income per share Financial Outlook for Q3 FY2026, Implied Q4 FY2026, and FY2026 | Metric | Q3 FY2026 Outlook | Implied Q4 FY2026 Outlook | FY 2026 Outlook | | :--------------------------------- | :---------------- | :------------------------ | :-------------- | | Total revenue | $398M – $400M | $418M – $420M | $1.574B – $1.578B | | Year/Year revenue growth | 24% | 21% | 26% | | Year/Year revenue growth in constant currency | 23% – 24% | 20% | 26% | | Non-GAAP operating margin | 15% | 15.5% | 15% | | Non-GAAP net income per share, diluted | $0.11 – $0.12 | $0.11 – $0.12 | $0.45 – $0.47 | - Constant currency impact to revenue guidance is expected to be a **$1 million positive impact for Q3 FY26**, a **$3 million positive impact for Q4 FY26**, and a **$0 million positive impact for FY26**[6](index=6&type=chunk) [Company Overview](index=2&type=section&id=Company%20Overview) Samsara's Connected Operations Platform improves safety, efficiency, and sustainability by connecting operations across diverse industries [About Samsara](index=2&type=section&id=About%20Samsara) Samsara is a pioneer of the Connected Operations Platform, an open platform designed to connect people, devices, and systems in complex operations to generate actionable insights and improve safety, efficiency, and sustainability across various industries - Samsara's Connected Operations Platform connects people, devices, and systems to provide actionable insights and improve operations[7](index=7&type=chunk) - The company serves tens of thousands of customers across North America and Europe in industries such as transportation, construction, logistics, manufacturing, and utilities[7](index=7&type=chunk) - Samsara's mission is to increase the safety, efficiency, and sustainability of the operations that power the global economy[7](index=7&type=chunk) [Important Disclosures](index=2&type=section&id=Important%20Disclosures) This section details forward-looking statements, non-GAAP financial measures, and definitions for key operating metrics and financial terms [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section outlines the nature of forward-looking statements within the press release, emphasizing that they are subject to inherent risks and uncertainties that could cause actual results to differ materially from expectations, and the company does not undertake to update them - Forward-looking statements relate to future operating results, financial performance, market opportunity, industry trends, macroeconomic conditions, customer adoption, product development, and competitive position[8](index=8&type=chunk) - These statements are subject to risks and uncertainties, including customer retention, ability to attract new customers, future financial performance, global economic and geopolitical events, supply chain challenges, foreign currency fluctuations, and technological changes[11](index=11&type=chunk) - The company does not undertake any obligation to publicly update or revise any forward-looking statement, except as required by law[12](index=12&type=chunk) [Use of Non-GAAP Financial Measures](index=3&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) Samsara utilizes non-GAAP financial measures to provide investors with additional insights into its operating results, aligning with management's perspective, while also acknowledging the inherent limitations of these measures compared to GAAP - Non-GAAP financial measures are presented to assist investors in evaluating Samsara's operating results through management's eyes and provide an additional tool for business evaluation[15](index=15&type=chunk) - These measures have limitations as analytical tools and should not be considered in isolation or as substitutes for GAAP financial information, as other companies may calculate them differently[14](index=14&type=chunk) - Expenses excluded from non-GAAP performance measures include stock-based compensation expense-related charges (amortization of deferred stock-based compensation and employer taxes on employee equity transactions), lease modification, impairment, and related charges, and legal settlements[16](index=16&type=chunk)[17](index=17&type=chunk) [Operating Metrics and Non-GAAP Financial Measures Definitions](index=4&type=section&id=Operating%20Metrics%20and%20Non-GAAP%20Financial%20Measures%20Definitions) This section provides clear definitions for key operating metrics and non-GAAP financial measures used by Samsara, including ARR, constant currency adjustments, customer criteria, and various non-GAAP profit and cash flow metrics - Annual Recurring Revenue (ARR) is defined as the annualized value of subscription contracts that have commenced revenue recognition as of the measurement date[18](index=18&type=chunk) - Constant currency methodology assesses underlying business performance by excluding foreign currency rate fluctuations, converting current period results using comparative period exchange rates[19](index=19&type=chunk) - A 'customer' is an entity or affiliated group with ARR greater than **$1,000** at the end of a reporting period[20](index=20&type=chunk) - Non-GAAP Gross Profit, Operating Income (Loss), and Net Income (Loss) exclude stock-based compensation expense-related charges, lease modification/impairment charges, and legal settlements to provide a clearer view of ongoing operational performance[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) - Free Cash Flow is net cash from operating activities minus purchases of property and equipment, while Adjusted Free Cash Flow further excludes non-recurring capital expenditures and legal settlements, both used to evaluate liquidity and funding ability[24](index=24&type=chunk)[25](index=25&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Samsara's condensed consolidated financial statements, highlighting growth and improved operational efficiency [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Samsara's balance sheet as of August 2, 2025, shows an increase in total assets and stockholders' equity compared to February 1, 2025, reflecting growth in cash, investments, and deferred revenue Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | As of August 2, 2025 | As of February 1, 2025 | | :--------------------------------- | :------------------- | :--------------------- | | Total current assets | $1,185,950 | $1,145,154 | | Total assets | $2,207,099 | $2,024,302 | | Total current liabilities | $791,586 | $761,346 | | Total liabilities | $992,326 | $955,106 | | Total stockholders' equity | $1,214,773 | $1,069,196 | - Cash and cash equivalents increased from **$227,576 thousand to $258,472 thousand**, and long-term investments grew from **$282,652 thousand to $386,266 thousand**[28](index=28&type=chunk) - Deferred revenue (current and non-current) increased from **$685,770 thousand to $740,512 thousand**, indicating strong future revenue recognition[28](index=28&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Samsara's income statement for Q2 FY2026 shows substantial revenue growth and improved operating loss and net loss compared to the prior year, reflecting increased gross profit and controlled operating expenses relative to revenue growth Condensed Consolidated Statements of Operations Highlights (in thousands) | Metric | Three Months Ended August 2, 2025 | Three Months Ended August 3, 2024 | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Revenue | $391,480 | $300,202 | $758,364 | $580,928 | | Gross profit | $300,979 | $226,837 | $584,694 | $438,938 | | Loss from operations | $(26,619) | $(58,194) | $(59,874) | $(124,191) | | Net loss | $(16,800) | $(49,610) | $(38,921) | $(105,899) | | Net loss per share, basic and diluted | $(0.03) | $(0.09) | $(0.07) | $(0.19) | - Revenue grew **30% year-over-year** for the three months ended August 2, 2025, reaching **$391,480 thousand**[31](index=31&type=chunk) - Loss from operations significantly narrowed from **$(58,194) thousand in Q2 FY2025 to $(26,619) thousand in Q2 FY2026**[31](index=31&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Samsara's cash flow statement indicates a substantial increase in net cash provided by operating activities for both the three and six months ended August 2, 2025, demonstrating improved operational efficiency and cash generation Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | Three Months Ended August 2, 2025 | Three Months Ended August 3, 2024 | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Net cash provided by operating activities | $50,161 | $18,117 | $102,773 | $41,787 | | Net cash used in investing activities | $(68,156) | $(36,289) | $(86,445) | $(33,238) | | Net cash provided by financing activities | $18,399 | $15,667 | $18,043 | $15,979 | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $623 | $(2,965) | $35,715 | $23,965 | - Net cash provided by operating activities more than doubled year-over-year for the three months ended August 2, 2025, reaching **$50,161 thousand**[34](index=34&type=chunk) - Cash, cash equivalents, and restricted cash at the end of the period increased to **$281,509 thousand** from $178,703 thousand a year prior[34](index=34&type=chunk) [Reconciliation Between GAAP and Non-GAAP Financial Measures](index=9&type=section&id=Reconciliation%20Between%20GAAP%20and%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP and non-GAAP financial measures for key metrics, detailing the impact of various adjustments [Revenue and Revenue Growth Reconciliation](index=9&type=section&id=Revenue%20and%20Revenue%20Growth%20Reconciliation) Samsara's revenue and revenue growth reconciliation highlights the impact of constant currency adjustments, showing a slightly higher growth rate when foreign exchange fluctuations are excluded Revenue and Revenue Growth Reconciliation (in thousands) | Metric | Three Months Ended August 2, 2025 | Three Months Ended August 3, 2024 | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | GAAP revenue | $391,480 | $300,202 | $758,364 | $580,928 | | Constant currency adjustment | $316 | — | $3,882 | — | | Revenue adjusted for constant currency | $391,796 | $300,202 | $762,246 | $580,928 | | GAAP revenue growth | 30% | 37% | 31% | 37% | | Revenue growth in constant currency | 31% | 37% | 31% | 37% | - For Q2 FY2026, GAAP revenue growth was **30%**, while revenue growth in constant currency was **31%**, indicating a minor positive impact from foreign currency rates[37](index=37&type=chunk) [Gross Profit and Gross Margin Reconciliation](index=9&type=section&id=Gross%20Profit%20and%20Gross%20Margin%20Reconciliation) The reconciliation shows that non-GAAP gross profit and margin are consistently higher than GAAP figures due to the exclusion of stock-based compensation expense-related charges, reflecting the company's core operational profitability Gross Profit and Gross Margin Reconciliation (in thousands) | Metric | Three Months Ended August 2, 2025 | Three Months Ended August 3, 2024 | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | GAAP gross profit | $300,979 | $226,837 | $584,694 | $438,938 | | Stock-based compensation expense-related charges | $4,713 | $3,939 | $9,074 | $7,705 | | Non-GAAP gross profit | $305,692 | $230,776 | $593,768 | $446,643 | | GAAP gross margin | 77% | 76% | 77% | 76% | | Non-GAAP gross margin | 78% | 77% | 78% | 77% | - Non-GAAP gross margin for Q2 FY2026 was **78%**, one percentage point higher than the GAAP gross margin of **77%**[37](index=37&type=chunk) [Operating Income (Loss) and Operating Margin Reconciliation](index=9&type=section&id=Operating%20Income%20(Loss)%20and%20Operating%20Margin%20Reconciliation) The reconciliation demonstrates a significant improvement in operating profitability on a non-GAAP basis, moving from a substantial GAAP operating loss to a positive non-GAAP operating income, primarily by excluding stock-based compensation Operating Income (Loss) and Operating Margin Reconciliation (in thousands) | Metric | Three Months Ended August 2, 2025 | Three Months Ended August 3, 2024 | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | GAAP loss from operations | $(26,619) | $(58,194) | $(59,874) | $(124,191) | | Stock-based compensation expense-related charges | $86,317 | $75,746 | $170,643 | $147,902 | | Non-GAAP operating income | $59,698 | $17,552 | $110,769 | $23,711 | | GAAP operating margin | (7%) | (19%) | (8%) | (21%) | | Non-GAAP operating margin | 15% | 6% | 15% | 4% | - Non-GAAP operating income for Q2 FY2026 was **$59,698 thousand**, a substantial increase from $17,552 thousand in Q2 FY2025, resulting in a non-GAAP operating margin of **15%** (up 9 percentage points YoY)[37](index=37&type=chunk) [Net Income (Loss) and Net Income (Loss) per Share Reconciliation](index=9&type=section&id=Net%20Income%20(Loss)%20and%20Net%20Income%20(Loss)%20per%20Share%20Reconciliation) The reconciliation highlights the significant impact of non-GAAP adjustments, particularly stock-based compensation, in transforming a GAAP net loss into a positive non-GAAP net income and diluted EPS, reflecting underlying operational profitability Net Income (Loss) Reconciliation (in thousands) | Metric | Three Months Ended August 2, 2025 | Three Months Ended August 3, 2024 | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | GAAP net loss | $(16,800) | $(49,610) | $(38,921) | $(105,899) | | Stock-based compensation expense-related charges | $86,317 | $75,746 | $170,643 | $147,902 | | Non-GAAP net income | $69,517 | $26,136 | $131,722 | $42,003 | Net Income (Loss) per Share Reconciliation | Metric | Three Months Ended August 2, 2025 | Three Months Ended August 3, 2024 | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | GAAP net loss per share, diluted | $(0.03) | $(0.09) | $(0.07) | $(0.19) | | Total impact on net loss per share, diluted, from non-GAAP adjustments | $0.15 | $0.14 | $0.30 | $0.26 | | Non-GAAP net income per share, diluted | $0.12 | $0.05 | $0.23 | $0.07 | - Non-GAAP net income per share, diluted, increased to **$0.12 in Q2 FY2026** from $0.05 in Q2 FY2025[40](index=40&type=chunk) [Free Cash Flow and Adjusted Free Cash Flow Reconciliation](index=11&type=section&id=Free%20Cash%20Flow%20and%20Adjusted%20Free%20Cash%20Flow%20Reconciliation) Samsara's free cash flow and adjusted free cash flow significantly improved year-over-year, demonstrating enhanced liquidity and ability to fund future operations and strategic initiatives Free Cash Flow and Adjusted Free Cash Flow Reconciliation (in thousands) | Metric | Three Months Ended August 2, 2025 | Three Months Ended August 3, 2024 | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Net cash provided by operating activities | $50,161 | $18,117 | $102,773 | $41,787 | | Purchases of property and equipment | $(5,969) | $(4,992) | $(12,889) | $(10,054) | | Free cash flow | $44,192 | $13,125 | $89,884 | $31,733 | | Adjusted free cash flow | $44,192 | $13,125 | $89,884 | $31,733 | | Net cash provided by operating activities margin | 13% | 6% | 14% | 7% | | Free cash flow margin | 11% | 4% | 12% | 5% | | Adjusted free cash flow margin | 11% | 4% | 12% | 5% | - Free cash flow for Q2 FY2026 was **$44,192 thousand**, a substantial increase from $13,125 thousand in Q2 FY2025, with free cash flow margin improving from **4% to 11%**[43](index=43&type=chunk) - Stock-based compensation expense-related charges totaled **$86,317 thousand** for the three months ended August 2, 2025, including amortization of capitalized software and employer taxes on employee equity transactions[43](index=43&type=chunk)

Key Takeaways Samsara projects Q2 EPS of $0.06-$0.07, with consensus at $0.07, up 40% year over year.Revenues are expected at $371M-$373M, in line with consensus, up about 24% from last year.AI-driven adoption, OEM deals, and ARR expansion are likely to support Samsara's performance.Samsara Inc. (IOT) is scheduled to report second-quarter fiscal 2026 results on Sept. 4.For the second quarter of fiscal 2026, management expects non-GAAP earnings per share between 6 cents and 7 cents. The consensus mark is peg ...

Core Insights - The article emphasizes the transformative potential of AGI (Artificial General Intelligence) over the next 20 years, likening its impact to that of the internet on society [2] - It discusses the current state of AI development, indicating that many companies are still in the preparatory phase, focusing on data readiness and organizational transformation [3][4] Group 1: AI Development and Company Insights - A subset of startups, often founded by former Palantir employees, is achieving profitability without heavy financing, highlighting a different approach to AI development [3] - Distyl.ai exemplifies the complexity of AI integration into business processes, requiring a systemic overhaul rather than mere tool replacement [4][5] - The article identifies three key dimensions for data preparation: Data Infrastructure, Knowledge Distillation, and Simulation, which are essential for effective AI deployment [5][6] Group 2: Market Performance and Trends - AGIX has shown strong performance, with a weekly increase of 1.99%, outperforming major indices like S&P 500 and QQQ [11][15] - The technology sector experienced net selling, with a notable focus on industrial and communication services, while AI-related stocks like Snowflake and MongoDB saw significant gains [12][14] - The article notes that the current investment environment is favoring companies that can effectively leverage AI capabilities, indicating a shift in market dynamics [15][16] Group 3: AI Infrastructure and Future Directions - Real-time data processing is becoming crucial, with companies like Confluent enhancing their offerings to support AI agents in monitoring and decision-making [7][8] - The integration of AI into enterprise systems requires a robust data governance framework, as highlighted by the collaboration between Snowflake and Confluent [8][9] - The article stresses the importance of decision transparency and traceability in AI applications, which are critical for enterprise-level adoption [9][10]

Company Performance - Samsara Inc. ended the recent trading session at $34.40, showing a -1.12% change from the previous day's closing price, which is less than the S&P 500's daily loss of 0.43% [1] - Over the past month, shares of Samsara Inc. have decreased by 10.77%, while the Computer and Technology sector gained 2.56% and the S&P 500 gained 2.65% [1] Upcoming Earnings - Samsara Inc. is set to disclose its earnings on September 4, 2025, with a forecasted EPS of $0.07, indicating a 40% increase from the same quarter last year [2] - The consensus estimate projects revenue of $372.32 million, reflecting a 24.02% rise from the equivalent quarter last year [2] Fiscal Year Projections - For the entire fiscal year, the Zacks Consensus Estimates project earnings of $0.41 per share and revenue of $1.55 billion, representing increases of +57.69% and +24.23% from the prior year, respectively [3] Analyst Estimates and Stock Performance - Recent changes to analyst estimates for Samsara Inc. are important for investors, as positive revisions indicate optimism about the business outlook [3] - Empirical research shows that revisions in estimates correlate with impending stock price performance [4] Zacks Rank and Valuation - Samsara Inc. currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining steady over the past month [5] - The company has a Forward P/E ratio of 85.11, which is a premium compared to the average Forward P/E of 30.83 for its industry [5] Industry Overview - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 71, placing it in the top 29% of all 250+ industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]