Financial Performance - In 2025, revenues declined by 16% to $17.4 million, primarily due to a $2.3 million decrease in Family Safety product line revenues and a $1.0 million decline in ViewSpot revenues [147]. - Gross profit for 2025 was $12.9 million, representing 74.1% of revenues, compared to 70.2% in 2024 [162]. - The net loss attributable to common stockholders for 2025 was $30.1 million, equating to a loss of $1.46 per share [148]. - The company reported a net loss of $29.3 million for 2025, which included a goodwill impairment charge of $11.1 million, while the previous year saw a net loss of $48.7 million with a goodwill impairment charge of $24 million [175][176]. Operating Expenses and Cost Management - Operating expenses decreased by $21.9 million in 2025, resulting in a 20% reduction, excluding goodwill impairment and other adjustments [148]. - Selling and marketing expenses decreased by $2.9 million to $6.0 million in 2025, primarily due to reduced personnel costs [163]. - Research and development expenses fell by approximately $3.4 million to $10.7 million in 2025, driven by workforce reduction efforts [164]. - Strategic cost reductions announced in October 2025 are expected to yield approximately $7.2 million in savings for 2026 [149]. Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2025, were approximately $1.5 million, with various equity and debt offerings contributing to liquidity [171]. - Net cash used in operating activities was $7.2 million for the year ended December 31, 2025, compared to $14.3 million in 2024, indicating a 49% improvement in cash flow management [175][176]. - Net cash provided by investing activities was $1.2 million in 2025, primarily from the sale of ViewSpot, compared to a net cash outflow of $0.2 million in 2024 [177]. - Financing activities generated $4.7 million in 2025, with significant contributions from various offerings, while 2024 saw $9.8 million from similar financing activities [178][179]. Business Operations and Strategy - The company divested its ViewSpot product for total consideration of $1.3 million on June 3, 2025 [167]. - The company executed a lease renewal for its corporate headquarters, reducing leased space from approximately 35,621 square feet to 9,571 square feet starting May 1, 2026 [181]. - The company plans to enhance operational efficiencies and reduce costs through a workforce reorganization, aiming to align its cost structure with long-term business goals [199]. - The company has raised substantial doubt about its ability to continue as a going concern within one year from the date of the financial statements due to recurring operating losses and negative cash flows [198]. Revenue Recognition - The company transfers software licenses on a royalty-free, non-exclusive, non-transferable basis during the agreement term, recognizing revenue upon customer acceptance [202]. - Usage-based revenue is generated from active subscribers' access to software licenses and cloud services, recognized monthly upon completion of performance obligations [202]. - Consulting services revenue is recognized upon delivery and acceptance of software enhancements, with maintenance and support services recognized ratably over the contract period [203]. - The company divested its ViewSpot product line on June 3, 2025, impacting revenue streams from related consulting services [205]. Stock-Based Compensation - Stock-based compensation is recognized as an expense over the vesting period using the straight-line method, in accordance with FASB ASC Topic No. 718 [206]. Financial Risks - The company is dependent on subscriber growth and revenue generation to meet its obligations and fund working capital requirements [199]. - The company believes it can raise additional funds through public or private equity offerings or debt financings, although there is no assurance of timely or favorable terms [199]. - The company has not recorded any liabilities for indemnities, commitments, and guarantees in its consolidated balance sheets, which may expose it to future payment obligations [180].

Core Insights - Smith Micro Software, Inc. (SMSI) is targeting non-GAAP profitability by Q2 2026, driven by strong momentum in its SafePath OS product line [2] Management View - William Smith, Co-Founder, Chairman of the Board, President & CEO, highlighted that significant progress was made in 2025, particularly in strengthening the product lineup with a strategic focus on mobile phones [2]

Core Insights - Smith Micro Software, Inc. reported a quarterly loss of $0.08 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.07, but an improvement from a loss of $0.11 per share a year ago [1] - The company posted revenues of $3.97 million for the quarter, missing the Zacks Consensus Estimate by 7.58% and down from $4.97 million year-over-year [2] - The stock has underperformed the market, losing about 3.7% since the beginning of the year compared to the S&P 500's decline of 0.4% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.04 on revenues of $4.3 million, and for the current fiscal year, it is -$0.05 on revenues of $20.5 million [7] - The estimate revisions trend for Smith Micro Software was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Computer - Software industry, to which Smith Micro Software belongs, is currently in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported revenue of $4 million, a decrease of 20% compared to $5 million in Q4 2024, and a decrease of 7% from Q3 2025 [14][15] - Fiscal 2025 revenue totaled $17.4 million, down from $20.6 million in 2024, representing a 16% decline [15] - Gross profit for Q4 2025 was $3 million, down from $3.8 million in Q4 2024, with a gross margin of 76.4% compared to 75.6% in the prior year [17] - GAAP net loss for Q4 2025 was $4.7 million, or $0.20 loss per share, compared to a loss of $4.4 million, or $0.25 loss per share in Q4 2024 [21][22] Business Line Data and Key Metrics Changes - Family safety revenue for Q4 2025 was $3.2 million, a decrease of 16% year-over-year and 11% sequentially [16] - CommSuite revenue was $800,000 in Q4 2025, down $300,000 from Q4 2024, but flat compared to Q3 2025 [16] Market Data and Key Metrics Changes - The company is focusing on expanding its SafePath OS solutions for kids and seniors, which is expected to double the total addressable market [4] - The partnership with AT&T has been strengthened, contributing positively to the marketing of Secure Family solutions [26] Company Strategy and Development Direction - The company is committed to a strategic redesign to maximize resources and talent, focusing on SafePath OS for family safety solutions [26] - Plans to bring two new carrier customers to market by mid-2026, driven by the SafePath OS product offerings [5][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a strong sales pipeline and the potential for reduced losses in Q1 2026 and Non-GAAP profit in Q2 2026 [5][6] - The transition in leadership is seen as timely, with confidence in the new CEO's ability to lead the company towards profitability [8][10] Other Important Information - The company has implemented strategic cost reductions, achieving approximately $1.8 million in quarterly savings [13] - The company received approximately $2.7 million in cash from funding transactions during Q4 2025 [11] Q&A Session Summary Question: Thoughts on annual revenues and revenue opportunities with major mobile carriers - Management guided investors to consider the number of family subscribers available at carriers and potential revenue per unit [34] Question: Competition and family safety needs - Management highlighted the advantages of SafePath OS and the challenges faced by competitors who attempt to develop in-house solutions [36][37] Question: Demand from new carriers and product awareness - Management confirmed plans to launch two new carrier customers mid-year, driven by SafePath OS, and noted that the onboarding process is simpler with phones [39][40]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported revenue of $4 million, a decrease of 20% compared to $5 million in Q4 2024, and a decrease of $300,000 or 7% from Q3 2025 [14][15] - Fiscal 2025 revenue was $17.4 million, down from $20.6 million in 2024, representing a decrease of $3.2 million or 16% [15] - Gross profit for Q4 2025 was $3 million, down from $3.8 million in Q4 2024, with a gross margin of 76.4% compared to 75.6% in the prior year [17] - GAAP net loss for Q4 2025 was $4.7 million, or $0.20 loss per share, compared to a loss of $4.4 million, or $0.25 loss per share in Q4 2024 [21][22] Business Line Data and Key Metrics Changes - Family safety revenue for Q4 2025 was $3.2 million, a decrease of $600,000 or 16% compared to Q4 2024, and down $400,000 or 11% from Q3 2025 [16] - CommSuite revenue was $800,000 in Q4 2025, down approximately $300,000 from Q4 2024, but flat compared to Q3 2025 [16] Market Data and Key Metrics Changes - The company is focusing on expanding its SafePath OS solutions for kids and seniors, which is expected to double the total addressable market [4] - The partnership with AT&T has been strengthened, contributing positively to the marketing of Secure Family solutions [26] Company Strategy and Development Direction - The company is redirecting its product strategy towards SafePath OS, aiming to optimize spending while investing in strategic areas for innovation [5] - The company plans to bring two new carrier customers to market by mid-2026, driven by SafePath OS product offerings [5][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting a strong sales pipeline and the potential for reduced losses in Q1 2026, with expectations for non-GAAP profit in Q2 and beyond [5][7] - The transition in leadership is seen as timely, with confidence in the new CEO's ability to lead the company towards profitability and growth [8][10] Other Important Information - The company has implemented strategic cost reductions, achieving approximately $1.8 million in quarterly savings [13] - The company received approximately $2.7 million in cash from a registered direct offering and private placement during Q4 2025 [11] Q&A Session Summary Question: Thoughts on annual revenues and market opportunities - Management guided investors to consider the number of family subscribers available at carriers and potential revenue per unit [34] Question: Competition and market needs - Management emphasized the unique advantages of SafePath OS and the challenges faced by competitors who attempt to develop in-house solutions [36][37] Question: Demand from new carriers and product awareness - Management confirmed plans to launch two new carrier customers mid-year, driven by SafePath OS, and noted that the onboarding process is simpler compared to traditional applications [39]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported revenue of $4 million, a decrease of 20% compared to $5 million in Q4 2024, and a 7% decrease from Q3 2025 [12][14] - Fiscal 2025 revenue totaled $17.4 million, down from $20.6 million in 2024, representing a 16% decline [14] - Gross profit for Q4 2025 was $3 million, down from $3.8 million in Q4 2024, with a gross margin of 76.4% compared to 75.6% in the prior year [16] - GAAP net loss for Q4 2025 was $4.7 million, or $0.20 loss per share, compared to a loss of $4.4 million, or $0.25 loss per share in Q4 2024 [20] Business Line Data and Key Metrics Changes - Family safety revenue in Q4 2025 was $3.2 million, a decrease of 16% year-over-year and 11% sequentially [15] - CommSuite revenue was $800,000 in Q4 2025, down $300,000 from Q4 2024, but flat compared to Q3 2025 [15] Market Data and Key Metrics Changes - The company is focusing on expanding its SafePath OS solutions for kids and seniors, which is expected to double the total addressable market [4] - AT&T has expanded its addressable market for Secure Family, enhancing its marketing message and overall security offering [25] Company Strategy and Development Direction - The company is redirecting its product strategy towards SafePath OS, aiming to strengthen its product lineup and optimize costs [4][5] - Plans to bring two new carrier customers to market by mid-2026, driven by SafePath OS offerings [5][38] - The company is optimistic about emerging strategic opportunities, particularly in the family safety market [26][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's return to profitability and growth, highlighting a strong sales pipeline for 2026 [5][6] - The transition in leadership is seen as timely, with new CEO Tim Hofmeyer expected to lead the company through its turnaround [7][10] Other Important Information - The company has implemented strategic cost reductions, achieving approximately $1.8 million in quarterly savings [12] - The company received $2.7 million in cash from a direct offering and private placement during Q4 2025 [10] Q&A Session Summary Question: Thoughts on annual revenues and prospective revenue opportunities - Management suggested considering the number of family subscribers available at carriers and potential revenue per unit as a way to model future revenues [32][33] Question: Competition and family safety needs - Management acknowledged the competitive landscape and emphasized the unique advantages of SafePath OS, particularly in preventing app deletion by children [34][35] Question: Demand from new carriers and product awareness - Management noted that they are seeing increased interest from new carriers and highlighted the ease of onboarding with the SafePath OS [37][38]

Financial Performance - Smith Micro reported Q4 2025 revenue of $4.0 million, a decrease of 20% from $5.0 million in Q4 2024[4] - For the fiscal year 2025, Smith Micro reported total revenue of $17.4 million, down from $20.6 million in 2024[8] - Revenues for Q4 2025 were $3,974,000, a decrease of 20% compared to $4,969,000 in Q4 2024[18] - Gross profit for Q4 2025 was $3.0 million, with a gross profit margin of 76.4%, compared to $3.8 million and 75.6% in Q4 2024[4] - Fiscal 2025 gross profit was $12.9 million, with a gross profit margin of 74.1%, compared to $14.4 million and 70.2% in 2024[9] - Gross profit for the year ended December 31, 2025, was $12,858,000, down from $14,429,000 in 2024, representing a decline of 11%[18] - The net loss attributable to common stockholders for 2025 was $30,096,000, which is a decrease from the net loss of $48,697,000 in 2024, reflecting an improvement of approximately 38%[23][25] - GAAP net loss for Q4 2025 was $4.7 million, or $0.20 loss per share, compared to a loss of $4.4 million, or $0.25 loss per share in Q4 2024[5] - GAAP net loss for the fiscal year 2025 was $30.1 million, or $1.46 loss per share, an improvement from a loss of $48.7 million, or $3.94 loss per share in 2024[10] - Basic and diluted net loss per share for Q4 2025 was $(0.20), compared to $(0.25) in Q4 2024[20] - The loss per share for 2025 was $1.46, compared to a loss of $3.94 per share in 2024, showing a significant reduction of approximately 63%[23][25] Operating Expenses - Total operating expenses for the year 2025 were $41,869,000, a decrease of 34% from $63,819,000 in 2024[18] - Research and development expenses in 2025 were $10,719,000, down from $14,085,000 in 2024, a decrease of about 24%[23][25] - Selling and marketing expenses decreased to $5,978,000 in 2025 from $8,877,000 in 2024, a reduction of approximately 33%[23][25] - General and administrative expenses were $10,009,000 in 2025, down from $10,583,000 in 2024, indicating a decrease of about 5%[23][25] Cash and Funding - Total cash and cash equivalents as of December 31, 2025, were $1.5 million, down from $2.8 million in 2024[11] - Cash and cash equivalents at the end of 2025 were $1,494,000, down from $2,808,000 at the end of 2024[19] - An additional $4 million in funding has been committed by the CEO and his wife to support the company's path to profitability[3] - The company raised $3,352,000 from the issuance of common stock and warrants in 2025, compared to $9,839,000 in 2024[19] Goodwill and Impairment - The company reported a goodwill impairment of $11,052,000 for 2025, compared to $23,989,000 in 2024, reflecting a reduction of 54%[19] - Goodwill impairment for 2025 was $11,052,000, compared to $23,989,000 in 2024, reflecting a decrease of approximately 54%[23][25] Corporate Strategy - The company plans to strengthen its product lineup with a focus on SafePath OS™ solutions for kids and seniors, aiming to expand its role with Tier 1 customers[2] - The company recognized a gain on the sale of ViewSpot of $1,287,000 in 2025, which was offset by other costs associated with corporate actions[24] - Other costs in 2025 included approximately $637,000 related to personnel severance and reorganization activities[24] Cash Flow - Net cash used in operating activities for 2025 was $7,193,000, an improvement from $14,295,000 in 2024[19] - Operating loss for the year 2025 was $29,011,000, compared to a loss of $49,390,000 in 2024, showing an improvement of 41%[18]

Table of Contents As filed with the Securities and Exchange Commission on December 4, 2025 Registration Statement No. 333- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Smith Micro Software, Inc. (Exact name of registrant as specified in its charter) | Delaware | 7372 | 33-0029027 | | --- | --- | --- | | (State or Other Jurisdiction of | (Primary Standard Industrial | (I.R.S. Employer | | Incorporation or Organization ...

Financial Data and Key Metrics Changes - For Q3 2025, the company reported revenue of $4.3 million, a decrease of approximately 6% compared to $4.6 million in Q3 2024, and a decrease of $73,000 or 2% from Q2 2025 [12] - Year-to-date revenues through September 30, 2025, were $13.4 million, down approximately 14% from $15.6 million in the same period last year [12] - GAAP net loss attributable to common stockholders for Q3 2025 was $5.2 million, or $0.25 loss per share, compared to a loss of $6.4 million, or $0.54 loss per share in Q3 2024 [19] - Non-GAAP net loss for Q3 2025 was $2.6 million, or $0.12 loss per share, compared to a loss of approximately $3.6 million, or $0.30 loss per share in Q3 2024 [19] Business Line Data and Key Metrics Changes - Family safety revenue for Q3 2025 was $3.5 million, a decrease of approximately $410,000 or 10% compared to Q3 2024 [13] - CommSuite revenue was $792,000, an increase of approximately $148,000 compared to Q3 2024 [13] - The company sold its ViewSpot product for $1.3 million in June 2025, resulting in minimal revenue from this product in Q3 2025 [13] Market Data and Key Metrics Changes - The company is witnessing a shift in the carrier market with a renewed focus on family subscribers, which represent a high-value opportunity due to lower churn rates and higher lifetime value [8][9] - The expanded SafePath platform is tailored to family needs, aligning with carriers' core business strategies [9] Company Strategy and Development Direction - The company implemented strategic changes to realign its cost structure, aiming for approximately $7.2 million in annualized cost savings [5][6] - The company expects to be close to breakeven and profitable by mid-2026 [6] - The SafePath platform is being enhanced to support families, with ongoing trials and engagements with mobile operators worldwide [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering a new phase of growth and profitability, supported by a strong pipeline and ongoing customer trials [7] - The company is focused on continuous improvement and operational efficiency while investing in strategic areas [6] - Management highlighted the importance of the family focus in the carrier market as a significant growth opportunity [25][26] Other Important Information - The company completed a follow-on offering of approximately $1.5 million and a private placement expected to raise about $2.7 million [10][11] - GAAP operating expenses for Q3 2025 were $7.7 million, a decrease of $2.1 million or 22% compared to Q3 2024 [16] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without any inquiries from participants [27]

Revenue Performance - Revenues for Q3 2025 decreased by 6% to $4.3 million compared to Q3 2024, primarily due to a $0.4 million decline in the Family Safety product line [121]. - Revenues decreased to $13.4 million for the nine months ended September 30, 2025, down 14% from $15.6 million in 2024, primarily due to declines in the Family Safety product line [139]. Gross Profit and Cost of Revenues - Gross profit for Q3 2025 was $3.2 million, representing 73.9% of revenues, a slight increase from 71.6% in Q3 2024 [131]. - Cost of revenues decreased to $1.1 million in Q3 2025 from $1.3 million in Q3 2024, reflecting cost reduction efforts [130]. - Cost of revenues reduced to $3.6 million in 2025 from $4.9 million in 2024, a decrease of $1.3 million attributed to lower revenue and cost reduction efforts [140]. - Gross profit was $9.8 million, representing 73.4% of revenues for the nine months ended September 30, 2025, compared to $10.7 million or 68.5% in 2024 [141]. Operating Expenses - Operating expenses decreased by approximately $2.1 million in Q3 2025 compared to Q3 2024, driven by reductions in sales and marketing and research and development expenses [121]. - Selling and marketing expenses were reduced to $1.5 million in Q3 2025 from $2.1 million in Q3 2024, due to personnel cost reductions [132]. - Research and development expenses decreased to $2.6 million in Q3 2025 from $3.6 million in Q3 2024, also attributed to cost reduction initiatives [133]. - Selling and marketing expenses decreased to $4.8 million in 2025 from $7.2 million in 2024, a reduction of approximately $2.4 million due to decreased personnel costs [142]. - Research and development expenses were $8.2 million for the nine months ended September 30, 2025, down from $11.3 million in 2024, a decrease of approximately $3.1 million [144]. - General and administrative expenses decreased to $7.7 million in 2025 from $8.2 million in 2024, a reduction of approximately $0.6 million [145]. Net Loss and Cash Flow - The net loss attributable to common stockholders for Q3 2025 was $5.2 million, resulting in a net loss of $0.25 per share [121]. - A goodwill impairment charge of $11.1 million was recorded for the nine months ended September 30, 2025, compared to $24.0 million in 2024 [148]. - Net cash used in operating activities was $5.0 million for the nine months ended September 30, 2025, compared to $9.4 million in 2024 [158][159]. - The company generated net cash provided by investing activities of $1.2 million in 2025, primarily from the sale of ViewSpot [160]. - Net cash provided by financing activities was $2.4 million for the nine months ended September 30, 2025, compared to $3.6 million in 2024 [161][162]. Strategic Initiatives - The company expects strategic cost reductions to result in savings of approximately $1.8 million per quarter, totaling about $7.2 million for 2026 [124]. - The company completed the development of SafePath 8 and plans to launch new features, aiming to grow Family Safety revenues with Tier 1 carriers [122]. - The sale of the ViewSpot product generated total consideration of $1.3 million, with $1.0 million received at closing [121].