Core Viewpoint - Symbotic (SYM) has experienced a significant stock price increase of 134.5% year-to-date, outperforming its industry peers due to the artificial intelligence trend and strong technical indicators [1][6]. Group 1: Stock Performance - SYM shares have outperformed industry peers, with Coherent Corp. gaining 21.9% and MediaAlpha declining 6.8% in the same period [1]. - Technical indicators show that SYM is trading above its 50-day moving average, indicating strong upward momentum and price stability [3]. Group 2: Financial Metrics - Symbotic has a backlog of $22.4 billion, with expectations to recognize nearly 11% of its remaining performance obligations as revenues in the next 12 months and 56% in the following 13-60 months [8]. - Revenues increased by 26% year-over-year, with expectations for fourth-quarter revenues in the range of $590-$610 million and adjusted EBITDA between $45-$49 million [9]. Group 3: Operational Efficiency - Faster deployment times suggest improved installation processes, leading to decreased labor hours per project and fewer rework incidents [10]. Group 4: Valuation and Risks - SYM's current valuation is considered stretched, with a forward price-to-sales ratio of 12.09X, higher than its industry peers [11]. - The company's reliance on Walmart as its largest customer poses customer concentration risks, despite Walmart's investment in Symbotic [13].

Core Viewpoint - Symbotic's transition to next-generation storage technology may lead to short-term revenue fluctuations despite strong earnings performance [1][5] Financial Performance - Symbotic reported revenue of $592.2 million, exceeding expectations and reflecting a year-over-year increase of 25.9% [3] - The company posted a net loss per share of $0.05, which was $0.04 worse than expectations [3] Future Guidance - For the upcoming fiscal fourth quarter, Symbotic guided revenue between $590 million and $610 million, indicating minimal sequential growth [4] - Management attributed potential revenue hiccups to the launch of a new storage technology, which is expected to temporarily impact revenue recognition [5] Market Reaction - Shares of Symbotic fell 15.7% following the earnings report, likely due to profit-taking after a significant stock increase of 124% year-to-date [2][1] - The stock's valuation is considered high, trading at over 14 times this year's revenue estimates and over 223 times adjusted earnings estimates [8] Industry Position - Symbotic is recognized as a leader in next-generation warehouse automation, with a focus on physical AI solutions [7] - Despite potential short-term challenges, the company is seen as executing well in its market [7]

Core Insights - Symbotic reported Q3 FY2025 GAAP revenue of $592 million, exceeding analyst estimates of $533.3 million by over 11% [1][2] - The company experienced a net loss per share of $(0.05), compared to the consensus estimate of $0.05 per share, due to ongoing spending on growth and integration activities [1][2] - Adjusted EBITDA reached $45 million, a significant increase from $3 million in Q3 FY2024, indicating strong operational performance [1][2][7] Financial Performance - Revenue (GAAP) increased by 26% year-over-year, driven by the systems segment capturing $559.1 million compared to $450.6 million in Q3 FY2024 [5] - Gross profit (GAAP) was $107.6 million, up from $55.0 million in Q3 FY2024, with gross margin improving to 18.2% from 11.7% [6] - Adjusted gross profit margin reached 21.5%, reflecting better project execution and increased recurring revenue from software [6] Business Overview - Symbotic specializes in automated warehouse solutions, utilizing autonomous robots, modular storage systems, and AI software to enhance efficiency and accuracy in warehousing [3] - The company holds over 700 patents and focuses on innovation in robotics and AI, expanding customer partnerships, and entering new market segments [4] Strategic Initiatives - The integration of Walmart's Advanced Systems and Robotics (ASR) business is expected to enhance capabilities in micro-fulfillment and automation for perishable goods [8] - Symbotic is expanding its GreenBox joint venture, a "warehouse-as-a-service" model, with a pipeline that includes sites on both U.S. coasts [10] Market Position and Backlog - The company's backlog was approximately $22.4 billion as of Q4 FY2024, primarily from major partners like Walmart and GreenBox [11] - Software gross margins exceeded 65% in Q2 FY2025, indicating high profitability as scale increases [11] Cash Flow and Balance Sheet - Cash and equivalents were $778 million at quarter end, down $177 million due to operating and investing outflows, with free cash flow negative $153.2 million [12] - Total assets stood at $1.83 billion and equity at $443 million, providing a solid financial base despite cash burn concerns [12] Future Guidance - Management forecasts Q4 FY2025 revenue between $590 million and $610 million, with adjusted EBITDA between $45 million and $49 million, indicating stable performance [13] - The guidance does not account for potential new tariffs, but contract terms generally allow for cost increases to be passed to customers [13]

Financial Data and Key Metrics Changes - Revenue increased by 26% year over year to $592 million, driven by solid progress across 46 systems in deployment and expansion of operational systems [12][10] - Net loss for the third quarter was $32 million compared to a loss of $27 million in the previous year [12] - Adjusted EBITDA was $45 million, significantly up from $3 million in the previous year [12] - Backlog remained strong at $22.4 billion, slightly down from $22.7 billion last quarter due to revenue recognized [12] Business Line Data and Key Metrics Changes - Software revenue more than doubled year over year to $8.1 million, while operational services revenue grew 54% year over year to $24.9 million [15] - System gross margin showed significant year-over-year improvement due to strong cost control and project execution [15] Market Data and Key Metrics Changes - The company processed over 6.5 million cases in a single day, indicating strong operational throughput [6] - Customer response to the next-generation storage structure has been very positive, with projects signed in the fiscal third quarter [10] Company Strategy and Development Direction - The company is focused on driving innovation across its technology stack, including the introduction of a next-generation storage structure that increases storage density and reduces on-site assembly parts by over 90% [9][10] - The new structure is expected to enhance scalability and accelerate deployment across various supply chain aspects [9] - The company aims to unlock higher margins and long-term value creation through its innovative product offerings [10] Management's Comments on Operating Environment and Future Outlook - Management anticipates an adjustment in the timing of several previously planned deployments to support the transition to the next-generation storage structure, which may moderate growth in the near term [20] - For fiscal 2025, the company expects revenue between $590 million and $610 million and adjusted EBITDA between $45 million and $49 million [21] Other Important Information - The company has a healthy balance sheet with cash and equivalents of $778 million, down from $955 million in the previous quarter [16] - The transition to a new CFO, Izzy Martins, is set to take place on August 9, 2025 [11] Q&A Session Summary Question: Can you quantify the next-generation storage technology in terms of installation times and retrofit opportunities? - Management does not expect Walmart to retrofit existing systems but believes the new structure will allow for smaller projects and additional capabilities [26][27] Question: What is the expected growth trajectory for new starts? - New starts are expected to step up again now that the design is commercially available, with a historical average of mid to high single-digit new starts [90] Question: What are the implications of the new storage structure on cost and margins? - The new structure is expected to save customers money due to reduced space requirements while allowing the company to achieve higher margins [37] Question: How does the company view the competitive environment? - Management is aware of new technologies but feels confident in their market position and expects to grow market share [69] Question: What is the expected impact of the new storage system on backlog and customer acquisition? - Most new systems going forward are expected to be associated with the next-generation structure, which is anticipated to accelerate customer acquisition [54][55]

Financial Data and Key Metrics Changes - Revenue increased by 26% year over year to $592 million, driven by solid progress across 46 systems in deployment and expansion of operational systems [11][12] - Net loss for the third quarter was $32 million compared to a loss of $27 million in the previous year [11] - Adjusted EBITDA was $45 million, significantly up from $3 million in the previous year [11] - Backlog remained strong at $22.4 billion, slightly down from $22.7 billion last quarter due to revenue recognized [11] Business Line Data and Key Metrics Changes - Software revenue more than doubled year over year to $8.1 million, while operational services revenue grew 54% year over year to $24.9 million [13] - System gross margin showed significant year-over-year improvement due to strong cost control and project execution [13] Market Data and Key Metrics Changes - The company processed over 6.5 million cases in a single day, indicating strong operational throughput [5] - Customer response to the next generation storage structure has been very positive, with projects signed in the fiscal third quarter [9] Company Strategy and Development Direction - The company is focused on driving innovation across its technology stack, including the introduction of a next generation storage structure that increases storage density and reduces on-site assembly parts by over 90% [8][9] - The new structure is expected to enhance scalability and accelerate deployment across various supply chain aspects [8] - The company aims to unlock higher margins and long-term value creation through the new storage structure [9] Management's Comments on Operating Environment and Future Outlook - Management anticipates an adjustment in the timing of several previously planned deployments to support the transition to the next generation storage structure, which may moderate growth in the near term [19] - For fiscal year 2025, the company expects revenue between $590 million and $610 million and adjusted EBITDA between $45 million and $49 million [20] Other Important Information - The company has a healthy balance sheet with cash and equivalents of $778 million, down from $955 million in the previous quarter [14] - The transition to the new storage structure is expected to allow for faster scaling over time [19] Q&A Session Summary Question: Can you quantify the next generation storage technology in terms of installation times and retrofit opportunities? - Management does not expect Walmart to perform retrofits but believes the new system can run alongside the old structure, allowing for more efficient use of space [25][26] Question: What is the expected growth trajectory for new starts? - New starts are expected to step up again now that the design is commercially available, with a historical average of mid to high single-digit new starts [86] Question: What are the implications of the new storage system on customer acquisition? - The new structure is expected to accelerate new customer acquisition, with the highest level of customer dialogue ever [92] Question: How will the new storage structure impact backlog and installation timelines? - All new starts this quarter are associated with the next generation structure, and installation is expected to begin mid fiscal year 2026 [50][51] Question: What is the outlook for the ASR portion of the business? - Development revenues for ASR were up sequentially, and this level is expected to be maintained for the next couple of quarters [100][101]

Company Overview - Symbotic is an AI-enabled technology platform transforming the supply chain[17] - The company's AI/software platform drives actionable insights from goods and location data to improve inventory optimization and order accuracy[19] - Symbotic has a transformative technology platform with 46 systems in deployment and 42 operational systems[22, 23] - The company has issued 650+ patents[23] Financial Highlights - Symbotic is experiencing YoY revenue growth of approximately 36%[23] - The company has a total backlog of $22.4 billion[23] - Symbotic is generating positive free cash flow[23] - In FY24, Symbotic's total revenue reached $1.788 billion, and adjusted EBITDA was $62 million[59, 62] - Symbotic reported a GAAP net loss of $84.672 million in FY24[62] Market Opportunity - The company is targeting large addressable markets, including a $432 billion one-time system sales opportunity in operator-owned warehouses[25, 26] - Symbotic has a $500 billion+ "outsourced" incremental annual warehouse-as-a-service opportunity through GreenBox[26]

Revenue Performance - Total revenue for the three months ended June 28, 2025, was $592,121,000, representing a 26% increase from $470,338,000 for the same period in 2024[155] - Total revenue for the nine months ended June 28, 2025, was $1,628,465, an increase of $404,852 or 33% compared to $1,223,613 for the same period in 2024[162] Systems Revenue - Systems revenue increased by 24% to $559,108,000 for the three months ended June 28, 2025, compared to $450,595,000 for the same period in 2024, driven by an increase in Systems in Deployment from 39 to 46[158] - Systems revenue increased by $367,546 or 31% to $1,536,539 due to an increase in Systems in Deployment from 39 to 46[162] Software Maintenance and Support Revenue - Software maintenance and support revenue surged by 129% to $8,121,000 for the three months ended June 28, 2025, up from $3,545,000 in the same period in 2024, due to an increase in Operational Systems under support contracts from 21 to 42[159] - Software Maintenance and Support revenue rose by 146% to $20,331, attributed to an increase in Operational Systems under contracts from 21 to 42[163] Operation Services Revenue - Operation services revenue rose by 54% to $24,892,000 for the three months ended June 28, 2025, compared to $16,198,000 for the same period in 2024, attributed to an increase in Operational Systems[160] - Operation Services revenue increased by 54% to $71,595, driven by a higher number of Operational Systems and increased training services[164] Profit and Loss - Gross profit for the three months ended June 28, 2025, was $107,622,000, up from $54,973,000 in the same period in 2024, reflecting improved revenue performance[155] - Gross profit for the nine months ended June 28, 2025, was $295,489, up $146,240 or 98% from $149,249 in the prior year[168] - The net loss for the three months ended June 28, 2025, was $31,925,000, compared to a net loss of $26,724,000 for the same period in 2024, reflecting ongoing investment in growth despite increased revenues[155] - The company reported a net loss of $(31,925) for the three months ended June 28, 2025, compared to $(26,724) in the same period in 2024, and a net loss of $(71,883) for the nine months ended June 28, 2025, compared to $(100,626) in 2024[190] Operating Expenses - Total operating expenses increased to $144,178,000 for the three months ended June 28, 2025, from $92,593,000 in the same period in 2024, primarily due to higher research and development and selling, general, and administrative expenses[155] - Research and development expenses for the three months ended June 28, 2025, were $52,147,000, compared to $44,722,000 for the same period in 2024, indicating a focus on product development[155] - Selling, general, and administrative expenses for the nine months ended June 28, 2025, totaled $215,092, an increase of $71,557 or 50% from $143,535 in the previous year[176] Restructuring Charges - Restructuring charges amounted to $16,361,000 for the three months ended June 28, 2025, indicating ongoing adjustments within the company[155] - Restructuring charges for the three months ended June 28, 2025, were $16,361, representing a 100% increase due to workforce reductions related to the ASR Acquisition[178] - Restructuring charges for the nine months ended June 28, 2025, were $16,130 compared to $34,206 in 2024[190] Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended June 28, 2025, was $336.3 million, significantly higher than $41.3 million for the same period in 2024[192] - Free cash flow for the nine months ended June 28, 2025, was $293.5 million, compared to $18.3 million for the same period in 2024, indicating a substantial improvement[191] - As of June 28, 2025, the company had a cash and cash equivalents balance of $777.6 million, providing a strong liquidity position[202] - The company expects its current cash and cash equivalents, along with forecasted cash flows, to meet foreseeable cash needs for at least the next 12 months[203] Stock-Based Compensation - Stock-based compensation for the three months ended June 28, 2025, was $50,279, compared to $30,320 in the same period in 2024, and for the nine months ended June 28, 2025, it was $126,982 compared to $94,508 in 2024[190] - Stock-based compensation for the nine months ended June 28, 2025, was $119.6 million, compared to $86.9 million for the same period in 2024, reflecting a 38% increase[194] Other Income and Tax Expenses - Other income, net for the three months ended June 28, 2025, decreased by $3,164 or 27% to $8,451, impacted by lower cash balances despite higher interest rates[180] - For the nine months ended June 28, 2025, other income, net was $27,626, a decrease of $361 or 1% compared to $27,987 for the same period in 2024[181] - The income tax expense for the three months ended June 28, 2025, was $(44), a decrease of $138 or 76% from $(182) in the same period in 2024[182] - The income tax benefit for the nine months ended June 28, 2025, was $(102), a decrease of $1,306 or 1280% compared to an income tax benefit of $1,204 for the same period in 2024[183] Adjusted Financial Metrics - Adjusted EBITDA for the three months ended June 28, 2025, was $45,394, compared to $2,737 for the same period in 2024, while for the nine months ended June 28, 2025, it was $98,016 compared to $19,312 in 2024[190] - Adjusted gross profit margin for the three months ended June 28, 2025, was 21.5%, up from 13.6% in the same period in 2024, and for the nine months ended June 28, 2025, it was 20.6% compared to 16.5% in 2024[190] - The company believes that non-GAAP financial measures provide a useful comparison of operating results and future prospects, excluding unusual or infrequent items[184][185]

FOR IMMEDIATE RELEASE Symbotic Reports Third Quarter Fiscal Year 2025 Results Wilmington, Massachusetts (August 6, 2025) -- Symbotic Inc. (Nasdaq: SYM), a leader in A.I.-enabled robotics technology for the supply chain, announced financial results for its third quarter of fiscal year 2025, which ended on June 28, 2025. Symbotic reported revenue of $592 million, a net loss of $32 million and adjusted EBITDA of $45 million for the third quarter of fiscal year 2025. 1 Exhibit 99.1 In comparison, Symbotic poste ...

Company Overview - Symbotic is an AI-enabled technology platform transforming the supply chain[17] - The company's AI/software platform drives actionable insights from goods and location data to improve inventory optimization and order accuracy[19] - Symbotic has a transformative technology platform with 46 systems in deployment and 42 operational systems[23] - The company has deep relationships with blue-chip customers and a $224 billion contracted backlog[55] Financial Performance - Symbotic experienced approximately 36% year-over-year revenue growth[23] - The company has a highly visible growth profile underwritten by approximately $224 billion contracted backlog[57] - In FY24, total revenue reached $1788 million, and adjusted EBITDA was $62 million, while GAAP net loss was approximately $85 million[59, 62] - The company is generating positive EBITDA with margin upside and strong free cash flow generation[57] Market Opportunity and Strategy - Symbotic is addressing existential threats such as labor pressures, evolving omni-channel strategies, and SKU proliferation with its AI-powered automation[13, 15] - The company is disrupting large addressable markets, including a $432 billion one-time system sales opportunity in operator-owned warehouses and a $500 billion+ "outsourced" incremental annual warehouse-as-a-service opportunity[26] - Symbotic has a long-term growth strategy targeting multiple vectors, including grocery, general merchandise, 3PL, apparel, CPG, and home improvement[51]

Core Viewpoint - Symbotic Inc. reported strong financial results for Q3 FY2025, with significant revenue growth and operational advancements, despite a net loss. The company is focused on innovation in supply chain robotics and anticipates a temporary revenue impact due to new product launches [1][3][4]. Financial Performance - Revenue for Q3 FY2025 reached $592 million, a 26% increase from $470 million in Q3 FY2024 [1][2]. - The net loss for Q3 FY2025 was $32 million, compared to a net loss of $27 million in the same quarter of the previous year [1][2]. - Adjusted EBITDA for Q3 FY2025 was $45 million, a significant increase from $3 million in Q3 FY2024 [1][2]. Operational Insights - The company experienced a decrease in cash and cash equivalents by $177 million, totaling $778 million at the end of Q3 FY2025 [2]. - Gross margins improved year-over-year, indicating enhanced operational efficiency [3]. - Symbotic is launching a proprietary new storage structure, which is expected to create new opportunities in the supply chain [3]. Future Outlook - For Q4 FY2025, Symbotic projects revenue between $590 million and $610 million, with adjusted EBITDA expected to be between $45 million and $49 million [4].