Core Insights - Symbotic Inc. reported revenue of $549.65 million for the quarter ended March 2025, reflecting a year-over-year increase of 29.5% [1] - The earnings per share (EPS) was -$0.04, a decline from $0.22 in the same quarter last year, indicating a significant EPS surprise of -180.00% compared to the consensus estimate of $0.05 [1] - The reported revenue exceeded the Zacks Consensus Estimate of $517.91 million by 6.13% [1] Revenue Breakdown - Revenue from software maintenance and support was $6.69 million, surpassing the average estimate of $5.65 million from two analysts [4] - Revenue from systems reached $513.37 million, exceeding the two-analyst average estimate of $486.48 million [4] - Revenue from operation services was $29.59 million, also above the average estimate of $25.45 million from two analysts [4] Stock Performance - Shares of Symbotic Inc. have increased by 28.4% over the past month, outperforming the Zacks S&P 500 composite, which saw a change of +10.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Group 1 - Symbotic Inc. reported a quarterly loss of $0.04 per share, which was better than the Zacks Consensus Estimate of $0.05, but a decline from earnings of $0.22 per share a year ago, resulting in an earnings surprise of -180% [1] - The company posted revenues of $549.65 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 6.13%, and showing an increase from $424.3 million in the same quarter last year [2] - Over the last four quarters, Symbotic has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Group 2 - The stock has lost approximately 3.2% since the beginning of the year, while the S&P 500 has declined by 4.7% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $577.07 million, and for the current fiscal year, it is $0.26 on revenues of $2.27 billion [7] Group 3 - The Zacks Industry Rank indicates that the Technology Services sector is currently in the top 26% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for Symbotic is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6]

Financial Data and Key Metrics Changes - Revenue grew by 40% year over year to $550 million, driven by solid progress across 46 systems in deployment and more than doubling the number of operational systems from a year ago [8][9] - Net loss reduced to $21 million in Q2 from $55 million in the same quarter of the previous fiscal year [8] - Adjusted EBITDA increased to $35 million, more than tripling year over year from $9 million [8][9] - Cash and equivalents at the end of the quarter were $955 million, up from $903 million in the first quarter [13] Business Line Data and Key Metrics Changes - Software revenue grew over 160% year over year to $6.7 million, while operational services revenue increased by 47% year over year to $29.6 million [10] - The company began a record 10 new system deployments in the quarter, including one new GreenBox site [9][10] - The backlog increased to $22.7 billion from $22.4 billion in the previous quarter, primarily due to a new development contract with Walmart [11] Market Data and Key Metrics Changes - The company is well-positioned with nearly $23 billion in backlog, indicating strong future growth potential [7][8] - Gross margin on software maintenance and support exceeded 65%, trending toward typical industry software margins [12] Company Strategy and Development Direction - The company is focused on improving project execution and has made changes to streamline deployment processes, including in-sourcing construction management [6][7] - The acquisition of Walmart Advanced Systems and Robotics (ASR) expands the product portfolio to include micro-fulfillment solutions for both ambient and perishable environments [7][8] - The company is investing in talent acquisition to support future growth, including hiring a new Senior Vice President of Commercial [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing improved project execution and a strong backlog [7][8] - The company expects revenue for Q3 to be between $520 million and $540 million, with adjusted EBITDA between $26 million and $30 million [14] - Management acknowledged that system starts will continue to be lumpy but anticipates an upward trajectory in the coming quarters [19] Other Important Information - The company is seeing increased interest in its technology and innovation roadmap, particularly in developing solutions for perishables and frozen goods [46][47] - Management highlighted the importance of integrating new technologies, such as LiDAR and vision systems, into their operations to enhance productivity [75] Q&A Session Summary Question: Does Q2 foreshadow future system starts and completions? - Management indicated that while system starts will continue to be lumpy, they expect an improvement in the number of system starts due to the backlog [19] Question: Is there any impact from tariffs on the forecast? - Management confirmed that the forecast does not include tariff impacts, as most contracts allow for pass-through of tariff costs [22][58] Question: What is the revenue contribution from ASR? - ASR contributed a mid to high single-digit percentage of revenue for the quarter, with expectations for growth as development progresses [39][86] Question: What is the status of GreenBox and its sales capabilities? - Management stated that GreenBox is in early stages, with ongoing efforts to build out the sales force and prospect for new customers [82] Question: How is the company leveraging technology for future growth? - Management discussed the integration of advanced technologies into their systems, which is expected to enhance reliability and reduce operating costs [75]

Financial Data and Key Metrics Changes - Revenue grew by 40% year over year to $550 million, driven by solid progress across 46 systems in deployment and more than doubling the number of operational systems from a year ago [9][10] - Net loss reduced to $21 million in the second quarter from $55 million in the same quarter of fiscal 2024 [9] - Adjusted EBITDA increased to $35 million, more than tripling year over year from $9 million [9][10] - Cash and equivalents at the end of the quarter were $955 million, up from $903 million in the first quarter [13] Business Line Data and Key Metrics Changes - Software revenue grew over 160% year over year to $6.7 million, while operational services revenue increased by 47% year over year to $29.6 million [11] - The company began a record 10 new system deployments and completed 8 systems in the quarter, bringing the total to 37 operational systems [10][11] - The backlog increased to $22.7 billion from $22.4 billion last quarter, primarily due to the addition of a development contract with Walmart [12] Market Data and Key Metrics Changes - The company is well-positioned with nearly $23 billion in backlog, indicating strong future growth potential [7][8] - The gross margin on software maintenance and support exceeded 65%, trending toward typical industry software margins [12] Company Strategy and Development Direction - The company is focused on improving project execution and has made changes to streamline deployment processes, including in-sourcing construction management [6][7] - The acquisition of Walmart Advanced Systems and Robotics (ASR) expands the product portfolio to include micro-fulfillment solutions for both ambient and perishable environments [7][8] - The company is investing in talent acquisition to support growth, including hiring a new Senior Vice President of Commercial [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's advantageous position going forward, citing improved execution and expanded margins [7] - The outlook for the third quarter of fiscal 2025 anticipates revenue between $520 million to $540 million and adjusted EBITDA between $26 million and $30 million [14] Other Important Information - The company is experiencing a significant uptick in incoming demand due to labor shortages and inflation concerns among large customers [62] - Management highlighted the importance of technology integration, including advancements in LiDAR and vision capabilities for bots [70] Q&A Session Summary Question: Does Q2 foreshadow future system starts and completions? - Management indicated that system starts will continue to be lumpy but expects an improvement trajectory due to the backlog [18] Question: Is there a forecast for tariff-related impacts? - Management clarified that the forecast does not include tariff impacts, as most contracts allow for pass-through of tariffs, which could increase revenue but may drag on gross margins [20][21] Question: What is the revenue contribution from ASR? - ASR contributed a mid to high single-digit percentage of revenue for the quarter, with expectations for growth as prototypes are developed [35][84] Question: What is the status of GreenBox's sales capability? - GreenBox is in early stages, with ongoing prospecting and sales efforts, and management is optimistic about future customer engagement [80] Question: How is the company leveraging technology for system improvements? - The company is integrating advanced technologies into its systems, which is expected to enhance reliability and reduce operating costs [70] Question: What is the outlook for free cash flow? - Free cash flow is expected to remain stable as the company benefits from timing of receipts and ongoing contracts [66]

Revenue Growth - Total revenue for the three months ended March 29, 2025, was $549,651,000, representing a 40% increase compared to $393,332,000 for the same period in 2024[146] - Total revenue for the six months ended March 29, 2025, was $1,036,344, representing a 38% increase compared to $753,275 for the same period in 2024[151] - The company expects continued revenue growth from the Master Automation Agreement (MAA) with Walmart, which includes the installation of Systems in all 42 regional distribution centers through fiscal year 2029[148] Systems Revenue - Systems revenue increased by 38% to $513,372,000 for the three months ended March 29, 2025, up from $370,693,000 in the prior year, driven by an increase in the number of Systems in Deployment[148] - Systems revenue increased by 36% to $977,431 for the six months ended March 29, 2025, driven by an increase in Systems in Deployment from 37 to 46[151] Software Maintenance and Support - Software maintenance and support revenue surged by 161% to $6,685,000 for the three months ended March 29, 2025, compared to $2,566,000 for the same period in 2024, attributed to an increase in Operational Systems under support contracts[148] - Software maintenance and support revenue surged by 158% to $12,210, attributed to an increase in Operational Systems under contracts from 18 to 37[152] Operational Services Revenue - Operation services revenue rose by 47% to $29,594,000 for the three months ended March 29, 2025, compared to $20,073,000 in the prior year, reflecting an increase in Operational Systems and training services provided[150] - The increase in Operation Services revenue is linked to a rise in Operational Systems and additional training services provided to customers[153] - The company anticipates further growth in operational services contracts as the number of Operational Systems increases[153] Profitability - Gross profit for the three months ended March 29, 2025, was $107,828,000, compared to $30,220,000 for the same period in 2024, resulting in a gross margin of 20%[146] - Gross profit for the six months ended March 29, 2025, reached $187,867, up 99% from $94,276 in the prior year, with Systems gross profit increasing by $88,726[156] - Adjusted gross profit for the three months ended March 29, 2025, was $121,810,000, up from $69,670,000 in the prior year[175] - The adjusted gross profit margin for the three months ended March 29, 2025, was 22.2%, compared to 7.7% in the prior year[175] Expenses - Research and development expenses increased to $61,540,000 for the three months ended March 29, 2025, compared to $46,462,000 in the prior year, reflecting ongoing investment in product development[146] - Research and development expenses for the six months ended March 29, 2025, totaled $105,133, a 19% increase from $88,606, representing 10% of total revenue[160] - Selling, general, and administrative expenses rose to $78,347,000 for the three months ended March 29, 2025, from $48,652,000 in the same period of 2024[146] - Selling, general, and administrative expenses rose by 46% to $139,421 for the six months ended March 29, 2025, primarily due to increased employee-related costs[164] Loss and Income Tax Benefit - Operating loss for the three months ended March 29, 2025, was $(32,059,000), an improvement from $(64,894,000) in the same period of 2024[146] - The net loss for the three months ended March 29, 2025, was $(21,438,000), compared to $(54,830,000) for the same period in 2024[146] - Income tax benefit for the three months ended March 29, 2025, increased to $1,397,000, a 454% increase compared to $252,000 for the same period in 2024[168] - For the six months ended March 29, 2025, income tax benefit rose to $1,248,000, reflecting a 1460% increase from $80,000 in the prior year[169] Cash Flow and Investments - Free cash flow for the six months ended March 29, 2025, was $446,685,000, compared to a negative $14,942,000 for the same period in 2024[176] - Net cash provided by operating activities for the six months ended March 29, 2025, was $474,602,000, a significant increase from a cash outflow of $9,078,000 in the prior year[177] - The company incurred $200,000,000 for the acquisition of ASR during the six months ended March 29, 2025[181] - Cash requirements for the six months ended March 29, 2025, were primarily related to inventory purchases and strategic investments[186] - As of March 29, 2025, the company had a cash and cash equivalents balance of $954.9 million, sufficient to meet foreseeable cash needs for at least the next 12 months[186] Commitments and Future Outlook - The company's vendor commitments total $984.8 million, with $928.4 million due within the next year[188] - The company expects future capital requirements to depend on growth rate, R&D spending, and potential acquisitions[188] - No significant financing activities occurred during the six months ended March 29, 2025, aside from $3.2 million from the issuance of common stock under the ESPP[184] Accounting and Risk Assessment - There have been no significant changes in critical accounting policies and estimates compared to the previous year[189] - As of March 29, 2025, the company had no off-balance sheet arrangements[190] - There have been no material changes in the company's assessment of market risk sensitivity since the last annual report[192]

Financial Performance - Symbotic reported Q2 FY2025 revenue of $550 million, a 40% increase year-over-year from $393 million in Q2 FY2024[3][4] - The company experienced a net loss of $21 million in Q2 FY2025, an improvement from a net loss of $55 million in the same quarter last year[3][4] - Adjusted EBITDA for Q2 FY2025 was $35 million, up from $9 million in Q2 FY2024[3][4] - Total revenue for the three months ended March 29, 2025, was $549,651,000, an increase of 12.9% compared to $486,693,000 for the same period in 2024[18] - Gross profit for the three months ended March 29, 2025, was $107,828,000, representing a gross profit margin of 19.6%, up from 16.4% in the same period last year[20] - Operating loss for the three months ended March 29, 2025, was $(32,059,000), compared to $(24,629,000) for the same period in 2024[18] - Adjusted EBITDA for the three months ended March 29, 2025, was $34,718,000, compared to $17,904,000 for the same period in 2024[20] - The company reported a net loss of $(21,438,000) for the three months ended March 29, 2025, compared to $(18,520,000) for the same period in 2024[20] - The net loss for the three months ended March 29, 2025, was $21,438 thousand, compared to a net loss of $18,520 thousand for the same period in 2024, representing an increase of approximately 10.0%[27] Cash Flow and Liquidity - Cash and cash equivalents increased by $52 million to $955 million at the end of Q2 FY2025[3] - Cash and cash equivalents increased to $954,944,000 as of March 29, 2025, from $727,310,000 as of September 28, 2024[25] - Cash flows from operating activities provided $269,575 thousand for the three months ended March 29, 2025, up from $205,027 thousand in the same period of 2024, indicating a growth of about 31.4%[27] - Cash, cash equivalents, and restricted cash at the end of the period totaled $958,002 thousand, an increase from $906,086 thousand at the end of the previous period, marking a rise of about 5.7%[28] Investments and Expenditures - The company incurred capital expenditures of $20,560 thousand for the three months ended March 29, 2025, compared to $7,357 thousand in the same period of 2024, representing an increase of approximately 179.5%[27] - The company reported a net cash used in investing activities of $220,560 thousand for the three months ended March 29, 2025, compared to $25,349 thousand in the same period of 2024, indicating a significant increase in investment activities[27] Future Outlook - For Q3 FY2025, Symbotic expects revenue between $520 million and $540 million, with adjusted EBITDA projected at $26 million to $30 million[5] - Symbotic's Chairman emphasized improved execution and expanded margins, positioning the company for future growth[4] - The company is focused on investing in innovation to support future growth[4] - The company continues to pursue strategic acquisitions and partnerships to enhance its technology and market position[10][12] - Symbotic is not providing guidance for net loss due to the inability to reconcile forward-looking adjusted EBITDA to net loss without unreasonable effort[5][7] Shareholder Information - Class A Common Shares issued and outstanding increased to 108,380,772 as of March 29, 2025, from 104,689,377 as of September 28, 2024[23] Deferred Revenue and Liabilities - Deferred revenue increased significantly to $230,283 thousand for the three months ended March 29, 2025, compared to $58,336 thousand in the same period of 2024, showing a growth of approximately 295.5%[27] - Total liabilities as of March 29, 2025, were $1,542,611,000, compared to $1,188,422,000 as of September 28, 2024[25] Other Financial Metrics - Free cash flow for the three months ended March 29, 2025, was $249,015,000, an increase from $197,670,000 in the same period last year[21] - The company reported stock-based compensation of $43,355 thousand for the three months ended March 29, 2025, compared to $26,773 thousand in the same period of 2024, reflecting an increase of approximately 62.0%[27] - The company reported a gain from strategic investment fair value adjustment of $(4,481) thousand for the three months ended March 29, 2025, compared to no such gain in the same period of 2024[27] - The company’s accounts receivable decreased by $3,195 thousand for the three months ended March 29, 2025, compared to an increase of $67,376 thousand in the same period of 2024, indicating a shift in cash flow management[27]

Financial Performance - Symbotic Inc. reported revenue of $550 million for Q2 FY2025, a 40% increase from $393 million in Q2 FY2024 [1][2][3] - The company experienced a net loss of $21 million in Q2 FY2025, an improvement from a net loss of $55 million in the same quarter of the previous year [1][2] - Adjusted EBITDA for Q2 FY2025 was $35 million, compared to $9 million in Q2 FY2024 [1][2][3] Cash Position - Cash and cash equivalents increased by $52 million from the previous quarter, totaling $955 million at the end of Q2 FY2025 [2] - The company reported a free cash flow of $249 million for Q2 FY2025, up from $197 million in Q2 FY2024 [23] Future Outlook - For Q3 FY2025, Symbotic expects revenue between $520 million and $540 million, with adjusted EBITDA projected to be between $26 million and $30 million [4] - The company aims to enhance project execution and invest in future growth and innovation [3] Operational Highlights - Symbotic achieved a record number of system starts and completions during the second quarter [3] - The company is focused on product innovation and improving margins, indicating a strong operational strategy moving forward [3]

Symbotic Inc. (SYM) is scheduled to release second-quarter fiscal 2025 results on May 7, after market close.The company surpassed the Zacks Consensus Estimate in three of the four trailing quarters and missed once, delivering an average earnings surprise of 181.3%.Symbotic Inc. Price and EPS Surprise Symbiotic’s Q2 ExpectationsThe Zacks Consensus Estimate for SYM’s revenues is pegged at $517.9 million, indicating a 22.1% rise from the year-ago quarter’s actual. Solid progress across systems in the deploymen ...

Group 1 - Symbotic (NASDAQ: SYM) has demonstrated significant growth over the past five years, yet its stock has declined by 43% in the last year [1] - The company specializes in AI-powered warehouse management and reached an all-time high stock price of $63.64 [1] Group 2 - The article reflects a perspective of value dividend investing, focusing on identifying heavily undervalued companies with substantial upside potential [1] - The author emphasizes a long-term investment strategy aimed at generating income through dividends [1]

The latest trading session saw Symbotic Inc. (SYM) ending at $20.41, denoting a +0.79% adjustment from its last day's close. This move outpaced the S&P 500's daily gain of 0.13%. Elsewhere, the Dow saw a downswing of 1.33%, while the tech-heavy Nasdaq depreciated by 0.13%.The company's shares have seen a decrease of 5.81% over the last month, not keeping up with the Business Services sector's loss of 0.93% and outstripping the S&P 500's loss of 6.3%.The investment community will be paying close attention to ...