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]

By comparison, in the second quarter of fiscal year 2024, Symbotic had revenue of $393 million, a net loss of $55 million and adjusted EBITDA of $9 million. Cash and cash equivalents increased by $52 million from the prior quarter to $955 million at the end of the second quarter of fiscal year 2025. "Our execution has improved, and our margins expanded," said Symbotic Chairman and Chief Executive Officer Rick Cohen. "With stronger project execution and a compelling roadmap of product innovation, we remain w ...

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 ...

Core Insights - Symbotic Inc. will release its second quarter fiscal 2025 financial results on May 7, 2025, after market close [1] - A live webcast to discuss the financial results will be held at 5:00 p.m. ET on the same date [1][2] Company Overview - Symbotic is a leader in automation technology, focusing on A.I.-powered robotics and software for supply chain management [3] - The company aims to transform warehouses into strategic assets for major retail, wholesale, and food & beverage companies [3] - By utilizing next-generation technology, high-density storage, and machine learning, Symbotic addresses complex distribution challenges, enhancing speed, agility, accuracy, and efficiency in goods movement [3]

Core Viewpoint - Opportunistic investors are seizing the chance to buy Symbotic stock after its significant decline, particularly following its 52-week low of $16.32 per share on April 4, with a subsequent bounce back of 16.1% [1] Group 1: Company Overview - Symbotic specializes in developing fully autonomous mobile robots powered by AI software for automating warehouses, distribution centers, and supply chains [2] - The company has a long-standing relationship with Walmart, dating back to 2015, and recently acquired Walmart's advanced systems and robotics business [5] Group 2: Financial Performance - Symbotic's revenue grew by 47% year over year in Q4, but only 35% growth was reported for the first quarter of fiscal 2025, ending December 31, 2024 [4] - The company reported a steady net loss of $19 million and projected around 30% revenue growth for Q2 [4] Group 3: Strategic Partnerships and Market Potential - Walmart paid $230 million at the deal's closing and will pay an additional $290 million, with Symbotic estimating that this deal could add $5 billion to its backlog in the long term [3] - The addressable market size for Symbotic's services in the U.S. is over $300 billion [3] Group 4: Market Conditions and Challenges - Despite the recent stock decline of 55% over the past year, investors view the current price as a buying opportunity [4] - Ongoing tariffs and trade wars may disrupt supply chains and increase costs, posing potential challenges for Symbotic [5]

Core Insights - Associated Food Stores (AFS) has successfully activated a warehouse modernization initiative in partnership with Symbotic Inc., enhancing its distribution center in Utah to better serve nearly 500 independent grocers in the Intermountain West [1][5]. Group 1: Warehouse Modernization Initiative - The initiative involves the implementation of Symbotic's end-to-end automation system, which includes robotic case pick capabilities, aimed at improving supply chain efficiency and retail experiences [2][4]. - The automation system will enhance product delivery accuracy, increase speed to shelf, and improve SKU availability, thereby optimizing inventory utilization for AFS [2][5]. Group 2: Company Commitment and Future Plans - AFS emphasizes its 85-year commitment to efficiency and service, positioning itself at the forefront of supply chain innovation through this partnership with Symbotic [1][5]. - The initiative is expected to create growth opportunities for distribution center team members, ensuring job security and continued support for independent grocers in the region [5]. Group 3: Event and Stakeholder Engagement - AFS will host a special event to celebrate the activation of the new system, inviting media representatives and industry partners to witness the advanced automation technologies in action [3]. Group 4: Company Background - Established in 1940, AFS has grown to serve nearly 500 independent retailers, focusing on empowering them to compete against larger chain stores [6]. - Symbotic is recognized as a leader in automation technology, providing AI-powered solutions to transform supply chain operations for major retail and wholesale companies [7].

Core Viewpoint - Symbiotic Inc. (SYM) shares have decreased by 41.9% over the past year, underperforming its industry and the broader market, raising questions about the timing for potential investment in the company [1][4]. Group 1: Stock Performance - SYM's stock is currently trading below its 50-day moving average, indicating bearish sentiment among investors [4]. - In contrast, industry peers Aurora Innovation, Inc. (AUR) and Allot Ltd. (ALLT) have seen significant gains of 175.6% and 172.9% respectively over the same period [4]. Group 2: Strategic Acquisitions and Expansion - Symbiotic completed the acquisition of Walmart's advanced systems and robotic business in January 2025, which is expected to enhance its backlog by over $5 billion and expand its total addressable market [5][6]. - The company also acquired OhmniLabs in December 2024, aiming to integrate its automation expertise with OhmniLabs' mobile robots and AI solutions for healthcare applications [7]. - Additionally, SYM has entered a commercial agreement with Walmex to deploy its warehouse automation systems in Mexico, further contributing to revenue growth [8]. Group 3: Financial Outlook - The Zacks Consensus Estimate for SYM's fiscal 2025 revenues is projected at $2.3 billion, reflecting a year-over-year growth of 21.9% [9]. - The consensus estimate for SYM's fiscal 2025 earnings is 25 cents per share, indicating a more than 100% year-over-year increase [9]. Group 4: Liquidity and Cost Considerations - SYM's current ratio of 1.22 is below the industry average of 2.21, although it still suggests the company can meet its short-term obligations [10]. - Steel prices significantly impact SYM's cost of goods sold, with management implementing pass-through clauses to recover costs from customers [12]. - Rising steel prices due to tariffs could increase project costs for retailers, potentially affecting SYM's return on investment [13]. Group 5: Valuation and Investment Considerations - SYM's stock is currently considered expensive, trading at 67.5 times forward 12-month earnings per share, which is higher than the industry average of 39.8 times [14]. - Despite the recent stock decline, the company's long-term prospects appear solid due to its acquisitions and strategic expansions, though a cautious investment approach is recommended [16].

Company Analysis - Symbotic's Q1 results and forward guidance were disappointing, leading to a sharp drop in share price due to a lack of growth in system deployments, which is expected to result in continued softening of growth in upcoming quarters [1] Industry Insights - Narweena, an asset manager, focuses on identifying market dislocations caused by poor understanding of long-term business prospects, aiming for excess risk-adjusted returns through secular growth opportunities in markets with barriers to entry [1] - The research process emphasizes company and industry fundamentals to uncover unique insights, with a high risk appetite and long-term investment horizon targeting deeply undervalued stocks, particularly in smaller cap stocks and less obvious competitive advantage markets [1] - An aging population with low growth and stagnating productivity is expected to create a different set of investment opportunities, with many industries facing stagnation or secular decline, potentially improving business performance as competition decreases [1] - The economy is increasingly dominated by asset-light businesses, leading to a declining need for infrastructure investments, resulting in a large pool of capital chasing limited investment opportunities, driving up asset prices and compressing risk premia over time [1]