Sonim(SONM) - 2025 Q1 - Quarterly Results

First Quarter 2025 and Recent Highlights Sonim Technologies achieved $16.7 million revenue in Q1 2025, a 12% sequential increase, with $0.5 million GAAP net income Q1 2025 Key Financial Metrics | Metric | Q1 2025 (in millions) | Q4 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $16.7 million | $15.0 million | +12% Sequential | | GAAP Net Income (Loss) | $0.5 million | ($21.6 million) | Significant Improvement | | Adjusted EBITDA | ($3.2 million) | ($16.6 million) | Significant Improvement | - Raised $6.5 million in capital through ATM sales and debt issuance to expand product offerings and finance European expansion[3] - Positioned for growth in 2025 with new product launches, including the XP Pro Thermal 5G smartphone, and continued expansion in Europe[3] - Set to launch five new products in Q2 through Tier 1 carriers and global partners[3] - Enhanced partnerships with major carriers, earning Verizon Frontline Verified status for the XP Pro 5G and Sonim H500, and launching the XP3plus 5G at T-Mobile[3] Management Commentary CEO Peter Liu highlighted expanded sales via new product launches with North American and European carriers, affirming positive results - The company is focused on expanding its sales base by launching new products with carriers in North America and Europe[5] - Management confirms that strategic investments in new products are delivering results, with more carriers and distributors offering Sonim products[5] First Quarter 2025 Financial Performance Q1 2025 revenue increased to $16.7 million, achieving $0.5 million net income and 50% gross margin, driven by allowance expiration and R&D reduction Financial Performance: Q1 2025 vs. Q4 2024 | Metric | Q1 2025 (in millions) | Q4 2024 (in millions) | | :--- | :--- | :--- | | Revenue | $16.7 million | $15.0 million | | Gross Profit (Loss) | $8.4 million | ($0.2 million) | | Gross Margin | 50% | -1% | | Operating Expenses | $7.7 million | $21.9 million | | Net Income (Loss) | $0.5 million | ($21.6 million) | - Q1 2025 revenue included $5.3 million related to the expiration of customer allowance agreements, which also significantly boosted gross profit[6][7] - Operating expenses decreased primarily because R&D costs fell by $10.9 million due to the completion of development for new products in 2024[8] Financial Condition and Liquidity Sonim ended Q1 2025 with $2.1 million cash, $4.8 million receivables, and $8.6 million inventory, strengthening its financial position Key Balance Sheet Items (as of March 31, 2025) | Account | Amount (in millions) | | :--- | :--- | | Cash | $2.1 million | | Trade Accounts Receivable | $4.8 million | | Inventory | $8.6 million | - Subsequent to quarter end, the company received net proceeds of $4.5 million from sales of common stock through its At-The-Market (ATM) program[11] Financial Statements This section presents Sonim's condensed consolidated financial statements, detailing the company's financial position and performance Condensed Consolidated Balance Sheets](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, total assets were $36.0 million, total liabilities $37.0 million, with stockholders' deficit improving to $1.1 million Balance Sheet Summary (in thousands) | Account | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Total Current Assets | $26,935 | $32,165 | | Total Assets | $35,958 | $39,739 | | Total Current Liabilities | $34,677 | $43,740 | | Total Liabilities | $37,037 | $45,439 | | Total Stockholders' Equity (Deficit) | ($1,079) | ($5,700) | Condensed Consolidated Statements of Operations](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For Q1 2025, total net revenues were $16.7 million, resulting in a net income of $0.5 million ($0.08 diluted EPS) Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Total Net Revenues | $16,721 | $16,776 | | Gross Profit | $8,356 | $2,902 | | Income (Loss) from Operations | $645 | ($2,689) | | Net Income (Loss) | $458 | ($2,906) | | Diluted EPS | $0.08 | ($0.65) | Non-GAAP Financial Measures Sonim uses Adjusted EBITDA, a non-GAAP measure, to assess operating performance by excluding non-cash and non-recurring items - Adjusted EBITDA is defined as net loss adjusted for stock-based compensation, depreciation & amortization, interest, taxes, expiration of customer allowance agreements, impairment of assets, and restructuring charges[20] - The company uses Adjusted EBITDA internally for performance assessment, planning, resource allocation, and evaluating business strategies[21] Reconciliation of Net Income (Loss) to Adjusted EBITDA](index=6&type=section&id=Reconciliation%20of%20Net%20Income%20%28Loss%29%20to%20Adjusted%20EBITDA) Adjusted EBITDA for Q1 2025 improved to negative $3.2 million from negative $16.6 million in Q4 2024 Reconciliation to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 (in thousands) | Q4 2024 (in thousands) | | :--- | :--- | :--- | | Net Income (Loss) | $458 | ($21,614) | | Release of customer allowance liabilities | ($5,271) | — | | Impairment of contract fulfillment assets | — | $3,267 | | Restructuring charges | — | $514 | | Adjusted EBITDA | ($3,245) | ($16,604) |