Sonim(SONM) - 2025 Q2 - Quarterly Results

Q2 2025 Financial & Business Highlights Sonim Technologies reported Q2 2025 net revenue of $11.2 million and a GAAP net loss of $7.5 million, with a strategic asset sale and new product launches Financial Highlights (Q2 2025 vs Q1 2025) | Financial Metric | Q2 2025 | Q1 2025 | Note | | :--- | :--- | :--- | :--- | | Net Revenue | $11.2 million | $16.7 million | Q1 included a one-time $5.3M revenue addition | | GAAP Net Income (Loss) | ($7.5 million) | $0.5 million | Q2 includes impairment loss and proxy costs | | Adjusted EBITDA* | ($3.2 million) | ($3.2 million) | Unchanged QoQ | | Cash and Cash Equivalents | $2.0 million | - | As of June 30, 2025 | - In July, Sonim entered a definitive agreement for Social Mobile to acquire substantially all of its assets in an all-cash transaction for $15.0 million, with up to an additional $5.0 million in an earn-out payment The deal is expected to close in Q4 2025, pending stockholder approval[5] - Key product launches are underway in Q3, including the XP Pro series and a 5G flip phone with tier-one carriers The company also launched the Sonim MegaConnect HPUE mobile hotspot with FirstNet and AT&T[2] - The company raised $5.4 million in net capital through common stock sales to fund product expansion and new launches[3] Detailed Financial Performance Analysis Q2 2025 revenue decreased to $11.2 million, with gross profit at $0.8 million and a net loss of $7.5 million, impacted by one-time items Key Financial Metrics (Q2 2025 vs Q1 2025) | Metric | Q2 2025 | Q1 2025 | Key Factors | | :--- | :--- | :--- | :--- | | Net Revenue | $11.2M | $16.7M | Q1 included a $5.3M one-time revenue item | | Gross Profit | $0.8M | $8.4M | Q2 included a $1.1M impairment loss | | Net Income (Loss) | ($7.5M) | $0.5M | Q1 benefited from the $5.3M one-time item | - Operating expenses were stable at $7.6 million, as a $0.7 million decrease in R&D costs was offset by higher G&A and Sales & Marketing expenses due to legal fees from the contested proxy[8] - The company ended Q2 with $2.0 million in cash, $2.9 million in accounts receivable, and $9.9 million in inventory Subsequent to the quarter's end, it received net proceeds of $7.1 million from stock sales and debt issuance[10] Financial Statements This section presents unaudited condensed consolidated financial statements as of June 30, 2025, detailing total assets of $36.1 million and a Q2 net loss of $7.5 million Condensed Consolidated Balance Sheets As of June 30, 2025, Sonim reported $2.0 million in cash, $27.1 million in current assets, $35.7 million in current liabilities, and a $1.3 million stockholders' deficit Condensed Consolidated Balance Sheets (in thousands) | Balance Sheet Items (in thousands) | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $2,006 | $5,343 | | Inventory | $9,889 | $10,621 | | Total current assets | $27,123 | $32,165 | | Total assets | $36,078 | $39,739 | | Liabilities & Equity | | | | Accounts payable | $20,583 | $22,848 | | Total current liabilities | $35,662 | $43,740 | | Total liabilities | $37,412 | $45,439 | | Total stockholders' equity (deficit) | ($1,334) | ($5,700) | Condensed Consolidated Statements of Operations For Q2 2025, Sonim's net revenues were $11.2 million, gross profit $0.8 million, and net loss $7.5 million or ($0.79) per basic share Condensed Consolidated Statements of Operations (in thousands) | Statement of Operations (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total net revenues | $11,190 | $11,516 | | Gross profit | $845 | $2,969 | | Total operating expenses | $7,577 | $9,439 | | Income (loss) from operations | ($6,732) | ($6,470) | | Net income (loss) | ($7,475) | ($6,616) | | Net income (loss) per share, basic | ($0.79) | ($1.41) | Non-GAAP Financial Measures Sonim provides Adjusted EBITDA as a supplemental non-GAAP measure, reporting a Q2 2025 loss of $3.2 million, consistent with Q1, after various adjustments - Adjusted EBITDA is defined as net loss excluding stock-based compensation, depreciation & amortization, interest, taxes, customer allowance agreement expirations, asset impairments, financing costs, and non-recurring legal fees[25] Reconciliation to Adjusted EBITDA (in thousands) | Reconciliation to Adjusted EBITDA (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended March 31, 2025 | | :--- | :--- | :--- | | Net income (loss) | $(7,475) | $458 | | Adjustments: | | | | Release of customer allowance liabilities | $(219) | $(5,271) | | Impairment of contract fulfillment assets | $1,084 | — | | Non-recurring legal and professional fees | $613 | — | | Other standard adjustments | $2,845 | $1,478 | | Adjusted EBITDA | $(3,151) | $(3,245) | Corporate Information & Forward-Looking Statements This section outlines Sonim's business, forward-looking statements, and details regarding the proposed asset sale to Social Mobile, emphasizing associated risks and stockholder information - The company plans to file a proxy statement with the SEC concerning the proposed asset sale to Social Mobile and urges stockholders to read it before making any voting decisions[15] - Forward-looking statements involve significant risks, including the ability to obtain stockholder approval for the asset sale, the timing of the closing, the potential for competing offers, and the impact of the announcement on business relationships[14] - Sonim's directors and executive officers may be deemed participants in the solicitation of proxies for the proposed transaction[16]