Sonim(US:SONM)2025-10-31 12:05Financial Performance - Revenue for Q3 2025 was $16.2 million, a 45% increase sequentially from $11.2 million in Q2 2025[3] - Net loss narrowed to $4.8 million in Q3 2025, improving from a net loss of $7.5 million in Q2 2025[3] - Adjusted EBITDA for Q3 2025 was negative $2.0 million, an improvement from negative $3.2 million in Q2 2025[3] - Total net revenues for Q3 2025 reached $16,214 million, a 7.98% increase from $15,022 million in Q3 2024[21] - Net loss for Q3 2025 was $(4,753) million, compared to a net loss of $(2,512) million in Q3 2024, indicating worsening financial performance[21] - Adjusted EBITDA for Q3 2025 was $(2,009) million, an improvement from $(3,151) million in Q2 2025[26] - Interest expense for Q3 2025 was $(522) million, compared to no interest expense in Q3 2024, indicating increased financial costs[21] Operating Expenses - Operating expenses decreased to $5.8 million in Q3 2025, down from $7.6 million in Q2 2025, primarily due to reduced sales and marketing costs[12] - Operating expenses totaled $5,796 million in Q3 2025, a decrease from $6,608 million in Q3 2024[21] - Total operating expenses for the nine months ended September 30, 2025, were $21,084 million, slightly down from $21,638 million in the same period of 2024[21] - Research and development expenses were $181 million in Q3 2025, compared to $715 million in Q3 2024, reflecting a reduction in investment in innovation[21] Profitability - Gross profit for Q3 2025 was $1.8 million, representing 11% of revenues, compared to 8% in Q2 2025[11] - Gross profit for Q3 2025 was $1,816 million, down from $4,232 million in Q3 2024, indicating a significant decline in profitability[21] Cash and Assets - As of September 30, 2025, Sonim had $2.1 million in cash, $3.5 million in trade accounts receivable, and $11.0 million in inventory[14] - Sonim received net proceeds of approximately $4.8 million from equity offerings during Q3 2025, used for one-time expenses and new product launches[4] Corporate Actions - The company launched the MegaConnect HPUE mobile hotspot and several new products with major carriers, including AT&T and T-Mobile[9] - The company is in the process of selling its assets to NEXA Mobility for $15.0 million in cash, with an additional earn-out payment of up to $5.0 million[9] - Stockholders approved a reverse stock split at a ratio of 1-for-18, effective October 27, 2025, to regain compliance with Nasdaq listing requirements[9] Performance Metrics - The company emphasized the importance of Adjusted EBITDA as a measure of operating performance, excluding non-cash and non-recurring items[24] - The company reported a weighted-average of 984,927 shares used in computing net loss per share for Q3 2025[21]