Smith Micro Software(SMSI) - 2025 Q3 - Quarterly Results

Financial Performance - Smith Micro reported revenue of $4.3 million for Q3 2025, a decrease of 6.5% compared to $4.6 million in Q3 2024[3] - Year-to-date revenue for the nine months ended September 30, 2025, was $13.4 million, down from $15.6 million for the same period in 2024[7] - Revenues for Q3 2025 were $4,347, a decrease of 6.5% from $4,648 in Q3 2024[16] - Gross profit for Q3 2025 was $3,211, down 3.5% from $3,327 in Q3 2024[16] - Gross profit for the nine months ended September 30, 2025, was $9,824 million, a decrease of 7.9% compared to $10,695 million for the same period in 2024[21][22] Profitability Metrics - Gross profit for Q3 2025 was $3.2 million, with a gross profit margin of 73.9%, up from 71.6% in Q3 2024[4] - GAAP net loss for Q3 2025 was $5.2 million, or $0.25 loss per share, an improvement from a net loss of $6.4 million, or $0.54 loss per share, in Q3 2024[5] - Non-GAAP net loss for Q3 2025 was $2.6 million, or $0.12 loss per share, compared to a non-GAAP net loss of $3.6 million, or $0.30 loss per share, in Q3 2024[6] - Net loss attributable to common stockholders for Q3 2025 was $5,170, compared to $6,369 in Q3 2024, reflecting a 18.8% improvement[16] - GAAP net loss for the nine months ended September 30, 2025, was $25.4 million, or $1.30 loss per share, significantly improved from a loss of $44.3 million, or $4.17 loss per share, in the same period of 2024[8] - Net loss attributable to common stockholders for the nine months ended September 30, 2025, was $25,409 million, compared to a net loss of $44,306 million in 2024, indicating an improvement of 42.6%[21][22] - Loss per share for the nine months ended September 30, 2025, was $(1.30), an improvement from $(4.17) in the same period of 2024[21][22] Cash and Cash Equivalents - Total cash and cash equivalents as of September 30, 2025, were $1.4 million, down from $2.8 million at the end of 2024[15] - Cash and cash equivalents at the end of Q3 2025 were $1,394, down from $1,509 at the end of Q3 2024[17] Operating Expenses - Total operating expenses for the nine months ended September 30, 2025, were $34,470, a decrease of 38% from $55,604 in 2024[16] - Research and development expenses for Q3 2025 were $2,603, down 28.5% from $3,637 in Q3 2024[16] - Research and development expenses for the nine months ended September 30, 2025, were $7,640 million, down from $10,180 million in 2024, a decrease of 25.5%[21][22] - Selling and marketing expenses for the nine months ended September 30, 2025, were $4,079 million, compared to $6,060 million in 2024, a reduction of 32.8%[21][22] - General and administrative expenses for the nine months ended September 30, 2025, were $6,035 million, down from $6,197 million in 2024, a decrease of 2.6%[21][22] Strategic Focus - The company is focusing on expanding its "connected life" vision to attract family subscribers in the carrier market[2] - Smith Micro aims to strengthen its financial foundation and streamline operations for future growth opportunities[2] - The company is focusing on cost reduction strategies and improving operational efficiency to enhance future profitability[21][22] Impairments and Gains - The company reported a goodwill impairment of $11,052 for the nine months ended September 30, 2025[17] - Goodwill impairment for the nine months ended September 30, 2025, was $11,052 million, significantly lower than the $23,989 million recorded in 2024[21][22] - The company reported a gain on the sale of ViewSpot of $1,287 million in 2025, which was not present in 2024[21][22]