Symbotic (US:SYM)2026-02-04 21:07Revenue and Profitability - Total revenue for the three months ended December 27, 2025, was $629,985,000, representing a 29% increase from $486,693,000 for the same period in 2024[166] - Systems revenue increased by 27% to $590,292,000 due to additional revenue from the 2025 Walmart Master Automation Agreement and an increase in the number of Systems in Deployment from 44 to 57[168] - Software maintenance and support revenue surged by 97% to $10,885,000, attributed to an increase in Operational Systems under support contracts from 29 to 51[169] - Operation services revenue rose by 68% to $28,808,000, driven by an increase in the number of Operational Systems receiving these services[168] - Gross profit for the three months ended December 27, 2025, was $133,424,000, up from $81,016,000 in the prior year, resulting in a gross margin of 21% compared to 17%[166] - The company reported a net income of $13,358,000 for the three months ended December 27, 2025, compared to a net loss of $16,859,000 for the same period in 2024[166] - Adjusted EBITDA for the three months ended December 27, 2025, was $66.9 million, compared to $17.9 million in the same period of 2024[187] - Adjusted gross profit for the three months ended December 27, 2025, was $147.2 million, up from $86.2 million for the same period in 2024, representing a 70.8% increase[189] - Gross profit margin improved to 21.2% in Q1 2026 from 16.6% in Q1 2025, while adjusted gross profit margin increased to 23.4% from 17.7%[189] Expenses and Charges - Research and development expenses decreased by $0.3 million (1%) to $43.0 million, representing 7% of total revenue, down from 9%[174] - Selling, general, and administrative expenses increased by $20.5 million (34%) to $81.2 million, primarily due to a rise in employee-related costs[176] - Restructuring charges amounted to $2.7 million, a 100% increase compared to no charges in the prior year, related to workforce reduction[178] - Other income, net decreased by $5.4 million (41%) to $7.8 million, primarily due to lower interest earned despite an increase in cash balance[179] - Income tax expense increased by $0.5 million (310%) to $0.15 million, attributed to international income taxes[180] Cash Flow and Liquidity - Free cash flow for the three months ended December 27, 2025, was $189.5 million, slightly down from $197.7 million in the same period of 2024[190] - Net cash provided by operating activities was $191.5 million for Q1 2026, compared to $205.0 million in Q1 2025, primarily due to changes in working capital[193][194] - Cash and cash equivalents as of December 27, 2025, totaled $1,819.1 million, indicating strong liquidity[201] - The company incurred $40.6 million in net cash used in investing activities during Q1 2026, primarily for strategic investments[191] - Net proceeds from financing activities in Q1 2026 were $424.4 million, resulting from the issuance of Class A common stock[198] - Vendor commitments total $781.3 million, with $710.9 million due within the next year[202] - The company expects current cash and cash equivalents, along with forecasted cash flows, to meet foreseeable cash needs for at least the next 12 months[201] Intellectual Property and Business Developments - The backlog as of December 27, 2025, was approximately $22.3 billion, primarily from agreements with Walmart and Exol[147] - The company has approximately 1,100 issued and/or pending patents protecting its intellectual property related to supply chain automation technology[148] - The acquisition of the Advanced Systems and Robotics business from Walmart in January 2025 added a new product category for automated fulfillment at retail stores[150] Adjustments and Policy Changes - Adjusted gross profit margin is a key indicator of profitability, with adjustments made for depreciation, stock-based compensation, and restructuring charges[188] - A change in stock-based compensation policy was implemented, transitioning from accelerated to straight-line attribution for service-based RSUs[204]