Symbotic Gets Big Earnings Lift: Is the Stock Investable Again?

Core Viewpoint - Symbotic has shown significant improvement in its business metrics, leading to a notable rise in its stock price following its latest earnings report, despite previous accounting issues and a mixed outlook for future sales growth [1][3][10]. Financial Performance - In fiscal Q2 2025, Symbotic reported a sales growth of 40%, surpassing Wall Street's expectations of approximately 33% [3]. - The company reduced its net loss by around 61% to $21 million, aligning with market expectations [3]. - Adjusted EBITDA rose nearly four times from $9 million to $35 million, indicating strong operational performance [3]. Sales Forecast and Backlog - For fiscal Q3, Symbotic expects midpoint sales of $530 million, which is about $35 million below analyst expectations [4]. - The company has a substantial backlog of $22.7 billion, nearly 11 times its revenue generated over the past 12 months, highlighting strong demand for its products [6][11]. Key Metrics and Operational Efficiency - Symbotic achieved its highest adjusted gross margin ever at over 22%, reflecting improved cost control [5]. - The company set records for system deployments, starting 10 new installations and completing 8, which is double its previous record [7]. - Installation speed improved significantly, with the time from installation to customer acceptance being 30% shorter than historical averages, aiding in faster revenue recognition [8]. Market Sentiment and Trust - There has been a noticeable absence of discussions regarding past accounting issues in recent earnings calls, suggesting a potential recovery in investor trust [10]. - The demand for Symbotic's products is evident from its backlog, and the faster deployment speed is a positive indicator for future growth [11].