Smith Micro Software (NASDAQ: SMSI) sharply cuts Q2 2026 loss on higher margins
Rhea-AI Filing Summary
Smith Micro Software reported second quarter 2026 revenue of $4.3 million, slightly below $4.4 million a year earlier, while significantly improving profitability metrics. Gross profit rose to $3.5 million with gross margin expanding to 81.3% from 73.5%.
GAAP net loss attributable to common stockholders narrowed to $2.7 million (loss of $0.52 per share) from $15.1 million ($3.88 per share), and non-GAAP net loss improved to $1.0 million ($0.19 per share) from $2.8 million ($0.71 per share). For the first half of 2026, revenue was $8.6 million versus $9.0 million, with GAAP net loss reduced to $6.6 million from $20.2 million and non-GAAP net loss to $2.5 million from $5.6 million. Cash and cash equivalents were $2.8 million at June 30, 2026, after $5.9 million of net cash provided by financing activities and $4.6 million of net cash used in operations in the first half. Management highlights growing demand, new customer launches and an expanded SafePath® platform, while also disclosing risks including concentration with a few large customers, ongoing losses, the need to raise additional capital, and the ability to remain a going concern.
Positive
- GAAP net loss sharply reduced: Q2 2026 GAAP net loss attributable to common stockholders improved to $2.7 million from $15.1 million year over year, and first-half loss fell to $6.6 million from $20.2 million.
- Non-GAAP profitability trends improved: Q2 2026 non-GAAP net loss narrowed to $1.0 million from $2.8 million, and first-half non-GAAP net loss decreased to $2.5 million from $5.6 million.
- Meaningful gross margin expansion: Q2 2026 gross margin increased to 81.3% from 73.5%, and first-half 2026 gross margin rose to 79.9% from 73.1%, indicating a more profitable revenue mix or lower delivery costs.
- Liquidity strengthened via financing: Cash rose to $2.8 million at June 30, 2026 from $1.5 million at year-end 2025, supported by $1.5 million of common stock and warrant proceeds and $4.0 million from convertible notes and related offerings.
Negative
- Business remains unprofitable with cash burn: First-half 2026 GAAP net loss was $6.6 million and net cash used in operating activities was $4.6 million, indicating ongoing operating cash outflows.
- Revenue declining: Q2 2026 revenue was $4.3 million versus $4.4 million a year earlier, and first-half 2026 revenue of $8.6 million was below $9.0 million in the prior-year period.
- Going-concern and capital-raising risks: The company lists its ability to remain a going concern, raise additional capital, and achieve profitability among important risk factors, signaling continued financial uncertainty.
- Increased leverage and obligations: Non-current convertible notes payable of $2.0 million and expanded operating lease liabilities add to the capital structure while the business is still generating losses.
Filing Explained
Convertible-note terms are not disclosed, so this release does not establish any future share issuance or dilution from the financing.
The company reports second-quarter results and states that its one-for-five reverse stock split became effective on
The release reports 5,589,880 shares issued and outstanding at
It also reports proceeds from convertible notes and convertible notes payable at June 30; because conversion terms and resulting shares are not disclosed here, the amount or timing of any conversion-related dilution is not established.
The convertible-notes line item would need note terms or a later filing to establish whether, and how many, shares could be issued.
8-K Event Classification
Key Figures
Key Terms
non-GAAP net loss financial
goodwill impairment financial
deemed dividend financial
warrant liabilities financial
reverse stock split financial
going concern financial
Earnings Snapshot
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
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(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
(Address of Principal Executive Offices) | (Zip Code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
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Item 2.02 | Results of Operations and Financial Condition |
Item 7.01 | Regulation FD |
Item 9.01. | Financial Statements and Exhibits. |
Exhibit | Description |
99.1 | Press Release issued on August 13, 2026 |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Smith Micro Software, Inc. | |||
Date: August 13, 2026 | By: | /s/ Bethany M. Braund | |
Bethany M. Braund | |||
Vice President, Chief Financial Officer and Treasurer | |||
Exhibit 99.1
IR INQUIRIES:
Charles Messman
Investor Relations
412-837-5300
IR@smithmicro.com
Smith Micro Reports Second Quarter 2026 Financial Results
PITTSBURGH, PA, August 13, 2026 – Smith Micro Software, Inc. (Nasdaq: SMSI) (“Smith Micro” or the “Company”) today reported financial results for its second quarter ended June 30, 2026.
“I am pleased with our second quarter, which marked an important step forward for Smith Micro as we continued to execute on our strategy and delivered our second consecutive quarter of sequential revenue growth,” said Tim Huffmyer, President and Chief Executive Officer of Smith Micro. “We are continuing to see strong demand for our solutions and are encouraged by the momentum we are seeing across the business. We have two new customers ready to launch in the near term and multiple contracts under negotiation that we expect will drive additional revenue. We also continue to broaden the capabilities of our SafePath® platform, creating new opportunities for growth with both current and prospective customers.
“As we enter the second half of 2026, we believe we are better positioned than we have been in years. The introduction of SafePath Connect™ and our new SDK and API deployment options has increased the overall addressable market, opening new channels for growth and enabling us to reach customers beyond traditional carrier deployments. Combined with the strongest pipeline activity we have seen in years, we are confident in our direction and excited about the opportunities ahead.”
Second Quarter 2026 Financial Results
Smith Micro reported revenue of $4.3 million for the quarter ended June 30, 2026, compared to $4.4 million reported in the quarter ended June 30, 2025.
Gross profit for the quarter ended June 30, 2026 was $3.5 million, compared to $3.2 million for the quarter ended June 30, 2025.
Gross profit as a percentage of revenue was 81.3% for the quarter ended June 30, 2026, compared to 73.5% for the quarter ended June 30, 2025.
GAAP net loss attributable to common stockholders for the quarter ended June 30, 2026 was $2.7 million, or $0.52 loss per share, compared to GAAP net loss attributable to common stockholders of $15.1 million, or $3.88 loss per share, for the quarter ended June 30, 2025.
Non-GAAP net loss attributable to common stockholders for the quarter ended June 30, 2026 was $1.0 million, or $0.19 loss per share, compared to non-GAAP net loss attributable to common stockholders of $2.8 million, or $0.71 loss per share, for the quarter ended June 30, 2025. Non-GAAP net loss attributable to common stockholders excludes the items noted below under "Non-GAAP Measures."
All share and per share amounts for common stock herein have been retroactively adjusted for all periods presented to give effect to the one-for-five reverse stock split of our common stock, which became effective June 4, 2026 at 11:59 pm Eastern time.
| Smith Micro Software Second Quarter 2026 Financial Results | Page 2 |
Second Quarter Year-to-Date 2026 Financial Results
Smith Micro reported revenue of $8.6 million for the six months ended June 30, 2026, compared to $9.0 million reported in the six months ended June 30, 2025.
Gross profit for the six months ended June 30, 2026 was $6.8 million compared to $6.6 million reported for the same period in 2025.
Gross profit as a percentage of revenue was 79.9% for the six months ended June 30, 2026 compared to 73.1% for the six months ended June 30, 2025.
GAAP net loss attributable to common stockholders for the six months ended June 30, 2026 was $6.6 million, or $1.28 loss per share, compared to GAAP net loss attributable to common stockholders of $20.2 million, or $5.38 loss per share, for the six months ended June 30, 2025.
Non-GAAP net loss attributable to common stockholders for the six months ended June 30, 2026 was $2.5 million, or $0.48 loss per share, compared to non-GAAP net loss attributable to common stockholders of $5.6 million, or $1.49 loss per share for the six months ended June 30, 2025. Non-GAAP net loss attributable to common stockholders excludes the items noted below under "Non-GAAP Measures."
Total cash and cash equivalents as of June 30, 2026 were $2.8 million.
Non-GAAP Measures
To supplement our financial information presented in accordance with GAAP, the Company considers, and has included in this press release, the following non-GAAP financial measures and a non-GAAP reconciliation from the equivalent GAAP metric: non-GAAP net loss, non-GAAP gross profit, and non-GAAP basic and diluted loss per share in the presentation of financial results in this press release. Management believes these non-GAAP presentations may be more meaningful in analyzing the Company's income generation and has therefore excluded the following items from GAAP earnings calculations: stock compensation, intangibles amortization, depreciation, fair value adjustments, and other items, which includes amortization of debt discount and financing issuance costs, executive transition costs, costs associated with corporate actions, deemed dividends, and costs associated with shareholder-approved reverse stock split. Additionally, since the Company currently has federal and state net operating loss carryforwards that can be utilized to reduce future cash payments for income taxes, these non-GAAP adjustments have not been tax effected, and the resulting income tax expense reflects actual taxes paid or accrued during each period. This presentation may be considered more indicative of the Company's ongoing operational performance. The tables below labeled "Reconciliation of GAAP to Non-GAAP Results" present the differences between non-GAAP net loss and net loss on an absolute and per-share basis. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and the non-GAAP financial measures as reported by Smith Micro may not be comparable to similarly titled amounts reported by other companies.
Investor Conference Call
Smith Micro will hold an investor conference call today, August 13, 2026, at 4:30 p.m. ET, to discuss the Company’s second quarter 2026 financial results. To access the call, dial 1-844-701-1164; international participants can call 1-412-317-5492. A passcode is not required to join the call; ask the operator to be placed into the Smith Micro conference. Participants are asked to call the assigned number approximately 10 minutes before the conference call begins. An internet webcast is available at https://event.choruscall.com/mediaframe/webcast.html?webcastid=5GDGfTWs. In addition, the conference call will be available on the Smith Micro website in the Investor Relations section.
| Smith Micro Software Second Quarter 2026 Financial Results | Page 3 |
About Smith Micro Software, Inc.
Smith Micro develops software to simplify and enhance the mobile experience, providing solutions to some of the leading wireless service providers around the world. From enabling the family digital lifestyle to providing powerful voice messaging capabilities, our solutions enrich today’s connected lifestyles while creating new opportunities to engage consumers via smartphones and consumer IoT devices. For more information, visit www.smithmicro.com.
Smith Micro and the Smith Micro logo are registered trademarks or trademarks of Smith Micro Software, Inc. All other trademarks and product names are the property of their respective owners.
Forward-Looking Statements
Certain statements in this press release are, and certain statements on the related conference call may be, forward-looking statements regarding future events or results within the meaning of the Private Securities Litigation Reform Act, including statements related to our financial prospects, goals and other projections of our outlook or performance our cost reduction plans and other future business plans, and statements using such words as “expect,” “anticipate,” “believe,” “plan,” “intend,” “could,” “will” and other similar expressions. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Among the important factors that could cause or contribute to such differences are customer concentration, given that the majority of our sales currently depend on a few large customer relationships; our ability to establish and maintain strategic relationships with our customers and mobile device manufacturers, their ability to attract customers, and their willingness to promote our products; our ability and/or customers’ ability to distribute our mobile software applications to their end users through third party mobile software application stores, which we do not control; our dependency upon effective operation with operating systems, devices, networks and standards that we do not control and on our continued relationships with mobile operating system providers, device manufacturers and mobile software application stores; our ability to hire and retain key personnel; the possibility of security and privacy breaches in our systems and in the third-party software and/or systems that we use, damaging client relations and inhibiting our ability to grow; interruptions or delays in the services we provide from our data center and cloud hosting facilities; the existence of undetected software defects in our products and our failure to resolve detected defects in a timely manner; our ability to remain a going concern; our ability to raise additional capital and the risk of such capital not being available to us at commercially reasonable terms or at all; our ability to be profitable; current and potential future negative impacts from cost reduction efforts we have taken and may in the future undertake; unanticipated delays or obstacles in our development and release cycles; the degree to which competing business needs or resource constraints may affect our allocation of resources to planned projects; changes in our operating income due to shifts in our sales mix and variability in our operating expenses; adverse impact to our results of operations if we fail to realize the full value of our intangible assets; our current client concentration within the vertical wireless carrier market, and the potential impact to our business resulting from changes within this vertical market, or failure to penetrate new markets; rapid technological evolution and resulting changes in demand for our products from our key customers and their end users; intense competition in our industry and the core vertical markets in which we operate, and our ability to successfully compete; the risks inherent with international operations; the impact of evolving information security and data privacy laws on our business and industry; the impact of governmental regulations on our business and industry; our ability to protect our intellectual property and our ability to operate our business without infringing on the rights of others; and the risk of being delisted from Nasdaq if we continue to fail to meet any of its applicable listing requirements. These and other factors discussed in our filings with the Securities and Exchange Commission, including our filings on Forms 10-K and 10-Q, could cause actual results to differ materially from those expressed or implied in any forward-looking statements. The forward-looking statements contained in this release are made on the basis of the views and assumptions of management, and we do not undertake any obligation to update these statements to reflect events or circumstances occurring after the date of this release.
| Smith Micro Software Second Quarter 2026 Financial Results | Page 4 |
Smith Micro Software, Inc.
Consolidated Balance Sheets
(in thousands except share and par value data)
|
| June 30, |
|
| December 31, |
|
||
|
| 2026 |
|
| 2025 |
|
||
|
| (unaudited) |
|
| (audited) |
|
||
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
| $ | 2,795 |
|
| $ | 1,494 |
|
Accounts receivable |
|
| 2,617 |
|
|
| 1,817 |
|
Prepaid expenses and other current assets |
|
| 1,388 |
|
|
| 1,218 |
|
Total current assets |
|
| 6,800 |
|
|
| 4,529 |
|
Equipment and improvements, net |
|
| 160 |
|
|
| 331 |
|
Right-of-use assets |
|
| 2,312 |
|
|
| 1,119 |
|
Other assets |
|
| 484 |
|
|
| 500 |
|
Intangible assets, net |
|
| 16,137 |
|
|
| 18,492 |
|
Total assets |
| $ | 25,893 |
|
| $ | 24,971 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
| $ | 1,830 |
|
| $ | 1,937 |
|
Accrued payroll and benefits |
|
| 1,463 |
|
|
| 1,488 |
|
Current operating lease liabilities |
|
| 663 |
|
|
| 914 |
|
Other current liabilities |
|
| 748 |
|
|
| 773 |
|
Notes payable, net of discount |
|
| — |
|
|
| 1,007 |
|
Total current liabilities |
|
| 4,704 |
|
|
| 6,119 |
|
Non-current liabilities: |
|
|
|
|
|
|
|
|
Warrant liabilities |
|
| 54 |
|
|
| 45 |
|
Convertible notes payable |
|
| 1,996 |
|
|
| — |
|
Operating lease liabilities |
|
| 1,805 |
|
|
| 417 |
|
Total non-current liabilities |
|
| 3,855 |
|
|
| 462 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
Common stock, par value $0.001 per share; 100,000,000 shares authorized; 5,589,880 and 5,159,618 shares issued and outstanding at 2026 and 2025, respectively |
|
| 6 |
|
|
| 5 |
|
Additional paid-in capital |
|
| 408,703 |
|
|
| 403,128 |
|
Accumulated comprehensive deficit |
|
| (391,375 | ) |
|
| (384,743 | ) |
Total stockholders’ equity |
|
| 17,334 |
|
|
| 18,390 |
|
Total liabilities and stockholders' equity |
| $ | 25,893 |
|
| $ | 24,971 |
|
| Smith Micro Software Second Quarter 2026 Financial Results | Page 5 |
Smith Micro Software, Inc.
Consolidated Statements of Operations
(in thousands except share data)
|
| For the Three Months Ended |
|
| For the Six Months Ended |
|
||||||||||
|
| June 30, |
|
| June 30, |
|
||||||||||
|
| 2026 |
|
| 2025 |
|
| 2026 |
|
| 2025 |
|
||||
|
| (unaudited) |
|
| (unaudited) |
|
| (unaudited) |
|
| (unaudited) |
|
||||
Revenues |
| $ | 4,341 |
|
| $ | 4,420 |
|
| $ | 8,562 |
|
| $ | 9,041 |
|
Cost of revenues |
|
| 811 |
|
|
| 1,171 |
|
|
| 1,723 |
|
|
| 2,429 |
|
Gross profit |
|
| 3,530 |
|
|
| 3,249 |
|
|
| 6,839 |
|
|
| 6,612 |
|
Operating expenses: |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
Selling and marketing |
|
| 1,234 |
|
|
| 1,665 |
|
|
| 2,710 |
|
|
| 3,309 |
|
Research and development |
|
| 1,369 |
|
|
| 2,752 |
|
|
| 3,217 |
|
|
| 5,609 |
|
General and administrative |
|
| 1,999 |
|
|
| 2,671 |
|
|
| 4,111 |
|
|
| 5,395 |
|
Depreciation and amortization |
|
| 1,297 |
|
|
| 1,349 |
|
|
| 2,544 |
|
|
| 2,698 |
|
Gain on sale of ViewSpot, net |
|
| — |
|
|
| (1,287 | ) |
|
| — |
|
|
| (1,287 | ) |
Goodwill impairment |
|
| — |
|
|
| 11,052 |
|
|
| — |
|
|
| 11,052 |
|
Total operating expenses |
|
| 5,899 |
|
|
| 18,202 |
|
|
| 12,582 |
|
|
| 26,776 |
|
Operating loss |
|
| (2,369 | ) |
|
| (14,953 | ) |
|
| (5,743 | ) |
|
| (20,164 | ) |
Other (expense) income: |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
Change in fair value of warrant liabilities |
|
| (13 | ) |
|
| (20 | ) |
|
| (9 | ) |
|
| 103 |
|
Interest expense, net |
|
| (221 | ) |
|
| (22 | ) |
|
| (747 | ) |
|
| (47 | ) |
Other expense, net |
|
| (46 | ) |
|
| (67 | ) |
|
| (47 | ) |
|
| (131 | ) |
Loss before provision for income tax |
|
| (2,649 | ) |
|
| (15,062 | ) |
|
| (6,546 | ) |
|
| (20,239 | ) |
Provision for income tax expense |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 1 |
|
Net loss |
| $ | (2,649 | ) |
| $ | (15,062 | ) |
| $ | (6,546 | ) |
| $ | (20,240 | ) |
Deemed dividend |
|
| (86 | ) |
|
| — |
|
|
| (86 | ) |
|
| — |
|
Net loss attributable to common stockholders |
| $ | (2,735 | ) |
| $ | (15,062 | ) |
| $ | (6,632 | ) |
| $ | (20,240 | ) |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
Net loss per share attributable to common stockholders – basic and diluted |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
Basic and diluted |
| $ | (0.52 | ) |
| $ | (3.88 | ) |
| $ | (1.28 | ) |
| $ | (5.38 | ) |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
Weighted average shares outstanding: |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
Basic and diluted |
|
| 5,212 |
|
|
| 3,883 |
|
|
| 5,175 |
|
|
| 3,764 |
|
| Smith Micro Software Second Quarter 2026 Financial Results | Page 6 |
Smith Micro Software, Inc.
Consolidated Statements of Cash Flows
(in thousands)
|
| For the Six Months Ended |
|
|||||
|
| June 30, |
|
|||||
|
| 2026 |
|
| 2025 |
|
||
|
| (unaudited) |
|
| (unaudited) |
|
||
Operating activities: |
|
|
|
|
|
|
|
|
Net loss |
| $ | (6,546 | ) |
| $ | (20,240 | ) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
| 2,544 |
|
|
| 2,698 |
|
Goodwill impairment |
|
| — |
|
|
| 11,052 |
|
Non-cash lease expense |
|
| (56 | ) |
|
| 110 |
|
Change in fair value of warrant liabilities |
|
| 9 |
|
|
| (103 | ) |
Amortization of debt discount and financing issuance costs |
|
| 526 |
|
|
| — |
|
Provision for credit losses |
|
| — |
|
|
| 103 |
|
Stock based compensation |
|
| 757 |
|
|
| 2,183 |
|
Gain on sale of assets, net |
|
| 6 |
|
|
| — |
|
Gain on sale of ViewSpot, net |
|
| — |
|
|
| (1,287) |
|
Changes in operating accounts: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
| (800 | ) |
|
| 3,051 |
|
Prepaid expenses and other assets |
|
| (155 | ) |
|
| (128) |
|
Accounts payable, accrued, and other liabilities |
|
| (919 | ) |
|
| (309 | ) |
Net cash used in operating activities |
|
| (4,634 | ) |
|
| (2,870 | ) |
Investing activities: |
|
|
|
|
|
|
|
|
Capital expenditures, net |
|
| (72 | ) |
|
| (31 | ) |
Proceeds from sale of ViewSpot, net |
|
| — |
|
|
| 987 |
|
Proceeds from sale of equipment, net |
|
| 49 |
|
|
| — |
|
Net cash (used in) provided by investing activities |
|
| (23 | ) |
|
| 956 |
|
Financing activities: |
|
|
|
|
|
|
|
|
Proceeds from Common Stock and Warrant Offering |
|
| 1,546 |
|
|
| — |
|
Proceeds from convertible notes, notes payable and warrants offerings |
|
| 4,000 |
|
|
| — |
|
Proceeds from financing arrangements |
|
| 800 |
|
|
| 933 |
|
Repayments of financing arrangements |
|
| (388 | ) |
|
| (428 | ) |
Other financing activities |
|
| — |
|
|
| 2 |
|
Net cash provided by financing activities |
|
| 5,958 |
|
|
| 507 |
|
Net increase (decrease) in cash and cash equivalents |
|
| 1,301 |
|
|
| (1,407 | ) |
Cash and cash equivalents, beginning of period |
|
| 1,494 |
|
|
| 2,808 |
|
Cash and cash equivalents, end of period |
| $ | 2,795 |
|
| $ | 1,401 |
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of non-cash financing activities: |
|
|
|
|
|
|
|
|
Issuance of convertible notes in settlement and prepayment of notes payable |
| $ | 1,889 |
|
|
| — |
|
Deemed Dividend |
| $ | 86 |
|
|
| — |
|
| Smith Micro Software Second Quarter 2026 Financial Results | Page 7 |
Smith Micro Software, Inc.
Reconciliation of GAAP to Non-GAAP Results
(in thousands, except per share data) - unaudited
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|
| |
Three Months Ended June 30, 2026 |
| GAAP |
|
| Stock Compensation |
|
| Intangibles Amortization |
|
| Depreciation |
|
| Fair Value Adjustments |
|
| Goodwill Impairment |
|
| Other¹ |
|
| Non-GAAP |
|
||||||||
Gross profit |
| $ | 3,530 |
|
| $ | — |
|
| $ | — |
|
| $ | — |
|
| $ | — |
|
| $ | — |
|
| $ | — |
|
| $ | 3,530 |
|
Selling and marketing |
|
| 1,234 |
|
|
| (56 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 1,178 |
|
Research and development |
|
| 1,369 |
|
|
| (34 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 1,335 |
|
General and administrative |
|
| 1,999 |
|
|
| (81 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (84 | ) |
|
| 1,834 |
|
Depreciation and amortization |
|
| 1,297 |
|
|
| — |
|
|
| (1,177 | ) |
|
| (120 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Total operating expenses |
| $ | 5,899 |
|
| $ | (171 | ) |
| $ | (1,177 | ) |
| $ | (120 | ) |
| $ | — |
|
| $ | — |
|
| $ | (84 | ) |
| $ | 4,347 |
|
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
(Loss) income before provision for income taxes |
| $ | (2,649 | ) |
| $ | 171 |
|
| $ | 1,177 |
|
| $ | 120 |
|
| $ | 13 |
|
| $ | — |
|
| $ | 84 |
|
| $ | (1,084 | ) |
Net loss attributable to common stockholders |
| $ | (2,735 | ) |
| $ | 171 |
|
| $ | 1,177 |
|
| $ | 120 |
|
| $ | 13 |
|
| $ | — |
|
| $ | 265 |
|
| $ | (989 | ) |
(Loss) earnings per share: basic and diluted |
| $ | (0.52 | ) |
| $ | 0.03 |
|
| $ | 0.23 |
|
| $ | 0.02 |
|
| $ | — |
|
| $ | — |
|
| $ | 0.05 |
|
| $ | (0.19 | ) |
Note: (Loss) earnings per share: basic and diluted - may be impacted by rounding to allow rows to calculate.
1Other includes approximately $84 of costs associated with shareholder-approved reverse stock split, deemed dividends of $86 and amortization of debt discount and financing issuance costs of approximately $95.
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
Three Months Ended June 30, 2025 |
| GAAP |
|
| Stock Compensation |
|
| Intangibles Amortization |
|
| Depreciation |
|
| Fair Value Adjustments |
|
| Goodwill Impairment |
|
| Other¹ |
|
| Non-GAAP |
|
||||||||
Gross profit |
| $ | 3,249 |
|
| $ | — |
|
| $ | — |
|
| $ | — |
|
| $ | — |
|
| $ | — |
|
| $ | — |
|
| $ | 3,249 |
|
Selling and marketing |
|
| 1,665 |
|
|
| (263 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 1,402 |
|
Research and development |
|
| 2,752 |
|
|
| (204 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 2,548 |
|
General and administrative |
|
| 2,671 |
|
|
| (629 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (78 | ) |
|
| 1,964 |
|
Depreciation and amortization |
|
| 1,349 |
|
|
| — |
|
|
| (1,276 | ) |
|
| (73 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Gain on sale of ViewSpot, net |
|
| (1,287 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 1,287 |
|
|
| — |
|
Goodwill impairment |
|
| 11,052 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (11,052 | ) |
|
| — |
|
|
| — |
|
Total operating expenses |
| $ | 18,202 |
|
| $ | (1,096 | ) |
| $ | (1,276 | ) |
| $ | (73 | ) |
| $ | — |
|
| $ | (11,052 | ) |
| $ | 1,209 |
|
| $ | 5,914 |
|
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
(Loss) income before provision for income taxes |
| $ | (15,062 | ) |
| $ | 1,096 |
|
| $ | 1,276 |
|
| $ | 73 |
|
| $ | 20 |
|
| $ | 11,052 |
|
| $ | (1,209 | ) |
| $ | (2,754 | ) |
Net loss attributable to common stockholders |
| $ | (15,062 | ) |
| $ | 1,096 |
|
| $ | 1,276 |
|
| $ | 73 |
|
| $ | 20 |
|
| $ | 11,052 |
|
| $ | (1,209 | ) |
| $ | (2,754 | ) |
(Loss) earnings per share: basic and diluted |
| $ | (3.88 | ) |
| $ | 0.28 |
|
| $ | 0.33 |
|
| $ | 0.02 |
|
| $ | 0.01 |
|
| $ | 2.85 |
|
| $ | (0.31 | ) |
| $ | (0.71 | ) |
Note: (Loss) earnings per share: basic and diluted - may be impacted by rounding to allow rows to calculate.
1Other includes costs associated with executive transition of approximately $78, offset by gain from sale of ViewSpot of $1,287.
| Smith Micro Software Second Quarter 2026 Financial Results | Page 8 |
Smith Micro Software, Inc.
Reconciliation of GAAP to Non-GAAP Results
(in thousands, except per share data) - unaudited
Six Months Ended |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
June 30, 2026 |
| GAAP |
|
| Stock Compensation |
|
| Intangibles Amortization |
|
| Depreciation |
|
| Fair Value Adjustments |
|
| Goodwill Impairment |
|
| Other¹ |
|
| Non-GAAP |
|
||||||||
Gross profit |
| $ | 6,839 |
|
| $ | — |
|
| $ | — |
|
| $ | — |
|
| $ | — |
|
| $ | — |
|
| $ | — |
|
| $ | 6,839 |
|
Selling and marketing |
|
| 2,710 |
|
|
| (288 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (82 | ) |
|
| 2,340 |
|
Research and development |
|
| 3,217 |
|
|
| (115 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 3,102 |
|
General and administrative |
|
| 4,111 |
|
|
| (354 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (129 | ) |
|
| 3,628 |
|
Depreciation and amortization |
|
| 2,544 |
|
|
| — |
|
|
| (2,355 | ) |
|
| (189 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Total operating expenses |
| $ | 12,582 |
|
| $ | (757 | ) |
| $ | (2,355 | ) |
| $ | (189 | ) |
| $ | — |
|
| $ | — |
|
| $ | (211 | ) |
| $ | 9,070 |
|
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
(Loss) income before provision for income taxes |
| $ | (6,546 | ) |
| $ | 757 |
|
| $ | 2,355 |
|
| $ | 189 |
|
| $ | 9 |
|
| $ | — |
|
| $ | 737 |
|
| $ | (2,499 | ) |
Net loss attributable to common stockholders |
| $ | (6,632 | ) |
| $ | 757 |
|
| $ | 2,355 |
|
| $ | 189 |
|
| $ | 9 |
|
| $ | — |
|
| $ | 823 |
|
| $ | (2,499 | ) |
(Loss) earnings per share: basic and diluted |
| $ | (1.28 | ) |
| $ | 0.15 |
|
| $ | 0.46 |
|
| $ | 0.04 |
|
| $ | — |
|
| $ | — |
|
| $ | 0.16 |
|
| $ | (0.48 | ) |
Note: (Loss) earnings per share: basic and diluted - may be impacted by rounding to allow rows to calculate.
1Other includes personnel and reorganization costs of $127, approximately $84 of costs associated with shareholder-approved reverse stock split, deemed dividends of $86 and amortization of debt discount and financing issuance costs of approximately $526.
Six Months Ended |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
June 30, 2025 |
| GAAP |
|
| Stock Compensation |
|
| Intangibles Amortization |
|
| Depreciation |
|
| Fair Value Adjustments |
|
| Goodwill Impairment |
|
| Other¹ |
|
| Non-GAAP |
|
||||||||
Gross profit |
| $ | 6,612 |
|
| $ | — |
|
| $ | — |
|
| $ | 1 |
|
| $ | — |
|
| $ | — |
|
| $ | — |
|
| $ | 6,613 |
|
Selling and marketing |
|
| 3,309 |
|
|
| (498 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 2,811 |
|
Research and development |
|
| 5,609 |
|
|
| (418 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 5,191 |
|
General and administrative |
|
| 5,395 |
|
|
| (1,267 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (78 | ) |
|
| 4,050 |
|
Depreciation and amortization |
|
| 2,698 |
|
|
| — |
|
|
| (2,552 | ) |
|
| (146 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Gain on sale of ViewSpot, net |
|
| (1,287 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 1,287 |
|
|
| — |
|
Goodwill impairment |
|
| 11,052 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (11,052 | ) |
|
| — |
|
|
| — |
|
Total operating expenses |
| $ | 26,776 |
|
| $ | (2,183 | ) |
| $ | (2,552 | ) |
| $ | (146 | ) |
| $ | — |
|
| $ | (11,052 | ) |
| $ | 1,209 |
|
| $ | 12,052 |
|
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
(Loss) income before provision for income taxes |
| $ | (20,239 | ) |
| $ | 2,183 |
|
| $ | 2,552 |
|
| $ | 146 |
|
| $ | (103 | ) |
| $ | 11,052 |
|
| $ | (1,209 | ) |
| $ | (5,618 | ) |
Net loss attributable to common stockholders |
| $ | (20,240 | ) |
| $ | 2,183 |
|
| $ | 2,552 |
|
| $ | 146 |
|
| $ | (103 | ) |
| $ | 11,052 |
|
| $ | (1,209 | ) |
| $ | (5,619 | ) |
(Loss) earnings per share: basic and diluted |
| $ | (5.38 | ) |
| $ | 0.58 |
|
| $ | 0.68 |
|
| $ | 0.04 |
|
| $ | (0.03 | ) |
| $ | 2.94 |
|
| $ | (0.32 | ) |
| $ | (1.49 | ) |
Note: (Loss) earnings per share: basic and diluted - may be impacted by rounding to allow rows to calculate.
1Other includes costs associated with executive transition of approximately $78, offset by gain from sale of ViewSpot of $1,287.