Samsara Swings to Profit, Revenue Jumps 29% in Q3

Ticker: IOT · Form: 10-Q · Filed: Dec 9, 2025 · CIK: 1642896

Samsara INC. 10-Q Filing Summary
FieldDetail
CompanySamsara INC. (IOT)
Form Type10-Q
Filed DateDec 9, 2025
Risk Levelmedium
Pages15
Reading Time18 min
Key Dollar Amounts$0.0001
Sentimentbullish

Sentiment: bullish

Topics: IoT, Connected Operations, Software, Profitability, Revenue Growth, Tech Earnings, SaaS

Related Tickers: IOT, VZ, GTBIF

TL;DR

**IOT is finally turning the corner with strong revenue growth and a surprise profit, making it a buy for long-term growth.**

AI Summary

Samsara Inc. (IOT) reported a significant turnaround in its financial performance for the three months ended November 1, 2025, achieving a net income of $7.766 million, a substantial improvement from the net loss of $37.806 million in the prior-year period. Revenue surged by 29.2% to $415.975 million for the quarter, up from $321.981 million. For the nine months ended November 1, 2025, the company still posted a net loss of $31.155 million, though this represents a considerable reduction from the $143.705 million loss in the same period last year. Gross profit for the quarter increased to $319.011 million from $245.954 million, demonstrating improved operational efficiency. Operating expenses rose to $320.732 million from $293.324 million, driven by increases in research and development, sales and marketing, and general and administrative costs. Cash and cash equivalents increased to $275.111 million as of November 1, 2025, from $227.576 million at February 1, 2025, indicating strong liquidity. The company's strategic outlook focuses on expanding its Connected Operations Platform and managing risks associated with international expansion and macroeconomic events.

Why It Matters

Samsara's return to profitability in Q3 2025, with a net income of $7.766 million, signals a critical turning point for investors, demonstrating the company's ability to monetize its Connected Operations Platform effectively. The 29.2% revenue growth to $415.975 million indicates strong market demand and competitive positioning in the IoT sector, potentially attracting more institutional investment. For employees, this financial improvement could lead to increased job security and growth opportunities. Customers benefit from a more stable and innovative partner, while the broader market sees a strengthening player in the rapidly expanding industrial IoT space, intensifying competition with rivals like Verizon Connect and Geotab.

Risk Assessment

Risk Level: medium — While Samsara achieved profitability this quarter, it still reported a net loss of $31.155 million for the nine months ended November 1, 2025. Operating expenses increased across the board, with sales and marketing up to $507.875 million for the nine months, indicating continued significant investment in growth which could pressure future profitability if revenue growth slows.

Analyst Insight

Investors should consider initiating or increasing positions in IOT, as the company's Q3 profitability and robust revenue growth suggest a positive trajectory. Monitor future operating expense growth relative to revenue to ensure sustainable profitability, but the current trend indicates strong execution.

Financial Highlights

revenue
$415.975M
total Assets
$2.314B
net Income
$7.766M
eps
$0.01
gross Margin
76.68%
cash Position
$275.111M
revenue Growth
+29.2%

Revenue Breakdown

SegmentRevenueGrowth
Connected Operations Platform$415.975M+29.2%

Key Numbers

Key Players & Entities

FAQ

What were Samsara Inc.'s key financial results for the quarter ended November 1, 2025?

Samsara Inc. reported a net income of $7.766 million for the three months ended November 1, 2025, a significant improvement from a net loss of $37.806 million in the same period last year. Revenue for the quarter increased by 29.2% to $415.975 million.

How did Samsara's revenue perform in the latest 10-Q filing?

Samsara's revenue for the three months ended November 1, 2025, was $415.975 million, representing a 29.2% increase compared to $321.981 million in the prior-year quarter. For the nine months, revenue reached $1,174.339 million, up from $902.909 million.

Did Samsara Inc. achieve profitability in its recent quarter?

Yes, Samsara Inc. achieved a net income of $7.766 million for the three months ended November 1, 2025. This marks a significant shift from the net loss of $37.806 million reported in the three months ended November 2, 2024.

What is Samsara's cash position as of November 1, 2025?

As of November 1, 2025, Samsara Inc. reported cash and cash equivalents of $275.111 million, an increase from $227.576 million as of February 1, 2025. This indicates a healthy and improving liquidity position.

What were the operating expenses for Samsara Inc. in the last quarter?

Total operating expenses for Samsara Inc. for the three months ended November 1, 2025, were $320.732 million. This includes $86.219 million for research and development, $168.392 million for sales and marketing, and $66.121 million for general and administrative expenses.

How has Samsara's net loss changed over the nine-month period?

For the nine months ended November 1, 2025, Samsara Inc. reported a net loss of $31.155 million. This is a substantial improvement compared to the net loss of $143.705 million reported for the nine months ended November 2, 2024.

What is the significance of Samsara's Connected Operations Platform?

Samsara's Connected Operations Platform is an open platform designed to connect people, devices, and systems in complex operations. It enables customers to develop actionable insights and improve their operations, serving as the core of Samsara's business model and growth strategy.

What are the primary risks Samsara Inc. highlights in its 10-Q filing?

Samsara highlights risks related to future financial performance, ability to develop new products, competition, customer retention, security of its solution, and the effects of macroeconomic events like geopolitical tensions and inflation. The company also notes risks associated with international expansion and managing future growth.

How much cash did Samsara generate from operating activities in the last nine months?

Samsara Inc. generated $166.477 million in net cash from operating activities for the nine months ended November 1, 2025. This is a significant increase from $77.800 million in the same period last year, indicating improved operational cash flow.

What is Samsara's strategy for future growth and profitability?

Samsara's strategy involves continuing to develop new products, features, and integrations for its Connected Operations Platform, attracting and retaining customers, and expanding internationally. The company aims to manage growth while navigating competitive markets and macroeconomic challenges to maintain future profitability.

Risk Factors

Industry Context

Samsara operates in the rapidly growing Internet of Things (IoT) and connected operations market, serving industries like transportation, logistics, construction, and food production. The competitive landscape includes established players offering specialized solutions and broader technology companies entering the space. Key trends include the increasing demand for real-time data analytics, automation, and sustainability solutions.

Regulatory Implications

Samsara must navigate evolving data privacy regulations globally, such as GDPR and CCPA, to ensure compliance and protect customer data. Cybersecurity threats and the potential for data breaches are significant risks that require robust security measures and ongoing vigilance.

What Investors Should Do

  1. Monitor sustained profitability beyond the current quarter.
  2. Evaluate the efficiency of operating expense growth relative to revenue growth.
  3. Assess the execution of international expansion strategies.
  4. Track gross margin trends for continued operational efficiency improvements.

Key Dates

Glossary

Connected Operations Platform
Samsara's integrated suite of hardware and software solutions designed to provide real-time data and insights for various business operations, such as fleet management, safety, and compliance. (This is the core product offering driving Samsara's revenue growth.)
Deferred Revenue
Revenue that has been received by a company but not yet earned. For subscription-based services like Samsara's, this represents payments for services not yet rendered. (A significant portion of Samsara's liabilities ($620.853M current, $133.855M non-current as of Nov 1, 2025) consists of deferred revenue, indicating future revenue streams.)
Connected Device Costs
Costs associated with the manufacturing, deployment, and maintenance of the hardware devices that collect data for the platform. (These costs are capitalized and amortized over time, impacting both cost of revenue and operating expenses.)
Accumulated Deficit
The cumulative net losses of a company since its inception, minus any cumulative net income. It represents the total loss that has not been offset by profits. (Samsara still has a substantial accumulated deficit of ($1.641B) as of November 1, 2025, despite recent profitability.)
Deferred Commissions
Commissions paid to sales personnel that are capitalized and amortized over the expected customer contract period, rather than expensed immediately. (Represents a significant asset ($238.999M as of Nov 1, 2025) reflecting the company's sales efforts and customer acquisition costs.)

Year-Over-Year Comparison

Compared to the prior year's third quarter, Samsara Inc. has demonstrated a significant financial improvement. Revenue grew by 29.2% to $415.975 million, and importantly, the company swung from a net loss of $37.806 million to a net income of $7.766 million. Gross profit also saw a substantial increase, reflecting enhanced operational efficiency. While operating expenses rose, the overall profitability improvement is a key positive development. New risks related to international expansion and ongoing macroeconomic factors are highlighted, alongside continued focus on data security.

Filing Stats: 4,529 words · 18 min read · ~15 pages · Grade level 18.9 · Accepted 2025-12-09 16:12:13

Key Financial Figures

Filing Documents

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 4 Condensed Consolidated Balance Sheets as of November 1, 2025 and February 1, 202 5 4 Condensed Consolidated Statements of Operations and Comprehensive Income ( Loss ) for the Three and Nine Months Ended November 1, 2025 and November 2, 2024 5 Condensed Consolidated Statements of Stockholders' Equity for the Three and Nine Months Ended November 1, 2025 and November 2, 2024 6 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended November 1, 2025 and November 2, 2024 8 Notes to Condensed Consolidated Financial Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 34 Item 4.

Controls and Procedures

Controls and Procedures 35

—OTHER INFORMATION

PART II—OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 36 Item 1A.

Risk Factors

Risk Factors 36 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 36 Item 3. Defaults Upon Senior Securities 36 Item 4. Mine Safety Disclosures 36 Item 5. Other Information 36 Item 6. Exhibits 38

SIGNATURES

SIGNATURES 39 1 Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "goal," "intend," "may," "objective," "ongoing," "plan," "potential," "predict," "project," "seek," "should," "target," "will," "would," or the negative of these terms or other comparable expressions that concern our expectations, strategies, plans, or intentions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about: our future financial performance, including our expectations regarding our revenue, cost of revenue, operating expenses, other key business metrics and non-GAAP financial measures, our ability to determine reserves, and our ability to maintain future profitability; the sufficiency of our cash, cash equivalents, and investments to meet our liquidity needs; our expectations regarding future dividend payments or issuances of additional capital stock; our ability to develop new products, features, integrations, and enhancements for our Connected Operations Platform (our "solution"); our ability to compete with existing and new competitors in existing and new markets and offerings; our ability to attract, retain, and expand our relationships with customers; our and our customers' expectations regarding the benefits of our solution; our ability to maintain the security and availability of our solution and business systems; our expectations regarding the effect

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) SAMSARA INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited) As of November 1, 2025 February 1, 2025 Assets Current assets: Cash and cash equivalents $ 275,111 $ 227,576 Short-term investments 486,725 467,222 Accounts receivable, net 256,676 234,016 Inventories 54,955 38,911 Connected device costs, current 132,037 119,323 Prepaid expenses and other current assets 52,475 58,106 Total current assets 1,257,979 1,145,154 Restricted cash 21,269 18,218 Long-term investments 385,332 282,652 Property and equipment, net 77,894 58,151 Operating lease right-of-use assets 62,821 64,864 Connected device costs, non-current 261,548 242,928 Deferred commissions 238,999 209,341 Other assets 7,852 2,994 Total assets $ 2,313,694 $ 2,024,302 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 19,768 $ 64,017 Accrued expenses and other current liabilities 94,643 74,976 Accrued compensation and benefits 58,307 43,443 Deferred revenue, current 620,853 563,254 Operating lease liabilities, current 12,822 15,656 Total current liabilities 806,393 761,346 Deferred revenue, non-current 133,855 122,516 Operating lease liabilities, non-current 62,815 64,622 Other liabilities 7,276 6,622 Total liabilities 1,010,339 955,106 Commitments and contingencies (Note 9) Stockholders' equity: Preferred stock, $ 0.0001 par value— 400,000,000 shares authorized as of November 1, 2025 and February 1, 2025; zero shares issued and outstanding as of November 1, 2025 and February 1, 2025 — — Class A common stock, $ 0.0001 par value— 4,000,000,000 shares authorized as of November 1, 2025 and February 1, 2025; 358,191,765 and 295,839,286 shares issued and outstanding as of November 1, 2025 and February 1, 2025, respectively 12 12 Class B common stock, $ 0.0001 par value— 600,000,000 shares authorized as of November 1, 2025 and February 1, 2025; 218,812,292 and 269,879,953

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