01—Abstract
Summary
Summary of the 10-Q filed September 9, 2025. Cited figures are marked; the original filing is the authoritative source.
Samsara Inc. reported second-quarter fiscal 2026 results for the three months ended August 2, 2025, with revenue of $391.5 milliona, up from $300.2 million a year earlier, and a net loss of $16.8 million compared with $49.6 million in the prior-year quarter.
For the six months, revenue was $758.4 millionb versus $580.9 million, and net loss narrowed to $38.9 million from $105.9 million. Gross profit was $301.0 million for the quarter, and loss from operations narrowed to $26.6 million from $58.2 million. The company attributes revenue growth primarily to new customers and increased subscription purchases by existing customers, with subscription revenue making up $383.9 million of the quarterly total.
Key operating metrics as of August 2, 2025 include annual recurring revenue (ARR) of $1.64 billionc, up from $1.26 billion, and 2,771 customers with more than $100,000 in ARR, up from 2,120. Remaining performance obligations were $3,165.5 million, of which approximately $1,401.8 million is expected to be recognized over the next 12 months. Operating cash flow for the six months was $102.8 million, and free cash flow was $89.9 million, compared with $41.8 million and $31.7 million in the prior-year period.
The company held $1,088.1 milliond in cash, cash equivalents, and short-term and long-term investments, against accumulated deficit of $1,648.9 million. The company's non-GAAP operating income for the quarter was $59.7 million, or 15% of revenue, compared with $17.6 million, or 6%, a year earlier.
Stock-based compensation expense for the six months was $158.2 million, and unrecognized stock-based compensation related to unvested RSUs was approximately $551.6 million. Management states that existing cash and investments are sufficient for at least the next 12 months, while noting it may need additional capital if it generates negative cash flows in future quarters.
02—Key points
Key Highlights
- Revenue rose 30% to $391.5 million for the quarter and 31% to $758.4 million for the six months, driven by new customers and expanded subscriptions.
- Net loss narrowed to $16.8 million for the quarter from $49.6 million, and to $38.9 million for the six months from $105.9 million.
- Annual recurring revenue reached $1,640.1 million, up from $1,263.9 million, and customers over $100,000 in ARR grew to 2,771 from 2,120.
- Remaining performance obligations totaled $3,165.5 million, with approximately $1,401.8 million expected to be recognized over the next 12 months.
- Six-month free cash flow was $89.9 million, with a free cash flow margin of 12%, compared with $31.7 million (5%) a year earlier.
- Gross margin was 77% for the quarter, up from 76%, and non-GAAP operating margin was 15%, up from 6%.
- The company held $1,088.1 million in cash, cash equivalents, and investments, and stated these are sufficient for at least the next 12 months, while its accumulated deficit stood at $1,648.9 million.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q2 FY2026, Samsara lost $0.04.
- Revenue$391.5M100.0%
- Cost of revenue−$90.5M23.1%
- Gross profit$301.0M76.9%
- Operating costs−$327.6M83.7%
- Operating income−$26.6M6.8%
- Interest, other & tax$9.8M2.5%
- Net income−$16.8M4.3%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed September 9, 2025Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $391.48M$300.20M | +30.4% |
| Cost of Revenue | $90.50M$73.36M | +23.4% |
| Gross Profit | $300.98M$226.84M | +32.7% |
| R&D Expenses | $85.61M$76.48M | +11.9% |
| Operating Expenses | $327.60M$285.03M | +14.9% |
| Operating Income | -$26.62M-$58.19M | +54.3% |
| Net Income | -$16.80M-$49.61M | +66.1% |
| EPS (Basic) | $-0.03$-0.09 | +66.7% |
| EPS (Diluted) | $-0.03$-0.09 | +66.7% |
| Shares Outstanding (Basic) | 571.74M553.92M | +3.2% |
| Shares Outstanding (Diluted) | 571.74M553.92M | +3.2% |
05—Questions
Frequently Asked Questions
How did Samsara's revenue and profitability trend in the quarter ended August 2, 2025?
Revenue grew to $391.5 million from $300.2 million, and net loss narrowed to $16.8 million from $49.6 million. Loss from operations improved to $26.6 million from $58.2 million, and non-GAAP operating income rose to $59.7 million from $17.6 million.
What drove the increase in revenue?
The company attributes the 30% quarterly and 31% six-month revenue increases primarily to an increase in new customers and increased purchases of subscriptions, including additional Applications, by existing customers.
Is Samsara generating cash, and does it need more capital?
Operating cash flow was $102.8 million for the six months ended August 2, 2025, versus $41.8 million a year earlier. Management believes existing cash and investments of $1,088.1 million will be sufficient for at least the next 12 months, but states it may require additional capital, particularly if it generates negative cash flows in future quarters.
What is the outlook for customer contracts and future revenue?
Remaining performance obligations were $3,165.5 million as of August 2, 2025, of which approximately $1,401.8 million is expected to be recognized over the next 12 months. Subscription contracts typically have initial terms of three to five years and are generally non-cancelable and non-refundable, subject to limited exceptions.
What changed in how the company counts customers?
In the quarter ended May 3, 2025, Samsara changed its customer definition to an entity, or group of affiliated entities with a shared parent, with ARR greater than $1,000. Previously, separate entities within a larger organization were counted individually, and prior-period customer counts were adjusted to reflect the new definition.
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