01—Abstract
Summary
Summary of the 10-K filed December 4, 2024. Cited figures are marked; the original filing is the authoritative source.
Symbotic Inc. (Nasdaq: SYM) reported net revenue of $1.79 billiona for the fiscal year ended September 28, 2024, up from $1.18 billion in fiscal 2023, driven by 44 Systems in Deployment versus 35 a year earlier, largely from the Walmart Master Automation Agreement.
Gross profit rose to $245.7 millionb from $189.7 million, but the company still posted a net loss of $84.7 million, narrowed from $207.9 million the prior year. Adjusted EBITDA was $61.7 million, compared with a loss of $17.6 million in fiscal 2023. Backlog stood at approximately $22.4 billion as of September 28, 2024, of which Walmart and GreenBox comprise the vast majority.
The filing discloses material weaknesses in internal control over financial reporting. Management concluded that controls over the timing of cost of revenue recognition and over revenue on non-billable cost overruns were ineffective, and the auditor, Grant Thornton LLP, issued an adverse opinion on internal control. The company restated its unaudited quarterly financial statements for the first three quarters of fiscal 2024, and several securities class actions and shareholder derivative suits have been filed.
Operating cash flow was negative $58.1 millionc and free cash flow was negative $102.5 million, while cash and cash equivalents were $727.3 million at year end. The company also disclosed a $300.0 million-plus tax receivable agreement obligation tied to the Up-C structure, with projected TRA payments of $442.6 million over 41 years. Control remains concentrated with founder Richard B.
Cohen, whose holdings carry 87.4%d of voting power. Investors should weigh strong backlog and revenue growth against thin gross margins, continuing losses, control weaknesses, and pending litigation.
02—Key points
Key Highlights
- Total revenue rose to $1,788.2 million in fiscal 2024 from $1,176.9 million, with Systems revenue of $1,705.4 million.
- Gross profit was $245.7 million (13.7% gross margin) versus $189.7 million in fiscal 2023.
- Net loss narrowed to $84.7 million from $207.9 million; Adjusted EBITDA was $61.7 million versus a $17.6 million loss.
- Backlog of approximately $22.4 billion as of September 28, 2024; about 10% is expected to be recognized as revenue in fiscal 2025.
- Management identified material weaknesses in internal control over financial reporting, and Grant Thornton issued an adverse opinion on internal control; prior 2024 quarterly results were restated.
- Free cash flow was negative $102.5 million and operating cash flow was negative $58.1 million, while cash and equivalents reached $727.3 million after a $257.9 million equity offering and $158.7 million from Walmart warrant exercise.
- Walmart accounted for approximately 87% of total revenue, and the company faces securities class actions and derivative suits filed in 2024.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2024, Symbotic lost $0.01.
- Revenue$1.79B100.0%
- Cost of revenue−$1.54B86.3%
- Gross profit$245.7M13.7%
- Operating costs−$362.4M20.3%
- Operating income−$116.7M6.5%
- Interest, other & tax$103.2M5.8%
- Net income−$13.5M0.8%
04—Financials
Financial Highlights
Figures from 10-KFY2024filed December 4, 2024Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $1.79B$1.18B | +51.9% |
| Cost of Revenue | $1.54B$987.15M | +56.3% |
| Gross Profit | $245.67M$189.74M | +29.5% |
| R&D Expenses | $173.46M$195.04M | −11.1% |
| SG&A Expenses | $188.93M$217.93M | −13.3% |
| Operating Expenses | $362.39M$412.97M | −12.2% |
| Operating Income | -$116.72M-$223.23M | +47.7% |
| Net Income | -$13.49M-$23.87M | +43.5% |
| EPS (Basic) | $-0.14$-0.37 | +62.2% |
| EPS (Diluted) | $-0.14$-0.37 | +62.2% |
| Shares Outstanding (Basic) | 95.70M64.34M | +48.7% |
| Shares Outstanding (Diluted) | 95.70M64.34M | +48.7% |
05—Questions
Frequently Asked Questions
What drove the increase in revenue?
Systems revenue increased due to 44 Systems in Deployment in fiscal 2024 versus 35 in fiscal 2023, primarily from the continued build-out under the Walmart Master Automation Agreement. Software maintenance and support revenue rose with 25 Operational Systems under maintenance contracts versus 12 a year earlier.
Why are the material weaknesses significant?
Management concluded that internal control over financial reporting was not effective as of September 28, 2024. Controls over the timing of cost of revenue recognition and over revenue from non-billable cost overruns were not effectively designed, and the auditor issued an adverse opinion. The company restated unaudited quarterly financial statements for the first three quarters of fiscal 2024.
How concentrated is the customer base?
Walmart accounted for approximately 87% of total revenue in fiscal 2024. Affiliated and other larger customers, including AFS, GreenBox, C&S Wholesale Grocers, and UNFI, together accounted for approximately 11% of total revenue.
What is the tax receivable agreement obligation?
The company must pay 85% of certain tax savings to legacy holders of New Symbotic Holdings. Based on assumptions in the filing, future TRA payments are expected to total $442.6 million over 41 years from the Business Combination, and payments may accelerate in certain circumstances.
Who controls the company's voting power?
Chairman and CEO Richard B. Cohen, together with certain family members and affiliated entities and trusts, holds Class V-3 common stock and 87.4% of the voting power, allowing them to control all matters submitted to stockholders for approval.
06—Continue