01—Abstract
Summary
Summary of the 10-Q filed February 5, 2025. Cited figures are marked; the original filing is the authoritative source.
Symbotic Inc. reported results for the first quarter of fiscal 2025 (three months ended December 28, 2024).
Total revenue rose to $486.7 milliona from $359.9 million in the prior-year quarter, with Systems revenue of $464.1 million and the filing attributing the increase to 44 Systems in Deployment versus 37 a year earlier, largely from the Walmart Master Automation Agreement. Gross profit was $80.0 million compared with $64.1 million, and the net loss narrowed slightly to $18.5 million from $19.1 million. Net loss attributable to common stockholders was $3.5 million, or $(0.03) per Class A share.
Operating cash flow was $205.0 millionb, and free cash flow was $197.7 million, against cash and cash equivalents of $903.0 million at quarter end. Selling, general, and administrative expenses rose 30% to $61.1 million, partly due to professional fees tied to acquisitions and internal control remediation. The filing discloses that management concluded disclosure controls and procedures were not effective because of two material weaknesses relating to the timing of cost of revenue recognition and revenue recognition on non-billable cost overruns.
Management stated that all remediation controls had been implemented as of February 5, 2025, but that the weaknesses will not be considered remediated until the controls operate effectively over a sufficient period. The company also disclosed a $22.4 billionc remaining performance obligation, with about 11% expected to convert to revenue within 12 months, and it reports that one customer accounted for 86.1% of revenue.
Multiple securities class actions, a shareholder derivative action, and an SEC subpoena relating to the November 2024 revenue restatement remain pending. After the quarter, on January 15, 2025, Symbotic agreed to acquire Walmart Advanced Systems & Robotics for up to $200 milliond in cash, closing January 27, 2025, alongside a Walmart Master Automation Agreement for 400 accelerated pickup and delivery systems with an option for 200 more and $520 million of research and development fees payable in installments.
02—Key points
Key Highlights
- Total revenue of $486.7 million rose from $359.9 million, driven by Systems revenue of $464.1 million and 44 Systems in Deployment versus 37 a year earlier.
- Net loss narrowed to $18.5 million from $19.1 million; net loss attributable to common stockholders was $3.5 million, or $(0.03) per Class A share.
- Operating cash flow was $205.0 million and free cash flow was $197.7 million, compared with operating cash use of $30.2 million in the prior-year quarter.
- Cash and cash equivalents were $903.0 million at December 28, 2024, up from $727.3 million at September 28, 2024.
- Management concluded disclosure controls were not effective due to two material weaknesses in cost of revenue timing and revenue recognition on non-billable cost overruns.
- Remaining performance obligations totaled $22.4 billion, with approximately 11% expected to be recognized as revenue in the next 12 months.
- Pending securities class actions, a shareholder derivative suit, and an SEC subpoena tied to the November 2024 revenue restatement remain outstanding; the company has agreed to acquire WASR from Walmart for up to $200 million.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q1 FY2025, Symbotic lost $0.01.
- Revenue$486.7M100.0%
- Cost of revenue−$405.7M83.4%
- Gross profit$81.0M16.6%
- Operating costs−$104.0M21.4%
- Operating income−$23.0M4.7%
- Interest, other & tax$19.8M4.1%
- Net income−$3.2M0.7%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed February 5, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $486.69M$359.94M | +35.2% |
| Cost of Revenue | $405.68M$295.89M | +37.1% |
| Gross Profit | $81.02M$64.06M | +26.5% |
| R&D Expenses | $43.28M$42.14M | +2.7% |
| SG&A Expenses | $60.70M$47.01M | +29.1% |
| Operating Expenses | $103.98M$89.16M | +16.6% |
| Operating Income | -$22.97M-$25.10M | +8.5% |
| Net Income | -$3.17M-$2.84M | −12.0% |
| EPS (Basic) | $-0.03$-0.03 | 0.0% |
| EPS (Diluted) | $-0.03$-0.03 | 0.0% |
| Shares Outstanding (Basic) | 106.10M83.32M | +27.3% |
| Shares Outstanding (Diluted) | 106.10M83.32M | +27.3% |
05—Questions
Frequently Asked Questions
How did Symbotic's revenue and profitability change in the quarter ended December 28, 2024?
Total revenue increased 35% to $486.7 million from $359.9 million. Gross profit rose to $80.0 million from $64.1 million, while operating loss was $24.6 million compared with $25.1 million a year earlier. Net loss was $18.5 million versus $19.1 million, with $15.0 million of the loss attributable to noncontrolling interests.
What drove the increase in Systems revenue?
The filing attributes the increase to 44 Systems in Deployment during the quarter compared with 37 in the prior-year quarter, primarily reflecting the continued build-out of Systems under the Walmart Master Automation Agreement across Walmart's 42 regional distribution centers.
What material weaknesses did management identify in internal control over financial reporting?
Management identified weaknesses in procedures and controls over the timing of cost of revenue recognition, which accelerated recognition of cost of revenue and revenue, and in controls over revenue recognition for cost overruns on certain deployments that will not be billable. Remediation controls were reported as implemented as of February 5, 2025, but the weaknesses are not considered remediated until those controls operate effectively for a sufficient period.
How concentrated is Symbotic's customer base?
One customer, including its affiliates, accounted for 86.1% of total revenue for the quarter, compared with 82.0% a year earlier, and 89.5% of accounts receivable at December 28, 2024. The filing notes that loss of this relationship could materially affect results.
What acquisition did Symbotic announce after the quarter ended?
On January 15, 2025, Symbotic agreed to acquire Walmart Advanced Systems & Robotics Inc. from Walmart for $200 million in cash at closing, plus up to $350 million in deferred consideration tied to acceptance of the first accelerated pickup and delivery system and Walmart's exercise of an additional option. The acquisition closed on January 27, 2025, and Symbotic LLC entered into a Master Automation Agreement with Walmart for 400 systems with an option for 200 more.
06—Continue