01—Abstract
Summary
Summary of the 10-Q filed May 7, 2025. Cited figures are marked; the original filing is the authoritative source.
Symbotic Inc. reported revenue of $549.7 milliona for the three months ended March 29, 2025, up from $393.3 million in the prior-year quarter, with total revenue of $1.04 billion for the six months.
Systems revenue was $513.4 millionb for the quarter, and the filing attributes the growth primarily to 46 Systems in Deployment versus 37 a year earlier, driven by the Walmart Master Automation Agreement. Gross profit rose to $107.8 million (19.6% gross profit margin per the non-GAAP table, versus 7.7% a year earlier), and the operating loss narrowed to $32.1 million from $64.9 million. Net loss attributable to common stockholders was $3.9 million for the quarter.
Adjusted EBITDA was $34.7 millionc for the quarter and $52.6 million for the six months. Cash flow and liquidity improved markedly: operating cash flow was $474.6 million for the six months, driven largely by a $288.6 million increase in deferred revenue, and free cash flow was $446.7 million. Cash and cash equivalents stood at $954.9 million at March 29, 2025.
The company acquired Walmart's Advanced Systems & Robotics Inc. for $200.0 milliond in cash on January 27, 2025, recording $68.7 million of goodwill and $115.0 million of developed technology intangibles. Remaining performance obligations totaled $22.7 billion, and Customer A accounted for 85.6% of quarterly revenue. The filing discloses that disclosure controls were not effective due to material weaknesses related to the timing of cost of revenue recognition and revenue recognition on cost overruns.
It also describes pending SEC inquiries, including a subpoena tied to the November 2024 revenue restatement, and securities class and shareholder derivative actions. In May 2025, management approved a workforce reduction of approximately 320 to 390 employees, with estimated costs of $12.0 million to $14.0 million.
02—Key points
Key Highlights
- Total revenue of $549.7 million for the quarter, up from $393.3 million, with Systems revenue of $513.4 million
- Gross profit of $107.8 million versus $30.2 million a year earlier; operating loss narrowed to $32.1 million from $64.9 million
- Net loss attributable to common stockholders of $3.9 million for the quarter versus $8.8 million a year earlier
- Adjusted EBITDA of $34.7 million for the quarter and $52.6 million for the six months, compared with $8.5 million and $16.6 million a year earlier
- Operating cash flow of $474.6 million for the six months and free cash flow of $446.7 million, supported by a $288.6 million increase in deferred revenue
- Acquired Walmart's Advanced Systems & Robotics Inc. for $200.0 million in cash, adding $68.7 million of goodwill and $115.0 million of developed technology intangibles
- Disclosure controls were not effective due to material weaknesses; the SEC has issued a subpoena related to the November 2024 revenue restatement, and securities class actions are pending
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q2 FY2025, Symbotic lost $0.00.
- Revenue$549.7M100.0%
- Cost of revenue−$438.9M79.8%
- Gross profit$110.8M20.2%
- Operating costs−$131.3M23.9%
- Operating income−$20.5M3.7%
- Interest, other & tax$18.7M3.4%
- Net income−$1.8M0.3%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed May 7, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $549.65M$393.33M | +39.7% |
| Cost of Revenue | $438.86M$363.11M | +20.9% |
| Gross Profit | $110.79M$30.22M | +266.6% |
| R&D Expenses | $57.96M$46.46M | +24.7% |
| SG&A Expenses | $73.31M$48.65M | +50.7% |
| Operating Expenses | $131.26M$95.11M | +38.0% |
| Operating Income | -$20.47M-$64.89M | +68.5% |
| Net Income | -$1.80M-$8.81M | +79.5% |
| EPS (Basic) | $-0.02$-0.09 | +77.8% |
| EPS (Diluted) | $-0.02$-0.09 | +77.8% |
| Shares Outstanding (Basic) | 107.73M93.04M | +15.8% |
| Shares Outstanding (Diluted) | 107.73M93.04M | +15.8% |
05—Questions
Frequently Asked Questions
How did Symbotic's revenue and profitability change in the quarter ended March 29, 2025?
Total revenue rose to $549.7 million from $393.3 million, with Systems revenue up to $513.4 million from $370.7 million. Gross profit increased to $107.8 million from $30.2 million, and the operating loss narrowed to $32.1 million from $64.9 million. The filing attributes the Systems growth primarily to 46 Systems in Deployment versus 37 in the prior-year quarter.
How much cash does Symbotic have, and what drove the strong operating cash flow?
Cash and cash equivalents were $954.9 million at March 29, 2025. Net cash provided by operating activities was $474.6 million for the six months, primarily due to a $288.6 million increase in deferred revenue, a $64.2 million decrease in accounts receivable, and a $99.8 million decrease in prepaid expenses and other current assets, partly offset by the net loss and non-cash items.
What is the Walmart Advanced Systems & Robotics acquisition?
On January 27, 2025, Symbotic acquired Walmart's Advanced Systems & Robotics Inc. for $200.0 million in cash. The preliminary purchase price allocation includes $115.0 million of developed technology intangibles amortized over seven years and $68.7 million of goodwill. The company says the acquisition is intended to broaden its offering beyond traditional warehouses to eCommerce and last-mile delivery settings.
What risks does the filing highlight for investors?
The filing reports customer concentration, with one customer accounting for 85.6% of quarterly revenue and 66.9% of accounts receivable. It discloses material weaknesses in internal control, an SEC subpoena related to the November 2024 restatement, and a pending securities class action with an amended complaint due July 11, 2025. It also notes a workforce reduction of approximately 320 to 390 employees approved in May 2025.
What is the company's backlog and how quickly will it convert to revenue?
Transaction price allocated to unsatisfied performance obligations was $22.7 billion at March 29, 2025, a substantial majority relating to Walmart's Master Automation Agreement and the GreenBox commercial agreement. The company expects to recognize approximately 11% of remaining performance obligations as revenue in the next 12 months and approximately 53% within the following 13 to 60 months.
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