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Smith Micro Software
(NASDAQ:SMSI)
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Rating:46Neutral
Price Target:
$2.50
▼(-15.82% Downside)
Action:Reiterated
Date:09/19/26
The score is held down primarily by weak financial performance—sharp multi-year revenue contraction, sustained heavy losses, and ongoing cash burn—despite manageable leverage. Technicals also remain bearish with the stock trading below key moving averages and soft momentum. Offsetting these negatives, the earnings call points to near-term sequential growth, strong gross margins, and cost-control progress, but low cash and continued losses keep the overall risk profile elevated.
Positive Factors
High gross margins
Gross margins above 80% indicate that SafePath software can generate substantial contribution from each deployment once revenue scales. Maintaining this level, with a longer-term target near 85%, supports reinvestment and gives management room to improve profitability as customer adoption grows.
Negative Factors
Persistent revenue contraction
The prolonged revenue decline indicates that Smith Micro has not yet restored the scale of its prior business, making fixed costs harder to absorb and limiting investment capacity. Recent sequential improvement is encouraging, but the multi-year contraction remains a durable challenge to rebuilding earnings power.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Gross margins above 80% indicate that SafePath software can generate substantial contribution from each deployment once revenue scales. Maintaining this level, with a longer-term target near 85%, supports reinvestment and gives management room to improve profitability as customer adoption grows.
Read all positive factors
Smith Micro Software (SMSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.15M
Dividend YieldN/A
Average Volume (3M)17.57K
Price to Earnings (P/E)―
Beta (1Y)0.93
Revenue Growth-9.51%
EPS Growth62.16%
CountryUS
Employees118
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-3.52
Shares Outstanding5,589,880
10 Day Avg. Volume23,105
30 Day Avg. Volume17,569
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.61
Price to Sales (P/S)0.64
P/FCF Ratio-1.53
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-2.05
Revenue Forecast (FY)$19.95M
Smith Micro Software Business Overview & Revenue Model
Company Description
Smith Micro Software, Inc. engineers and distributes specialized software solutions globally, primarily to telecommunications and cable service providers, with the goal of enriching the mobile experience. Their product lineup includes the SafePath...
How the Company Makes Money
Smith Micro generates revenue primarily by licensing and delivering its software products (notably the SafePath platform) to mobile network operators and other partners, who then offer these services to end customers. The company’s model typically...
Smith Micro Software Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call highlights clear operational progress: sequential revenue growth for two consecutive quarters, a strong improvement in gross margin (over 80%), meaningful operating cost reductions, near-term product launches and a growing pipeline driven by SafePath SDKs/APIs and the new SafePath Connect offering. Offsetting these positives are modest year-over-year revenue declines, a low cash balance ($2.8M), timing-driven revenue push from Q2 to Q3, continued GAAP/non-GAAP losses, and planned near-term OpEx increases to support growth. Management provided constructive guidance for Q3 ($5.0M–$5.4M) and signaled confidence in conversion of pipeline, but execution and liquidity remain key risks in the near term.Positive Updates
Sequential Revenue Growth Resumes
Q2 2026 revenue of $4.3M, up $120K or 3% sequentially from Q1 2026; this marks two consecutive quarters of sequential revenue growth for the first time since 2021.
Negative Updates
Year-over-Year Revenue Decline
Q2 2026 revenue of $4.3M was down 2% versus Q2 2025 ($4.4M). Year-to-date revenue through June 30, 2026 was $8.6M, down 5% from $9.0M through the same period in 2025.
Read all updates
Q2-2026 Updates
Positive
Negative
Sequential Revenue Growth Resumes
Q2 2026 revenue of $4.3M, up $120K or 3% sequentially from Q1 2026; this marks two consecutive quarters of sequential revenue growth for the first time since 2021.
Read all positive updates
Company Guidance
Guidance summary: Management expects Q3 2026 revenue of $5.0–$5.4 million (building on Q2 revenue of $4.3M, +3% sequential, -2% YoY; YTD $8.6M, -5% YoY) with Q3 gross margin targeted at 81%–83% (Q2 gross profit $3.5M; Q2 gross margin 81.3%; long‑term target ~85%); management expects continued sequential revenue growth into Q3 and Q4 driven by two near‑term customer launches and a Tier‑1 contract extension that should begin contributing in Q3; to support the pipeline they anticipate adding resources such that non‑GAAP operating expenses could rise up to ~6% in Q3 vs Q2 (Q2 non‑GAAP OpEx $4.4M; GAAP OpEx $5.9M, down 68% YoY); Q2 GAAP net loss was $2.7M ($0.52/share) and Q2 non‑GAAP net loss was $0.989M ($0.19/share) (YTD GAAP net loss $6.6M / $1.28/share; YTD non‑GAAP net loss $2.5M / $0.48/share); cash was $2.8M as of June 30 and the company raised $1.6M in June via exercise of 487,349 warrants at $3.35 each.Smith Micro Software Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
52
Neutral
Cash Flow
14
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.88M | 17.36M | 20.55M | 40.86M | 48.51M | 58.42M |
| Gross Profit | 13.09M | 12.86M | 14.43M | 30.30M | 34.30M | 45.72M |
| EBITDA | 390.00K | -23.60M | -19.10M | -10.49M | -17.67M | -8.74M |
| Net Income | -15.63M | -30.10M | -48.70M | -24.40M | -29.28M | -31.04M |
Balance Sheet | ||||||
| Total Assets | 25.89M | 24.97M | 48.05M | 85.58M | 103.58M | 114.51M |
| Cash, Cash Equivalents and Short-Term Investments | 2.79M | 1.49M | 2.81M | 7.13M | 14.03M | 16.08M |
| Total Debt | 4.46M | 2.34M | 2.57M | 3.26M | 13.42M | 5.87M |
| Total Liabilities | 8.56M | 6.58M | 7.29M | 10.19M | 27.20M | 13.95M |
| Stockholders Equity | 17.33M | 18.39M | 40.76M | 75.39M | 76.38M | 100.56M |
Cash Flow | ||||||
| Free Cash Flow | -9.00M | -7.28M | -14.31M | -6.98M | -19.31M | -13.75M |
| Operating Cash Flow | -8.96M | -7.19M | -14.29M | -6.97M | -19.26M | -12.92M |
| Investing Cash Flow | 220.00K | 1.20M | 178.00K | 132.00K | 115.00K | -57.50M |
| Financing Cash Flow | 10.13M | 4.68M | 9.80M | -60.00K | 17.09M | 60.74M |
Smith Micro Software Technical Analysis
Negative
2.97
Price Trends
2.79
Negative
3.11
Negative
3.15
Negative
Market Momentum
-0.05
Positive
37.70
Neutral
23.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMSI, the sentiment is Negative. The current price of 2.97 is above the 20-day moving average (MA) of 2.80, above the 50-day MA of 2.79, and below the 200-day MA of 3.15, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 37.70 is Neutral, neither overbought nor oversold. The STOCH value of 23.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SMSI.
Smith Micro Software Risk Analysis
Smith Micro Software disclosed 32 risk factors in its most recent earnings report. Smith Micro Software reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Smith Micro Software Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $332.20M | 67.42 | 3.34% | ― | 3.66% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $588.10M | -29.08 | -24.96% | ― | 16.73% | 35.67% | |
58 Neutral | $640.39M | 27.43 | 27.89% | ― | -1.48% | 257.78% | |
46 Neutral | $15.15M | -0.75 | -84.56% | ― | -9.51% | 62.16% | |
43 Neutral | $9.97M | -0.23 | -668.04% | ― | -21.48% | 17.84% |
* Technology Sector Average
SMSI
Smith Micro Software
2.65
-1.04
-28.13%
EGHT
8X8
2.23
-0.04
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UPLD
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3.29
-21.71
-86.84%
YEXT
Yext
6.43
-2.16
-25.15%
WEAV
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7.37
0.43
6.20%
Smith Micro Software Corporate Events
Business Operations and StrategyExecutive/Board ChangesPrivate Placements and Financing
Founder Bill Smith Returns as Smith Micro CEO
Positive
Sep 18, 2026
Smith Micro Software announced on September 18, 2026, that company founder William W. (Bill) Smith Jr. has returned as president and chief executive officer, succeeding Timothy C. Huffmyer, who resigned a day earlier but remains on the board. Smit...
Delistings and Listing ChangesRegulatory Filings and Compliance
Smith Micro Regains Nasdaq Compliance, Stabilizing Listing Status
Positive
Jun 23, 2026
Smith Micro Software, Inc. was notified on June 23, 2025, that its common stock had fallen below Nasdaq’s $1.00 minimum bid price, triggering a 180-day compliance period that ran until December 22, 2025, and was later extended to June 22, 20...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.