0001642896-25-000074
SEC filingSamsara's 30% revenue growth and gross margin expansion to 77% drove improved profitability, with ARR reaching $1.64B.
For the three months ended August 2, 2025, Samsara reported revenue of $391.5 million, a 30% increase from $300.2 million in the same period last year. Gross profit rose to $301.0 million from $226.8 million, yielding a gross margin of 77% compared to 76% in the prior-year quarter, driven by operational efficiencies in connected device and direct labor costs. Net loss improved significantly to $16.8 million from $49.6 million, reflecting top-line growth and expense discipline. On a non-GAAP basis, net income reached $69.5 million, up from $26.1 million, as non-GAAP operating margin expanded to 15% from 6%. For the six-month period, revenue grew 31% to $758.4 million, gross margin held at 77%, and the net loss narrowed to $38.9 million from $105.9 million. Free cash flow for the first half was $89.9 million (12% margin), compared to $31.7 million (5%) in the prior year.
The MD&A does not report segment-level results. Samsara operates as a single segment focused on its Connected Operations Platform. Subscription revenue accounted for approximately 98% of total revenue in recent fiscal years, with the remainder from replacement IoT devices, shipping, and professional services. Growth is driven by new customer acquisition and expansion within existing accounts through additional Applications and geographic coverage.
Management emphasizes continued investment in sales and marketing, research and development, and international expansion to drive further growth. Key business metrics—ARR of $1.64 billion and over 2,771 customers with >$100k ARR—underscore momentum. No formal guidance is provided in this MD&A. The company believes existing liquidity of $1.09 billion in cash, equivalents, and marketable securities is sufficient for at least the next 12 months, though future capital needs may require additional financing.
As of August 2, 2025, Samsara held $258.5 million in cash and cash equivalents, $443.3 million in short-term investments, and $386.3 million in long-term investments, totaling $1.1 billion in cash and marketable securities. The company has no debt, with total stockholders' equity of $1.2 billion. Inventories increased to $47.6 million from $38.9 million at fiscal year-end, driven by a rise in finished goods. Accounts receivable, net, stood at $246.1 million, with an allowance for credit losses of $10.1 million. Connected device costs (current and non-current) totaled $374.6 million, reflecting continued investment in IoT devices provided to customers.
Samsara's remaining performance obligations (RPO) were $3,165.5 million as of August 2, 2025, of which $1,401.8 million is expected to be recognized over the next 12 months. Deferred revenue totaled $740.5 million. The company has operating lease liabilities of $77.2 million, with future minimum lease payments of $89.4 million through 2031 and beyond. Letters of credit outstanding were $17.8 million, primarily for office space leases. Purchase commitments, consisting of SaaS subscriptions and non-cancelable purchase orders, were not quantified but noted as not material outside the ordinary course of business.
Samsara did not repurchase any shares or pay dividends during the period. Capital expenditures were $12.9 million for the six months ended August 2, 2025, representing 1.7% of revenue. The company has no debt, and its financing activities consisted solely of $18.7 million in proceeds from equity compensation plans and $0.7 million in finance lease payments. Stock-based compensation expense totaled $158.2 million for the six-month period.
The company operates as a single reportable segment. Revenue by geography shows the United States contributed $652.0 million (86.0%) of total revenue for the six months ended August 2, 2025, with other countries contributing $106.4 million (14.0%). No individual country other than the U.S. exceeded 10% of total revenue. Long-lived assets (property and equipment, net, and operating lease ROU assets) were $124.1 million in the U.S. and $10.3 million in other countries.