0001628280-26-041893
SEC filingRevenue grew 31% YoY with net income turning positive, though gross margin compressed by higher cloud costs.
Revenue for the three months ended May 2, 2026, was $478.8 million, a 31% increase from $366.9 million in the same period last year. Growth was driven by new customer acquisition and expanded purchases from existing customers. Gross profit rose to $361.1 million from $283.7 million, but gross margin contracted to 75% from 77% due to higher cloud and cellular costs ($16.1 million increase) and increased connected device costs ($10.8 million). Operating income turned positive at $7.2 million compared to a loss of $33.3 million in the prior year, primarily due to revenue growth and a $30.3 million arbitration award recognized in interest and other income. Net income was $44.5 million versus a net loss of $22.1 million. On a non-GAAP basis, operating margin improved to 19% from 14%, and free cash flow margin increased to 15% from 12%, indicating improving operational efficiency.
The MD&A does not disclose formal segment revenue breakdowns, but notes that approximately 98% of total revenue comes from subscriptions to the Connected Operations Platform. The key business metrics highlight strong enterprise momentum: Annual Recurring Revenue (ARR) reached $1.99 billion as of May 2, 2026, up 30% from $1.54 billion a year earlier. The number of customers with over $100,000 in ARR grew 27% to 3,363. This demonstrates successful land-and-expand strategy with larger customers, as the company focuses on selling additional applications and expanding within existing accounts.
Management expects to continue investing heavily in sales and marketing to drive customer acquisition and in R&D to enhance the platform and develop new products. Operating expenses are anticipated to increase in absolute dollars, though the company aims to gain operating leverage over time. No specific numerical guidance was provided. The company believes its existing cash, cash equivalents, and investments of $1.28 billion will be sufficient to meet working capital and capital expenditure needs for at least the next 12 months. Potential headwinds include macroeconomic uncertainty, inflationary pressure, and supply chain disruptions, which could affect customer spending and cost structures.
As of May 2, 2026, Samsara held $0.22B in cash and cash equivalents and $1.06B in marketable securities (short- and long-term), totaling $1.28B in liquid assets. The company has no debt, with total stockholders' equity of $1.51B. Inventory stood at $52.2M, up slightly from $48.2M at year-end. Deferred revenue (current and non-current) totaled $0.83B, while remaining performance obligations (RPO) were $3.99B, indicating strong contracted future revenue.
The company disclosed $15.8M in letters of credit primarily for office leases. No material purchase commitments were entered into during the quarter, though ongoing commitments exist for cellular, cloud hosting, and subscription services. The total lease liability was $69.0M, with future minimum lease payments of $78.7M through 2032 and beyond.
Capital expenditures were $8.2M for the quarter, representing 1.7% of revenue. There were no share repurchases or dividends. The company did not issue or repay any debt. Stock-based compensation expense was $77.5M, split across cost of revenue ($3.6M), R&D ($30.0M), sales and marketing ($23.2M), and G&A ($20.7M). Unrecognized SBC for RSUs was $672.5M expected to be recognized over 1.6 years.
Samsara operates as a single reportable segment. Revenue from the United States was $406.5M (85% of total) and other geographies contributed $72.3M (15%). Long-lived assets (PP&E and operating lease ROU assets) were $141.7M, with $131.8M in the U.S. Revenue mix was 98.4% subscription ($471.0M) and 1.6% other ($7.9M).