Smith Micro Sets Q3 Revenue Target of $4.5M-$4.8M with SafePath 8 and Senior Phone Launches

Smith Micro Software has outlined a Q3 revenue target of $4.5M-$4.8M, driven by the success of its SafePath 8 and senior phone launches. The company's CEO, William W. Smith, highlighted momentum in sales activities across North America and Europe, emphasizing the positive reception of the SafePath Kids and Senior phones.

Smith Micro Software Inc. (SMSI) has outlined a revenue target for the third quarter of 2025, expecting consolidated revenues to be in the range of approximately $4.5 million to $4.8 million [2]. The company's CEO, William W. Smith, highlighted momentum in sales activities across North America and Europe, emphasizing the positive reception of the SafePath Kids and Senior phones. The company's strategic focus on SafePath, with the imminent launch of SafePath 8, is anticipated to drive this growth.

The company's second-quarter revenue was $4.4 million, down 14% year over year [2]. This decline was primarily driven by an $11.1 million goodwill impairment charge, offset by the gain on the sale of the ViewSpot product line for $1.3 million [2]. Despite the revenue drop, the company reported a gross margin of 74% and expects gross margins for Q3 to be in the range of 72% to 75% [2].

Smith Micro Software is optimistic about its future, with William W. Smith stating, "I believe that our future is bright, and we are on the cusp of a meaningful turnaround" [2]. The company's focus on SafePath, a platform offering AI-driven features, is expected to drive growth. The SafePath Kids and Senior phones, powered by SafePath OS, have received positive feedback and are seen as key drivers for the company's turnaround.

The company's outlook for the third quarter includes a modest decline in non-GAAP operating expenses compared to the second quarter of 2025. Management anticipates sequential quarterly revenue growth into Q4, driven by product launches and feature expansions [2]. Smith Micro Software has also expanded its carrier relationships with Orange Spain, AT&T, Boost, and T-Mobile, further supporting its growth prospects.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3TW1ZY:0-smith-micro-software-inc-expected-to-post-a-loss-of-25-cents-a-share-earnings-preview/
[2] https://seekingalpha.com/news/4481032-smith-micro-outlines-4_5m-4_8m-q3-revenue-target-with-safepath-8-and-senior-phone-launches