Smith Micro Software shares fall 13.40% intraday after Q3 loss, revenue decline, and strategic cost reductions.

Smith Micro Software (SMSI) fell 13.40% intraday following its Q3 2025 earnings report, which revealed a net loss and a 6% year-over-year revenue decline to $4.3 million. The results missed estimates and underscored ongoing financial struggles, despite a +7.69% earnings surprise. Concurrently, the company announced strategic cost reductions, including a 30% workforce cut and leadership changes, signaling operational restructuring amid weak performance. These developments, coupled with prior negative sentiment from Q2 2025 results and recent fundraising activities, contributed to investor pessimism. The intraday selloff reflects concerns over recurring losses, declining revenue, and management’s ability to stabilize the business.