Symbotic 2025 Q2 Earnings Net Loss Narrows 60.9%

Symbotic Inc. (SYM) reported its fiscal 2025 Q2 earnings on May 7, 2025. Symbotic's results exceeded expectations, with revenue surpassing analyst estimates at $550 million compared to the forecasted $522.17 million. Despite this strong revenue performance, the company's net loss narrowed significantly to $21 million from a $55 million loss in Q2 FY2024. The guidance for the next quarter is in line, projecting revenue between $520 million and $540 million, with adjusted EBITDA expected to range from $26 million to $30 million.

Revenue

Symbotic experienced a 39.7% increase in total revenue, reaching $549.65 million for Q2 fiscal 2025, compared to $393.33 million in Q2 fiscal 2024. Systems contributed significantly, generating $513.37 million. Revenue from software maintenance and support amounted to $6.68 million, while operation services provided an additional $29.59 million, culminating in the total revenue figure of $549.65 million.

Earnings/Net Income

Symbotic narrowed its net loss to $21.44 million in Q2 2025, a 60.9% improvement from the $54.83 million loss in Q2 2024. Earnings per share saw a positive shift, improving from a $0.09 loss in the previous year to a $0.04 loss this year, representing a substantial improvement.

Price Action

The stock price of symbotic decreased by 1.71% during the latest trading day, rose 4.08% over the past week, and increased 28.34% month-to-date.

Post Earnings Price Action Review

Over the past five years, investing in Symbotic (SYM) shares following a quarter-over-quarter revenue increase and holding for 30 days has resulted in a -3.16% return, underperforming the benchmark by 41.05%. The investment strategy exhibited a Sharpe ratio of -0.23, indicating unfavorable risk-adjusted returns. The maximum drawdown reached -4.97%, with a volatility of 3.41%. The compound annual growth rate (CAGR) was -0.77%, further underscoring the strategy's lack of positive returns throughout the period.

CEO Commentary

Rick Cohen, Chairman and CEO, emphasized Symbotic's 40% year-over-year revenue growth and gross margin expansion in Q2. He credited improved deployment processes and strategic acquisitions, like Walmart Advanced Systems and Robotics, for positioning the company favorably. Cohen noted a backlog nearing $23 billion and expressed optimism about future growth opportunities, thanking customers and the team for their contributions to success.

Guidance

For Q3 fiscal 2025, Symbotic forecasts revenue between $520 million and $540 million, with adjusted EBITDA projected between $26 million and $30 million. CFO Carol Hibbard noted that guidance excludes tariff impacts, which could affect gross margins. The company aims for ongoing improvements in project execution and operational efficiencies while continuing to invest in growth and innovation.

Additional News

In recent weeks, Symbotic announced the successful acquisition of Walmart's Advanced Systems and Robotics business, a strategic move expanding their automation capabilities and significantly increasing their backlog. The acquisition also includes a commercial agreement for deploying automation systems across Walmart's Accelerated Pickup and Delivery centers, potentially boosting Symbotic's addressable market by over $300 billion in the U.S. Additionally, Symbotic appointed Dr. James Kuffner as Chief Technology Officer, bringing extensive expertise in robotics and AI from his previous roles at Toyota and Google. This leadership change is expected to drive further innovation and technological advancements within the company.

Ask Aime: Symbotic's earnings report reveals a 39.7% revenue surge with a net loss reduction, but stock price drops.