Smith Micro Software reported a slight year-over-year revenue decline for the second quarter of 2026, though the results marked a second consecutive quarter of sequential revenue growth. The company achieved significant gross margin expansion and narrowed its non-GAAP net loss as it pivots toward broader market deployment options for its SafePath platform.
Key Highlights
- Gross margin expanded significantly to 81.3% compared to 73.5% in the same period last year, driven by a higher-margin sales mix.
- Non-GAAP net loss narrowed to $1.0 million, or $0.19 per share, compared to a loss of $2.8 million, or $0.71 per share, in the prior year.
- The addressable market expanded through the launch of SafePath Connect and new SDK/API deployment options, aimed at reaching customers beyond traditional wireless carriers.
- Management identified two new customers ready to launch in the near term and multiple contracts currently under negotiation.
- Cash and cash equivalents stood at $2.8 million as of June 30, 2026, following a 1-for-5 reverse stock split effective June 4, 2026.