Executive Summary

Revenue of $322.0M (+36% YoY) and non-GAAP diluted EPS of $0.07; quarterly records in non-GAAP gross margin (78%), non-GAAP operating margin (11%), and adjusted free cash flow margin (10%), underpinned by ARR reaching $1.349B (+35% YoY) .
Raised FY25 outlook: revenue to $1.237–$1.239B (adjusted growth 35%), non-GAAP operating margin ~7%, non-GAAP diluted EPS $0.22–$0.23; Q4 FY25 revenue maintained at $334–$336M while non-GAAP operating margin lifted to 9% and diluted EPS to $0.07–$0.08 .
Growth drivers: 170 additions of $100k+ ARR customers (second-highest ever), balanced new logos/expansions, stronger international mix (17% of net new ACV; Mexico and Europe), and emerging products (Asset Tags >100% QoQ net new ACV growth) .
Narrative catalysts: launch of “Samsara Intelligence” (Assistant and Intelligent Experiences) leveraging >10 trillion data points and 70B miles/year; monetization model under evaluation during beta, with management signaling continued rapid AI innovation .

What Went Well and What Went Wrong

What Went Well
- Record profitability at scale: non-GAAP gross margin 78%, operating margin 11%, adjusted FCF margin 10%—driven by operating leverage and cost optimization . “We delivered quarterly records across all key non-GAAP profitability metrics” — CFO Dominic Phillips .
- Enterprise and multiproduct momentum: 2,303 customers with ARR >$100k (+38% YoY); 78 of 170 large additions were new logos; 8 of top 10 expansions were multiproduct; DBNRR at 115%/120% (core/large) .
- International/frontier strength: Mexico delivered its highest quarterly net new ACV mix; Europe accelerated YoY ARR growth for fourth consecutive quarter; public sector posted a record 16 deals >$100k in Q3 .
What Went Wrong
- GAAP loss persists: GAAP net loss of $37.8M and GAAP diluted EPS of -$0.07, reflecting substantial stock-based compensation ($77.7M) despite non-GAAP profitability .
- Near-term calendar headwind: FY25 Q4 compares to a 14-week prior-year quarter; management quantified a ~3ppt headwind to FY25 adjusted revenue growth (already reflected in guidance) .
- Policy uncertainty: management is monitoring potential tariff/policy changes under the incoming administration; scenarios under evaluation, no current impact but noted as a watch item . Minor election-driven deal delays occurred but were already closed in Q4 and were not material .

Financial Results

Metric	Q1 FY2025	Q2 FY2025	Q3 FY2025
Total Revenue ($USD Millions)	$280.7	$300.2	$322.0
Revenue YoY Growth (%)	37%	37%	36%
Non-GAAP EPS (Diluted, $USD)	$0.03	$0.05	$0.07
GAAP EPS (Diluted, $USD)	-$0.10	-$0.09	-$0.07
Non-GAAP Gross Margin (%)	77%	77%	78%
Non-GAAP Operating Margin (%)	2%	6%	11%
Adjusted Free Cash Flow Margin (%)	7%	4%	10%

KPIs

KPI	Q1 FY2025	Q2 FY2025	Q3 FY2025
Ending ARR ($USD Billions)	$1.176	$1.264	$1.349
Customers with ARR >$100k (#)	1,964	2,133	2,303
Avg ARR per Large Customer ($USD Thousands)	$316	$318	$318
International Net New ACV Mix (%)	18%	16%	17%
DBNRR (Core / Large)	115% / 120%	115% / 120%	115% / 120%

Multiproduct/Category Scale (disclosed as of Q2)

Product Category	ARR Scale (as of Q2 FY25)
Video-Based Safety	>$500M ARR
Vehicle Telematics	>$500M ARR
Equipment Monitoring + Emerging Products	>$150M ARR

Vs Guidance (Q3 actual vs Q2 guide)

Metric	Prior Guidance (Q3 from Q2 PR)	Actual Q3	Outcome
Revenue ($USD Millions)	$309–$311	$322.0	Bold beat (above guide)
Non-GAAP Operating Margin (%)	~4%	11%	Bold beat (above guide)
Non-GAAP EPS (Diluted, $USD)	$0.03–$0.04	$0.07	Bold beat (above guide)

Note: Wall Street consensus from S&P Global was unavailable at time of request, so estimate comparisons could not be confirmed.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue ($USD Millions)	Q4 FY2025	$334–$336	$334–$336	Maintained
Non-GAAP Operating Margin (%)	Q4 FY2025	8% (implied)	9%	Raised
Non-GAAP EPS (Diluted, $USD)	Q4 FY2025	$0.06–$0.07	$0.07–$0.08	Raised
Total Revenue ($USD Billions)	FY2025	$1.224–$1.228	$1.237–$1.239	Raised
Adjusted Revenue Growth (%)	FY2025	33%–34%	35%	Raised
Non-GAAP Operating Margin (%)	FY2025	~5%	~7%	Raised
Non-GAAP EPS (Diluted, $USD)	FY2025	$0.16–$0.18	$0.22–$0.23	Raised

Management reminder: Q4 FY24 was 14 weeks vs 13 weeks in current Q4, creating a ~3ppt year-over-year revenue growth headwind already embedded in adjusted guidance .

Earnings Call Themes & Trends

Topic	Q1 FY25 (prior-2)	Q2 FY25 (prior-1)	Q3 FY25 (current)	Trend
AI/Technology Initiatives	Highlighted 10T data points; Connected Forms/MEM; ROI and integration flywheel	Asset Tags launched; multiproduct at scale; continued AI detection updates	Launch of Samsara Intelligence (Assistant, Intelligent Experiences); 10T+ data, 70B miles/year; beta in NA	Accelerating AI product cadence; platform integration deepening
International Expansion	Record 18% net new ACV; Europe & Mexico strength	16% net new ACV; Europe accelerating	17% net new ACV; Mexico highest mix; Europe continued acceleration	Consistent growth, increasing mix and localization features
Vertical Mix (Construction/Public Sector)	Construction highest net new ACV; field services second	Construction highest for fifth consecutive quarter; broad non-transportation mix	Construction highest fifth consecutive; public sector record 16>$100k	Strong, broadening adoption across non-transport verticals
Product Adoption (Asset Tags, Workflows, Training)	Connected Forms early traction; MEM/Forms in new logos/expansions	Asset Tags ~$1M net new ACV in first quarter; Connected Workflows & Training landed/expanded	Asset Tags net new ACV >100% QoQ; 70% of large multiproduct customers using non-vehicle app	Rapid early adoption; expanding use cases and cross-sell
Macro/Policy (Tariffs/Elections)	Guidance derisked for macro; operations budget resiliency	Stable demand; balanced new vs expansions	Minor election timing effects; monitoring potential tariffs under new administration	Demand resilient; policy watched, no material impact yet

Management Commentary

Strategy and scale: “We ended Q3 with $1.35 billion in ARR, growing 35% year-over-year. We also delivered a quarterly record 10% adjusted free cash flow margin… We now process more than 10 trillion data points and 70 billion miles driven annually” — CEO Sanjit Biswas .
Operating leverage: “We delivered quarterly records across all key non-GAAP profitability metrics, including a 78% gross margin, an 11% operating margin and a 10% free cash flow margin” — CFO Dominic Phillips .
Outlook tone: “We’re raising our full year guidance across all key metrics… we believe we’re well positioned to continue delivering durable and efficient growth” — CFO Dominic Phillips .
International/localization: New features for Europe (Low Bridge Strikes, EBPMS) and Mexico (Engine Immobilizer 2.0) tailored to regional needs .
AI vision: Samsara Intelligence to embed AI across platform; Assistant and Intelligent Experiences in beta to drive safety, maintenance, and frontline workflows .

Q&A Highlights

AI monetization and roadmap: Pricing/packaging for Samsara Intelligence to be finalized post-beta; continued investment in core AI across platform .
Mix of new vs expansion: Slight tilt to expansions; balanced new logo adds remain strong; sales model maintains relationships from land through life .
Demand linearity/election impact: Q3 linearity consistent; minor election-related delays already closed in Q4; no material impact .
Policy uncertainty: Preparing strategies under different scenarios, experienced supply chain navigation; will reflect in guidance when clearer .
Asset Tag use cases: Broad adoption across industries; three core ROI drivers—loss prevention, labor time savings, utilization improvement .
Public sector strength: Record 16 deals >$100k; continued investment paying off .

Estimates Context

S&P Global consensus retrieval was unavailable at time of request, so formal beat/miss vs Wall Street estimates cannot be confirmed.*
Management indicated confidence in current Street dollars for next year: “We do feel good with where the current consensus dollars are right now… we’ll provide more formal guidance on the next earnings call” — CFO Dominic Phillips .
Given Q3 actuals materially exceeded prior quarter guidance for revenue, non-GAAP operating margin, and non-GAAP EPS, estimate revisions are likely to move higher on FY25 profitability metrics and Q4 non-GAAP EPS/margin, contingent on Street models aligning to raised guidance .

*Values would normally be retrieved from S&P Global.

Key Takeaways for Investors

Quality beat vs guidance: Revenue, non-GAAP EPS, and margins exceeded prior guidance; FY25 outlook raised across revenue, operating margin, and EPS, with Q4 margin/EPS lifted — signaling durable growth and improving profitability .
Multiproduct engine scaling: Large-customer adds and expansions, with >70% of large multiproduct customers using non-vehicle applications, support sustained DBNRR (115%/120%) and higher ARR/customer .
International is a rising contributor: 17% net new ACV from international (Mexico/Europe) and localized feature launches point to continued mix expansion and multi-year runway .
AI platform advantage: Samsara Intelligence leverages a unique, scaled dataset (>10T data points, 70B miles) to embed AI across operations; monetization framework to be finalized post-beta, but strategic positioning is strong .
Watch non-GAAP vs GAAP gap: GAAP losses persist due to stock-based compensation and other items; non-GAAP profitability and FCF are improving sharply — important for valuation narratives .
Q4 seasonality and calendar: Fewer weeks vs prior year reduce YoY optics; adjusted growth metrics and guidance already reflect the headwind .
Near-term trading lens: Raised guidance and record margins are positive catalysts; monitor follow-through on AI product availability, international wins, and Q4 execution consistent with maintained revenue guide and raised margin/EPS .

Samsara Inc. (IOT)·Q3 2025 Earnings Summary