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Samsara Inc. (IOT)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 FY2025 delivered durable growth and record profitability: revenue $346.3M (+25% YoY; +36% adjusted), non-GAAP gross margin 78%, non-GAAP operating margin 16%, and adjusted FCF margin 14% .
  • Ending ARR reached $1.458B (+32% YoY; +33% adjusted) with 2,506 customers >$100K ARR (+36% YoY); large-customer mix rose to 55% of ARR .
  • Guidance initiated for Q1 FY2026 ($350–$352M revenue; non-GAAP EPS $0.05–$0.06) and FY2026 ($1.523–$1.533B revenue; non-GAAP EPS $0.32–$0.34), implying continued growth with ~11% non-GAAP operating margin for FY2026 .
  • Consensus estimates (S&P Global) were unavailable at the time of analysis due to API limits; however, Q4 and FY25 actuals exceeded prior company guidance midpoints on revenue, margins, and EPS, which should support positive estimate revisions and sentiment near term .

What Went Well and What Went Wrong

What Went Well

  • Record profitability at scale: Q4 non-GAAP gross margin 78%, operating margin 16%, free cash flow margin 14%; CFO highlighted quarterly records across all key non-GAAP profitability metrics .
  • Enterprise momentum and mix shift: 2,506 customers >$100K ARR (+36% YoY), 14 additions >$1M ARR in Q4, average ARR per large customer increased to $323K, and large-customer ARR mix rose to 55% .
  • Strategic narrative on data and AI: “We’re operating at a rare combination of growth, scale, and profitability… partnering with some of the world’s largest and most complex operations organizations” — CEO Sanjit Biswas ; “We processed over 14 trillion data points annually, reflecting over 50% YoY growth” — management highlighting AI leverage .

What Went Wrong

  • GAAP losses persist despite improvement: Q4 GAAP net loss $(11.2)M and GAAP loss per share $(0.02), though sharply better YoY vs $(113.4)M and $(0.21) .
  • Sales cycle variability: Management emphasized multi-year sales cycles with large enterprises are “longer and more variable” and expansions mostly over time versus wall-to-wall upfront — a potential source of intra-quarter timing risk .
  • Macro/geopolitics and tariffs uncertainty: Q&A flagged U.S. macro, geopolitical tensions, and potential tariff impacts; management planning scenario mitigations but noted uncertainty persists .

Financial Results

Headline Metrics vs Prior Year and Prior Quarter

MetricQ4 FY2024Q3 FY2025Q4 FY2025
Revenue ($USD Millions)$276.3 $322.0 $346.3
GAAP Gross Margin (%)75% 76% 77%
Non-GAAP Gross Margin (%)76% 78% 78%
Non-GAAP Operating Margin (%)5% 11% 16%
Adjusted Free Cash Flow Margin (%)6% 10% 14%
GAAP EPS (Basic & Diluted)$(0.21) $(0.07) $(0.02)
Non-GAAP Diluted EPS$0.04 $0.07 $0.11

Notes: Adjusted growth accounts for constant currency and Q4 FY2024 14th week normalization .

KPIs and Operating Metrics

KPIQ3 FY2025Q4 FY2025
Ending ARR ($USD Billions)$1.349 $1.458
Net New ARR ($USD Millions)N/A$109
Customers >$100K ARR (Count)2,303 2,506
Customers >$1M ARR (Count)N/A118
Avg ARR per >$100K Customer ($USD Thousands)$318 $323
ARR Mix from >$100K Customers (%)54% 55%
International Net New ACV Mix (%)17% 17%

Balance Sheet and Cash Flow (Selected)

  • Q4 Operating Cash Flow $53.9M; Adjusted FCF $48.5M .
  • Cash & equivalents at Q4: $227.6M; Short-term investments $467.2M .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Millions)Q4 FY2025$334–$336 Actual $346.3 Beat vs midpoint
Non-GAAP Diluted EPS ($)Q4 FY2025$0.07–$0.08 Actual $0.11 Beat vs range
Non-GAAP Operating Margin (%)Q4 FY20259% Actual 16% Beat vs guide
Revenue ($USD Billions)FY2025$1.237–$1.239 Actual $1.249 Beat vs range
Non-GAAP Diluted EPS ($)FY2025$0.22–$0.23 Actual $0.26 Beat vs range
Non-GAAP Operating Margin (%)FY20257% Actual 9% Beat vs guide
Revenue ($USD Millions)Q1 FY2026N/A$350–$352 Initiated
Non-GAAP Diluted EPS ($)Q1 FY2026N/A$0.05–$0.06 Initiated
Non-GAAP Operating Margin (%)Q1 FY2026N/A~7% Initiated
Revenue ($USD Billions)FY2026N/A$1.523–$1.533 Initiated
Non-GAAP Diluted EPS ($)FY2026N/A$0.32–$0.34 Initiated
Non-GAAP Operating Margin (%)FY2026N/A~11% Initiated

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 FY2025 & Q3 FY2025)Current Period (Q4 FY2025)Trend
AI/Data scaleReached 10T+ data points; announced Samsara Intelligence (Assistant, Intelligent Experiences) 14T+ data points processed; AI use cases across safety, maintenance, training; internal AI adoption Expanding scale and productization
Asset Tags (non-vehicle)First quarter ~$1M net new ACV; industrial-grade Bluetooth; 4-year battery life Strong attach and new use cases; customers ordering thousands; meaningful Q4 contribution Accelerating adoption and attach
Large enterprise motionRecord >$1M ARR additions; multi-product initial lands; longer/variable cycles 14 additions >$1M ARR; record 203 adds >$100K ARR; mix up to 55% ARR Increasing enterprise mix and scale
International (MX, UK)Europe accelerating ARR; Mexico highest-ever mix; local features launched 17% net new ACV from international; MX and UK accelerating Sustained frontier momentum
Macro/tariffsOutlook embedded potential macro worsening; ELD revisits not central to growth Macro and tariffs uncertain; mitigation strategies in place Monitoring, cautious planning
Public sectorVerticalized go-to-market; strong deals in Q3 (record 16 >$100K) Continued focus; large county wins (Miami-Dade) Ongoing strength

Management Commentary

  • “Fiscal year 2025 was another year of durable and efficient growth. We’re operating at a rare combination of growth, scale, and profitability.” — CEO Sanjit Biswas .
  • “Q4 was highlighted by surpassing $100M in quarterly net new ARR… and achieving quarterly records for gross margin, operating margin, and free cash flow margin.” — CFO Dominic Phillips .
  • “We’ve built one of the world’s largest operational data assets… 14T+ data points annually, >50% YoY growth.” — Management highlighting AI/data leverage .
  • “Large strategic enterprise sales cycles can span multiple years and are more variable… many have clear paths to becoming $10M+ ARR.” — CFO .

Q&A Highlights

  • ARR extra week impact: Q4 FY2024 had a 14th week; CFO noted ARR impact is difficult to quantify, but a framework implies ~+$7M to net new ARR last year as a rough heuristic (not adjusted in reported ARR) .
  • Asset Tags trajectory: Strong attach across industries; customers experimenting with phased rollouts; early but promising for FY2026 .
  • Macro/tariffs: Customers seek ROI amid uncertainty; Samsara planning mitigations; guidance philosophy unchanged and conservative to start FY2026 .
  • Mix of new vs expansion: Q4 net new ACV roughly 50/50; expansions target NRR ~115% core / ~120% large customers .
  • Margin drivers: Operating margin outperformance driven mostly by revenue outperformance; margins tend to lever in back half .

Estimates Context

  • S&P Global consensus estimates for Q4 FY2025 and Q1 FY2026 were unavailable at analysis time due to API limits. As a result, explicit “vs. consensus” beats/misses cannot be provided. Values normally retrieved from S&P Global.
  • Given actuals exceeded prior company guidance midpoints for Q4 and FY2025 revenue, non-GAAP margins, and EPS, we expect sell-side models to revisit upward for profitability and FY2026 EPS assumptions; monitor for updated consensus when available .

Key Takeaways for Investors

  • Profitability inflection continues: record Q4 margins and FY2025 non-GAAP operating margin at 9% signal durable scale benefits and efficient growth .
  • Enterprise mix and multi-product adoption are compounding: higher ARR per large customer and rising large-customer ARR mix support sustained ARR expansion .
  • Product velocity broadens TAM: Asset Tags and connected worker offerings (Workflows, Training) add non-vehicle growth vectors, reinforcing platform stickiness .
  • International frontiers provide secondary growth engine: 17% net new ACV from MX/UK in Q4, aided by localized features; expect continued investment .
  • Risk monitor: macro/tariffs and long enterprise cycles can add timing volatility; management’s conservative guidance start and scenario planning mitigate near-term risk .
  • Near-term trading: Actuals ahead of company guidance and initial FY2026 guide with ~11% non-GAAP Op margin should support positive sentiment; await consensus updates to confirm beats/misses.
  • Medium-term thesis: Platform leverage (data+AI) and multi-product expansions across asset-heavy industries underpin a durable growth+profitability profile at rising scale .