Executive Summary

Revenue rose 45% sequentially to $16.21M on carrier/product launches (XP Pro, XP Pro Thermal, MegaConnect HPUE), while GAAP net loss improved to $(4.75)M from $(7.48)M in Q2 .
Gross margin was 11% (up from 8% in Q2) as mix improved, though additional labor for quality/software issues weighed on profitability; Adjusted EBITDA improved to $(2.01)M vs $(3.15)M in Q2 .
Balance sheet showed $2.14M cash, $3.50M AR, and $10.99M inventory at quarter-end; the company raised ~$4.8M net in equity offerings to support launches and one-time costs .
Strategic transaction: asset sale to NEXA (formerly Social Mobile) for $15.0M cash plus up to $5.0M earn-out remains expected to close late Q4, with reverse split (1-for-18) restoring Nasdaq compliance and authorized shares increased to 1B, potential stock catalysts into Q4 .

What Went Well and What Went Wrong

What Went Well

Strong sequential growth: “Revenue increased 45% sequentially… driven by demand for new product portfolio and the successful launch of the MegaConnect HPUE mobile hotspot” .
Go-to-market execution: Launched MegaConnect 5G HPUE with AT&T/FirstNet; XP Pro with T-Mobile and Canadian carriers; XP Pro Thermal with Deutsche Telekom; XP3plus 5G feature phone at AT&T; expanding European reseller channels .
Profitability trend: Adjusted EBITDA improved sequentially to $(2.01)M from $(3.15)M, and net loss narrowed as OpEx decreased and sales improved .
CEO tone: “Pivotal transition… early success of our refreshed portfolio… making significant progress toward completing the sale of our assets to NEXA Mobility” .

What Went Wrong

Gross margin pressure: 11% GM in Q3 (from 8% in Q2), with “additional labor costs… to address quality control and software issues” weighing on margins .
Continued GAAP losses: Net loss of $(4.75)M, reflecting one-time proxy and asset-sale-related costs and higher operating costs .
Limited formal guidance and estimate visibility: No explicit revenue/earnings guidance; Wall Street consensus coverage appears limited for EPS/revenue (S&P Global). Values retrieved from S&P Global.

Financial Results

Consolidated Performance (USD, oldest → newest)

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$15.02	$16.72	$11.19	$16.21
Gross Profit ($USD Millions)	$4.23	$8.36	$0.85	$1.82
Gross Profit Margin %	—	50%	8%	11%
Total Operating Expenses ($USD Millions)	$6.61	$7.71	$7.58	$5.80
Operating Income ($USD Millions)	$(2.38)	$0.65	$(6.73)	$(3.98)
Net Income ($USD Millions)	$(2.51)	$0.46	$(7.48)	$(4.75)
Diluted EPS ($USD)	$(9.32)	$0.08	$(0.79)	$(4.83)
Adjusted EBITDA ($USD Millions, non-GAAP)	—	$(3.25)	$(3.15)	$(2.01)

Sequential changes:

Revenue: +45% QoQ to $16.21M .
Gross margin: 8% → 11%; mix improved but quality/software remediation costs impacted margins .
Net loss: $(7.48)M → $(4.75)M, aided by higher sales and reduced S&M and R&D expenses .

Year-over-year snapshot (Q3 YoY):

Metric	Q3 2024	Q3 2025	YoY Delta
Revenue ($USD Millions)	$15.02	$16.21	+$1.19
Gross Profit ($USD Millions)	$4.23	$1.82	−$2.41
Operating Income ($USD Millions)	$(2.38)	$(3.98)	−$1.60
Net Income ($USD Millions)	$(2.51)	$(4.75)	−$2.24
Diluted EPS ($USD)	$(9.32)	$(4.83)	+$4.49

Notes: YoY revenue up modestly, but GP/operating income/net income worsened, reflecting higher remediation and one-time costs .

KPIs and Balance Sheet

KPI	Q1 2025	Q2 2025	Q3 2025
Cash & Equivalents ($USD Millions)	$2.12	$2.01	$2.14
Accounts Receivable, Net ($USD Millions)	$4.85	$2.87	$3.50
Inventory ($USD Millions)	$8.62	$9.89	$10.99
Net Equity Raise (period-related) ($USD Millions)	$4.5 subsequent ATM proceeds	$7.1 subsequent offering & debt proceeds	~$4.8 net equity proceeds during Q3

Segment breakdown: Not disclosed in filings; revenue discussed at consolidated level .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q4 2025	None provided	None provided	Maintained (no formal guidance)
Gross Margin	FY/Q4	None provided	None provided; commentary on quality/software costs	Maintained (no formal guidance)
Operating Expenses	FY/Q4	None provided	Commentary: OpEx decreased QoQ due to lower S&M and R&D	Informational (no formal guidance)
Strategic Transaction Close	Q4 2025	Expected Q4 close (Social Mobile/NEXA)	Expected late Q4 close (NEXA)	Maintained timeline

No explicit numerical guidance provided for revenue, margins, OpEx, tax, OI&E, or dividends .

Earnings Call Themes & Trends

Note: No Q3 earnings call transcript was available in the document catalog; themes derived from Q1–Q3 press releases and 8-Ks .

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 2025)	Trend
Product launches & carrier traction	Q1: XP Pro Thermal introduced; Verizon/T-Mobile certifications; Europe expansion . Q2: XP Pro launch at AT&T; H500 hotspot shipments to DT/Telenor/Swisscom; Verizon promo slot .	Multiple launches: MegaConnect 5G HPUE with AT&T/FirstNet; XP Pro with T-Mobile/Canada; XP Pro Thermal with Deutsche Telekom; XP3plus 5G at AT&T; European reseller expansion .	Improving execution and breadth
Quality/software remediation	Not highlighted in Q1; Q2 focus on impairment of legacy assets .	Additional labor costs to address quality control/software issues impacted margin .	Emerging headwind
Strategic transaction (NEXA/Social Mobile)	Definitive agreement announced; expected Q4 close .	Progress toward completing sale; expected late Q4 close .	On track
Legal/proxy/hostile activity	Proxy battle costs and contested solicitation noted .	One-time expenses tied to hostile takeover and strategic initiatives .	Ongoing but easing into close
Nasdaq compliance/capital actions	Noted RTO exploration; capital raises .	Reverse split 1-for-18 to regain compliance; authorized shares increased to 1B; ~$4.8M equity proceeds .	Compliance achieved; financing flexibility
R&D execution & OpEx discipline	Q1: R&D down after major dev spend in 2024; Adjusted EBITDA improved . Q2: R&D decreased; OpEx stable; Adjusted EBITDA flat .	OpEx decreased QoQ (lower S&M and R&D); Adjusted EBITDA improved .	Improving
Tariffs/macro/supply chain	Risk disclosures on tariffs and manufacturing reliance .	Continued risk disclosures; no specific new macro drivers .	Stable risk backdrop

Management Commentary

CEO (Q3): “Pivotal transition… the successful launch of the MegaConnect HPUE mobile hotspot… we are making significant progress toward completing the sale of our assets to NEXA Mobility… We remain committed to building on this momentum and delivering value to stockholders in the fourth quarter.”
CFO (Q3): “One-time expenses related to the proxy contest, due diligence for the asset sale, and preparations for a special shareholder meeting… While these costs affected our short-term results, they position us to complete key transactions and unlock future value.”
CEO (Q2): “Tier-one carrier launches… debuted Sonim MegaConnect… energized by overwhelming customer enthusiasm and robust orders… agreement for Social Mobile to acquire Sonim underscores the value of our innovation and market strategy.”
CFO (Q2): “One-time expenses… legal fees… timing shifts of product shipments impacted short-term financials… exploring strategic opportunities to monetize our Nasdaq listing and deliver maximum value.”
CEO (Q1): “Strategic investments in new products are delivering results, as more carriers and distributors are choosing to offer our products… on track for additional product launches throughout 2025.”

Q&A Highlights

Not available; no Q3 2025 earnings call transcript was included in the available filings; the quarter’s communication was via 8-K press release with Exhibit 99.1 .

Estimates Context

Coverage by S&P Global appears limited for Q3 2025, with consensus values unavailable for EPS and revenue; comparisons below therefore rely on actual reported results.

Metric	Q3 2025 Consensus (S&P Global*)	Q3 2025 Actual
Primary EPS Consensus Mean	Unavailable*	$(4.83)
Revenue Consensus Mean ($USD Millions)	Unavailable*	$16.21
EBITDA Consensus Mean ($USD Millions)	Unavailable*	Adjusted EBITDA: $(2.01)

Values retrieved from S&P Global*.

Implications: With limited sell-side coverage and no formal guidance, estimate recalibration post-Q3 is likely modest; sequential improvement in revenue and EBITDA may support more constructive near-term expectations on margin recovery contingent on quality/software remediation costs easing .

Key Takeaways for Investors

Sequential rebound: Revenue +45% QoQ to $16.21M on broad carrier launches; net loss narrowed to $(4.75)M, and Adjusted EBITDA improved to $(2.01)M .
Margin watch: Gross margin at 11% reflects remediation labor for quality/software; monitor Q4 for normalization and mix benefits from higher-margin devices .
OpEx discipline: QoQ OpEx fell to $5.80M, driven by lower S&M and R&D; supports operating leverage if revenue momentum persists .
Balance sheet/liquidity: $2.14M cash, $10.99M inventory; ~$4.8M net equity raised in Q3; subsequent financing actions in prior quarters improve working capital for launches .
Strategic catalyst: Asset sale to NEXA for $15.0M cash + up to $5.0M earn-out targeted for late Q4; reverse split achieved Nasdaq compliance—key corporate actions that can drive stock narrative .
Estimate visibility low: Limited S&P Global consensus data; trading may be headline-driven (deal progress, carrier uptake, margin normalization) rather than “beat/miss” dynamics (S&P Global*).
Near-term setup: Focus on Q4 product sell-through, quality/software cost normalization, and transaction closing; medium-term thesis depends on post-sale strategy and potential monetization of Nasdaq listing .

Appendix: Source Tables

Q3 2025 Statements of Operations and Balance Sheet
Q2 2025 Statements of Operations and Balance Sheet
Q1 2025 Statements of Operations and Balance Sheet

Non-GAAP Adjusted EBITDA reconciliation: Q3 $(2.01)M; Q2 $(3.15)M; Q1 $(3.25)M .

SONIM TECHNOLOGIES INC (SONM)·Q3 2025 Earnings Summary