Symbotic Inc. (SYM) Q3 2025 Earnings Summary

Executive Summary

Revenue rose 26% year-over-year to $592.1M, gross margins improved, and adjusted EBITDA increased to $45.4M; GAAP net loss was $31.9M and Class A EPS was -$0.05 .
Management launched a next-generation storage structure expected to temporarily shift deployment schedules, with no impact to the $22.4B backlog; Q4 FY25 guidance set at $590–$610M revenue and $45–$49M adjusted EBITDA .
Cash and equivalents declined $177M sequentially to $777.6M and free cash flow was -$153.2M in Q3 due to operating cash flow timing and investment activity .
Stock catalysts: further scale benefits and margin expansion from shorter installs, mix shift, and the new storage system; near-term revenue timing reflects schedule adjustments tied to the storage transition .

What Went Well and What Went Wrong

What Went Well

Year-over-year revenue growth of 26% to $592.1M with adjusted EBITDA rising to $45.4M; CFO: “Revenue grew 26% and gross margins improved once again year-over-year.” .
Execution improvements: shorter install-to-acceptance timelines and project mix shifting away from lower-margin systems, alongside accretive contribution from Walmart ASR development work (Q2 remarks establish trajectory) .
Strategic product innovation: commercial launch of next-gen storage structure for faster deployments, higher density, improved safety; CEO: “game-changing innovations … next generation storage structure.” .

What Went Wrong

GAAP net loss widened sequentially to -$31.9M and EPS was -$0.05; operating cash outflows caused cash to fall by $177M quarter-over-quarter .
Free cash flow turned negative (-$153.2M) versus Q2 positive FCF, reflecting operating cash timing and increased investment; OpEx remained elevated as growth investments continued .
Near-term revenue impact anticipated from schedule shifts to adopt the new storage structure; management guided Q4 revenue roughly flat to slightly up versus Q3 on this transition .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($USD Millions)	$470.3	$549.7	$592.1
Gross Profit Margin (%)	11.7%	19.6%	18.2%
Adjusted Gross Profit Margin (%)	13.6%	22.2%	21.5%
Net Loss ($USD Millions)	$(26.7)	$(21.4)	$(31.9)
EPS (Class A, Basic & Diluted, $USD)	$(0.05)	$(0.04)	$(0.05)
Adjusted EBITDA ($USD Millions)	$2.7	$34.7	$45.4

Segment Revenue ($USD Millions)	Q3 2024	Q2 2025	Q3 2025
Systems	$450.6	$513.4	$559.1
Software Maintenance & Support	$3.5	$6.7	$8.1
Operation Services	$16.2	$29.6	$24.9
Total Revenue	$470.3	$549.7	$592.1

KPIs	Q3 2024	Q2 2025	Q3 2025
Operational Systems (count)	25	37	42
Systems in Deployment (count)	44	46	46
Backlog ($USD Billions)	$22.4	$22.7	$22.4
Free Cash Flow ($USD Thousands)	$33,241	$249,015	$(153,210)
Cash and Equivalents ($USD Thousands)	$870,469	$954,944	$777,576

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD Millions)	Q3 2025	$520–$540	Actual: $592.1	Beat vs guidance
Adjusted EBITDA ($USD Millions)	Q3 2025	$26–$30	Actual: $45.4	Beat vs guidance
Revenue ($USD Millions)	Q4 2025	N/A	$590–$610	New
Adjusted EBITDA ($USD Millions)	Q4 2025	N/A	$45–$49	New

Notes: Management highlighted a temporary short-term revenue impact from schedules shifting to accommodate the next-generation storage structure, without affecting backlog .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2025)	Previous Mentions (Q2 2025)	Current Period (Q3 2025)	Trend
AI/Technology initiatives	New CTO; simulation tools; Omni Labs acquisition to accelerate deployment	LiDAR/Vision-enabled bots, remote ops, higher-energy battery; reliability and lower operating costs	Launch of next-gen storage: higher density, rapid assembly, enhanced safety/fire suppression	Broadening tech stack; deployment speed focus
Supply chain/tariffs/macro	Immaterial China exposure; pass-through protections; monitoring Mexico/Canada	Tariffs primarily Europe; costs pass-through; single-digit % system exposure; revenue up but margin drag	Revenue timing shifts due to storage transition; backlog intact; Q4 set with cautious range	Managing macro/tariff impacts; prioritizing schedule efficiency
Product performance (BreakPack/APD)	APD program with Walmart; development before prototypes; ~400 stores potential post-performance criteria	BreakPack second design; ASR accretive margins; APD services small in recurring	Continued APD development; prototypes to be classified in systems revenue (Q3 call)	Scaling multi-product portfolio
GreenBox JV progress	Early stage, build-outs; limited near-term revenue; management team build-out	3rd site begun; CEO hired; coasts build-out; prospecting continues	Ongoing deployment; schedule focus; no Q3-specific expansion disclosed in release	Building capacity; accelerating sales efforts
Backlog/Regional trends	Backlog stable at $22.4B; Walmex engagement; international inquiries	Backlog grew to $22.7B (ASR dev added); revenue burns offset	Backlog remained highly visible at $22.4B, supporting long-term value	Stable visibility
Internal controls/R&D execution	Control remediation progress; no deficiencies in tests; multi-quarter effort	OpEx step-up; SG&A to step down next quarter by ~$4–$5M; margins improving	Guidance reflects storage transition; innovation cadence maintained	Investing for scalability; cost discipline

Management Commentary

CEO: “We continue to deliver strong results and drive operational progress … with our next generation storage structure.” .
CFO: “Revenue grew 26% and gross margins improved once again year-over-year … we expect a temporary short-term impact on revenue based on schedules shifting to accommodate [the storage structure]. Importantly, the new structure does not affect our backlog and supports our long-term value creation.” .
Q2 context on execution: “Installation to acceptance timelines were roughly 2 months shorter … and these systems were 15% larger in size than our historical average for Phase 1 systems. Normalizing for size … improvement … more than 30% better.” .

Q&A Highlights

Storage transition and guidance: Management signaled schedule shifts to adopt the new storage structure, setting Q4 revenue at $590–$610M and adjusted EBITDA at $45–$49M, and noted similar schedule impacts may occur in early 2026 while enabling faster scale over time .
APD development accounting: Prototype build and development revenue will be classified in the systems line; the program maintains revenue visibility through development phases (Q3 call) .
Leadership transition: CFO successor designate Izzy Martins to become CFO effective August 9, underscoring continuity in financial leadership (Q3 call) .
Tariffs & margin mechanics (from Q2): Tariff costs largely pass through, increasing revenue but can depress system gross margins; primary exposure from Europe, single-digit percent of a typical system .

Estimates Context

S&P Global consensus for Q3 FY25 and Q4 FY25 EPS, revenue, and EBITDA was unavailable via our data feed; as a result, comparisons to Wall Street consensus cannot be reliably presented. Where estimates are missing, we note they were unavailable from S&P Global at the time of analysis.

Key Takeaways for Investors

Execution is improving with shorter installs and favorable mix, driving adjusted EBITDA growth and sustained adjusted gross margin expansion; watch for continued scale benefits in 2H and FY26 .
Near-term revenue timing will reflect adoption of the next-gen storage structure, but backlog and long-term value creation remain intact; Q4 guidance brackets a modest sequential increase vs. Q3 .
Cash usage in Q3 and negative FCF reflect timing and investment; liquidity remains strong at $777.6M cash and equivalents after Q3 .
Multi-product portfolio progress (core warehouse systems, BreakPack, APD) and GreenBox sites underpin diversified growth vectors across retail, grocery, and 3PLs .
Margin drivers: completion of lower-margin legacy projects, ASR development contributions, and software margins trending in the 60s% provide tailwinds; tariffs are pass-through but can dilute system gross margins .
Stock setup: narrative shifts toward technology-led deployment speed (new storage), margin resilience, and backlog visibility; investors should focus on cadence of system starts/completions, software revenue growth, and progress on APD prototypes .

References:
Press release and 8-K financials: . Investor presentation KPIs/backlog: . Q2 transcript: . Q1 transcript: . Next-gen storage press release: . IR Q3 official transcript & financial release: .