EPS of $-0.02 increased by 90.5% from previous year
Gross margin of 76.8%
Net income of -11.20M
""FY25 was another year of durable and efficient growth for Samsara. We ended FY25 with $1.46 billion in ARR, achieving 32% year-over-year growth or 33% year-over-year adjusted growth."" - Samsara Management (Sanjit Biswas)
Samsara delivered a robust Q4 FY2025, underscoring durable, enterpriseâgrade growth across its Connected Operations Cloud. Revenue of $346.3 million rose 25% year over year, while annual revenue for FY2025 reached $1.25 billion, up 33% YoY. Ending ARR stood at $1.46 billion, a 32% YoY increase, with large customers (>$100k ARR) totaling 2,506 and 118 customers at $1 million+ ARR, signaling meaningful scale and multiâproduct expansion potential. Management highlighted a strategic shift toward landing very large enterprise accounts and accelerating expansion within existing relationships, supported by a broad multiâproduct platform and a data asset that the company argues can power AIâdriven improvements for years to come.
Key Performance Indicators
Revenue
346.29M
QoQ: 7.55% | YoY:25.34%
Gross Profit
265.99M
76.81% margin
QoQ: 8.14% | YoY:28.34%
Operating Income
-18.41M
QoQ: 61.13% | YoY:66.12%
Net Income
-11.20M
QoQ: 70.37% | YoY:90.12%
EPS
-0.02
QoQ: -110.47% | YoY:90.52%
Revenue Trend
Margin Analysis
Key Insights
Revenue: $346.29M, up 25% YoY; 36% adjusted growth (Q4 FY2025) per management commentary; FY2025 revenue $1.25B, up 33% YoY (adjusted 37% YoY due to the 14âweek quarter in the prior year and constant currency effects).
Gross margin: 76.8% (GAAP gross margin); nonâGAAP gross margin 78% (as highlighted in the earnings call).
Net income and earnings: GAAP net income -$11.20M; net margin -3.23%; GAAP EPS -$0.0199; nonâGAAP EPS +$0.05â$0.06 in Q1 guidance.
ARR and customers: Net new ARR of $109M in Q4; ending ARR of $1.46B (YoY +32%); 2,506 customers with $100k+ ARR (up 36% YoY; record quarterly add of 203); 118 customers with $1M+ ARR (up 44% YoY; quarterly add 14).
Financial Highlights
Key Q4 FY2025 metrics and context:
- Revenue: $346.29M, up 25% YoY; 36% adjusted growth (Q4 FY2025) per management commentary; FY2025 revenue $1.25B, up 33% YoY (adjusted 37% YoY due to the 14âweek quarter in the prior year and constant currency effects).
- Gross margin: 76.8% (GAAP gross margin); nonâGAAP gross margin 78% (as highlighted in the earnings call).
- Operating income: GAAP -$18.41M, margin -5.32%; EBITDA: -$12.34M; NonâGAAP operating margin: +16% in Q4 (management note), with fullâyear trajectory guided toward midâteens.
- Net income and earnings: GAAP net income -$11.20M; net margin -3.23%; GAAP EPS -$0.0199; nonâGAAP EPS +$0.05â$0.06 in Q1 guidance.
- ARR and customers: Net new ARR of $109M in Q4; ending ARR of $1.46B (YoY +32%); 2,506 customers with $100k+ ARR (up 36% YoY; record quarterly add of 203); 118 customers with $1M+ ARR (up 44% YoY; quarterly add 14).
- ARR mix and attach: Average ARR per $100k+ ARR customer rose to $323k (vs $313k YoY); 55% of $100k+ ARR customers are now in the >$100k tier (up from 52% YoY).
- Net retention and international: Target net retention rate around 115% for core and ~120% for large customers; 17% of net new ACV from international geographies in Q4 (Mexico and the UK highlighted).
- Product and platform: 62% of large customers use three or more products (up from 58% YoY, 54% two years ago); 15% of net new ACV from nonâvehicle products in Q4 (highest in 10 quarters); asset tags and safety/maintenance enhancements cited as accelerants for expansion.
- Cash flow and liquidity: Operating cash flow of $53.86M; free cash flow of $48.51M; capex $5.35M; net change in cash $65.21M; cash and cash equivalents $227.58M; total cash and shortâterm investments $694.80M; net debt of $(147.30)M; total debt $80.28M. Current ratio 1.50, quick ratio 1.45, DSO ~60.8 days.
- Outlook and guidance: Q1 revenue expected to be $350â$352M (+25% YoY; +26% to +27% CC; includes ~$5M FX headwind); nonâGAAP operating margin ~7%; nonâGAAP EPS $0.05â$0.06. FY2026 revenue guidance of $1.523â$1.533B (+22â23% YoY; +23â24% CC; includes ~$11M FX headwind); nonâGAAP operating margin ~11%; nonâGAAP EPS $0.32â$0.34. Management emphasized the continued transition to large enterprise opportunities and the broad growth runway from the platformâs multiâproduct functionality.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
346.29M
25.34%
7.55%
Gross Profit
265.99M
28.34%
8.14%
Operating Income
-18.41M
66.12%
61.13%
Net Income
-11.20M
90.12%
70.37%
EPS
-0.02
90.52%
-110.47%
Key Financial Ratios
currentRatio
1.5
grossProfitMargin
76.8%
operatingProfitMargin
-5.32%
netProfitMargin
-3.23%
returnOnAssets
-0.55%
returnOnEquity
-1.05%
debtEquityRatio
0.08
operatingCashFlowPerShare
$0.1
freeCashFlowPerShare
$0.09
priceToBookRatio
27.15
priceEarningsRatio
-647.88
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Management insights and commentaries by theme:
- Strategy and market positioning: Sanjit Biswas stressed Samsara is in the early stages of digitizing a massive market and aims to expand core vehicle applications into a multiâbillion dollar business, with a broader opportunity beyond vehicles still in early innings. âWeâre in the early stages of digitizing a massive market⌠expanding our core applications into a multiâbillion dollar business.â This underscores the strategic importance of expanding product breadth and enterprise focus.
- Enterprise growth and product expansion: Dominic Phillips highlighted that Q4 delivered records in gross margin, operating margin, and free cash flow margin, driven by a balance of new logos and expansions. He noted that 9 of the top 10 new customers signed with multiple products, and international contribution remained meaningful (17% of net new ACV). âWe ended Q4 with⌠quarterly records for gross margin, operating margin, and free cash flow margin.â
- AI and data scale: On AI and data assets, Samsara emphasized its AI ambitions and the scale of its data operations, citing over 14 trillion data points processed yearly and 120 billion API calls, driving safety, efficiency, and sustainability improvements. Biswas stated the company believes AI will transform operations and that Samsara is uniquely positioned to apply AI on top of its data asset.
- Asset tagging and nonâvehicle monetization: The management highlighted the viewerâlevel momentum around asset tags, including ROI examples (e.g., an ROI >7x with a large gas/water utility customer). Sanjit pointed to three primary asset tag use cases: locating lost assets, locating assets on job sites, and understanding asset utilization, signaling monetization potential beyond traditional telematics.
- International and vertical momentum: The company cited Mexico and the UK accelerating net new ACV and public sector momentum, with MiamiâDade leading a >$1M transaction. This demonstrates diversification beyond the US and into higherâgrowth international markets as a nearâterm catalyst.
- Talent and culture, execution: Analysts asked about hiring and culture; Samsara reiterated its focus on scaling headcount with a balance of culture, noting awards such as Frost & Sullivanâs 2024 Company of the Year and BuiltInâs 2025 Best US Large Company to Work For as validations of its talent strategy.
"FY25 was another year of durable and efficient growth for Samsara. We ended FY25 with $1.46 billion in ARR, achieving 32% year-over-year growth or 33% year-over-year adjusted growth."
â Samsara Management (Sanjit Biswas)
"Q4 was another quarter of durable and efficient growth. The quarter was highlighted by achieving several new records across important operating metrics including surpassing $100 million in quarterly net new ARR, adding 203 $100,000 plus ARR customers and 14 $1 million dollar plus ARR customers and achieving quarterly records for gross margin, operating margin, and free cash flow margin."
â Dominic Phillips
Forward Guidance
Guidance and outlook assessment:
- Nearâterm trajectory: For Q1, Samsara expects revenue in a range of $350â$352 million, up ~25% YoY, with 26â27% constant currency growth and a $5 million FX headwind. NonâGAAP operating margin is guided to about 7%, and nonâGAAP EPS to $0.05â$0.06. This implies continued topâline strength with modest margin expansion on a nonâGAAP basis as the mix shifts and operating leverage builds.
- Full year expectations: FY2026 guidance projects revenue of $1.523â$1.533 billion, equating to roughly 22â23% YoY growth (23â24% in constant currency, excluding FX effects of about $11 million). NonâGAAP operating margin is targeted around 11%, with nonâGAAP EPS of $0.32â$0.34.
- Margin dynamics and profitability: The shift toward enterprise deals and continued product expansion (3+ products per large customer, new categories such as asset tags and safety/maintenance) should support operating margin expansion on a nonâGAAP basis, albeit with ongoing reinvestment in sales, goâtoâmarket capacity, and product development. Management noted most of the margin expansion in prior periods occurred in the back half of the year due to mix and scale; the FY26 guide maintains a stepâup in profitability as the mix evolves.
- Risks and monitoring: CFO commentary addressed FX sensitivity and macro headwinds; guidance embeds multiple scenarios. Investors should monitor: (1) pace of largeâenterprise bookings and time to scale; (2) acceleration of nonâvehicle productsâ attachment and monetization (Samsara Intelligence); (3) international expansion effectiveness (Mexico, UK, public sector deals); (4) potential raw material and component costs given supply chain dynamics; (5) currency movements and its impact on reported growth.
- Key performance indicators to watch: ARR growth trajectory (target 22â24% CC growth in FY26), net retention stability around 115â120%, and incremental margin expansion driven by higher mix of multiâproduct deployments and productivity gains in GTM and R&D.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
IOT Focus
76.81%
-5.32%
-1.05%
-647.88%
S
74.70%
-35.60%
-4.24%
-27.19%
CFLT
74.10%
-40.50%
-9.16%
-26.15%
MDB
72.80%
-3.38%
0.57%
335.18%
GTLB
89.20%
-9.15%
0.74%
511.02%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Samsara presents a compelling longâterm growth story anchored in a large, underpenetrated market for connected operations. The combination of a scalable, multiâproduct platform, a rapidly expanding enterprise customer base, and a dataâdriven AI strategy supports a durable growth trajectory. Near term, the FY26 guidance implies midâ20s revenue growth and meaningful margin expansion on a nonâGAAP basis as the mix shifts toward larger, multiâproduct deployments and operating leverage accrues. The companyâs strong liquidity position, substantial ARR, and ongoing international and public sector momentum provide multiple catalysts for upside. Investors should monitor progression of asset tagging monetization, Samsara Intelligence monetization timing, international adoption, and the evolution of gross and nonâGAAP operating margins as the company continues its strategic investments in GTM capacity and R&D. Overall, Samsara is well positioned to capitalize on a multiâyear digitization trend in physical operations, albeit with typical growthâstock risks related to macro cycles and execution.
Key Investment Factors
Growth Potential
Samsaraâs addressable market remains large and underâpenetrated. core vehicle telematics already generates >$1B ARR, with telematics and safety penetration still below 50% in many regions. The company expects asset tags and nonâvehicle products to drive meaningful incremental ARR, supported by an expanding data asset (14 trillion data points, 120B API calls) and AIâdriven product enhancements. The international expansion (UK, Mexico) and public sector gains provide multiple levers for acceleration as operating efficiencies become a priority for customers in uncertain macro environments.
Profitability Risk
Key risks include: (1) macroeconomic headwinds and their impact on capex and enterprise budgets; (2) long, multiâyear sales cycles for large enterprise deals; (3) concentration risk among large customers; (4) execution risk in scaling goâtoâmarket and engineering for rapid product expansion; (5) currency volatility affecting reported growth; (6) competitive dynamics as more vendors enter connected operations and video/safety spaces; (7) potential lag in monetization of Samsara Intelligence and AIâdriven offerings.
Financial Position
Financial position remains solid, with ample liquidity and a negative net debt position of approximately $147.3M. As of the quarter, cash and shortâterm investments totaled ~$694.8M, and operating cash flow was ~$53.9M with free cash flow of ~$48.5M. The company holds a healthy current ratio (~1.50) and a robust asset base (total assets ~$2.02B, cash equivalents ~$227.6M, and total liabilities of ~$955.1M). Low leverage and strong cash generation provide a flexible base to fund growth initiatives, share gains, and potential M&A activity in the longer term.
SWOT Analysis
Strengths
Large, rapidly growing ARR base with $1.46B endâofâperiod ARR and 32% YoY growth.
Strong largeâenterprise momentum: 2,506 customers with $100k+ ARR; 118 with $1M+ ARR; 203 net new $100k ARR adds in Q4.
Multiâproduct platform with high attach rates (62% of large customers using 3+ products) and expanding nonâvehicle product mix.
Scale and data asset: 14 trillion data points processed annually; 120B API calls; significant ability to apply AI to operations.
International expansion with meaningful contributions (Mexico, UK) and growing public sector pipeline.
Healthy balance sheet and cash flow generation with substantial liquidity and negative net debt.
Weaknesses
GAAP operating margin negative in Q4 and for FY25; ongoing investment phase required for growth.
Long sales cycles for large enterprise customers introduce visibility risk in forecasting.
Reliance on enterprise deals; concentration risk could materialize if several large customers churn or slow investments.