Symbotic Inc.
SYM · Nasdaq
Next quarter
Expected to report Nov 23, 2026 — estimated from last year’s reporting date.
Consensus is $0.07 EPS for Sep 2026 across 5 estimates, ranging $0.02 to $0.10.
SYM Jun 2026
- 0.00%
- -14.88%
- $0.09
- $0.09
- —
- $720.84M
Reported results
- $720.84M
- 22.32%
- $32.90M
- 4.56%
- $11.67M
- $0.09
Highlights
- Revenue: Q3 revenue rose 22% year over year to $720.8 million, up from $592.1 million in Q3 FY2025 and $676.5 million in Q2 FY2026.
- Earnings: Diluted EPS was $0.09, matching consensus; net income was $55.0 million versus a $21.2 million loss a year earlier, while net income attributable to common stockholders was $11.7 million versus a $3.9 million loss.
- Profitability: Operating income increased to $32.9 million from $6.1 million in Q2 and a $25.8 million loss in Q3 FY2025; adjusted EBITDA reached $95.2 million versus $77.8 million in Q2 and $45.4 million a year earlier.
- Gross margin: GAAP gross margin expanded to 22.3% from 18.9% year over year, while adjusted gross margin increased to 25.0% from 21.5%.
- Deployments: Systems revenue grew 20% to $671.0 million, supported by 77 systems in deployment versus 46 a year earlier; 56 operational systems were under maintenance contracts versus 42.
- Backlog: Remaining performance obligations totaled approximately $22.5 billion, with about 15% expected to convert to revenue over the next 12 months; Walmart and Exol comprise the vast majority.
- Outlook: Symbotic guided Q4 revenue to $760 million-$780 million and adjusted EBITDA to $100 million-$105 million.
- Cash flow: Q3 free cash flow was negative $164.6 million, driven partly by a $155.9 million use from accounts receivable; cash and equivalents ended at $1.75 billion, down from $2.01 billion at the prior quarter-end.
Analysis
Symbotic delivered a clean revenue and EPS quarter against expectations, with diluted EPS of $0.09 exactly matching the $0.09 consensus. Revenue of $720.8 million increased 22% year over year from $592.1 million and 6.6% sequentially from $676.5 million. The result also marked a sharp improvement in profitability: operating income rose to $32.9 million from a $25.8 million loss a year ago and $6.1 million in Q2, while adjusted EBITDA more than doubled year over year to $95.2 million. Consolidated net income was $55.0 million, although only $11.7 million was attributable to common stockholders because of $43.3 million attributable to noncontrolling interests.
The print was primarily about execution at scale and margin conversion. Systems revenue grew 20% as deployments increased to 77 from 46, and GAAP gross margin expanded 340 basis points to 22.3%. However, cash conversion was weak in the quarter: free cash flow was negative $164.6 million versus negative $211.4 million a year ago, reflecting working-capital investment and a $155.9 million accounts-receivable outflow. The company remains heavily concentrated, with one customer representing 90.5% of quarterly revenue, and continues to carry a material internal-control weakness. Q4 guidance calls for another step up to $760 million-$780 million of revenue and $100 million-$105 million of adjusted EBITDA.
Deployment-led growth
- Systems: Systems revenue increased 20% year over year to $671.0 million, with 77 systems in deployment during the quarter compared with 46 in Q3 FY2025.
- Recurring services: Software maintenance and support revenue rose 57% to $12.8 million, reflecting 56 operational systems under contract versus 42 a year ago. Operation services revenue increased 49% to $37.1 million.
- Near-term outlook: Q4 revenue guidance of $760 million-$780 million implies sequential growth of approximately 5%-8% from Q3, while adjusted EBITDA guidance of $100 million-$105 million implies another increase from $95.2 million.
Margin and earnings expansion
- Gross profit: Gross profit rose 44% year over year to $160.9 million, and GAAP gross margin improved to 22.3% from 18.9%. Management attributed the improvement to project execution, cost discipline and capturing more customer value, partly offset by tariffs.
- Operating leverage: Operating expenses fell to 17.8% of revenue from 23.2% a year earlier, despite SG&A increasing 18% to $84.2 million. R&D declined 12% to $43.8 million, and there were no restructuring charges versus $16.4 million in Q3 FY2025.
- Adjusted results: Adjusted gross margin reached 25.0%, up from 21.5%, and adjusted EBITDA rose to $95.2 million from $45.4 million. The non-GAAP measure includes a $50.5 million stock-based compensation adjustment and excludes a $19.4 million fair-value gain on strategic investments.
Backlog and customer concentration
- Backlog: Remaining performance obligations were approximately $22.5 billion at quarter-end, primarily undelivered or partially delivered systems under Walmart and Exol agreements. Symbotic expects about 15% to be recognized in the next 12 months and 62% within 13-60 months.
- Concentration: One customer accounted for 90.5% of quarterly revenue, compared with 83.8% a year earlier, and 82.8% of accounts receivable at quarter-end. The filing identifies Walmart and Exol as comprising the vast majority of the backlog.
- Exol: Symbotic recognized $41.1 million of revenue from Exol-related customer contracts in the quarter and recorded a $9.6 million equity-method loss. Its Exol investment was $140.5 million, with stated maximum exposure to loss of $1.49 billion, including $1.49 billion of future funding commitments.
Cash and working capital
- Quarterly cash flow: Operating cash flow was negative $147.3 million and free cash flow was negative $164.6 million, despite $55.0 million of consolidated net income. Accounts receivable consumed $155.9 million and inventories consumed $23.8 million.
- Liquidity: Cash and cash equivalents were $1.75 billion at June 27, down from $2.01 billion at March 28, but up from $1.24 billion at fiscal year-end. Including restricted cash, total cash was $1.77 billion.
- Funding and commitments: Nine-month operating cash flow was $305.6 million and free cash flow was $242.8 million, helped by customer payments and deferred revenue. The company had $1.08 billion of vendor commitments, including $1.02 billion due within one year.
Controls and execution risks
- Internal controls: Management again concluded that disclosure controls were ineffective because a material weakness over the timing of cost-of-revenue recognition remained outstanding. The planned remediation includes a long-term ERP solution targeted for fiscal 2027.
- Warranty program: A $34.3 million liability recorded in Q2 for component replacements and related repairs was unchanged in Q3; the company expects the program to be completed within one year.
- Litigation: A securities class action remains pending after the court granted in part and denied in part Symbotic’s motion to dismiss on July 23, 2026. The company says it cannot estimate a potential loss.
