Samsara (IOT) Q3 2025 earnings summary

Executive summary

• Achieved Q3 FY25 revenue of $322 million, up 36% year-over-year, and ARR of $1.35 billion, up 35% year-over-year, with 2,303 customers over $100,000 in ARR, a 38% increase.

• Adjusted free cash flow margin reached a quarterly record of 10%, with $31 million in Q3 FY25.

• Launched Samsara Intelligence and expanded AI suite, driving product innovation and operational improvements.

• International markets, especially Mexico and Europe, showed accelerating growth and product adoption.

• Focused on increasing safety, efficiency, and sustainability for global operations, delivering clear ROI.

Financial highlights

• Q3 FY25 revenue was $322 million, up 36% year-over-year; ARR grew to $1.35 billion, up 35% year-over-year.

• Non-GAAP gross margin improved to 78% in Q3 FY25, up from 75% in Q3 FY24; GAAP gross margin was 76%.

• Non-GAAP operating margin rose to 11% in Q3 FY25, compared to 5% in Q3 FY24.

• Adjusted free cash flow margin increased to 10% in Q3 FY25 from 4% in Q3 FY24.

• Net cash from operating activities was $36 million in Q3 FY25.

Outlook and guidance

• Q4 FY25 revenue guidance: $334–$336 million, representing 21–22% year-over-year growth.

• FY25 revenue guidance: $1.237–$1.239 billion, 32–35% year-over-year growth.

• FY25 non-GAAP operating margin expected at 7%; non-GAAP EPS guidance: $0.22–$0.23.

• Q4 non-GAAP operating margin guidance at 9%; non-GAAP net income per share, diluted, expected at $0.07–$0.08.

• Management expects continued investment in R&D and sales to drive growth.