Symbotic (SYM) Q1 2025 earnings summary

Executive summary

• Revenue grew 35% year-over-year to $487 million in Q1 2025, driven by strong system deployments, recurring revenue, and Walmart Master Automation Agreement.

• Closed three acquisitions in the last seven months, including Walmart's advanced systems and robotics business for $200 million, enhancing technology and backlog.

• Integration of new CTO and OhmniLabs acquisition to accelerate innovation and simulation capabilities.

• Net loss narrowed to $3.5 million, with adjusted EBITDA rising to $18 million and strong operating cash flow.

• Focused on scaling operations, insourcing deployment functions, and improving project execution.

Financial highlights

• Q1 2025 revenue: $487 million, up 35% year-over-year; gross profit increased to $80 million, with adjusted gross margin at 17.8%.

• Recurring revenue grew over 80% year-over-year; software revenue more than doubled with margins above 65%.

• Adjusted EBITDA was $18 million, exceeding forecasts; free cash flow was $198 million, a significant improvement from negative $33 million a year ago.

• Cash and equivalents rose to $903 million, up from $727 million, mainly due to $205 million in cash from operations.

• Backlog of committed contracted orders remained at $22.4 billion.

Outlook and guidance

• Q2 2025 revenue expected between $510–$530 million, with adjusted EBITDA of $26–$30 million and at least 30% year-over-year growth.

• Guidance reflects sequential gross margin improvement and continued high growth.

• Only modest revenue contribution expected from Walmart Advanced Systems and Robotics acquisition in Q2.

• 11% of backlog expected to be delivered in the next 12 months, with revenue backloaded toward Q4.

• Current liquidity and cash position expected to be sufficient for at least the next 12 months.