Symbotic (SYM) Q2 2025 earnings summary

Executive summary

• Revenue grew 40% year-over-year to $550 million, driven by increased system deployments, expanded customer contracts, and the acquisition of Walmart Advanced Systems and Robotics (ASR).

• Gross margins expanded significantly due to improved project execution, cost control, and high-quality deployments.

• Net loss narrowed, reflecting improved gross profit and operating leverage, with adjusted EBITDA rising to $35 million from $9 million year-over-year.

• Backlog reached $22.7 billion, underpinned by long-term contracts with major customers and multi-year growth opportunities.

• Key leadership hires, the Greenbox joint venture with SoftBank, and the ASR acquisition are expected to support future growth and product expansion.

Financial highlights

• Systems revenue rose 38% year-over-year to $513.4 million, with 46 systems in deployment versus 37 a year ago.

• Gross profit increased to $108 million from $30 million, with adjusted gross profit margin improving to 22.2% from 16.4% year-over-year.

• Adjusted EBITDA for the quarter was $34.7 million, up from $8.5 million in the prior year quarter.

• Cash and cash equivalents ended at $955 million, up from $903 million in Q1, driven by $270 million cash from operations.

• Free cash flow for the six months ended March 29, 2025, was $446.7 million, compared to $(14.9) million in the prior year period.

Outlook and guidance

• Q3 FY2025 revenue expected between $520 million and $540 million; adjusted EBITDA forecasted at $26 million to $30 million.

• SG&A expected to decrease by $4–$5 million next quarter as acquisition costs subside.

• Free cash flow expected to remain stable through year-end.

• Recurring high-margin revenue base from software and services expected to build over time.

• The company anticipates $12–14 million in workforce reduction costs in Q3 2025, with a significant portion reimbursed under the ASR Purchase Agreement.