Summary
Samsara posted revenue of $300.2 million in the second quarter of fiscal 2025, up 36.9% from $219.3 million a year earlier. Revenue for the first six months reached $580.9 million, up 37.1%. Annual recurring revenue ended the quarter at $1.264 billion, up 36% year over year. Customers spending more than $100,000 in ARR totaled 2,133, up 41%. Management said the platform now collects more than 10 trillion data points annually and described the quarter as one of durable and efficient growth at a greater scale. Subscriptions to the Connected Operations Cloud produced roughly 98% of revenue in each of the past two fiscal years, so the model leans on recurring contracts rather than one-time hardware sales. The company said the top-line gain came from more customers and from existing customers buying additional Applications.
Margins improved as the business scaled. Gross profit was $226.8 million, up 41.4%, and gross margin rose to 75.6% from 73.2%. The operating loss narrowed to $58.2 million from $69.8 million, and operating margin improved to negative 19.4% from negative 31.8%. Net loss narrowed to $49.6 million from $60.0 million. Diluted loss per share was $0.09, better than the $0.11 loss a year earlier. For the first six months, net loss narrowed to $105.9 million from $127.8 million. Non-GAAP operating income was $17.6 million, a swing from a $5.9 million loss, and non-GAAP diluted net income per share was $0.05. Non-GAAP gross profit was $230.8 million and non-GAAP gross margin was 77%, up from 75%. Management credited the gross margin gains mainly to operational efficiencies in warranty charges and infrastructure costs.
Cash generation improved. Operating cash flow was $18.1 million for the quarter, up from $7.7 million, and $41.8 million for the first six months, up from $18.2 million. Capital expenditures were $5.0 million, up from $3.0 million. Adjusted free cash flow was $13.1 million, up from $4.7 million. Deferred revenue stood at $622.7 million, up 30.5%, and remaining performance obligations were $2.29 billion, up 40.1%. Management attributed the operating cash flow gain to higher deferred revenue and lower prepaid expenses, partly offset by lower cash collections and higher inventory.
Guidance points to slower growth ahead. For the third quarter, Samsara guided to year-over-year revenue growth of 30% to 31%, non-GAAP operating margin of 4%, and non-GAAP diluted net income per share of $0.03 to $0.04. The fourth-quarter outlook calls for revenue growth of 21% to 22% and non-GAAP operating margin of 8%. For the full fiscal year 2025, management guided to revenue growth of about 31%, non-GAAP operating margin of 5%, and non-GAAP diluted net income per share of $0.16 to $0.18. The company does not reconcile the non-GAAP guidance to GAAP because items such as stock-based compensation cannot be predicted.
Risks look familiar. The company cites macroeconomic pressure, inflationary costs, supply chain and silicon component shortages, and geopolitical conflicts including Russia and Ukraine, tensions involving China, and the conflict in Israel and the surrounding region. Competition, rapid technological change, long sales cycles, and the possibility of a security breach also appear in the risk list. Samsara noted that Pillar Two global minimum tax rules begin applying to it in fiscal 2026, which could add compliance costs. It also flagged its history of operating losses and the chance it may need additional capital, and it keeps a full valuation allowance against its U.S. deferred tax assets.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2025 | Q1 FY2025 | QoQ | Q2 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $300.2M | $280.7M | +6.9% | $219.3M | +36.9% |
| Gross profit | $226.8M | $212.1M | +6.9% | $160.4M | +41.4% |
| Gross margin | 75.6% | 75.5% | +0.0 pp | 73.2% | +2.4 pp |
| Research & development | $76.5M | $73.0M | +4.8% | $64.0M | +19.6% |
| Sales & marketing | $151.5M | $147.4M | +2.8% | $117.9M | +28.5% |
| General & administrative | $57.1M | $57.7M | -1.1% | $48.3M | +18.2% |
| Total operating expenses | $285.0M | $278.1M | +2.5% | $230.1M | +23.8% |
| Operating income (loss) | -$58.2M | -$66.0M | +11.8% | -$69.8M | +16.6% |
| Operating margin | -19.4% | -23.5% | +4.1 pp | -31.8% | +12.4 pp |
| Net income (loss) | -$49.6M | -$56.3M | +11.9% | -$60.0M | +17.3% |
| Net margin | -16.5% | -20.1% | +3.5 pp | -27.4% | +10.8 pp |
| Diluted EPS | -$0.09 | -$0.10 | +$0.01 | -$0.11 | +$0.02 |
Risks
MD&A states that unfavorable economic conditions in the United States and abroad, including inflationary pressure, interest rate increases, supply chain and freight disruptions, labor shortages, and reduced IT spending, could slow new customer acquisition and expansion within the existing base. It also flags geopolitical tensions involving China, the Russia-Ukraine conflict, the conflict in Israel and the surrounding region, and uncertainty around political elections as factors that may affect customers and suppliers.
The company reported an accumulated deficit of $1,561.0 million as of August 3, 2024 and has generated negative cash flows from operations in each of the past two fiscal years. MD&A states it may require additional capital resources to execute strategic initiatives, particularly if it generates negative cash flows in future quarters, and that it may not be able to raise financing on acceptable terms or at all.
MD&A states that exposure to foreign currency fluctuations has increased as global operations expanded and expects this to continue. Interest income and other income, net decreased 6% for the quarter ended August 3, 2024 versus the prior-year quarter, with $1.7 million of the decrease due to an increase in foreign currency losses, and foreign currency losses increased $2.2 million for the six months ended August 3, 2024.
MD&A notes that the OECD Pillar Two global minimum corporate tax of 15% is being enacted by various international governments and will apply to the company beginning in fiscal year 2026, and that it expects to incur additional compliance costs. It also states there remains uncertainty as to the final Pillar Two model rules and their application.
General and administrative expense rose 18% for the quarter and 25% for the six months ended August 3, 2024 versus the prior-year periods, driven in part by a $2.5 million increase in legal fees in the quarter and a $5.0 million increase in legal fees plus a $2.5 million increase in bad debt expense for the six months. Rising legal and credit-related costs could pressure operating results if they continue.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Adjusted Free Cash Flow Margin
Customers > $100,000 ARR
Non-GAAP Gross Margin
Annual Recurring Revenue (ARR)
Free Cash Flow Margin
Adjusted Free Cash Flow
Free Cash Flow
Non-GAAP Operating Income
Summary, forecast, risks and KPIs are extracted from Samsara Inc.'s SEC filings for Q2 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.