Summary
Samsara reported revenue of $322.0 million for the third quarter of fiscal 2025, up 36% from $237.5 million in the prior-year quarter. The top line has compounded at a steady clip all year: nine-month revenue reached $902.9 million, up 37% from $661.1 million. Management attributes the growth to a larger customer base and to existing customers buying more applications. Gross profit rose to $246.0 million from $175.9 million, and gross margin expanded to 76.4% from 74.1%. The margin gain came from operational efficiencies in deferred IoT device costs, direct labor, and warranty charges.
Profitability improved, but the business still runs at a GAAP loss. The operating loss narrowed to $47.4 million from $54.8 million, and the net loss narrowed to $37.8 million from $45.5 million. Diluted loss per share was $0.07, narrower than the $0.08 loss a year earlier. Operating margin was negative 14.7%, an improvement from negative 23.1%. On a non-GAAP basis, Samsara posted operating income of $33.9 million and an 11% operating margin, after excluding stock-based compensation expense-related charges and lease impairment charges. The company also recorded a lease impairment tied to a sublease of office space during the quarter.
Cash generation stood out. Operating cash flow was $36.0 million for the quarter, up from $11.9 million a year ago, and $77.8 million for the nine months, up from $30.1 million. Capital expenditures were $4.8 million in the quarter. Adjusted free cash flow was $31.2 million, a 10% margin, which the CEO described as a quarterly record.
Backlog and recurring revenue metrics point to durable demand. Ending ARR was $1.349 billion, up 35% year over year. Customers with ARR above $100,000 totaled 2,303, up 38%. Deferred revenue was $639.7 million, up 27% from $503.7 million, and remaining performance obligations were $2.43 billion, up 37.7% from $1.76 billion.
Guidance for the fourth quarter of fiscal 2025 calls for a non-GAAP operating margin of 9% and non-GAAP diluted net income per share of $0.07 to $0.08. For the full fiscal year 2025, management expects revenue growth of 32%, adjusted revenue growth of 35%, a non-GAAP operating margin of 7%, and non-GAAP diluted net income per share of $0.22 to $0.23. The adjusted figures strip out the extra week in the prior-year fourth quarter, which had 14 weeks instead of the usual 13.
The filing lists a wide set of risks. Macroeconomic weakness, inflationary pressure, supply chain disruptions, and geopolitical conflicts could dampen customer spending. Samsara also points to silicon component shortages, long sales cycles, security breaches, competition, and rapid technological change. The company has generated negative cash flows from operations in each of the past two fiscal years, and it may need to raise additional capital if it keeps burning cash.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2025 | Q2 FY2025 | QoQ | Q3 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $322.0M | $300.2M | +7.3% | $237.5M | +35.6% |
| Gross profit | $246.0M | $226.8M | +8.4% | $175.9M | +39.8% |
| Gross margin | 76.4% | 75.6% | +0.8 pp | 74.1% | +2.3 pp |
| Research & development | $77.0M | $76.5M | +0.7% | $60.8M | +26.6% |
| Sales & marketing | $150.1M | $151.5M | -0.9% | $116.8M | +28.5% |
| General & administrative | $62.7M | $57.1M | +9.8% | $48.4M | +29.6% |
| Total operating expenses | $293.3M | $285.0M | +2.9% | $230.7M | +27.1% |
| Operating income (loss) | -$47.4M | -$58.2M | +18.6% | -$54.8M | +13.5% |
| Operating margin | -14.7% | -19.4% | +4.7 pp | -23.1% | +8.3 pp |
| Net income (loss) | -$37.8M | -$49.6M | +23.8% | -$45.5M | +17.0% |
| Net margin | -11.7% | -16.5% | +4.8 pp | -19.2% | +7.4 pp |
| Diluted EPS | -$0.07 | -$0.09 | +$0.02 | -$0.08 | +$0.01 |
Risks
MD&A says new customer acquisition depends on sales and marketing effectiveness, macroeconomic factors, and international expansion, while expansion within existing customers depends on satisfaction, pricing, competition, and customer spending levels.
As of November 2, 2024, accumulated deficit was $1,598.8 million, and MD&A says the company may require additional capital if it generates negative cash flows and may not be able to raise financing on acceptable terms.
MD&A states that unfavorable economic conditions in the United States and abroad, including inflationary pressure, interest rate changes, supply chain disruptions, geopolitical conflicts, and election outcomes, could affect customer and supplier spending.
MD&A reports significant headcount growth drove employee-related cost increases across research and development, sales and marketing, and general and administrative functions, and says performance depends on the ability to scale headcount.
MD&A notes the Pillar Two global minimum corporate tax of 15% will apply beginning in fiscal year 2026, expects additional compliance costs, and cites uncertainty about the final rules and their application.
MD&A says exposure to foreign currency fluctuations has increased as global operations expand, and for the nine months ended November 2, 2024, foreign currency losses increased $1.9 million, partially offsetting interest income growth.
In Q3 FY2025, the company executed a sublease for certain office space that resulted in a $3.6 million impairment to the related right-of-use asset and fixed assets, and MD&A says additional lease modification, impairment, and related charges may occur in subsequent periods.
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
Summary, forecast, risks and KPIs are extracted from Samsara Inc.'s SEC filings for Q3 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.