Summary
Samsara ended fiscal 2025 with accelerating demand for its Connected Operations Platform. Fourth quarter revenue was $346.3 million, up 25% from the prior-year quarter. Full fiscal year revenue reached $1,249.2 million, up 33%. Annual recurring revenue stood at $1.458 billion, up 32% year over year, while adjusted ARR was $1,461.5 million, up 33%. The company had 2,506 customers with ARR over $100,000, up 36% year over year. More than 20,000 Core Customers generated $10,000 or more in ARR, and those customers produced 93% of ARR. Large customers over $100,000 in ARR accounted for 55% of ARR. Multi-application adoption remains a core part of the story: over 80% of Core Customers and 90% of customers over $100,000 in ARR use multiple Applications.
Profitability improved sharply on a GAAP basis. Fourth quarter gross profit was $266.0 million, up 28.3%, and gross margin was 76.8%, up 1.8 percentage points. Full year gross profit was $950.9 million, up 37.7%, with gross margin of 76.1%, up 2.5 percentage points. The fourth quarter operating loss was $18.4 million, a narrower loss than the prior-year quarter, and operating margin was -5.3%, up 39.2 percentage points. Net loss for the quarter was $11.2 million, also a narrower loss than the prior-year quarter. For the full year, net loss was $154.9 million, a narrower loss than the prior year, and diluted EPS was -$0.28, a narrower loss per share than the prior year. Operating margin for the full year was -15.2%, up 19.3 percentage points. Non-GAAP operating income was $55.9 million in the fourth quarter and $113.6 million for the full year, with non-GAAP operating margins of 16% and 9%, respectively.
Cash generation turned positive and scaled. Fourth quarter operating cash flow was $53.9 million, up from a negative figure a year earlier. Full year operating cash flow was $131.7 million, also up from a negative figure in the prior year. Adjusted free cash flow was $48.5 million in the fourth quarter and $111.5 million for the full year. Capital expenditures were $5.35 million in the fourth quarter, up 155.2%, and $20.18 million for the full year, up 84.2%. Deferred revenue ended the year at $685.77 million, up 21.3%, and remaining performance obligations were $2.65 billion, up 32.5%.
Guidance points to continued growth. For the first quarter of fiscal 2026, Samsara expects constant currency revenue growth of 26% to 27%, non-GAAP operating margin of 7%, and non-GAAP diluted net income per share of $0.05 to $0.06. For the full fiscal year 2026, the company guides to constant currency revenue growth of 23% to 24%, non-GAAP operating margin of 11%, and non-GAAP diluted net income per share of $0.32 to $0.34. The company notes that a reconciliation of non-GAAP guidance to GAAP guidance is not available on a forward-looking basis without unreasonable effort because of uncertainty around items such as stock-based compensation.
Risks remain familiar for a high-growth software and hardware business. Management cites macroeconomic conditions, inflationary pressure, foreign currency fluctuations, interest rate changes, supply chain disruptions, silicon component shortages, security breaches, competition, rapid technological change, and the ability to innovate and retain customers. Geopolitical conflicts, including Russia and Ukraine, tensions involving China, and the conflict in the Middle East, plus new tariff and trade policies, are also listed as potential headwinds. Samsara also carries a full valuation allowance against U.S. deferred tax assets and expects additional compliance costs from the global minimum tax known as Pillar Two. Headcount grew to more than 3,500 full-time employees from 2,895 a year earlier, supporting the expansion but also adding to operating costs.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $346.3M | $322.0M | +7.5% | $276.3M | +25.3% |
| Gross profit | $266.0M | $246.0M | +8.1% | $207.3M | +28.3% |
| Gross margin | 76.8% | 76.4% | +0.4 pp | 75.0% | +1.8 pp |
| Research & development | $73.3M | $77.0M | -4.8% | $73.4M | -0.2% |
| Sales & marketing | $152.7M | $150.1M | +1.7% | $133.0M | +14.8% |
| General & administrative | $57.2M | $62.7M | -8.7% | $55.2M | +3.7% |
| Total operating expenses | $284.4M | $293.3M | -3.0% | $330.3M | -13.9% |
| Operating income (loss) | -$18.4M | -$47.4M | +61.1% | -$123.0M | +85.0% |
| Operating margin | -5.3% | -14.7% | +9.4 pp | -44.5% | +39.2 pp |
| Net income (loss) | -$11.2M | -$37.8M | +70.4% | -$113.4M | +90.1% |
| Net margin | -3.2% | -11.7% | +8.5 pp | -41.0% | +37.8 pp |
| Diluted EPS | -$0.02 | -$0.07 | +$0.05 | -$0.21 | +$0.19 |
Risks
U.S. and global market conditions, elevated inflation, interest rates, tariffs, and geopolitical tensions may cause customers to slow IT spending and lengthen sales cycles. MD&A notes monitoring of tariff policies and import and export restrictions.
Competitors may more effectively leverage new technologies such as artificial intelligence to develop and market comparable products, and some bundle products at significant discounts. This could reduce margins, lengthen sales cycles, and cause loss of market share.
Sales to larger customers have longer sales cycles that typically last several months and in some cases exceed one year, with irregular and unpredictable purchase timing. This makes revenue and contract value timing difficult to forecast.
Contracts typically have initial terms of three to five years but customers have no obligation to renew, and some have elected not to renew. Non-renewal or downsizing would adversely affect results.
IoT devices depend on a limited number of joint design manufacturers, sometimes a single manufacturer, with suppliers concentrated in China and Taiwan. Component shortages, tariffs, and geopolitical tensions could delay shipments and revenue recognition.
Security breaches or incidents affecting customer data, IoT devices, or systems could harm reputation and create liability. Employees historically had broad access to customer video footage, and some Applications can control large industrial assets.
The company has incurred losses in all years since incorporation and expects to continue incurring net losses in future quarters. It reported a net loss of $154.9 million for fiscal year ended February 1, 2025 and an accumulated deficit of $1,610.0 million as of that date.
The company relies on direct sales and has experienced turnover in sales and marketing and supporting teams, including senior leadership. Failure to hire, onboard, and retain effective sales personnel may harm new customer acquisition.
Forecasts for components and devices can be inaccurate; excess inventory may require reserves or price reductions, while insufficient supply may delay revenue or lose sales to competitors.
Rapid historical growth makes future prospects difficult to evaluate, and the company expects its revenue growth rate to continue to decline as the business matures. Increased competition or slowing demand could accelerate that decline.
Expansion into equipment, sites, and frontline worker use cases involves limited operating experience and may face additional regulatory scrutiny. There is no guarantee the company will achieve similar penetration as with fleet Applications.
Critical business operations are supported by third-party hosting facilities located in Oregon, and outages or catastrophic events could disrupt service and harm renewals.
The company filed lawsuits against Motive in January 2024 and November 2024 alleging patent infringement, false advertising, fraud, computer fraud and abuse, unfair competition, and trade secret misappropriation. Responding may be costly and distract management.
Success depends on key personnel including CEO Sanjit Biswas and CTO John Bicket, and competition for engineers and sales staff is high. Equity incentives may become less effective as awards vest or stock price declines.
Headcount increased from 2,895 employees as of the last business day of fiscal year 2024 to more than 3,500 full-time employees as of the last business day of fiscal year 2025. This rapid growth places significant demands on management, operational, and financial resources and systems.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Adjusted Free Cash Flow Margin
Customers > $100,000 ARR
Non-GAAP Gross Margin
Free Cash Flow Margin
Adjusted Free Cash Flow
Free Cash Flow
ARR
ARR from Core Customers
ARR from Customers > $100,000 ARR
Summary, forecast, risks and KPIs are extracted from Samsara Inc.'s SEC filings for Q4 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 2, 2026.