SYM

Download the Complete Report Here Key Takeaways: Record revenue and improved sequential growth reinforce BOIL’s transition from commercial platform buildout toward scaled execution. BOIL reported record revenue of $1.4 million in 2Q26, up 28% y/y from $1.1 million and 11% sequentially from $1.3 million in 1Q26, a meaningful acceleration from the ~1% sequential increase reported last quarter. 1H26 revenue reached $2.7 million, up 26% from $2.1 million in 1H25 and equivalent to 59% of full-year 2025 revenue of $4.5 million. The quarter lifts BOIL’s annualized revenue run-rate to ~$5.6 million from roughly $5.0 million entering 2Q26, while BOIL continued to invest in the U.S. direct-sales infrastructure supporting larger strategic customers. We believe the combination of improved sequential revenue growth and broader enterprise activity supports the view that BOIL is moving further into the revenue-execution phase, with broader deployments and recurring consumption representing the next stage of scale. Gross margin moderated as BOIL absorbed early rollout and channel-transition costs, while commercial investment remained focused on supporting U.S. execution. Gross profit was $0.59 million in 2Q26 versus $0.62 million y/y, with gross margin declining to 42.2% from 56.3% in 2Q25 and 53.1% in 1Q26 as inventory and channel mix, early U.S. customer servicing costs, and new-market expansion weighed on profitability. Total operating expenses increased 27% y/y to $3.01 million from $2.37 million, driven primarily by a 63% increase in sales and marketing expense to $1.62 million from $0.99 million as BOIL expanded its U.S. direct-sales team, pilot activity, and customer training. G&A remained relatively stable at $1.16 million versus $1.18 million y/y, while R&D increased modestly to $0.23 million from $0.20 million. The expense mix remains concentrated on commercialization rather than product development, while management expects lower inventory costs and a larger contribution from direct U.S. sales to support gross-profit improvement as deployments scale. Commercial traction continues to broaden across food retail, fast food, and casual dining, providing multiple pathways for BOIL to scale recurring U.S. revenue. Recent progress across supermarket, fast-food and premium casual-dining customers, alongside distribution through Sysco Los Angeles, has expanded BOIL’s base of multi-site commercial activity. Product validation now spans 100+ U.S. locations, with several relationships moving beyond pilot activity into paid deployment and broader rollout. This broadening customer base strengthens the setup heading into 2H26, with location expansion, repeat orders and recurring consumption increasingly becoming the key indicators of execution. S. direct strategic accounts remain the primary growth focus, with customer validation now extending across more than 100 locations. BOIL indicated that direct U.S. work includes three large food operators collectively representing thousands of potential locations. The company has also streamlined parts of its distributor portfolio, discontinuing master-distribution agreements with Latitude in the U.S. and Ukraine and T&J Oil in Australia, while transitioning its Indian relationship with Deep Frying Solutions to a non-exclusive structure. Distribution remains an important part of the model, with 25 distributors covering more than 50 countries, but is increasingly positioned as a complement to direct selling rather than the primary commercial engine for large strategic accounts. This hybrid approach should give BOIL greater control over pricing, implementation and recurring customer economics for tier-one accounts, while continuing to use distributors for local logistics, smaller customers and geographies where direct infrastructure would be inefficient. Several strategic relationships are now moving beyond initial validation into paid deployment and broader multi-site rollout, providing early evidence of the direct-account model progressing toward recurring commercial usage. The expanded U.S. commercial organization should increasingly shift the focus from infrastructure buildout toward conversion efficiency. During its July management webinar, BOIL highlighted that the organization has grown from approximately 20 employees at year-end 2024 to ~45 currently, with most incremental hiring focused on sales, marketing and commercial execution, particularly in the U.S. Enterprise sales cycles can currently exceed six months across engagement, pilot, broader market testing and rollout, with the company targeting an average of approximately three months over time as reference customers and implementation experience accumulate. Against 2Q26 sales and marketing expense of $1.6 million, improving conversion speed and revenue productivity across the expanded organization should become increasingly important indicators of operating leverage. Customer economics remain central to adoption, with ROI complemented by operational benefits at the kitchen level. Illustrative company examples show annual net savings of approximately $8,640 per European restaurant and $9,458 per U.S. restaurant, with oil life extending from approximately 3-5 days to 21 days in the illustrated cases, while implementation requires no new equipment or material capex. Improved food consistency, easier fryer cleaning and lower waste further support adoption, which is important because enterprise rollout ultimately depends on both procurement-level economics and restaurant-level acceptance. Manufacturing capacity remains substantially ahead of current revenue, providing meaningful headroom for enterprise rollout without near-term capacity constraints. During the July webinar, BOIL indicated that existing manufacturing capabilities can support ~$100 million of annual sales, roughly 18x the current ~$5.6 million annualized revenue run-rate and materially above the >$50 million capacity previously discussed. BOIL can also add North American or other regional manufacturing as demand develops. The existing headroom is strategically important because broader enterprise conversion could translate into materially higher revenue without requiring a proportional manufacturing build, supporting stronger fixed-cost absorption as volumes scale. Operating investment remains ahead of the current revenue base, with improved gross-profit conversion becoming increasingly important to earnings leverage. BOIL reported a 2Q26 operating loss of $2.4 million versus $1.8 million y/y and a 1H26 operating loss of $4.5 million versus $3.5 million, reflecting continued commercial investment ahead of revenue scale. Net loss totaled $2.1 million, or $0.03 per share, versus $0.9 million, or $0.01 per share, although the y/y comparison was affected by approximately $1.7 million of non-cash warrant revaluation gains in 2Q25 versus roughly $0.3 million in 2Q26. As direct U.S. sales scale and gross margin improves, higher gross-profit dollars relative to the existing commercial cost base should become the key indicator of progress toward operating leverage. Working-capital dynamics reflect the timing of larger commercial activity, with receivable conversion providing an expected source of additional liquidity. Trade receivables increased to $3.1 million at June 30 from $1.7 million at year-end, due to a significant 2Q commercial shipment for which collection is expected in the ordinary course. Inventory remained comparatively stable at $2.3 million versus $2.3 million, despite the expanding commercial pipeline, suggesting the current commercial ramp has not required a disproportionate inventory build. As larger enterprise deployments scale, receivable timing and working-capital discipline should become increasingly important, while collection of the $3.1 million receivable balance should provide an additional source of near-term liquidity. The balance sheet continues to support near-term commercial execution; cash conversion is becoming more important as investment remains elevated. Cash and short-term deposits totaled $4.5 million at June 30 versus $8.8 million at December 31, while positive working capital remained $9 million and the current ratio was approximately 7.4x. Current assets totaled $10.5 million against $1.4 million of current liabilities, with shareholders’ equity of $12.3 million. 1H26 net cash used in operating activities increased modestly to approximately $4.3 million from $4.2 million y/y, reflecting continued investment in commercial scale. Importantly, spending remains concentrated on sales execution rather than manufacturing capex, while the elevated receivable balance provides an expected near-term source of cash as the underlying shipment is collected. The June 30 positive-EBITDA milestone was not triggered, leaving the $13 million cumulative-sales threshold as the principal remaining disclosed operating-linked contingent share milestone under the existing transaction structure. The 2H26 setup is increasingly centered on converting the commercial foundation into broader deployments, recurring revenue and improving unit economics. The company expects gross profit to improve as direct U.S. sales become a larger part of the mix, while key 2H26 execution indicators include expansion of the supermarket program beyond the additional 14 locations, progression of the existing ~70-restaurant casual-dining rollout, further penetration of the fast-food customer’s franchise network, additional Sysco-supported activity and repeat orders across existing deployments. With customer validation spanning 100+ U.S. locations, approximately 45 employees supporting the organization and manufacturing capabilities stated to support up to ~$100 million of annual sales, the focus increasingly shifts from building the platform toward increasing conversion, utilization and recurring revenue across the infrastructure already in place. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. BOIL continues to trade at a premium to more mature peers, reflecting its earlier commercialization stage and higher expected growth profile. Based on an enterprise value of $112 million and 2Q26 revenue of $1.4 million, or an annualized run-rate of roughly $5.6 million, BOIL trades at approximately 20x run-rate sales, down from ~33.6x at the time of our May update. This remains elevated relative to more mature restaurant-technology and food-ingredient peers, but BOIL is still an early-stage commercialization story where valuation is driven less by current revenue scale and more by the pace of multi-location rollout conversion, repeat ordering, gross-margin recovery and operating leverage as revenue expands, with valuation support increasingly dependent on revenue growth and operating leverage rather than further multiple expansion. The more relevant valuation framework is therefore revenue scaling into the infrastructure already in place. Holding the current $112 million enterprise value constant, $25 million of annual revenue would imply 4.5x EV/Sales, $50 million would imply 2.2x, $75 million would imply 1.5x and $100 million would imply 1.1x. These scenarios are illustrative rather than forecasts, but they highlight the potential for substantial multiple compression through revenue growth alone. Management indicated in July that existing manufacturing capabilities can support approximately $100 million of annual sales, materially above the current ~$5.6 million run-rate, providing capacity for enterprise conversion without requiring a proportional near-term manufacturing build. Overall, BOIL remains an execution-driven valuation story, with the recent reset lowering the hurdle for further rerating. Customer validation across 100+ U.S. locations, the ~70-restaurant casual-dining rollout, supermarket expansion and initial paid fast-food deployment provide a broader base for recurring revenue growth, while the direct-account model should improve control over rollout execution and customer economics. The key valuation drivers are now broader site penetration, repeat ordering, shorter sales cycles and recovery in gross margin from 42.2% toward the 50%+ levels achieved previously, which would improve absorption of the current $1.6 million quarterly sales and marketing base. Continued enterprise conversion, recurring reorder activity and improving operating leverage would provide increasing fundamental support for BOIL’s valuation as revenue scales into the commercial and manufacturing infrastructure already in place. Read Exec Edge’s Initiation on Beyond Oil Ltd. Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post Beyond Oil: Record Revenue & U.S. Direct-Sales Expansion Fuel Scaling Phase – Quarterly Update Report appeared first on ExecEdge.

On August 5, Symbotic Inc. (NASDAQ:SYM) reported a quarter that looked almost too good, with revenue up 22% and profit swinging from a loss to tens of millions in the black. Yet a chunk of Wall Street is still betting against the stock. That gap between the fundamentals and the skepticism is the story here. For its fiscal third quarter, Symbotic posted revenue of $721 million, up 22% year-over-year and 7% sequentially, near the high end of its own forecast. Net income came in at $55 million, a sharp reversal from a $21 million loss a year earlier, while adjusted EBITDA more than doubled to $95 million from $45 million. The company started 11 new system deployments in the quarter, including a second site for beverage distributor Southern Glaciers, pushing its total to 77 systems in deployment and 56 already operational. Growth is also broadening beyond the core hardware business. Software revenue jumped 57% year over year to $13 million, and operation services revenue climbed 49% to $37 million, both signs that Symbotic is making more money per site as systems mature. The Walmart (NYSE:WMT) relationship keeps expanding too, with the brake pack each-picking system now live at half of Walmart's regional distribution centers and a new FirstSim Micro system beginning installation for ecommerce fulfillment. Add in recent tuck-in acquisitions of Box Robotics and ARMS Innovations, and Symbotic is stacking new revenue categories on top of its original warehouse automation business. None of that comes cheap. Symbotic trades at a forward P/E of 238.10 as of August 14, a multiple that assumes years of uninterrupted growth and leaves little room for a stumble. Short sellers appear to agree there is risk, with 28.10% of the float sold short, a level that signals a substantial bear camp rather than routine hedging. Cash also moved the wrong way, falling to $1.7 billion from $2 billion, which the company attributed to timing of project-related receipts and spending. Backlog dipped slightly to $22.5 billion, still enormous but a reminder that even fast-growing order books can shrink quarter to quarter as revenue gets recognized. Hedge fund ownership fell from 38 funds to 35 heading into this print, a modest but notable retreat even as the business itself accelerated. That decline sits awkwardly next to the short interest, since both suggest professional money has been trimming or betting against Symbotic right as its numbers improved. Symbotic's quarter answered a lot of questions about execution, from Walmart expansion to margin gains to a growing software business. What it has not answered is whether the valuation already assumes all of that good news and more. For the bulls, continued deployment growth and new categories like FirstSim Micro would need to keep compounding at this pace. While we acknowledge the potential of SYM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Future Stocks to Buy Under $10 and 12 Best Performing Semiconductor Stocks to Invest In. Disclosure: None. Follow Insider Monkey on Google News.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026, at 5 p.m. ET Vice President of Investor Relations - Charles Lowell Anderson Chairman and Chief Executive Officer - Richard Cohen Chief Financial Officer - Izilda Martins Operator: Good day, and thank you for standing by. Welcome to Symbotic Third Quarter Financial Results Conference Call. At this time, all participants After the speakers' presentation, there will be a Q&A session. To ask a question during the session, you will need to press star 11 on your telephone. Will then hear an automated message if the light in your hand is raised. To withdraw your question, please press star 11 again. Please limit your questions to 1 question and 1 follow-up. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Charlie Anderson, Vice President of Investor Relations. Please go ahead. Charles Lowell Anderson: Hello. Welcome to Symbotic's third quarter of Fiscal Year 26 Financial Results Webcast. I am Charlie Anderson, Symbotic's Vice President of Investor Relations. Some of the statements that we make today regarding our business operations and financial performance may be considered forward looking. Such statements are based on current expectations and assumptions that are subject to a number of risks and uncertainties. Actual results could differ materially. Please refer to our Form 10-K, including the risk factors. We undertake no obligation to update any forward looking statements. In addition, during this call, we will present both GAAP and non GAAP financial measures. A reconciliation of GAAP to non GAAP measures is included in today's earnings press release which is distributed and available to the public. Through our Investor Relations website located at ir.symbiotic.com. On today's call, we are joined by Rick Cohen, Symbotic's founder, chairman, and Chief Executive Officer, and Izilda Martins, Symbotic's chief financial officer. These executives will discuss our third quarter of fiscal year 2026 results and our outlook, followed by Q&A. With that, I will turn it over to Rick to begin. Rick? Richard Cohen: Thank you, Charles. Good afternoon, and thank you for joining us to review our most recent results and business updates. We delivered strong third quarter results highlighted by continued revenue growth, and expanding margins leading to continued GAAP profitability, and adjusted EBITDA that more than doubled year over year. Thanks to another strong quarter, we remain well on track to achieve the objectives we laid out at the start of the year. As a reminder, our first objective was to leverage our growing product portfolio and capabilities to broaden our opportunities with customers. We are clearly seeing this play out as our brake pack product to handle individual items or eaches has now begun deployment at half of Walmart's regional distribution centers. In addition, we recently began installation of our FirstSim Micro system for ecommerce fulfillment at the back of a Walmart store, a significant step forward towards unlocking this exciting new category of our business. We are also continuing to drive additional value for our customers that have existing operational systems by providing higher levels of performance through software to further optimize their supply chains. A recent example is using our software to more intelligently layer palettes, and dynamically optimize freight deliveries specifically for seasonal events like back to school. By doing so, we believe our customers can realize shorter delivery times and faster restocking during these critical periods. We believe customers are increasingly recognizing the impact our systems can have And as a result, we are seeing additional opportunities to broaden the scope of our work with both existing and prospective customers. For example, in the third quarter, we signed an agreement with Southern Glaciers Wine & Spirits for a second site after the success of their first facility. Southern Glaciers is a leading total beverage distributor serving 47 US markets in Canada. As we drive additional value for our customers, it is allowing us to realize the second objective we laid out at the beginning of the year, which was to enhance our margins and profitability. Our forecast for the year implies full year adjusted EBITDA that is more than double that of last fiscal year. This continues to be a key focus area for us and we see clear levers to continue enhancing our profitability, driven by value creation for our customers and further operational efficiencies. The final objective we laid out was to continue to invest in our innovation engine to expand our capabilities and support future growth. The analogy I often use here is that our automation is like an operating system, and we add apps to enhance its functionality for customers. For us, this is playing out both organically and inorganically. Organically, we are making several functionality upgrades to our Symbots to enhance the performance of our system. For example, we deployed over 1 thousand larger bots into our operational system this calendar year to handle a wider variety of SKUs. With this new bot, we have also built new modularized software development tools to give us enhanced flexibility to create different bots for different tasks and payloads. With our SymMicro bot being a perfect example. We are also in the process of rolling out LiDAR, enhanced camera systems, Nyobolt advanced batteries, and other updates, all with the aim of driving enhanced efficiency and performance for our systems. Inorganically, we have made 2 tuck in technology acquisitions that expand our capabilities. Box Robotics for dock automation and most recently, ARMS Innovations for warehouse operations optimization. With ARMS, we have an opportunity to expand the reach of our software beyond our automation system to the entire warehouse operation optimizing the movement of both equipment and people. In summary, we are focused on meeting our objectives and in turn creating ravingly happy customers and expanding shareholder value. We also continue to have a solid balance sheet and backlog. As always, I wanna thank our team for all their hard work. Along with our customers and our investors for their continued support. I will now turn it over to Izzy, who will discuss our financial results and outlook. Izzy? Izilda Martins: Thanks, Rick. Fiscal third quarter revenue reached $721 million near the high end of our forecasted range and was up 22% year over year and up 7% quarter over quarter. We also improved GAAP profitability with $55 million in net income. Adjusted EBITDA of $95 million was above our forecasted range due to expanding margins and operational efficiency. Our revenue growth was driven by the continued expansion in the number of systems in deployment and the growth of operational systems that generate recurring revenue. We started 11 new system deployments in the third quarter. Including the new Southern Glaciers site highlighted by Rick. Bringing us to a total of 77 systems in deployment at the end of the quarter. This expansion in the number of deployments drove systems revenue growth of 20% year over year and 6% sequentially to $671 million. We also had 4 systems go operational during the quarter, bringing us to a total of 56 operational systems. As our base of operational systems continues to expand, software revenue grew 57% year over year to $13 million and operation services revenue of $37 million grew 49% year-over-year both in the fiscal third quarter. Turning to margins. In the fiscal third quarter, Gross margin expanded both sequentially and year over year, due to strong project execution, cost discipline benefits from scale, and revenue mix. Operating expenses on a GAAP basis were $128 million in the fiscal third quarter. Combined adjusted R&D and SG&A expenses totaled $85 million with SG&A down sequentially due to operational efficiencies. Net income for the fiscal third quarter was $55 million an improvement from a net loss of $21 million in the third quarter of fiscal year 2025. This included an unrealized noncash gain on the fair value of our strategic investments of $19 million in the quarter, which was primarily driven by an increase in the value of our investment in Nyobolt, our next generation battery supplier. GAAP net income improved both year over year and sequentially. Reflecting this impact as well as expanding margins and operating leverage. As Rick highlighted, adjusted EBITDA of $95 million was more than double the $45 million in third quarter of fiscal year 2025. Our backlog of $22.5 billion remains strong. The slight decrease from last quarter primarily reflects revenue recognized in the quarter, offset by final pricing adjustments on projects started in the quarter and the addition of the new Southern Glaciers site. We finished the quarter with cash and cash equivalents of $1.7 billion down from $2 billion last quarter due primarily to timing of cash receipts related to project starts along with the timing of cash usage related to project activity. Now turning to the outlook. For the fourth quarter of fiscal 2026, we expect revenue between $700 million and $780 million and adjusted EBITDA between $100 million and $105 million With that, we now welcome your questions. Operator? Operator: Please begin the Q&A. Thank you. As a reminder, to ask a question, you will need to star 1 on your telephone and wait for your name to be advanced. To withdraw your question, please press star 1 again. Please remember to limit to 1 question and 1 follow-up question. Please stand by while we compile Q&A roster. Our first question comes from the line of Andy Kaplowitz of Citigroup. Your line is now open. Andy Kaplowitz: Close enough. How's everyone doing? Richard Cohen: Greg. Andy Kaplowitz: So Rick, I know you said that you have now installed a SyMicro prototype into a Walmart store. So maybe you can give more color into where you are in that development process. I think you said previously, you could see conversion on the 5 going to Walmart backlog before this at the end of the calendar year. Is that still the right time frame? And then as SyMicro has evolved, have you thought about the ultimate opportunity even beyond the initial 5 billion? I think instance, you have been working on solving perishables with a smaller system. So maybe just an update would be helpful. Richard Cohen: Well, I think you have covered up the whole waterfront there. So, yeah, SymMicro, we are installing. It will take I do not know, about 6 months into our first Walmart the new version of our system into the first Walmart store. We are running 19 of the old versions, but we have been working with Walmart to develop this so that will come to life about 6 months from now. That should trigger expanded We expect that will work very well. We have a second site that will follow shortly after that, and then that should trigger a bunch more sites once Walmart actually sees the system working. Your second question on perishables, got a lot of interest in perishables. It seems like something clicked in the rest of the world. And so I think the realization that with the new structure that you can save so much money on the construction cost of these perishable buildings, and they are so expensive to start with. We have had a lot of interest so we would expect within the next 6 months, I guess, I would say, to begin building our first prototypes and testing. Andy Kaplowitz: So Very helpful. Izilda Martins: And Izzy, maybe just revenue is beginning to accelerate now in Q4 as per your guidance? Given the new store structure, it seems like it is allowing you to accelerate deployments. Ultimately, continue to see continued acceleration in FY 27 in revenue. At least how do we think that if you do not want to give specific guidance? Andy Kaplowitz: Yeah. Operator: I think as Rick said, you covered it, but in your question, obviously, as we unveiled the next generation storage structure, we were expecting that inflection point. Izilda Martins: I think we are just at -- just starting that out. I think, the sequential improvement quarter over quarter, including our guide, is call it steady. I think, though, the real inflection point of the next generation storage structure will really happen in the second half of next year. As we proceed with the installation of that. Helpful. Andy Kaplowitz: Thanks, guys. Operator: Our next call comes from the line of Matt Summerville of D.A. Davidson. Your line is now open. Matt Summerville: Couple of questions. Can you maybe provide an update on where you are with customer acquisition for GreenBox and maybe update where you are at with site launches. And then I am also curious as to what initial inbound interest is with respect to that ARMS acquisition you referenced earlier. Richard Cohen: So on GreenBox, our Atlanta site has gone live. We are receiving product there. Customers asked not to be named yet, but that site is now live and receiving product, and our Lathrop site the customer is CNS, that Symbotic system is now complete. Izilda Martins: And so that site will go live within the next 60 or 90 days, and that will be a nice revenue producing site. Because right now, we have the system in there, but we are not getting any revenue as the cases go through Symbotic. Richard Cohen: So we are feeling good about these sites are coming online. It has been a journey to get these sites filled up, but the reality is we had to get the buildings built and show people. So and we have a lot of incoming interest. We have 5 buildings. And so the fact that we have 5 buildings, we are able to talk to bigger customers as well as smaller customers. But it is a process. But the answer to your first question is we are live in Atlanta and receiving product. And in Lathrop, California, we will start filling out about a 100% of what we plan there within the next 60 to 90 days. Izilda Martins: And then on ARMS, we are doing the integration of the ARMS software with the operating system from Symbotic We have a site -- our first site that we are doing the integration will be the testing, and then we will be able to show people how that will work. And we think that will be a very nice revenue software revenue business for us. Because we think it creates great value in improving the efficiencies of the maintenance whole system and process. Matt Summerville: that is helpful with that color. As a follow-up, I am-- Operator: Go ahead. Richard Cohen: Go ahead. No. Izilda Martins: That will actually be 1 of the best examples of it. Of integrating AI with a software because that system will actually be able to tell an operator what is wrong, where the inventory is, which operator should go fix it. So that is that is gonna be a very sweet little business for us. Matt Summerville: Appreciate that color. Curious if Southern Glaciers is using that next gen storage structure And maybe remind us what the site opportunity may ultimately look like with that customer. Izilda Martins: So in Southern Glacier specifically? Yes. Richard Cohen: Southern Glaciers is not using it. Their second site is not using the newest structure in part because the way that the liquor industry works the cases are more standardized. And so I think the third and fourth sites probably will, but the second site was already started and designed And these are these are heavy-- are liquor heavy bottles and the case sizes are pretty standard. So it is not the new structure is beneficial to them, but with more varied box sizes, it is even more beneficial. But the real answer is they would have used it, but we already started with the old structure when we designed it, and it is just too far down the road. Izilda Martins: And then for the potential there, as Rick mentioned in his prepared remarks, we are starting the second 1. And as you know, they serve 47 US markets, including in Canada. Matt Summerville: Got it. Thank you, guys. Operator: Thank you. Our next call comes from the line of Joe Giordano of TD Cowen. Your line is now open. Joe Giordano: Hey, guys. Thanks for taking my questions. Just a couple of clarifications. Richard Cohen: The Atlanta site for GreenBox, is that like, a 1 customer site? I know you mentioned the customer does not want to be named. Is that customer planning on taking, like, the whole-- that is a multi customer site. We are we are just receiving the first customer, and we have not determined how much space they are gonna need, but they are building up pretty quickly. Joe Giordano: So Uh-huh. Richard Cohen: It will be a multi-tenant site. Joe Giordano: And then on the micro fulfillment, I am just curious as you said you are going to deliver-- you are building it out 6 months. And then you will do a second like, what is the mechanism in the contract? Mike, I thought the contract was kinda like once they accept it, it, automatically triggers the 5 billion and the 400-store order. What is required to have that hit? Richard Cohen: The way we have done things with Walmart in partnership is we build a prototype We build them so that they work. But we also know that we already can tell from the prototype. We are building it into a store. I am not sure I am supposed to announce the store, but it will it will become obvious pretty soon. But we will build it into the store, and then we will overbuild it to make sure that it works. And then we redesign it to make sure that we have got the cost out In this case, make it smaller, make it more efficient. Walmart may add items. They may delete items. And so and when we do the second version, that is usually what triggers okay. We want 400 of these. Got it. Okay. The most important thing with these sites is there is the coordination of the hardware, but most of the time, what is happened with these micro fulfillment sites is that the software has not been flexible enough, and the software and automation have not been coordinated enough. So we are gonna overbuild this but we probably will not build 400 of the version we are building now. But I think the 1 after this, we will. Joe Giordano: Great. Izzy, just how should we think about the pacing of system ads maybe for next quarter and into the near future? Izilda Martins: Yeah. So as you noticed, right, we had a we had a great 3 quarters in a row. I had originally mentioned a couple of quarters ago, maybe the fourth would be a little light. Actually, now as I am seeing the trajectory, I think the fourth quarter will be in line with the third, maybe just a little short of the third. So great, great expectations. Where we have been in the last 3 quarters and where we are going to land for the year. Joe Giordano: Great. Thanks, guys. Operator: Thank you. Our next question comes from the line of Kenneth Newman of KeyBanc Capital Markets. Your line is now open. Ken Newman: Hey. Good evening, guys. Izilda Martins: Maybe for my first question, Izzy, maybe you can help us just think about I will ask the new storage system or the revenue question on systems a little bit differently. As you think about the new storage system now being fully implemented, how should we think about the cadence of segment gross margins on improvement, just given that you do expect that to maybe ramp, it sounds like, maybe later in the back half of next year. But just trying to think about the opportunity for gross margin improvement there and the cadence of that in coming quarters? Ken Newman: Okay. Operator: So let me unpack your question a little bit. Izilda Martins: First with just let me repeat what Rick was saying on the micro fulfillment. So we are starting now the first prototype. We expect to get into after that. Or maybe in the middle of that, getting the second prototype. I really am not expecting just yet. The micro fulfillment, call it, the store order, that is mentioned in the contract probably until early 28. So then when you think about margins, right, our whole journey of improving margins, right, this contract is more profitable from that perspective. So you just have to think of it as we continue the mix. Right? The first step, as I have been talking about, is probably closer to the second half of next year. We get the inflection point of really having installation of the NextGen system, which will improve margins. Then you also then end up adding in the back of stores and that being also a big part of the mix, which gets us to, in this journey, how our margins continue to improve. The 1 thing I will say about margins, we had a great quarter from a margin perspective. As I said last quarter, I was expecting stable margins. Ken Newman: The quarter was really, really strong. I think the fourth quarter will behave very similar to our exit trend in the second. So I hope that helps. Izilda Martins: Sure. Third quarter. Ken Newman: Yep. that is very helpful. I appreciate that. Maybe for the follow on here, Rick, it was interesting to see a couple of bolt on deals this quarter. You did a bolt on last quarter as well. As you look at the forward innovation pipeline, there any color you can give on just other types of deals that you are looking to maybe help you drive faster deployments? And I would also be curious just if there is anything you can kind of talk about on what you are spending on AI development in terms of token spend versus the hardware spend on R&D? Richard Cohen: Yeah. So we are looking at more bolt-ons. it is an interesting time. As you guys know, there is so much money chasing AI. That a lot of the traditional automation companies are running into funding problems or and so we become a very good place for people to approach us as investors or acquirers. So that is why we built up our balance sheet We guessed right about that. I think we will see continued opportunities there. To acquire hardware. In the case of ARMS, it was software. So and some companies we are looking at are a combination of interesting technology, both hardware and software in vision. Ken Newman: The question you asked about AI, the way I would describe it is, I think we were doing AI 5 years ago before anybody called it AI. So we have been we have been doing self driving cars. Richard Cohen: We have been doing vision. We have been doing LIDAR. We generate, I think it is, a trillion bits of data every day at every site. Maybe it is 100 billion. it is incredible amount of data at every site. And so we are looking to economically store it in the cloud, and then we are writing our own AI So, yes, we are using some AI to audit code. And that is helpful. But mostly, what we will do is we will develop our own AI agents that will actually be able to predict and tell us what is gonna go wrong with our systems before they go wrong, and then actually communicate to the robots drive them out of the system, tell the maintenance people what is wrong with them, and fix them. So that is that is not something that we are gonna pay a lot of money for outside. Ken Newman: that is something that we have been building here for a long time. And that is why you know, I think most people consider us 1 of the leading companies in the world with physical AI. And I think there is a lot of misnomers about that, but we are actually doing it. And we have been doing it for a long time. Before we used to call it machine learning. They used to call it a whole bunch of other things. But now we are actually learning how to use AI, not just to generate reports, but actually to communicate directly with our robots and, in some cases, fix them, in some cases, tell them what to do. In some cases, tell them where to go to the exit ramp and get fixed. So let me just if I could just clarify that last point, Rick. Richard Cohen: When I when you talk about scaling that infrastructure on the AI software side, does that require an incremental or scale up in tokens needed to operate that system? Or is that really just on the inference that, that you get to scale? Yeah. So that is a great question. We are using some tokens. But there is a lot of open source AI there is a lot of AI that and we are also looking at different forms of AI. there is some AI that we can actually not have to go to the cloud. We can actually imbue that technology right into our bots. Because with the new NVIDIA chips we have 4x as much storage, and we will have more storage on our bots that we did not have 2 years ago. So I do not think tokens, I do not think AI expense is gonna be a major issue for us, and we are very focused on doing as much as we can internally ourselves. So, 1 of the things that we have learned is that about 80% of the AI that maybe looked at using last year was a lot of formatting. It was not actually using the data that we needed So 1 of the things we are focused on is because we generate so much data, because we have always mined our own data, We are actually looking at what is the most efficient way to use our data that is cost effective. Ken Newman: Thank you. Appreciate it. Operator: Our next question comes from the line of Mark Delaney of Goldman Sachs. Your line is now open. Mark Delaney: Good afternoon. Thank you very much for taking the questions. I think better margins was 1 of the key highlights from the quarter. I believe was $11 million above the midpoint of your guidance, but you got even $12 million better. So can you share more on what led to the degree of margin improvement in 3Q and the upside relative to your forecast? Sure. Izilda Martins: I will take that. So just to unpack the margins. Right? If you think about it, just in the amount of revenue we had in the systems, those margins came in quite solid. Quarter over quarter, they actually came a little bit better than, expecting originally. But those really come down to the project execution and the mix of business we had in the quarter. I think the other thing that came in nicely this quarter was that our services right, it continued to deliver profitability. Maybe it was a little bit, you know, better than I expected, but at the end of the day, I did expect next quarter to be in line with this year with this quarter's revenue. And then last but not least, as you noted on EBITDA margin, the operating leverage was really good because when you look at the non GAAP FX year over year, it was only up 3%. So a combination of all those things, be it systems, operation services, and really the scale that we are getting in our FX really allowed us to deliver a more profitable quarter. Mark Delaney: Very helpful. My other question was on cash flow. You cited timing as the reason the free cash flow was a headwind in the quarter? Izilda Martins: I was just trying to understand how to think about free cash flow for the upcoming quarter, do some of those timing issues persist? Or maybe the better EBITDA will drive improved cash flow? Yeah. I would I would certainly look at the free cash flow for the quarter just as the timing item and not even timing that I have to wait for the whole fourth quarter. Those were really payments that just came in a week later, So I would say if I had a week more in the quarter, you would not see a blip in that. I think the better way to think about it is to your question on fourth quarter, I would expect a positive free cash flow. And I think just in general, given our business, better to measure us over a longer period of time and that the free cash flow will be on an annual basis will be positive. Operator: Our next question comes from the line of Robert Mason of Baird. Your line is now open. Analyst: Hey. Afternoon, guys. Thanks for the question. Now that you have owned FOXROBOSY for a little bit, curious if there is any updates to their product that you have made or contemplating that improves the integration with your system. And I think you have also mentioned some of their largest customers are not Symbotic customers. So any updates on discussions with any of their customers and whether they could be potential customers? Richard Cohen: We have been very encouraged. All of the FOXROBOSY customers are actually delighted that we bought the company. We are in talks with all of them. We have hired some new folks there. We have hired some new salespeople there. We are sitting down and doing a complete review with 2 of the larger customers and just talking about what they would like for next versions, what they would like for next steps. And so I think that is gonna be a very nice business. We have been very encouraged. We have had no headwinds. We are actually think the customers we are talking to are saying, we are really excited you own this company. And in some cases, they might want a symbiotic system, and in some cases, they are actually really interested in the combination of FOXROBOSY, the ARMS software, some of the other software we are looking at, actually helping them with a doc management system. So it is just we just started. it is a very small company, but I think it is got a very big potential. And we have been excited about the reception that we have got from all of the FOXROBOSY customers. Analyst: Thanks. Izilda Martins: And for my follow-up, Izzy, you have been on a nice sequential with EBITDA margin progression for the better part of 2 years. You did mention the fourth quarter guide kind of implies flattish EBITDA margin sequentially despite higher revenue. Could you unpack maybe why margins would not continue to improve with operating leverage? I think right now, I just wanna make sure that we see it coming. So right now, based on our latest forecast, we do expect OpEx to just increase slightly, and that would be more on the SG&A side. So you know, maybe it comes in better, but right now, my expectation is that the OpEx would be just a slight uptick. I think the other part, as I mentioned earlier, the gross margins where we landed on a non GAAP basis of 25% this quarter. Right now, I am going back to what I said, expecting stabilization at the end of the second quarter. So if they come in closer to in line with the second quarter, those are the 2 main reasons why you would see that EBITDA margin would be flat. Thank you. Analyst: Thank you. Operator: Our next question comes from the line of Guy Hardwick of Barclays. Your line is now open. Guy Hardwick: Hi. Hi, guys. So, you could update us on the remaining performance obligations. I think the 10 Q says $22.5 billion and 15% realized over the next 12 months. Does not look like the changes were as significant this quarter than the previous quarter. Just were there anything unusual or just also just regular kind of contract plus ups as you begin deployments, particularly, I think there is another you said 11 starts. that is correct. Izilda Martins: So the 22.5 and the banding of within the next 12 months of 15%, that is exactly what we put out there. I think it is just it just has once again to do with the mix of deployments. So just to before I even get into the deployment, right, the 22.5 coming off at 22.7, Got a healthy amount of revenue in the quarter. You decreased it As you know, we have pricing adjustments when we redo the backlog. Plus the fact that we added Southern Glaziers. But it really then comes down when you are tracking it just really comes down to the 11 deployments we are putting in the quarter. Just what those pricing adjustments work. So it could be lumpy at any given time. I think the more promising thing is that despite the revenue that we are generating every single quarter, our backlog still remains very, very stable. And as we said before, that backlog still does not include the contract for the 400 back of store system. Guy Hardwick: And Izzy, it looks like revenue per deployment has been falling now for at least 4 quarters. Is that kind of a mix effect? What is the kind of driver? it seems a little odd at system sizes in the Walmart business is actually going up. Izilda Martins: Right? Agreed. But it also just has to do with, at what point in the cycle we are in the installation phase. Right? Because the revenue is gonna come in as we get you know, get closer to month 13 forward. So there is there is a little bit of lumpiness, but I think it is better instead of focusing on 1 given quarter, if you look at the multiple of the quarters and where we are and what the expectation is going forward. Given that the 15% banding is at 15% for the next 12 months. Guy Hardwick: So it is just, does that mean that you would expect revenue per deployment to start going up again, or will it continue to sort of trend down? Izilda Martins: I think in the coming quarters. We do not guide to backlog. Think the expectation for the next quarter, given the guide we gave, that is really where our expectation. But, of course, we are always looking to not only have stable backlog, but to increase our backlog. Richard Cohen: Well, the revenue's going up. We expect revenue to go up. Izilda Martins: Yeah. And we do expect revenue to go up, of course. Richard Cohen: that is where the 15% comes in. Guy Hardwick: Thank you. Operator: Our next question comes from the line of Colin Rusch of Oppenheimer and Company. Your line is now open. Colin Rusch: Thanks so much, guys. You know, now with the ARMS technology platform, purchased, can you talk a little bit about the opportunity to, start introducing new offerings with semi-automation or, robots that are more interactive with humans and existing assets. Might be a little bit lower barrier to entry for some of the customers that you might want to grow? I am not sure I understand your question. Richard Cohen: I am just looking for, you know, a sense of opportunities that you guys could bring to market that would be a little bit lower price point? Yeah for customers. Colin Rusch: They are a little bit lower barrier to entry to get them started. and then move to fully automated systems. Richard Cohen: Yes. So I think the ARMS software is something we could sell to a customer The company actually does not make anything except software. Colin Rusch: So we could sell that to customers and introduce our software The other thing is that the Fox robots, these are $100 thousand machines. Richard Cohen: And so I think that is the way I look at it is we will become our hardware will continue to grow. Our sales are gonna continue to grow, but we will become much more of a software centric company that is selling machines that basically perform for what we want our software to do. So for instance, some of the FOXROBOXY customers there is a company, it is no secret, it is DHL, 1 of the largest 3PLs in the world. They really like the FOXROBOSY robots. They want us to help them manage the dock. They may never buy a Symbotic system, but you know, if you sell I do not know, you sell 20 thousand of these $100 thousand machines. that is a pretty good sale. So they are not saying we sell that to DHL, but it is a huge market out there. And it is a much easier point of entry. Your question is, is appropriate because the last 2 weeks we have had 2 major potential customers, retailers who are interested in automation great companies, well known names, and they are really they are really looking at that they are really looking at how they can enter into the automation space without a lot of experience so we can sell them a very small system. We can sell them small system and a dock system. So that is 1 of our focuses is to get some of these very large customers in with an entry level product. So it could be a single 1-in and a 1-out cell, That could be in the tens of millions low tens of millions number. And so, yes, that is what we are looking at. And not to mention that the back-of-store system is another opportunity. Colin Rusch: Perfect. And then, there is certainly been a lot of investment around perception technology, and notably, 1 of the LiDAR vendors is now selling LiDAR with color capability and functional safety. I am just curious about how much leverage you might get from those sorts of perception solutions into simplifying bot design. And optimizing performance, you know, and how we should think about the adoption cycle and some of those newer perception technologies going forward? Richard Cohen: Yeah. Yeah. So there is a number of people that are doing LiDAR slow moving bots to interact with people. I will not mention names of companies, but you know who they are. What we are doing is bots with LiDAR that are that are that are fast moving, and weigh a lot. The change in technology and the reason we will expect to have LiDAR on all our bots within the next I do not know, 2 years on the outside is that these LiDARs used to cost 4 years ago, they were $5 thousand. Now they are under $500. So they become very affordable for our bots, and then it really enables our software So while other people are using LiDAR, for basic like, a Kiva bot that moves slow, follows a line, meant to be used with humans. What we are really doing is putting LiDAR on bots like a self driving vehicle. That wants to go fast, And so we are really trying to have bots that are now combined with ARMs and AI. Really getting much closer to, within our structure, a lights-out facility that really we do not we may go long periods of time before humans actually have to go in and interact with a bot. That kind of technology does not exist out there for warehouse automation. And that is our goal. Perfect. Colin Rusch: Thanks, guys. K. Operator: Thank you. Our next question comes from the line of Derek Soderberg with Cantor Fitzgerald. Your line is now open. Derek Soderberg: Yeah. Hey, everyone. Thanks for taking my question. Wondering, Rick, if you can expand on the Arms acquisition a bit. You talked about a little bit in the prepared remarks and during the Q&A. I was wondering how you will monetize that. Is that gonna be a subscription or bundled through the system's price? And is this more for GreenBox, or is the plan to deploy this with your large existing customers as well? Richard Cohen: No, we will deploy this with as an option for all of the Symbotic customers, including GreenBox. So it will be a software add-on. Derek Soderberg: Got it. And, Rick, could you just talk about where this acquisition kind of started? Was this something customers were asking about? And then just high level, was curious if you think eventually a large retailer might in a sense, cede control of the distribution facilities to Symbotic or GreenBox, as you sort of really fully automate the supply chain here, if maybe it makes more sense for you guys to take on the facilities and they would just pay you per case, or any of those types of conversations happening. Thanks. Richard Cohen: Yeah. So GreenBox is definitely getting those inquiries, and we have been funneling them through GreenBox. We also have a number of sites, number of customers where we sold them a system and then we run the system at a cost per case. And ARMS just means that if we were to do that with this kind of maintenance, that we would charge them, and our operating costs would be lower. And so we would be the beneficiary both of the software and of the more efficiencies. What ARMS does is it creates a database combined with the operating system, which is inherent in every Symbotic system, but it says to somebody, that so these everybody all the maintenance people, people in the front of the structure or working there have a handheld device. And it would say, lift 606 and here and then and geolocate it in this particular part of the building. And remember, some of these buildings are a million square feet. This lift has a failed valve I need you to go there. here's a picture of what it should take to fix it. I have already checked before you go. This is what AI does. I have already checked these 2 parts are in inventory, so do not go to the lift and then go to the inventory room. Go to the inventory room, get these 2 parts, go to the lift, The whole thing should take you 40 minutes. That we have we have been struggling with how do we make these maintenance systems more efficient. And we could sell this kind of system along with some of the Symbotic software to a lot of people in the world. This is the ultimate warehouse management maintenance system. Got it. Thank you. Derek Soderberg: Yep. Operator: Thank you. Our next question comes from the line of Greg Palm of Craig-Hallum. Your line is now open. Greg Palm: Yeah. Thanks. I wanted to go back to the OpEx and maybe honing a little bit more on R&D. I mean, in light of a lot of these kinda newer opportunities, yeah, perishables and micro fulfillment, it was, maybe a little bit odd to see R&D come down quite as much. It does not sound like that might go up, I think, as you said, maybe more stable. So I guess, is that just are we really peering things back, or is that more kind of a reallocation of expenses? Just wanted to get a little bit more color there. Izilda Martins: Yes. Yes. Hi, Greg. So let me let me step back. First and foremost, R&D expense quarter over quarter was flat. All the things that Rick mentioned are the things that we are gonna get started on. So hence, when I said earlier, I expect overall OpEx to go up. My expectation is that between R&D and SG&A, we do expect a little bit of an uptick. But as always, we wanna maintain the ultimate flexibility in being able to increase our R&D. that is where I make that comment of that is when I EBITDA margin staying flat quarter over quarter is really to give us that flexibility there. So I would not say R&D has come down. It has stayed flat. We have gotten, you know, call it to a rhythm on the things we are investigating, but I expect a little bit of an uptick. Not only in the fourth quarter, but in the quarters to come. Greg Palm: Okay. That makes sense. And I guess maybe just shifting topics entirely just in light of the other news. Steve's joining the board of directors. I am curious. Maybe you can give us some thoughts on, given his background, what he brings to the table and how he might sort of help you scale to the next level. Richard Cohen: Yeah. So I met Steve through 1 of 1 of my other board They were on a board together, spent a bunch of time with Steve. Steve, with his background. strategically M&A. I think will be very, very helpful in helping us look at We plan to be acquisitive. We built a balance sheet to be acquisitive. And so that is what we are working on. And so Steve is a perfect -- a perfect Board member for that. Greg Palm: Yep. Okay. Makes sense. Thanks. Richard Cohen: And his background and his background when he was at Bain was in the tech sector. Operator: Thank you. Our next question comes from the line of Michael Latimore of Northland Capital Markets. Your line is now open. Michael Latimore: Great. 2 questions. I guess, on the ARMS acquisition, how might you price that? You know, like,, per warehouse? How much might you charge for that or whatever metric you use there? And then also, in the in the third quarter, how much revenue came from just developing the revenue around micro fulfillment? Izilda Martins: I will take the ARMS -- I mean, the ARMS will be-- ARMS will be a classic value pricing. Richard Cohen: If we can save somebody $1 million in warehouse maintenance We are gonna charge them a portion of that. Yeah. Izilda Martins: On the micro fulfillment side, the amount of revenue in recorded in the quarter is in the high single digit range. Which is really kind of the average that I would expect going out. Michael Latimore: Okay. Great. Thank you. Operator: Our next question comes from the line of Joe Giordano of TD Cowen. Your line is now open. Joe Giordano: Hey. Thanks for letting me have the follow-up here. Just a quick 1, Rick, on GreenBox. I am just curious what the final, design looks like for this customer. Like, what did you guys what did they decide to do in terms of like, trucks and who is responsible for that and how things are getting to and from the site? Just I think that was kind of up in the air potentially as a lot of different ways you can go? I am curious. Richard Cohen: We know how the inside of the building looks, but how is the whole operation being -- what is the what is the flow sheet? Yeah. So we made an announcement. We partnered with Manhattan on the software piece because so many people in that we have talked to are already familiar with the Manhattan integration layer We are also doing our own integration layer But the inside of the building is pretty straightforward. It will do-- we will move pallets. We will move cases. We will do each picking. And we are both hired some of our own transportation people and also engage with some potential transportation brokerage or transportation companies that actually can bring customers into us. So we will manage freight when the customers want us to manage the freight. We will have that capability. Both in and out of the building. But probably more so out of the building. Joe Giordano: Good. Thank you. Operator: This concludes the Q&A session. I would now like to turn it back to Charles Lowell Anderson for closing remarks. Charles Lowell Anderson: Yes. Thanks, everybody, as always, for joining our call tonight. We really appreciate your interest in Symbotic, and I hope everybody has a good day. Thanks so much. Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Before you buy stock in Symbotic, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Symbotic wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by the continued expansion of systems in deployment, reaching 77 total systems, alongside growth in recurring software and services revenue. Management is leveraging a 'modularized' software approach to create specialized bots for varied tasks, including the deployment of over 1,000 larger bots to handle a wider variety of SKUs. The company is pivoting toward a software-centric model where hardware serves as the execution layer for proprietary AI and optimization tools. Strategic positioning is being enhanced through 'tuck-in' acquisitions like ARMS Innovations and Box Robotics to capture value across the entire warehouse lifecycle, from the dock to maintenance. Operational efficiency gains and cost discipline from scale contributed to significant adjusted EBITDA growth, which more than doubled year-over-year. The partnership with Walmart is deepening as 'break pack' products for individual items have now begun deployment at half of Walmart's regional distribution centers. Management expects a significant revenue inflection point in the second half of next year as the NextGen storage structure moves into full installation. The SymMicro store-based system is expected to trigger a 400-store order from Walmart once the second prototype version is validated, likely around early 2028. Future margin expansion is predicated on a shift in revenue mix toward higher-margin software add-ons and the more profitable NextGen system architecture. The company plans to remain acquisitive, utilizing its $1.7 billion cash balance to target hardware and software technologies that solve specific automation gaps like perishables and dock management. Guidance for the fourth quarter assumes stable gross margins and a slight uptick in OpEx to provide flexibility for increased R&D and SG&A investments. A $19 million unrealized non-cash gain was recorded due to the increased fair value of the strategic investment in Nyobolt, the company's battery supplier. Backlog experienced a slight sequential decrease to $22.5 billion, primarily reflecting revenue recognition and final pricing adjustments on new projects. Cash and equivalents decreased to $1.7 billion due to the timing of cash receipts and project-related activity, though management expects positive free cash flow for the full year. The company is integrating LiDAR and advanced camera systems into its bots to enable high-speed, 'lights-out' operations that minimize human interaction. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The first SymMicro prototype will take approximately 6 months to install in a Walmart store, with a second site following shortly after. Management expects to begin building and testing prototypes for the perishable goods market within the next 6 months due to high customer interest in reducing construction costs. Symbotic plans to use 'value pricing' for the ARMS software, charging customers a portion of the maintenance and operational savings the system generates. The software will be offered as an add-on for all Symbotic customers and GreenBox sites to optimize the movement of equipment and personnel. The Atlanta GreenBox site is live and receiving product for its first customer, though it is designed as a multi-tenant facility. The Lathrop site is expected to go live and become revenue-producing within the next 60 to 90 days. Management is seeing interest from large retailers for 'entry-level' automation, such as single-cell dock systems costing in the low tens of millions. This strategy aims to lower the barrier to entry for customers without prior automation experience before scaling to full systems.

Symbotic Inc. SYM used its fiscal third-quarter 2026 call to emphasize that deployment growth, execution and a broader product set are translating into stronger profitability. Management also provided clearer timing on the next-generation storage architecture, the SymMicro rollout and Exol, while keeping its near-term margin outlook measured. Revenues reached $721 million, up 22% year over year, while adjusted EBITDA rose to $95 million from $45 million a year earlier. Earnings of 9 cents per share missed the Zacks Consensus Estimate of 12 cents. Revenues topped the $714.8 million consensus. In response to a Goldman Sachs analyst, CFO Izzy Martins attributed the EBITDA upside to systems execution, profitable operations services and operating leverage. Adjusted gross margin reached 25%, while non-GAAP operating expenses rose only 3% year over year. Symbotic Inc. price-consensus-eps-surprise-chart | Symbotic Inc. Quote Martins guided fiscal fourth-quarter revenues in the range of $760 million to $780 million and adjusted EBITDA in the range of $100 million to $105 million. The CFO said adjusted EBITDA margin could remain roughly flat sequentially. She cited a modest increase in operating expenses and a more conservative gross-margin assumption after an unusually strong third quarter. Martins also told the Goldman Sachs analyst that fiscal fourth-quarter free cash flow should be positive. She characterized the third quarter's $164.6 million outflow as a payment-timing issue and maintained that annual free cash flow should be positive. Martins said the next-generation storage structure is beginning to support deployment growth, but the larger revenue inflection should arrive in the second half of fiscal 2027. The company started 11 deployments during the quarter, taking systems in deployment to 77, and moved four systems into operation, bringing the operational total to 56. CEO Rick Cohen said Southern Glazer's signed for a second site after its first facility's success. He added that later sites could use the new structure, although the second site was already too far into design. Cohen said the first new SymMicro system at a Walmart store should take about six months to come online, with a second site following shortly afterward. A TD Cowen analyst asked what would trigger the 400-store commitment. Cohen said Walmart typically evaluates an overbuilt prototype, then a redesigned version with lower cost, smaller size and refined functionality before ordering at scale. Martins added that she does not expect the store order referenced in the contract until early 2028. The $22.5 billion backlog still excludes the 400 back-of-store systems. Cohen described ARMS Innovations as a software add-on for Symbotic customers and Exol, with pricing tied to a share of the maintenance savings delivered. He said ARMS can combine site data, equipment location, parts availability and repair instructions to direct maintenance work. Fox Robotics offers another lower-cost entry point through dock automation and potential cross-selling. Addressing a D.A. Davidson analyst, Cohen said Exol's Atlanta site is live and receiving product from its first customer. The C&S site in Lathrop is expected to begin filling within 60 to 90 days. Cohen's message centered on broadening the platform through new products, software and tuck-in acquisitions while using the company's balance sheet to pursue additional automation technologies. Martins paired that expansion agenda with discipline on project execution, operating leverage and cash generation. The call positioned the next-generation architecture as a fiscal 2027 driver, while the 400-store SymMicro order is not expected until early 2028. SYM carries a Zacks Rank #3 (Hold), placing it outside the Zacks Rank #1 (Strong Buy) and #2 (Buy) groups that Zacks identifies as the strongest starting point for stock selection. You can see the complete list of today’s Zacks #1 Rank stocks here.It has a Growth Score of A. The Value and Momentum Scores of F are weak under the A-to-F grading framework. It has a VGM Score of C. The combination lacks the favorable A or B profile associated with better expected performance. The Zacks Rank can change as analyst estimates are revised after the reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Symbotic Inc. (SYM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Symbotic Inc.? Here are five stocks we like better. Strong third-quarter performance: Symbotic’s fiscal Q3 2026 revenue rose 22% year over year to $721 million, while GAAP net income reached $55 million and adjusted EBITDA more than doubled to $95 million. Deployment and product expansion continued: The company began 11 new system deployments, increased operational systems to 56 and expanded Walmart initiatives, including BreakPack and a next-generation SymMicro installation. Positive near-term outlook: Symbotic forecast fiscal Q4 revenue of $760 million to $780 million and adjusted EBITDA of $100 million to $105 million, while pursuing growth through acquisitions, new software offerings and automation for perishable goods. Symbotic’s Earnings Beat Reignites Upside Talk Symbotic (NASDAQ:SYM) reported fiscal third-quarter 2026 revenue of $721 million, up 22% from a year earlier and 7% sequentially, as the warehouse automation company expanded system deployments and grew recurring revenue from operational systems. GAAP net income was $55 million, compared with a net loss of $21 million in the fiscal third quarter of 2025. Adjusted EBITDA more than doubled year over year to $95 million, exceeding the company’s forecast range. Chief Financial Officer Izzy Martins said the result reflected expanding margins, project execution, cost discipline, benefits from scale and operating leverage. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control 3 Insider Moves You Shouldn’t Ignore Heading Into 2026 “We delivered strong third quarter results, highlighted by continued revenue growth and expanding margins,” Founder, Chairman and CEO Rick Cohen said. He said the company remained on track to meet the objectives it established at the start of the fiscal year, including broadening customer opportunities, improving profitability and investing in product development. Symbotic started 11 new system deployments during the quarter, including a second site for Southern Glazer’s Wine & Spirits, bringing total systems in deployment to 77 at quarter-end. The company also brought four systems into operation, increasing its total operational systems to 56. → 3 Drone Stocks That Should Soar After the Summer Slump 10X Gains? These 3 Robotics Stocks Could Explode by 2035 Systems revenue rose 20% year over year and 6% sequentially to $671 million. Software revenue increased 57% to $13 million, while operations services revenue rose 49% to $37 million. Southern Glazer’s signed for its second facility following the performance of its first site, Cohen said. The second project will not use Symbotic’s newest storage structure because the design process was already underway and the beverage distributor’s more standardized case sizes made the older structure suitable, according to Cohen. He said later Southern Glazer’s sites could use the newer structure. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth The company ended the quarter with backlog of $22.5 billion, slightly below the prior quarter. Martins said the change primarily reflected revenue recognized during the quarter, pricing adjustments for projects begun in the period and the addition of the Southern Glazer’s site. The backlog does not include the potential contract for 400 back-of-store systems with Walmart, she said. Cash and cash equivalents were $1.7 billion at quarter-end, down from $2 billion in the prior quarter. Martins attributed the decrease primarily to the timing of cash receipts associated with project starts and cash use for project activity. She said the company expects positive free cash flow in the fiscal fourth quarter and on an annual basis. Cohen said Symbotic’s BreakPack product, designed to handle individual items, has begun deployment at half of Walmart’s regional distribution centers. The company also started installing its first newer-version SymMicro e-commerce fulfillment system at the back of a Walmart store. Symbotic has 19 older versions of the system in operation, Cohen said. The new installation is expected to take about six months, followed shortly by a second site. He said the second version is expected to provide the basis for Walmart to decide whether to proceed with a larger rollout. Martins said she does not expect the potential back-of-store order referenced in the Walmart contract to begin affecting results until early 2028. She said the back-of-store business would be more profitable and that installations of the next-generation storage system are expected to become a more significant margin driver in the second half of the following fiscal year. Symbotic is also evaluating automation for perishable goods. Cohen said the company has received substantial interest in that category and expects to begin building and testing its first prototypes within approximately six months. The company said it deployed more than 1,000 larger SymBots during the calendar year to accommodate a broader set of stock-keeping units. It is also rolling out LiDAR, enhanced camera systems, Nyobolt batteries and other upgrades intended to improve system efficiency and performance. Symbotic completed two tuck-in technology acquisitions: Fox Robotics, which provides dock automation, and ARMS Innovations, which offers warehouse operations optimization software. Cohen said ARMS software is being integrated with Symbotic’s operating system and will be offered as a software add-on to Symbotic customers, including Exol customers. He said the ARMS platform could help identify maintenance issues, locate equipment and inventory, direct workers to needed repairs and identify required parts. Pricing is expected to be based on the value it creates for customers, Cohen said. On Fox Robotics, Cohen said customers have responded positively to the acquisition and that Symbotic is discussing future product needs with larger Fox customers. He said the company sees opportunities to offer dock management systems that combine Fox equipment, ARMS software and other software capabilities. Exol’s Atlanta facility is live and receiving product from its first customer, though Cohen said the customer did not want to be identified. The Atlanta operation is designed as a multi-customer site. In Lathrop, California, Exol’s C&S site has completed its Symbotic system installation and is expected to go live within 60 to 90 days, Cohen said. For fiscal fourth-quarter 2026, Symbotic forecast revenue of $760 million to $780 million and adjusted EBITDA of $100 million to $105 million. Martins said the company expects fourth-quarter adjusted EBITDA margin to be roughly flat sequentially, reflecting a modest anticipated increase in operating expenses and expectations for gross margins to be closer to the company’s second-quarter level. She said research and development spending was flat sequentially in the third quarter but is expected to increase modestly in the fourth quarter and subsequent periods as the company continues product development. Symbotic Inc (NASDAQ: SYM) is a provider of advanced warehouse automation and robotics systems designed to improve throughput, space utilization and labor productivity in distribution centers and fulfillment operations. The company develops integrated hardware and software solutions that automate the storage, retrieval, sorting and palletizing of goods, positioning itself as a systems integrator for material handling challenges faced by large-scale retailers, wholesalers and third-party logistics providers. Products and services typically include autonomous robotic vehicles and shuttle systems, automated storage-and-retrieval equipment, robotic picking and palletizing cells, conveyors and sortation, together with control and management software that coordinates fleet operations and inventory flow. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Symbotic Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Symbotic, Inc. SYM reported mixed third-quarter fiscal 2026 results. Earnings missed the Zacks Consensus Estimate, while revenues surpassed the same. Quarterly earnings were 9 cents per share, missing the Zacks Consensus Estimate of 12 cents by 25%. In the year-ago quarter, the company had reported a loss of 5 cents per share. Meanwhile, total revenues of $720.8 million beat the consensus mark of $715 million by 0.9% and increased 21.7% year over year. Symbotic Inc. price-consensus-eps-surprise-chart | Symbotic Inc. Quote Symbotic shares have declined 26.4% over the past year, underperforming the S&P 500 composite’s 22.6% increase. Systems revenues, accounting for 93.1% of total revenues, increased 20% year over year to $671 million. The company started 11 new system deployments in the fiscal third quarter, bringing the total number of systems under deployment to 77 at quarter-end. Software maintenance and support revenues increased 57% year over year to $12.8 million, aided by growth in operational systems under support contracts. Operations services revenues totaled $37.1 million, up 49% year over year, primarily due to an increase in operational systems receiving these services. Adjusted EBITDA more than doubled to $95.2 million from $45.4 million in the year-ago quarter. The adjusted EBITDA margin expanded about 550 basis points year over year to 13.2%. Adjusted gross profit was $179.9 million, up 41.4% year over year. The adjusted gross profit margin improved 350 basis points year over year to 25% on strong project execution, cost discipline, scale benefits and a favorable revenue mix. SYM reported a backlog of approximately $22.5 billion. The sequential decline primarily reflected revenues recognized during the third quarter, partly offset by pricing adjustments on newly started projects and the addition of a second Southern Glazer’s site. Symbotic exited the third quarter with cash and cash equivalents of $1.75 billion compared with $2 billion at the end of the preceding quarter. The company used $147.3 million of cash in operating activities during the third quarter and reported negative free cash flow of $164.6 million, mainly reflecting the timing of customer receipts and cash usage related to project activity. For the fourth quarter of fiscal 2026, the company expects revenues in the range of $760-$780 million. The midpoint of the guided range is $770 million. Adjusted EBITDA is expected to be between $100 million and $105 million. SYM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Westinghouse Air Brake Technologies WAB, operating as Wabtec Corporation, reported encouraging second-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year. Quarterly adjusted earnings of $2.76 per share beat the Zacks Consensus Estimate of $2.63 by 4.9% and increased 21.6% year over year, owing to higher sales and operating margin expansion. Revenues climbed 17.5% to $3.18 billion and surpassed the consensus mark of $3.08 billion by 3.2%. United Airlines Holdings, Inc. UAL reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%. Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68 billion consensus mark. A 12.1% increase in total revenues per available seat mile or TRASM, and broad-based gains across premium, loyalty and cargo revenues, supported the top line despite sharply higher fuel costs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Symbotic Inc. (SYM) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Wabtec (WAB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For the quarter ended June 2026, Symbotic Inc. (SYM) reported revenue of $720.84 million, up 21.7% over the same period last year. EPS came in at $0.09, compared to -$0.05 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $714.76 million, representing a surprise of +0.85%. The company delivered an EPS surprise of -25%, with the consensus EPS estimate being $0.12. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how SYMBOTIC INC performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenue- Software maintenance and support: $12.77 million versus $12.63 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +57.2% change. Revenue- Systems: $670.95 million versus the three-analyst average estimate of $651.62 million. The reported number represents a year-over-year change of +20%. Revenue- Operation services: $37.12 million versus $31.8 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +49.1% change. Gross profit- Software maintenance and support: $9.28 million compared to the $9.09 million average estimate based on two analysts. Gross profit- Systems: $147.35 million compared to the $145.49 million average estimate based on two analysts. Gross profit- Operation services: $4.29 million compared to the $2.9 million average estimate based on two analysts. View all Key Company Metrics for SYMBOTIC INC here>>> Shares of SYMBOTIC INC have returned +14.9% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Symbotic Inc. (SYM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Symbotic Inc. (SYM) came out with quarterly earnings of $0.09 per share, missing the Zacks Consensus Estimate of $0.12 per share. This compares to a loss of $0.05 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -25.00%. A quarter ago, it was expected that this company would post earnings of $0.11 per share when it actually produced earnings of $0.44, delivering a surprise of +300%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. SYMBOTIC INC, which belongs to the Zacks Technology Services industry, posted revenues of $720.84 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.85%. This compares to year-ago revenues of $592.12 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. SYMBOTIC INC shares have lost about 20.2% since the beginning of the year versus the S&P 500's gain of 13%. While SYMBOTIC INC has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for SYMBOTIC INC was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.13 on $767.2 million in revenues for the coming quarter and $0.50 on $2.79 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Coherent (COHR), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This Laser and optics manufacturer is expected to post quarterly earnings of $1.62 per share in its upcoming report, which represents a year-over-year change of +62%. The consensus EPS estimate for the quarter has been revised 0.6% higher over the last 30 days to the current level. Coherent's revenues are expected to be $1.99 billion, up 30.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Symbotic Inc. (SYM) : Free Stock Analysis Report Coherent Corp. (COHR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Steve Pagliuca, Former Co-Chair of Bain Capital, Elected to Symbotic’s Board of Directors WILMINGTON, Mass., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Symbotic Inc. (Nasdaq: SYM), a leader in A.I.-enabled robotics technology for the supply chain, announced financial results for its third quarter of fiscal year 2026, which ended on June 27, 2026. Symbotic reported revenue of $721 million, up 22% year-over-year, and net income of $55 million, compared with a net loss of $21 million in the third quarter of fiscal year 2025. Adjusted EBITDA1 reached $95 million, more than double the $45 million in the third quarter of fiscal year 2025. Cash and cash equivalents totaled $1.7 billion at the end of the third quarter of fiscal year 2026, down from $2.0 billion at the end of the second quarter of fiscal year 2026. “We are well on track to deliver against our key objectives for our fiscal year,” said Rick Cohen, Symbotic Chairman and Chief Executive Officer. “Importantly, we are seeing increasing opportunities to broaden the scope of our work with existing and prospective customers.” “We delivered another quarter of growth and a large expansion in our profitability,” said Izzy Martins, Symbotic Chief Financial Officer. “Looking ahead, we see a continuation of our profitable growth trajectory supported by 77 systems in deployment.” OUTLOOK For the fourth quarter of fiscal 2026, Symbotic expects revenue of $760 million to $780 million, and adjusted EBITDA2 of $100 million to $105 million. WEBCAST INFORMATION Symbotic will host a webcast today at 5:00 pm ET to discuss its third quarter fiscal year 2026 results. The webcast link is: https://edge.media-server.com/mmc/go/symbotic-q3-2026. NEW BOARD MEMBER Symbotic also announced the election of Steve Pagliuca to its Board of Directors, effective August 4, 2026. Mr. Pagliuca is the Founder and CEO of PagsGroup, a growth capital investment firm with expertise in biotech, technology, media, and sports. He is also a Chairman and Principal Owner of Atalanta B.C. football club. Previously, he was a Managing General Partner and Co-Owner of the Boston Celtics, where he served as Chairman of the Basketball Committee and as Founder and President of the Boston Celtics Shamrock Foundation. He is also a former Co-Chair of Bain Capital, where he continues to serve as a Senior Advisor. “I am delighted to welcome Steve to our Board of Directors,” said Cohen. “He brings an exceptional track record of helping high-growth companies scale, navigate complex markets, and create lasting value. His strategic insight and experience building world-class organizations will strengthen our Board as we enter our next phase of growth.” ABOUT SYMBOTIC Symbotic is an automation technology leader reimagining the supply chain with its end-to-end, A.I.-powered robotic and software platform. Symbotic reinvents the warehouse as a strategic asset for the world’s largest retail, wholesale, food & beverage, and medical supply distribution companies. Applying next-generation technology, high-density storage and machine learning to solve today's complex distribution challenges, Symbotic enables companies to move goods with unmatched speed, agility, accuracy and efficiency. As the backbone of commerce, Symbotic transforms the flow of goods and the economics of the supply chain for its customers. For more information, visit www.symbotic.com. USE OF NON-GAAP FINANCIAL INFORMATION Symbotic reports its financial results in accordance with Generally Accepted Accounting Principles in the United States (“U.S. GAAP”). This press release contains financial measures that are not recognized under U.S. GAAP (“non-GAAP financial measures”), including adjusted EBITDA, adjusted gross profit, adjusted gross profit margin, adjusted research and development expenses, adjusted selling, general, and administrative expenses, and free cash flow. These non-GAAP financial measures have limitations as an analytical tool as they do not have a standardized meaning prescribed by U.S. GAAP. The non-GAAP financial measures Symbotic uses may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies and, therefore, are unlikely to be comparable to similar measures presented by other companies. Rather, these non-GAAP financial measures are provided as a supplement to corresponding U.S. GAAP measures to provide additional information regarding the results of operations from management’s perspective. Accordingly, non-GAAP financial measures should not be considered a substitute for, in isolation from, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. All non-GAAP financial measures presented in this press release are reconciled to their closest reported U.S. GAAP financial measures. Symbotic recommends that investors review the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures provided in the financial statement tables included below in this press release, and not rely on any single financial measure to evaluate its business. Symbotic defines adjusted EBITDA, a non-GAAP financial measure, as GAAP net income (loss) excluding the following items: interest income; income taxes; depreciation and amortization of tangible and intangible assets; stock-based compensation; business combination transaction expenses; equity method investment; internal control remediation; business transformation costs; fair value adjustments on strategic investments; restructuring charges; and other infrequent items that may arise from time to time. Symbotic defines adjusted gross profit, a non-GAAP financial measure, as GAAP gross profit excluding the following items: depreciation, stock-based compensation, and restructuring charges. Symbotic defines adjusted gross profit margin, a non-GAAP financial measure, as adjusted gross profit divided by total revenue. Symbotic defines adjusted research and development expenses, a non-GAAP financial measure, as GAAP research and development expenses excluding the following items: depreciation and amortization of tangible and intangible assets and stock-based compensation. Symbotic defines adjusted selling, general, and administrative expenses, a non-GAAP financial measure, as GAAP selling, general, and administrative expenses excluding the following items: depreciation and amortization of tangible and intangible assets; stock-based compensation; business combination transaction expenses; internal control remediation; business transformation costs; and other infrequent items that may arise from time to time. Symbotic defines free cash flow, a non-GAAP financial measure, as net cash provided by or used in operating activities less purchases of property and equipment and capitalization of internal use software development costs. In addition to Symbotic’s financial results determined in accordance with U.S. GAAP, Symbotic believes that adjusted EBITDA, adjusted gross profit, adjusted gross profit margin, adjusted research and development expenses, adjusted selling, general, and administrative expenses, and free cash flow non-GAAP financial measures, are useful in evaluating the performance of Symbotic’s business because they highlight trends in its core business. FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, Symbotic’s expectations or predictions of future financial or business performance or conditions. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning our possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates” or “intends” or similar expressions. Forward-looking statements include, but are not limited to, statements about our ability to or expectations regarding Symbotic to: meet the technical requirements of existing or future agreements with its customers, including with respect to existing backlog; expand its target customer base and maintain its existing customer base; realize the benefits expected from its GreenBox Systems LLC joint venture, which is now doing business as Exol (“Exol”), the commercial agreement with Exol, the commercial agreement with Nueva Wal Mart de México, S. de R.L. de C.V and the acquisition of the Advanced Systems and Robotics business from Walmart; realize its outlook, including its system gross margin; manage the timing and cost of any product replacement, programs and related recalls; anticipate industry trends; maintain and enhance its systems; execute its growth strategy; develop, design and sell systems that are differentiated from those of competitors; execute its research and development strategy; acquire, maintain, protect and enforce intellectual property; attract, train and retain effective officers, key employees or directors; comply with laws and regulations applicable to its business; stay abreast of modified or new laws and regulations applying to its business; successfully defend litigation; issue equity securities in connection with future transactions; meet future liquidity requirements and, if applicable, comply with restrictive covenants related to long-term indebtedness; timely and effectively remediate any material weaknesses in its internal control over financial reporting; anticipate rapid technological changes; maintain the listing of the Symbotic common stock on Nasdaq; and effectively respond to general economic and business conditions. Forward-looking statements also include, but are not limited to, statements with respect to: the future performance of Symbotic’s business and operations; expectations regarding revenues, expenses, adjusted EBITDA and anticipated cash needs; expectations regarding cash flow, liquidity and sources of funding; expectations regarding capital expenditures; the anticipated benefits of Symbotic’s leadership structure; the effects of pending and future legislation; the effects of inflation, prevailing price levels, exchange rates, changes in trade agreements and trade protection measures including tariffs and other economic factors; the direct and indirect effects of geopolitical conditions in the United States and in global economies, including those resulting from acts of war and conflicts and responses to such events; business disruption; disruption to the business due to Symbotic’s dependency on Walmart; increasing competition in the warehouse automation industry; any delays in the design, production or launch of Symbotic’s systems and products; the failure to meet customers’ requirements under existing or future contracts or customers’ expectations as to price or pricing structure; any defects in new products or enhancements to existing products; the fluctuation of operating results from period to period due to a number of factors, including the pace of customer adoption of Symbotic’s new products and services and any changes in its product mix that shift too far into lower gross margin products; and any consequences associated with joint ventures and legislative and regulatory actions and reforms. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. Certain of these risks are identified and discussed in Symbotic’s Annual Report on Form 10-K for the fiscal year ended September 27, 2025, filed with the U.S. Securities and Exchange Commission (the “SEC”) on November 24, 2025. These risk factors will be important to consider in determining future results and should be reviewed in their entirety. These forward-looking statements are expressed in good faith, and Symbotic believes there is a reasonable basis for them. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements are provided for the purposes of assisting the reader in understanding its financial performance, financial position and cash flows as of and for periods ended on certain dates and to present information about management’s current expectations and plans relating to the future, and the reader is cautioned not to place undue reliance on these forward-looking statements because of their inherent uncertainty and to appreciate the limited purposes for which they are being used by management. While Symbotic believes that the assumptions and expectations reflected in the forward-looking statements are reasonable based on information currently available to management, there is no assurance that such assumptions and expectations will prove to have been correct. The forward-looking statements relate only to events as of the date on which the statements are made and are based on the beliefs, estimates, expectations and opinions of management on that date. Symbotic is not under any obligation, and expressly disclaims any obligation, to update, alter or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Readers should carefully review the statements set forth in the reports that Symbotic has filed or will file from time to time with the SEC. Any financial projections in this press release or discussed in the webcast are forward-looking statements that are based on assumptions that are inherently subject to significant uncertainties and contingencies, many of which are beyond Symbotic’s control. While all projections are necessarily speculative, Symbotic believes that the preparation of prospective financial information involves increasingly higher levels of uncertainty the further out the projection extends from the date of preparation. The assumptions and estimates underlying the projected results are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the projections. The inclusion of projections in this communication should not be regarded as an indication that Symbotic, or its representatives, considered or considers the projections to be a reliable prediction of future events. Annualized and estimated numbers are not forecasts and may not reflect actual results. This communication is not intended to be all-inclusive or to contain all the information that a person may desire in considering an investment in Symbotic and is not intended to form the basis of an investment decision in Symbotic. The forward-looking statements contained in this press release and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees and other persons authorized to speak on our behalf are expressly qualified in their entirety by these cautionary statements. INVESTOR RELATIONS CONTACT Charlie AndersonVice President, Investor Relations & Corporate Development [email protected] MEDIA INQUIRIES [email protected] 1 Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is a non-GAAP financial measure as defined below under “Use of Non-GAAP Financial Information.” See the tables below for reconciliations to net income (loss), the most comparable GAAP measure. 2 Symbotic is not providing guidance for net income (loss), which is the most comparable GAAP financial measure to adjusted EBITDA, because information reconciling forward-looking adjusted EBITDA to net income (loss) is unavailable to it without unreasonable effort. Symbotic is not able to provide reconciliations of adjusted EBITDA to GAAP financial measures because certain items required for such reconciliations are outside of Symbotic’s control and/or cannot be reasonably predicted, such as the provision for stock-based compensation. 3 Amounts for the nine months ended June 28, 2025 have been revised to reflect the reclassification of $58.2 million of cash flows related to the ASR acquisition from investing activities to operating activities. As a result, previously reported net cash provided by operating activities and free cash flow each decreased by $58.2 million, to $278.1 million and $235.3 million, respectively. The revision did not affect total cash flows, net loss, or earnings per share. See Note 2 to the Quarterly Report on Form 10-Q for the quarter ended June 27, 2026. 4 Amounts for the nine months ended June 28, 2025 have been revised to reflect the reclassification of $58.2 million of cash flows related to the ASR acquisition from investing activities to operating activities. As a result, previously reported net cash provided by operating activities and free cash flow each decreased by $58.2 million, to $278.1 million and $235.3 million, respectively. The revision did not affect total cash flows, net loss, or earnings per share. See Note 2 to the Quarterly Report on Form 10-Q for the quarter ended June 27, 2026.