Record Quarterly Revenue and Strong YoY Growth
Revenue of $122.0M in Q1 FY2026, up 18% year-over-year; company noted this quarter set several all-time records.
Robust ARR Growth
Annualized recurring revenue (ARR) reached $157M, up 31% year-over-year and marking the fifth consecutive quarter of double-digit ARR growth.
Improving Profitability and Cash Generation
Quarterly adjusted EBITDA of $32M, up 23% year-over-year, with a record adjusted EBITDA margin of 25.8% and quarterly cash generation of $36M.
Balanced Segment ARR Contributions
Both reporting segments contributed materially to ARR growth: IoT Solutions ARR grew 32% YoY and IoT Products & Services ARR grew 26% YoY.
Particle Acquisition Expands Edge-to-Cloud Capabilities
Acquisition of Particle (announced Jan 27) adds approximately $20M in ARR, ~$13–$14M in revenue, and $1–$2M in adjusted EBITDA to FY2026 guidance; Particle brings ~240,000 developers, 14,000 companies, and notable enterprise customers (e.g., Jacuzzi, Goodyear, Watsco).
Clear Growth Guidance for Fiscal 2026
Fiscal 2026 guidance: ARR growth ~23%, revenue growth 14–18%, and adjusted EBITDA growth 17–21%. Q2 guidance: revenue $124–$128M and adjusted EBITDA $31.5–$33M.
Acquisition and Integration Track Record
Jolt integration progressing well (combined into SmartSense One) and Particle integration planned into IoT products & services; management reiterated acquisitions as top capital deployment priority and expects successful integrations to accelerate ARR and EBITDA scale.
AI and Edge Strategy Advancement
Management highlighted embedding AI capabilities into products and solutions and positioning across embedded solutions, edge intelligence and turnkey offerings to capitalize on AI, edge computing and industrial automation secular trends.