Smith Micro Software (SMSI) AI Stock Analysis

• Market Cap: $17.49M
• Dividend Yield: N/A
• Average Volume (3M): 99.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: -45.77%
• EPS Growth: 67.69%
• Country: US
• Employees: 164
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Application
• EPS (TTM): -0.28
• Shares Outstanding: 19,413,820
• 10 Day Avg. Volume: 91,150
• 30 Day Avg. Volume: 99,883
• PEG Ratio: -0.01
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.28
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 1.25
• Enterprise Value/Ebitda: -0.24
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: $1.00 ▲(9.89%Upside)

Smith Micro Software's overall stock score reflects significant financial and operational challenges, including declining revenues and net losses. While technical indicators and strategic initiatives provide some optimism, the negative valuation metrics and Nasdaq non-compliance notice weigh heavily on the score. The company's future growth relies on successfully implementing new product strategies and improving its financial health.

Smith Micro Software Business Overview & Revenue Model

Company Description

Smith Micro Software, Inc. develops and sells software to enhance the mobile experience to wireless and cable service providers worldwide. It offers SafePath Family, SafePath IoT, and SafePath Home product suite, which provides tools to protect digital lifestyles and manage connected devices inside and outside the home; and CommSuite, a messaging platform that helps mobile service providers deliver a next-generation voicemail experience to mobile subscribers, as well as enables multi-language Voice-to-Text transcription messaging. It also offers ViewSpot, a retail display management platform that provides on-screen and interactive demos to wireless carriers and retailers; and technical support and customer services. The company was founded in 1982 and is headquartered in Pittsburgh, Pennsylvania.

How the Company Makes Money

Smith Micro Software makes money primarily through the sale of its software solutions and services to service providers, device manufacturers, and enterprises. The company generates revenue by licensing its software and by providing maintenance and support services. Key revenue streams include subscriptions for family safety applications, fees for IoT solutions, and partnerships with wireless carriers and cable operators who integrate Smith Micro's technology into their offerings. Additionally, the company may benefit from strategic alliances that enhance its market reach and product offerings.

Smith Micro Software Financial Statement Overview

Summary

Smith Micro Software faces significant financial challenges with declining revenues and persistent net losses impacting profitability and shareholder value. Despite a strong capital structure with low debt, the company struggles with cash flow generation, necessitating strategic measures to improve operational efficiency and enhance financial stability.

Income Statement

Smith Micro Software has experienced declining revenues with a significant drop from $48.5M in 2022 to $19.4M TTM. The gross profit margin stands at 72.1% TTM, indicating effective cost management, but the company faces challenges with profitability as highlighted by a net profit margin of -118.0% TTM. The EBIT and EBITDA margins are also negative, reflecting underlying operational inefficiencies affecting profitability.

Balance Sheet

The company's debt-to-equity ratio is low at 0.06 TTM, suggesting limited leverage which is favorable. However, the return on equity (ROE) is negative at -62.6% TTM due to losses, indicating the company is not generating returns for shareholders. The equity ratio remains strong at 84.3% TTM, reflecting a solid capital structure with low reliance on debt.

Cash Flow

Smith Micro Software's free cash flow is negative at -$13.6M TTM, showing challenges in generating cash from operations. The operating cash flow to net income ratio is 0.59 TTM, suggesting cash burn issues despite reduced operational losses. The company needs to improve cash generation to support its operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.38M	20.55M	40.86M	48.51M	58.42M	51.30M
Gross Profit	13.98M	14.43M	30.30M	34.30M	45.72M	46.11M
EBITDA	-17.26M	-42.31M	-10.49M	-17.67M	-7.24M	3.52M
Net Income	-22.87M	-48.70M	-24.40M	-29.28M	-31.04M	4.17M
Balance Sheet
Total Assets	61.20M	48.05M	85.58M	103.58M	115.36M	72.90M
Cash, Cash Equivalents and Short-Term Investments	28.27M	2.81M	7.13M	14.03M	16.08M	25.75M
Total Debt	7.00M	2.57M	3.26M	13.42M	5.87M	6.24M
Total Liabilities	12.51M	7.29M	10.19M	27.20M	14.80M	14.19M
Stockholders Equity	48.68M	40.76M	75.39M	76.38M	100.56M	58.72M
Cash Flow
Free Cash Flow	-13.57M	-14.31M	-6.98M	-19.31M	-13.75M	6.60M
Operating Cash Flow	-13.55M	-14.29M	-6.97M	-19.26M	-12.92M	7.92M
Investing Cash Flow	-20.00K	178.00K	132.00K	115.00K	-57.50M	-14.68M
Financing Cash Flow	9.71M	9.80M	-60.00K	17.09M	60.74M	4.24M

Smith Micro Software Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMSI, the sentiment is Neutral. The current price of 0.91 is above the 20-day moving average (MA) of 0.90, below the 50-day MA of 0.92, and below the 200-day MA of 1.00, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.63 is Neutral, neither overbought nor oversold. The STOCH value of 26.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SMSI.

Smith Micro Software Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MITQ	53 Neutral	$6.55M	―	-21.35%	―	-4.85%	43.93%
Sector *	49 Neutral	C$2.91B	2.04	-80.91%	2.67%	12.55%	-24.32%
SMSI	47 Neutral	$17.49M	―	-55.77%	―	-45.77%	67.69%
DTSS	45 Neutral	$14.66M	―	-501.24%	―	141.65%	60.23%
KPLT	41 Neutral	$35.16M	―	86.76%	―	9.71%	-1.97%
DATS		$13.27M	―	-53.43%	―	―	―
HUBC	38 Underperform	$5.51M	―	163.42%	―	-30.70%	82.02%

Smith Micro Software Corporate Events

Smith Micro Software Faces Nasdaq Non-Compliance Notice

On June 23, 2025, Smith Micro Software received a notice from Nasdaq indicating non-compliance with the minimum bid price requirement, as its stock price had been below $1.00 for 30 consecutive business days. The company has until December 22, 2025, to regain compliance, with the possibility of an additional 180-day period if certain conditions are met. Smith Micro intends to monitor its stock price and explore options to meet the listing requirements, although there is no assurance of compliance.

The most recent analyst rating on (SMSI) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Smith Micro Software stock, see the SMSI Stock Forecast page.

Smith Micro Software Appoints New COO and CFO

On May 27, 2025, Smith Micro Software announced the appointment of Timothy C. Huffmyer as Vice President, Chief Operating Officer, and Chief Financial Officer, effective June 9, 2025. Huffmyer, who previously served as the company’s CFO, will succeed James M. Kempton and bring his extensive experience from Urgent.ly Inc. and Black Box Corporation to drive Smith Micro’s growth and profitability.

The most recent analyst rating on (SMSI) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Smith Micro Software stock, see the SMSI Stock Forecast page.