Smith Micro Software (SMSI) AI Stock Analysis

• Market Cap: $14.66M
• Dividend Yield: N/A
• Average Volume (3M): 182.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: -38.89%
• EPS Growth: 64.99%
• Country: US
• Employees: 164
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): -0.78
• Shares Outstanding: 20,994,917
• 10 Day Avg. Volume: 113,803
• 30 Day Avg. Volume: 182,433
• PEG Ratio: -0.01
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.79
• P/FCF Ratio: -1.13
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 1.27
• Enterprise Value/Ebitda: -1.11
• 1Y Price Target: $4.00
• Price Target Upside: 471.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: $0.50 ▼(-28.57% Downside)

Smith Micro Software's overall stock score reflects significant financial challenges, with declining revenue and profitability issues. The technical analysis indicates a bearish trend, and the valuation metrics are weak. While there are some positive developments in product launches and partnerships, these are not enough to offset the financial and compliance risks.

Positive Factors

Product Innovation

The launch of new products like SafePath Kids and AI-enabled SafePath 8 enhances SMSI's product portfolio, potentially increasing market share and customer engagement in the long term.

Strategic Partnerships

Strong partnerships with major carriers like AT&T and T-Mobile could drive revenue growth and expand SMSI's market reach, supporting long-term business stability.

Improved Gross Margin

An improved gross margin indicates better cost management and operational efficiency, which can enhance profitability over time despite revenue challenges.

Negative Factors

Revenue Decline

A significant revenue decline suggests challenges in maintaining market competitiveness and customer retention, impacting long-term growth prospects.

Increased Operating Expenses

Rising operating expenses, particularly due to goodwill impairment, strain profitability and may necessitate cost restructuring to ensure financial health.

Nasdaq Non-Compliance Risk

Non-compliance with Nasdaq listing requirements poses a risk of delisting, which could limit access to capital markets and impact investor confidence.

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 generates revenue through a combination of software licensing, subscription services, and professional services. The company primarily earns money from its mobile device management solutions, where it charges clients for software licenses and ongoing subscriptions to access its cloud-based services. Additionally, SMSI provides consulting and support services that help clients implement and optimize their software solutions. Strategic partnerships with major telecommunications companies and device manufacturers also contribute to its revenue streams, as these alliances often lead to bundled services and expanded market reach. Furthermore, as more businesses and consumers seek secure and efficient mobile solutions, SMSI benefits from the growing demand for its products, enhancing its overall earnings potential.

Smith Micro Software Financial Statement Overview

Summary

Smith Micro Software is facing considerable financial challenges. The income statement shows declining revenue and significant losses, with a negative net profit margin. The balance sheet reflects low leverage but poor returns on equity, and cash flow analysis highlights negative cash generation. These issues indicate a need for significant financial restructuring.

Income Statement

Smith Micro Software's income statement reveals significant challenges. The company has experienced declining revenue over the past few years, with a TTM revenue growth rate of -3.72%. Profitability metrics are concerning, with a TTM net profit margin of -166.15% and an EBIT margin of -113.68%, indicating substantial losses. The gross profit margin remains relatively strong at 73.42%, but overall, the company is struggling to convert revenue into profit.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.09, suggesting limited leverage, which is a positive aspect. However, the return on equity is negative at -90.20%, reflecting the company's inability to generate returns for shareholders. The equity ratio stands at 75.76%, indicating a strong equity position relative to total assets, but the negative ROE highlights profitability issues.

Cash Flow

Cash flow analysis indicates significant challenges, with negative operating cash flow and free cash flow. The TTM free cash flow growth rate is -14.35%, showing a decline in cash generation. The operating cash flow to net income ratio is -1.85, and the free cash flow to net income ratio is 1.00, suggesting that cash flows are not supporting profitability. Overall, cash flow management remains a critical concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.66M	20.55M	40.86M	48.51M	58.42M	51.30M
Gross Profit	13.70M	14.43M	30.30M	34.30M	45.72M	46.11M
EBITDA	-15.66M	-19.10M	-10.49M	-17.67M	-7.24M	3.52M
Net Income	-31.00M	-48.70M	-24.40M	-29.28M	-31.04M	4.17M
Balance Sheet
Total Assets	29.58M	48.05M	85.58M	103.58M	115.36M	72.90M
Cash, Cash Equivalents and Short-Term Investments	1.40M	2.81M	7.13M	14.03M	16.08M	25.75M
Total Debt	2.06M	2.57M	3.26M	13.42M	5.87M	6.24M
Total Liabilities	7.17M	7.29M	10.19M	27.20M	14.80M	14.19M
Stockholders Equity	22.41M	40.76M	75.39M	76.38M	100.56M	58.72M
Cash Flow
Free Cash Flow	-11.63M	-14.31M	-6.98M	-19.31M	-13.75M	6.60M
Operating Cash Flow	-11.61M	-14.29M	-6.97M	-19.26M	-12.92M	7.92M
Investing Cash Flow	947.00K	178.00K	132.00K	115.00K	-57.50M	-14.68M
Financing Cash Flow	6.44M	9.80M	-60.00K	17.09M	60.74M	4.24M

Smith Micro Software Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMSI, the sentiment is Negative. The current price of 0.7 is below the 20-day moving average (MA) of 0.71, below the 50-day MA of 0.78, and below the 200-day MA of 0.97, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.37 is Neutral, neither overbought nor oversold. The STOCH value of 27.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SMSI.

Smith Micro Software Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.22%	1.83%	8.50%	-7.62%
SMSI	44 Neutral	$14.66M	―	-94.92%	―	-38.89%	64.99%
FTFT	―	$10.97M	―	-79.06%	―	―	―
AMST	―	$16.60M	―	-107.30%	―	―	―
MYSE	―	$8.55M	―	-62.70%	―	―	―
NVNI	50 Neutral	$21.13M	―		―	―	―
SPPL	―	$22.85M	―		―	―	―

Smith Micro Software Corporate Events

Smith Micro Software Announces Securities Purchase Agreement

On July 17, 2025, Smith Micro Software, Inc. announced a securities purchase agreement with institutional and accredited investors for a registered direct offering and concurrent private placement, resulting in gross proceeds of approximately $1.5 million. The offering included 1,612,903 shares of common stock and unregistered warrants to purchase an equal number of shares, with the proceeds intended for working capital and general corporate purposes. The transaction, which closed on July 18, 2025, is expected to impact the company’s operations by providing additional financial resources, while also adhering to Nasdaq listing standards by seeking stockholder approval for certain issuance limitations.

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.