Smith Micro Software (SMSI) AI Stock Analysis

• Market Cap: $14.39M
• Dividend Yield: N/A
• Average Volume (3M): 917.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: -24.08%
• EPS Growth: 70.11%
• Country: US
• Employees: 164
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.25
• Shares Outstanding: 21,458,637
• 10 Day Avg. Volume: 2,390,606
• 30 Day Avg. Volume: 917,415
• 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: 1.21
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 1.28
• Enterprise Value/Ebitda: -1.24
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: $0.50 ▼(-21.88% Downside)

Smith Micro Software's overall stock score reflects significant financial and technical challenges. The company's financial performance is the most critical factor, with declining revenues, substantial losses, and negative cash flows. Technical analysis indicates bearish momentum, further weighing on the stock's outlook. While strategic initiatives from the earnings call provide some hope for future improvement, the current situation remains challenging.

Smith Micro Software Business Overview & Revenue Model

Company Description

Smith Micro Software (SMSI) is a technology company that specializes in developing software solutions for mobile devices and telecommunications. Founded in 1982, SMSI operates primarily in the wireless and broadband sectors, providing services that enhance the performance and security of mobile networks. The company's core products include mobile device management (MDM) solutions, family safety applications, and software for managing and optimizing broadband services. SMSI's offerings aim to improve user experience and operational efficiency for both consumers and service providers.

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 faces significant financial challenges across all verticals. The income statement shows declining revenues and substantial losses, while the balance sheet reflects low leverage but poor returns on equity. Cash flow issues are pronounced, with negative cash flows and deteriorating cash generation. The company needs to address operational inefficiencies and improve revenue growth to stabilize its financial position.

Income Statement

Smith Micro Software's income statement shows significant challenges. The company has experienced declining revenue with a negative revenue growth rate of -1.61% TTM, indicating shrinking sales. Profitability metrics are concerning, with a negative net profit margin of -166.15% and negative EBIT and EBITDA margins, reflecting operational inefficiencies and high costs relative to revenue. The gross profit margin remains relatively strong at 73.42% TTM, suggesting some ability to cover direct costs, but overall profitability is severely impacted by high operating expenses.

Balance Sheet

The balance sheet of Smith Micro Software reveals a mixed picture. The debt-to-equity ratio is low at 0.09 TTM, indicating conservative leverage and a low risk of financial distress from debt. However, the return on equity is negative at -90.20% TTM, highlighting significant losses relative to shareholder equity. The equity ratio is not explicitly calculated, but the relatively low debt levels suggest a reasonable proportion of equity financing. Overall, while leverage is low, the company's inability to generate returns is a concern.

Cash Flow

Cash flow analysis for Smith Micro Software indicates substantial challenges. The company has negative operating cash flow and free cash flow, with a free cash flow growth rate of -14.75% TTM, suggesting worsening cash generation capabilities. The operating cash flow to net income ratio is negative, reflecting cash outflows exceeding net income losses. The free cash flow to net income ratio is slightly above 1, indicating that free cash flow is marginally better than net income, but both remain negative. Overall, cash flow management is a critical issue.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.36M	20.55M	40.86M	48.51M	58.42M	51.30M
Gross Profit	13.58M	14.43M	30.30M	34.30M	45.72M	46.11M
EBITDA	-13.99M	-19.10M	-10.66M	-17.67M	-8.74M	7.10M
Net Income	-29.80M	-48.70M	-24.40M	-29.28M	-31.04M	4.17M
Balance Sheet
Total Assets	27.13M	48.05M	85.58M	103.58M	114.51M	72.90M
Cash, Cash Equivalents and Short-Term Investments	1.39M	2.81M	7.13M	14.03M	16.08M	25.75M
Total Debt	2.37M	2.57M	3.26M	13.42M	5.87M	6.24M
Total Liabilities	7.24M	7.29M	10.19M	27.20M	13.95M	14.19M
Stockholders Equity	19.89M	40.76M	75.39M	76.38M	100.56M	58.72M
Cash Flow
Free Cash Flow	-9.91M	-14.31M	-6.98M	-19.31M	-13.75M	6.60M
Operating Cash Flow	-9.93M	-14.29M	-6.97M	-19.26M	-12.92M	7.92M
Investing Cash Flow	1.23M	178.00K	132.00K	115.00K	-57.50M	-14.68M
Financing Cash Flow	8.59M	9.80M	-60.00K	17.09M	60.74M	4.24M

Smith Micro Software Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.64 is below the 20-day moving average (MA) of 0.70, below the 50-day MA of 0.73, and below the 200-day MA of 0.89, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 41.96 is Neutral, neither overbought nor oversold. The STOCH value of 19.39 is Positive, 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	-10.20%	1.83%	8.50%	-7.62%
NVNI	40 Underperform	$11.13M	-0.90	―	―	―	―
SMSI	40 Underperform	$14.39M	-0.36	-101.21%	―	-24.08%	70.11%

Smith Micro Software Corporate Events

Smith Micro Software Approves Share Issuance Proposal

On October 16, 2025, Smith Micro Software, Inc. held a special meeting of stockholders where two proposals were voted on. The stockholders approved the issuance of shares under a Securities Purchase Agreement, which could exceed 20% of the company’s outstanding common stock, and also approved the potential adjournment of the meeting to solicit more proxies if needed.

The most recent analyst rating on (SMSI) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Smith Micro Software stock, see the SMSI Stock Forecast page.

Smith Micro Software Secures $400,000 Loan Agreement

On September 29, 2025, Smith Micro Software, Inc. entered into a Note Purchase Agreement with accredited investors to secure $400,000 in loans, accompanied by promissory notes and stock purchase warrants. The funds, expected to be used for working capital and general corporate purposes, are secured by the company’s assets and due by March 31, 2026. The agreement includes provisions for stockholder approval on warrant adjustments and is aimed at strengthening the company’s financial position.

The most recent analyst rating on (SMSI) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Smith Micro Software stock, see the SMSI Stock Forecast page.

Smith Micro Software Secures $805,000 in New Loans

On September 11, 2025, Smith Micro Software entered into Note Purchase Agreements with its chairman and CEO, William W. Smith, Jr., and its COO and CFO, Timothy C. Huffmyer, to secure loans totaling up to $805,000. These agreements, approved by independent committees, involve secured promissory notes and unregistered common stock purchase warrants, with the proceeds intended for working capital and general corporate purposes. The transactions are expected to impact the company’s financial flexibility and operational capabilities positively.

The most recent analyst rating on (SMSI) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Smith Micro Software stock, see the SMSI Stock Forecast page.

Smith Micro’s Earnings Call: Mixed Outlook Amid Innovations

The recent earnings call for Smith Micro presented a mixed outlook, reflecting both promising advancements and significant financial challenges. The company is making strategic moves with AI-enabled products and targeting new markets, yet it faces notable revenue declines and net losses. While cost reduction measures and product portfolio enhancements are positive steps, the financial hurdles remain a concern.

Smith Micro Reports Q2 2025 Earnings and Future Outlook

Smith Micro Software, Inc. is a company that develops software solutions to enhance mobile experiences, primarily serving wireless service providers with products that support digital family lifestyles and voice messaging capabilities. In its recent earnings report for the second quarter of 2025, Smith Micro announced a revenue of $4.4 million, a decrease from the $5.1 million reported in the same quarter of the previous year. Despite the decline in revenue, the company is preparing to launch SafePath® 8, a new product with AI-driven features, which is expected to drive revenue growth in the latter half of the year.