Smith Micro Software (SMSI) AI Stock Analysis

• Market Cap: $15.79M
• Dividend Yield: N/A
• Average Volume (3M): 289.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: -45.77%
• EPS Growth: 67.69%
• Country: US
• Employees: 164
• Sector: Technology
• Sector Strength: 90
• Industry: Software - Application
• EPS (TTM): -0.28
• Shares Outstanding: 20,994,917
• 10 Day Avg. Volume: 485,100
• 30 Day Avg. Volume: 289,845
• PEG Ratio: -0.01
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.51
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 1.46
• Enterprise Value/Ebitda: -0.28
• 1Y Price Target: $1.00
• Price Target Upside: 33.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 43 Neutral
• Price Target: $1.00 ▲(33.33%Upside)

Smith Micro Software's overall stock score is primarily impacted by its financial struggles, including declining revenues and negative cash flow, which are compounded by bearish technical indicators. Although strategic initiatives like SafePath 8 offer potential growth, the significant revenue decline and Nasdaq non-compliance concerns weigh heavily. The new executive appointments provide a slight positive counterbalance, but substantial challenges remain.

Smith Micro Software Business Overview & Revenue Model

Company Description

Smith Micro Software (SMSI) develops software solutions for wireless and cable service providers, mobile device manufacturers, and enterprises. The company focuses on creating products that enhance the user experience and optimize network performance. Its core offerings include family safety and location services, secure data management, and internet of things (IoT) solutions that enable connected devices to interact seamlessly.

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

Smith Micro Software Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.75
• 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 0.75 is below the 20-day moving average (MA) of 0.92, below the 50-day MA of 0.89, and below the 200-day MA of 1.00, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 37.15 is Neutral, neither overbought nor oversold. The STOCH value of 7.46 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 *	63 Neutral	$34.70B	5.15	-11.38%	1.67%	5.54%	-17.15%
MITQ	59 Neutral	$7.57M	―	-21.35%	―	-4.85%	43.93%
KPLT	58 Neutral	$53.25M	―	86.76%	―	9.71%	-1.97%
HUBC	51 Neutral	$11.64M	―	163.42%	―	-30.70%	82.02%
DTSS	49 Neutral	$15.77M	―	-501.24%	―	141.65%	60.23%
SMSI	43 Neutral	$15.79M	―	-55.77%	―	-45.77%	67.69%

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.

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 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.