Sonim Technologies (SONM) AI Stock Analysis

• Market Cap: $7.37M
• Dividend Yield: N/A
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• Revenue Growth: 4.17%
• EPS Growth: -238.36%
• Country: US
• Employees: 131
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -4.83
• Shares Outstanding: 1,488,465
• 10 Day Avg. Volume: 736,839
• 30 Day Avg. Volume: 1,298,613
• PEG Ratio: >-0.01
• Price to Book (P/B): -47.08
• Price to Sales (P/S): 4.60
• P/FCF Ratio: -30.85
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 0.77
• Enterprise Value/Ebitda: -0.29
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $5.50 ▲(47.45% Upside)
• Action: Upgraded Date: 01/28/26
• Date: Action: Upgraded 01/28/26

The score is held down primarily by weak financial performance—heavy losses, substantial cash burn, and negative equity—despite a sharp revenue rebound. Technicals show mixed trend conditions with overbought momentum, while corporate events provide some support via balance-sheet simplification and potential Nasdaq compliance improvements; valuation is constrained by negative earnings.

Positive Factors

Sharp TTM Revenue Rebound

A 205.8% TTM revenue increase indicates renewed customer demand and larger order flows versus the prior period. If sustained, higher revenue can absorb fixed costs, support scaling, and provide a base to improve gross and operating margins over the next several quarters.

Strategic Divestiture and Rebrand to DNA X

The sale of the legacy enterprise devices business and rebrand to DNA X represent a structural business-model pivot from hardware to digital asset management. This shifts revenue mix toward software/Platform potential, which can deliver higher recurring margins if the new model gains traction.

Capital-structure Simplification via Note Prepayments

Prepaying and terminating promissory notes reduces near-term creditor obligations and simplified liabilities, improving transparency and easing balance-sheet monitoring. That lowers immediate bankruptcy/delisting pressure and can modestly improve access to financing while the new strategy is executed.

Negative Factors

Weak Profitability and Margins

Very low gross margins with large operating losses indicate the current business model struggles to convert sales into profits. Persistent negative margins erode equity and make it difficult to fund operations, invest in growth, or transition to a new business line without recurring external funding.

Material Negative Free Cash Flow

Sustained negative operating and free cash flow consumes liquidity and heightens reliance on external capital. Over a 2–6 month horizon this raises refinancing and dilution risk, limits ability to invest in product transitions, and increases the chance of disruptive financing terms or asset sales.

Restrictive Financing and Potential Dilution from DNA Deal

The DNA Holdings convertible note grants significant governance rights, anti-dilution protections and a put/convert feature that can force dilution or share repurchases if targets aren't met. Those terms constrain capital flexibility and increase long-term dilution/governance risk during the strategic transition.

Sonim Technologies Business Overview & Revenue Model

Company Description

Sonim Technologies, Inc. provides ruggedized mobile phones and accessories for task workers. The company offers ruggedized mobile phones, such as Sonim XP8, Sonim XP5s, Sonim XP3, and Sonim XP3plus based on the Android platform that are capable of attaching to public and private wireless networks; industrial-grade accessories, including remote speaker microphones, multi-bay charging accessories, and in-vehicle hands-free voice communications solutions; and cloud-based software and application services. It sells its mobile phones and accessories primarily to wireless carriers in the United States and Canada; and sells ruggedized phones, barcode scanners, and accessories through distribution channels in North America, South America, and Europe. The company serves transportation and logistics, construction, manufacturing, facilities management, energy and utility, and public sectors. The company was formerly known as NaviSpin.com, Inc. and changed its name to Sonim Technologies, Inc. in December 2001. Sonim Technologies, Inc. was incorporated in 1999 and is based in Austin, Texas.

How the Company Makes Money

Sonim Technologies makes money primarily through the sale of its rugged mobile devices and accessories. The company's revenue streams are driven by direct sales to enterprises, indirect sales through distribution partners, and strategic partnerships with network carriers who offer Sonim's devices to their customers. Additionally, Sonim generates revenue from providing extended warranty services, support, and repair services for their devices. Significant partnerships with major carriers and industrial clients contribute to the company's earnings by expanding its market reach and customer base.

Sonim Technologies Financial Statement Overview

Summary

Despite sharply higher TTM revenue (+205.8%), profitability and cash generation are very weak (gross margin ~18%, EBIT margin ~-54%, net margin ~-56%; TTM operating/FCF about -$26M). Negative equity (about -$0.7M) further limits financial flexibility even with modest absolute debt.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up sharply (+205.8% vs. the prior period shown), but profitability remains deeply challenged: gross margin is low (~18%) and operating losses are very large (EBIT margin ~-54%) with a steep net loss (net margin ~-56%). Results also show high volatility—near break-even in 2023, followed by a return to heavy losses in 2024 and TTM—raising questions on the durability of the current revenue rebound.

Balance Sheet

Leverage in absolute dollars looks modest (TTM total debt ~$5.1M on ~$40.2M of assets), but the capital structure is strained with negative equity (TTM stockholders’ equity about -$0.7M, after -$5.7M in 2024). That weak equity cushion limits financial flexibility and increases funding risk if losses persist, even though stated debt levels are not high.

Cash Flow

Cash generation is weak: TTM operating cash flow is materially negative (~-$26.0M) and free cash flow is also negative (~-$26.0M), indicating the business is consuming cash rather than self-funding. While free cash flow growth is shown as strongly positive in TTM, it is improving from an already negative base and remains meaningfully below zero, which heightens reliance on external liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	59.11M	58.30M	93.63M	69.83M	54.57M	63.99M
Gross Profit	10.83M	9.92M	19.32M	11.62M	6.41M	15.21M
EBITDA	-28.34M	-29.84M	2.50M	-11.43M	-36.33M	-26.97M
Net Income	-33.38M	-33.65M	-90.00K	-14.09M	-38.63M	-29.93M
Balance Sheet
Total Assets	40.22M	39.74M	56.04M	53.69M	41.09M	50.31M
Cash, Cash Equivalents and Short-Term Investments	2.14M	5.34M	9.40M	13.21M	11.23M	22.14M
Total Debt	5.07M	0.00	55.00K	213.00K	214.00K	362.00K
Total Liabilities	40.92M	45.44M	33.67M	33.64M	22.46M	21.90M
Stockholders Equity	-701.00K	-5.70M	22.37M	20.05M	18.63M	28.41M
Cash Flow
Free Cash Flow	-26.04M	-8.70M	-4.09M	-12.37M	-38.52M	-10.57M
Operating Cash Flow	-26.03M	-8.49M	-4.05M	-12.36M	-38.48M	-10.56M
Investing Cash Flow	-8.00K	-214.00K	-36.00K	-8.00K	-46.00K	-11.00K
Financing Cash Flow	19.12M	4.65M	272.00K	14.35M	27.61M	21.41M

Sonim Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.73
• 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 SONM, the sentiment is Negative. The current price of 3.73 is below the 20-day moving average (MA) of 5.86, below the 50-day MA of 4.99, and below the 200-day MA of 11.40, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 45.02 is Neutral, neither overbought nor oversold. The STOCH value of 5.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SONM.

Sonim Technologies 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%
FIEE	56 Neutral	$44.13M	-31.08	-66.84%	―	-5.65%	88.68%
SONM	51 Neutral	$7.37M	-0.03	-455.82%	―	4.17%	-238.36%
UTSI	50 Neutral	$22.02M	-3.63	-13.41%	―	-34.53%	-50.58%
MOB	43 Neutral	$48.70M	-1,800.00	-99.36%	―	-17.72%	8.82%
ASNS	42 Neutral	$1.77M	-0.03	-260.09%	―	-56.36%	32.37%
CMBM	41 Neutral	$34.18M	-0.35	―	―	―	―

Sonim Technologies Corporate Events

Sonim Technologies Rebrands as DNA X, Shifts Strategy

On January 23, 2026, Sonim Technologies implemented an amendment to its asset purchase agreement tied to the sale of its legacy business, replacing a planned escrow with a $1.5 million holdback at closing to cover purchase price adjustments and indemnification obligations, with any unused balance to be released after nine months and the company obligated to fund any shortfall. The amendment also revised indemnification terms, imposed a 60-day deadline to secure certain contract assignment consents, and coincided with the prepayment and termination of two promissory notes totaling approximately $5.4 million, simplifying the company’s capital structure. On the same closing date, the company changed its corporate name to DNA X, Inc. via a charter amendment filed in Delaware, with the board approving the move without a shareholder vote, and on January 27, 2026, it announced the rebrand and strategic pivot to digital asset management operations, centered on its DNA X trading platform. Following consummation of the asset sale, the company now believes it has regained compliance with Nasdaq’s $2.5 million stockholders’ equity requirement, potentially easing prior delisting risk, although Nasdaq’s final determination and ongoing monitoring may still affect its listing status.

The most recent analyst rating on (SONM) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Sonim Technologies stock, see the SONM Stock Forecast page.

Sonim Shareholders Approve Major Legacy Business Divestiture

On December 30, 2025, Sonim Technologies’ stockholders approved an asset purchase agreement for the sale of substantially all assets related to the company’s enterprise 5G solutions “Legacy Business,” including its rugged devices, wireless internet products, software, services, and accessories, to Pace Car Acquisition LLC, with Social Mobile Technology Holdings LLC acting as guarantor. Shareholders also backed, on an advisory and non-binding basis, the compensation arrangements for named executive officers tied to the asset sale, and, because the asset sale proposal passed with a quorum present, a previously proposed adjournment item was rendered moot, clearing the way for Sonim to move forward with a significant divestiture that will reshape its operations and strategic focus.

The most recent analyst rating on (SONM) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Sonim Technologies stock, see the SONM Stock Forecast page.

Sonim Technologies Secures Funding and Completes DNA X Acquisition

On December 15, 2025, Sonim Technologies entered into a private placement with DNA Holdings Venture, issuing a $1.2 million unsecured convertible promissory note and simultaneously acquiring 100% of DNA X LLC in exchange for 223,201 Sonim common shares, equal to 19.99% of its then-outstanding stock. The deal brings DeFi trading protocol DNAX DeFi into Sonim’s portfolio, grants DNA Holdings significant governance rights including board representation and a voting commitment in favor of Sonim’s pending asset purchase agreement with Social Mobile Technology Holdings, and embeds a put option allowing DNA Holdings to swap back Sonim shares for DNA X if specified trading volume or revenue thresholds are not met by mid-2026. The DNA Note carries a 10% annual interest rate, matures in December 2026, and is convertible into common stock at an initial price of $5.50 per share with extensive anti‑dilution protections and restrictive covenants limiting Sonim’s additional indebtedness, equity buybacks, dividends, and variable‑rate financings, effectively tightening the company’s capital-structure flexibility while providing new funding and strategic exposure to DeFi. Separately, on December 16, 2025, Sonim restructured part of an earlier $3.3 million note held by Streeterville Capital by exchanging a $629,640 partitioned note for 148,500 shares of common stock, following a series of smaller note-for-share exchanges in October–December 2025, a sequence of transactions that reduced Streeterville’s remaining note balance to about $2.3 million and lifted Sonim’s total shares outstanding to 1,488,465.

Sonim Technologies Approves Cash Bonus for CFO

On December 1, 2025, Sonim Technologies‘ Compensation Committee approved a contingent cash bonus for CFO Clay Crolius, linked to the consummation of an asset purchase agreement. Additionally, due to insufficient shares, a substitute cash grant was authorized for Executive Chairman Michael Mulica in lieu of restricted stock units.

Sonim Technologies Amends Asset Purchase Agreement

On November 24, 2025, Sonim Technologies amended its asset purchase agreement with Pace Car Acquisition LLC, initially signed on July 17, 2025. The amendment removed references to a proposed reverse merger transaction and added provisions regarding the company’s accounts payable and the inclusion of Sonim Technologies Germany GmbH as an acquired subsidiary.

Sonim Technologies Regains Nasdaq Compliance

On November 12, 2025, Sonim Technologies announced that it had regained compliance with Nasdaq’s minimum bid price requirement, as its stock price had been at or above $1.00 per share from October 27 to November 11, 2025. This development closes the compliance matter with Nasdaq, potentially stabilizing the company’s market position and reassuring stakeholders.