Sonim Technologies (SONM) AI Stock Analysis

• Market Cap: $7.00M
• Dividend Yield: N/A
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.27
• 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: 1.79
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 1.15
• Enterprise Value/Ebitda: -0.44
• 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: 41 Neutral
• Price Target: $3.50 ▼(-6.17% Downside)

The score is held down primarily by weak financial performance (heavy losses, negative equity, and material cash burn) and bearish technicals (price below major moving averages with negative MACD). Positive corporate events provide some support, but valuation is not clearly attractive given continued losses.

Positive Factors

Nasdaq compliance restored

Restoring Nasdaq compliance materially reduces near-term delisting risk and preserves access to U.S. public markets and institutional investors. That structural stability improves the company’s ability to raise capital, execute strategic transactions, and retain channel partners over the next several months.

Major divestiture approved

Approval to sell the legacy enterprise 5G and rugged-device assets is a durable strategic inflection: it can simplify operations, concentrate resources on new initiatives, and potentially reduce fixed costs and execution complexity, changing the company’s risk profile and strategic focus over the medium term.

Acquisition adds new business & funding

The DNA X acquisition plus convertible financing diversifies Sonim into DeFi/trading-protocol exposure and brings immediate liquidity. Board representation and governance rights create alignment with the new partner, offering a potentially durable alternate revenue avenue if integration and execution proceed.

Negative Factors

Very low margins and large losses

Persistently low gross margins and very large operating and net losses point to structural profitability deficits. Without sustained margin expansion or higher-margin revenue, the business will struggle to generate positive operating leverage or self-fund growth, raising long-term viability concerns.

Material negative cash flow

Sustained negative operating and free cash flow indicates the core business is consuming cash rather than funding itself. This creates reliance on external financing, increases dilution or leverage risk, and constrains the company’s ability to invest in product development or scale sales channels over the medium term.

Negative equity constrains flexibility

Negative shareholders’ equity signals accumulated losses and a thin capital cushion. That weakens borrowing capacity and limits strategic optionality, making it harder to withstand operational shocks or pursue capital-intensive pivots without dilutive financing or restrictive covenants.

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

Sonim Technologies is facing severe financial challenges, with declining revenues, negative profitability, and weakened balance sheet strength. Despite some financing activities, the negative cash flows suggest ongoing liquidity constraints. The company must address these issues to stabilize its financial performance and return to growth.

Income Statement

Sonim Technologies has experienced significant revenue decline, with a substantial drop from $93.63 million in 2023 to $50.92 million in 2024. The gross profit margin has decreased to 19.48% from 20.64% the previous year. Additionally, the company continues to face negative net profit margins and EBIT margins, indicating ongoing profitability challenges.

Balance Sheet

The balance sheet reveals a concerning situation with negative stockholders' equity of $5.7 million in 2024, indicating potential financial distress. The company has no outstanding debt, which reduces leverage risks, but the negative equity and dwindling asset base highlight financial instability. The equity ratio has turned negative due to accumulated losses.

Cash Flow

Operating cash flow remains negative at -$8.49 million in 2024, and free cash flow is also negative, reflecting cash management issues. The absence of significant capital expenditure suggests limited reinvestment in growth. However, the company has managed some financing cash flow, which provides temporary liquidity relief.

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: Neutral
• Last Price: 3.73
• 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 SONM, the sentiment is Neutral. The current price of 3.73 is below the 20-day moving average (MA) of 3.78, below the 50-day MA of 6.08, and below the 200-day MA of 14.15, indicating a neutral trend. The MACD of -0.60 indicates Negative momentum. The RSI at 52.77 is Neutral, neither overbought nor oversold. The STOCH value of 78.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	54 Neutral	$22.98M	-16.09	-66.84%	―	-5.65%	88.68%
MOB	52 Neutral	$72.36M	-2,348.39	-99.36%	―	-17.72%	8.82%
UTSI	50 Neutral	$23.68M	-3.77	-13.41%	―	-34.53%	-50.58%
ASNS	42 Neutral	$3.80M	-0.05	-260.09%	―	-56.36%	32.37%
SONM	41 Neutral	$7.00M	-0.03	-455.82%	―	4.17%	-238.36%
CMBM	41 Neutral	$48.86M	-0.49	―	―	―	―

Sonim Technologies Corporate Events

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.

Sonim Technologies Approves Reverse Stock Split

Sonim Technologies, Inc. held a special meeting on October 16, 2025, where stockholders approved a reverse stock split of the company’s common stock. The board set the split ratio at 1-for-18, which will take effect on October 27, 2025. This move is expected to impact the trading of Sonim’s stock on the Nasdaq Capital Market, as it will commence trading on a split-adjusted basis under the existing symbol ‘SONM’. The reverse split aims to consolidate shares, potentially affecting stockholder equity and market perception.

Sonim Technologies Granted Nasdaq Compliance Extension

Sonim Technologies, Inc. is addressing compliance issues with Nasdaq’s listing requirements, having received an extension until December 31, 2025, to meet the stockholders’ equity requirement. The company is also undergoing significant changes, including the appointment of Michael Mulica as Executive Chairman and the approval of a reverse stock split to boost its stock price and maintain its Nasdaq listing.