Sonim Technologies (SONM) AI Stock Analysis

• Market Cap: $8.41M
• Dividend Yield: N/A
• Average Volume (3M): 174.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• Revenue Growth: -37.74%
• EPS Growth: -79666.67%
• Country: US
• Employees: 131
• Sector: Technology
• Sector Strength: 77
• Industry: Communication Equipment
• EPS (TTM): 0.08
• Shares Outstanding: 9,201,563
• 10 Day Avg. Volume: 247,613
• 30 Day Avg. Volume: 174,204
• PEG Ratio: <0.01
• Price to Book (P/B): -1.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.47
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 0.75
• Enterprise Value/Ebitda: -0.15
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 37 Underperform
• Price Target: ―

Sonim Technologies is dealing with significant financial instability, characterized by declining revenues, negative profitability, and a weakened balance sheet. The technical indicators suggest ongoing downward pressure on the stock price, while valuation metrics show a lack of attractiveness due to negative earnings. Immediate improvements in financial performance are necessary to enhance the stock's prospects.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
58.30M	93.63M	69.83M	54.57M	63.99M
	Gross Profit
9.92M	19.32M	11.62M	6.41M	15.21M
	EBIT
-33.64M	513.00K	-14.29M	-38.00M	-27.71M
	EBITDA
-29.84M	2.50M	-13.15M	-36.33M	-26.97M
	Net Income Common Stockholders
-33.65M	-90.00K	-14.09M	-38.63M	-29.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.34M	9.40M	13.21M	11.23M	22.14M
	Total Assets
39.74M	56.04M	53.69M	41.09M	50.31M
	Total Debt
0.00	55.00K	213.00K	214.00K	362.00K
	Net Debt
-5.34M	-9.34M	-13.00M	-11.02M	-21.78M
	Total Liabilities
45.44M	33.67M	33.64M	22.46M	21.90M
	Stockholders Equity
-5.70M	22.37M	20.05M	18.63M	28.41M
Cash Flow		Free Cash Flow
-8.70M	-4.09M	-12.37M	-38.52M	-10.57M
	Operating Cash Flow
-8.49M	-4.05M	-12.36M	-38.48M	-10.56M
	Investing Cash Flow
-214.00K	-36.00K	-8.00K	-46.00K	-11.00K
	Financing Cash Flow
4.65M	272.00K	14.35M	27.61M	21.41M

Sonim Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.91
• 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 0.91 is below the 20-day moving average (MA) of 1.23, below the 50-day MA of 1.65, and below the 200-day MA of 2.65, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 32.11 is Neutral, neither overbought nor oversold. The STOCH value of 9.03 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	$11.29B	10.17	-6.88%	2.97%	7.41%	-8.93%
SYNX	60 Neutral	$11.88M	―	-60.43%	―	18.05%	39.97%
MOB	48 Neutral	$14.46M	―	-137.03%	―	47.05%	-22.31%
SYTA	44 Neutral	$24.11M	―	-400.46%	―	33.58%	81.58%
CLRO	41 Neutral	$10.33M	―	-41.45%	―	-44.47%	-504.72%
CMBM	41 Neutral	$11.84M	―	-112.88%	―	-34.89%	-579.83%
SONM	37 Underperform	$8.41M	―	-322.86%	―	-37.74%	-79666.67%

Sonim Technologies Corporate Events

Sonim Technologies Approves Stockholder Rights Agreement

On April 21, 2025, Sonim Technologies‘ board approved a stockholder rights agreement to protect against unsolicited acquisition attempts, specifically in response to a proposal from Orbic North America. This agreement aims to ensure that stockholders receive full value for their investments and provides the board time to evaluate strategic alternatives. Additionally, on April 17, 2025, the company accelerated the vesting of restricted stock units for 81 employees, including key executives, to promote retention and incentivize performance.

Spark’s Take on SONM Stock

According to Spark, TipRanks’ AI Analyst, SONM is a Underperform.

Sonim Technologies is currently facing significant financial difficulties, as evidenced by declining revenues, negative profitability, and cash flow issues. The technical indicators reinforce the negative outlook with a clear downtrend, while the valuation metrics highlight the lack of attractiveness due to ongoing losses. These factors collectively suggest that the stock is struggling and may require substantial improvements in financial health and performance to regain investor confidence.

To see Spark’s full report on SONM stock, click here.

Sonim Technologies Amends CFO Employment Agreement

On April 15, 2025, Sonim Technologies, Inc. amended the employment agreement with its CFO, Clay Crolius, to redefine ‘Change in Control’ and enhance severance provisions. The amendment extends the protection period post-Change in Control to 12 months and increases severance benefits, including a guaranteed pro-rated bonus of at least 20% of Crolius’s annual salary, reflecting a strategic move to secure leadership stability during potential company transitions.

Spark’s Take on SONM Stock

According to Spark, TipRanks’ AI Analyst, SONM is a Underperform.

Sonim Technologies faces significant challenges with declining revenues and negative profitability, reflected in a low financial performance score. The technical analysis indicates a bearish trend with no signs of recovery, and the valuation highlights unprofitability with a negative P/E ratio. There are no recent earnings call insights or corporate events to alter this outlook.

To see Spark’s full report on SONM stock, click here.

Sonim Technologies Strengthens Governance with Board Expansion

On April 2, 2025, Sonim Technologies amended the employment agreement of its CEO, Peter Liu, to redefine ‘Change in Control’ and enhance severance benefits, reflecting strategic adjustments in leadership terms. Additionally, on April 3, 2025, the company expanded its Special Committee of the Board of Directors by adding a third independent director, Jack Steenstra, indicating a move towards strengthening governance.