Smith Micro Software, Inc. (NASDAQ: SMSI) announced its financial results for the third quarter ended September 30, 2026, in a press release dated November 12, 2026. The company reported revenue of $5.0 million for the quarter, representing a 16% sequential increase and a $0.7 million rise compared to the same period in the prior year.
Gross profit for the quarter was $4.1 million, with a gross margin of 81.6%. This marks a significant improvement from the prior year, where gross profit was $3.2 million and the margin was 73.9%. The company noted this gross margin level is a five-year high.
On the income statement, Smith Micro reported a GAAP net loss of $1.7 million, or $0.30 per share, for the quarter. This compares to a GAAP net loss of $5.2 million, or $1.23 per share, in the prior year. Adjusting for non-GAAP items such as stock compensation and depreciation, the company reported a non-GAAP net loss of $0.3 million, or $0.05 per share.
For the nine months ended September 30, 2026, Smith Micro reported total revenue of $13.6 million, a slight increase from $13.4 million in the same period in 2025. Gross profit for the year-to-date period was $10.9 million, with a gross margin of 80.5%. The company reported a GAAP net loss of $8.3 million, or $1.57 per share, for the nine months, compared to a loss of $25.4 million, or $6.50 per share, in the prior year.
As of September 30, 2026, the company held $2.4 million in cash and cash equivalents. The company also noted that it has completed a one-for-five reverse stock split of its common stock, which became effective on June 4, 2026.
Smith Micro will host an investor conference call today, November 12, 2026, at 4:30 p.m. ET to discuss these results.
