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Smith Micro Software, Inc.. (SMSI) Fundamental Analysis & AI Grade 2026

SMSI Nasdaq Services-Prepackaged Software DE CIK: 0000948708
Update Pending • Analysis: May 6, 2026 • SEC Data: 2026-03-31
Combined AI Grade
D
92% Confidence
N/A
D
92% Conf
Pending
Analysis scheduled

📊 SMSI Key Takeaways

Revenue: $4.2M
Net Margin: -92.3%
Free Cash Flow: $-3.8M
Current Ratio: 1.37x
Debt/Equity: 0.21x
EPS: $-0.15
AI Grade: D with 92% confidence
Smith Micro Software, Inc.. (SMSI) receives a D fundamental grade with 92% confidence from our AI analysis based on SEC 10-K filings. With revenue of $4.2M, net profit margin of -92.3%, and return on equity (ROE) of -21.2%, Smith Micro Software, Inc.. demonstrates mixed fundamentals in the Technology sector. Below is our complete SMSI stock analysis for 2026.

Is Smith Micro Software, Inc.. (SMSI) a Good Investment?

Claude

Smith Micro faces imminent liquidity crisis with $3.8M annual cash burn against only $1.7M cash reserves (5-month runway). Zero revenue growth and -79.9% operating margins indicate fundamental business dysfunction, despite improving loss trajectory. Structural profitability issues and minimal financial runway create existential risk without major operational restructuring or external capital injection.

Smith Micro Software, Inc.. Key Strengths (SMSI)

Claude
  • + Strong gross margin of 78.4% demonstrates viable unit economics for software/services offering
  • + Improving loss trajectory: net income and EPS both improving significantly YoY despite absolute losses
  • + Conservative leverage at 0.21x debt-to-equity provides some financial flexibility

SMSI Stock Risks: Smith Micro Software, Inc.. Investment Risks

Claude
  • ! Critical liquidity crisis: $3.8M annual cash burn versus $1.7M cash (approximately 5-month runway to insolvency)
  • ! Fundamental business stagnation: flat revenue growth (0% YoY) with unsustainable -79.9% operating margins indicating structural cost issues
  • ! Negative interest coverage ratio (-41.6x) makes company unable to service debt from operations; dependent on external funding or asset liquidation

Key Metrics to Watch

Claude
  • * Monthly cash burn rate and remaining runway (survival metric)
  • * Revenue growth inflection point (current zero growth unsustainable)
  • * Operating expense reduction progress and path to operating profitability

Smith Micro Software, Inc.. (SMSI) Financial Metrics & Key Ratios

Revenue
$4.2M
Net Income
$-3.9M
EPS (Diluted)
$-0.15
Free Cash Flow
$-3.8M
Total Assets
$25.8M
Cash Position
$1.7M

💡 AI Analyst Insight

Smith Micro Software, Inc.. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

SMSI Profit Margin, ROE & Profitability Analysis

Gross Margin 78.4%
Operating Margin -79.9%
Net Margin -92.3%
ROE -21.2%
ROA -15.1%
FCF Margin -89.1%

SMSI vs Technology Sector: How Smith Micro Software, Inc.. Compares

How Smith Micro Software, Inc.. compares to Technology sector averages

Net Margin
SMSI -92.3%
vs
Sector Avg 18.0%
SMSI Sector
ROE
SMSI -21.2%
vs
Sector Avg 22.0%
SMSI Sector
Current Ratio
SMSI 1.4x
vs
Sector Avg 2.5x
SMSI Sector
Debt/Equity
SMSI 0.2x
vs
Sector Avg 0.5x
SMSI Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Smith Micro Software, Inc.. Stock Overvalued? SMSI Valuation Analysis 2026

Based on fundamental analysis, Smith Micro Software, Inc.. has mixed fundamental signals relative to the Technology sector in 2026.

Return on Equity
-21.2%
Sector avg: 22%
Net Profit Margin
-92.3%
Sector avg: 18%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.21x
Sector avg: 0.5x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Smith Micro Software, Inc.. Balance Sheet: SMSI Debt, Cash & Liquidity

Current Ratio
1.37x
Quick Ratio
1.37x
Debt/Equity
0.21x
Debt/Assets
0.0%
Interest Coverage
-41.64x
Long-term Debt
$3.8M

SMSI Revenue & Earnings Growth: 5-Year Financial Trend

SMSI 5-year financial data: Year 2021: Revenue $58.4M, Net Income $4.2M, EPS N/A. Year 2022: Revenue $58.4M, Net Income -$31.0M, EPS $-0.61. Year 2023: Revenue $48.5M, Net Income -$29.3M, EPS $-0.53. Year 2024: Revenue $40.9M, Net Income -$24.4M, EPS $-3.01. Year 2025: Revenue $20.6M, Net Income -$48.7M, EPS $-3.94.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Smith Micro Software, Inc..'s revenue has declined by 65% over the 5-year period, indicating business contraction. The most recent EPS of $-3.94 indicates the company is currently unprofitable.

SMSI Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-89.1%
Free cash flow / Revenue

SMSI Quarterly Earnings & Performance

Quarterly financial performance data for Smith Micro Software, Inc.. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $4.2M -$3.9M $-0.15
Q3 2025 $4.3M -$4.5M $-0.25
Q2 2025 $4.4M -$6.9M $-0.66
Q1 2025 $4.6M -$5.2M $-0.28
Q3 2024 $4.6M -$5.1M $-0.54
Q2 2024 $5.1M -$5.7M $-0.66
Q1 2024 $5.8M -$6.9M $-0.97
Q3 2023 $11.0M -$5.1M $-0.08

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Smith Micro Software, Inc.. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$3.8M
Cash generated from operations
Stock Buybacks
$753.0K
Shares repurchased (TTM)
Capital Expenditures
$11.0K
Investment in assets
Dividends
None
No dividend program

SMSI SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Smith Micro Software, Inc.. (CIK: 0000948708)

📋 Recent SEC Filings

Date Form Document Action
May 26, 2026 8-K smsi20260526_8k.htm View →
May 18, 2026 4 xslF345X06/rdgdoc.xml View →
May 18, 2026 4 xslF345X06/rdgdoc.xml View →
May 18, 2026 4 xslF345X06/rdgdoc.xml View →
May 8, 2026 S-1 smsi20260507_s1.htm View →

Frequently Asked Questions about SMSI

What is the AI rating for SMSI?

Smith Micro Software, Inc.. (SMSI) has an AI grade of D with 92% confidence, based on fundamental analysis of SEC EDGAR filings.

What are SMSI's key strengths?

Claude: Strong gross margin of 78.4% demonstrates viable unit economics for software/services offering. Improving loss trajectory: net income and EPS both improving significantly YoY despite absolute losses.

What are the risks of investing in SMSI?

Claude: Critical liquidity crisis: $3.8M annual cash burn versus $1.7M cash (approximately 5-month runway to insolvency). Fundamental business stagnation: flat revenue growth (0% YoY) with unsustainable -79.9% operating margins indicating structural cost issues.

What is SMSI's revenue and growth?

Smith Micro Software, Inc.. reported revenue of $4.2M.

Does SMSI pay dividends?

Smith Micro Software, Inc.. does not currently pay dividends.

Where can I find SMSI SEC filings?

Official SEC filings for Smith Micro Software, Inc.. (CIK: 0000948708) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is SMSI's EPS?

Smith Micro Software, Inc.. has a diluted EPS of $-0.15.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is SMSI's fundamental grade?

Based on our AI fundamental analysis in June 2026, Smith Micro Software, Inc.. has a D grade with 92% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is SMSI stock overvalued or undervalued?

Valuation metrics for SMSI: ROE of -21.2% (sector avg: 22%), net margin of -92.3% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.

What is SMSI's AI grade for 2026?

Our dual AI analysis gives Smith Micro Software, Inc.. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is SMSI's free cash flow?

Smith Micro Software, Inc..'s operating cash flow is $-3.8M, with capital expenditures of $11.0K. FCF margin is -89.1%.

How does SMSI compare to other Technology stocks?

Vs Technology sector averages: Net margin -92.3% (avg: 18%), ROE -21.2% (avg: 22%), current ratio 1.37 (avg: 2.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 6, 2026 | Data as of: 2026-03-31 | Powered by Claude AI