Samsara Inc. (IOT): Results of Operations and Financial Condition
Samsara Inc. (IOT) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Samsara Reports Second Quarter Fiscal Year 2027 Financial Results • Q2 revenue of $508.4 million, representing 30% year-over-year growth and 29% in constant currency • Q2 net new ARR of $134.1 million, representing 28% year-over-year growth in both actual and constan
How this was made
The 30-second read
Why it matters
Earnings beat and strong ARR growth may drive investor optimism and price appreciation.
Market read
First‑report earnings release with material numbers for a mid‑cap tech company.
What to watch
High stock‑based compensation expense could pressure future margins despite current growth.
Q2 revenue of $508.4 million, representing 30% year-over-year growth, with GAAP earnings per share of $0.03 and ending ARR of $2.125 billion.
Revenue, ARR, net new ARR, operating profitability, and free cash flow all increased year over year. Samsara reported its fourth consecutive quarter of GAAP profitability and maintained 21% non-GAAP operating margin.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Annual Recurring Revenue (ARR)other | $2,124.7 million | – | 30% |
| ARR adjusted for constant currencyother | $2,124.3 million | – | 30% |
| Net new ARRother | $134.1 million | – | 28% |
| Total revenueGAAP | $508.4 million | – | 30% |
| Total revenue adjusted for constant currencynon-GAAP | $506.1 million | – | 29% |
| GAAP gross profitGAAP | $392.6 million | – | $91.6 million |
| GAAP gross marginGAAP | 77% | – | — pt |
| Non-GAAP gross profitnon-GAAP | $398.0 million | – | $92.3 million |
| Non-GAAP gross marginnon-GAAP | 78% | – | — pt |
| Income from operationsGAAP | $4.9 million | – | $31.5 million |
| GAAP operating marginGAAP | 1% | – | 8 pts |
| Non-GAAP operating incomenon-GAAP | $106.0 million | – | $46.3 million |
| Non-GAAP operating marginnon-GAAP | 21% | – | 6 pts |
| Net incomeGAAP | $16,242 | – | – |
| Net income per share, basic and dilutedGAAP | $0.03 | – | $0.06 |
| Non-GAAP net incomenon-GAAP | $117,348 | – | – |
| Non-GAAP net income per share, basic and dilutednon-GAAP | $0.20 | – | $0.08 |
| Net cash provided by operating activitiesGAAP | $73.5 million | – | $23.3 million |
| Net cash provided by operating activities marginGAAP | 14% | – | 2 pts |
| Free cash flownon-GAAP | $64.7 million | – | $20.5 million |
| Free cash flow marginnon-GAAP | 13% | – | 1 pt |
| Research and development expenseGAAP | $102,556 | – | – |
| Sales and marketing expenseGAAP | $217,774 | – | – |
| General and administrative expenseGAAP | $67,376 | – | – |
| Total operating expensesGAAP | $387,706 | – | – |
| Interest income and other income, netGAAP | $12,654 | – | – |
| Provision for income taxesGAAP | $1,287 | – | – |
| Total stock-based compensation expense-related chargesother | $101,106 | – | – |
Q3 FY2027 and FY2027 outlook
- RevenueQ3 FY2027: $514 million – $516 million; FY2027: $2.043 billion – $2.047 billion
- NoteQ3 FY2027 year/year revenue growth: 24%
- NoteFY2027 year/year revenue growth: 26%
- NoteQ3 FY2027 year/year revenue growth in constant currency: 23% – 24%
- NoteFY2027 year/year revenue growth in constant currency: 26%
- NoteQ3 FY2027 non-GAAP operating margin: 21%
- NoteFY2027 non-GAAP operating margin: 21%
- NoteQ3 FY2027 non-GAAP net income per share, diluted: $0.18 – $0.19
- NoteFY2027 non-GAAP net income per share, diluted: $0.76 – $0.78
- NoteQ3 FY2027 GAAP net income per share, diluted: GAAP Profitable
- NoteFY2027 GAAP net income per share, diluted: GAAP Profitable
- NoteConstant currency impact to revenue guidance: $2 million for Q3 FY2027 and $10 million for FY2027.
What drove it
- Ending ARR was $2.125 billion, representing 30% year-over-year growth.
- Net new ARR was $134.1 million, representing 28% year-over-year growth in both actual and constant currency.
- Customers with ARR over $1,000,000 generated over $500 million of ARR, representing over 50% year-over-year growth for the third consecutive quarter.
- Customer adoption of some of Samsara’s latest AI features was up more than 4x in the last two months.
- GAAP operating margin improved to 1% from (7%), while non-GAAP operating margin improved to 21% from 15%.
Concerns
- Q3 FY2027 revenue growth guidance of 24% and constant-currency growth guidance of 23% – 24% are below Q2 FY2027 reported growth of 30% and constant-currency growth of 29%.
- The company identified risks related to customer retention and expansion, customer acquisition, demand, sales cycles, macroeconomic conditions, supply chain challenges, increased costs, foreign currency fluctuations, competition, security incidents, and technological, legal, and regulatory changes.
- Stock-based compensation expense-related charges were $101,106 for the three months ended August 1, 2026.
What to watch
- Execution against Q3 FY2027 total revenue guidance of $514 million – $516 million.
- Whether ARR growth and net new ARR continue to be supported by customers with ARR over $1,000,000.
- The sustainability of GAAP profitability, following the fourth consecutive quarter of GAAP profitability.
- Non-GAAP operating margin performance against 21% guidance for both Q3 FY2027 and FY2027.
- Free cash flow conversion and connected device cost, deferred commission, and accounts-receivable movements.
Balance sheet and cash flow
- Cash and cash equivalents as of August 1, 2026: $291,392.
- Short-term investments as of August 1, 2026: $537,536.
- Long-term investments as of August 1, 2026: $496,782.
- Total assets as of August 1, 2026: $2,769,128.
- Total liabilities as of August 1, 2026: $1,167,154.
- Deferred revenue, current as of August 1, 2026: $728,904.
- Deferred revenue, non-current as of August 1, 2026: $123,868.
- Total stockholders’ equity as of August 1, 2026: $1,601,974.
- Net cash provided by operating activities for the three months ended August 1, 2026: $73,524.
- Purchases of property and equipment for the three months ended August 1, 2026: $(8,783).
- Purchases of investments for the three months ended August 1, 2026: $(220,964).
- Proceeds from maturities and redemptions of investments for the three months ended August 1, 2026: $249,317.
- Net cash provided by investing activities for the three months ended August 1, 2026: $19,670.
- Proceeds from issuance of common stock from equity compensation plans for the three months ended August 1, 2026: $17,117.
- Taxes paid for net share settlement of equity awards for the three months ended August 1, 2026: $(36,027).
- Net cash used in financing activities for the three months ended August 1, 2026: $(18,984).
- Cash, cash equivalents, and restricted cash, end of period: $294,539.
Analysis
Samsara reported a strong Q2 FY2027, with total revenue of $508.4 million, up 30% year over year, and revenue adjusted for constant currency of $506.1 million, up 29%. ARR reached $2,124.7 million, also up 30%, while net new ARR was $134.1 million, up 28% in both actual and constant currency. Large customers were a stated source of momentum: customers with ARR over $1,000,000 generated over $500 million of ARR and delivered over 50% year-over-year growth for the third consecutive quarter.
Profitability improved materially. GAAP income from operations was $4.9 million, compared with a GAAP operating loss of $(26.6) million in Q2 FY2026, producing a 1% GAAP operating margin versus (7%). Non-GAAP operating income increased to $106.0 million from $59.7 million and non-GAAP operating margin expanded to 21% from 15%. Gross margins were unchanged year over year, at 77% on a GAAP basis and 78% on a non-GAAP basis. GAAP net income was $16,242, compared with a net loss of $(16,800), and GAAP diluted earnings per share were $0.03, marking the fourth consecutive quarter of GAAP profitability.
Cash generation also strengthened. Net cash provided by operating activities rose to $73.5 million from $50.2 million, and free cash flow increased to $64.7 million from $44.2 million. Free cash flow margin improved to 13% from 11%. The balance sheet reported $291,392 of cash and cash equivalents, $537,536 of short-term investments, and $496,782 of long-term investments as of August 1, 2026. Current deferred revenue was $728,904, compared with $679,316 as of January 31, 2026.
Operating expenses rose in research and development and sales and marketing, while general and administrative expense declined year over year. Research and development expense was $102,556 versus $85,612, and sales and marketing expense was $217,774 versus $174,083. General and administrative expense was $67,376 versus $67,903. Total stock-based compensation expense-related charges were $101,106, and these charges were a principal adjustment between GAAP and non-GAAP operating income and net income.
The outlook calls for Q3 FY2027 revenue of $514 million – $516 million and FY2027 revenue of $2.043 billion – $2.047 billion. The company expects 24% year-over-year revenue growth in Q3 and 26% for FY2027, with Q3 constant-currency growth of 23% – 24% and FY2027 constant-currency growth of 26%. Samsara guided to a 21% non-GAAP operating margin for both periods, non-GAAP diluted EPS of $0.18 – $0.19 for Q3 and $0.76 – $0.78 for the full year, and GAAP profitability in each period. The guide maintains the current non-GAAP operating-margin level but indicates lower revenue growth than the 30% reported in Q2.
Management, verbatim
Samsara delivered another quarter of durable and efficient growth, crossing $2.1 billion in ARR with 30% year-over-year growth for the third consecutive quarter.
Sanjit Biswas, CEO and co-founder
Our large customers continue to drive our momentum, and customer adoption of some of our latest AI features is up more than 4x in the last two months.
Sanjit Biswas, CEO and co-founder
Not in the filing
stated, not guessed- Revenue by operating segment was not reported.
- Segment profitability was not reported.
- Prior-quarter comparisons were not reported for the key metrics.
- Prior guidance was not provided.
- Share repurchases and cash dividends were not reported.
- Debt balances were not reported.
- GAAP gross-margin guidance was not reported.
- Operating-expense guidance was not reported.
- Tax-rate guidance was not reported.
- A numeric GAAP diluted EPS guidance range was not reported.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Samsara filed an SEC Form 8‑K reporting its Q2 FY2027 financial results and forward guidance.
Ticker impact
Samsara Inc. reported Q2 FY2027 results with $508.4M revenue and $2.125B ARR, plus GAAP profit and guidance for Q3 and FY2027.
Potential short-term price rally on earnings beat and positive guidance.
Revenue up 30% YoY, GAAP EPS $0.03, and guidance above prior expectations indicate material improvement.
Market effects
Positive signal for IoT and enterprise software sector as SaaS ARR growth accelerates.
U.S. and European markets may see modest lift in tech stocks tied to operational efficiency solutions.
Highlights demand for connected operations platforms worldwide.
Counterpoint
If guidance misses consensus or macro slowdown hits, the rally could be short-lived.
Key entities
- ExecutiveSanjit Biswas
CEO and co‑founder of Samsara, quoted on growth and AI feature adoption.
