Smith Micro Software, Inc. reported a significant decline in financial performance for the second quarter of 2025, with revenues totaling $4.4 million, a decrease of 14% from $5.1 million in the same period last year. For the first half of 2025, revenues were $9.0 million, down 17.3% from $10.9 million in the first half of 2024. The decline was primarily attributed to reduced sales in the Family Safety product line and a decrease in revenue from the ViewSpot product, which was sold in June 2025 for $1.3 million. The company recorded a net loss of $15.1 million for the quarter, resulting in a loss per share of $0.78, compared to a loss of $6.9 million, or $0.66 per share, in the prior year.
The company's operating expenses surged to $18.2 million in the second quarter, up from $10.5 million a year earlier, largely due to an $11.1 million goodwill impairment charge. This impairment was a result of an assessment indicating that the carrying value of the company's reporting unit exceeded its fair value. Despite the increase in operating expenses, the company managed to reduce costs in selling and marketing, as well as research and development, through various cost-cutting initiatives.
In terms of operational metrics, Smith Micro's customer concentration remains high, with three customers accounting for 61%, 21%, and 18% of revenues in the second quarter of 2025. The company continues to focus on its Family Safety platform, which is offered to two Tier 1 wireless carriers in the U.S. and has recently expanded its product line with new offerings such as SafePath Kids and SafePath OS. The company is also preparing to launch SafePath 8, which is expected to enhance its service offerings.
Looking ahead, Smith Micro faces challenges related to liquidity, with cash and cash equivalents at approximately $1.4 million as of June 30, 2025. The company has indicated that it may need to raise additional capital to support its operations and growth initiatives. Following the end of the reporting period, Smith Micro closed a registered direct offering that generated approximately $1.5 million in gross proceeds. However, the company has acknowledged substantial doubt about its ability to continue as a going concern within the next year, emphasizing the need for strategic actions to improve its financial position.
About SMITH MICRO SOFTWARE, INC.
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