Sonim Technologies Reports Q2 Revenue Decline, Year-to-Date Growth Driven by New Products

Sonim Technologies Inc. reported a net revenue of $11.19 million for the three months ended June 30, 2025, a decrease of 3% from $11.52 million in the same period last year. However, for the six months ended June 30, 2025, total net revenues increased by 35% to $27.91 million, compared to $20.63 million in the prior year. The company attributed the quarterly decline primarily to reduced sales of legacy phones, while the year-to-date increase was driven by new product launches and the expiration of customer allowance agreements. The gross profit for the second quarter was $845,000, down 72% from $2.97 million in 2024, reflecting increased costs and an impairment of contract fulfillment assets.

In terms of operational changes, Sonim has been actively expanding its product offerings and market reach. The company launched several new products, including the Sonim H500-series of 5G mobile hotspots and the XP Pro 5G rugged smartphone, which are now available through major U.S. carriers and various international partners. The company is also pursuing a strategic initiative to expand its geographical footprint and customer segments, particularly in Europe and South Africa, through new distribution agreements.

Sonim's financial position showed a significant decrease in cash and cash equivalents, which fell to $2.01 million as of June 30, 2025, from $5.34 million at the end of 2024. The company reported a net loss of $7.48 million for the second quarter, compared to a loss of $6.62 million in the same period last year. The increase in losses was attributed to higher operating expenses, including research and development costs, which rose by 63% to $909,000, and general and administrative expenses, which increased by 32% to $3.22 million.

Looking ahead, Sonim has entered into an asset purchase agreement to sell substantially all of its assets related to its enterprise 5G solutions business for $15 million, with potential earn-out payments based on future performance. The company is also exploring a reverse merger to maximize shareholder value. Despite the challenges, Sonim remains optimistic about its product pipeline and expects to see increased revenue from new product launches in the second half of 2025. The company believes it can meet its obligations over the next twelve months with its current cash position and additional funding secured after the reporting period.