Smith Micro Software guided third quarter 2026 revenue of $5.0 million to $5.4 million and gross margin of 81% to 83%, as two new customer launches and a Tier 1 contract extension slipped from the second quarter into the third. The company reported second quarter revenue of $4.3 million, with family safety revenue of $3.5 million and CommSuite revenue of $826,000, and gross margin of 81.3%, the first time above 80% in five years. GAAP net loss was $2.7 million, or $0.52 per share, while non-GAAP net loss was $989,000, or $0.19 per share, and cash and cash equivalents stood at $2.8 million as of June 30, 2026. Management expects to announce the launch of two new customers by the end of this month and is within days of signing a significant multi-year contract extension with an existing Tier 1 customer, with revenue from that extension expected to begin in the third quarter. The company also announced the launch of SafePath Connect, a new distribution model aimed at expanding beyond traditional carrier channels, and completed a warrant inducement transaction in June 2026 that raised $1.6 million.
Smith Micro Software IncQ3 revenue guidance below prior expectations due to slipped launches and contract extension, though gross margin improved.
