Samsara Inc.
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Item 1. Business
Overview
Samsara is on a mission to increase the safety, efficiency, and sustainability of the operations that power the global economy.
To realize this vision, we pioneered the Connected Operations Platform, which is an open platform that connects the people, assets, and systems of some of the world’s most complex operations, allowing them to develop actionable insights and improve their operations.
Organizations across industries in construction, transportation, wholesale and retail trade, field services, logistics, manufacturing, utilities and energy, government, healthcare and education, food and beverage, and others are the backbone of the global economy. They operate high-value assets, coordinate large field workforces, manage complex logistics and distributed sites, and face safety, environmental, and other regulatory requirements. We estimate that these industries represent over 40% of the global GDP. Yet historically, these industries have been underserved by technology, relying on manual processes and siloed legacy systems that lack cloud connectivity. Without a unified digital foundation, physical operations businesses struggle to access and utilize the real-time data required for operational visibility or actionable insights.
We are solving the problem of opaque operations and disconnected systems. By leveraging recent advancements in artificial intelligence (“AI”), IoT connectivity, cloud computing, and video imagery, we enable the digital transformation of physical operations. Our Connected Operations Platform consolidates disparate systems into a single, integrated platform, giving customers the ability to unlock actionable, AI-driven insights from their operations at a scale and speed that was previously impossible.
Our Connected Operations Platform consolidates data from our IoT devices and a growing ecosystem of connected assets and third-party systems, and makes it easy for organizations to access, analyze, and act on data insights using our cloud dashboard, custom alerts and reports, mobile apps, and workflows. Powered by our massive and growing data asset and expansive AI technology, our differentiated, purpose-built suite of Applications and Agents enables organizations to embrace and deploy a digital, cloud-connected strategy across their operations. With Samsara, customers have the ability to drive safer operations, increase business efficiency, and achieve their sustainability goals, all to improve the lives of their employees and the customers they serve.
We provide an end-to-end solution for operations. Our solution connects physical operations data to our Connected Operations Platform, which consists of our Data Platform, Applications, and Agents. Our Data Platform ingests, aggregates, and enriches data from our IoT devices and a growing ecosystem of connected assets and third-party systems, and makes the data actionable for use cases through our Applications and Agents.
Our Connected Operations Platform captures data that was previously siloed and difficult to analyze in several different ways. For the many physical assets that are still offline, our solution includes IoT devices that capture data and connect it to the cloud. For the physical assets that are increasingly embedded with cloud connectivity, we work with original equipment manufacturers (“OEMs”) and other partners to capture data via application programming interfaces (“APIs”) or other connection methods. Data may also be captured from customer enterprise applications or local software systems. This operational and IT data is ingested into our Data Platform, where it is aggregated, enriched, and analyzed using embedded functionality for AI, workflows and analytics, alerts, API connections, and data security and privacy. Our Data Platform powers our Applications, which include AI Video-Based Safety, Telematics, Asset Tracking, Routing, Commercial Navigation, Maintenance, Connected Training, Connected Forms, and Site Visibility.
Users of our platform include workers from operations, safety, compliance, facilities, and support. These users can engage with our platform directly through our Applications or employ our Agents to automate entire workflows.
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Our customers range from small and medium-sized businesses to state and local governments and large, global enterprises with the most complex operations involving hundreds of thousands of physical assets and frontline workers. As of January 31, 2026, we had over 12,000 Core Customers, who are customers with subscriptions to our Connected Operations Platform, each representing $25,000 or more in annual recurring revenue (“ARR”).1 2 While our Connected Operations Platform is accessible to customers of all sizes, we are particularly focused on larger customers representing over $100,000 in ARR. As of January 31, 2026, we had 3,194 large customers, each representing over $100,000 in ARR. Overall, approximately 85% of our ARR came from Core Customers and approximately 61% of our ARR came from large customers representing over $100,000 in ARR.
We believe there is significant room for growth in our target customer base. Unlike retail, advertising, media, and information technology (“IT”), which have already undergone digital transformation, industries with physical operations are still transitioning from legacy, siloed systems to integrated digital platforms. Historically, the ability to connect their assets to the internet was limited by the physical nature of these industries. Legacy systems are often closed, cumbersome, and dependent on manual data entry, leading to operational inefficiencies that impact safety, efficiency, and sustainability. In addition, the cost and availability of sensors, compute, storage, video, and analytical processing have prevented widespread analysis of physical operations data. However, with advancements in IoT connectivity, cloud computing, video imagery, and AI, we believe physical operations industries are reaching a critical inflection point.
Samsara is digitally transforming these industries with an end-to-end platform that brings AI to the physical world. Our key differentiator is our ability to capture, aggregate, and analyze time-series operational IoT data at scale. This functionality allows us to capture proprietary IoT data through our IoT devices and transform it into actionable insights using AI, which deliver significant value to our customers. In fiscal year 2026, our Data Platform processed over 25 trillion data points, including real-time video footage, people and motion detection, GPS location, energy consumption, asset utilization, compliance logs, accelerometer and gyroscope data, and engine diagnostics. This data is time-series in nature, which is critical for understanding operational changes over time, enabling pattern recognition, forecasting, and better decision making. Every data point that we collect is valuable. This comprehensive data set powers our AI and provides our customers with valuable insights that improve the safety, efficiency, and sustainability of their operations. Our AI-powered insights enable our customers to achieve higher utilization of physical assets, reduced need for manual oversight, improved safety outcomes, lower insurance costs, fuel and electricity savings, emissions reductions, less unplanned downtime, efficiencies from routing and scheduling, minimized compliance costs, and automation of manual processes. Our Connected Operations Platform also benefits from powerful network effects. As more customers adopt our solution, we collect more data from a more diverse set of physical assets and third-party software applications, accelerating the efficacy of our AI insights that drive further adoption of our Connected Operations Platform. To support this scale, we dedicate significant resources to maintaining a robust data protection and privacy program designed to secure our customers’ operational data.
Customers typically adopt our solution to automate business processes and improve operational efficiency. By using Samsara’s Connected Operations Platform, our customers are able to realize significant improvements in their operations that are reflected in their cost savings, improved safety and compliance records, and superior end-customer experience. These improvements can lead to improved profitability and durable revenue growth for our customers.
Examples of how customers use and benefit from our Connected Operations Platform include3:
•Safety
◦A Fortune Global 500 logistics company replaced seven separate point solutions with Samsara’s Connected Operations Platform and achieved a 65% decrease in harsh driving incidents, a 26% reduction in accidents, and a 49% reduction in accident-related costs.
◦A leading construction company leveraged Samsara’s AI Video-Based Safety Application to exonerate drivers, saving an estimated over $3 million in legal expenses and loss exposure.
1 ARR is calculated as the annualized value of subscription contracts that have commenced revenue recognition as of the end of the reporting period.
2 We previously defined “Core Customers” as customers representing over $10,000 in ARR. To reflect the increasing mix of ARR from larger customers and to align with our investments for future growth, we have updated our definition of “Core Customer” to represent customers with $25,000 or more in ARR. Under our prior definition, as of January 31, 2026, we had over 23,000 customers with over $10,000 in ARR, and approximately 94% of our total ARR came from customers with over $10,000 in ARR.
3 Statistics furnished by customers over recent years.
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◦A top 20 US largest city and county government has seen a measurable improvement in safety, including a 99% decrease in harsh driving, a 98% drop in distracted driving, and a 94% reduction in safety incidents overall.
•Efficiency
◦One of the largest flooring manufacturers in the world used Samsara to optimize route efficiency, saving over $7 million annually by reducing total mileage by 25%.
◦One of the largest crane rental companies in North America saved approximately $13 million in maintenance costs for their on-road and off-road equipment.
◦An international leader in low-carbon energy solutions improved its efficiency by automating the generation of 95% of their invoices, saving more than 8,500 hours annually and unlocking $30 million worth of revenue that was previously tied up in their invoicing process. Using Samsara’s Applications, this customer has developed a chain of custody solution that has allowed them to win new contracts, resulting in $100 million in new contracted revenue to date.
•Sustainability
◦A top retailer in Canada saved 46,000 gallons of fuel, equaling a reduction of 469 metric tons of CO2 emissions in just four months, making significant progress on their sustainability goals.
We were founded in 2015 and have achieved significant growth since our inception. For the fiscal years ended January 31, 2026 and February 1, 2025, our revenue was $1,618.6 million and $1,249.2 million, respectively. Our net loss was $9.1 million and $154.9 million for the fiscal years ended January 31, 2026 and February 1, 2025, respectively. We offer access to our Connected Operations Platform on a subscription basis and generally price each subscription on a per asset, per application basis. In each of the past two fiscal years, we generated approximately 98% of our revenue from subscriptions to our Connected Operations Platform. Our business model focuses on maximizing the lifetime value of our customer relationships, and we continue to make significant investments to expand our customers’ use of our Connected Operations Platform.
Our Solution
We are driving the digital transformation of physical operations by enabling organizations with fleets, equipment, and frontline workers to connect real-time data from their physical operations on one unified platform. Our solution allows organizations to capture data from our IoT devices and a growing ecosystem of connected assets and third-party systems so they can access, analyze, and act on key insights to improve end-to-end operations.
Our solution consists of our Connected Operations Platform, together with a suite of easy-to-install IoT devices that capture data from offline assets and connect them to the cloud. By ingesting, aggregating, and enriching data from millions of connected endpoints, we build a mission-critical system of action that provides a single pane of glass view into our customers’ expansive physical operations. We then use AI to transform this unique and proprietary data asset into actionable insights that deliver significant value to our customers.
We categorize the core applications and features of our Connected Operations Platform into the following primary solution areas:
•Safety & Risk: We leverage AI and computer vision to protect frontline workers and reduce organizational risk across vehicles and sites. Our AI Video-based Safety applications automatically detect critical safety events to help save lives, prevent accidents, exonerate frontline workers, reduce accident-related payouts, and lower insurance costs. We provide a comprehensive, AI-driven coaching ecosystem that automates coaching through AI Voice-based Agents to foster a proactive safety culture, while our Site Visibility application extends these AI detections to onsite locations such as job sites and warehouses.
•Fleet Operations: We provide the mission-critical fleet management applications required to manage large-scale commercial vehicle operations and reduce operational spend. This includes a telematics application with real-time GPS tracking and HOS compliance tools, alongside advanced fuel efficiency and EV management. We also provide Routing and Commercial Navigation applications that cover route planning, route executing, and navigation.
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•Asset Management: Our platform allows customers to track, monitor, and maintain their high-value physical assets to improve efficiency and reduce capital expenditures. Our Asset Tracking applications provide extensive visibility and recovery capabilities for powered and unpowered equipment ranging from heavy machinery to small tools. Our Connected Asset Maintenance application centralizes the entire service lifecycle, using real-time diagnostic data and AI-driven suggestions to transition organizations from reactive repairs to preventative maintenance programs, reducing asset downtime and maintenance spend.
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with (1) our audited consolidated financial statements and related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for the fiscal year ended January 31, 2026 included in our Annual Report on Form 10-K filed with the SEC on March 16, 2026, and (2) our unaudited condensed consolidated financial statements and related notes and other financial information included under Part I, Item 1 of this Quarterly Report on Form 10-Q. Some of the information contained in the following discussion and analysis, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. You should review the sections titled “Item 1A. Risk Factors” and “Special Note Regarding Forward-Looking Statements” contained in this Quarterly Report on Form 10-Q and the section titled “Risk Factors” included under Part I, Item 1A. of our Annual Report on Form 10-K filed with the SEC on March 16, 2026, as supplemented by our subsequent quarterly reports on Form 10-Q, for a discussion of forward-looking statements and important factors that could impact our business and cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis or implied by past results and trends. Unless otherwise indicated, these statements, like all statements in this Quarterly Report on Form 10-Q, speak only as of their date, and we undertake no obligation to update or revise these statements in light of future developments. Our fiscal year ends on the Saturday closest to February 1, resulting in a 52-week or 53-week fiscal year. Our fiscal years 2027 and 2026 each consist of 52 weeks.
Overview
Samsara is on a mission to increase the safety, efficiency, and sustainability of the operations that power the global economy.
To realize this vision, we pioneered the Connected Operations Platform, which is an open platform that connects the people, assets, and systems of some of the world’s most complex operations, allowing them to develop actionable insights and improve their operations.
Our Connected Operations Platform consolidates data from our IoT devices and a growing ecosystem of connected assets and third-party systems, and makes it easy for organizations to access, analyze, and act on data insights using our cloud dashboard, custom alerts and reports, mobile apps, and workflows. Powered by our massive and growing data asset and expansive artificial intelligence (“AI”) technology, our differentiated, purpose-built suite of Applications and Agents enables organizations to embrace and deploy a digital, cloud-connected strategy across their operations. With Samsara, customers have the ability to drive safer operations, increase business efficiency, and achieve their sustainability goals, all to improve the lives of their employees and the customers they serve.
We were founded in 2015 and have achieved significant growth since our inception. For the three months ended August 1, 2026 and August 2, 2025, our revenue was $508.4 million and $391.5 million, respectively. Our net income was $16.2 million for the three months ended August 1, 2026 and our net loss was $16.8 million for the three months ended August 2, 2025. For the six months ended August 1, 2026 and August 2, 2025, our revenue was $987.3 million and $758.4 million, respectively. Our net income was $60.8 million for the six months ended August 1, 2026 and our net loss was $38.9 million for the six months ended August 2, 2025. Our business model focuses on maximizing the lifetime value of our customer relationships, and we continue to make significant investments to expand our customers’ use of our Connected Operations Platform.
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Key Business Metrics
The following table presents a summary of our key business metrics as of the periods presented (dollars in thousands):
| As of | |||||||||||
| August 1, 2026 | August 2, 2025 | ||||||||||
| Annual recurring revenue (“ARR”) | $ | 2,124,742 | $ | 1,640,113 | |||||||
| Customers > $100,000 ARR | 3,605 | 2,771 | |||||||||
ARR
We believe that ARR is a key indicator of the trajectory of our business performance, enables measurement of the progress of our business initiatives, and serves as an indicator of future growth. We define ARR as the annualized value of subscription contracts that have commenced revenue recognition as of the measurement date. ARR highlights trends that may be less visible from our financial statements due to ratable revenue recognition. ARR does not have a standardized meaning and is not necessarily comparable to similarly titled measures presented by other companies. ARR should be viewed independently of revenue and is not intended to be combined with or replace it. ARR is not a forecast, and the active contracts at the date used in calculating ARR may or may not be renewed. For all international customer contracts denominated in currencies other than the U.S. dollar, ARR is translated from local currency to U.S. dollar based on the currency exchange rate as of the effective date of the contract.
Number of Customers Over $100,000 in ARR
We focus on customers representing over $100,000 in ARR, as this key business metric is indicative of our penetration with larger customers. The number of our customers over $100,000 in ARR has grown over time as we have focused our sales efforts on larger customers, invested in our partner ecosystem, and released more Applications to address the needs of our larger customers.
Factors Affecting Our Performance
Acquiring New Customers
We believe that we have a substantial opportunity to continue to grow our customer base. We intend to drive new customer acquisition by continuing to invest significantly in sales and marketing to engage our prospective customers, increase brand awareness, and drive adoption of our Connected Operations Platform. Our ability to attract new customers depends on a number of factors, including the effectiveness of our sales and marketing efforts, macroeconomic factors and their impact on our customers’ businesses, and the success of our efforts to expand our international presence.
Expanding Within Our Existing Customer Base
We believe that there is a significant opportunity to expand sales to existing customers following their initial adoption of our Connected Operations Platform. We expand within our customer base by selling more Applications and Agents and expanding existing Applications and Agents across geographies and divisions. Our ability to expand within our customer base will depend on a number of factors, including our customers’ satisfaction, pricing, competition, macroeconomic factors, and changes in our customers’ spending levels.
Investments in Innovation and Future Growth
Our performance is driven by continuous innovation on our Connected Operations Platform and our ability to scale our operations to grow our business. We continuously invest in adding new data types to our Connected Operations Platform and innovate with this growing data asset to introduce new Applications and Agents over time. Our performance is also impacted by our ability to scale our operations across our business to support our growth. We remain committed to investing in our sales and marketing capacity, investing in world-class talent and productivity tools, and driving revenue growth globally.
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Macroeconomic Trends
Unfavorable conditions in the economy, both in the United States and abroad, may negatively affect the growth of our business and our results of operations. For example, our business and results of operations, as well as those of our customers, could be affected by global macroeconomic trends and events such as inflationary pressure, fluctuations in foreign currency exchange rates, interest rate increases and declines in consumer confidence, widespread disruptions of supply chains and freight and shipping channels, increased prices for many goods and services (including elevated hardware component costs, memory, storage and computing costs, and fuel costs), labor shortages, delayed or reduced spending on technology, and significant volatility and disruption of financial markets, as well as other conditions arising from international conflicts and geopolitical tension, the outcome of political elections, and new monetary, fiscal, and trade policies (including tariff policies and import and export restrictions) in the United States and abroad. We are continuously monitoring these global events and other macroeconomic developments and how they may impact us directly or indirectly as a result of the effects on our customers and suppliers.
Refer to the section titled “Risk Factors” in Part II, Item 1A and elsewhere in this Quarterly Report on Form 10-Q and the section titled “Risk Factors” in Part I, Item 1A and elsewhere in our Annual Report on Form 10-K filed on March 16, 2026, as supplemented by our subsequent quarterly reports on Form 10-Q, for further discussion of the impacts of macroeconomic trends on our business.
Components of Results of Operations
Revenue
We provide access to our Connected Operations Platform primarily through subscription arrangements, whereby the customer is charged a per-subscription fee for access for a specified term. Subscription agreements contain multiple service elements for one or more of our cloud-based Applications via mobile app(s) or a website that enable data collection and provide access to the cellular network, generally one or more wireless gateways, cameras, sensors and other devices (which we also refer to as connected devices or IoT devices), that are delivered over the term of the arrangement, and warranty coverage. Our subscription contracts typically have an initial term of three to five years and are generally non-cancelable and non-refundable, subject to limited exceptions under our standard terms of service and other exceptions for public sector customers, who are often subject to annual budget appropriations cycles. Our Connected Operations Platform and IoT devices are highly interdependent and interrelated, and represent a combined performance obligation within the context of the contract.
In each of our past two fiscal years, we generated approximately 98% of our revenue from subscriptions to our Connected Operations Platform. The remaining portion of our revenue not generated from subscriptions to our Connected Operations Platform is derived from the sale of replacement IoT devices, shipping and handling fees, and professional services.
Cost of Revenue
Cost of revenue consists primarily of the amortization of connected device costs associated with subscription agreements, third-party cloud and cellular costs, employee-related costs directly associated with our customer support and supply chain teams, including salaries, benefits, and stock-based compensation, amortization of internal-use software costs, fulfillment costs, warranty costs, provision for excess and obsolete inventory, and costs associated with software subscriptions and office facilities.
As our customers expand and increase the use of our Connected Operations Platform driven by additional IoT devices and Applications, our cost of revenue may vary from quarter to quarter as a percentage of our revenue due to the timing and extent of these expenses. Our cost of revenue may also increase as a result of higher market prices for hardware components. We intend to continue to invest additional resources in our Connected Operations Platform, including in our IoT device hardware, cloud infrastructure, and cellular connectivity, as well as in customer support and operations as we grow our business. The level and timing of investment in these areas will affect our cost of revenue in the future.
Operating Expenses
Research and Development
Research and development expenses consist primarily of employee-related costs, including salaries, benefits, and stock-based compensation, associated with improvements to our platform and current offerings and the development of new products, and costs associated with software subscriptions, and office facilities. We continue to focus our research and development efforts on adding new features and products and enhancing the utility of our Connected Operations Platform.
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We expect our research and development expenses to generally increase in absolute dollars for the foreseeable future as we continue to invest in research and development efforts to enhance our Connected Operations Platform. Our research and development expenses have fluctuated in the past and may in the future fluctuate as a percentage of our revenue from period to period due to the timing and extent of these expenses.
Sales and Marketing
Sales and marketing expenses consist primarily of employee-related costs, including salaries, benefits, stock-based compensation, and sales commissions incurred to acquire and retain new customers and increase product adoption with our existing customers. Sales and marketing expenses also include marketing activities, promotional events, and costs associated with software subscriptions and office facilities.
We plan to continue to invest in sales and marketing to expand our customers’ use of our Connected Operations Platform and increase our brand awareness. As a result, we expect our sales and marketing expenses to generally increase in absolute dollars for the foreseeable future. Our sales and marketing expenses have fluctuated in the past and may in the future fluctuate as a percentage of our revenue from period to period due to the timing and extent of these expenses, including seasonally higher spend on promotional events in the first half of our fiscal year.
General and Administrative
General and administrative expenses consist primarily of employee-related costs for executive, finance, legal, and human resources, including salaries, benefits, and stock-based compensation. General and administrative expenses also include costs related to professional services, including legal, accounting, recruiting and other consulting services, as well as costs associated with software subscriptions and office facilities.
We expect our general and administrative expenses to continue to increase in absolute dollars for the foreseeable future to support our growth. Our general and administrative expenses have fluctuated in the past and may in the future fluctuate as a percentage of our revenue from period to period due to the timing and extent of these expenses.
Interest Income and Other Income, Net
Interest income and other income, net, consists primarily of income earned on our money market funds and marketable debt securities, including amortization of premiums and accretion of discounts, and net unrealized gains (losses) on our strategic investments. It also includes one-time gains and losses not associated with our core operations and the effect of changes in foreign currency exchange rates. As we have expanded our global operations, our exposure to fluctuations in foreign currencies has increased, and we expect this to continue.
Provision for Income Taxes
Provision for income taxes consists primarily of income taxes in certain foreign jurisdictions in which we conduct business. We maintain a full valuation allowance against our U.S. deferred tax assets because we have concluded that it is not more likely than not that the deferred tax assets will be realized.
Results of Operations
Comparison of the Three and Six Months Ended August 1, 2026 and August 2, 2025
Revenue
Our total revenue is summarized as follows (in thousands, except percentages):
| Three Months Ended | Change | Six Months Ended | Change | |||||||||||||||||||||||||||||||||||||||||
| August 1, 2026 | August 2, 2025 | Amount | % | August 1, 2026 | August 2, 2025 | Amount | % | |||||||||||||||||||||||||||||||||||||
| Revenue | $ | 508,437 | $ | 391,480 | $ | 116,957 | 30 | % | $ | 987,281 | $ | 758,364 | $ | 228,917 | 30 | % | ||||||||||||||||||||||||||||
Revenue increased by $117.0 million and $228.9 million, or 30%, for the three and six months ended August 1, 2026, respectively, compared to the three and six months ended August 2, 2025, primarily due to growth in new customers and increased purchases by existing customers.
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Cost of Revenue, Gross Profit, and Gross Margin
Our cost of revenue, gross profit, and gross margin are summarized as follows (in thousands, except percentages):
| Three Months Ended | Change | Six Months Ended | Change | |||||||||||||||||||||||||||||||||||||||||
| August 1, 2026 | August 2, 2025 | Amount | % | August 1, 2026 | August 2, 2025 | Amount | % | |||||||||||||||||||||||||||||||||||||
| Cost of revenue | $ | 115,856 | $ | 90,501 | $ | 25,355 | 28 | % | $ | 233,557 | $ | 173,670 | $ | 59,887 | 34 | % | ||||||||||||||||||||||||||||
| Gross profit | $ | 392,581 | $ | 300,979 | $ | 753,724 | $ | 584,694 | ||||||||||||||||||||||||||||||||||||
| Gross margin | 77 | % | 77 | % | 76 | % | 77 | % | ||||||||||||||||||||||||||||||||||||
Cost of revenue increased by $25.4 million, or 28%, for the three months ended August 1, 2026 compared to the three months ended August 2, 2025, primarily due to $11.7 million of increased cloud and cellular costs, $6.4 million of increased connected device costs, and $3.3 million of increased employee-related costs. The increases in cloud and cellular costs and connected device costs were primarily due to increased sales volume and additional product features and functionality year-over-year. The increase in employee-related costs was primarily due to increased headcount.
Our gross margin remained flat at 77% for the three months ended August 1, 2026 compared to the three months ended August 2, 2025.
Cost of revenue increased by $59.9 million, or 34%, for the six months ended August 1, 2026 compared to the six months ended August 2, 2025, primarily due to $27.8 million of increased cloud and cellular costs, $17.1 million of increased connected device costs, and $6.3 million of increased employee-related costs. The increases in cloud and cellular costs and connected device costs were primarily due to increased sales volume and additional product features and functionality year-over-year. The increase in employee-related costs was primarily due to increased headcount.
Our gross margin decreased to 76% for the six months ended August 1, 2026 compared to 77% for the six months ended August 2, 2025, primarily due to increased cloud and cellular costs.
Research and Development
Research and development expense is summarized as follows (in thousands, except percentages):
| Three Months Ended | Change | Six Months Ended | Change | |||||||||||||||||||||||||||||||||||||||||
| August 1, 2026 | August 2, 2025 | Amount | % | August 1, 2026 | August 2, 2025 | Amount | % | |||||||||||||||||||||||||||||||||||||
| Research and development | $ | 102,556 | $ | 85,612 | $ | 16,944 | 20 | % | $ | 200,123 | $ | 168,854 | $ | 31,269 | 19 | % | ||||||||||||||||||||||||||||
| Percentage of revenue | 20 | % | 22 | % | 20 | % | 22 | % | ||||||||||||||||||||||||||||||||||||
Research and development expense increased by $16.9 million, or 20%, for the three months ended August 1, 2026 compared to the three months ended August 2, 2025, primarily due to a $6.8 million increase in costs associated with software subscriptions, a $6.4 million increase in stock-based compensation expense, and a $6.2 million increase in platform costs driven by investments in AI tooling and related development infrastructure.
Research and development expense increased by $31.3 million, or 19%, for the six months ended August 1, 2026 compared to the six months ended August 2, 2025, primarily due to a $12.8 million increase in costs associated with software subscriptions, a $10.8 million increase in platform costs driven by investments in AI tooling and related development infrastructure, and a $10.1 million increase in employee-related costs primarily due to higher stock-based compensation expense.
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Sales and Marketing
Sales and marketing expense is summarized as follows (in thousands, except percentages):
| Three Months Ended | Change | Six Months Ended | Change | |||||||||||||||||||||||||||||||||||||||||
| August 1, 2026 | August 2, 2025 | Amount | % | August 1, 2026 | August 2, 2025 | Amount | % | |||||||||||||||||||||||||||||||||||||
| Sales and marketing | $ | 217,774 | $ | 174,083 | $ | 43,691 | 25 | % | $ | 421,377 | $ | 339,483 | $ | 81,894 | 24 | % | ||||||||||||||||||||||||||||
| Percentage of revenue | 43 | % | 45 | % | 43 | % | 45 | % | ||||||||||||||||||||||||||||||||||||
Sales and marketing expense increased by $43.7 million, or 25%, for the three months ended August 1, 2026 compared to the three months ended August 2, 2025, primarily due to a $25.7 million increase in employee-related costs which included a $6.1 million increase in sales commissions and a $4.5 million increase in stock-based compensation expense primarily due to increased headcount. The increase in sales and marketing expense was also due to an $11.5 million increase in expenditures incurred to generate demand through various marketing channels and promotional events, including our annual customer and investor conference.
Sales and marketing expense increased by $81.9 million, or 24%, for the six months ended August 1, 2026 compared to the six months ended August 2, 2025, primarily due to a $49.2 million increase in employee-related costs which included an $11.8 million increase in sales commissions and a $4.1 million increase in stock-based compensation expense primarily due to increased headcount. The increase in sales and marketing expense was also due to a $21.2 million increase in expenditures incurred to generate demand through various marketing channels and promotional events.
General and Administrative
General and administrative expense is summarized as follows (in thousands, except percentages):
| Three Months Ended | Change | Six Months Ended | Change | |||||||||||||||||||||||||||||||||||||||||
| August 1, 2026 | August 2, 2025 | Amount | % | August 1, 2026 | August 2, 2025 | Amount | % | |||||||||||||||||||||||||||||||||||||
| General and administrative | $ | 67,376 | $ | 67,903 | $ | (527) | (1 | %) | $ | 120,154 | $ | 136,231 | $ | (16,077) | (12 | %) | ||||||||||||||||||||||||||||
| Percentage of revenue | 13 | % | 17 | % | 12 | % | 18 | % | ||||||||||||||||||||||||||||||||||||
General and administrative expense for the three months ended August 1, 2026 compared to the three months ended August 2, 2025 remained relatively flat.
General and administrative expense decreased by $16.1 million, or 12%, for the six months ended August 1, 2026 compared to the six months ended August 2, 2025, primarily due to a $17.8 million decrease in professional services fees, driven primarily by lower legal fees.
Interest Income and Other Income, Net
Interest income and other income, net, are summarized as follows (in thousands, except percentages):
| Three Months Ended | Change | Six Months Ended | Change | |||||||||||||||||||||||||||||||||||||||||
| August 1, 2026 | August 2, 2025 | Amount | % | August 1, 2026 | August 2, 2025 | Amount | % | |||||||||||||||||||||||||||||||||||||
| Interest income and other income, net | $ | 12,654 | $ | 11,426 | $ | 1,228 | 11 | % | $ | 54,386 | $ | 24,149 | $ | 30,237 | 125 | % | ||||||||||||||||||||||||||||
Interest income and other income, net, increased by $1.2 million, or 11%, for the three months ended August 1, 2026 compared to the three months ended August 2, 2025. This increase was primarily due to unrealized gains from strategic investments, partially offset by foreign currency losses.
Interest income and other income, net, increased by $30.2 million, or 125%, for the six months ended August 1, 2026 compared to the six months ended August 2, 2025. This increase was primarily due to a $30.3 million arbitration award issued in Samsara’s favor in the Motive breach of contract, fraud, unfair competition, and false advertising matter.
29
Provision for Income Taxes
Provision for income taxes is summarized as follows (in thousands, except percentages):
| Three Months Ended | Change | Six Months Ended | Change | |||||||||||||||||||||||||||||||||||||||||
| August 1, 2026 | August 2, 2025 | Amount | % | August 1, 2026 | August 2, 2025 | Amount | % | |||||||||||||||||||||||||||||||||||||
| Provision for income taxes | $ | 1,287 | $ | 1,607 | $ | (320) | (20 | %) | $ | 5,706 | $ | 3,196 | $ | 2,510 | 79 | % | ||||||||||||||||||||||||||||
| Effective tax rate | 7.3 | % | (10.6 | %) | 8.6 | % | (8.9 | %) | ||||||||||||||||||||||||||||||||||||
The provision for income taxes for the three months ended August 1, 2026 compared to the three months ended August 2, 2025 remained relatively flat.
The provision for income taxes increased by $2.5 million, or 79%, for the six months ended August 1, 2026 compared to the six months ended August 2, 2025, due to growth in our operations in foreign jurisdictions.
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”), we review the following non-GAAP financial measures to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions (in thousands, except percentages):
| Three Months Ended | |||||||||||
| August 1, 2026 | August 2, 2025 | ||||||||||
| Non-GAAP gross profit | $ | 397,998 | $ | 305,692 | |||||||
| Non-GAAP gross margin | 78 | % | 78 | % | |||||||
| Non-GAAP operating income | $ | 105,981 | $ | 59,698 | |||||||
| Non-GAAP operating margin | 21 | % | 15 | % | |||||||
| Non-GAAP net income | $ | 117,348 | $ | 69,517 | |||||||
| Six Months Ended | |||||||||||
| August 1, 2026 | August 2, 2025 | ||||||||||
| Free cash flow | $ | 137,918 | $ | 89,884 | |||||||
| Free cash flow margin | 14 | % | 12 | % | |||||||
Limitations and Reconciliations of Non-GAAP Financial Measures
Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for financial information presented under GAAP. There are a number of limitations related to the use of non-GAAP financial measures versus comparable financial measures determined under GAAP. For example, other companies in our industry may calculate these non-GAAP financial measures differently or may use other measures to evaluate their performance. In addition, free cash flow does not reflect our future contractual commitments or the total increase or decrease of our cash balance for a given period. These and other limitations could reduce the usefulness of these non-GAAP financial measures as analytical tools. Investors are encouraged to review the related GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures and to not rely on any single financial measure to evaluate our business.
Expenses Excluded from Non-GAAP Performance Financial Measures
Stock-based compensation expense-related charges include the amortization of deferred stock-based compensation expense for internal-use software and cloud computing arrangements and employer taxes on employee equity transactions. Stock-based compensation expense is a non-cash expense and is dependent on our stock price, which is beyond our control. Accordingly, we find it useful to exclude stock-based compensation expense in order to better understand our ongoing operational performance. Employer taxes on employee equity transactions, which are cash expenses, are excluded because such taxes are directly tied to the timing and size of employee equity transactions and the future fair market value of our common stock, which may vary from period to period independent of the operating performance of our business.
In periods when they occur, significant lease modification, impairment and related charges, and legal settlements and awards are excluded because management believes that such charges are not reflective of our ongoing operational performance.
30
Non-GAAP Performance Financial Measures
Non-GAAP Gross Profit and Non-GAAP Gross Margin
We define non-GAAP gross profit as gross profit excluding the effect of stock-based compensation expense-related charges included in cost of revenue. Non-GAAP gross margin is defined as non-GAAP gross profit as a percentage of total revenue. We use non-GAAP gross profit and non-GAAP gross margin in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP gross profit and non-GAAP gross margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations. The following table presents a reconciliation of our non-GAAP gross profit to our GAAP gross profit for the periods presented (in thousands, except percentages):
| Three Months Ended | |||||||||||
| August 1, 2026 | August 2, 2025 | ||||||||||
| Gross profit | $ | 392,581 | $ | 300,979 | |||||||
| Add: | |||||||||||
Stock-based compensation expense-related charges (1) | 5,417 | 4,713 | |||||||||
| Non-GAAP gross profit | $ | 397,998 | $ | 305,692 | |||||||
| GAAP gross margin | 77 | % | 77 | % | |||||||
| Non-GAAP gross margin | 78 | % | 78 | % | |||||||
__________
(1)Stock-based compensation expense-related charges included approximately $0.2 million and $0.3 million of employer taxes on employee equity transactions for the three months ended August 1, 2026 and August 2, 2025, respectively.
Non-GAAP Operating Income and Non-GAAP Operating Margin
We define non-GAAP operating income as income (loss) from operations excluding the effect of stock-based compensation expense-related charges, lease modification, impairment and related charges, and legal settlements and awards, in periods when they occur. Non-GAAP operating margin is defined as non-GAAP operating income as a percentage of total revenue. We use non-GAAP operating income and non-GAAP operating margin in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP operating income and non-GAAP operating margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations. The following table presents a reconciliation of our non-GAAP operating income to our GAAP income (loss) from operations for the periods presented (in thousands, except percentages):
| Three Months Ended | |||||||||||
| August 1, 2026 | August 2, 2025 | ||||||||||
| Income (loss) from operations | $ | 4,875 | $ | (26,619) | |||||||
| Add: | |||||||||||
Stock-based compensation expense-related charges (1) | 101,106 | 86,317 | |||||||||
| Non-GAAP operating income | $ | 105,981 | $ | 59,698 | |||||||
| GAAP operating margin | 1 | % | (7 | %) | |||||||
| Non-GAAP operating margin | 21 | % | 15 | % | |||||||
__________
(1)Stock-based compensation expense-related charges included amortization of capitalized stock-based compensation expense of approximately $1.5 million and $0.8 million for the three months ended August 1, 2026 and August 2, 2025, respectively, which was initially capitalized as internal-use software or cloud computing arrangements. Stock-based compensation expense-related charges also included approximately $3.3 million and $4.4 million of employer taxes on employee equity transactions for the three months ended August 1, 2026 and August 2, 2025, respectively.
31
Non-GAAP Net Income
We define non-GAAP net income as net income (loss) excluding the effect of stock-based compensation expense-related charges, lease modification, impairment and related charges, and legal settlements and awards, in periods when they occur. We use non-GAAP net income in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP net income provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations. The following table presents a reconciliation of our non-GAAP net income to our GAAP net income (loss) for the periods presented (in thousands, except percentages):
| Three Months Ended | |||||||||||
| August 1, 2026 | August 2, 2025 | ||||||||||
| Net income (loss) | $ | 16,242 | $ | (16,800) | |||||||
| Add: | |||||||||||
| Stock-based compensation expense-related charges | 101,106 | 86,317 | |||||||||
Non-GAAP net income (1) | $ | 117,348 | $ | 69,517 | |||||||
__________
(1)There were no material income tax effects on our non-GAAP adjustments for all periods presented.
Non-GAAP Liquidity Financial Measures
Free Cash Flow and Free Cash Flow Margin
We define free cash flow as net cash provided by operating activities reduced by cash used for purchases of property and equipment. Free cash flow margin is calculated as free cash flow as a percentage of total revenue. We believe that free cash flow and free cash flow margin are useful in evaluating liquidity and provide information to management and investors about our ability to fund future operating needs and strategic initiatives. The following table presents a reconciliation of free cash flow to net cash provided by operating activities for the periods presented (in thousands, except percentages):
| Six Months Ended | |||||||||||
| August 1, 2026 | August 2, 2025 | ||||||||||
| Net cash provided by operating activities | $ | 154,937 | $ | 102,773 | |||||||
| Purchases of property and equipment | (17,019) | (12,889) | |||||||||
Recent insider activity
| Date | Insider | Role | Action | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 2026-09-18 | Kirchhoff Benjamin Louis | CHIEF ACCOUNTING OFFICER | Sell | -770 | $40.42 | -$31,123 |
| 2026-09-15 | Chadwick Jonathan | Director | Sell | -10,000 ×2 | $42.09 | -$420,872 |
| 2026-09-15 | Kirchhoff Benjamin Louis | CHIEF ACCOUNTING OFFICER | Sell | -2,165 | $42.55 | -$92,121 |
| 2026-09-04 | Phillips Dominic indirect | SEE REMARKS | Sell | -17,909 | $44.25 | -$792,556 |
| 2026-09-04 | Phillips Dominic | SEE REMARKS | Sell | -11,710 | $44.25 | -$518,221 |
| 2026-08-25 | Eltoukhy Adam | SEE REMARKS | Sell | -6,876 | $39.82 | -$273,802 |
| 2026-08-20 | Bicket John indirect | SEE REMARKS | Sell | -34,557 | $39.44 | -$1,362,762 |
| 2026-08-19 | Bicket John indirect | SEE REMARKS | Sell | -93,365 ×4 | $39.93 | -$3,728,395 |
| 2026-08-18 | Bicket John indirect | SEE REMARKS | Sell | -135,978 ×6 | $39.99 | -$5,437,250 |
| 2026-08-20 | Biswas Sanjit indirect | CHIEF EXECUTIVE OFFICER | Sell | -35,366 ×2 | $39.43 | -$1,394,497 |
| 2026-08-19 | Biswas Sanjit indirect | CHIEF EXECUTIVE OFFICER | Sell | -93,079 ×4 | $39.94 | -$3,717,154 |
| 2026-08-18 | Biswas Sanjit indirect | CHIEF EXECUTIVE OFFICER | Sell | -135,455 ×6 | $39.99 | -$5,416,289 |
| 2026-08-18 | Kirchhoff Benjamin Louis | CHIEF ACCOUNTING OFFICER | Sell | -989 | $39.50 | -$39,066 |
| 2026-08-17 | Kirchhoff Benjamin Louis | CHIEF ACCOUNTING OFFICER | Sell | -2,625 | $39.31 | -$103,189 |
| 2026-08-06 | Bicket John indirect | SEE REMARKS | Sell | -57,267 | $37.89 | -$2,169,749 |
| 2026-08-05 | Bicket John indirect | SEE REMARKS | Sell | -87,079 ×4 | $38.64 | -$3,365,029 |
| 2026-08-04 | Bicket John indirect | SEE REMARKS | Sell | -119,554 ×6 | $38.34 | -$4,584,001 |
| 2026-08-06 | Biswas Sanjit indirect | CHIEF EXECUTIVE OFFICER | Sell | -57,090 ×2 | $37.89 | -$2,163,060 |
| 2026-08-05 | Biswas Sanjit indirect | CHIEF EXECUTIVE OFFICER | Sell | -87,333 ×4 | $38.64 | -$3,374,641 |
| 2026-08-04 | Biswas Sanjit indirect | CHIEF EXECUTIVE OFFICER | Sell | -119,477 ×6 | $38.34 | -$4,581,083 |
| 2026-08-03 | Phillips Dominic indirect | SEE REMARKS | Sell | -17,908 ×2 | $37.62 | -$673,671 |
| 2026-08-03 | Phillips Dominic | SEE REMARKS | Sell | -11,710 ×2 | $37.62 | -$440,588 |
| 2026-07-28 | Eltoukhy Adam | SEE REMARKS | Sell | -3,653 | $37.00 | -$135,161 |
| 2026-07-27 | Eltoukhy Adam | SEE REMARKS | Sell | -3,653 ×2 | $34.95 | -$127,664 |
| 2026-07-22 | Biswas Sanjit indirect | CHIEF EXECUTIVE OFFICER | Sell | -61,283 ×2 | $33.87 | -$2,075,896 |
| 2026-07-21 | Biswas Sanjit indirect | CHIEF EXECUTIVE OFFICER | Sell | -202,617 ×8 | $36.81 | -$7,458,389 |
| 2026-07-22 | Bicket John indirect | SEE REMARKS | Sell | -61,352 ×3 | $33.87 | -$2,078,144 |
| 2026-07-21 | Bicket John indirect | SEE REMARKS | Sell | -202,548 ×7 | $36.81 | -$7,455,922 |
| 2026-07-20 | Kirchhoff Benjamin Louis | CHIEF ACCOUNTING OFFICER | Sell | -960 | $37.70 | -$36,192 |
| 2026-07-15 | Kirchhoff Benjamin Louis | CHIEF ACCOUNTING OFFICER | Sell | -2,549 | $37.82 | -$96,403 |
| 2026-07-08 | Biswas Sanjit indirect | CHIEF EXECUTIVE OFFICER | Sell | -19,095 ×2 | $35.09 | -$670,086 |
| 2026-07-07 | Biswas Sanjit indirect | CHIEF EXECUTIVE OFFICER | Sell | -244,805 ×9 | $36.77 | -$9,001,792 |
| 2026-07-08 | Bicket John indirect | SEE REMARKS | Sell | -17,975 ×2 | $35.11 | -$631,059 |
| 2026-07-07 | Bicket John indirect | SEE REMARKS | Sell | -245,925 ×9 | $36.77 | -$9,042,875 |
| 2026-07-06 | Eltoukhy Adam | SEE REMARKS | Sell | -3,653 | $37.00 | -$135,161 |
| 2026-07-01 | Phillips Dominic indirect | SEE REMARKS | Sell | -17,909 | $33.32 | -$596,796 |
| 2026-07-01 | Phillips Dominic | SEE REMARKS | Sell | -12,065 | $33.32 | -$402,034 |
| 2026-06-29 | Eltoukhy Adam | SEE REMARKS | Sell | -2,039 | $32.08 | -$65,411 |
Source: SEC Form 4 filings.
Next expected filings
- ~2026-12-08 10-Q expected by 2026-12-10 (in 77 days)
- ~2027-03-11 10-K expected by 2027-03-19 (in 170 days)
- ~2027-06-08 10-Q expected by 2027-06-10 (in 259 days)
- ~2027-09-07 10-Q expected by 2027-09-09 (in 350 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-09-08 10-Q Quarterly Report
- 2026-09-03 8-K Earnings Release; Financial Statements and Exhibits
- 2026-06-09 10-Q Quarterly Report
- 2026-06-04 8-K Earnings Release; Financial Statements and Exhibits
- 2026-06-01 8-K Material Modification to Rights; Bylaws/Articles Amended; Financial Statements and Exhibits
- 2026-06-01 DEF 14A Proxy Statement
- 2026-03-16 10-K Annual Report
- 2026-03-05 8-K Earnings Release; Financial Statements and Exhibits
- 2026-01-06 8-K Other Events
- 2025-12-09 10-Q Quarterly Report
- 2025-12-04 8-K Earnings Release; Financial Statements and Exhibits
- 2025-09-18 8-K/A Officer/Director Change
- 2025-09-09 10-Q Quarterly Report
- 2025-09-04 8-K Earnings Release; Financial Statements and Exhibits
- 2025-08-21 8-K Officer/Director Change; Financial Statements and Exhibits