管理層發言
Thank you for standing by. My name is Gil, and I will be your operator for today. At this time, I would like to welcome each and every one of you to the Symbotic Third Quarter 2025 Financial Results. It is now my pleasure to turn today's call over to Mr. Charlie Anderson, Vice President of Investor Relations. Please go ahead.
Thank you. Hello. Welcome to Symbotic's Third Quarter of Fiscal Year 2025 Financial Results Webcast. I'm Charlie Anderson, Symbotic's Vice President, Investor Relations. Some of the statements that we make today regarding our business operations and financial performance may be considered forward-looking. Such statements are based on current expectations and assumptions that are subject to a number of risks and uncertainties. Actual results could differ materially. Please refer to our Form 10-K, including the risk factors. We undertake no obligation to update any forward-looking statement. In addition, during this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in today's earnings press release, which is distributed and available to the public through our Investor Relations website located at ir.symbotic.com. On today's call, we're joined by Rick Cohen, Symbotic's Founder, Chairman and Chief Executive Officer; and Carol Hibbard, Symbotic's Chief Financial Officer; as well as Izzy Martins, our CFO successor designate, who will become CFO effective August 9th. These executives will discuss our third quarter fiscal year 2025 results and our outlook, followed by Q&A. With that, I'll turn it over to Rick to begin. Rick?
Thank you, Charlie. Good afternoon, and thank you for joining us to review our most recent results. In the third quarter, we once again delivered strong financial results while driving key operational progress. Revenue increased by 26% year-over-year, and importantly, we maintained improved margins, thanks to disciplined cost control and solid project execution. I want to commend our team for their continued focus and high-quality delivery. Our automation systems are also showing tangible results for our customers. Adoption continues to scale, and we recently set a record processing over 6.5 million cases in a single day through our operational systems. This level of throughput highlights the real value we're delivering to our customers. On the development side, we also made solid progress on our integration of Advanced Systems and Robotics or ASR business. Notably, we've now identified sites for the development of the first prototypes of the next-generation solution.
Installation is expected to begin early next calendar year, keeping us on track with our roadmap. From a technology standpoint, we're driving innovation across the stack. A key example of this is our teleoperations capability, which enables remote operators to use our bots to reposition misaligned cases that have shifted out of place during inbound processing. Before this capability, these tasks sometimes required manual intervention during scheduled downtime. Recently, we reached an important milestone, our first operational day at a large site with 0 manual repositioning. Using machine learning, we are training our bots to automatically replicate these tasks, minimizing both downtime and labor needs. Our goal remains clear, smarter bots equipped with cameras, LiDAR and advanced GPUs, enabling even greater efficiency and value. Finally, on the innovation front, yesterday, we announced a major product milestone, the debut of our next-generation storage structure.
This marks what I believe is one of the most significant product upgrades in our company's history. This new structure substantially increases our already exceptional storage density, allowing customers to store considerably more products in the same space and/or reduce their overall storage footprint. A more compact structure also speeds case handling as bots travel shorter distances. Equally important, the new structure introduces preassembled precision manufactured subcomponents, reducing on-site assembly parts by over 90%. It also features a unique leveling system that minimizes floor preparation. Together, we believe these improvements will accelerate deployment and enhance scalability, thus making the next-generation structure a game changer for our business. Additionally, we plan to apply this structure across all aspects of the supply chain from distribution centers to perishable goods environments to e-commerce and micro-fulfillment hubs.
Customer response to the next-generation storage has been very positive. In fact, we began signing projects that include the new storage structure in our fiscal third quarter. We believe this next-gen storage structure supports our path to unlocking even higher margins and long-term value creation. In summary, Symbotic remains well positioned. Our strong and growing product portfolio spans multiple levels of the supply chain supported by a $22.4 billion backlog and a healthy balance sheet. Thank you to our team for their outstanding work this quarter and to our customers and shareholders for their continued support. I will now turn it over to Carol, who will discuss the quarterly financials before I come back to introduce Izzy Martins, who’s taking over as CFO next week and will provide the forecast. Carol?
Thanks, Rick. Before I begin, I want to thank the entire team at Symbotic. It has been a pleasure to serve as CFO with you. Symbotic is in a strong position, and I look forward to supporting the team during the transition period. Now to the results. Third quarter revenue grew 26% year-over-year to $592 million, with revenue growth driven by solid progress across our 46 systems in deployment, expansion of the number of systems in operation, and continued progress on our ASR development. Our net loss for the third quarter was $32 million versus a loss of $27 million in the third quarter of fiscal year 2024. Adjusted EBITDA in the third quarter of $45 million was well above our forecast and up significantly year-over-year from $3 million in the third quarter of fiscal year 2024. In terms of the backlog, our backlog of $22.4 billion remained in a strong position. The sequential decrease from $22.7 billion last quarter was due to revenue recognized in the quarter, partially offset by final pricing on projects started.
In our third quarter, we began 5 new system deployments. We also had 5 systems go operational in the quarter, bringing our total to 42 operational systems. As we mentioned last quarter, we view the most critical portion of deployment as the time between the start of installation and when the system goes operational at acceptance. This is the time in which we see the most revenue and profit contribution. In the third quarter, we again saw improvements against this metric. During the third quarter, we had a Phase 1 completion for our largest customer that was nearly 2x the size of our historical average for Phase 1 deployments for this customer. Despite that added size, the time between start of installation and going operational was only slightly higher than our historical average and significantly less if we normalize for size. We also completed 2 Phase 2 deployments for our largest customer that both took over 20% less time between start of installation and acceptance than the historical average of their predecessors.
With the continued growth in operational systems, we saw our software revenue more than double year-over-year to $8.1 million, and operations services revenue grew 54% year-over-year to $24.9 million. Turning to margins, system gross margin continued last quarter's trend of significant year-over-year improvement, thanks to strong cost control and project execution. Gross margin on software maintenance and support exceeded 75%, as it continued its trend towards software industry margins as we gained scale. And in Operations Services, we came in with a slight profit. Operating expenses on a GAAP basis were up sequentially, primarily due to a $16 million restructuring charge from the workforce reduction associated with our acquisition of the Walmart ASR business. On a non-GAAP basis, operating expenses were down sequentially, coincident with activity from the development phase of ASR. We finished the quarter with cash and equivalents of $778 million, which decreased from $955 million in the second quarter, primarily due to the timing of cash receipts. In summary, we had a strong financial quarter matched with continued operational progress. I'm now going to hand it back to Rick, who will introduce Izzy. Rick?
Thank you, Carol. On behalf of everyone at Symbotic, I want to thank you for your contributions, namely your leadership in driving improved project execution while controlling costs, which we are reaping the benefits of today. We are fortunate to have a good amount of overlap between Carol and Izzy, who joins us from Avis Budget Group, where she served as CFO and previously served as Executive Vice President, Americas, where she oversaw a market segment with over $9 billion of revenue. Izzy brings to us a strong track record of financial leadership and operational expertise, which is critical for the next phase of the company. We're thrilled to have her here. With that, I'll turn it over to Izzy, who will introduce herself and provide the forecast. Izzy?
Thank you, Rick. I'm honored to join Symbotic, a recognized leader in supply chain transformation through robotics and innovation. It's exciting to be a part of an organization that consistently pushes the boundaries of operational excellence. I also want to extend my sincere thanks to Carol for the warm onboarding experience and for generously sharing her deep institutional knowledge over the past month. Her guidance has been invaluable, and I am grateful for her continued support during this transition. I look forward to partnering with our exceptionally talented leadership team as we enter our next phase of growth with a strong focus on delivering sustained value for our customers and our shareholders. Finally, I am eager to engage with many of you in the investment community in the coming months. I welcome the opportunity to share our vision for the future. Now turning to the forecast.
As Rick highlighted earlier, we are in the process of bringing to market a next-generation storage structure that we fully expect will set the new standard for our customers. Over the long term, we anticipate this innovation will unlock meaningful opportunities, enabling more efficient deployments and supporting a higher margin profile for Symbotic. In the near term, we anticipate an adjustment in the timing of several previously planned deployments as efforts are realigned to support the transition to the next-generation storage structure. As a result, the quarter-over-quarter sequential growth we've seen in recent periods will be less pronounced in the fourth quarter. Looking ahead to the first half of 2026, we believe we could see a similar impact as we adjust deployment schedules to accommodate a transition to the new structure. It is important to note that this does not affect our overall backlog.
In fact, we believe the new structure's rapid assembly characteristics will allow us to scale faster over time. With that in mind, for the fourth quarter of fiscal 2025, we expect revenue between $590 million and $610 million and adjusted EBITDA between $45 million and $49 million. With that, we now welcome your questions. Operator, please begin the Q&A.
分析師問答
Thank you for the instructions. Today, our first question comes from the line of Andy Kaplowitz with Citi.
So maybe you can help us quantify this next-generation storage technology in terms of how first, how much faster can I make installation times? And how do you think about the retrofit opportunity set for Symbotic of this technology? Would you expect, for instance, Walmart to do a bunch of retrofitting of systems that you've already completed with them? And then will they actually pay you for that?
Yes. I'll address that. We do not anticipate Walmart undertaking retrofits. The advantage of this system is its ability to operate alongside the existing structure while occupying less space. Consequently, some of the projects we are collaborating on with Walmart will be smaller due to the new structure, allowing them to sell more products within the same facility or offer additional capabilities. For example, we could incorporate a break pack system in a building that was previously dedicated to replenishment for stores, and we could also introduce an ASR system that might resemble an e-commerce solution. These advancements will significantly enhance our business capabilities. This highlights a fundamental aspect of innovation—whether it involves transistors or other technologies, miniaturization is typically a major advantage, which is precisely what we are achieving. Furthermore, they will continue to use the existing structures and facilities they have. In some of the Phase III buildings we're developing, we actually have a new structure built alongside the old one. This required considerable development effort on our part, but it was important for us that customers do not have to revert to older systems. They are very enthusiastic about the benefits this will bring.
And Andy, I'll follow up on your question related to deployment timelines. So as you know, we follow a key metric, which is install to actual deployment timeline. Historically, that's been about 12 months, and we've seen step-downs in that on our existing core. Given the reduction in parts and the streamlined assembly that we plan in terms of that build, you would likely see that timeline begin to reduce, and we'll share that progress as we roll out the design and begin deployment.
Rick, I just have one follow-up. Like so the way you think about the growth line, it's less steep for the next few quarters and then it can be even steeper than it was past that. That's the way to think about it in a positive direction, correct?
Yes, that's exactly how we approached it. When we began developing this, we kept that in mind. For example, we've received several inquiries about perishables due to the high cost of construction. However, the facility is currently very costly to retrofit for perishable goods, making it potentially the best retrofittable perishable facility available. This represents a brand-new product for us.
Rick, I wanted to ask you about the increased sales force you mentioned last quarter. The backlog remains in the $22 billion to $23 billion range. You also indicated that we can expect to gain some new customers this year. Is that still true? And will it be more likely with Symbotic or GreenBox?
I believe it will come from both. We announced the new structure yesterday, but we have been marketing it for the last 3 to 6 months, letting customers know it might be coming. We've also begun some designs. The first installation is set to take place in Bajio, Mexico for a major Walmart project, with more to follow. Our marketing efforts have ramped up in the last 3 to 6 months, and as a result, our conversations with potential new customers are increasing.
Your next question comes from the line of Joe Giordano with TD Cowen.
Maybe I'll start just on that structure. I'm sure we all watch the videos. I get it's clear why this would be faster to put together. I'm just curious, maybe you could talk me through like the main reasons why it's more dense. I think that's a little bit harder to just tell from the video, like why it's necessarily smaller. And can you help us like what does this mean for like the price of these things?
The reason it's smaller is that it uses a cantilever structure, and surprisingly, the posts supporting the original design occupied 10% of the linear storage space. Additionally, as seen in the video, because we have fingers or times, we can accommodate 3.2 shelves per level compared to 2.2 cases per level, resulting in a 30% increase. That's why a 40% improvement in storage density is significant. Essentially, we removed excess space from the structure to enhance both cubic and linear density, which may not excite most people but greatly benefits the customer, and we've patented this design. It's likely the first new structure of its kind; others are mainly using traditional warehouse racks for automation. This innovative structure, for which we hold many patents, can be assembled quickly. We have a team of new design structural engineers who contributed to this. Moreover, it was designed for modular assembly. Unlike the previous system that required about a million rivets for installation, this one has none, making for a much faster installation process.
And the implications on cost for something like that?
So the implication on cost is we're value pricing this. So for the customer, we think we can save them more money because they don't need as much space. And for us, we expect to make higher margins.
Higher margins and maybe lower dollars, but maybe you can protect the gross profit dollars. Is that the right way to think about it?
Maybe not lower – maybe not lower dollars.
And I think another way to think about it, Joe, is it's going to vary by customer because we're building this in less space. The customer will have a decision to make of they might want to maximize that additional density and utilize that because we've created them capacity. So I think it will vary as they look at how they want to go and deploy.
How should we consider stock-based compensation moving forward? It was initially expected to decrease, but it has remained high over the past few quarters and significantly impacts adjusted margins. What trajectory do you anticipate for this?
Yes. I would say that the trend you observed last quarter and where we stand this quarter will continue for at least the next few quarters. The increase is primarily due to the talent we've brought in and the overall rise in our headcount. Part of this increase is also linked to our acquisition associated with ASR.
Your next question comes from the line of Nicole DeBlase with Deutsche Bank.
Maybe just starting with the big step-up that you saw in software gross margins, pretty impressive this quarter to be north of 70%. Any comments on the drivers of that? And should we now view that above 70% level as sustainable moving forward?
Yes. Thanks for the question, Nicole. I'd say given that this is the second or third quarter in a row, where we've seen the step-up, I would assume that 70% level continues going forward. So this quarter, we added 7 new acceptances into the quarter. And so we're really seeing the benefit of scale. Last quarter, we added 8 systems that hit complete. And this quarter, we saw 5. And so we're really seeing the benefit of being able to scale across the software team.
Got it. That's great. And then secondly, on free cash flow, I think it was a use of cash this quarter, which surprised me a little bit. Can you just provide some more color on that? Maybe it has something to do with the new structure, et cetera? And any thoughts on free cash in 4Q?
Yes. The free cash flow was not associated with the new structure. It was entirely timing of receipts. So we signed projects later in the quarter, and we'll see that step back up in the fourth quarter. One thing to note on free cash flow going forward, which is tied to the new structure. And so you've seen our CapEx relatively flat around $12 million to $15 million a quarter. You're going to see a step up over the next couple of quarters as we make the investments to support the build of the new design. So all of the times that Rick talked about, we're investing in the equipment to produce those. So you'll see a step-up in CapEx over the next couple of quarters.
Okay. And any way to quantify the step-up in that CapEx approximately?
Yes. I'd say you'll see CapEx about 2x what you saw this quarter.
Your next question comes from the line of Mark Delaney with Goldman Sachs.
First, on the new storage structure, thanks for all the details you shared already on that topic. I'm hoping you could be a little clearer when do you expect to start providing this to customers? You mentioned Mexico being the first location with Walmart, but I wasn't quite sure when you expect that to begin. And if you could also help us understand of the backlog, is your expectation that most of the systems you haven't started yet are going to be with this new structure? Or do you need to go out and negotiate that?
So I'll go ahead and start. So yes, as Rick indicated, we already have customers who have signed. In fact, all 5 of our starts for this quarter, we signed those assuming the next-gen structure configuration. And so our expectation is our customers going forward will all be associated with the next-gen structure. We expect the first one to begin installation mid next fiscal year, so our mid fiscal year 2026.
Are there still going to be some system starts with the old structure until the new one is ready, or will new starts be close to zero until the middle of next year?
Yes. No, new starts won't go to 0. So that's a good clarification point. So in fact, we had 5 new starts this quarter. All 5 of them are going to proceed with the new structure. And so with the design activity we spent over the last several quarters, we'll go ahead and incorporate the CapEx and be able to begin installation of those sites in mid-2026. You are not going to see a stop of new system signatures as we go forward based on the new design. You saw a slowing of them this quarter as we had customers waiting for some of the deployments that they would have started, and that's what you're seeing impactful in our guidance for the fourth quarter and what we referenced for the first half of '26.
Okay. Just one other from me, if I could, on GreenBox. When Symbotic announced the GreenBox deal 2 years ago, the plan, I believe, was to start installation of all of those systems within 6 years. I think it's been a relatively limited number of systems that Symbotic has started for GreenBox thus far. So I'm hoping to better understand what your expectation is at this point? And do you still expect to begin installation of all of those GreenBox systems within the prior 6-year target?
And so as you indicated, we've got 3 systems currently in deployment. And you actually saw within the quarter, we're seeing installation ramp up. And so you're seeing revenue from GreenBox start increasing on those systems. So we have indicated over the last couple of quarters, we saw slower-than-planned starts of GreenBox systems. We expect to see now that we've got the CEO in place and the sales team in place, we expect to start seeing that move forward in the coming quarters.
Your next question comes from the line of Colin Rusch with Oppenheimer.
There's been an awful lot of innovation in and around the energy storage space. I'm just curious about how much leverage and how much opportunity there is to optimize bot performance uptime some of the design as you start to see some of those chemistries mature at a level that you get comfortable with.
The new structure will lead to shorter bot trips, which we anticipate will significantly increase the number of bot transactions per minute and per hour. With reduced travel time, we will require fewer bots, thus lowering system costs. Additionally, we're enhancing the bots by integrating LiDAR, upgrading vision chips, and improving their computing abilities. There is a strong focus on innovation, and we expect that within the next year, bots will be capable of performing significantly more tasks than they currently do.
Okay. I'll follow up afterwards on the battery impact. And then I guess from a dexterity and kind of material handling perspective, obviously, you guys are the clear leader in terms of the number of materials and the types of materials that you guys can handle. I guess, are there areas that you guys are trying to innovate on right now that might open up incremental opportunities? And can you give us a sense of timing in terms of just some of the materials that are difficult to manage that you guys might be able to unlock here over the near term?
When you mention materials, I'm uncertain about the specifics. One of our key targets is perishables, particularly because the cost per square foot for some of these smaller buildings is around $500, making them very valuable to the customer. They benefit from savings on the building, and we can offer them a highly valuable system. Similarly, with freezers, while they are not particularly challenging for us, the increased storage density has led some customers to reconsider previous providers, thinking they might expand their current freezer without needing as much additional space as they initially believed. Our focus on value creation is evident—ambient systems allow us to handle more items compared to traditional systems. On the perishable side, there's also significant value due to the high costs associated with the facilities even before implementing our system. This is a clear area of focus for us, and we don't see temperature as having a major impact on our bots.
Your next question comes from the line of Derek Soderberg with Cantor Fitzgerald.
Rick, just a question on the competitive environment. I think we've all seen videos online. There's humanoid robots out there. I think one of your competitors has kind of robotic unloading technology from a semi-truck. Any sort of change in the competitive environment? I know there was a question earlier on some of the technology, but it seems like the pace of innovation has really stepped up. Any new concerns or any new technologies out there?
We are always cautious, but the feedback we receive indicates that truck unloading is quite specialized, and we are engaging with many of those stakeholders. This could potentially enhance our system's value. Humanoid robots excel in manufacturing, but our robots operate at 25 miles per hour. Humanoid robots are best suited for stationary or slow-moving tasks, incorporating dexterity, fingers, and good vision. Our robots are designed for case handling, so we are less worried about humanoid robots. This represents a different area of automation that we are pursuing. We're observing an increasing number of requests from clients who previously relied on competitors. Overall, we feel positive about our position and expect our total addressable market and market share to expand. However, I cannot provide proof until that happens, but that is my belief.
Got it. That's helpful. And then just with the new storage system, I think there were a number of questions on the cost, how it's going to impact backlog. But just when you combine that with a lot of the changes you guys have made on the EPC front, bringing that in-house, it's been a while since we've gotten kind of an update on maybe the structural gross margins of the hardware piece, the systems piece. Where are we sort of headed with all these changes that you guys have made? What are sort of the structural gross margins in systems? How much more room do we have to kind of continue to see margin expansion from here in systems?
Yes. The next-gen structure, Derek, is actually one of the key enablers on our path to 30% system gross margin. So systems-wise, we're still on that path. And we've talked about overall improvements around schedule being a driver, bringing back the EPC was certainly one of the significant drivers to get us where we posted the last couple of quarters. But the next-gen structure, the pure fact that it's streamlining assembly, reducing the million rivets that Rick mentioned, that's going to help us on our trajectory towards higher gross margins. And then as we think about the value creation piece of this, as we go out and attract new customers, we're certainly driving to utilize that to grow the gross margin profile.
Your next question comes from the line of Greg Palm with Craig-Hallum.
I maybe just want to go back to the quarter because what really, I guess, stood out to us was the operating leverage. The incremental margins were extremely high in the quarter. So I'm just curious if there's anything sort of one-time, any benefit in the quarter that you saw? And just as we kind of think about fiscal '26, how should we kind of think about that going forward?
Yes. From a gross margin perspective, the step-up in software was certainly a good contributor. And when I think about mix, so we had a higher contribution this quarter from our advanced systems and robotics portion of the business, higher margin content than some of our historical contracts have been. So you're seeing that. And then the other lever, which continued to be beneficial this quarter is that timeline to deployment that we indicated from the start of install to final acceptance, we're seeing continued improvements on how long it's taking us to build these. And so you're seeing that reflected in our gross margin.
Okay. That's helpful. And then I guess just maybe one clarification. In terms of the new storage system, I'm curious, has this been a part of the product road map for a number of years? Was this something that was maybe more directed by one of your customers? I'm just kind of curious to sort of know the timeline or the history and maybe some of the background.
Yes. I've been working on this for a couple of years and created my first design. I feel like Frank Gehry; I had an idea that required engineers to bring it to life. This project has been in development for two years. We've engaged with customers, tested the concept, and they expressed significant interest. Over the past year, we have established test systems nearby, and it's truly an impressive new product.
Okay. Carol, best of luck going forward and Izzy, looking forward to working with you.
Thank you, everyone. And that concludes our question-and-answer session for today. I will now turn the call back over to Mr. Charlie Anderson for the closing remarks. Please go ahead.
Yes. Thanks, everybody, for joining our call tonight. We really appreciate your interest in Symbotic and look forward to seeing many of you during the quarter at the various investor conferences we'll be attending. Thank you, and good night.
Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect. Have a nice day ahead, everyone.