Symbotic Inc. Q4 FY2025 earnings call

• Rick Cohen highlighted strong progress in FY2025 with 26% revenue growth, margin expansion, and free cash flow. The product portfolio was expanded with micro fulfillment and a next-generation storage structure. Signed Medline as the first healthcare customer. - Izzy Martins discussed Q4 financial results: revenue growth driven by operational systems and paid development program; net loss due to stock-based comp, restructuring; adjusted EBITDA $49M, up from $42M in 2024; backlog at $22.5B; 6 systems went operational, doubling the total from FY2024; software and operations services revenue growth; system gross margin improved, software maintenance and support margin exceeded 70% full year.

Fiscal fourth quarter revenue grew 10% year over year to $618 million. Software revenue in the fiscal fourth quarter grew 57% year over year to $9.3 million, and operations services revenue grew 21% year over year to $26.9 million. Backlog remained strong at $22.5 billion, with an increase from the previous quarter due to final pricing on projects and the addition of Medline backlog.

• FY2026 revenue guidance: $610 million to $630 million, representing 25-29% year over year growth. - Adjusted EBITDA guidance: $49 million to $53 million. - Revenue phasing to be less pronounced in the first half of 2026 compared to the back half due to the introduction of the next-gen storage structure.

• Risks associated with forward-looking statements where actual results could differ materially from expectations. - Risks related to deployment process, competition, and potential operational failures that could impact financial performance.

Q: Nicole DeBlase asked about Medline's details and revenue cadence for 2026.

A: Rick Cohen talked about Medline being a proof of concept with potential upsell to micro fulfillment; Izzy Martins explained revenue phasing with less pronounced growth in first half and more in back half.

Q: Joe Giordano asked about Medline's site count, technology, and backlog mix.

A: Rick Cohen said it's one site, starting with original product with potential for micro fulfillment and break pack; Izzy Martins clarified system size flexibility.

Q: Andrew Kaplowitz asked about backlog delivery and GreenBox progress.

A: Izzy Martins discussed backlog delivery confidence with exit trends and GreenBox progress with Atlanta site under construction and potential customer announcements soon.

Q: Mark Delaney asked about GreenBox customer progress and implications of SoftBank's capital raise.

A: Rick Cohen said Atlanta site will come live, no customers announced yet but discussions ongoing; no impact on GreenBox funding as agreement with SoftBank is ironclad.

Q: Colin Rusch asked about bot design evolution and talent attraction.

A: Rick Cohen talked about bot design improvements like stretch bots and collision avoidance; Izzy Martins discussed talent attraction through stock-based comp, opening offices in West Coast and Vietnam, and attracting talent from EV space.

Q: Guy Hardwick asked about RPO change mix and backlog delivery confidence.

A: Izzy Martins said RPO change is more about pricing increase, and confident in 12% backlog delivery with next-gen storage's installation benefits.

Q: Derek Soderberg asked about recurring software fees and human capital.

A: Izzy Martins said no specific color on recurring software fees; Rick Cohen talked about battery technology with Niabolta for improved reliability.

Q: Jim Ricchiuti asked about geographic expansion and Europe opportunities.

A: Rick Cohen said half the sales team is in Europe, optimistic about European opportunities.

Q: Ken Newman asked about revenue growth phasing and chip availability impact.

A: Izzy Martins explained revenue growth phasing focus on continual improvement; Rick Cohen said chips not a problem for Symbotic as they use lower-priced chips and bots transmit data for processing.

Q: Mike Latimore asked about bot count and system starts.

A: Rick Cohen said there are about 15,000 bots now, expecting growth; Izzy Martins talked about system starts mix and focus on revenue guide.

Q: Gregory Palm asked about systems gross margin improvement and Medline's competitive displacement.

A: Izzy Martins discussed systems gross margin improvement due to disciplined cost management and next-gen storage; Rick Cohen said Medline has potential for competitive displacement with their technology.

Q: Keith Housum asked about retailer investment changes and Medline's opportunity.

A: Rick Cohen said Symbotic's technology is supercharged due to e-commerce evolution, with potential for big market opportunities with Medline.