Symbotic Inc. Q1 FY2026 earnings call

• Revenue growth: Fiscal first quarter revenue grew 29%, surpassing fourth-quarter levels due to system expansion, deployment transition, and progress in paid development for e-commerce.
• Customer initiatives: Worked with Walmart on accelerated online pickup/delivery centers, improved first-generation systems at 19 stores, and advanced paid development of the second-generation design. Acquired Fox Robotics to enhance supply chain orchestration.
• Innovation: SIM bots saw over 25% increase in miles driven and transactions per bot daily. Floor-loaded inbound cells had meaningful per site volume increases. Processed over 2 billion cases and 200 million miles in 2025.
• Financial results: Achieved GAAP profitability with $13 million net income. Adjusted EBITDA of $67 million was a double-digit margin, and cash and cash equivalents were $1.8 billion.

Fiscal first quarter revenue reached $630 million, meeting the top end of the forecasted range. Systems revenue grew 27% year over year to $590 million, driven by the continued expansion of systems and deployment, and the transition of systems from deployment to operational status. Software revenue grew 97% year over year to $10.9 million, and operation services revenue grew 68% year over year to $28.8 million. GAAP net income was $13 million, achieving GAAP profitability, and adjusted EBITDA was $67 million, well above the forecasted range. Gross margin expanded sequentially and year over year, with systems gross margin improving due to structural operational enhancements, cost management, and the paid development program. Backlog stood at $22.3 billion.

For 2026, Symbotic expects revenue between $650 million and $670 million and adjusted EBITDA between $70 million and $75 million. Sequential growth in the third quarter is expected to be similar to the second quarter, with more pronounced growth in the fourth quarter.

• Forward-looking statements: Subject to risks and uncertainties where actual results could differ materially from expectations.
• Deployment timing: Deployment timelines are lumpy, and reallocation of R&D resources may impact margins.
• Chip availability: While chips are readily available, future upgrades may involve new chips, but not a significant immediate risk.

Q: Could you elaborate on the impact of paid development on revenue and EBITDA?

A: Paid development reached double digits in the first quarter, but is lumpy going forward as resources are redeployed.

Q: What is the current deployment timeline?

A: Still within a two-year period from announcement, with focus on reducing time from installation to operational status.

Q: What are the implications of R&D spend reallocation?

A: R&D spend may be lumpy, but annual spend is expected to remain relatively the same.

Q: What are the implications of the Fox acquisition?

A: Early stage, potential to enter new customer base, with big market potential for dock automation separate from warehouse automation.

Q: What is the progress on the Mexico site?

A: Progressing well, with more sites expected in Mexico and Latin America.

Q: What about perishables offering?

A: Working on designs, new structure allows cost savings, with prototypes in development for perishables.

Q: What about free cash flow outlook?

A: First quarter results serve as a starting point, with EBITDA improvement expected to drive cash flow.