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Smith Micro Software, Inc.. (SMSI) Stock Fundamental Analysis & AI Rating 2026

SMSI Nasdaq Services-Prepackaged Software DE CIK: 0000948708
Recently Updated • Analysis: Apr 16, 2026 • SEC Data: 2025-12-31
STRONG SELL
95% Conf
Pending
Analysis scheduled

📊 SMSI Key Takeaways

Revenue: $17.4M
Net Margin: -168.9%
Free Cash Flow: $-7.3M
Current Ratio: 0.74x
Debt/Equity: 0.21x
EPS: $-1.46
AI Rating: STRONG SELL with 95% confidence
Smith Micro Software, Inc.. (SMSI) receives a STRONG SELL rating with 95% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $17.4M, net profit margin of -168.9%, and return on equity (ROE) of -159.5%, Smith Micro Software, Inc.. demonstrates mixed fundamentals in the Technology sector. Below is our complete SMSI stock analysis for 2026.

Is Smith Micro Software, Inc.. (SMSI) a Good Investment?

Claude

Smith Micro is in acute financial distress with stagnant $17.4M revenue, a $29.3M net loss generating -168.9% margins, and negative $7.2M operating cash flow. The current ratio of 0.74x indicates inability to cover short-term obligations, while only $1.5M in cash against annual burn rate of $7M+ suggests potential insolvency within months.

Why Buy Smith Micro Software, Inc.. Stock? SMSI Key Strengths

Claude
  • + High gross margin of 74.1% indicates pricing power and viable underlying software business
  • + Modest improvement in losses YoY (net income improved 2.6%, EPS improved 62.9%)
  • + Conservative debt structure with Debt/Equity of 0.21x

SMSI Stock Risks: Smith Micro Software, Inc.. Investment Risks

Claude
  • ! Liquidity crisis: current ratio of 0.74x indicates inability to meet short-term obligations
  • ! Critical cash position: $1.5M cash insufficient for $7M+ annual operating burn rate
  • ! Revenue stagnation: 0% YoY growth with no signs of market traction or recovery
  • ! Unsustainable operations: -$7.2M operating cash flow with -$29M annual operating loss
  • ! Interest coverage of -358.2x indicates inability to service debt from operations
  • ! Bankruptcy risk: burn rate suggests cash depletion within 2-3 quarters

Key Metrics to Watch

Claude
  • * Quarterly operating cash flow trend and cash balance depletion rate
  • * Revenue growth acceleration or stabilization at improved levels
  • * Operating loss reduction path and timeline to breakeven
  • * Refinancing or capital raise announcements

Smith Micro Software, Inc.. (SMSI) Financial Metrics & Key Ratios

Revenue
$17.4M
Net Income
$-29.3M
EPS (Diluted)
$-1.46
Free Cash Flow
$-7.3M
Total Assets
$25.0M
Cash Position
$1.5M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

SMSI Profit Margin, ROE & Profitability Analysis

Gross Margin 74.1%
Operating Margin -167.1%
Net Margin -168.9%
ROE -159.5%
ROA -117.4%
FCF Margin -41.9%

SMSI vs Technology Sector: How Smith Micro Software, Inc.. Compares

How Smith Micro Software, Inc.. compares to Technology sector averages

Net Margin
SMSI -168.9%
vs
Sector Avg 18.0%
SMSI Sector
ROE
SMSI -159.5%
vs
Sector Avg 22.0%
SMSI Sector
Current Ratio
SMSI 0.7x
vs
Sector Avg 2.5x
SMSI Sector
Debt/Equity
SMSI 0.2x
vs
Sector Avg 0.5x
SMSI Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Smith Micro Software, Inc.. Stock Overvalued? SMSI Valuation Analysis 2026

Based on fundamental analysis, Smith Micro Software, Inc.. has mixed fundamental signals relative to the Technology sector in 2026.

Return on Equity
-159.5%
Sector avg: 22%
Net Profit Margin
-168.9%
Sector avg: 18%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.21x
Sector avg: 0.5x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Smith Micro Software, Inc.. Balance Sheet: SMSI Debt, Cash & Liquidity

Current Ratio
0.74x
Quick Ratio
0.74x
Debt/Equity
0.21x
Debt/Assets
0.0%
Interest Coverage
-358.16x
Long-term Debt
$3.8M

SMSI Revenue & Earnings Growth: 5-Year Financial Trend

SMSI 5-year financial data: Year 2021: Revenue $58.4M, Net Income $4.2M, EPS N/A. Year 2022: Revenue $58.4M, Net Income -$31.0M, EPS $-0.61. Year 2023: Revenue $48.5M, Net Income -$29.3M, EPS $-0.53. Year 2024: Revenue $40.9M, Net Income -$24.4M, EPS $-3.01. Year 2025: Revenue $20.6M, Net Income -$48.7M, EPS $-3.94.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Smith Micro Software, Inc..'s revenue has declined by 65% over the 5-year period, indicating business contraction. The most recent EPS of $-3.94 indicates the company is currently unprofitable.

SMSI Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-41.9%
Free cash flow / Revenue

SMSI Quarterly Earnings & Performance

Quarterly financial performance data for Smith Micro Software, Inc.. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $4.3M -$4.5M $-0.25
Q2 2025 $4.4M -$6.9M $-0.66
Q1 2025 $4.6M -$5.2M $-0.28
Q3 2024 $4.6M -$5.1M $-0.54
Q2 2024 $5.1M -$5.7M $-0.66
Q1 2024 $5.8M -$6.9M $-0.97
Q3 2023 $11.0M -$5.1M $-0.08
Q2 2023 $10.3M -$5.7M $-0.09

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Smith Micro Software, Inc.. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$7.2M
Cash generated from operations
Stock Buybacks
$753.0K
Shares repurchased (TTM)
Capital Expenditures
$88.0K
Investment in assets
Dividends
None
No dividend program

SMSI SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Smith Micro Software, Inc.. (CIK: 0000948708)

📋 Recent SEC Filings

Date Form Document Action
Apr 6, 2026 4 xslF345X06/rdgdoc.xml View →
Mar 16, 2026 4 xslF345X05/rdgdoc.xml View →
Mar 16, 2026 4 xslF345X05/rdgdoc.xml View →
Mar 10, 2026 4 xslF345X05/rdgdoc.xml View →
Mar 10, 2026 4 xslF345X05/rdgdoc.xml View →

Frequently Asked Questions about SMSI

What is the AI rating for SMSI?

Smith Micro Software, Inc.. (SMSI) has an AI rating of STRONG SELL with 95% confidence, based on fundamental analysis of SEC EDGAR filings.

What are SMSI's key strengths?

Claude: High gross margin of 74.1% indicates pricing power and viable underlying software business. Modest improvement in losses YoY (net income improved 2.6%, EPS improved 62.9%).

What are the risks of investing in SMSI?

Claude: Liquidity crisis: current ratio of 0.74x indicates inability to meet short-term obligations. Critical cash position: $1.5M cash insufficient for $7M+ annual operating burn rate.

What is SMSI's revenue and growth?

Smith Micro Software, Inc.. reported revenue of $17.4M.

Does SMSI pay dividends?

Smith Micro Software, Inc.. does not currently pay dividends.

Where can I find SMSI SEC filings?

Official SEC filings for Smith Micro Software, Inc.. (CIK: 0000948708) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is SMSI's EPS?

Smith Micro Software, Inc.. has a diluted EPS of $-1.46.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is SMSI a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Smith Micro Software, Inc.. has a STRONG SELL rating with 95% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is SMSI stock overvalued or undervalued?

Valuation metrics for SMSI: ROE of -159.5% (sector avg: 22%), net margin of -168.9% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.

Should I buy SMSI stock in 2026?

Our dual AI analysis gives Smith Micro Software, Inc.. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is SMSI's free cash flow?

Smith Micro Software, Inc..'s operating cash flow is $-7.2M, with capital expenditures of $88.0K. FCF margin is -41.9%.

How does SMSI compare to other Technology stocks?

Vs Technology sector averages: Net margin -168.9% (avg: 18%), ROE -159.5% (avg: 22%), current ratio 0.74 (avg: 2.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 16, 2026 | Data as of: 2025-12-31 | Powered by Claude AI