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Smith Micro Software Inc. (SMSI+1.26%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing details a significant decrease in revenues to $20.6 million from $40.9 million in the previous year, primarily due to the loss of a Tier 1 Family Safety contract which accounted for approximately 36% of total revenues in 2023.
Cost of revenues decreased to $6.1 million from $10.6 million, while gross profit declined to $14.4 million, representing 70.2% of revenues compared to 74.2% in the prior year.
Operating expenses increased to $63.8 million from $48.4 million, driven by a $24.0 million goodwill impairment charge. Excluding this charge, operating expenses decreased by 18% due to cost reduction efforts.
The company reported a net loss of $48.7 million, or $3.94 per share, compared to a net loss of $24.4 million, or $3.01 per share, in the previous year.
Smith Micro's cash and cash equivalents were approximately $2.8 million as of December 31, 2024, with no outstanding debt. Cash flow used in operations was $14.3 million for the year.
The company remains focused on growing its subscriber base for the SafePath platform and expanding offerings to existing and prospective customers.
Smith Micro acknowledges the adverse impact on liquidity due to the loss of the Family Safety contract and is considering actions such as cost reductions, securing credit, or selling assets to meet future cash needs.
The company identified a material weakness in its internal controls over financial reporting due to a lack of resources with SEC financial reporting experience.
Smith Micro does not anticipate cash dividend payments to common stockholders in the near future.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Smith Micro Software Inc. annual 10-K report dated March 12, 2025. To report an error, please email earnings@qz.com.