Smith Micro Cuts Adjusted Loss to $0.05 per Share as Revenue Grows 16%

Key Facts

Smith Micro Software reported an adjusted net loss attributable to shareholders of $0.3 million, or $0.05 per share, in the third quarter of 2026, compared with a loss of $2.6 million, or $0.61 per share, a year earlier. The adjusted per-share loss was below Zacks’ estimate of $0.11, according to its results report. On a generally accepted accounting principles basis, the company posted a net loss of $1.7 million, or $0.30 per share, compared with $5.2 million, or $1.23 per share, in the same quarter last year. The comparison between GAAP and non-GAAP measures shows the extent of the improvement reported by the company, while net results remained negative under both measures. The company said quarterly revenue was $5.0 million, up from $4.3 million a year earlier.

Chief Executive William W. Smith Jr. said revenue rose 16% quarter over quarter, marking a third consecutive quarter of growth from the previous quarter. That follows revenue of $4.3 million in the second quarter of 2026, compared with $4.4 million in the same period of 2025. The company had described the second quarter as its second consecutive quarter of sequential revenue growth, saying at the time that it had two new customers nearing launch and multiple contracts under negotiation. In the third quarter, Investing.com reported revenue of $5.02 million, compared with average estimates of $5.05 million. Revenue therefore came in slightly below consensus, despite rising from a year earlier and continuing to increase quarter over quarter.

Gross margin was 81.6% in the third quarter, compared with 73.9% in the same period a year earlier. Smith Micro described the margin as its highest in five years, putting the improvement in gross profitability alongside revenue growth in the quarter’s results. It also said operating expenses fell by about $2.1 million year over year. The company attributed the decline to cost-improvement efforts in sales and marketing, research and development, and general and administrative expenses. The expense reductions coincided with narrower reported losses on both a GAAP and non-GAAP basis, according to the figures in the results statement.

By business line, the company said Family Safety revenue increased by $0.6 million from the third quarter last year. That figure included $0.8 million in non-recurring engineering fees, an amount greater than the reported increase in the line’s revenue itself. CommSuite revenue also rose by $0.1 million year over year. These details show that reported revenue growth included non-recurring engineering fees within Family Safety’s performance, alongside a smaller increase in CommSuite. The statement did not specify how much the Family Safety fees contributed to total quarterly revenue.

Smith said the company signed new contracts and expanded existing contracts with new and current customers. He added that Smith Micro continues to expand its SafePath platform into a comprehensive family safety ecosystem that telecommunications companies can offer as a standalone app, on a dedicated phone or integrated into their applications. The company links this expansion to efforts to broaden its customer offerings, while the chief executive described its commercial opportunity pipeline as growing and comprising "high-quality" opportunities. He said he was confident the company could turn this momentum into long-term growth. These comments reflect management’s description of the business direction and opportunities, while the current quarter’s results show reported revenue and losses for the period ended September 30, 2026.

Smith Micro shares closed at $2.32 in the November 11, 2026, session, according to EL7 data. The company’s statement set its earnings conference call for November 12, 2026, at 4:30 p.m. Eastern Time. The call comes the day after the cited close and gives management an opportunity to present and discuss third-quarter results. The company had previously announced the call as part of its quarterly earnings schedule. The trading data available here did not include a daily share-price range for the November 11 session.