Samsara Inc. 10-Q Summary: Q1 2026
Business Context and Reporting Period
This Quarterly Report on Form 10-Q covers the three-month period ended May 2, 2026. Samsara Inc. operates the Connected Operations Platform, an open platform connecting people, devices, and systems for complex operations. The company reported its first GAAP net income in this period, transitioning from a net loss in the prior year. On June 1, 2026, the company completed a conversion from a Delaware corporation to a Nevada corporation.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Revenue | $478.8 million | $366.9 million |
| Gross Profit | $361.1 million | $283.7 million |
| Gross Margin | 75% | 77% |
| Operating Income | $7.2 million | ($33.3 million) loss |
| Net Income | $44.5 million | ($22.1 million) loss |
| Diluted EPS | $0.08 | ($0.04) |
| Operating Cash Flow | $81.4 million | $52.6 million |
| Free Cash Flow | $73.2 million | $45.7 million |
| Cash & Investments | $1.28 billion | N/A |
| Annual Recurring Revenue (ARR) | $1.99 billion | $1.54 billion |
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 31% year-over-year, driven by new customer acquisition and expansion within the existing base.
- Profitability: The company achieved GAAP net income of $44.5 million, a significant turnaround from a $22.1 million loss in Q1 2025. This was largely driven by a $30.3 million non-recurring gain from an arbitration award against Motive Technologies.
- Expense Trends:
- Cost of Revenue: Increased 42% due to higher cloud/cellular costs and connected device costs associated with sales volume growth.
- Operating Expenses: Sales and marketing expenses rose 23% due to headcount increases and commissions. General and administrative expenses decreased 23% due to reduced non-recurring consulting fees.
- Liquidity: Cash and investments totaled $1.28 billion as of May 2, 2026. Net cash used in investing activities was $149.2 million, primarily for purchasing investments.
Outlook, Risks, and Unusual Items
- Unusual Items: The Q1 2026 results include a one-time $30.3 million gain from an arbitration settlement. Excluding this and stock-based compensation, Non-GAAP net income was $98.0 million.
- Guidance: The filing does not provide specific numerical guidance for future quarters. Management expects operating expenses to increase in absolute dollars to support growth and innovation.
- Risks:
- Macroeconomic Factors: Inflation, interest rates, and geopolitical tensions could impact customer spending and supply chains.
- Legal & Governance: The company converted to a Nevada corporation, introducing specific anti-takeover provisions and exclusive forum clauses for litigation.
- Market Risk: A 100 basis point change in interest rates could impact the market value of investments by approximately $8.9 million.
Investor Verification Checklist
- Verify the sustainability of profitability excluding the $30.3 million arbitration gain.
- Monitor the trend in gross margin, which declined to 75% due to rising cloud and cellular costs.
- Review the Remaining Performance Obligations (RPO) of $3.99 billion to assess future revenue visibility.
- Assess the impact of the Nevada corporate conversion on shareholder rights and governance.
- Track stock-based compensation expenses, which remain significant at $77.5 million for the quarter.