Smith Micro Software Inc. Common Stock (SMSI)

FairStock Score: 37/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Looking at Smith Micro through a Graham-and-Buffett lens, I start with business quality. It sells niche software to wireless and cable carriers, but revenue tells the story: in fiscal 2023, revenue was $40.9M; in fiscal 2024, $20.6M; in fiscal 2025, $17.4M. That is not a moat, it is erosion. Net losses persisted: fiscal 2023 -$24.4M, fiscal 2024 -$48.7M, fiscal 2025 -$29.3M. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $4.3M and net income -$2.6M. Trailing free cash flow is -$9.1M against a $13.4M market cap at the 2026-10-13 close, so FairStock's FCF yield is -67.7%. That is a business consuming capital, not compounding it. The debt-to-equity ratio of 0.26 does not look terrifying, and FairStock's P/B of 0.77 means price is below stated book. But ROE is -78.66% and ROCE is -32.88%, so book value is being burned. FairStock's Altman Z-score is -20.26, deep distress territory, and EV/EBITDA of 38.68 is not cheap if EBITDA is low. Piotroski is 5/9, middling. The FairStock score is 37/100, and the Lynch category is none because it lost money in each of the last four years. Price may appear low versus book, but without profits or positive cash flow, there is no reliable margin of safety. I would want evidence of revenue stabilization, cost cuts, and cash generation before calling this anything but speculative.

In plain English: Smith Micro Software sells software to phone and cable companies to help families manage devices and stay safe online. The business looks weak: revenue has shrunk, it has been losing money, and it burns cash. At $2.40, the shares look cheap compared with the company's accounting value, but the continuing losses make that cheapness uncertain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer