- Revenue Growth: 26% YoY increase to $592 million driven by 46 systems in deployment.
- Adjusted EBITDA: Surged to $45 million, up significantly compared to prior-year period.
- Next-Gen Storage System: Reduces on-site assembly parts by 90% with installations starting mid-2026.
- Backlog Expansion: Maintained at $22.4 billion, reflecting strong project pipeline.
- ASR Revenue Contribution: Generated high single-digit percentage of total revenue in Q3, expected to sustain for next 2 quarters.
Next-Generation Storage System to Drive Future Growth
The company announced a major product milestone, the debut of its next-generation storage structure, which substantially increases storage density and introduces preassembled precision manufactured subcomponents, reducing on-site assembly parts by over 90%. This new system is expected to unlock meaningful opportunities, enabling more efficient deployments and supporting a higher margin profile. However, the transition to this new system may impact sequential growth in the fourth quarter and the first half of 2026.
Valuation Metrics
With a P/E Ratio of -866.73 and P/S Ratio of 85.65, the market is pricing in high growth expectations from Symbotic. The company's ROIC and ROE are currently negative, but the transition to the next-generation storage system is expected to drive improvement in these metrics. The company's free cash flow yield is 0.18%, indicating that the market is not pricing in significant cash flow generation in the near term.
Q&A Highlights
In the Q&A session, management addressed questions on the next-generation storage technology, including the reduction in installation time, retrofit opportunities, and the potential for steeper growth in the future. They also discussed the increased sales force, backlog, and expectations for new customers. Notably, Carol Hibbard mentioned that the company expects software gross margins to remain above 70%, driven by scale and the addition of new acceptances.
Guidance and Outlook
The company provided guidance on systems gross margin, expecting it to remain flat sequentially from the third to fourth quarter. Carol Hibbard also mentioned that the first half of 2026 should have a similar quarterly revenue level to what they're guiding for in the September quarter. Analysts are estimating revenue growth of 25.0% for next year, but the company's actual EPS came out at -$0.05, relative to estimates at $0.04739.