Samsara reports 37% revenue growth in Q2 fiscal 2025

middleman (IOT 0.23%)a leading provider of Internet of Things (IoT) solutions, reported fiscal second quarter 2025 earnings on September 5 that beat expectations. For the quarter ended Aug. 3, revenue rose 37% year over year to $300.2 million, beating management’s guidance range of $288 million to $290 million. Samsara’s non-GAAP operating margin was 6% — much better than the negative 2% margin it had expected. Non-GAAP net income was $0.05 per share, while the guidance range was no higher than $0.01 per share.

Source: Management guidance from Samsara’s Q1 2025 earnings report, released June 6.

Understanding Samsara

Samsara specializes in IoT solutions that connect physical operations to the cloud through software and hardware. Its main markets include transport, logistics, construction and public services. Samsara focuses on providing actionable insights on data to improve operational efficiency, safety and sustainability outcomes for its customers.

Recently, it has focused on expanding its customer base, improving its differentiated platform, and leveraging AI and advanced technologies. The company aims to provide its customers with strong ROI while fostering a robust ecosystem of partners for continued growth and innovation.

Quarterly highlights

Samsara reported significant growth in its customer base. The company now has 2,133 customers providing it with annual recurring revenue (ARR) of more than $100,000, a 41% increase from 1,511 the previous year. This notable growth reflects Samsara’s focus on targeting large enterprises.

The platform’s differentiation and integration capabilities were instrumental in helping the company grow its non-GAAP gross margin by 2 percentage points year-over-year to 77%. This improvement demonstrates the value of Samsara’s Connected Operations Cloud, which now processes more than 10 trillion data points annually, improving its operational insights.

Samsara’s GAAP operating loss decreased to $58.2 million from $69.8 million and GAAP gross profit increased to $226.8 million from $160.4 million, reflecting increased cost management and delivery of customer value .

Revenue from large customers and sectors early in the digital adoption process were crucial drivers of the company’s results. Samsara has leveraged its extensive partnership ecosystem and strong innovation to maintain its competitive edge. Its ever-improving financial and operational metrics hint at robust and sustainable growth.

Non-GAAP operating income was $17.6 million, compared to an operating loss of $5.9 million in the prior year period. Adjusted free cash flow increased to $13.1 million from $4.7 million. Inventory levels rose to $38.6 million, compared to $22.2 million in February 2024, likely to meet growing demand for connected devices.

Looking ahead

For the fiscal third quarter, Samsara’s management anticipates revenue between $309 million and $311 million, with an estimated non-GAAP operating margin of 4 percent. Non-GAAP net income per share is expected to be in the range of $0.03 to $0.04. These forecasts reflect confidence in sustained growth and improved operational efficiency.

For fiscal 2025, revenue guidance was raised to between $1.224 billion and $1.228 billion. Non-GAAP net income per share is now forecast to be between $0.16 and $0.18, an increase from the previous guidance range of $0.13 to $0.15.