Executive Summary
Samsara reported a third quarter of durable growth at scale for FY2025, underscored by a 35% year-over-year rise in ARR to $1.35 billion and 36% revenue growth to $322 million. The company also achieved a quarterly record in non-GAAP profitability metrics, including an 11% non-GAAP operating margin and a 10% free cash flow margin, alongside 78% gross margin. Management attributed the strength to large multi-product deals, a robust upsell engine within an expanding installed base, and continued momentum in international geographies. The quarterly performance supports an elevated growth narrative powered by Samsara Intelligence (AI-driven offerings) and a broadening product footprint across both vehicle-based and non-vehicle applications.
Management reinforced a constructive view on AI-enabled ROI, international expansion, and product execution as the catalysts for durable growth, while acknowledging the ongoing path to GAAP profitability and the need for disciplined go-to-market investments to sustain the healthy mix of new logos and expansions. The FY2025 guidance was raised across all key metrics, signaling confidence in continued execution through Q4 and into FY2026, albeit with macro and execution risks to monitor.
Key Performance Indicators
QoQ: 312.05% | YoY:324.32%
Key Insights
Revenue: $322.0M (+36% YoY). ARR: $1.350B (+35% YoY). Gross margin: 78% (non-GAAP 78% per call; GAAP gross margin ~76.4%). Non-GAAP operating margin: 11%. Free cash flow margin: 10%. Net income: -$37.8M; EPS: $0.19 (GAAP). Weighted shares: ~559M. Operating cash flow: $36.0M; Free cash flow: $31.2M. Net retention rate (core): 115%; Net retention rate (large): 120%. Large ARR customers (>$100k ARR): 2,303 (38% YoY growth), with 170 net new $100k+ ARR customers; 54% of ARR from $100k+ customers....
Financial Highlights
Revenue: $322.0M (+36% YoY). ARR: $1.350B (+35% YoY). Gross margin: 78% (non-GAAP 78% per call; GAAP gross margin ~76.4%). Non-GAAP operating margin: 11%. Free cash flow margin: 10%. Net income: -$37.8M; EPS: $0.19 (GAAP). Weighted shares: ~559M. Operating cash flow: $36.0M; Free cash flow: $31.2M. Net retention rate (core): 115%; Net retention rate (large): 120%. Large ARR customers (>$100k ARR): 2,303 (38% YoY growth), with 170 net new $100k+ ARR customers; 54% of ARR from $100k+ customers. International contribution: 17% of net new ACV in Q3. New logos and multi-product adoption highlighted (78 of 170 new $100k+ ARR customers were new; 9 of top 10 new customers signed with multiple products). Q3 ARR end: $1.35B; Q3 revenue growth drivers included large enterprise focus and balanced mix of landing new logos and expanding existing relationships. Guidance: FY2025 revenue guidance raised to $1.237–$1.239B; Q4 revenue implied $334–$336M; non-GAAP operating margin ~7%; non-GAAP EPS $0.22–$0.23.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
321.98M |
35.55% |
7.25% |
| Gross Profit |
245.95M |
39.79% |
8.43% |
| Operating Income |
-47.37M |
13.51% |
18.60% |
| Net Income |
-37.81M |
16.97% |
23.79% |
| EPS |
0.19 |
324.32% |
312.05% |
Key Financial Ratios
operatingProfitMargin
-14.7%
operatingCashFlowPerShare
$0.06
freeCashFlowPerShare
$0.06
priceEarningsRatio
-170.85
Management Commentary
- Strategy and AI: Samsara Intelligence and its components (Samsara Assistant and Intelligent Experiences) are in beta and expected to become generally available after customer feedback; management framed AI as a core driver of safety, maintenance, and efficiency, with a data set spanning 10T data points and 70B miles driven annually. - International and vertical expansion: Management highlighted Europe and Mexico as the primary international growth engines, with new features like Low Bridge Strikes and EBPMS tailored for local markets. Construction, public sector, and healthcare/logistics verticals were cited as high-contribution areas for net new ACV. - Growth quality and margin leverage: The company emphasized durable growth with high ARR retention and expanding multi-product adoption, while delivering record gross margins and operating margins on a non-GAAP basis, signaling operating leverage as scale increases. - Customer economics and ROI: IDC-based ROI commentary indicated $2M annual savings per customer on average, reinforcing the ROI proposition and payback periods in months. - Guidance and risk: Q4 is seasonally strongest; a one-week difference in calendar Q4 is expected to shave roughly 3 percentage points of YoY revenue growth in FY2025; management will provide more color on fiscal 2026 in the next earnings call.
Samsara Intelligence is trained on our expansive data set, which has great scale and breadth. We now process more than 10 trillion data points and 70 billion miles driven annually.
— Sanjit Biswas
We delivered quarterly records across all key non-GAAP profitability metrics, including a 78% gross margin, and 11% operating margin, and a 10% free cash flow margin.
— Dominic Phillips
Forward Guidance
Samsara raised FY2025 revenue guidance to $1.237–$1.239B, implying ~35% YoY growth, with Q4 revenue guidance of $334–$336M. Non-GAAP operating margin targeted around 7% and non-GAAP EPS between $0.22–$0.23. The company signaled ongoing investments in go-to-market resources and R&D to sustain multi-product land-and-expand momentum, especially in high-velocity international markets and with AI-enabled product suites. achievability considerations include: (1) continued adoption of Samsara Intelligence offerings (beta to GAAP pricing and packaging decisions), (2) sustained win rates in large enterprise deals with multi-product packages, (3) favorable ROI dynamics driving expansions, and (4) execution risk from macro headwinds and potential policy/regulatory shifts impacting international markets. Key monitorables for investors include: velocity of AI monetization, pace of product feature adoption in non-vehicle segments, international go-to-market efficiency, and the trajectory of gross and operating margins as the company optimizes GTM costs.