Symbotic Inc.
For the period ended Mar 29, 2025. Filed May 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 29, 2025 · Filed May 7, 2025
SYM$36.82+5.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-12-28; filed 2025-02-05.
0001837240-25-000044
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-29; filed 2025-05-07.
0001837240-25-000152
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 91 previous paragraphs and 110 current paragraphs.
61 unchanged; 27 reworded; 16 added; 3 removed; 0 previous and 6 current paragraphs rearranged.
Tables are not compared: 16 previous and 24 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
The increase in Software Maintenance and Support revenue is due to 37 Operational Systems which are under Software Maintenance and Support contracts for the six months ended March 29, 2025, as compared to 18 Operational Systems which are under Software Maintenance and Support contracts for the six months ended March 30, 2024.
Current report
The increase in Operation Services gross profit for the three months ended March 29, 2025, as compared to the three months ended March 30, 2024, is driven by an increase in additional training services provided to our customers and services related to the ASR Acquisition.
Current report
Systems gross profit increased $88.7 million during the six months ended March 29, 2025, as compared to the six months ended March 30, 2024. The increase in Systems gross profit is primarily driven by 46 Systems in Deployment during the six months ended March 29, 2025, as compared to 37 Systems in Deployment during the six months ended March 30, 2024.
Current report
Employee-related costs increased for the three months ended March 29, 2025, as compared to the three months ended March 30, 2024. The primary driver in the increase to employee-related costs for the three months ended March 29, 2025, as compared to the three months ended March 30, 2024, is from the increase to payroll and payroll-related costs to support the growth within our employee base. There was also an increase in the cost for contractors and consultants for the three months ended March 29, 2025, as compared to the three months ended March 30, 2024, which we use to support our growth.
Current report
The increase in research and development expenses for the six months ended March 29, 2025, as compared to the six months ended March 30, 2024, is due to the following:
Current report
Employee-related costs increased for the six months ended March 29, 2025, as compared to the six months ended March 30, 2024. The primary driver for the increase in employee-related costs for the six months ended March 29, 2025, as compared to the six months ended March 30, 2024, is from the increase to payroll and payroll-related costs to support the growth within our employee base. There was also an increase in the cost for contractors and consultants for the six months ended March 29, 2025, as compared to the six months ended March 30, 2024, which we use to support our growth.
Current report
Prototyping-related costs, allocated overhead expenses, and other expenses increased for the six months ended March 29, 2025, as compared to the six months ended March 30, 2024, primarily from an increase in prototype expenses as we implement efforts to expand our current product offerings, as well as an increase in amortization expense attributable to the intangible assets we acquired through our asset and business combination transactions.
Current report
The increase in selling, general, and administrative expenses for the six months ended March 29, 2025, as compared to the six months ended March 30, 2024, is due to the following:
Current report
The increase in other income, net for the six months ended March 29, 2025, as compared to the six months ended March 30, 2024, was due to higher interest earned on invested cash balances and marketable securities as well as a higher cash balance.
Current report
The increase in income tax benefit for the three months ended March 29, 2025, as compared to the three months ended March 30, 2024, is attributable to the expense related to current state income taxes offset by the partial release of the valuation allowance in connection with the ASR Acquisition.
Current report
The increase in income tax benefit for the six months ended March 29, 2025, as compared to the six months ended March 30, 2024, is attributable to the expense related to current state income taxes offset by the partial release of the valuation allowance in connection with the ASR Acquisition.
Current report
•Business transformation costs– Business transformation fees represent consultancy fees incurred for specific business initiatives that do not reflect the cost of normal business operations.
Current report
•Fair value adjustments on strategic investments– Fair value adjustments on strategic investments primarily consist of the gain or loss on strategic investments, which includes recurring fair value adjustments which are adjusted for observable price changes and any potential impairments. See Note 11, Fair Value Measures, included in this report for additional information on our strategic investment activity. We exclude fair value adjustments on strategic investments given the volatility in ongoing adjustments to the valuation of these strategic investments and because such adjustments are unrelated to the operating performance of our business.
Current report
•Restructuring charges – Restructuring charges represent the charges incurred associated with certain actions to restructure parts of the Company within the U.S. and Canada. These charges include severance and related expenses for workforce reductions, lower of cost and net realizable value adjustments to inventory and long-lived assets that will no longer be used in operations, and termination fees for any contracts cancelled as part of these programs. We exclude these items from our non-GAAP financial measures when evaluating our continuing business performance as such items vary significantly based on the magnitude of the restructuring action and do not reflect future expected operating expenses. In addition, these charges do not necessarily provide meaningful insight into the fundamentals of current or past operations of our business.
Current report
•Equity financing transaction costs – Equity financing transaction costs represents the costs incurred, including for legal, professional fees for accountants, transaction fees, advisory fees, due diligence costs, and certain other professional fees that are directly related to an equity financing transaction.
Current report
During the six months ended March 29, 2025, we received proceeds of $3.2 million from the issuance of common stock under the ESPP, which was offset by payments for taxes related to net share settlement of stock-based compensation awards of $3.0 million. No other significant financing activities occurred during the six months ended March 29, 2025.
Removed paragraphs (3)
Previous report
Employee-related costs decreased primarily as a result of a decrease in our stock-based compensation expense for the three months ended December 28, 2024, as compared to the three months ended December 30, 2023.
Previous report
The decrease in income tax expense for the three months ended December 28, 2024, as compared to the three months ended December 30, 2023, is attributable to a decrease in our international tax pretax book profit and corresponding impacts on our international tax expense.
Previous report
During the three months ended December 28, 2024, we paid taxes of $3.0 million related to net share settlement of RSUs and we also paid $0.9 million in distributions to or on behalf of Symbotic Holdings partners to fund all or part of their tax obligations with respect to the taxable income of Symbotic Holdings that is allocated to them.
Reworded paragraphs (27)
Previous wording
We generate revenue through our design and installation of supply chain automation systems to automate customers’ depalletizing, storage, selection, and palletization warehousing processes (“System”). The Systems have both a hardware component and an essential software component that enables the Systems to be programmed to operate within specific customer environments. We enter into contracts with customers that can include various combinations of services to design and install the Systems. These services are generally distinct and accounted for as separate performance obligations. As a result, each customer contract may contain multiple performance obligations. We determine whether performance obligations are distinct based on whether the customer can benefit from the product or service on its own or together with other resources that are readily available and whether our commitment to provide the services to the customer is separately identifiable from other promises in the contract.
Current wording
We generate revenue through our design and installation of supply chain automation systems to automate customers’ depalletizing, storage, selection, and palletization warehousing processes (“System”). The Systems have both a hardware component and an essential software component that enables the Systems to be programmed to operate within specific customer environments. We enter into contracts with customers that can include various combinations of services to design and install the Systems. These services are generally distinct and accounted for as separate performance obligations. As a result, each customer contract may contain multiple performance obligations. We determine whether performance obligations are distinct based on whether the customer can benefit from the good or service on its own or together with other resources that are readily available and whether our commitment to provide the goods or services to the customer is separately identifiable from other promises in the contract.
Previous wording
Systems: We design, assemble, and install Systems and perform configuration of essential software. Systems include the delivery of hardware and an essential software component, sold as either a perpetual or term-based on-premise license, that automate our customers’ depalletizing, storage, selection, and palletization warehousing processes. The hardware and essential software are each not capable of being distinct because our customers cannot benefit from the hardware or software on their own. Accordingly, they are treated as a single performance obligation. Fees for Systems are typically either fixed or cost-plus fixed fee amounts that are due based on the achievement of a variety of milestones beginning at contract inception through final acceptance. The substantial majority of our software is sold as a perpetual on-premise license, however, we do sell an immaterial amount of term-based on-premise licenses.
Current wording
Systems: We design, assemble, and install Systems and perform configuration of essential software. Systems include the delivery of hardware and an essential software component, sold as either a perpetual or term-based on-premise license, that automate our customers’ depalletizing, storage, selection, and palletization warehousing processes. The hardware and essential software are each not capable of being distinct because our customers cannot benefit from the hardware or software on their own. Accordingly, they are treated as a single performance obligation. Fees for Systems are typically either cost-plus fixed fee amounts, fixed, or in certain cases, subject to a capped cost amount that are due based on the achievement of a variety of milestones beginning at contract inception through final acceptance. The substantial majority of our software is sold as a perpetual on-premise license, however, we do sell an immaterial amount of term-based on-premise licenses.
Previous wording
We are subject to U.S. federal income taxes, in addition to state and local income taxes, with respect to our allocable share of any taxable income or loss of Symbotic Holdings. We also have foreign subsidiaries which are subject to income tax in their local jurisdictions.
Current wording
We are subject to U.S. federal income taxes, in addition to state and local income taxes, with respect to our allocable share of any taxable income or loss of Symbotic Holdings LLC. We also have foreign subsidiaries which are subject to income tax in their local jurisdictions.
Previous wording
Results of Operations for the Three Months Ended December 28, 2024 and December 30, 2023
Current wording
Results of Operations for the Three and Six Months Ended March 29, 2025 and March 30, 2024
Previous wording
Three Months Ended December 28, 2024 Compared to the Three Months Ended December 30, 2023
Current wording
Three and Six Months Ended March 29, 2025 Compared to the Three and Six Months Ended March 30, 2024
Previous wording
Systems revenue increased during the three months ended December 28, 2024 as compared to the three months ended December 30, 2023 due to there being 44 Systems in Deployment during the fiscal quarter ending December 28, 2024 as compared to 37 Systems in Deployment during the same quarter of fiscal 2024. The increase in Deployments is primarily due to the continued build out of our Systems included in the Walmart MAA. Pursuant to the MAA, we are installing and implementing our System within all of Walmart’s 42 regional distribution centers. We expect the MAA to continue to generate Systems revenue as we install and implement the Systems at the remaining regional distribution centers through fiscal year 2029.
Current wording
Systems revenue increased during the three months ended March 29, 2025, as compared to the three months ended March 30, 2024, due to there being 46 Systems in Deployment during the fiscal quarter ending March 29, 2025, as compared to 37 Systems in Deployment during the same quarter of fiscal 2024. The increase in Deployments is primarily due to the continued build out of our Systems pursuant to the terms of the MAA and includes the addition of the 2025 MAA. Pursuant to the MAA, we are installing and implementing our System within all of Walmart’s 42 regional distribution centers. We expect the MAA to continue to generate Systems revenue as we install and implement the Systems at the remaining regional distribution centers through fiscal year 2029.
Previous wording
The increase in Software Maintenance and Support revenue is due to 29 Operational Systems which are under Software Maintenance and Support contracts for the three months ended December 28, 2024, as compared to 15 Operational Systems which are under Software Maintenance and Support contracts for the three months ended December 30, 2023.
Current wording
The increase in Software Maintenance and Support revenue is due to 37 Operational Systems which are under Software Maintenance and Support contracts for the three months ended March 29, 2025, as compared to 18 Operational Systems which are under Software Maintenance and Support contracts for the three months ended March 30, 2024.
Previous wording
The increase in Operation Services revenue is attributable to an increase in Operational Systems where we are performing Operations Services for the three months ended December 28, 2024, as compared to the three months ended December 30, 2023. As we continue to increase the number of Operational Systems, an increase in the number of Operation Services contracts is expected.
Current wording
The increase in Operation Services revenue is attributable to an increase in Operational Systems where we are performing Operation Services for the three months ended March 29, 2025, as compared to the three months ended March 30, 2024. As we continue to increase the number of Operational Systems, an increase in the number of Operation Services contracts is expected. The increase in Operation Services revenue for the three months ended March 29, 2025, as compared to the three months ended March 30, 2024, is also attributable to an increase in training services provided to our customers in connection with the increase in the number of Operational Systems.
Previous wording
Systems gross profit increased $18.5 million for the three months ended December 28, 2024, as compared to the three months ended December 30, 2023. The increase in Systems gross profit is primarily driven by 44 Systems in Deployment during the fiscal quarter ended December 28, 2024, as compared to 37 Systems in Deployment during the fiscal quarter ended December 30, 2023.
Current wording
Systems gross profit increased $70.2 million for the three months ended March 29, 2025, as compared to the three months ended March 30, 2024. The increase in Systems gross profit is primarily driven by 46 Systems in Deployment during the three months ended March 29, 2025, as compared to 37 Systems in Deployment during the three months ended March 30, 2024.
Previous wording
The decrease in Operation Services gross profit for the three months ended December 28, 2024, as compared to the three months ended December 30, 2023, is driven by increased cost due to additional Operation Services costs needed at certain of our customer sites.
Current wording
The decrease in Operation Services gross profit for the six months ended March 29, 2025, as compared to the six months ended March 30, 2024, is driven by an increase in Operation Services costs at certain of our customer sites, partially offset by additional training services provided to our customers and services related to the ASR Acquisition.
Previous wording
The increase in prototype-related costs, allocated overhead expenses, and other during the three months ended December 28, 2024, as compared to the three months ended December 30, 2023, is primarily due to an increase in prototype expenses as we implement efforts to expand on our current product offerings.
Current wording
Prototyping-related costs, allocated overhead expenses, and other expenses increased for the three months ended March 29, 2025, as compared to the three months ended March 30, 2024, primarily from an increase in prototype expenses as we implement efforts to expand our current product offerings, as well as an increase in amortization expense attributable to the intangible assets we acquired through our asset and business combination transactions.
Previous wording
Employee-related costs increased primarily as a result of our full-time and contracted employee headcount growth within our selling, general, and administrative functions. We increased our headcount primarily to support our rapid acceleration of System Deployments and business transformation. We incurred incremental costs related to building both shorter-term as well as permanent processes and infrastructure to ramp partnerships and operations.
Current wording
Employee-related costs increased in the three months ended March 29, 2025, as compared to the three months ended March 30, 2024, primarily as a result of our full-time employee and contractor headcount growth within our selling, general, and administrative functions. We increased our headcount primarily to support our rapid acceleration of System Deployments and business transformation. We incurred incremental costs related to building both shorter-term as well as permanent processes and infrastructure to ramp partnerships and operations.
Previous wording
Allocated overhead and other expenses increased primarily due to an increase in information technology related costs to support growth within our employee base and infrastructure, as well as an increase in audit, tax, and legal expenses as compared to the prior year. The increase in audit, tax, and legal expenses for the three months ended December 28, 2024, as compared to the three months ended December 30, 2023, is primarily attributable to increased professional services fees related to strategic acquisitions as well as increased professional services fees related to our internal controls remediation.
Current wording
Allocated overhead and other expenses increased in the three months ended March 29, 2025, as compared to the three months ended March 30, 2024, primarily due to an increase in information technology related costs to support growth within our employee base and infrastructure, as well as an increase in audit, tax, and legal expenses. The increase in audit, tax, and legal expenses for the three months ended March 29, 2025, as compared to the three months ended March 30, 2024, is primarily attributable to increased professional services fees related to strategic acquisitions and our internal controls remediation.
Previous wording
The increase in other income, net for the three months ended December 28, 2024, as compared to the three months ended December 30, 2023, is due to higher interest earned on invested cash balances as a result of increased interest rates.
Current wording
The increase in other income, net for the three months ended March 29, 2025, as compared to the three months ended March 30, 2024, was due to higher interest earned on invested cash balances and marketable securities as well as a higher cash balance.
Previous wording
We consider Adjusted EBITDA to be an important indicator of the operational strength and performance of our business and a good measure of our historical operating trends. Adjusted EBITDA eliminates items that we do not consider to be part of our core operations. We define Adjusted EBITDA as GAAP net loss excluding the following items: interest income; income taxes; depreciation and amortization of tangible and intangible assets; stock-based compensation; joint venture formation fees; business combination transaction expenses; internal control remediation; equity method investment; and other infrequent items that may arise from time to time.
Current wording
We consider Adjusted EBITDA to be an important indicator of the operational strength and performance of our business and a good measure of our historical operating trends. Adjusted EBITDA eliminates items that we do not consider to be part of our core operations. We define Adjusted EBITDA as GAAP net loss excluding the following items: interest income; income taxes; depreciation and amortization of tangible and intangible assets; stock-based compensation; business combination transaction expenses; equity method investment; internal control remediation; business transformation costs; fair value adjustments on strategic investments; restructuring charges; joint venture formation fees; equity financing transaction costs; and other infrequent items that may arise from time to time.
Previous wording
•Stock-based compensation – Although stock-based compensation is an important aspect of the compensation paid to our employees, the grant date fair value varies based on the derived stock price at the time of grant, varying valuation methodologies, subjective assumptions, and the variety of award types. This makes the comparison of our current financial results to previous and future periods difficult to interpret; therefore, we believe it is useful to exclude stock-based compensation from our non-GAAP financial measures in order to highlight the performance of our business and to be consistent with the way many investors evaluate our performance and compare our operating results to peer companies.
Current wording
•Stock-based compensation – Although stock-based compensation is an important aspect of the compensation paid to our employees, the grant date fair value varies based on the derived stock price at the time of grant, varying valuation methodologies, subjective assumptions, and the variety of award types. This makes the comparison of our current financial results to previous and future periods difficult to interpret; therefore, we believe it is useful to exclude stock-based compensation from our non-GAAP financial measures in order to highlight the performance of our business and to be consistent with the way many investors evaluate our performance and compare our operating results to peer companies. Our stock-based compensation non-GAAP financial measures exclusion includes non-cash stock-based compensation expense and payroll taxes related to stock-based compensation awards.
Previous wording
The following table reconciles GAAP net loss to Adjusted EBITDA for the three months ended December 28, 2024 and December 30, 2023 (in thousands):
Current wording
The following table reconciles GAAP net loss to Adjusted EBITDA for the three and six months ended March 29, 2025 and March 30, 2024 (in thousands):
Previous wording
The following table shows net cash provided by (used in) operating activities, net cash provided by (used in) investing activities, and net cash provided by (used in) financing activities for the three months ended December 28, 2024 and December 30, 2023:
Current wording
The following table shows net cash provided by (used in) operating activities, net cash provided by (used in) investing activities, and net cash provided by (used in) financing activities for the six months ended March 29, 2025 and March 30, 2024:
Previous wording
Net cash provided by operating activities was $205.0 million during the three months ended December 28, 2024. Net cash provided by operating activities was primarily due to our net loss of $18.5 million adjusted for non-cash items of $35.3 million, primarily consisting of $7.6 million depreciation and amortization and $26.8 million stock-based compensation, offset by cash provided by operating assets and liabilities of $188.3 million. Cash provided by operating assets and liabilities of $188.3 million was primarily driven by net working capital changes, including timing of cash payments to vendors and cash receipts from customers, an increase in inventory purchases to meet our installation timeline for our customers’ upcoming System installations in connection with the Walmart MAA and other customer contracts, as well as an increase in deferred revenue resulting from an increase in the number of active System Deployments.
Current wording
Net cash provided by operating activities was $474.6 million during the six months ended March 29, 2025. Net cash provided by operating activities was primarily due to our net loss of $40.0 million adjusted for non-cash items of $90.8 million, primarily consisting of $19.9 million depreciation and amortization, $70.1 million stock-based compensation, and $4.1 million equity in net loss from equity method investment, in addition to cash provided by operating assets and liabilities of $423.8 million. Cash used in operating assets and liabilities of $423.8 million was primarily driven by net working capital changes, including the timing of cash payments to vendors and cash receipts from customers.
Previous wording
Net cash used in operating activities was $30.2 million during the three months ended December 30, 2023. Net cash used in operating activities was primarily due to our net loss of $19.1 million adjusted for non-cash items of $32.8 million, primarily consisting of $3.2 million depreciation and amortization and $29.5 million stock-based compensation, in addition to cash used in operating assets and liabilities of $43.8 million. Cash used in operating assets and liabilities of $43.8 million was primarily driven by net working capital changes, including the timing of cash payments to vendors and cash receipts from customers.
Current wording
Net cash used in operating activities was $9.1 million during the six months ended March 30, 2024. Net cash used in operating activities was primarily due to our net loss of $73.9 million adjusted for non-cash items of $89.4 million, primarily consisting of $6.4 million depreciation and amortization, $57.5 million stock-based compensation, and $34.3 million provision for excess and obsolete inventory, in addition to cash used in operating assets and liabilities of $24.6 million. Cash used in operating assets and liabilities of $24.6 million was primarily driven by net working capital changes, including the timing of cash payments to vendors and cash receipts from customers.
Previous wording
Our investing activities have consisted primarily of property and equipment purchases, capitalization of internal use software development costs, purchases of marketable securities, and proceeds from maturities of marketable securities.
Current wording
Our investing activities have consisted primarily of property and equipment purchases, capitalization of internal use software development costs, and acquisitions of strategic investments.
Previous wording
Net cash and cash equivalents used in investing activities during the three months ended December 28, 2024 consisted of $7.4 million of purchased property and equipment and $18.0 million related to acquisitions of strategic investments, which includes our investment in GreenBox.
Current wording
Net cash and cash equivalents used in investing activities during the six months ended March 29, 2025 is related to $27.9 million in purchases of property and equipment, purchases of strategic investment of $18.0 million, and cash paid for the acquisition of ASR of $200.0 million.
Previous wording
Net cash and cash equivalents provided by investing activities during the three months ended December 30, 2023 is primarily driven by $150.0 million in proceeds upon the maturity of certain U.S. Treasury securities, offset by purchases of U.S. Treasury securities of $48.3 million and purchases of property and equipment of $2.2 million.
Current wording
Net cash and cash equivalents provided by investing activities during the six months ended March 30, 2024 is primarily driven by $290.0 million in proceeds upon the maturity of certain U.S. Treasury securities, offset by purchases of U.S. Treasury securities of $48.7 million.
Previous wording
Our financing activities typically consist of payments and proceeds related to our equity incentive plans for both RSUs and ESPP, and also include proceeds from the exercise of the vested warrants issued to Walmart.
Current wording
Our financing activities typically consist of payments and proceeds related to our equity incentive plans for both RSUs and ESPP, and also include proceeds from the exercise of the vested warrants issued to Walmart as well as proceeds from equity financing transactions.
Previous wording
During the three months ended December 30, 2023, we received cash of $158.7 million upon the gross exercise of Walmart’s vested warrant, which occurred in December 2023. No other significant financing activities occurred during the three months ended December 30, 2023.
Current wording
During the six months ended March 30, 2024, we received cash of $158.7 million upon the gross exercise of Walmart’s vested warrant units, which occurred in December 2023. We additionally received proceeds of $258.0 million in relation to issuance of Class A common stock upon completion of our equity financing transaction in March 2024. No other significant financing activities occurred during the six months ended March 30, 2024.
Previous wording
Our cash flows from operations along with equity infusions have historically been sufficient to fund our operating activities and other cash requirements. As of December 28, 2024, we have a cash and cash equivalents balance of $903.0 million. Our cash requirements for the three months ended December 28, 2024 were primarily related to inventory purchases in order to deliver our Systems to our customers in an orderly manner in line with our installation timeline, and acquisitions of strategic investments to expand our investment profile.
Current wording
Our cash flows from operations along with equity infusions have historically been sufficient to fund our operating activities and other cash requirements. As of March 29, 2025, we had a cash and cash equivalents balance of $954.9 million. Our cash requirements for the six months ended March 29, 2025 were primarily related to inventory purchases in order to deliver our Systems to our customers in an orderly manner in line with our installation timeline, and acquisitions of strategic investments to expand our investment profile.
Previous wording
There have been no significant changes in our critical accounting policies and estimates during the three months ended December 28, 2024 as compared to the critical accounting policies and estimates disclosed in the audited consolidated financial statements and related notes thereto as of and for the year ended September 28, 2024, which are included within the Annual Report on Form 10-K filed with the SEC on December 4, 2024.
Current wording
There have been no significant changes in our critical accounting policies and estimates during the six months ended March 29, 2025, as compared to the critical accounting policies and estimates disclosed in the audited consolidated financial statements and related notes thereto as of and for the year ended September 28, 2024, which are included within the Annual Report on Form 10-K filed with the SEC on December 4, 2024.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
Systems revenue increased during the six months ended March 29, 2025, as compared to the six months ended March 30, 2024, due to there being 46 System in Deployment during the fiscal quarter ending March 29, 2025, as compared to 37 Systems in Deployment during the same quarter of fiscal 2024. The increase in Deployments is primarily due to the continued build out of our Systems per the term of the MAA and includes the addition of the 2025 MAA. Pursuant to the MAA, we are installing and implementing our System within all of Walmart’s 42 regional distribution centers. We expect the MAA to continue to generate Systems revenue as we install and implement the Systems at the remaining regional distribution centers through fiscal year 2029.
Current report — wording carried from elsewhere
The increase in Operation Services revenue is attributable to an increase in Operational Systems where we are performing Operation Services for the six months ended March 29, 2025, as compared to the six months ended March 30, 2024. As we continue to increase the number of Operational Systems, an increase in the number of Operation Services contracts is expected. The increase in Operation Services revenue for the six months ended March 29, 2025, as compared to the six months ended March 30, 2024, is also attributable to an increase in training services provided to our customers in connection with the increase in the number of Operational Systems.
Current report — wording carried from elsewhere
The following table sets forth our gross profit for the six months ended March 29, 2025 and March 30, 2024:
Current report — wording carried from elsewhere
The increase in Software Maintenance and Support gross profit is driven by the revenue from the additional Operational Systems which are under Software Maintenance and Support contracts for the six months ended March 29, 2025, as compared to the six months ended March 30, 2024, while costs to perform our Maintenance and Support Services remained relatively flat.
Current report — wording carried from elsewhere
Employee-related costs increased in the six months ended March 29, 2025, as compared to the six months ended March 30, 2024, primarily as a result of our full-time employee and contractor headcount growth within our selling, general, and administrative functions. We increased our headcount primarily to support our rapid acceleration of System Deployments and business transformation. We incurred incremental costs related to building both shorter-term as well as permanent processes and infrastructure to ramp partnerships and operations.
Current report — wording carried from elsewhere
Allocated overhead and other expenses increased in the six months ended March 29, 2025, as compared to the six months ended March 30, 2024, primarily due to an increase in information technology related costs to support growth within our employee base and infrastructure, as well as an increase in audit, tax, and legal expenses. The increase in audit, tax, and legal expenses for the six months ended March 29, 2025, as compared to the six months ended March 30, 2024, is primarily attributable to increased professional services fees related to strategic acquisitions and our internal controls remediation.