Symbotic Inc.
For the period ended Dec 27, 2025. Filed Feb 4, 2026.
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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.
Dec 27, 2025 · Filed Feb 4, 2026
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 2025-06-28; filed 2025-08-06.
0001837240-25-000263
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-12-27; filed 2026-02-04.
0001837240-26-000009
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 117 previous paragraphs and 105 current paragraphs.
69 unchanged; 27 reworded; 7 added; 13 removed; 8 previous and 2 current paragraphs rearranged.
Tables are not compared: 28 previous and 19 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 (7)
Current report
Our robotic based automation systems, which include hardware and essential software, move, store and sort cases and eaches in warehouses. Our systems are operational in a number of the world’s largest retailers, including Walmart, wholesale distributors, including C&S Wholesale Grocers, and are being deployed in GreenBox Systems LLC, which is now doing business as Exol (“Exol”), our warehouse-as-a-service joint venture. We have spent significant time working closely with our customers to develop, test and refine our technology. We have approximately $22.3 billion of backlog as of December 27, 2025, of which our agreements with Walmart and Exol comprise the vast majority.
Current report
We have devoted significant funds and resources to date in developing and diversifying our systems and related applications. Our systems are designed to increase efficiency, speed and flexibility of the supply chain by using proprietary robotics and A.I.-powered software for the movement and storage of goods. Our intellectual property is protected by a portfolio of approximately 1,100 issued and/or pending patents.
Current report
We believe that the global supply chain has reached a point of critical stress, driving an inflection in demand for intelligent and scalable automation. As consumer buying habits change, the labor market shifts, and cost of living wages increase, the demand on warehouse workers is becoming overly burdensome. Manual operations are becoming unsustainable and older automation systems are not capable of optimally satisfying modern operational needs. The dramatic growth in e-commerce has increased supply chain complexity by putting pressure on retailers to support multiple sales channels and orders of eaches in addition to cases and pallets. Meanwhile, consumer expectations have evolved to demand a larger variety of items to be delivered quickly and seamlessly. This has placed significant strain on the traditional supply chain and the people who support it. We help our customers thrive in this increasingly challenging environment.
Current report
In January 2025, we acquired the Advanced Systems and Robotics (“ASR”) business from Walmart and signed a Master Automation Agreement that provides for the development, manufacture and installation of automated systems for online pickup and delivery at Walmart retail stores (“2025 Walmart MAA”). This acquisition added a new product category for us to address the opportunity for automated fulfillment of customer orders at the local and store level, which supports the growth of e-commerce. Under the 2025 Walmart MAA, as of December 27, 2025, we are operating several micro-fulfillment systems, which we will continue to support. We are in the process of developing an advanced micro-fulfillment system for future deployments.
Current report
Net cash and cash equivalents provided by 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 our unconsolidated variable interest entity, Exol.
Current 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 obligations with respect to the taxable income of Symbotic Holdings that is allocated to them.
Current report
In the first quarter of fiscal year 2026, we changed our stock-based compensation policy for recognizing expense for graded vesting awards with only service conditions from the accelerated attribution method to the straight-line attribution method. In connection with the Business Combination in June 2022, we granted RSUs with accelerated vesting terms. As those initial RSU awards with accelerated vesting terms have fully vested since the Business Combination, we believe the straight-line attribution method for stock-based compensation expense for awards solely subject to time-based vesting conditions is the preferable accounting policy in accordance with ASC Topic 718, Compensation - Stock Compensation, because it more accurately reflects how our ongoing equity awards are earned over the service period and is the predominant method used in its industry. With the transition from the accelerated attribution method to the straight-line attribution method, we no longer consider stock-based compensation related to our service-based RSUs to be a critical accounting policy.
Removed paragraphs (13)
Previous report
Our System is based on a unique approach to connecting producers of goods to end users, in a way that resolves the mismatches of quantity, timing and location that arise between the two, while reducing costs. The underlying architecture of our System is what differentiates our solution from anything else in the marketplace. It utilizes fully autonomous robots, collectively controlled by our artificial intelligence enabled system software to achieve at scale, real world supply chain improvements that are so compelling that we believe our approach can become the de facto standard approach for how warehouses operate.
Previous report
The increase in Software Maintenance and Support revenue is due to 42 Operational Systems which are under Software Maintenance and Support contracts for the nine months ended June 28, 2025, as compared to 21 Operational Systems which were under Software Maintenance and Support contracts for the nine months ended June 29, 2024.
Previous report
The increase in Operation Services revenue is attributable to an increase in Operational Systems where we are performing Operation Services for the nine months ended June 28, 2025, as compared to the nine months ended June 29, 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 nine months ended June 28, 2025, as compared to the nine months ended June 29, 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 report
Systems gross profit increased $138.1 million during the nine months ended June 28, 2025, as compared to the nine months ended June 29, 2024. The increase in Systems gross profit is primarily driven by 46 Systems in Deployment during the nine months ended June 28, 2025, as compared to 39 Systems in Deployment during the nine months ended June 29, 2024. The increase in Systems gross profit was further driven by lower cost of revenue resulting from better cost control.
Previous report
The decrease in Operation Services gross profit for the nine months ended June 28, 2025, as compared to the nine months ended June 29, 2024, is driven by an increase in Operation Services costs at certain of our customer sites, a decrease in the mix in the profit generated from the sale of spare parts to our customers, which was partially offset by additional training services provided to our customers, and services related to the ASR Acquisition.
Previous report
The increase in research and development expenses for the nine months ended June 28, 2025, as compared to the nine months ended June 29, 2024, is due to the following:
Previous report
Employee-related costs increased for the nine months ended June 28, 2025, as compared to the nine months ended June 29, 2024. The primary driver for the increase in employee-related costs for the nine months ended June 28, 2025, as compared to the nine months ended June 29, 2024, is from an increase in engineering resources assigned to customer projects, which was primarily related to the 2025 MAA. There was also an increase in the cost for contractors and consultants for the nine months ended June 28, 2025, as compared to the nine months ended June 29, 2024, which we use to support our growth.
Previous report
The increase in selling, general, and administrative expenses for the nine months ended June 28, 2025, as compared to the nine months ended June 29, 2024, is due to the following:
Previous report
The income tax benefit for the nine months ended June 28, 2025, as compared to the income tax expense for the nine months ended June 29, 2024, is attributable to the expense related to current state income and international taxes offset by the partial release of the valuation allowance in connection with the ASR Acquisition.
Previous report
•Joint venture formation fees – Joint venture formation fees represent the charges incurred associated with the formation of GreenBox, which was established on July 21, 2023. It primarily includes investment banker fees, legal fees, transaction fees, advisory fees, and certain other professional fees. We exclude joint venture formation fees from our non-GAAP financial measures to provide a useful comparison of our operating results to prior periods and peer companies because such amounts vary significantly based on the magnitude of the joint venture and do not reflect our core operations.
Previous report
•Equity financing transaction costs – Equity financing transaction costs represent 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.
Previous report
Net cash and cash equivalents provided by investing activities during the nine months ended June 29, 2024 is primarily driven by $340.0 million in proceeds upon the maturity of certain U.S. Treasury securities, offset by purchases of U.S. Treasury securities of $48.7 million. Additionally, we made strategic investments of $66.5 million. No other significant investing activities occurred during the nine months ended June 29, 2024.
Previous report
During the nine months ended June 28, 2025, we paid cash for taxes related to the net share settlement of stock-based compensation awards of $3.0 million, which was offset by cash proceeds from the issuance of common stock under our ESPP of $3.2 million. Additionally, we made distributions to Symbotic Holdings LLC partners of $1.2 million. No other significant financing activities occurred during the nine months ended June 28, 2025.
Reworded paragraphs (27)
Previous wording
Our vision is to make the supply chain work better for everyone. We do this by developing, commercializing, and deploying innovative, comprehensive technology solutions that dramatically improve supply chain operations. We currently automate the processing of pallets, cases, and eaches in large warehouses for some of the largest retail companies in the world. Our System enhances operations at the front end of the supply chain, and therefore benefit all supply partners further down the chain, irrespective of fulfillment strategy.
Current wording
Our vision is to make the supply chain work better for everyone. We do this by developing, commercializing, and deploying innovative and comprehensive technology solutions that dramatically improve supply chain operations. We automate the processing of pallets, cases and items (known as eaches) in warehouses.
Previous wording
Results of Operations for the Three and Nine Months Ended June 28, 2025 and June 29, 2024
Current wording
Results of Operations for the Three Months Ended December 27, 2025 and December 28, 2024
Previous wording
Three and Nine Months Ended June 28, 2025 Compared to the Three and Nine Months Ended June 29, 2024
Current wording
Three Months Ended December 27, 2025 Compared to the Three Months Ended December 28, 2024
Previous wording
Systems revenue increased during the three months ended June 28, 2025, as compared to the three months ended June 29, 2024, due to there being 46 Systems in Deployment during the fiscal quarter ending June 28, 2025, as compared to 39 Systems in Deployment during the same quarter of fiscal 2024. The increase in Systems revenue is primarily due to the additional revenue generated from the 2025 MAA for ASR.
Current wording
Systems revenue increased during the three months ended December 27, 2025, as compared to the three months ended December 28, 2024, due to additional revenue generated from the 2025 Walmart MAA for ASR and there being 57 Systems in Deployment during the fiscal quarter ending December 27, 2025, as compared to 44 Systems in Deployment during the same quarter of fiscal 2025.
Previous wording
The increase in Software Maintenance and Support revenue is due to 42 Operational Systems which are under Software Maintenance and Support contracts for the three months ended June 28, 2025, as compared to 21 Operational Systems which were under Software Maintenance and Support contracts for the three months ended June 29, 2024.
Current wording
The increase in Software Maintenance and Support revenue is due to 51 Operational Systems which are under Software Maintenance and Support contracts for the three months ended December 27, 2025, as compared to 29 Operational Systems which were under Software Maintenance and Support contracts for the three months ended December 28, 2024.
Previous 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 June 28, 2025, as compared to the three months ended June 29,
Current wording
The increase in Operation Services revenue is attributable to an increase in the number of Operational Systems where we are performing Operation Services for the three months ended December 27, 2025, as compared to the three months ended
Previous wording
As we continue to increase the number of Operational Systems, an increase in the number of Operation Services contracts is expected.
Current wording
December 28, 2024. As we continue to increase the number of Operational Systems, an increase in the number of Operation Services contracts is expected.
Previous wording
Systems gross profit increased $49.4 million for the three months ended June 28, 2025, as compared to the three months ended June 29, 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 39 Systems in Deployment during the three months ended June 29, 2024. The increase in Systems gross profit was further driven by lower cost of revenue resulting from better cost control.
Current wording
Systems gross profit increased $37.4 million for the three months ended December 27, 2025, as compared to the three months ended December 28, 2024. The increase in Systems gross profit is primarily driven by 57 Systems in Deployment during the three months ended March 29, 2025, as compared to 44 Systems in Deployment during the three months ended December 28, 2024. The increase in Systems gross profit was further driven by continued performance improvements.
Previous wording
The decrease in Operation Services gross profit for the three months ended June 28, 2025, as compared to the three months ended June 29, 2024, is driven by a mix in the profit generated from the sale of spare parts to our customers.
Current wording
The increase in Operation Services gross profit for the three months ended December 27, 2025, as compared to the three months ended December 28, 2024, is driven by operational efficiencies and an increase in the number of Operational Systems from the prior year.
Previous wording
The increase in research and development expenses for the three months ended June 28, 2025, as compared to the three months ended June 29, 2024, is due to the following:
Current wording
The decrease in research and development expenses for the three months ended December 27, 2025, as compared to the three months ended December 28, 2024, is due to the following:
Previous wording
Allocated overhead and other expenses increased in the three months ended June 28, 2025, as compared to the three months ended June 29, 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 legal expenses, primarily attributable to increased professional services fees related to strategic acquisitions and our internal controls remediation.
Current wording
Allocated overhead and other expenses decreased in the three months ended December 27, 2025, as compared to the three months ended December 28, 2024, primarily due to a decrease in legal expenses from the prior year as we incurred more legal expenses related to our internal controls remediation and acquisition activity for the three months ended December 28, 2024. This decrease was offset by an increase in information technology related costs to support growth within our employee base and infrastructure.
Previous wording
We incurred $16.4 million of restructuring charges for the three months ended June 28, 2025 resulting from severance and other benefits expense primarily related to the reduction of workforce across all areas of the employees that joined the Company’s workforce in connection with the ASR Acquisition.
Current wording
We incurred $2.7 million of restructuring charges for the three months ended December 27, 2025 resulting from severance and other benefits expense primarily related to the reduction of workforce across the organization to align resource investment to business needs.
Previous wording
The increase in other income, net for the nine months ended June 28, 2025, as compared to the nine months ended June 29, 2024, was due to higher interest earned on invested cash balances as a result of increased interest rates as well as other income earned on the fair value adjustment recorded for the nine months ended June 28, 2025 related to our derivative instrument.
Current wording
The increase in other income, net for the three months ended December 27, 2025, as compared to the three months ended December 28, 2024, was due to higher interest earned on invested cash balances as a result of an increase of nearly $1.0 million on our cash balance for the three months ended December 27, 2025, as compared to the three months ended December 28, 2024.
Previous wording
The decrease in income tax expense for the three months ended June 28, 2025, as compared to the three months ended June 29, 2024, is attributable to the expense related to current state income taxes offset by a benefit in international taxes and by the partial release of the valuation allowance in connection with the ASR Acquisition.
Current wording
The increase in income tax expense for the three months ended December 27, 2025, as compared to the three months ended December 28, 2024, is attributable to the expense related to international income taxes offset by a benefit in international taxes.
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; 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.
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; and other infrequent items that may arise from time to time.
Previous wording
•Business combination transaction expenses – Business combination transaction expenses represent the expenses incurred related to strategic acquisition opportunities. It primarily includes investment banker fees, legal fees, professional fees for accountants, transaction fees, advisory fees, due diligence costs, certain other professional fees, and other direct costs associated with strategic activities. These amounts are impacted by the timing of the strategic acquisition opportunities which we may pursue. We exclude business combination transaction expenses from our non-GAAP financial measures to provide a useful comparison of our operating results to prior periods and to peer companies because such amounts vary significantly based on the magnitude of the transaction and do not reflect our core operations.
Current wording
•Business combination transaction expenses – Business combination transaction expenses represent the expenses incurred related to strategic acquisition opportunities. It primarily includes investment banker fees, legal fees, professional fees for accountants, transaction fees, advisory fees, due diligence costs, certain other professional fees, and other direct costs associated with strategic activities. These amounts are impacted by the timing of the strategic acquisition opportunities which we may pursue. We exclude business combination transaction expenses from our non-
Previous wording
•Restructuring charges – Restructuring charges are costs associated with restructuring plans and are primarily related to employee severance and benefit arrangements, 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 the restructuring plan. The restructuring charges in fiscal year 2025 represent those charges incurred related to a reduction of our workforce across all areas of the employees that joined the Company’s workforce in connection with the ASR Acquisition. The restructuring charges in fiscal year 2024 represent those charges incurred associated with certain actions to restructure parts of the Company within the U.S. and Canada. 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 wording
•Restructuring charges – Restructuring charges are costs associated with restructuring plans and are primarily related to employee severance and benefit arrangements, 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 the restructuring plan. The restructuring charges in fiscal year 2025 represent those charges incurred related to a reduction of our workforce across all areas of the employees that joined the Company’s workforce in connection with the ASR Acquisition. 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.
Previous wording
The following table reconciles GAAP net loss to Adjusted EBITDA for the three and nine months ended June 28, 2025 and June 29, 2024 (in thousands):
Current wording
The following table reconciles GAAP net loss to Adjusted EBITDA for the three months ended December 27, 2025 and December 28, 2024 (in thousands):
Previous wording
We consider Adjusted gross profit and Adjusted gross profit margin to be important indicators of profitability which we use in our financial and operational decision-making and evaluation of our overall operating performance. We define Adjusted gross profit, a non-GAAP financial measure, as GAAP gross profit excluding the following items: depreciation, stock-based compensation, and restructuring charges. We define Adjusted gross profit margin, a non-GAAP financial measure, as non-GAAP Adjusted gross profit divided by total revenue. The following table reconciles GAAP gross profit to Adjusted gross profit and gross profit margin to Adjusted gross profit margin during the periods presented (dollars in thousands):
Current wording
We consider Adjusted gross profit and Adjusted gross profit margin to be important indicators of profitability which we use in our financial and operational decision-making and evaluation of our overall operating performance. We define Adjusted gross profit, a non-GAAP financial measure, as GAAP gross profit excluding the following items: depreciation, stock-based compensation, and restructuring charges. We define Adjusted gross profit margin, a non-GAAP financial measure, as non-GAAP Adjusted gross profit divided by total revenue. The following table reconciles GAAP gross profit to
Previous wording
The following table shows net cash provided by operating activities, net cash provided by (used in) investing activities, and net cash provided by (used in) financing activities for the nine months ended June 28, 2025 and June 29, 2024:
Current wording
The following table shows net cash provided by operating activities, net cash used in investing activities, and net cash provided by (used in) financing activities for the three months ended December 27, 2025 and December 28, 2024:
Previous wording
Net cash provided by operating activities was $336.3 million during the nine months ended June 28, 2025. Net cash provided by operating activities was primarily due to our net loss of $71.9 million adjusted for non-cash items of $162.1 million, primarily consisting of $34.1 million depreciation and amortization, $119.6 million stock-based compensation, and $4.9 million provision for excess and obsolete inventory, offset by cash provided by operating assets and liabilities of $246.1 million. Cash provided by operating assets and liabilities of $246.1 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 provided by operating activities was $191.5 million during the three months ended December 27, 2025. Net cash provided by operating activities was primarily due to our net income of $13.4 million adjusted for non-cash items of $65.0 million, primarily consisting of $8.7 million depreciation and amortization, $45.9 million stock-based compensation, and $4.8 million provision for excess and obsolete inventory, offset by cash provided by operating assets and liabilities of $113.2 million. Cash provided by operating assets and liabilities of $113.2 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 provided by operating activities was $41.3 million during the nine months ended June 29, 2024. Net cash provided by operating activities was primarily due to our net loss of $100.6 million adjusted for non-cash items of $128.5 million, primarily consisting of $17.0 million depreciation and amortization, $86.9 million stock-based compensation, and $34.1 million provision for excess and obsolete inventory, offset by cash provided by operating assets and liabilities of $13.5 million. Cash provided by operating assets and liabilities of $13.5 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 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 $16.9 million adjusted for non-cash items of $34.7 million, primarily consisting of $6.9 million depreciation and amortization, $24.6 million stock-based compensation, offset by cash provided by operating assets and liabilities of $187.2 million. Cash provided by operating assets and liabilities of $187.2 million was primarily driven by net working capital changes, including the 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.
Previous wording
Net cash and cash equivalents used in investing activities during the nine months ended June 28, 2025 is primarily driven by $42.2 million of cash paid for strategic investments as well as $200.0 million of cash paid for business acquisitions. No other significant investing activities occurred during the nine months ended June 28, 2025.
Current wording
Net cash and cash equivalents used in investing activities during the three months ended December 27, 2025 was primarily driven by $38.5 million of cash paid for strategic investments, which includes our investment in our unconsolidated variable interest entity, Exol. No other significant investing activities occurred during the three months ended December 27, 2025.
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 as well as proceeds from equity financing transactions.
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 equity financing transactions.
Previous wording
During the nine months ended June 29, 2024, we received cash of $158.7 million upon the gross exercise by Walmart of the 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 in March 2024. Offsetting these proceeds were distributions to Symbotic Holdings LLC partners of $47.7 million. No other significant financing activities occurred during the nine months ended June 29, 2024.
Current wording
During the three months ended December 27, 2025, we received net proceeds of $424.4 million from the issuance of Class A common stock upon completion of our equity financing transaction in December 2025. No other significant financing activities occurred during the three months ended December 27, 2025.
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 June 28, 2025, we had a cash and cash equivalents balance of $777.6 million. Our cash requirements for the nine months ended June 28, 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.
Current wording
Our cash flows from operations along with equity infusions have historically been sufficient to fund our operating activities and other cash requirements. At December 27, 2025, we had a cash and cash equivalents balance of $1,819.1 million. Our cash requirements for the three months ended December 27, 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 nine months ended June 28, 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.
Current wording
Other than the change in accounting principle disclosed below, there have been no significant changes in our critical accounting policies and estimates during the three months ended December 27, 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 27, 2025, which are included within the Annual Report on Form 10-K filed with the SEC on November 24, 2025.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
GAAP financial measures to provide a useful comparison of our operating results to prior periods and to peer companies because such amounts vary significantly based on the magnitude of the transaction and do not reflect our core operations.
Current report — wording carried from elsewhere
Adjusted gross profit and gross profit margin to Adjusted gross profit margin during the periods presented (dollars in thousands):
Rearranged previous paragraphs (8)
Previous report — wording carried elsewhere
Systems revenue increased during the nine months ended June 28, 2025, as compared to the nine months ended June 29, 2024, due to there being 46 System in Deployment during the fiscal quarter ending June 28, 2025, as compared to 39 Systems in Deployment during the same quarter of fiscal 2024. The increase in Systems revenue includes the addition of the revenue generated from the 2025 MAA for ASR.
Previous report — wording carried elsewhere
The following table sets forth our gross profit for the nine months ended June 28, 2025 and June 29, 2024:
Previous report — wording carried 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 nine months ended June 28, 2025, as compared to the nine months ended June 29, 2024, while costs to perform our Maintenance and Support Services remained relatively flat.
Previous report — wording carried elsewhere
Prototyping-related costs, allocated overhead expenses, and other expenses increased for the nine months ended June 28, 2025, as compared to the nine months ended June 29, 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 that we acquired through our asset and business combination transactions.
Previous report — wording carried elsewhere
Employee-related costs increased in the nine months ended June 28, 2025, as compared to the nine months ended June 29, 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 report — wording carried elsewhere
Allocated overhead and other expenses increased in the nine months ended June 28, 2025, as compared to the nine months ended June 29, 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, primarily attributable to increased professional services fees related to strategic acquisitions and our internal controls remediation.
Previous report — wording carried elsewhere
We incurred $16.4 million of restructuring charges for the nine months ended June 28, 2025 resulting from severance and other benefits expense primarily related to the reduction of workforce across all areas of the employees that joined the Company’s workforce in connection with the ASR Acquisition.
Previous report — wording carried elsewhere
The decrease in other income, net for the three months ended June 28, 2025, as compared to the three months ended June 29, 2024, was due to higher interest earned on invested cash balances as a result of increased interest rates, which was offset by a lower cash balance.