smsi20260331c

smsi20260331c_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-35525

SMITH MICRO SOFTWARE, INC.

(Exact name of registrant as specified in its charter)

Delaware

33-0029027

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

5800 Corporate Drive, Pittsburgh, PA	15237
(Address of principal executive offices)	(Zip Code)

(412) 837-5300

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.001 per share

SMSI

The Nasdaq Capital Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 30, 2026, there were 25,557,408 shares of Common Stock outstanding.

Table of Contents

SMITH MICRO SOFTWARE, INC.

QUARTERLY REPORT ON FORM 10-Q

March 31, 2026

TABLE OF CONTENTS

Explanatory Note
PART I.	FINANCIAL INFORMATION	2
Item 1.	Financial Statements (Unaudited)	2
	Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025	2
	Consolidated Statements of Operations for the Three Months Ended March 31, 2026 and 2025	3
	Consolidated Statements of Stockholders’ Equity for the Three Months Ended March 31, 2026 and 2025	4
	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025	5
	Notes to the Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27
Item 4.	Controls and Procedures	33

PART II.	OTHER INFORMATION	34
Item 1.	Legal Proceedings	34
Item 1A.	Risk Factors	34
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 6.	Exhibits	36

SIGNATURES		37

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

SMITH MICRO SOFTWARE, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and par value data)

	*March 31,*			*December 31,*
	*2026*			*2025*
	(unaudited)			(audited)
Assets
Current assets:
Cash and cash equivalents	$	1,742		$	1,494
Accounts receivable		2,902			1,817
Prepaid expenses and other current assets		1,321			1,218
Total current assets		5,965			4,529
Equipment and improvements, net		274			331
Right-of-use assets		1,741			1,119
Other assets		499			500
Intangible assets, net		17,315			18,492
Total assets	$	25,794		$	24,971
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	1,567		$	1,937
Accrued payroll and benefits		1,418			1,488
Current operating lease liabilities		722			914
Other current liabilities		649			773
Notes payable, net of discount		—			1,007
Total current liabilities		4,356			6,119
Non-current liabilities:
Warrant liabilities		41			45
Convertible notes payable		1,901			—
Operating lease liabilities		1,154			417
Total non-current liabilities		3,096			462
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.001 per share; 100,000,000 shares authorized; 25,609,766 and 25,798,092 shares issued and outstanding at 2026 and 2025, respectively		26			26
Additional paid-in capital		406,956			403,107
Accumulated comprehensive deficit		(388,640	)		(384,743	)
Total stockholders’ equity		18,342			18,390
Total liabilities and stockholders' equity	$	25,794		$	24,971

See accompanying notes to the consolidated financial statements.

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SMITH MICRO SOFTWARE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

	*For the Three Months Ended*
	*March 31,*
	*2026*			*2025*
	(unaudited)			(unaudited)
Revenues	$	4,221		$	4,621
Cost of revenues (including depreciation of $0 and $1 in the three months ended March 31, 2026 and 2025, respectively)		911			1,258
Gross profit		3,310			3,363
Operating expenses:
Selling and marketing		1,476			1,643
Research and development		1,848			2,857
General and administrative		2,113			2,724
Depreciation and amortization		1,246			1,349
Total operating expenses		6,683			8,573
Operating loss		(3,373	)		(5,210	)
Other income (expense):
Change in fair value of warrant liabilities		3			123
Interest expense, net		(526	)		(25	)
Other expense, net		(1	)		(65	)
Loss before provision for income tax		(3,897	)		(5,177	)
Provision for income tax expense		—			1
Net loss	$	(3,897	)	$	(5,178	)

Net loss per share – basic and diluted
Basic and diluted	$	(0.15	)	$	(0.28	)

Weighted average shares outstanding:
Basic and diluted		25,695			18,216

See accompanying notes to the consolidated financial statements.

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SMITH MICRO SOFTWARE, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands)

						*Additional*			*Accumulated*
	*Common Stock*					*Paid-in*			*Comprehensive*
	*Shares*			*Amount*		*Capital*			*Deficit*			*Total*
BALANCE, December 31, 2025 (audited)		25,798		$	26	$	403,107		$	(384,743	)	$	18,390
Non-cash compensation recognized on stock options and employee stock purchase plan ("ESPP")		—			—		2			—			2
Restricted stock grants, net of cancellations		92			—		584			—			584
Cancellation of shares for payment of withholding tax		(280	)		—		(154	)		—			(154	)
Debt discount for warrants issued		—			—		3,417			—			3,417
Net loss		—			—		—			(3,897	)		(3,897	)
BALANCE, March 31, 2026 (unaudited)		25,610		$	26	$	406,956		$	(388,640	)	$	18,342

						Additional			Accumulated
	Common Stock					Paid-in			Comprehensive
	Shares			Amount		Capital			Deficit			Total
BALANCE, December 31, 2024 (audited)		17,673		$	18	$	395,383		$	(354,645	)	$	40,756
Non-cash compensation recognized on stock options and ESPP		—			—		6			—			6
Restricted stock grants, net of cancellations		1,868			1		1,080			—			1,081
Cancellation of shares for payment of withholding tax		(85	)		—		(105	)		—			(105	)
ESPP shares issued		3			—		2			—			2
Net loss		—			—		—			(5,178	)		(5,178	)
BALANCE, March 31, 2025 (unaudited)		19,459		$	19	$	396,366		$	(359,823	)	$	36,562

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SMITH MICRO SOFTWARE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	*For the Three Months Ended*
	*March 31,*
	*2026*	*2025*
	(unaudited)	(unaudited)
Operating activities:

SEC Form 10-Q filed by Smith Micro Software Inc.