Symbotic Reports 40% Revenue Growth and Record Deployments in Q2, Raises Confidence in Scaled Expansion
Symbotic Inc. (NASDAQ: SYM) delivered a strong second quarter of fiscal 2025, posting 40% year-over-year revenue growth and demonstrating improved execution across system deployments, gross margins, and backlog growth. The warehouse automation company continues to see rising demand for its AI-powered supply chain solutions, even as it navigates some macroeconomic uncertainties.
Symbotic reported $550 million in revenue, up from $393 million in the prior year. The company also more than tripled its adjusted EBITDA to $35 million, up from $9 million last year, highlighting ongoing operational efficiency gains. Gross profit improved significantly to $108 million, compared to $30 million a year ago, with adjusted gross margin reaching 22.2%.
Symbotic also set a new record in system deployment activity, completing 8 systems during the quarter, double its previous record, and initiating 10 new deployments. These achievements contributed to the company’s backlog expanding to $22.7 billion, bolstered by a development agreement with Walmart and steady growth across both existing and new customers.
In addition to system revenue, Symbotic saw continued strength in its recurring revenue streams. Software maintenance and support revenue grew over 160% year-over-year, and operations services revenue climbed 47%. The company also ended the quarter with $955 million in cash, supported by robust operating cash flow of $270 million and free cash flow of $249 million.
Looking ahead to the third quarter, the company expects revenue between $520 million and $540 million and adjusted EBITDA of $26 million to $30 million. Management noted that EBITDA margins may see a slight sequential decline due to a lower contribution from its Walmart ACR business relative to Q2.
In the Q&A session, executives emphasized accelerated innovation within Symbotic’s bot fleet, including planned features like enhanced vision systems and remote operation capabilities. The GreenBox joint venture, a warehouse-as-a-service venture between Symbotic and SoftBank, is in the early stages of customer acquisition, with its first customer deployment expected soon.
While macro factors such as tariffs and global economic conditions pose potential headwinds, Symbotic remains confident that customer demand, particularly from those facing labor shortages, will continue to support long-term growth. Though financing demand from customers remains limited, GreenBox is positioned to serve that need should it materialize.
