📊 IOT Key Takeaways
Is Samsara Inc. (IOT) a Good Investment?
Samsara demonstrates strong growth fundamentals with 29.6% revenue expansion and exceptional 94.1% net income acceleration, backed by 75.4% gross margins and robust $73.2M free cash flow, supported by a pristine zero-debt balance sheet. However, operating margin remains critically low at 1.5%, and weak capital efficiency metrics (ROE 3.0%, ROA 1.7%) signal the company is pre-profitability and must demonstrate sustained operating leverage.
Samsara shows strong fundamental momentum with nearly 30% revenue growth, very high 76.7% gross margins, and positive free cash flow generation. The business appears to be transitioning toward sustained profitability, supported by a debt-free balance sheet and solid liquidity, though operating margins remain slightly negative and net income is still below breakeven.
Samsara Inc. Key Strengths (IOT)
- Strong revenue growth of 29.6% YoY with accelerating net income growth of 94.1% YoY indicating operating leverage inflection
- Excellent gross margins of 75.4% demonstrating strong product-market fit and pricing power typical of high-quality software businesses
- Robust free cash flow generation of $73.2M (15.3% FCF margin) with minimal capex requirements showing efficient business model
- Pristine balance sheet with zero debt, $219M cash, 1.62x current ratio, and 0.00x debt-to-equity providing maximum financial flexibility
- Strong top-line growth with revenue up 29.6% year over year
- Excellent gross margin of 76.7%, indicating a scalable software-heavy business model
- Healthy financial position with positive operating cash flow, $207.44M in free cash flow, solid liquidity, and no long-term debt
IOT Stock Risks: Samsara Inc. Investment Risks
- Critically low operating margin of 1.5% despite 75.4% gross margins indicates 73.9% of gross profit consumed by operating expenses, limiting near-term profitability
- Poor capital efficiency with ROE of 3.0% and ROA of 1.7% suggests inefficient deployment of $2.6B in assets and $1.5B shareholder equity
- Operating expense structure appears unsustainable relative to revenue base if growth rate decelerates; path to profitability remains unproven
- Operating margin remains negative at -3.2%, so full profitability is not yet established
- Net income is still slightly negative, leaving limited buffer if growth slows
- Growth quality must remain strong to justify continued spending and margin improvement
Key Metrics to Watch
- Operating margin expansion - critical inflection point if can demonstrate sustained improvements above 5%
- Revenue growth sustainability - ability to maintain 25%+ YoY growth to justify elevated expense-to-revenue ratio
- Free cash flow conversion ratio - verify FCF margin remains above 12% as company scales
- SG&A and R&D spending as percentage of revenue - monitor discipline on operating expense growth relative to revenue growth
- Operating margin progression toward sustained positive territory
- Free cash flow margin and revenue growth consistency
Samsara Inc. (IOT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Samsara Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
IOT Profit Margin, ROE & Profitability Analysis
IOT vs Technology Sector: How Samsara Inc. Compares
How Samsara Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Samsara Inc. Stock Overvalued? IOT Valuation Analysis 2026
Based on fundamental analysis, Samsara Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Samsara Inc. Balance Sheet: IOT Debt, Cash & Liquidity
IOT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Samsara Inc.'s revenue has grown significantly by 148% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.54 indicates the company is currently unprofitable.
IOT Revenue Growth, EPS Growth & YoY Performance
IOT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2027 | $366.9M | -$22.1M | $-0.04 |
| Q3 2026 | $322.0M | $7.8M | $0.01 |
| Q2 2026 | $300.2M | -$16.8M | $-0.03 |
| Q1 2026 | $280.7M | -$22.1M | $-0.04 |
| Q3 2025 | $237.5M | -$37.8M | $-0.07 |
| Q2 2025 | $219.3M | -$49.6M | $-0.09 |
| Q1 2025 | $204.3M | -$56.3M | $-0.10 |
| Q3 2024 | $169.8M | -$45.5M | $-0.08 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Samsara Inc. Dividends, Buybacks & Capital Allocation
IOT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Samsara Inc. (CIK: 0001642896)
📋 Recent SEC Filings
❓ Frequently Asked Questions about IOT
What is the AI rating for IOT?
Samsara Inc. (IOT) has a Combined AI Grade of A from Claude (A) and ChatGPT (A) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are IOT's key strengths?
Claude: Strong revenue growth of 29.6% YoY with accelerating net income growth of 94.1% YoY indicating operating leverage inflection. Excellent gross margins of 75.4% demonstrating strong product-market fit and pricing power typical of high-quality software businesses. ChatGPT: Strong top-line growth with revenue up 29.6% year over year. Excellent gross margin of 76.7%, indicating a scalable software-heavy business model.
What are the risks of investing in IOT?
Claude: Critically low operating margin of 1.5% despite 75.4% gross margins indicates 73.9% of gross profit consumed by operating expenses, limiting near-term profitability. Poor capital efficiency with ROE of 3.0% and ROA of 1.7% suggests inefficient deployment of $2.6B in assets and $1.5B shareholder equity. ChatGPT: Operating margin remains negative at -3.2%, so full profitability is not yet established. Net income is still slightly negative, leaving limited buffer if growth slows.
What is IOT's revenue and growth?
Samsara Inc. reported revenue of $478.8M.
Does IOT pay dividends?
Samsara Inc. does not currently pay dividends.
Where can I find IOT SEC filings?
Official SEC filings for Samsara Inc. (CIK: 0001642896) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is IOT's EPS?
Samsara Inc. has a diluted EPS of $0.08.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is IOT's fundamental grade?
Based on our AI fundamental analysis in June 2026, Samsara Inc. has a A grade with 77% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is IOT stock overvalued or undervalued?
Valuation metrics for IOT: ROE of 3.0% (sector avg: 22%), net margin of 9.3% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is IOT's AI grade for 2026?
Our dual AI analysis gives Samsara Inc. a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is IOT's free cash flow?
Samsara Inc.'s operating cash flow is $81.4M, with capital expenditures of $8.2M. FCF margin is 15.3%.
How does IOT compare to other Technology stocks?
Vs Technology sector averages: Net margin 9.3% (avg: 18%), ROE 3.0% (avg: 22%), current ratio 1.62 (avg: 2.5).