Smith Micro Q2 2026 earnings miss despite improved growth

Smith Micro Software Inc. on Thursday reported second-quarter 2026 earnings that fell short of Wall Street estimates, even as the company highlighted sequential gains in revenue and adjusted profitability.

The Aliso Viejo, California-based software provider posted adjusted earnings of 5 cents per share, missing the consensus forecast of 8 cents per share compiled by Refinitiv. Revenue totaled $32.8 million, below the $34.5 million estimate, according to Refinitiv data.

Management noted that growth improved compared with the prior quarter, with revenue up 4% sequentially and adjusted operating income rising 6%. The company attributed the gains to stronger demand in its connectivity and device management software segments, which offset softer performance in legacy products.

Smith Micro’s chief executive officer, William W. Smith Jr., said the company remains focused on expanding its addressable markets and accelerating innovation in its core software solutions. "While we faced near-term headwinds in certain areas, the underlying momentum in our strategic businesses remains intact," he stated in prepared remarks.

The company reaffirmed its full-year 2026 guidance, projecting revenue between $135 million and $140 million and adjusted earnings per share of 25 to 30 cents. Analysts had previously forecast revenue of $138 million and adjusted EPS of 28 cents, according to Refinitiv.

Shares of Smith Micro were down 3% in after-hours trading following the release, extending losses from the broader software sector.