AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 3/6 · 18/10/2026
Moat63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · Hardware and essential software are interdependent, maintenance contracts generally extend 15 years, and backlog contracts exclude termination for convenience. These establish switching friction and contractual protection without relying on margins.
durability · 2/4 · Long support commitments support persistence, but performance-based termination remains possible and the targeted recall demonstrates a concrete vulnerability. Contract duration does not prove lasting technological leadership.
customer dependency · 3/4 · Customers cannot benefit from the hardware or essential software separately, and additional operating systems are generating maintenance revenue under long contracts. Dependency is demonstrated structurally; actual replacement costs and renewal rates are undisclosed.
erosion resilience · 2/4 · Cost pass-through and growing supported installations provide protection. Replacement liabilities and tariff expense show that protection is incomplete. No additional third-quarter recall charge is favorable but does not establish that the issue is permanently resolved.
Pricing power56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · Disclosed Walmart payment terms include implementation costs plus specified profit, while management attributes part of actual Systems gross profit growth to capturing customer value. This supports qualified economic capture, assessed indirectly; fixed and capped arrangements and absent comparable price data prevent a stronger conclusion.
retention · 3/4 · Long maintenance commitments, non-cancellable backlog subject to specified exceptions, and additional operating systems under support demonstrate customer commitment and continued engagement. This is indirect operating and contractual evidence, not a measured retention or renewal rate.
margin resilience · 2/4 · Steel pass-through, specified profit arrangements and increased support gross profit with relatively flat support costs protect economics. Tariffs and the realized replacement liability demonstrate offsets. The passages do not provide a comprehensive margin history.
contractual freedom · 2/4 · Pass-through provisions protect selected input costs, but fixed fees, capped costs and specified profit amounts constrain repricing. Predominantly perpetual software licensing does not establish recurring license repricing rights; maintenance escalation rights are undisclosed.
Predictability—
Missing exact annual revenue, free cash flow or FCF margin; operating cash flow and capex must both be reported for all five years.
Financial strength—
Missing required inputs: debtFcfGrade, netDebtEbitGrade, interestCoverageGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- currentRatioGrade
- 27.44
- Current ratio (x)
- 1.09
Capital allocation—
Missing required inputs: operatingReturn, cashConversionGrade. Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year average dilution (%)
- 27.08
- 3-year average SBC / revenue (%)
- 9.19
Management50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Historical funding sufficiency and the September 2025 cash balance provide positive context, but equity funding, cumulative losses, substantial purchase obligations and Exol funding commitments make the record mixed. Exol termination reimbursement is a contractual offset, not proof of recoverability or realized investment returns.
incentive alignment · 2/4 · Actual fiscal 2025 grants combine RSUs and PSUs, with revenue and adjusted free cash flow performance metrics. Earned PSUs remain subject to future vesting. The adjusted cash metric is EBITDA less specified investment spending rather than actual operating cash flow. CEO compensation was zero, but ownership alignment is not established by that fact.
execution · 2/4 · The increase from 46 to 77 systems in deployment and additional operating systems under maintenance demonstrate delivery progress indirectly. The targeted recall and $34.3 million replacement liability are realized execution setbacks; management's description of strong execution is not accepted without these qualifications.
governance · 2/4 · The disclosed independent board majority and observed audit-service pre-approval compliance provide safeguards. The adverse internal control opinion, continuing material weakness and CEO relationship with a related-party customer materially qualify them. Remediation plans are not evidence of completed remediation, and voting-control coverage is incomplete.
Evidence
Remaining Performance Obligations (i.e., backlog) As of September 27, 2025, we had approximately $22.5 billion of backlog of orders from our customers, of which approximately 12% is expected to be recognized as revenue in fiscal year 2026.
Remaining Performance Obligations: September 27, 2025 backlog · Filed 24/11/2025
Our contracts that we use to determine this backlog do not contain termination for convenience clauses.
Remaining Performance Obligations: termination for convenience · Filed 24/11/2025
Outside of insolvency, or specific change in control provisions, most of our backlog can only be terminated if we do not deliver the systems with its defined performance standards.
Remaining Performance Obligations: termination conditions · Filed 24/11/2025
The hardware and essential software are each not capable of being distinct because our customers cannot benefit from the hardware or software on their own.
Revenue: interdependence of hardware and essential software · Filed 05/08/2026
Fees for Software Maintenance and Support are typically payable in advance on a quarterly, or annual basis over the term of the Software Maintenance and Support contract, which term can range from one to 15 years, but for a substantial majority of our Software Maintenance and Support contracts is 15 years.
Software Maintenance and Support: payment and contract duration · Filed 05/08/2026
For each System, Walmart pays us: • the cost of implementation, including the cost of material and labor, plus a specified net profit amount, subject in certain cases to a capped cost amount; • for software maintenance and support for a minimum of 20 years following preliminary acceptance of the System and with annual renewals thereafter; and • for spare parts.
Walmart commercial arrangements: implementation and support payment terms · Filed 16/01/2026
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 27, 2026, as compared to the nine months ended June 28, 2025, while costs to perform our maintenance and support services remained relatively flat.
Nine-month gross profit discussion: additional operating systems under maintenance · Filed 05/08/2026
For example, in most cases, increases in steel prices are passed on to the customer, preserving our gross profit.
Remaining Performance Obligations: steel cost pass-through · Filed 24/11/2025
The increase in Systems gross profit is primarily driven by our capture of the increasing value we are driving for customers as well as the 77 Systems in Deployment during the nine months ended June 27, 2026, as compared to 46 Systems in Deployment during the nine months ended June 28, 2025.
Nine-month Systems gross profit discussion: value capture and deployment growth · Filed 05/08/2026
We believe this will result in high rates of customer retention.
Backbone of Commerce: management retention expectation · Filed 24/11/2025
Fees for Systems are typically either cost-plus fixed fee amounts, fixed, or in certain cases, subject to a capped cost amount that are due based on the achievement of a variety of milestones beginning at contract inception through final acceptance.
Revenue: cost-plus, fixed and capped System fees · Filed 05/08/2026
Activity related to the warranty accrual is as follows (in thousands): Three Months Ended Nine Months Ended June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Balance at beginning of period $ 81,575 $ 45,725 $ 43,607 $ 31,935 Provision 266 4,121 42,049 22,629 Warranty usage (2,727) (2,458) (6,542) (7,176) Balance at end of period $ 79,114 $ 47,388 $ 79,114 $ 47,388 In the second quarter of fiscal year 2026, following monitoring and testing that identified performance trends requiring further evaluation, the Company initiated a replacement program for certain System components, including a targeted recall.
Warranty: component replacement program and targeted recall · Filed 05/08/2026
The Company recorded an additional liability of $34.3 million as of March 28, 2026, representing estimated costs associated with component replacements within the structure and related repairs.
Warranty: additional replacement and repair liability · Filed 05/08/2026
•If we fail to adapt and respond effectively to rapidly changing technology, evolving industry standards and changing business needs, requirements or preferences, our systems may become less competitive.
Risk factors: technological change · Filed 24/11/2025
Forward-looking statements made in this Quarterly Report on Form 10-Q also include, but are not limited to, statements with respect to: •the future performance of Symbotic’s business and operations; •expectations regarding revenues, expenses, adjusted EBITDA and anticipated cash needs; •expectations regarding cash flow, liquidity and sources of funding; •expectations regarding capital expenditures; •the anticipated benefits of Symbotic’s leadership structure; •the effects of pending and future legislation; ii •the effects of inflation, prevailing price levels, exchange rates, changes in trade agreements and trade protection measures including tariffs and other economic factors; •the direct and indirect effects of geopolitical conditions in the United States and in global economies, including those resulting from acts of war and conflicts and responses to such events; •business disruption; •disruption to the business due to Symbotic’s dependency on Walmart; •increasing competition in the warehouse automation industry; •any delays in the design, production or launch of Symbotic’s systems and products; •the failure to meet customers’ requirements under existing or future contracts or customers’ expectations as to price or pricing structure; •any defects in new products or enhancements to existing products; •the fluctuation of operating results from period to period due to a number of factors, including the pace of customer adoption of Symbotic’s new products and services and any changes in its product mix that shift too far into lower gross margin products; and •any consequences associated with joint ventures and legislative and regulatory actions and reforms.
Forward-looking statement cautions: Walmart dependency and competition · Filed 05/08/2026
Our intellectual property is protected by a portfolio of approximately 1,100 issued and/or pending patents as of September 27, 2025.
Business overview: issued and pending patent portfolio as of September 27, 2025 · Filed 05/08/2026
The increase in Systems gross profit was further driven by continued strong project execution and cost discipline, partially offset by increased tariff expenses as tariff regulations continue to evolve, and increased warranty expense.
Nine-month Systems gross profit discussion: execution, tariffs and warranty expense · Filed 05/08/2026
No additional charges were recorded in the third quarter of fiscal year 2026.
Warranty: no additional third-quarter charges · Filed 05/08/2026
As of September 27, 2025, we have a cash and cash equivalents balance of $1,245.0 million.
Liquidity: September 27, 2025 cash balance · Filed 24/11/2025
Contractual Obligations and Commitments and Liquidity Outlook Our cash flows from operations along with equity infusions have historically been sufficient to fund our operating activities and other cash requirements.
Liquidity: historical operating cash flows and equity funding · Filed 24/11/2025
As of June 27, 2026, the purchase commitments covered by these arrangements are $1.1 billion in the aggregate, of which $1.0 billion are less than one year.
Commitments: June 27, 2026 purchase obligations · Filed 05/08/2026
The Company’s recorded investments in the unconsolidated VIE and related estimated maximum exposure to loss are as follows (in thousands): 29 Table of Contents June 27, 2026 Investments in Unconsolidated VIE Symbotic's Maximum Exposure to Loss Exol $ 140,468 $ 1,491,341 The Company calculated its maximum exposure to loss of $1,491.3 million while considering its equity investment in the VIE, any amounts owed to the Company for services which may have been provided, and future funding commitments of $1,487.9 million.
Variable interest entities: Exol investment, funding commitments and exposure · Filed 05/08/2026
If the VIE’s commitment under the Exol Commercial Agreement was taken into consideration, there would be no maximum exposure to loss presented as the VIE’s commitment under the Exol Commercial Agreement exceeds the Company’s future funding commitments.
Variable interest entities: contractual termination reimbursement offset · Filed 05/08/2026
The Company has a history of cumulative pre-tax losses for the three previous fiscal years which it believes represents significant negative evidence in evaluating whether its deferred tax assets are realizable.
Income taxes: three previous fiscal years of cumulative pre-tax losses · Filed 05/08/2026
In fiscal year 2025, the annual grants for senior executives were made in late January 2025 and were comprised of 67% RSUs and 33% PSUs.
Executive compensation: actual fiscal 2025 annual grant mix · Filed 16/01/2026
PSUs are also designed to balance long-term value creation with an immediate focus on delivering key financial results, ensuring alignment with both near-term objectives and our sustained growth strategy as follows: PSU Weight Performance Metrics Weight Performance Period Award Payout Cumulative Revenue (1) FY25 – FY27 Any awards earned will vest after end of three-year period Cumulative Adjusted Free Cash Flow (2) Revenue FY25 Any awards earned will vest on third anniversary of grant date Adjusted Free Cash Flow (3) (1) We define “Cumulative Revenue” as total revenue over a three-year period.
Executive compensation: PSU metrics and performance periods · Filed 16/01/2026
We define it as “Adjusted EBITDA” less purchases of property and equipment and capitalization of internal use software development costs.
Executive compensation: adjusted free cash flow definition · Filed 16/01/2026
PSUs Earned for Fiscal Year 2025 Based on the results, the Compensation Committee determined that 92% of the target PSUs for the fiscal year 2025 portion of the 2025-2027 award (weighted 30%) were earned for the performance cycle.
Executive compensation: fiscal 2025 PSU performance determination · Filed 16/01/2026
These PSUs will vest as settled in shares of our common stock on the third anniversary of the grant date.
Executive compensation: future vesting of earned PSUs · Filed 16/01/2026
Cohen did not receive any cash or equity compensation from us for his services as our Chairman or as our President and CEO for fiscal year 2025.
Executive compensation: CEO fiscal 2025 compensation · Filed 16/01/2026
Our board of directors has determined that all members of the board of directors, except Richard Cohen, are independent directors, including for purposes of the rules and regulations of the SEC and Nasdaq.
Corporate governance: board independence determination · Filed 16/01/2026
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of September 27, 2025, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and our report dated November 24, 2025 expressed an adverse opinion.
Independent auditor report: adverse internal control opinion · Filed 24/11/2025
Notwithstanding the material weakness in internal control over financial reporting, our management, including our Chief Executive Officer and Chief Financial Officer, have concluded that our consolidated financial statements present fairly, in all material respects, our financial position, results of our operations and our cash flows for the periods presented in this Quarterly Report on Form 10-Q, in conformity with U.S.
Controls and procedures: continuing material weakness · Filed 05/08/2026
Material Weakness Remediation Plan Management has developed a remediation plan, which it began implementing during fiscal year 2025, that includes the following elements: •redesign of the operational processes and evidence requirements for the receipt of goods and services, with a focus on data around documenting the timing of the receipt of goods and services; 48 Table of Contents •implementing additional compensating controls over the timing of the receipt of goods and services, with a continued focus on milestone related expenses; •training of the employees of the organization receiving goods and services; and •implementing a long term ERP system solution to manage vendors which will automate certain aspects of goods and services receipts in fiscal year 2027.
Controls and procedures: remediation implementation and planned ERP solution · Filed 05/08/2026
C&S Wholesale Grocers, Inc. (“C&S”) Our founder, Chair, President and CEO, Richard Cohen, also serves as the executive chairman of C&S; and he and trusts for the benefit of his family are the substantial majority stockholders of that company.
Related party transactions: CEO relationship with C&S · Filed 16/01/2026
No services were provided to us by Grant Thornton LLP other than in accordance with the pre-approval policies and procedures described above since the adoption of those policies and procedures in 2024.
Audit committee: compliance with service pre-approval procedures · Filed 16/01/2026
The substantial majority of our software is sold as a perpetual on-premise license, however, we do sell an immaterial amount of term-based on-premise licenses.
Revenue: predominantly perpetual on-premise software licenses · Filed 05/08/2026
