Shares of robotics company Symbotic (SYM 16.20%) were under pressure this week following the announcement of a share offering on Wednesday. This announcement came on the heels of the company's fourth-quarter report last week, which was mixed in relation to analysts' expectations. Symbotic stock was down 25.2% for the week as of Thursday at 12:50 P.M. ET, according to data provided by S&P Global Market Intelligence.
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Raising cash
Symbotic disclosed in an SEC filing on Wednesday that it will sell 6.5 million Class A shares as part of a share offering. An additional 3.5 million shares will be offered by an entity controlled by Softbank.
This share offering comes soon after Symbotic reported its fourth-quarter results. The company reported revenue of $618 million, up from $565 million in the prior year period, along with a net loss of $19 million. For the first quarter of fiscal 2026, Symbotic expects to produce revenue between $610 million and $630 million.
Symbotic had plenty of cash on hand at the end of the fourth quarter, with cash and cash equivalents totaling $1.24 billion. However, a near-doubling of deferred revenue, which produced considerable free cash flow during fiscal 2025, was responsible for a large influx of cash. That deferred revenue is likely related to the deal the company signed with Walmart earlier this year.
NASDAQ: SYM
Key Data Points
Buy the dip in Symbotic stock?
Symbotic may be selling stock to capitalize on its soaring stock price. Shares of Symbotic have gained around 160% this year, even after this week's plunge. At the current stock price, selling 6.5 million shares will raise more than $400 million in cash.
The cash raise could also be related to an expected revenue disruption during fiscal 2026. The company is rolling out its next-generation storage structure, and it expects a "realignment of deployment," according to CFO Izilda Martins.
Either way, the share sale appears to be a minor issue. Valuation could be part of the problem, given the company's market capitalization of nearly $40 billion. While the company's robotic warehouse technology is gaining traction, investors should tread carefully.
