Symbotic provides update on restatement of FY24 financial results

Symbotic (SYM) filed a Notification of Late Filing on Form 12b-25 with respect to the Annual Report on Form 10-K for the fiscal year ended September 28, 2024. Symbotic has determined that it is unable to file its Annual Report on Form 10-K for the fiscal year ended September 28, 2024 by the prescribed filing due date, without unreasonable effort or expense, because the Company requires additional time to complete its assessment of the financial impacts of correcting an error related to system revenue recognition and the impacts of that error on internal controls over financial reporting. Management has identified in its preliminary assessment of internal control over financial reporting for the fiscal year ended September 28, 2024 certain material weaknesses. The Company is implementing measures designed to improve internal control over financial reporting to remediate these material weaknesses. As disclosed on November 18, 2024 in its earnings press release, as Symbotic was reviewing its business processes and preparing its full year financial statements, the company identified occurrences during fiscal year 2024 where goods and services, primarily relating to specific milestone achievements, were expensed prior to the time that the corresponding milestones were achieved. This resulted in the acceleration of the recognition of cost of revenue. Given that Symbotic recognizes revenue on a percentage of completion basis, this resulted in the acceleration of recognition of revenue. As a result of identifying these occurrences, Symbotic’s earnings press release included restated financial results for the interim quarters of fiscal year 2024.Subsequently, on November 25, 2024, Symbotic identified errors in its revenue recognition related to cost overruns that will not be billable on certain deployments, which additionally impacted system revenue recognized in the second, third, and fourth quarters of fiscal year 2024. As a result, gross profit, income before income tax, net income and adjusted EBITDA were also impacted. The company estimates the total impact of correcting these errors will be to lower system revenue, system gross profit, income before income tax, and adjusted EBITDA by $30 million to $40 million for fiscal year 2024 compared to the financial results released on November 18, 2024. Symbotic will also be amending its Current Report on Form 8-K with respect to this matter to indicate that its financial results for fourth quarter and fiscal year 2024 issued on November 18, 2024 should no longer be relied upon. Symbotic is working diligently and expects to file the Form 10-K and the amended Quarterly Reports on Form 10-Q for the interim periods of fiscal year 2024 on or before the expiration of the fifteen-calendar day extension period.