Company: IOT
Filing Date: 2025-12-09
Form Type: 10-Q
Source: 0001628280-25-056069
Chunk: 74

Company: Samsara Inc.
Filing Date: 2025-12-09
Form: 10-Q
Item: Part I, Item 1
Chunk 74
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Cost of revenue increased by $52.6 million, or 24%, for the nine months ended November 1, 2025 compared to the nine months ended November 2, 2024, primarily due to $24.0 million of increased cloud and cellular costs associated with our product offerings, $19.6 million of increased connected device costs, and $4.5 million of increased employee-related costs, which included a $3.3 million increase in salaries and benefits and related employer taxes and a $1.2 million increase in stock-based compensation expense. The increases in cloud and cellular costs and connected device costs were primarily due to increased sales volume year-over-year.

Our gross margin increased to 77% for the nine months ended November 1, 2025 compared to 76% for the nine months ended November 2, 2024, mainly due to operational efficiencies in connected device costs and direct labor costs.

Research and Development

Research and development expense is summarized as follows (in thousands, except percentages):

Three Months EndedChangeNine Months EndedChangeNovember 1,2025November 2,2024Amount%November 1,2025November 2,2024Amount%Research and development$86,219$76,990$9,229 12%$255,073$226,439$28,634 13%Percentage of revenue21%24%22%25%

Research and development expense increased by $9.2 million, or 12%, for the three months ended November 1, 2025 compared to the three months ended November 2, 2024, primarily due to a $4.6 million increase in employee-related costs, which included a $4.0 million increase in stock-based compensation expense and a $0.6 million increase in salaries and benefits and related employer taxes, primarily due to increased headcount. The increase in research and development expense was also due to a $2.0 million increase in cloud and cellular costs associated with product development and a $1.6 million increase in costs associated with software subscriptions and office facilities.

27

Research and development expense increased by $28.6 million, or 13%, for the nine months ended November 1, 2025 compared to the nine months ended November 2, 2024, primarily due to a $17.1 million increase in employee-related costs, which included a $11.5 million increase in stock-based compensation expense and a $5.6 million increase in salaries and