Smith Micro Software Inc. (SMSI) — RQD Stock Rating Cockpit

Per the Roarable RQD rating, SMSI scores 28 out of 100 with a letter grade of E, labeled "Roarable Strong Sell — Forensic Risk / Avoid." The five pillars are:

• Fundamental Cash Engine: 7 / 20. The rating cites ROIC of -35% and an FCF yield of 0%, indicating the business is not currently generating returns on invested capital or free cash flow relative to its valuation.
• Whale 13F Flow: 3 / 20. Institutional accumulation and options positioning score poorly, reflecting weak smart-money support in the source data.
• Insider Conviction: 3 / 20. SEC Form 4 and Congressional PTR cluster flow scores poorly, offering no insider signal of confidence.
• Macro Regime Fit: 7 / 20. Beta of 1.0 and sector sensitivity give the stock a neutral-to-weak macro alignment score.
• Forensic Balance Sheet: 8 / 20. Altman Z of 2.5, Piotroski F of 2/9, and Debt/Equity of 0.5 point to a fragile financial profile.

For a prospective investor evaluating the stock today, the implication is that the rating's weakest pillars (cash generation, insider conviction, and institutional flow) are the ones that most directly support a durable upside thesis. The upside case would require a turnaround in cash generation that the source data does not show. Valuation tradeoffs are severe: the stock trades at a $13.1M market capitalization with negative operating margin of -60%, so any investment rests on expectations of a reversal rather than current earnings. The Forensic Balance Sheet pillar adds downside risk if liquidity tightens further. The overall rating signals elevated risk relative to the source-data evidence.

Per the SEC financials, revenue declined from $40.9M in FY 2023 to $17.4M in FY 2025, while operating losses persisted in each period. Per the market data, gross margin is 74.1%, operating margin is -60%, and net margin is -0.2%, with ROIC of -35%. Per the Roarable RQD rating, the Altman Z-Score is 2.5, the Piotroski F-Score is 2/9, and Debt/Equity is 0.5. Cash declined from $2.8M to $1.5M across the reported periods.

Per the recent news feed, six items reference SMSI: a TradingView estimates report (YELLOW, market wire), a Yahoo Finance item referencing a Microsoft earnings beat (GREEN, catalyst), an Orange County Business Journal midday roundup (YELLOW, market wire), a TradingKey top-gainers report (GREEN, catalyst), a Simply Wall St analysis of BeLive Holdings (YELLOW, market wire), and a TradingKey high-dividend-yield piece (YELLOW, market wire). The feed items are generic market coverage; none states a specific company-level event for SMSI. Per the Butterfly Supply-Chain Graph, no supply-chain links or proprietary signals are recorded for SMSI.

Per the Butterfly Supply-Chain Graph, supply_chain is NONE, with no butterfly links and no proprietary signals. Upstream and downstream dependencies are not available in source data. Sector correlation and second-order bottlenecks are not available in source data beyond the sector classification of Technology / Computer Software: Prepackaged Software.

• What are the company's products, customers, and revenue drivers, given that reported revenue fell from $40.9M to $17.4M?
• What is the company's debt position, since debt figures are listed as N/A in every reported period?
• Why are EPS, P/E, and EV/EBITDA unavailable, and what is the earnings trajectory?
• What drove the cash decline from $2.8M to $1.5M, and what is the current runway given negative free cash flow?
• Who are the institutional and insider holders, given that the holders section contains no data?