Symbotic Inc.'s stock is experiencing a decline following the release of its delayed 10-K filing on December 4, 2024. The filing revealed several concerning issues, including an active investigation by the SEC into potential interference with whistleblowers. The company disclosed multiple material weaknesses in its financial reporting, an adverse auditor opinion, and significant discrepancies in its financial projections. These revelations have raised doubts about the reliability of Symbotic's financial statements and its future profitability, particularly in relation to its major contract with Walmart, which accounts for over 90% of its revenue.
The 10-K filing also highlighted a shift in Symbotic's revenue recognition method from a percentage-of-completion to a milestone basis, indicating potential challenges in predicting project costs and customer acceptance. This change, along with the company's restated financials and reduced profit projections, has contributed to investor concerns. Additionally, the forensic analysis by Hunterbrook Media identified seven major financial red flags, further exacerbating the uncertainty surrounding Symbotic's financial health.
Symbotic Inc.'s stock is currently priced at $25.61, reflecting a 1.99% decrease from the previous close of $26.13.