Good afternoon and welcome to Samsara's Second Quarter Fiscal 2026 Earnings Call. I'm Mike Chang, Samsara's Vice President of Corporate Development and Investor Relations. Joining me today are Samsara's Chief Executive Officer and Co-Founder, Sanjit Biswas, and our Chief Financial Officer, Dominic Phillips. In addition to our prepared remarks on this call, additional information can be found in our shareholder letter, press release, investor presentation, and SEC filings on our Investor Relations website at investors.samsara.com. The matters we'll discuss today include forward-looking statements. Actual results may differ materially from those contained in the forward-looking statements and are subject to risks and uncertainties described more fully in our SEC filings. Any forward-looking statements that we make on this call are based on assumptions as of today, September 4th, 2025, and you undertake no obligation to update these statements as a result of new information or future events unless required by law. During today's call, we will discuss our second quarter fiscal 2026 financial results. We'd like to point out that the company reports non-GAAP results in addition to, and not as a substitute for, or superior to financial measures calculated in accordance with GAAP. We also report both actual and constant currency growth rates for certain metrics. On the call, we will only provide constant currency commentary when there is a material difference. Reconciliations of GAAP to non-GAAP financial measures and additional information on constant currency are provided in our press release and investor presentation. We'll make opening remarks, dive into highlights for the quarter, and then open the call for Q&A. With that, I'll hand over to Sanjit. Thanks, Mike, and thank you everyone for joining us today. Samsara delivered another strong quarter of durable and efficient growth. We ended Q2 with $1.6 billion in ARR, growing 30% year- over- year. Our $100,000+ ARR customers now contribute close to $1 billion of ARR, up 35% year- over- year, and now represent 59% of our total ARR. In Q2, we added 17 customers with more than $1 million in ARR, a quarterly record. Our $1 million plus ARR customers crossed an important milestone in Q2. They now generate more than 20% of our ARR, or approximately $350 million. Our strategy to partner with the world's largest and most complex operations organizations is working and is fueling our growth at scale. In Q2, we partnered with many large enterprises, including Alaska Airlines, the fifth largest airline in the U.S., SRM Concrete, the largest ready-mix concrete provider in the U.S., and one of the largest Fortune 1000 rental equipment companies in North America. We're excited to work with these industry leaders and help them operate smarter. As we grow our customer base, we're also scaling our data asset. We reached another company milestone in Q2. We now process approximately 20 trillion data points annually on our platform. Our unique and proprietary data asset is not found on the internet. It pulls data from gateways, cameras, and sensors that we've deployed across our customers' vast operations with breadth across diverse asset types and markets and geographies. We're proud to partner with our customers to build the world's largest physical operations data set, which provides us unique visibility into where and how customers run their operations. Combining this with AI, we're delivering actionable insights that solve their toughest challenges. In June, we hosted our biggest customer conference yet, Samsara Beyond. During the three-day event, thousands of leaders joined us to hear about our newest innovations and to share their feedback and insights. We also learned about the challenges they're facing, including increased demand to build AI infrastructure, safety risks, capital expenditure costs, and employee churn. These conversations make our customers' top priorities clear. We're seeing a notable shift towards AI and automation as they modernize manual processes. They want a single unified platform to manage their complex operations. They want to extend risk management from vehicles into the field to protect their workers and to use digital tools to help with high employee turnover and labor shortages. Our customers are increasingly turning to AI to help them scale their output while running safer, more efficient, and more sustainable operations. During Beyond, we also hosted our Connected Operations Award ceremony. We celebrated 17 global customers who achieved an outsized impact with our platform. I'd like to share some of the highlights from a few of our winners. Maxim Crane, a leading crane rental company in the U.S., was our most innovative workforce winner. They saved $13 million in maintenance costs by shifting their maintenance program from reactive to proactive. They also saw a 94% reduction in harsh driving and an 87% reduction in speeding. Another winner was Mohawk Industries, the largest flooring manufacturer in the world. They won excellence in systems efficiency. They saved $7.75 million by using planned versus actual analysis to reduce their mileage by 4.2 million mi. They saved an additional $500,000 from right-sizing their fleet. They also saw safety gains, including a 54% reduction in speeding. We are proud to partner with our customers to make a real-world impact on their operations. Our Connected Operations Cloud platform is solving our customers' toughest challenges. As we scale to over 20,000 core customers, our flywheel of innovation is accelerating. We build products for our customers that deliver a clear and fast ROI. As our customers use these products, they contribute data to the platform. This growing data asset then allows us to build new products. This is fueling the expansion of our platform at an unprecedented rate, and I'm excited about the opportunity to deliver even more customer impact through our platform. At Beyond, we announced a record number of new products and features. These products help our customers by protecting their frontline workers, modernizing the frontline worker experience, improving asset maintenance, and optimizing asset utilization. Safety is a top priority for leaders. Driving is one of the 10 most dangerous jobs in the U.S., with fatal crashes up 49% in the past decade and insurance premiums up 40%. Leaders also want to modernize their frontline worker experience to improve productivity and are looking for new ways to improve asset maintenance and utilization as rising costs and high interest rates are creating pressure to reduce capital expenditures. To help our customers with these challenges, we launched new products including asset maintenance, which helps organizations monitor and manage the upkeep of their vehicles and equipment, commercial navigation, which is tailored to the unique constraints of large commercial vehicles, route planning, which creates and optimizes routes with fewer miles and vehicles, AI multicam, which gives drivers real-time 360-degree video coverage around any vehicle, and worker safety, which protects frontline workers wherever they work. It's never been a more exciting time partnering with our customers to improve their operations. As we build for the long term, we're investing in innovation to meet our customers' evolving needs, our open platform and partner ecosystem, and our leadership and culture. First, we announced many new features in addition to our new products at Samsara Beyond. For our customers' frontline workers, we redesigned our driver app to be more intuitive and engaging with streaks and short training videos. We also built new AI-enhanced DVIRs to help workers improve compliance and accuracy. To help reduce risk, we built weather intelligence, which provides real-time ground-level weather insights. All of these new features are broadly available to our customers, and we're looking forward to increasing our customer impact. Second, our open ecosystem and the work of our partners are central to our success. We've now expanded our partner ecosystem to over 350 integrations, and our largest customers, on average, are using six of them. This demonstrates the value of partnerships in helping customers unify their operations. We're continuously building on this by adding dozens of new partners, including Element, Rivian, HappyRobot, and Marsh. We're also deepening our existing integrations to provide even greater value. Lastly, I'm happy to share that Gary Steele has joined our Board of Directors. Gary is a proven leader with over 30 years of leadership experience in the technology industry. His expertise in enterprise software and AI will be invaluable as we continue to drive multi-product adoption and deliver clear ROI for our customers. We're confident that his contributions will be a great asset, and we look forward to working with him. We're seeing great customer impact as we continue to scale. Our Connected Operations Cloud now sees approximately 20 trillion data points, 300 million digitized workflows, and 90 billion mi annually. With this data, we're driving actionable AI-powered insights to help our customers achieve even more ROI from our platform. Each year, we compound the impact we can make for our customers, and we're excited for the decades-long opportunity ahead. We want to thank all of the Samsarians, customers, partners, and investors for joining us on this journey. I'll now hand it over to Dominic to go over the financial highlights for the quarter. Thank you, Sanjit. Q2 was another quarter of durable growth and improved profitability. The quarter was highlighted by strong performance across several key metrics, including another quarter of 30%+ year-over-year growth at a larger scale, 19% year-over-year net new ARR growth, which accelerated sequentially at a larger scale, 17 new $1 million+ ARR customers, which was a quarterly record, more than 20% of total ARR from $1 million+ customers, and year-over-year ARR growth for this cohort accelerated sequentially at a larger scale. Approximately $1 billion of ARR from $100,000+ ARR customers, an increase of 35% year-over-year and representing 59% of total ARR, and 8% of net new ACV from new products launched since last year. While we experienced a few elongated sales cycles in Q1 following Liberation Day, all of the impacted larger transactions closed in Q2, which contributed to our strong growth, and we didn't experience further tariff-related impact in the quarter. Looking ahead, we believe we are well positioned to deliver durable growth and create long-term shareholder value for a few key reasons. First, we have a unique defensible data advantage. By instrumenting physical assets, we generate a large and growing proprietary data asset that cannot be replicated or sourced from the internet. Second, AI is accelerating our innovation, and we are releasing new products and meaningful features at a faster pace, driving higher customer engagement and usage. Third, our business model scales with physical assets rather than headcount or knowledge workers and aligns us to end markets that are poised to benefit from major initiatives like the global AI infrastructure buildout. Fourth, our products have a differentiated value prop and mission-critical workflows that deliver fast and tangible ROI with quick payback periods that make us essential to our customers' operations. Lastly, we're targeting the large and less discretionary operations budget, which represents approximately 80% of our customers' revenue on average. Because we help them optimize this significant and durable cost base, we have a large opportunity to drive customer impact and long-term growth. Now, taking a look at our Q2 results, Q2 ending ARR was $1.64 billion, an increase of 30% year-over-year. Within that, we added $105 million of net new ARR, an increase of 19% year-over-year, accelerating sequential growth at a larger scale. Q2 revenue was $391 million, growing 30% year-over-year, or 31% in constant currency. Several factors drove our strong top-line performance in Q2. First, we focus on serving large enterprise customers to drive efficient growth at scale. In terms of large deals, we signed seven $1 million plus net new ACV transactions in Q2, our second highest quarter ever. This reflects the success of our investments to support larger customer opportunities. At the same time, larger deals have inherently longer and less predictable sales cycles, which means that their timing may introduce more variability into our quarterly results than in the past. In terms of large customers, we ended Q2 with approximately $1 billion of ARR from $100,000+ ARR customers, an increase of 35% year-over-year, representing 59% of total ARR, up from 57% one year ago. We also ended Q2 with 147 $1 million plus ARR customers, including a quarterly record increase of 17. $1 million plus ARR customers contributed more than 20% of total ARR, and year-over-year growth from this cohort accelerated sequentially at a larger scale. Second, landing new customers remains a key driver of our growth strategy that fuels future expansion opportunities. In terms of new customers, we added our third highest number of net new core customers in Q2, surpassing more than 1,000 for the fourth time in the past five quarters. Nine of the top 10 new logos adopted two or more products, and eight of the top 10 adopted three or more products in their initial transactions. These new logos included two public sector customers, one with a state-level department and another with one of the largest counties in the U.S., a top five U.S. airline, one of the largest employee-owned electrical contractors, and the U.K. subsidiary of one of the largest global retailers, which adopted four products in its initial contract: video-based safety, vehicle telematics, connected workflows, and connected training. In terms of expansions, all 10 of the top 10 expansions in Q2 included at least two products, and five of the top 10 included three or more products. Additionally, 15 of our top 25 ARR customers expanded in Q2, and we achieved our target dollar-based net retention rate of approximately 115% for core customers. Third, we demonstrated strong execution across several frontier markets. In terms of international, 15% of net new ACV came from non-U.S. geographies, the largest of which was Europe, which accelerated net new ACV growth sequentially to its highest level in the last four quarters. In terms of end markets, we saw momentum across construction, public sector, and manufacturing. Construction drove the highest net new ACV mix of all industries for the eighth consecutive quarter and delivered its highest net new ACV mix in the last six quarters. Public sector strength came from wins across several state departments, including Nebraska DOT, as well as large municipalities, including the City of Nashville and a leading passenger transit agency in Los Angeles. Manufacturing delivered its highest net new ACV mix ever, led by SRM Concrete, the largest U.S. ready-mix concrete provider. Their initial purchase included video-based safety, vehicle telematics, equipment monitoring, connected workflows, and commercial navigation. In a pilot, they saw faster accident response times with connected workflows, exonerated drivers in not-at-fault accidents, improved job site efficiency with real-time visibility, and improved customer experience through more on-time deliveries using commercial navigation. In terms of emerging products, 8% of our net new ACV in Q2 came from our new products launched in the past year, led by asset tags, connected workflows, connected training, asset maintenance, AI multicam, and commercial navigation. This quarter, we signed our largest-ever asset tags deal with Bonnie Plants, the largest U.S. supplier and producer of vegetable and herb plants. They deployed 15,000 asset tags to track their owned and leased cart fleet, reducing asset loss and theft while improving worker efficiency. In addition to driving strong top-line growth, we continued to deliver operating leverage across our business as we scale. Non-GAAP gross margin was 78% in Q2, up 1 percentage point year-over-year. Non-GAAP operating margin was 15%, up 9 percentage points from one year ago. Free cash flow margin was 11% in Q2, up 7 percentage points year-over-year. Now turning to guidance, which is based on FX rates as of August 2nd. For Q3, we expect revenue to be between $398 million and $400 million, representing 24% year-over-year growth or 23%- 24% growth in constant currency. Non-GAAP operating margin to be 15% and non-GAAP EPS to be between $0.11 and $0.12. For full-year FY 2026, we expect revenue to be between $1.574 billion and $1.578 billion, representing 26% year-over-year growth. Non-GAAP operating margin to be 15% and non-GAAP EPS to be between $0.45 and $0.47. Please see the additional modeling notes in our shareholder letter. To wrap up, in Q2, we delivered high growth at scale while also delivering operating efficiency gains. Looking ahead, we believe Samsara is well positioned to sustain durable and efficient growth because we generate a unique, defensible data asset that powers differentiated AI innovation and deeper customer engagement. We are aligned with secular growth in physical operations that is poised to benefit from major initiatives such as the global AI infrastructure buildout. We deliver tangible ROI through mission-critical workflows and help customers achieve fast payback periods on their investments. We look forward to building on this momentum as we help our customers operate more safely, efficiently, and sustainably at a greater scale. With that, I'll hand it over to Mike to moderate Q&A. Thanks, Dominic. We will now open the line up for questions. When it's your turn, please limit your questions to one main question and one follow-up question. The first question today comes from Alex Zukin with Wolfe, followed by Matt Hedberg with RBC. Hey, guys, thanks for taking the question. Maybe the first one is just in terms of the early customer conversations coming out of Samsara Beyond. When you stack rank some of the new product launches that are getting most traction, where you've seen the fastest movement from interest to pilot or deployment, walk through those a little bit and maybe help shape how we should think for even the full year as you look at your guidance that net new ACV growth from new products trending. A quick follow-up. Sure. I'll take that one. Alex, this is Sanjit. Beyond was great. I think a lot of enthusiasm and excitement from the customer base, especially for the new products and features we launched. I would say a number of them are hitting and resonating well. We launched routing and commercial navigation that's relevant in a number of industries that improve safety and efficiency for their operations. We also saw a lot of interest around maintenance and then continued interest in things like asset tags that we launched the previous year but are gaining momentum. With all of these products, it takes some time for these customers to figure out how they're going to adopt them on the platform and the change management for their frontline. These folks often have tens of thousands of frontline workers, so putting a new app in front of them is a big change. That being said, I think we're seeing really positive momentum, trials and pilots in a number of accounts across different industries. We'll come back to you and report on that continued revenue growth. As Dominic highlighted, 8% of the new ACV was coming from these other applications. We're really pleased with the initial momentum. Perfect. Maybe just as a follow-up, Dom, the net new ARR, $105 million, accelerating growth, strong large deal and logo momentum, seems like you really kind of hit it out of the park this quarter with sales execution. Maybe just help us understand how this performance, this bounce back after Q1, how much of that was macro, kind of figuring itself out, how much of that was new product, how much of that was linearity from some of the deals that slipped. Give us a sense for how to think about both that and what looks like a pretty conservative guide for the second half. Yeah, maybe I'll just bifurcate the quarter into kind of the two components, the kind of the macro tariff and then just the strength in the quarter. I think, as I called out in the prepared remarks as we discussed last quarter, there were a few larger deals, I'd say kind of totaling, you know, mid-single-digit millions of net new ACV that we originally had forecasted would come in to Q1 but ultimately pushed to Q2 after the Liberation Day tariff announcements. All of those larger impacted deals closed in Q2. We didn't experience any further impact in the quarter. If you look at the net new ARR growth, really for the first half of the year, combining both kind of this Q1 and Q2, it was in the low double digits. I'd say beyond that, Q2 was really strong. I think the big callout is just the large customer momentum now doing almost $1 billion of ARR from our $100,000 + ARR customers, up 35% year- over- year. We're starting to see more traction out of our $1 million plus ARR customers, landing a quarterly record 17. That cohort is now driving more than 20% of overall ARR. That definitely also contributed to the strength in the quarter. Perfect. Thank you, guys. Congrats. The next question comes from Matt Hedberg with RBC, followed by Chris with Morgan Stanley. All right, thanks for taking my questions, guys. Congrats from me as well. Really strong results. I'm curious, building on the new product's success, your traction in AI is notable. In a market where investors are concerned about AI disrupting software, it feels like you guys are well positioned to actually benefit from that. It seemed like that was a real focus of Samsara Beyond. I guess my question is, do you think broader about the product portfolio and the buildout? Do we need to think about new ways to sort of monetize and price and package AI-based functionality? Does any of that evolve as you continue to roll out functionality leveraging the existing data on the platform? Yeah, absolutely. I think we have a lot of exciting things going on with AI. One is it's enhancing the core product experience, which is really beneficial for our customers as they think about their safety and efficiency. We're able to surface deeper insights, help them really make sense of all of this data. As you mentioned, as a byproduct of all this data flowing into the platform, these 20 trillion data points, we can identify new sources of value. For example, one of the features we launched at Samsara Beyond was this ability to go see at a moment's notice the weather, the current weather status anywhere on the roads in the U.S., and really up-to-the-minute sort of views. That's not something that was possible until we had the scale of data and then AI to process it, understand these conditions, help provide it in a privacy-preserving sort of way. I think over time, we will be able to introduce net new products that are enabled by AI. I would also expect that our current products get better and better because of what we're doing with AI. That's great. Dom, you mentioned the largest ever asset tag deal with Bonnie Plants. Great to hear the success. I think we all were excited coming out of that initial product launch. I'm wondering on a deal like that, is there any way to think about how that adds to customer ACV and really how that customer thought about the ROI? You mentioned some of the key reasons in terms of asset inventory, but could you walk us through maybe just some rough idea of sort of an economics of a deal like that? Thanks, guys. Congrats. Yeah, that's an interesting deal because the asset tags was the biggest component of it. Because of the asset tag opportunity, it allowed us to also land with some of our core products, telematics and safety. That really was a big expansion of that. I think in use cases around asset tags, we're really replacing nothing. They were losing these owned and leased carts, and now being able to track them, they're going to be able to save a lot of money in asset loss and theft. A lot of the customers are coming from no technology. They're really just kind of starting out on their digital transformation journey. Being able to deploy technologies to these use cases really can drive a lot of ROI. Thank you. Great. The next question comes from Chris with Morgan Stanley, followed by Michael Turrin with Wells Fargo. Hey, Sanjit. Hey, Dominic. This is Chris on for Keith Weiss here. I wanted to ask about the large customer momentum that you've got going on here, really encouraging to see. You mentioned some of the investments you've been making there to support those larger deals. Could you remind us kind of what those were and how those have progressed versus your expectations and how you look on a go-forward basis of streamlining some more of those bigger deals? I'll take that one. We've been making investments to support these large customers across the board. On the sales side, we have a dedicated team focused on these strategic accounts. More broadly, we have teams that are set up to help them with implementation and change management, adoption of these products across the board, their sustained sort of use and kind of value unlock. On the software side and the product side, we've been making a lot of investments around security, making sure the integrations and the APIs are really robust, set up to operate at scale, technologies like FirstNet, which are relevant for a lot of these large enterprises and more. I would say that it's been a company-wide effort to support the large enterprise. It's great to see us breaking records on that front. The $17 million+ customers was a quarterly record. I think we're going to continue to invest in that area. The other exciting thing is these are very large, complex operations where there's a lot of opportunity to unlock more value. These core products are doing great. As we get to know these customers, we're starting to do workshops with them and find additional areas of value that we can really help. Got it. That's super helpful. Thanks, Sanjit. I want to also follow up on the European success, another quarter of accelerating net new ACV growth there. Are there any specific unlocks or learnings that you've gathered over the past few months and years as you've penetrated into that market that you can bring to the broader international rollout? Yeah, I think it actually kind of dovetails off of what Sanjit said around the large customers. It's just been sustained investment in some of these regions where there's, you know, more commercial vehicles in Europe than there are in North America. You know, making steady investments around go-to-market sales reps, sales engineers, the marketing resources, landing lighthouse customers that can, you know, be referenceable to other accounts, and then making all of the kind of the R&D investments required around the platform, the security, the scalability. We've called out in previous quarters that there are product-specific features that are required, like in Europe, Bridge Strike is really critical. Making those investments has allowed us to have some continued success there. Awesome. Thanks so much, guys. The next question comes from Michael Turrin with Wells Fargo, followed by Jim Fish with Piper Sandler. Hey, great. Can you hear me okay? Sorry, I just clicked over. Yeah, we can hear you. Okay, excellent. I wanted to spend a few moments on a couple of just key points that you're flagging in the prepared remarks. You mentioned the AI infrastructure buildout specifically in the letter. Would be curious to just hear you speak more to where your customers fit within those end markets and how you're prioritizing that opportunity from a go-to-market perspective. Also curious to hear any commentary around what you're seeing from public sector. We can appreciate the diversification, but those two areas I think are particularly in focus right now. Thanks very much. Sure, I'll take that one. You know, AI infrastructure buildout is a really interesting theme. If you think about who our customers are, they're the world of physical operations. These are folks like the construction companies, the field services companies, like the electricians, for example, that are involved in these projects, as well as the electric utilities. Almost all of them are trying to find ways to keep up with this demand and operate smarter. These are very compressed schedules. They demand a lot of efficiency, and they also have to be safe while they're doing all this work. Those would be the end markets that we're seeing that kind of traction in. Specifically, construction had the highest contribution to our net new ACV mix for the eighth quarter in a row. It's really this kind of continued push that we're seeing from these industries. Somewhat related to that in the public sector, this is an area where there are a lot of assets. If you think about all of our towns and cities that we live in, they require infrastructure to operate everything from waste management and school buses to the folks running inspections on the roads. What we're seeing there is that this end market is waking up to how much money can be saved for their citizens by more efficient operations. I think we built the right feature set, and we've also done the right security work to meet the standards that many of these folks have in these state and local opportunities. That's all super interesting. Thanks very much. The next question comes from Jim Fish with Piper Sandler, followed by Matt Bullock with BofA. Hey, guys, I wanted to follow up on one of the prior questions around the big quarter for $1 million plus ARR deals. Is there a way to think about how much of that 20% is being, I'll say, more of a mid-market that is consolidated on top of Samsara as kind of the base versus, say, you know, very upper end of the market, Global 2000, and sort of why now we're starting to see that million-dollar cohort really coming on? Dom, for you, how you're navigating these larger deals in the context of your projections, given the timing uncertainty? Thanks, guys. Yeah, definitely there are examples of some smaller customers that have really expanded and gone more wall to wall across our operations on Samsara, but primarily the majority of the $147 million+ ARR customers that we have today are really large enterprises with complex physical operations, and we're really just scratching the surface in terms of getting started with them, often in our core products. As we've really picked up the pace of our innovation over the last couple of years, I called out a number of deals where customers are landing with three, four, or five products out of the gate. We're finding more of these use cases with the large customers. That was a big driver of the growth in the quarter. Okay, next question comes from Matt Bullock with BofA, followed by Kirk Materne with Evercore. Fantastic, thank you. Great to hear that there was no tariff impact during the quarter, but Sanjit, would love to hear about how some of those conversations have evolved exiting April as things settled down, customers figured out some of those asset procurement strategies. I guess, you know, asked a different way, do we think we're out of the woods here and customers have done kind of the groundwork to continue to stay nimble in an evolving tariff environment? Yeah, Matt, I think you sort of put your finger on it, which was that back in April, it was a little bit of a shock to the system, especially for our customers. These are people operating in very asset-heavy industries, and they procure a lot of equipment, and they had to really take a moment to figure out what their strategies would look like. At this point, there's still uncertainty on the tariff rates themselves, but tariffs appear to be here to stay. What I'm hearing from customers is they've adapted to the environment. They've made their plans. They are trying to find ways to be more efficient with the assets they have. We're seeing them trying to essentially stretch asset lifespans. They do that through smarter asset maintenance programs, which is what we're offering on our platform now. They're also trying to optimize the efficiency and the utilization of these assets, which again, we can provide with our asset products. I think we're well set up to help solve these real problems for them. While there's still uncertainty on the horizon of the specific tariff rates, I think the customers have really adapted to this new environment. Super helpful, Sanjit. A quick one for Dominic, if I could. Certainly a larger net new ARR beat than I think we were all expecting, particularly in the enterprise segment. Can you maybe just help us think about sales productivity trends within that sales organization versus, I know you're obviously building out and adding additional resources in that market specifically, but maybe help us parse through what you think drove that larger beat. I would say the growth in this quarter, Q1, the first half of this year has really been more balanced than maybe it has been in previous years where a couple of years ago we were really adding a lot more capacity, and before that, coming out of COVID, more of the growth was driven out of productivity with lower capacity. I think going into FY 2026, we've really found a nice balance of continuing to add more sales capacity, but seeing really good productivity being driven by a lot of the efforts of the R&D organization, building a lot of the new products that are allowing us to solve even more use cases for customers and allowing our sales reps to be even more productive. We feel good about the balance, and it's going to allow us to continue to make capacity investments going into the second half of the year. Fantastic, thank you. The next question comes from Kirk Materne with Evercore, followed by Alex Sklar with Raymond James. Yeah, thanks very much. Sanjit, I was just wondering, you guys obviously have a much more expansive product portfolio today than you did a couple of years ago. From a go-to-market perspective, how do you make sure that each of these newer products, each of which have a big opportunity in front of them, get the right type of care and feeding from the sales organization? Are you doing anything in terms of spiffs on certain projects or products or specialized sales reps? Just kind of wondering how you're balancing the fact that you guys just have a much more broad-based product portfolio today than a couple of years ago. Thanks. Yeah, Kirk, I think you put your finger on a very practical problem for us, which is we do have a lot to offer our customers. We highlight the value of the platform first and foremost. Most of our customers are not looking to solve just one problem, but they often have many different operational challenges they want technology for. We do have generalist sales reps that are familiar with the portfolio. They have sales engineers and specialists they can call in for additional help if they need to talk about a specific integration or a specific feature on there. Over time, we do experiment with things like spiffs, with specialists, and other kind of tactics, I guess, to help with that. It is an area that we're continuing to focus on. We want to make sure all of these products are successful, and most importantly, that we get the customers the assistance that they're really looking for. Okay, and you highlighted a number of your integration partners this quarter. I was just kind of curious, having those integrations, I think you mentioned your biggest customers have six integrations thereabouts. Is that sort of a check-the-box for your big partner or your big customers, meaning if you didn't have those, that would make the conversation more difficult, or is it a real sort of differentiator when you're going up against other competitors in the market? Thanks. I would say much more of the latter. We're the first company to offer this sort of widespread integration ability, and the quality of the integration matters too. It's one thing to sign a partnership. It's another thing for the data to flow really well, for us to have bidirectional data feeds, things like that. It's an area that our customers are getting a lot of value from. They have been waiting for a company to come in and integrate all of this or really unify all of this data in one place. That's everything from OEM telematics to fuel cards to insurance integrations, payroll providers. There's a lot you can do with this data, a lot of value for the customer. I think it's a huge differentiator for us. Again, the quality of these integrations really matters. These customers have often been burned in the past by vendors that have said they'll do an integration, but it doesn't really work for them. When we're able to show these working out of the box and the quality is excellent, they get excited and they want to do more with us. Thank you. The next question comes from Alex Sklar with Raymond James, followed by Dan Jester with BMO. Hi, this is Jessica on for Alex. Can you hear me? Yes, yes. All right, just a quick question from us. Has there been anything structural about international opportunity and differences in the competitive environment that you think could be gaining from achieving growth at levels similar to what you've been seeing domestically the last few years? It's been really impressive. Also, have you been seeing anything about competitors being more aggressive on pricing as they're trying to see winning deals from you? How is this all interacting? I'll take that one. I would say the set of competitors has been pretty consistent for the last several years for us. There are several of them. Many of them are point solutions or regional players, but we're kind of seeing the same names come up over and over. The way we differentiate, again, is the sort of platform approach, the way we engage with our customers, the amount of value we're able to unlock across our operations. To the second part of your question around pricing, that is often where some of these competitors go, as they'll just discount very heavily in order to try to compete for these deals. We, again, try to really demonstrate that we can do more for these customers, help them find more value. Around 80% of their revenue is invested in their operations. This is a huge area of expense for them. If we can find additional areas of savings, things like that, they're not focused on price. They're focused on what can I do with all this technology. Got it. Thank you. The next question comes from Dan Jester with BMO, followed by Dylan Becker with William Blair. Great, good afternoon, everyone. Thanks for taking my question. A couple of weeks ago, you announced a pre-delivery installation program to get your hardware into trucks before customers buy them. I think in the press release, it said that you expect this to be the standard for the industry over time. Maybe can you just expand on the value of the pre-installation and what kind of maybe competitive moats that provides if you can get the hardware in before the truck even gets shipped to the customer? Thank you. Yeah, absolutely, Dan. I think maybe just for a little bit of customer context, if you're a larger enterprise and you've got 5,000 or 10,000 trucks, in a given year, you're swapping out 1,000 of them, which means that sometimes in a given month or even a week, you've got dozens of vehicles getting changed out. For us to be able to deliver, have those vehicles be delivered with Samsara on board, it really helps eliminate a huge operational headache. Those vehicles may be delivered to different cities all over the country. It's an area where we're able to streamline our customers' operations. It provides a much better experience for them. It makes sure those vehicles are ready to go on day one. It's something that customers have been asking for, and we're excited to be able to offer because of our scale and our presence in the market. Very glad to get that program off the ground. We're continuing to expand that program, partnering with even more OEMs. Hopefully more good news to come on that front. Great, thank you. Maybe just to revisit the sort of strength in the performance in larger customers from a different angle. I know it's less of a focus, but maybe you can talk about what you're seeing with some of your smaller and mid-sized customers that maybe do have a little bit more macro impact. Are you seeing any change in their behavior, or has it been pretty consistent? Thank you so much. Yeah, thanks, Dominic. Yeah, it was very consistent. While we had a very strong large customer, $100,000+, million-dollar plus ARR quarter, we also saw a lot of strength in commercial mid-market. If you just look at the numbers, the ARR mix from $100,000+ customers was 58% last quarter and went up to 59%. It's definitely growing faster than our overall base, but it's not like it stepped up exponentially, which implies that the mid-market and kind of SMB part of our business also had strong growth in the quarter. Great, thank you so much. The next question comes from Dylan Becker with William Blair, followed by Derrick Wood with TD Cowen. Hey, gentlemen, appreciate it. Maybe Dom, starting with you, if we look at the outperformance on the revenue line, kind of a notable step up here. I was wondering if you could kind of help us parse through that a little bit more, whether that was kind of conservatism given some of the uncertainty we saw last year, any linearity of kind of ramp and go lives, obviously some large customer momentum. Help us parse through kind of the revenue outperformance, if you would, please. Yeah, thanks for asking that. I'd say overall, even going into the quarter, and as I look into the backup here, no change to our guidance philosophy. We're still going to try to ensure that we're setting revenue guidance with a lot of confidence, that accounts for various downside scenarios. If we don't see those scenarios ultimately play out, it generally results in us being able to outperform the guidance. For Q2 specifically, there was even more outperformance than normal. Obviously, we got some revenue benefit from the stronger bookings linearity with some of those Q1 deals slipping in and closing early in Q2. We don't have that same dynamic into Q3, and that started the quarter off strong in terms of bookings linearity. You saw that outperformance flow through to the beat in the quarter. Very helpful. Thank you. Maybe for you or Sanjit as well, obviously the emphasis coming out of Samsara Beyond was on the accelerated cadence of new product innovation. Wonder how at the advent of AI, the cost of building and introducing new products and capabilities is helping contribute to some of this enterprise and million plus strength that we're seeing, the receptivity and willingness for them to try more products, but also your ability and appetite to have more irons in the fire over time as well. Thank you. Yeah, Dylan, I think the interest in AI, it's certainly strong in the enterprise. We do see it in the mid-market as well. We collect a tremendous amount of data on the platform. There's a lot of value in that data, but you really do need AI to help you sift through it all, find insights, and really help change behavior. That's ultimately where the value comes from. That's how they get the safety and efficiency gains. I think we're getting a lot of new ideas from our enterprise customers because they have large, complex operations. They're really experts in their various industries. They often lead us to really innovative new solutions, and we kind of co-develop them together. For us, we're excited about what AI is able to do, and the capability sets just changing every year, whether it's large language models or some of these vector databases and other technologies coming to market. We're generally excited about being able to find new sources of value for all kinds of customers, especially in the enterprise, but down in the mid-market and SMB as well. Great, thank you all. The next question comes from Derrick with TD Cowen, followed by Junaid with Truist. All right, thanks guys. Congrats on a great quarter. It's been over a year since the release of asset tags, and just curious, how has the product done versus your expectations? Did we think of this as kind of a long-tail growth dynamic, or is this something that could really start to contribute to larger deals and move the needle more on overall growth as we look out over the next 12 to 18 months? Yeah, we're really pleased with the performance of asset tags. I think it's just notable that it's a product that's addressing a really large problem, where technology, frankly, doesn't exist today. We've got these customers, and they've got all kinds of assets and machinery out there, and they can't locate them. They go lost. They don't know where they are. This is really the first time that this kind of technology, using Bluetooth technology, has really been available for these customers. The product's been out for a year. We've had a lot of good conversations and trials with customers, and it's starting to result in some pretty big deals where we called out Bonnie Plants as our largest asset tag deal ever, 15,000 asset tags in the quarter. We had another really large one, I think, in Q4 a couple of quarters ago. We do expect this will continue to pick up as customers are more aware that this technology exists. I would just add, it takes some time for them to realize that this is now possible. Many of them spend tens of millions of dollars replacing these lost or stolen assets. They spend a lot of time searching for these assets in their operations. They've done it that way for, you know, 25, 50, 100 years. They're starting to realize technology can help, but it's an education process for us. Interesting, thanks. I guess, Dom, of the 8% of net new ACV from new products, is asset tags the biggest component of that? Is there maybe a clear number two within that mix that you'd highlight? It was actually pretty spread out across all of the products that I mentioned. Asset tags definitely had a great quarter, but commercial navigation, workflows, maintenance, navigation all contributed to the 8%. Great, okay, thanks. The next question comes from Junaid with Truist, followed by Matt with Goldman Sachs. Junaid? Okay, let's move on to Matt with Goldman Sachs. Matt? Junaid? Yeah, sorry, can you hear me? Hey, guys, can you hear me okay? Yeah, let's do Junaid first, and then we'll go to Matt. Great, thanks, guys. It seems like you're continuing to add sales capacity and feel pretty confident about the significant opportunity going forward. I just wanted to ask you how you're looking at the growth versus profitability framework going forward. Yeah, I mean, both of them are, you know, important to us. We really focus on kind of balance both growth and profitability. I think this was the fourth consecutive quarter we've been north of a rule of 40. Obviously, even within that, we were able to accelerate our net new ARR year-over-year growth at a larger scale and continue to grow really quickly as a result of the large customer momentum and the strong kind of land and expand quarter and the contribution of the emerging products in new frontiers. Within the construct of wanting to kind of balance both growth and profitability, you know, being over a rule of 40, we feel good about that and then wanting to continue to try to make the investments to grow as fast as we can be on that. Great, thanks. Dom, just on the gross margin, that continues to tick up. I know you've talked about that historically, that most of the margin improvement is going to be below that line. Could you just call out some of the reasons for the strength there and if you can continue to sustain that? Yeah, it comes really across our entire COGS stack and, you know, I think we're up kind of 1% year- over- year. Not a lot of leverage and I think, you know, going from here, we feel good with where, you know, gross margins are and expect much more of the leverage to come from the other OpEx line items. In terms of supply chain and inventory efficiencies, cloud and cellular efficiencies, more leverage out of customer support, all of those kind of line items within COGS are getting a little bit more efficient year over year and, you know, we feel good with those results. Great, thank you. The next question comes from Matt with Goldman Sachs, followed by Andrew with BNP. Hey guys, this is Matt on for Cash. Sanjit, maybe going back to the emerging product net new ACV strength in the quarter, you flagged contributions from a few of the announcements from Samsara Beyond 2025, asset maintenance, AI multicam, commercial navigation. These products have only been in market for a couple of months. I'm curious if you expected this level of momentum this early into the launch and how this may inform your view on emerging product net new ACV contributions looking ahead. Thanks. Yeah, I would say, Matt, a number of these customers that purchased in the quarter, they've been design partners with us, they're going much bigger with it. It's exciting to see that they're ready to go and that the products are working for them at scale. I do think every product has a natural revenue ramp that takes a number of quarters, and we plan to continue enhancing these products over the next couple of quarters too. It's not just that this is the release and that's it. We are going to keep investing, we are going to keep getting more trials in action, but we are very pleased with that initial response we're seeing from the customer base. Awesome, thanks a lot. Great, the next question comes from Andrew at BNP, followed by Mark with Loop Capital. Thanks for fitting me in. I guess I'm just looking at your net new customers that you added over $100,000, looking at how it trended relative to last year. While still good, I noticed it's slowed down slightly. Just wondering, is this a function of the fact that you're landing larger customers or am I missing something? Yeah, I would say, you know, overall it was a really strong large customer quarter. The $100,000+ ARR customers are now doing, you know, about $1 billion of ARR, up 35% year- over- year. They're contributing 59% of the overall ARR, which is up from 57% last year. This is clearly our fastest growing cohort. I think it's important to consider, you know, the ARR, the growth rates, the ARR mix, not just the customer counts. Beyond that, we obviously added a quarterly record, 17 $1 million plus ARR customers, and that's becoming more meaningful to our results as well. Thanks. One on the R&D, I'm just wondering if in terms of this quarter, would you expect this to continue to grow at the consistent rate, or is there something like in terms of efficiency that we've achieved on that that makes it a driver of operating leverage going forward? I think R&D is going to continue to be one of our big areas of investment. We're obviously really focused on adding AI throughout the platform and into all of the products, and then the pace of innovation and products that we've announced over the last couple of years has really picked up, which requires a lot of R&D investment. I don't expect it to materially decrease in terms of the overall leverage, but I also don't expect it to be an area where we're going to start to see the percentage of revenue go in the opposite direction as well. Thanks. The next question comes from Mark with Loop Capital, followed by Alexi with JP Morgan. Hi, thank you for taking my question. Sanjit, the number of products the company sells has increased meaningfully during the past year or so, which can often complicate the selling process. Could you just discuss a little bit about how you've adapted your selling process to accommodate all the new products? Sure. I would say, again, we focus on the value of the platform. We really want to understand our customers' operations. Typically speaking, they'll have vehicles, and safety and telematics will be lead products. Those are products that I think the market's generally familiar with. Along the way, they'll discover that, hey, there's an opportunity to improve training for a lot of these frontline workers, or maybe there's a maintenance opportunity. We try to, again, show our customers the entire platform. We do a lot of demos where they're able to see the breadth of what we offer. Many times, the customers will self-select and say, hey, I actually have a lot of construction equipment in my business, or we're really trying to think through how we do commercial navigation because we have an issue with hazmat or Low Bridge Strikes, all these kind of real-world problems. I view it as, rather than focusing on selling products, really understand the customer's operations, their environment, and then work backward from that. I think our sales team does a great job of really kind of engaging at that level. Great, thanks. Dominic, could you just discuss the hiring that took place in the quarter and just remind us of how you're thinking about hiring for the balance of the year? I think, you know, what we've disclosed is that after two years of really elevated hiring growth that we were going into this year with still adding more headcount, but at a lower rate than what we had to do over the last two years to kind of catch up. We're on track to do that. The plan that we set out at the beginning of the year, we're on track with that and expect to continue to add more headcount into the back half of the year as well. Thank you. Great. Our last question comes from Alexei with J.P. Morgan. Hi, this is Ella Smith on for Alexei Gogolev. Thank you so much for taking our questions. First, I was hoping to ask about landing new customers as that is a focus for you. Are you primarily landing these new customers through telematics and video-based safety, or is it becoming more common to land customers via a non-fleet solution? Yeah, it's definitely becoming more common. I think we called out the number of new logos that added two or more or three more products in the prepared remarks, the majority of the largest new logos. We give a number of examples of the products that customers are adopting. That is becoming increasingly more common. Customers often will land with video-based safety and vehicle telematics, but increasingly we're seeing equipment monitoring and a number of the newer emerging products that we've announced over the last couple of years land in the initial transaction. Got it. Thank you, Dominic. For my follow-up, your experience and strength in the construction segment for some time now, despite the macro data for that industry being somewhat weak, I was curious if you could shed some light on your conversation with your construction customers. Yeah, I'll take that one. I think it's important to understand the construction industry and the context they're coming from. These are customers where they have very asset and labor-intensive operations. For them to get deep visibility into which assets are being used and how much, and if they're operating safely, if they can find labor efficiencies, it makes a really big difference in their operations. This is also an industry that's relatively early in the digitization journey. Most of that yellow iron equipment that you see at job sites isn't well tracked and doesn't have real-time telematics or video safety on it. Most of the small tools that you'll see at a construction site don't have any kind of tracking on them. There is a lot of greenfield opportunity. It's a market that is starting to really wake up to the value of technology, and it's complex. They have to digest it over time, but we're excited about what we're seeing. Great, thank you, Sanjit. Okay, this concludes the question and answer portion. Thank you all for attending our Q2 Fiscal Year 2026 Earnings Call. Before I let you go, I have a few short announcements. We'll be attending the Goldman Sachs Communicopia Conference in San Francisco on September 8th, the Wolf Technology Conference in San Francisco on September 10th, the Piper Sandler Growth Frontiers Conference in Nashville on September 10th, and the Evercore Bus Tour on September 17th. We hope to see you at one of these events. That's it for today's meeting. If you have any follow-up questions, you can email us at ir@samsara.com. Bye, everyone.