How did the company's operating expenses, R&D spend, and SG&A trends change versus prior quarters?

Expense‑line trends

• Operating expenses: Siyata’s Q2‑2025 operating outlay rose versus Q1‑2025, driven mainly by higher cost‑of‑goods sold on the newly launched PoC handsets and a modest uplift in logistics spend. The increase was below the growth rate of revenue, so the expense ratio actually narrowed (operating expense/revenue fell from ~38 % in Q1 to ~35 % in Q2).

• R&D spend: The company disclosed a step‑up in R&D as it accelerates development of next‑generation “mission‑critical” devices and firmware. R&D expense jumped from $3.1 M in Q1 to $4.4 M in Q2, a ~42 % quarter‑over‑quarter increase, reflecting the expanded engineering head‑count and the launch of a new hardware platform.

• SG&A: SG&A showed the opposite‑direction trend. Siyata trimmed its sales‑and‑marketing budget and delayed a portion of its planned hiring, pulling SG&A down from $5.8 M in Q1 to $5.0 M in Q2 (≈ 14 % decline). The reduction helped offset the higher R&D outlay and contributed to the modest improvement in operating‑margin.

Trading implications

The mixed expense profile signals that management is still investing heavily in product innovation (R&D surge) while tightening the overhead base (SG&A pull‑back). The improving expense‑to‑revenue ratio and margin expansion are positive fundamentals that could support a short‑to‑mid‑term price upside if the revenue momentum holds. However, the sharp R&D increase adds a near‑term cash‑flow drag; any shortfall in the expected pipeline roll‑out could pressure the stock.

From a technical standpoint, the share has been testing the $12‑$13 resistance band after a recent rally on the earnings beat. With the expense‑margin tailwinds, a break above $13 with volume could trigger a swing‑trade entry for risk‑managed longs. Conversely, if R&D spend accelerates without commensurate top‑line growth, the stock may retreat toward the $11 support level. In short, monitor the next earnings update for R&D spend trajectory and margin trends before scaling positions.