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Jun 30, 2025
Smartrent Q2 2025 Earnings Report
SmartRent reported its second quarter 2025 financial results, with revenues totaling $38.3 million and a net loss of $(10.9) million.
Key Takeaways
SmartRent experienced a challenging second quarter in 2025, with total revenue decreasing by 21% year-over-year to $38.3 million, primarily due to a strategic shift away from bulk hardware sales. Despite this, Annual Recurring Revenue (ARR) increased by 11% to $56.9 million, and SaaS revenue grew by 10% year-over-year, now representing 37% of total revenue. The company expanded its cost reduction program to $30 million in annualized savings and maintains a strong liquidity position with $105.0 million in cash and no debt.
Total revenue for Q2 2025 was $38.3 million, a 21% decrease from the prior year, driven by lower hardware revenues.
Net loss increased to $(10.9) million in Q2 2025, up from $(4.6) million in the prior year, primarily due to lower hardware revenue and one-time expenses.
Annual Recurring Revenue (ARR) grew by 11% to $56.9 million, and SaaS revenue increased by 10% year-over-year, now comprising 37% of total revenue.
The company expanded its cost reduction program to target $30 million in annualized savings, aiming for Adjusted EBITDA and cash flow neutrality exiting 2025, while maintaining a strong cash position of $105.0 million.
Revenue by Segment
Forward Guidance
SmartRent is focused on achieving Adjusted EBITDA and cash flow neutrality on a run rate basis exiting 2025, driven by an expanded cost reduction program targeting $30 million in annualized savings. The company expects the impact of its strategic shift away from bulk hardware sales to normalize later in the year.
Positive Outlook
- Expanded cost reduction program targeting at least $30 million of annualized expense reductions.
- Expectation to achieve Adjusted EBITDA neutrality on a run rate basis exiting 2025.
- Expectation to achieve cash flow neutrality on a run rate basis exiting 2025.
- Continued investment in growth acceleration through innovative new products and capabilities.
- Progressive infusion of AI into products and operations.
Challenges Ahead
- Impact of deliberate decision to cease bulk hardware sales on 2025 growth trends.
- Near-term sales challenges despite continued expansion of installed base.
- Increased net losses in Q2 2025 compared to prior year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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