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Jun 30
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.
Smartrent
Smartrent
Smartrent Revenue by Segment
Revenue by Segment
Hardware Revenue
CapyFin.comProfessional Services Revenue
CapyFin.comHosted Services Revenue
CapyFin.com 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.
- Increased Adjusted EBITDA losses in Q2 2025 compared to prior year.
- Unspecified duration for the normalization of the impact from the shift in hardware sales strategy.
Revenue & Expenses
Visualization of income flow from segment revenue to net income