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Sep 30
Smartrent Q3 2025 Earnings Report
SmartRent reported a decrease in total revenue but an increase in annual recurring revenue, alongside improved net loss and Adjusted EBITDA for the third quarter of 2025.
Key Takeaways
SmartRent, Inc. reported third-quarter 2025 financial results with total revenue of $36.2 million, an 11% decrease year-over-year, primarily due to a strategic shift away from bulk hardware sales. However, Annual Recurring Revenue increased by 7% to $56.9 million, now representing 39% of total revenue. The company significantly improved its net loss to $(6.3) million and Adjusted EBITDA to $(2.9) million, driven by a cost reduction program.
Total revenue for Q3 2025 was $36.2 million, an 11% decrease from the prior year, mainly due to reduced bulk hardware sales.
Annual Recurring Revenue grew by 7% to $56.9 million, now accounting for 39% of total revenue, indicating a shift towards a more sustainable, SaaS-focused revenue mix.
Net loss improved by $3.6 million to $(6.3) million, and Adjusted EBITDA improved by $0.9 million to $(2.9) million, largely due to the company's cost reduction program.
The company completed a $30 million annualized expense reduction program and maintains a strong liquidity position with $100 million in cash and an undrawn $75 million credit facility.
Smartrent
Smartrent
Smartrent Revenue by Segment
Revenue by Segment
Hardware Revenue
CapyFin.comProfessional Services Revenue
CapyFin.comHosted Services Revenue
CapyFin.comSaaS Revenue
CapyFin.com Forward Guidance
SmartRent expects to continue expanding its installed base and leveraging AI to deliver greater ROI, aiming for Adjusted EBITDA and cash flow neutrality by the end of 2025.
Positive Outlook
- Expects continued significant expansion of the installed base.
- Plans to capitalize on investments in the sales organization.
- Aims to expand platform capabilities and leverage AI for greater ROI to property owners and operators.
- Believes cost structure reset will result in Adjusted EBITDA and cash flow neutrality on a run rate basis exiting 2025.
- Anticipates ending the year with a strong liquidity position and flexibility to drive profitable growth and build long-term operating leverage.
Challenges Ahead
- No specific negative forward guidance was provided in the report.
- No specific negative forward guidance was provided in the report.
- No specific negative forward guidance was provided in the report.
- No specific negative forward guidance was provided in the report.
- No specific negative forward guidance was provided in the report.
Revenue & Expenses
Visualization of income flow from segment revenue to net income