SmartRent (SMRT) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $41.3 million, down 18% year-over-year, as the company shifted from hardware-led growth to a SaaS-focused model, with ARR reaching $55.9 million, up 17% year-over-year.

• Net loss widened to $40.2 million from $7.7 million, primarily due to a $24.9 million goodwill impairment charge.

• Leadership transition included CEO departure and interim appointment, with a search for a permanent CEO underway.

• Over $10 million in cost reductions executed, supporting a strong cash position of $125.6 million and no debt.

• Board strengthened with new members and ongoing focus on operational restructuring and value creation.

Financial highlights

• SaaS revenue grew 17% year-over-year to $14.0 million, now 33–34% of total revenue; SaaS ARPU increased 5% to $5.69.

• Hardware revenue declined 35% to $18.8 million; professional services revenue rose 13% to $3.9 million.

• Gross margin was 32.8–33%, down from 38–38.5% last year, mainly due to lower hardware volume and product mix shift.

• Adjusted EBITDA was negative $6.4 million, a decline from the prior year.

• Cash and equivalents at quarter-end were $125.6 million, with no debt and a $75 million undrawn credit facility.

Outlook and guidance

• No formal sales outlook provided due to macro uncertainty and deferred customer capital expenditures.

• Management expects meaningful improvement in net cash use in the second half of 2025 as cost savings take effect.

• 2025 is a foundation-building year with SaaS growth; sustainable growth expected to accelerate in 2026.

• Focus remains on recurring SaaS revenue, operational discipline, and customer-centric execution for long-term growth.