SmartRent (SMRT) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue declined 21% year-over-year to $38.3M, mainly due to lower hardware sales as the company shifts to a SaaS-focused model, with SaaS revenue reaching $14.2M and now 37% of total revenue.

• Net loss widened to $10.9M from $4.6M in the prior year, with adjusted EBITDA at $(7.3)M; a $24.9M goodwill impairment was recorded in Q1 2025.

• Cost reduction initiatives expanded to $30M in annualized savings, targeting cash flow neutrality by end of 2025.

• Units deployed grew 10% year-over-year to 847,956, with churn at 0.08% and net revenue retention at 108%.

• Liquidity remains strong with $105M in cash, no debt, and a $75M undrawn credit facility.

Financial highlights

• SaaS revenue grew 10–11% year-over-year to $14.2M, now 37% of total revenue; ARR reached $56.9M, up 11% year-over-year.

• Hardware revenue fell 39% to $15.1M; professional services revenue dropped 26% to $4.3M; hosted services revenue rose 5% to $18.8M.

• Total gross profit was $12.7M, down from $17.3M a year ago; SaaS gross margin held at 70%.

• Adjusted EBITDA for Q2 2025 was $(7.3)M, compared to $0.9M in Q2 2024.

• Net loss for Q2 2025 was $10.9M; six-month net loss was $51.0M, including a $24.9M goodwill impairment in Q1.

Outlook and guidance

• Management expects cost reductions and SaaS growth to drive adjusted EBITDA and cash flow neutrality on a run rate basis by end of 2025.

• No formal quantitative guidance for 2026, but leadership anticipates a more predictable, growth-oriented revenue trajectory as hardware headwinds subside.

• Hosted services revenue is expected to grow as the installed base of active subscriptions increases.