SmartRent (SMRT) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $36.2 million, down 11% year-over-year, as the company shifted from hardware to SaaS-focused revenue, with SaaS now 39% of total revenue and ARR up 7% to $56.9 million.

• Net loss improved by $3.6 million to $(6.3) million, and Adjusted EBITDA improved by $0.9 million to $(2.9) million, driven by a completed $30 million cost reduction program.

• Units Deployed reached 870,230, up 11% year-over-year, with New Units Deployed up 49% to 22,644 in Q3 2025.

• Maintained strong liquidity with $100 million in cash, no debt, and a $75 million undrawn credit facility, supporting reinvestment and growth.

• Customer net revenue retention was 113%, property net revenue retention 104%, and churn remained low at 0.05%.

Financial highlights

• SaaS revenue grew 7% year-over-year to $14.2 million, now 39% of total revenue; hardware revenue declined 38% to $11.5 million, and professional services revenue rose 113% to $7 million.

• Gross margin was 26% (down from 33% year-over-year), impacted by non-recurring inventory charges and lower hardware margins.

• Net loss improved 36% year-over-year to $6.3 million; adjusted EBITDA loss improved 23% to $2.9 million.

• Net cash burn reduced by 79% year-over-year to $5 million.

• Cash and cash equivalents were $100 million at quarter-end.

Outlook and guidance

• On track to achieve adjusted EBITDA and cash flow neutrality on a run rate basis exiting 2025, leveraging SaaS margin strength and cost reductions.

• Expect continued expansion of installed base and ARR, with investments in sales and platform capabilities.

• Project hardware revenue and deployment volume to normalize as bulk hardware sales phase out.

• Liquidity is expected to remain strong, supporting profitable growth and reinvestment.