SmartRent (SMRT) Q4 2025 earnings summary

Executive summary

• Achieved first year-over-year revenue growth in seven quarters in Q4 2025, with total revenue up 3% to $36.5 million, driven by SaaS expansion and installed base growth.

• Annual Recurring Revenue (ARR) increased 13% year-over-year to $61.6 million, now representing 42% of total revenue.

• Adjusted EBITDA turned positive at $0.2 million in Q4, with net loss improving to $3.2 million from $11.4 million prior year.

• Strategic plan Vision 2028 targets double-digit installed base growth and higher profitability through operational scale and platform enhancements.

• Ended 2025 with $105 million in cash, no debt, and an undrawn $75 million credit facility.

Financial highlights

• Q4 2025 total revenue was $36.5 million, up 3% year-over-year; SaaS revenue grew 13% to $15.4 million.

• Full-year 2025 revenue was $152.3 million, down 13% year-over-year due to transition away from bulk hardware sales.

• Gross margin for Q4 expanded 990 basis points year-over-year to 38.6%; full-year gross margin was 32.7%.

• Net loss improved to $3.2 million in Q4; full-year net loss was $60.6 million, impacted by a $24.9 million goodwill impairment.

• Adjusted EBITDA for Q4 was $0.2 million; full-year Adjusted EBITDA loss was $16.4 million.

Outlook and guidance

• Targeting 1 million installed units within 4-5 quarters and over 1.2 million by 2028, with double-digit installed base CAGR expected.

• Expects double-digit ARR and total revenue growth in 2026, driven by expanding deployed unit footprint.

• Anticipates positive Adjusted EBITDA and free cash flow for full-year 2026.

• Continued investment in platform, AI, and analytics to drive customer ROI and operational leverage.

• Hub amortization revenue expected to decrease to less than $5.0 million in 2026.