SmartRent (SMRT) Q4 2025 earnings summary

Executive summary

• Achieved first year-over-year revenue growth in seven quarters, with Q4 2025 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.

• Installed base reached 890,870 units, up 10% year-over-year, supporting recurring revenue growth.

• Adjusted EBITDA turned positive at $0.2 million in Q4 2025, with net loss improving to $3.2 million from $11.4 million in the prior year.

• Ended the year with $105 million in cash, no debt, and a fully 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, hardware revenue was $12.5 million, and professional services $5.9 million.

• Full-year total revenue was $153.3 million, down 13% year-over-year due to a shift away from bulk hardware transactions; SaaS revenue for the year was $57.8 million, up 12%.

• Core revenue (excluding hub amortization) grew 12% in Q4 to $33.8 million; full-year core revenue was $136.9 million.

• Q4 gross margin expanded by 990 basis points to 38.6%; hosted services gross margin reached 75.7%.

• Operating expenses in Q4 were $18 million, down 22% year-over-year; full-year operating expenses were $88.9 million, down 13%.

Outlook and guidance

• Targeting 1 million installed units within 4-5 quarters and over 1.2 million units by 2028, with recurring revenue and margin improvements.

• Double-digit ARR and installed base growth expected through 2028, driven by platform, AI, and analytics investments.

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

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