Smartrent — Income Statement, Cash Flows & Balance Sheet
Is SmartRent profitable?
SmartRent is not profitable, and losses deepened significantly in 2025 — though a large one-time charge is the main culprit.
| Item | 2024 | 2025 | Change |
|---|---|---|---|
| Total revenue | $174,885K | $152,326K | -13% |
| Total cost of revenue | $114,547K | $102,457K | -11% |
| Gross profit | $60,338K | $49,869K | -17% |
| Gross margin | 34.5% | 32.7% | -1.8 pts |
| Goodwill impairment charge | $0 | $24,929K | — |
| Loss from operations | $(41,772K) | $(63,976K) | -53% |
| Net loss | $(33,643K) | $(60,558K) | -80% |
Revenue fell meaningfully as hardware sales declined sharply, and gross margins compressed slightly. The operating loss nearly doubled, but roughly $25 million of that is a one-time goodwill impairment charge (triggered by a sustained drop in SmartRent's stock price) rather than an ongoing cash cost. Stripping that out, the underlying operating loss still worsened year-over-year, reflecting the lower revenue base.
SmartRent's recurring software revenue held steady while the hardware-led business continued to shrink.
| Revenue stream | 2023 | 2024 | 2025 | Change (24→25) |
|---|---|---|---|---|
| Hardware | $137,201K | $82,844K | $57,973K | -30% |
| Professional services | $35,473K | $18,803K | $21,133K | +12% |
| Hosted services (SaaS + hub amortization) | $64,164K | $73,238K | $73,220K | ~flat |
| Total | $236,838K | $174,885K | $152,326K | -13% |
Hardware — the least profitable line — has now fallen by more than half over two years, which is actually structurally positive if the mix shifts toward software. Hosted services, which carry meaningfully better margins (hosted services gross margin is roughly 68% vs. essentially breakeven on professional services), held flat in dollar terms and now represent the largest single revenue stream.
Does SmartRent generate cash?
SmartRent is still burning cash, but the rate of cash consumption improved noticeably in 2025.
| Item | 2023 | 2024 | 2025 | Change (24→25) |
|---|---|---|---|---|
| Operating cash flow | $5,981K | $(32,913K) | $(21,575K) | +35% improvement |
| Capital expenditures (PP&E + capitalized software) | $(3,773K) | $(7,599K) | $(8,625K) | -14% |
| Free cash flow (approx.) | $2,208K | $(40,512K) | $(30,200K) | +26% improvement |
| Stock buybacks | $0 | $(28,566K) | $(4,889K) | +83% reduction |
Operating cash burn shrank by roughly a third versus 2024, helped by strong working capital releases — receivables and deferred cost of revenue both converted to cash as the installed base matures. SmartRent also dramatically scaled back its share buyback program, preserving more cash than the prior year.
How strong is SmartRent's balance sheet?
SmartRent carries no debt and has meaningful cash on hand, but the cash pile is shrinking each year.
| Item | 2024 | 2025 | Change |
|---|---|---|---|
| Cash and cash equivalents | $142,482K | $104,550K | -27% |
| Total current liabilities | $71,032K | $60,018K | -16% |
| Total debt | $0 | $0 | — |
| Accumulated deficit | $(347,847K) | $(413,294K) | -19% |
| Total stockholders' equity | $289,435K | $232,139K | -20% |
SmartRent has no drawn debt — its $75 million revolving credit facility remains completely untapped — and current assets comfortably cover current liabilities. However, the company's own filings note it may need to raise additional capital if it cannot reach positive operating cash flow, and management explicitly flagged this as a going concern consideration. At the current burn rate, the cash runway is finite, which is worth watching closely.