Smartrent — Financial Results
Revenue Keeps Falling as Hardware Sales Decline Sharply
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Total Revenue | $152.3M | $174.9M | -13% |
| Hardware Revenue | $58.0M | $82.8M | -30% |
| Hosted Services Revenue | $73.2M | $73.2M | flat |
| Professional Services Revenue | $21.1M | $18.8M | +12% |
Total revenue has now fallen from $236.8M in 2023 to $152.3M in 2025 — a 36% drop over two years. The main driver is hardware: the company shipped 35% fewer devices in 2025, partly by choice (discontinuing bulk shipments) and partly due to leadership changes disrupting sales. The one bright spot is professional services, where revenue per installation rose 20% even as fewer units were deployed.
SaaS Revenue Is Growing, but a Hidden Headwind Is Building
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| SaaS Revenue | $57.8M | $51.6M | $41.1M |
| ARR (annualized run rate) | $61.6M | $54.4M | $46.2M |
| Hub Amortization (within Hosted Services) | $15.4M | $21.6M | $23.1M |
SaaS revenue (recurring software subscription fees) grew 12% year-over-year — a genuinely positive trend. However, total Hosted Services revenue stayed flat because a separate line item called hub amortization (legacy revenue being recognised over time from older hardware sales) is declining fast. That item is expected to drop a further $10.6M in 2026 before nearly disappearing. Future Hosted Services growth depends entirely on SaaS keeping pace with this drag.
Customers Are Spending More, but Fewer New Deals Are Being Signed
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Units Booked (new orders) | 90,243 | 121,670 | 173,195 |
| Total Bookings (contract value) | $115.7M | $133.8M | $158.5M |
| Customer Net Revenue Retention | 110% | 111% | — |
| Units Booked SaaS ARPU (monthly, per unit) | $8.40 | $6.44 | $8.32 |
Bookings — the value of new contracts signed — have fallen 27% over two years, signalling weaker demand from new and existing customers. On the other hand, existing customers are spending more: Property Net Revenue Retention improved to 108% (meaning the same properties are generating 8% more revenue than last year), and new contracts are being signed at a higher monthly software fee per unit ($8.40 vs $6.44 in 2024). The pipeline is shrinking, but what remains is more valuable per unit.
A $24.9M Goodwill Write-Down Signals a Reckoning on Business Value
During early 2025, a sustained drop in the company's stock price triggered a required accounting test. The result was a goodwill impairment charge (a write-down acknowledging that past acquisitions are now worth less than originally recorded) of $24.9M. This was the primary reason the net loss widened to $60.6M in 2025 from $33.6M in 2024. The remaining goodwill on the balance sheet stands at $92.3M, and the filing explicitly warns that further stock price declines or weaker forecasts could lead to additional charges.
The Company Is Burning Cash, Though Losses Are Narrowing Operationally
| Metric | 2025 | 2024 |
|---|---|---|
| Net Loss | $(60.6M) | $(33.6M) |
| Adjusted EBITDA | $(16.4M) | $(9.9M) |
| Cash & Equivalents (end of year) | $104.6M | — |
| Operating Cash Outflow | $(21.6M) | $(32.9M) |
Stripping out the goodwill charge and other one-off items, the underlying Adjusted EBITDA (a proxy for cash operating loss) was $(16.4M) — worse than last year's $(9.9M), but management cut operating cash outflows from $32.9M to $21.6M by reducing headcount and legal costs. With $104.6M in cash and a $75M undrawn credit line, the company says it has enough runway for at least 12 months, but the trajectory of cash consumption will matter greatly going forward.