SmartRent 2025 Q2 Earnings Deepened Losses Amid Revenue Drop

SmartRent reported its Q2 2025 earnings on August 6, 2025, showing a significant revenue decline and expanded losses, missing expectations. The company delivered weaker-than-expected top-line results and did not raise or adjust its guidance for the year.

Revenue
SmartRent’s total revenue for Q2 2025 fell 21.0% year-over-year to $38.31 million, driven by a shift away from high-margin hardware sales. Hardware revenue stood at $15.14 million, while professional services accounted for $4.33 million. Hosted services remained the largest segment, contributing $18.84 million. The transition to a recurring SaaS model, while strategically sound, has temporarily weighed on near-term revenue growth.

Earnings/Net Income
The company’s losses widened significantly, with a net loss of $10.86 million, or $0.06 per share, compared to a $0.02 loss per share in the prior year. This marked a 135.8% increase in the net loss, underscoring continued financial challenges. The deepening loss indicates a negative earnings performance for the fifth consecutive year.

Price Action
Shares of SmartRent gained 25.27% in the most recent trading day and rose 10.68% for the week, while climbing 5.56% month-to-date. Despite positive short-term momentum, long-term performance has been underwhelming.

Post-Earnings Price Action Review
A strategy of buying SmartRent shares following revenue growth quarters and holding for 30 days has underperformed severely over the past three years, delivering a -69.23% return compared to a 49.40% benchmark. The excess return of -118.63% and a CAGR of -32.77% highlight the strategy’s poor track record. While the maximum drawdown was 0.00%, the approach failed to capture gains.

CEO Commentary
CEO Frank Martell emphasized SmartRent’s long-term strengths, including its 850,000 deployed units and 90% customer retention driven by net operating income expansion. The company has executed $30 million in annualized cost reductions—$10 million in Q1 and $20 million in Q2—with a goal of achieving adjusted EBITDA and cash flow neutrality by year-end 2025. Martell also highlighted AI integration and product innovation to drive future growth, despite near-term revenue challenges.

Guidance
While no formal guidance was provided, the leadership expressed confidence in breakeven or positive adjusted EBITDA in 2026, supported by SaaS margin expansion and improved customer alignment.

Additional News
The earnings call transcript for SmartRent’s Q2 2025 results, released on August 6, 2025, highlighted declining revenue and ongoing cost-cutting measures. The transcript, which requires JavaScript and cookies to view, offered insights into management’s strategic focus on EBITDA neutrality and disciplined execution. No major M&A activity, C-level changes, or dividend announcements were reported within three weeks of the earnings release. The company remains focused on internal restructuring and operational efficiency.