SmartRent, Inc. (NYSE:SMRT) Analysts Upgrade Earnings and Revenue Outlook After Latest Results

Analysts have upgraded their forecasts for SmartRent following the company's latest quarterly results. The statutory results were mixed, with revenues in line with forecasts but losses larger than expected. Despite this, analysts have increased their revenue estimates for 2025, forecasting a 9.8% improvement compared to the last 12 months. However, the consensus price target has fallen 15% to $1.40, indicating that analysts remain pessimistic on the company.

Analysts have upgraded their forecasts for SmartRent Inc. (SMRT) following the company's latest quarterly results. The statutory results were mixed, with revenues in line with forecasts but losses larger than expected. Despite this, analysts have increased their revenue estimates for 2025, forecasting a 9.8% improvement compared to the last 12 months. However, the consensus price target has fallen 15% to $1.40, indicating that analysts remain pessimistic on the company.

SmartRent reported its second-quarter 2025 earnings on August 6, revealing a net loss and revenue figures that fell short of expectations. The company posted an earnings per share (EPS) of -$0.06, missing the forecast of -$0.04. Revenue totaled $38.3 million, below the anticipated $41.15 million. Following the announcement, SmartRent’s stock experienced a pre-market decline of 7.68%, with shares trading at $0.91. According to InvestingPro analysis, the company’s current market capitalization stands at $220.17 million, with the stock showing significant volatility (Beta: 1.82) [1].

Key Takeaways
SmartRent’s Q2 2025 revenue decreased by 21% year-over-year. The company reported a net loss of $10.9 million, significantly higher than the previous year’s $4.6 million loss. Hardware revenue saw a substantial drop of 39% compared to the same quarter last year. SaaS revenue increased slightly, making up 37% of total revenue. The company aims for cash flow neutrality by the end of 2025 [1].

Company Performance
SmartRent’s performance in Q2 2025 reflected challenges in its hardware segment, which saw a 39% decline year-over-year. Despite this, the company maintained growth in its SaaS and hosted services, which saw 5% and 1% year-over-year increases, respectively. The company continues to lead in the property technology market, with 850,000 units deployed and a low customer churn rate [1].

Financial Highlights
Revenue: $38.3 million, down 21% year-over-year. Earnings per share: -$0.06, missing the forecast of -$0.04. Hardware revenue: $15.1 million, down 39% year-over-year. SaaS revenue: $14.2 million, up from 34% of total revenue in Q1 to 37%. Earnings vs. Forecast SmartRent’s EPS of -$0.06 was below the forecasted -$0.04, resulting in an EPS surprise of 50%. Revenue also fell short by 6.93%, highlighting challenges in meeting market expectations [1].

Market Reaction
Following the earnings report, SmartRent’s stock dropped by 7.68% in pre-market trading, reflecting investor disappointment with the earnings miss and revenue shortfall. The stock’s current price of $0.91 is near its 52-week low of $0.671, indicating ongoing market challenges [1].

Outlook & Guidance
Looking forward, SmartRent is focused on achieving cash flow neutrality by the end of 2025. The company plans to enhance operational efficiency, integrate AI into its offerings, and expand its product capabilities. Revenue forecasts for upcoming quarters suggest modest growth, with projections for Q3 2025 at $38.7 million [1].

Executive Commentary
CEO Frank Martell emphasized the company’s strategic focus, stating, "We want SmartRent technology to be everywhere in the multifamily space." CFO Daryl Stem highlighted the financial strategy, noting, "Our existing deployed base is averaging about $5.66 per unit, and new bookings are averaging in excess of $8." Martell also pointed to AI’s role in future growth, saying, "We have a lot of data, and the use of that data to help our clients make better decisions is an area AI will play a role in" [1].

Risks and Challenges
Declining hardware revenue poses a risk to overall financial performance. Achieving cash flow neutrality by end of 2025 requires continued cost management. Market competition and technological advancements could impact growth. Macroeconomic pressures may affect customer spending and investment in new technologies [1].

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-smartrent-q2-2025-revenue-falls-short-stock-declines-93CH-4174108