SmartRent, Inc. reported a significant decline in financial performance for the first quarter of 2025, with total revenue falling to $41.3 million, an 18% decrease from $50.5 million in the same period last year. The decline was primarily driven by a 35% drop in hardware revenue, which fell to $18.8 million from $29.1 million, attributed to a decrease in New Units Deployed and Units Shipped. The company recorded a net loss of $40.2 million, compared to a loss of $7.7 million in the prior year, largely due to a $24.9 million goodwill impairment charge.
In terms of operational metrics, SmartRent deployed 827,611 units as of March 31, 2025, marking a 10% increase from 749,401 units a year earlier. However, the number of New Units Deployed decreased by 39% to 18,114 units, reflecting broader macroeconomic conditions that led customers to defer capital expenditures. The company also reported a 4% increase in Hosted Services revenue, which reached $18.6 million, supported by a 10% rise in cumulative active subscriptions.
Strategically, SmartRent has undergone leadership changes, with the recent departure of CEO Michael Shane Paladin and the appointment of John Dorman as interim CEO. The company is currently searching for a permanent successor. Additionally, SmartRent has initiated a stock repurchase program, authorizing the buyback of up to $50 million of its Class A common stock, with approximately $20.4 million remaining available for repurchases as of March 31, 2025.
The company’s financial outlook remains cautious, as it may need to raise additional capital to fund operations until it generates positive cash flows. SmartRent's management believes that current resources will suffice for at least the next year, but the need for future financing could impact its operational flexibility. The company is also addressing compliance issues with the NYSE regarding its stock price, which has fallen below the required minimum of $1.00 per share, potentially affecting its listing status.
About SmartRent, Inc.
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