SmartRent, Inc. reported a significant decline in its financial performance for the fiscal year ending December 31, 2025, with total revenue decreasing by 13% to $152.3 million, down from $174.9 million in 2024. The decline was primarily driven by a 30% drop in hardware revenue, which fell to $58.0 million, and a 35% decrease in units shipped, totaling 110,011. The company also experienced an 8% decrease in new units deployed, which amounted to 82,626. Despite these challenges, professional services revenue increased by 12% to $21.1 million, attributed to a rise in average revenue per unit (ARPU) for professional services.
In terms of profitability, SmartRent reported a net loss of $60.6 million for 2025, compared to a loss of $33.6 million in the previous year. This increase in losses was exacerbated by a goodwill impairment charge of $24.9 million, reflecting a decline in the company's market capitalization. Operating expenses also decreased by 13% to $88.9 million, driven by reductions in general and administrative costs, which fell by 20% to $43.2 million. The company attributed some of the operational challenges to changes in leadership and the structure of its sales organization.
SmartRent's operational metrics showed a total of 890,870 units deployed as of December 31, 2025, representing a 10% increase from the previous year. The company maintained a customer base of approximately 600, which includes major multifamily residential owners in the U.S. The company’s annual recurring revenue (ARR) grew to approximately $61.6 million, up from $54.4 million in 2024, indicating a positive trend in subscription-based revenue despite the overall revenue decline.
Strategically, SmartRent has focused on enhancing its product offerings, including the introduction of an AI-powered intelligence layer and energy management tools. The company also launched new SaaS product enhancements aimed at streamlining property management operations. However, the company faced headwinds in customer adoption due to broader macroeconomic conditions and a slowdown in capital expenditures by certain customers.
Looking ahead, SmartRent expressed optimism about its growth potential, particularly in expanding its market share in the smart home technology sector. The company plans to continue investing in research and development to enhance its platform and introduce new products. Despite the challenges faced in 2025, SmartRent believes that its comprehensive suite of solutions positions it well for future growth as demand for smart home technology continues to rise.
About SmartRent, Inc.
SmartRent, Inc. is a provider of enterprise smart home technology for residential real estate, offering cloud-based software and hardware solutions that enable property owners and managers to automate operations, enhance security, and improve resident experiences. Its platform integrates with third-party devices and property management systems, serving multifamily, single-family rental, and commercial markets to reduce costs, increase revenue, and promote sustainability.
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