SmartRent, Inc. reported a significant decline in financial performance for the second quarter of 2025, with total revenue decreasing by 21% to $38.3 million compared to $48.5 million in the same period last year. The decline was primarily driven by a 39% drop in hardware revenue, which fell to $15.1 million from $24.7 million, attributed to a decrease in Units Shipped and New Units Deployed. Professional services revenue also decreased by 26% to $4.3 million, while hosted services revenue saw a modest increase of 5% to $18.8 million, reflecting a 10% rise in cumulative active subscriptions.
In the first half of 2025, SmartRent's total revenue decreased by 20% to $79.7 million, down from $99.0 million in the prior year. The company experienced a 30% reduction in Units Shipped, which contributed to a $17.9 million decline in revenue from its Smart Apartments solution. The overall decrease in revenue was further exacerbated by broader macroeconomic conditions that led customers to defer capital expenditures, alongside changes in the company's leadership and sales structure.
Operationally, SmartRent reported 847,956 Units Deployed as of June 30, 2025, a 10% increase from the previous year. However, New Units Deployed fell by 6% to 21,068 for the quarter, and by 25% to 39,182 for the six-month period. The company also noted a goodwill impairment charge of $24.9 million during the first half of 2025, reflecting a significant decline in market capitalization. The total net loss for the second quarter was $10.9 million, compared to a loss of $4.6 million in the same quarter of 2024.
Strategically, SmartRent has focused on enhancing its product offerings, including the introduction of an AI-powered intelligence layer and energy management tools. The company has also expanded its partnerships and product integrations to improve customer experience and operational efficiency. Despite the challenges faced, SmartRent aims to leverage its technology to capture a larger share of the growing smart home market, which currently represents approximately 14% of the U.S. market for institutionally owned multifamily rental units.
Looking ahead, SmartRent anticipates continued investment in research and development to drive innovation and improve its service offerings. The company remains committed to addressing supply chain challenges and enhancing its sales capabilities to foster growth. As of June 30, 2025, SmartRent had cash and cash equivalents of $105.0 million, which it believes will be sufficient to fund operations for at least the next 12 months.
About SmartRent, Inc.
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