Revenue Performance
SmartRent generated total revenue of $36.5 million in the fourth quarter of 2025, representing a 3% year-over-year increase and marking the first quarter of revenue growth in seven quarters. This top-line performance was significantly supported by Annual Recurring Revenue, which grew by 13% year-over-year to $61.6 million and constituted 42% of total revenue. The company’s Software as a Service revenue for the quarter was $15.4 million, reflecting a 13% increase compared to the prior year. For the full year, total revenue declined by 13% to $152.3 million, primarily reflecting a strategic transition away from bulk hardware transactions that did not align with customer implementation schedules.
Profitability and Margins
The company achieved a significant milestone in the fourth quarter by posting a positive Adjusted EBITDA of $0.2 million, a substantial improvement from a loss of $7.4 million in the prior-year period. Total gross profit for the quarter reached $14.1 million, with the total gross margin expanding approximately 990 basis points to 38.6%. This margin expansion was driven by structural cost actions, improved operating discipline, and a more favorable revenue mix. Operating expenses in the fourth quarter decreased by 22% year-over-year to $18.0 million. Consequently, the net loss for the quarter narrowed to $3.2 million from $11.4 million a year earlier. However, the full-year net loss widened to $60.6 million, heavily impacted by a $24.9 million goodwill impairment charge.
Operational Highlights and Liquidity
Operational metrics indicated sustained demand, with Units Booked in the fourth quarter totaling 25,634, a 24% increase over the previous year. The total number of Units Deployed expanded to 890,870, reflecting a 10% year-over-year growth. The installed base exhibited stability, as Software as a Service Average Revenue Per Unit rose to $5.83 in the fourth quarter. SmartRent concluded the year with a robust liquidity profile, increasing its cash balance by $4.5 million during the quarter to finish with $104.6 million in cash and zero debt.