Earnings Summary: SmartRent Returns to Growth in Q4, Achieves Positive EBITDA.

For the fourth quarter of 2025, SmartRent reported total revenue of $36.5 million, representing a 3% year-over-year increase and marking the company’s first quarter of top-line growth in seven quarters. This turnaround was driven by a 13% year-over-year expansion in Software as a Service (SaaS) revenue, which grew to represent 42% of total quarterly revenue. Annual recurring revenue also increased 13% year-over-year to $61.6 million. Hardware revenue contributed $12.5 million, climbing 20% compared to the prior-year period, while professional services revenue declined 6% to $5.9 million. For the full year 2025, total revenue was $152.3 million, a 13% decrease from 2024, primarily due to the non-recurrence of large bulk hardware sales from the prior year.

Profitability metrics demonstrated significant structural improvement during the fourth quarter. SmartRent achieved its first-ever quarter of positive Adjusted EBITDA, generating $0.2 million compared to an Adjusted EBITDA loss of $9.9 million in the prior-year period. Total gross margin expanded to 38.6%, supported by hosted services gross margins reaching 75.7%. The company also narrowed its fourth-quarter net loss to $3.2 million from $11.4 million a year earlier, aided by a 22% year-over-year reduction in operating expenses. Despite the strong quarterly finish, full-year 2025 results reflected earlier operational pressures, with an Adjusted EBITDA loss of $16.4 million and a widened net loss of $60.6 million, largely driven by a $24.9 million goodwill impairment charge recognized earlier in the year.