GICS Sector : Technology
SmartRent, Inc., an enterprise software company, provides an integrated smart home operating system to residential property owners and operators, homebuilders, institutional home buyers, developers, and residents in the United States.Its solution is designed to provide communities with visibility and control their assets while delivering cost savings and additional revenue opportunities through all-in-one home control offerings for residents.The company's products and solutions include smart apartments and homes, access control for buildings, common areas, rental units, asset protection and monitoring, parking management, self-guided tours, and community and resident Wi-Fi. It also offers professional services to customers, which include training, installation, and support services.
In the fourth quarter, SmartRent reported total revenue of $36.5 million, a 3% increase from the previous year, marking the first positive revenue growth in seven quarters. SaaS revenue grew 13% to $15.4 million, contributing to a total ARR of $62 million, representing approximately 40% of total revenue. The company's net loss significantly narrowed to $3.2 million, down from $11.4 million in the same period last year. Adjusted EBITDA turned positive, reaching a profit of $200,000, a 103% improvement. Earnings per share came in at -$0.02, in line with analyst estimates. "Hosted services revenue totaled $18.1 million and included $15.4 million of SaaS revenue," as stated by Daryl Stemm, highlighting the growth in the company's recurring revenue streams.
Publication Date: Mar -08
SmartRent's management highlighted several key achievements in 2025, including organizational development, improved go-to-market capabilities, and investments in hardware and software offerings. The company reset its cost structure, yielding an annualized cost savings of over $30 million. Looking ahead to 2026, SmartRent expects to grow total revenues, driven by a double-digit growth in ARR, and achieve positive adjusted EBITDA and free cash flow on a full-year basis. "We expect to grow our installed base at a double-digit pace, scaling a world-class go-to-market organization," Frank Martell stated, outlining the company's strategic priorities.
Analysts estimate SmartRent's revenue growth at 28.3% for the next year. The company's current valuation metrics include a P/S Ratio of 2.2 and an EV/EBITDA of -8.07, indicating the market's expectations for future growth and profitability. With a current installed base of around 600 customers and plans to double the size of its sales organization, SmartRent is poised for accelerated growth. The expected expansion in the installed base and the resulting increase in recurring revenue are likely to drive the company's profitability in the coming years.
SmartRent's Q4 results demonstrate a significant improvement in revenue growth and profitability. The company's strategic plan, Vision 2028, focuses on accelerating growth and increasing profitability through a more scalable operating model. Investors should consider the company's valuation metrics, including its P/S Ratio and EV/EBITDA, when assessing its growth prospects. With a growing deployed base and expanding ARR, SmartRent is well-positioned for future success.
SmartRent (NYSE:SMRT) Stock Price Down 3.7% – Time to Sell?
Apr -08
SmartRent Q4 Earnings Call Highlights
Mar -06
SmartRent, Inc. (SMRT) Q4 2025 Earnings Call Transcript
Mar -04
Why SmartRent Stock Was Climbing Today
Mar -04
SmartRent Reports Fourth Quarter and Full-Year 2025 Financial Results
Mar -04
Head-To-Head Contrast: Firefly Neuroscience (NASDAQ:AIFF) & SmartRent (NYSE:SMRT)
Feb -12
SmartRent to Report Fourth Quarter and Full-Year 2025 Financial Results on March 4, 2026
Feb -11
SmartRent Provides Update on Fourth Quarter 2025 Financial Results
Feb -05
SmartRent's 11.67% growth in Hardware is driven by increasing adoption of smart home technology, rising demand for IoT-enabled devices, and growing need for property managers to streamline operations. Additionally, the company's focus on providing a seamless user experience, expanding its partner network, and investing in R&D are contributing to its rapid growth.
SmartRent's Hosted Services growth is driven by increasing adoption of smart home technology, rising demand for property automation, and growing need for efficient property management. Additionally, the company's scalable platform, strategic partnerships, and expanding customer base contribute to its 10.5% growth rate.
SmartRent's Professional Services segment growth of 10.27% is driven by increasing adoption of smart home technology, rising demand for property management solutions, and expansion into new markets. Additionally, the company's focus on customer acquisition and retention, strategic partnerships, and investments in technology and innovation are contributing to its growth momentum.
A smart home automation hub that integrates with various devices and sensors to provide a seamless living experience.
A keyless door lock that provides secure and convenient access control for residents and property staff.
A smart thermostat that learns and adapts to residents' temperature preferences to optimize energy efficiency and comfort.
A rent guarantee and protection program that provides financial protection for property owners and managers.
A suite of sensors that detect water leaks, motion, and temperature anomalies to prevent damage and ensure resident safety.
A mobile app that provides residents with a convenient and personalized living experience.
A comprehensive property management platform that streamlines operations and improves resident engagement.
SmartRent's proprietary technology and partnerships with major property management companies create high barriers to entry for substitutes.
While customers have some bargaining power due to the competitive nature of the property management industry, SmartRent's value proposition and strong customer relationships mitigate this power.
SmartRent's diversified supplier base and lack of dependence on a single supplier reduce the bargaining power of suppliers.
The growing demand for smart home technology and the relatively low barriers to entry in the industry create a high threat of new entrants.
While there is some rivalry in the smart home technology industry, SmartRent's strong market position and differentiated product offerings reduce the intensity of rivalry.
| Value | |
|---|---|
| Debt Weight | 5.64% |
| Debt Cost | 13.93% |
| Equity Weight | 94.36% |
| Equity Cost | 13.93% |
| WACC | 13.93% |
| Leverage | 5.98% |
Value: 8.2
Growth: 2.1
Quality: 4.7
Yield: 0.0
Momentum: 6.0
Volatility: 5.0
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Volatility: 1.7
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