SmartRent, Inc. reported second-quarter 2025 financial results, with total revenue decreasing 21% year-over-year to $38.31 million, primarily due to a strategic shift away from bulk hardware sales. Despite this, Hosted Services revenue, which includes SaaS offerings, increased 5% to $18.84 million, and SaaS revenue alone grew 10% to $14.22 million, now comprising 37% of total revenue.
Annual Recurring Revenue (ARR) reached $56.9 million, an 11% increase year-over-year, and Units Booked for the quarter were 24,319, marking the highest quarterly booking performance in over a year. However, the company reported an increased net loss of $(10.86) million and an Adjusted EBITDA loss of $(7.35) million, impacted by lower hardware sales and approximately $2 million in severance and legal expenses.
Management expanded its cost reduction program to target $30 million in annualized savings, aiming for adjusted EBITDA and cash flow neutrality on a run rate basis by the end of 2025. The company ended the quarter with a strong liquidity position of $105 million in cash, no debt, and an undrawn $75 million credit facility, providing flexibility to fund strategic initiatives and product innovation.
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