SmartRent Achieves First Year-Over-Year Growth With $36.5M Q4 Revenue
SmartRent reported fourth-quarter revenue of $36.5 million, a 3% increase marking its first year-over-year growth in seven quarters, while ARR climbed to nearly $62 million, representing 40% of total revenue. The company generated over $30 million in annualized cost savings and achieved positive adjusted EBITDA run rates.
1. Fourth-Quarter Financial Performance
SmartRent delivered $36.5 million in Q4 revenue, up 3% year-over-year, marking its first quarterly revenue growth in seven quarters. SaaS revenue rose 13% to $15.4 million, and core revenue (excluding hub amortization) grew approximately 12% to $33.8 million.
2. Margin and Profitability Improvement
Gross margin expanded by 990 basis points to 38.6%, driven by hosted services margin of 75.7% and break-even professional services margin. Adjusted EBITDA turned positive at about $0.2 million, and net loss narrowed to $3.2 million from $11.4 million a year earlier.
3. Cost Structure Reset and Liquidity
The company implemented cost-saving measures generating over $30 million in annualized savings, reducing operating expenses by 22% to $18.0 million. SmartRent ended the quarter with approximately $105 million cash and no drawn debt, achieving cash flow neutrality on a run-rate basis.
4. Vision 2028 Strategic Outlook
Management unveiled Vision 2028, aiming for one million installed units within five quarters, double-digit installed base growth, Adjusted EBITDA profitability, and free-cash-flow positivity. The plan focuses on scaling go-to-market capabilities, deepening platform integration, simplifying hardware architecture, and strengthening operating leverage.