SmartRent Shares Signal a Potential Operational Turnaround

SmartRent US83193G1076

After nearly two years of stagnation, SmartRent has issued a promising financial update. The company's preliminary, unaudited figures for the fourth quarter of 2025 indicate a return to revenue growth for the first time in seven quarters, suggesting a meaningful stabilization of its business model. The critical question for investors is whether this shift marks the beginning of a sustained recovery.

The market's initial reaction was favorable. Following the release of the data, the company's stock price advanced by over 4% in a single session, closing at $1.75.

Earlier this week, SmartRent disclosed its Q4 2025 preliminary results. The projections point to several key improvements, most notably an end to the prolonged decline in top-line revenue.

A summary of the key preliminary figures includes:

• Total Revenue: $36 million – $37 million (projected)
• SaaS Revenue: $15.2 million – $15.5 million
• Net Loss: $3.3 million – $3.6 million
• Adj. EBITDA: $0 – $300,000
• Cash Position: Approximately $105 million (as of December 31, 2025)

Recurring Software Revenue Fuels Growth

The return to growth is being driven primarily by the Software-as-a-Service (SaaS) division. Management anticipates revenue from this segment to reach up to $15.5 million, representing a growth rate exceeding 10% compared to the same period last year. This segment is closely watched by the investment community, as its subscription-based model provides a foundation of predictable, recurring income that is crucial for long-term stability.

Progress Toward Profitability and a Stronger Balance Sheet

Beyond the revenue rebound, the data shows significant strides in financial efficiency. SmartRent expects to report an adjusted EBITDA between zero and $300,000 for the quarter, achieving its target of operational cash flow breakeven—meaning the core business is no longer burning cash.

Concurrently, the net loss is projected to narrow. The company also strengthened its liquidity, ending the year with a cash balance of about $105 million, an increase of roughly $5 million from the close of the third quarter.

Despite a weekly gain of around 8%, SmartRent equity remains down approximately 13% since the start of 2026. The forthcoming audited annual results will need to confirm that the positive momentum in the SaaS business is durable. The central challenge for the new fiscal year will be transforming the achieved cash flow neutrality into consistent, bottom-line profitability.

@ boerse-global.de | US83193G1076 SMARTRENT