SmartRent(US:SMRT)2025-11-05 13:05Financial Performance - Total revenue for Q3 2025 was $36.2 million, an 11% decrease from the prior year, primarily due to a strategic shift away from bulk hardware sales [4] - Annual Recurring Revenue (ARR) increased by 7% to $56.9 million, now representing 39% of total revenue [4] - The net loss improved by $3.6 million to $(6.3) million, and Adjusted EBITDA improved by $0.9 million to $(2.9) million, mainly due to the cost reduction program [4] - Total revenue for Q3 2025 was $36,202, a decrease of 10.3% compared to $40,510 in Q3 2024 [32] - Net loss for the nine months ended September 30, 2025, was $57,314, compared to a net loss of $22,220 for the same period in 2024, indicating an increase in losses of 157.5% [37] - Adjusted EBITDA for the nine months ended September 30, 2025, was $(16,646), compared to $(2,523) for the same period in 2024 [39] Operational Metrics - Units Deployed reached 870,230, an 11% increase year-over-year, with 22,644 New Units Deployed during the quarter, a 49% increase from the prior year [7] - Units Booked totaled 22,080, representing a 30% increase driven by investments in the sales organization [7] Revenue Composition - SaaS revenue represented more than 39% of total revenue in Q3 2025, up from 33% in the prior year [6] - Hardware revenue decreased to $11,506 in Q3 2025 from $18,707 in Q3 2024, representing a decline of 38.5% [32] Expenses and Cost Management - Operating expenses declined to $16.6 million, an $8.6 million or 34% decrease from the prior year [8] - Research and development expenses for Q3 2025 were $6,149, slightly down from $6,596 in Q3 2024, a decrease of 6.8% [32] - The company completed a $30 million cost reduction program, aiming for cash flow neutrality by the end of 2025 [3] Financial Position - Cash position at the end of Q3 was $100 million, with no debt and a $75 million undrawn credit facility, indicating strong liquidity [3] - Total current assets decreased to $201,465 as of September 30, 2025, down from $257,650 as of December 31, 2024, a decline of 21.8% [35] - Cash and cash equivalents decreased to $100,022 as of September 30, 2025, from $142,482 at the beginning of the period, a decrease of 29.7% [36] - Total liabilities decreased to $101,385 as of September 30, 2025, from $130,741 as of December 31, 2024, a reduction of 22.5% [35] Impairment and Shares - The company reported an impairment charge of $24,929 for goodwill in the nine months ended September 30, 2025 [32] - The weighted-average number of shares used in computing net loss per share was 189,835 for the nine months ended September 30, 2025 [32]