SmartRent(US:SMRT)2025-11-05 13:11Revenue Performance - Total revenue for Q3 2025 was $36.2 million, a decrease of 10.4% compared to $40.5 million in Q3 2024[19] - Hardware revenue decreased to $11.5 million in Q3 2025 from $18.7 million in Q3 2024, representing a decline of 38.5%[19] - Professional services revenue increased to $7.0 million in Q3 2025, up 112.5% from $3.3 million in Q3 2024[19] - Total revenue for the nine months ended September 30, 2025 was $115,854, down 17% from $139,517 in the same period of 2024[93] - Total revenue for the three months ended September 30, 2025, was $36,202, a decrease of 10.4% compared to $40,510 for the same period in 2024[164] - Revenue from the United States for Q3 2025 was $36,097, down 9.8% from $40,030 in Q3 2024[93] - Hosted services revenue for Q3 2025 was $17,661, a slight decrease of 4.5% from $18,495 in Q3 2024[93] - SaaS revenue increased to $14,237 for the three months ended September 30, 2025, compared to $13,318 in 2024, reflecting a growth of 6.9%[164] Financial Losses and Improvements - Net loss for Q3 2025 was $6.3 million, compared to a net loss of $9.9 million in Q3 2024, showing an improvement of 36.7%[19] - For the nine months ended September 30, 2025, the net loss was $57,314 thousand, compared to a net loss of $22,220 thousand for the same period in 2024, representing an increase of 157%[26] - The net loss for the three months ended September 30, 2025, was $6,270, compared to a net loss of $9,923 in the same period of 2024, indicating an improvement of 36.7%[164] Assets and Liabilities - Total assets decreased to $335.8 million as of September 30, 2025, down from $420.2 million as of December 31, 2024, a reduction of 20.1%[17] - Total liabilities decreased to $101.4 million as of September 30, 2025, down from $130.7 million as of December 31, 2024, a reduction of 22.4%[17] - Cash and cash equivalents decreased to $100.0 million as of September 30, 2025, compared to $142.5 million as of December 31, 2024, a decline of 29.7%[17] - Total cash, cash equivalents, and restricted cash at the end of the period was $100,022 thousand, down from $163,650 thousand at the end of September 30, 2024, reflecting a decrease of 39%[26] Expenses and Investments - Research and development expenses for Q3 2025 were $6.1 million, a slight decrease from $6.6 million in Q3 2024[19] - Operating expenses for the three months ended September 30, 2025, totaled $16,596, a decrease of 34.3% from $25,194 in 2024[164] - Cash used in operating activities for the nine months ended September 30, 2025, was $29,232 thousand, up from $20,898 thousand in 2024, indicating a 40% increase[26] - The company incurred $3,552,000 in capital expenditures for property and equipment during the nine months ended September 30, 2025, compared to $524,000 in the same period in 2024, indicating a significant increase in investment[26] Stock and Equity - The company reported a total of 189,196 shares outstanding as of September 30, 2025, compared to 192,049 shares as of December 31, 2024[17] - Stock-based compensation for the quarter was recorded at $2,958,000[23] - The company repurchased Class A common stock amounting to $17,214,000 during the quarter[23] - Stock-based compensation expense recognized for the nine months ended September 30, 2025 was $692, a decrease of 55% from $1,528 for the same period in 2024[132] - The company has not drawn on the $75,000 Senior Revolving Facility as of September 30, 2025, which is set to mature in December 2026[112] Legal Matters - The company recorded a legal expense of $5,300 related to a supplier dispute during the three months ended March 31, 2024[154] - The settlement of a class action lawsuit related to the merger with SmartRent.com, Inc. is expected to cost $11,375, pending court approval[155] - The Company continues to negotiate settlements related to the 2024 Class Action, with a portion of the settlement funded by the primary D&O insurance carrier[156] Impairments and Write-offs - The company reported a goodwill impairment of $24,929 thousand for the nine months ended September 30, 2025, while there was no goodwill impairment recorded in the same period of 2024[26] - The company recorded a goodwill impairment charge of $24,929 during the three months ended March 31, 2025, due to a significant decline in stock price and market capitalization[49] - Inventory write-downs for the three months ended September 30, 2025, amounted to $3.258 million, compared to $2.596 million for the same period in 2024, reflecting an increase of approximately 25.5%[100] - The company recorded $1.794 million of inventory write-offs related to the sunsetting of its parking management solution during the three months ended September 30, 2025[100]