SmartRent (SMRT) AI Stock Analysis

• Market Cap: $167.48M
• Dividend Yield: N/A
• Average Volume (3M): 1.93M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.42
• Revenue Growth: -25.43%
• EPS Growth: -135.09%
• Country: US
• Employees: 494
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): -0.21
• Shares Outstanding: 188,178,510
• 10 Day Avg. Volume: 1,430,466
• 30 Day Avg. Volume: 1,931,820
• PEG Ratio: 0.16
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.44
• Enterprise Value/Market Cap: 0.15
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 0.41
• Enterprise Value/Ebitda: -0.19
• 1Y Price Target: $1.65
• Price Target Upside: 85.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 51 Neutral
• Price Target: $1.00 ▲(12.36%Upside)

SmartRent's stock score reflects a challenging financial and operational environment, with a strategic pivot towards SaaS offering potential but not without execution risks. Technical indicators signal bearish momentum, and the company's valuation metrics highlight profitability challenges. Despite these hurdles, the strong balance sheet and strategic realignment provide a foundation for potential future growth.

Positive Factors

Capitalization Strength

The company is well capitalized with $142.5 million in cash and cash equivalents, no debt and an undrawn credit facility of $75 million.

Hosted Services Profitability

Hosted services gross profit rose to $12.5 million from $11.4 million last year, continuing to be the most profitable revenue stream.

SaaS Revenue Growth

SaaS revenue grew by 17% year-over-year, resulting in a record SaaS ARR of $54.4 million.

Negative Factors

Adjusted EBITDA Decline

The company reported negative Adjusted EBITDA of $(6.4) million, down from $400K year-over-year.

Gross Margin Decline

Gross margin slightly decreased to 32.8% from 38.5% a year ago, driven from changes to product mix.

Revenue Decrease

Quarterly revenue totaled $35.4 million, marking a 41% decrease from the previous year, driven by fewer units shipped and new units deployed.

SmartRent Business Overview & Revenue Model

Company Description

SmartRent, Inc., an enterprise software company, provides an integrated smart home operating system to residential property owners and operators, homebuilders, institutional home buyers, developers, and residents in the United States. Its solution is designed to provide communities with visibility and control their assets while delivering cost savings and additional revenue opportunities through all-in-one home control offerings for residents. The company's products and solutions include smart apartments and homes, access control for buildings, common areas, rental units, asset protection and monitoring, parking management, self-guided tours, and community and resident Wi-Fi. It also offers professional services to customers, which include training, installation, and support services. SmartRent, Inc. was founded in 2017 and is headquartered in Scottsdale, Arizona.

How the Company Makes Money

SmartRent generates revenue primarily through the sale and subscription of its smart home technology products and services to property owners and managers. The company's revenue streams include hardware sales from devices like smart locks, thermostats, and sensors, as well as recurring subscription fees from its software-as-a-service (SaaS) platform which provides property management and automation capabilities. Additionally, SmartRent establishes strategic partnerships with real estate developers and property management companies, enabling them to integrate SmartRent's solutions into their developments, which further drives sales and adoption. The combination of upfront hardware sales and ongoing software subscription fees constitutes the core of SmartRent's revenue model.

SmartRent Financial Statement Overview

Summary

SmartRent's financial performance is mixed. The company has shown revenue growth but faces profitability challenges with consistent losses. Its balance sheet is strong, with no debt, but cash flow generation is inconsistent, which is a major area for improvement.

Income Statement

SmartRent has shown fluctuations in revenue over the years, with a significant increase in revenue from 2020 to 2023, but a decline in 2024. The gross profit margin improved considerably in 2024 compared to earlier years, indicating better cost management. However, the company remains unprofitable, with negative EBIT and net income margins, which is a concern. Revenue growth has been inconsistent, posing a challenge for sustained profitability.

Balance Sheet

SmartRent's balance sheet reflects a strong equity position with zero total debt in recent years, which is favorable. The equity ratio has remained robust, showing a strong capital structure. However, the return on equity is negative due to continuous net losses, highlighting inefficient utilization of equity.

Cash Flow

The company has struggled to generate positive operating and free cash flows consistently. Despite having substantial cash reserves, the lack of consistent free cash flow is concerning. The positive free cash flow in 2023 is a positive sign but requires sustained improvement.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
174.88M	236.84M	167.82M	110.64M	52.53M
	Gross Profit
60.34M	49.53M	1.35M	-10.07M	-4.30M
	EBIT
-41.77M	-43.16M	-104.25M	-71.65M	-35.72M
	EBITDA
-35.28M	-37.63M	-96.04M	-71.13M	-35.65M
	Net Income Common Stockholders
-33.64M	-34.59M	-96.32M	-71.96M	-37.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
142.48M	215.21M	210.41M	430.84M	38.62M
	Total Assets
420.18M	509.76M	560.85M	579.68M	103.85M
	Total Debt
7.02M	1.31M	0.00	0.00	4.82M
	Net Debt
-135.46M	-215.21M	-210.41M	-430.84M	-33.80M
	Total Liabilities
130.74M	167.31M	196.65M	130.18M	70.67M
	Stockholders Equity
289.44M	342.45M	364.20M	449.50M	33.18M
Cash Flow		Free Cash Flow
-40.51M	2.21M	-82.15M	-71.85M	-28.79M
	Operating Cash Flow
-32.91M	5.98M	-81.04M	-70.38M	-28.49M
	Investing Cash Flow
-7.60M	-6.02M	-130.79M	-9.37M	-2.68M
	Financing Cash Flow
-32.96M	-1.91M	-2.80M	473.93M	48.22M

SmartRent Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.89
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMRT, the sentiment is Positive. The current price of 0.89 is above the 20-day moving average (MA) of 0.86, above the 50-day MA of 0.89, and below the 200-day MA of 1.40, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.67 is Neutral, neither overbought nor oversold. The STOCH value of 61.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SMRT.

SmartRent Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
MAPS	60 Neutral	$174.44M	13.03	23.24%	―	0.20%	―
ONTF	56 Neutral	$240.41M	―	-24.47%	―	-8.39%	7.79%
FRGE	53 Neutral	$194.42M	―	-27.44%	―	16.03%	30.99%
VCSA	52 Neutral	$138.62M	―	-123.26%	―	-18.56%	69.22%
SMRT	51 Neutral	$167.48M	―	-22.66%	―	-25.43%	-135.09%
MRT	42 Neutral	$198.24M	―	103.42%	―	―	―

SmartRent Corporate Events

SmartRent Stockholders Approve Key Proposals at Annual Meeting

On May 13, 2025, SmartRent held its 2025 Annual Meeting of Stockholders, where stockholders voted on two key proposals. The first proposal involved the election of Ann Sperling as a Class I director to serve until the 2028 annual meeting, which was approved. The second proposal was the ratification of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, which was also ratified.

The most recent analyst rating on (SMRT) stock is a Hold with a $2.70 price target. To see the full list of analyst forecasts on SmartRent stock, see the SMRT Stock Forecast page.

SmartRent Reports Q1 2025 Financial Results and Strategy Shift

On May 7, 2025, SmartRent reported its financial results for the first quarter of 2025, highlighting a strategic shift towards a SaaS-focused revenue model. Despite a decrease in total revenue by 18% year-over-year to $41.3 million, the company achieved a 17% increase in SaaS revenue, reflecting its transition away from hardware-led growth. The net loss increased to $40.2 million due to a goodwill impairment, and the company repurchased 1.0 million shares. SmartRent’s management emphasized foundational steps to rebuild the company as a customer-centric organization, aiming for long-term profitable growth and sustained value creation.

SmartRent CEO Resignation and Interim Appointment

On April 10, 2025, SmartRent announced the resignation of Shane Paladin as President, CEO, and Board member, effective April 9, 2025. John Dorman, the Board Chair, has been appointed as interim CEO. The company is actively searching for a permanent CEO while Paladin will serve as an advisor for three months to ensure a smooth transition. The company also reported a preliminary first-quarter revenue decrease of 18-20% compared to the previous year, highlighting potential challenges in maintaining its market position.