SmartRent (SMRT) AI Stock Analysis

• Market Cap: $278.34M
• Dividend Yield: N/A
• Average Volume (3M): 1.45M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.73
• Revenue Growth: -28.45%
• EPS Growth: -224.48%
• Country: US
• Employees: 494
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.06
• Shares Outstanding: 188,070,620
• 10 Day Avg. Volume: 1,508,299
• 30 Day Avg. Volume: 1,454,193
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.32
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: 1.77
• Enterprise Value/Ebitda: -1.91
• 1Y Price Target: $1.48
• Price Target Upside: 2.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• Price Target: $1.00 ▼(-31.03% Downside)

SmartRent's strong balance sheet and strategic shift towards SaaS are positives, but ongoing profitability challenges and valuation concerns weigh on the score. Technical indicators suggest bullish momentum, yet overbought conditions may limit immediate upside.

Positive Factors

Financial Stability

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

SaaS Growth

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

Negative Factors

Earnings

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

Hardware Sales

Hardware revenue for the quarter was $10.4 million, down 72% from last year, mainly due to the company shifting away from their previous over reliance on hardware sales.

Revenue Decline

Quarterly revenue totaled $41.3 million, marking an 18% decrease from the previous year.

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 has shown revenue growth but faces profitability challenges with persistent losses. The strong balance sheet with no debt is a positive, providing financial stability. However, cash flow generation remains a critical 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	155.53M	174.88M	236.84M	167.82M	110.64M	52.53M
Gross Profit	49.84M	60.34M	49.53M	1.35M	-10.07M	-4.30M
EBITDA	-46.23M	-35.28M	-37.63M	-96.04M	-71.13M	-35.65M
Net Income	-72.39M	-33.64M	-34.59M	-96.32M	-71.96M	-37.11M
Balance Sheet
Total Assets	353.97M	420.18M	509.76M	560.85M	579.68M	103.85M
Cash, Cash Equivalents and Short-Term Investments	105.04M	142.48M	215.21M	210.41M	430.84M	38.62M
Total Debt	6.42M	7.02M	1.31M	0.00	0.00	4.82M
Total Liabilities	115.12M	130.74M	167.31M	196.65M	130.18M	70.67M
Stockholders Equity	238.85M	289.44M	342.45M	364.20M	449.50M	33.18M
Cash Flow
Free Cash Flow	-48.65M	-40.51M	2.21M	-82.15M	-71.85M	-28.79M
Operating Cash Flow	-42.80M	-32.91M	5.98M	-81.04M	-70.38M	-28.49M
Investing Cash Flow	-11.45M	-7.60M	-6.02M	-130.79M	-9.37M	-2.68M
Financing Cash Flow	-29.39M	-32.96M	-1.91M	-2.80M	473.93M	48.22M

SmartRent Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1.45 is above the 20-day moving average (MA) of 1.37, above the 50-day MA of 1.15, and above the 200-day MA of 1.24, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 61.64 is Neutral, neither overbought nor oversold. The STOCH value of 39.06 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
MAPS	65 Neutral	$194.12M	14.34	22.69%	―	2.37%	―
Sector *	61 Neutral	$35.45B	8.20	-10.60%	1.91%	8.56%	-9.51%
SMRT	58 Neutral	$278.34M	―	-25.48%	―	-28.45%	-224.48%
FRGE	58 Neutral	$256.39M	―	-28.14%	―	14.78%	21.87%
ONTF	56 Neutral	$241.99M	―	-22.60%	―	-6.88%	15.83%
VCSA	52 Neutral		―		―	-18.56%	69.22%
MRT	46 Neutral	$193.62M	―	103.42%	―	―	―

SmartRent Corporate Events

SmartRent Reports Q2 2025 Financial Results Amid Revenue Drop

On August 6, 2025, SmartRent reported its financial results for the second quarter of 2025, showing a 21% decrease in revenue to $38.3 million, primarily due to a strategic shift away from bulk hardware sales. Despite an increased net loss of $10.9 million, the company expanded its cost reduction program to $30 million, aiming for cash flow neutrality by the end of 2025. SmartRent maintained a strong liquidity position with $105 million in cash and a $75 million undrawn credit facility, while continuing to invest in growth through new products and AI integration.

SmartRent Appoints Thomas Bohjalian to Board of Directors

On June 23, 2025, SmartRent, Inc. appointed Thomas Bohjalian to its Board of Directors, where he will also serve on the Audit and Compensation Committees. Bohjalian, who brings over 30 years of experience in real estate and finance, is expected to provide strategic oversight to SmartRent, enhancing its service to the rental housing industry. His appointment is anticipated to strengthen SmartRent’s market positioning by leveraging his expertise in real estate and public company governance, aligning with the company’s focus on serving multifamily operators and residents.

SmartRent Appoints Frank Martell as New CEO

On June 16, 2025, SmartRent, Inc. announced the appointment of Frank Martell as its new President and CEO, succeeding John Dorman who will continue as Chairman of the Board. Martell, with over 30 years of executive leadership experience, aims to drive SmartRent’s market presence and operational efficiency, leveraging his expertise in data-driven innovation to enhance the company’s customer-centric, execution-driven approach. His leadership is expected to strengthen SmartRent’s market-leading position and deliver long-term value for shareholders.