The 5 Most Interesting Analyst Questions From SmartRent’s Q2 Earnings Call

August 13, 2025 at 01:41 AM EDT

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SmartRent’s second quarter results were met with a significant positive market response, as management emphasized a strategic transition away from bulk hardware sales toward a more predictable, recurring revenue model. CEO Frank Martell highlighted that the company’s focus on cost reductions and operational efficiency is starting to deliver measurable benefits. Martell noted, “We’ve built sticky and long-term customer relationships,” referencing a 108% net customer revenue retention rate, and stressed that the company’s installed base of approximately 850,000 units provides a strong foundation for future growth.

Is now the time to buy SMRT? Find out in our full research report (it’s free).

SmartRent (SMRT) Q2 CY2025 Highlights:

Revenue: $38.31 million vs analyst estimates of $38.86 million (21% year-on-year decline, 1.4% miss)
Adjusted EPS: -$0.06 vs analyst estimates of -$0.03 ($0.03 miss)
Adjusted EBITDA: -$7.35 million vs analyst estimates of -$6.16 million (-19.2% margin, 19.3% miss)
Operating Margin: -30.5%, down from -14.3% in the same quarter last year
Annual Recurring Revenue: $56.9 million vs analyst estimates of $58.37 million (11.1% year-on-year growth, 2.5% miss)
Billings: $33.07 million at quarter end, down 19% year on year
Market Capitalization: $255.8 million

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From SmartRent’s Q2 Earnings Call

Ryan John Tomasello (KBW) pressed for details on the $20 million in new cost savings and whether further efficiencies were possible. CEO Frank Martell said most savings came from staffing and third-party spend, with additional productivity expected from workflow automation.
Ryan John Tomasello (KBW) sought Martell’s perspective on evolving SmartRent’s strategy and where future growth opportunities exist. Martell highlighted investing in AI, expanding the customer base, and leveraging the current scale advantage as priorities.
Yi Fu Lee (Cantor Fitzgerald) asked about what distinguishes Martell’s strategy from the prior CEO and how SmartRent plans to address smaller installations. Martell emphasized seeking more operating leverage and increasing the company’s reach in the multifamily market.
Yi Fu Lee (Cantor Fitzgerald) inquired about the transition to SaaS, the ease of moving existing customers to new models, and margin expectations. CFO Daryl Stemm explained that new bookings are at higher ARPU, and growth is tied to expanding the installed base and product enhancements.
Yi Fu Lee (Cantor Fitzgerald) questioned progress toward adjusted EBITDA and cash flow neutrality, and how AI will be infused into products. Stemm reiterated the plan for breakeven by year-end, while Martell outlined AI’s role in both workflow efficiency and customer value.

Catalysts in Upcoming Quarters

In coming quarters, the StockStory team will closely watch (1) SmartRent’s progress in expanding its SaaS revenue as a share of total sales, (2) the operational impact and realized savings from its cost reduction initiatives, and (3) the effectiveness of new AI-powered features in driving customer engagement and retention. Additional milestones include the pace of new unit deployments and the company’s ability to achieve its targeted break-even run rate.

SmartRent currently trades at $1.40, up from $0.98 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

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The 5 Most Interesting Analyst Questions From SmartRent’s Q2 Earnings Call

SmartRent (SMRT) Q2 CY2025 Highlights:

Our Top 5 Analyst Questions From SmartRent’s Q2 Earnings Call

Catalysts in Upcoming Quarters

The Best Stocks for High-Quality Investors

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