SmartRent (SMRT) has wrapped up FY 2025 with fourth quarter revenue of US$36.5 million and a basic EPS loss of US$0.02, alongside trailing twelve month revenue of US$152.3 million and a basic EPS loss of US$0.32. Over recent quarters, the company has reported revenue of US$41.3 million with a basic EPS loss of US$0.21 in Q1 2025 and US$36.5 million with a basic EPS loss of US$0.02 in Q4 2025. During this period, trailing twelve month revenue has ranged between US$151.2 million and US$174.9 million, and basic EPS has remained in loss-making territory. For investors, the focus is on how these headline losses compare with SmartRent's efforts to tighten margins and the potential rewards associated with its growth profile.

See our full analysis for SmartRent.

With the latest numbers available, the next step is to assess how this earnings profile aligns with widely followed narratives about SmartRent's growth prospects and path to profitability, and whether any aspects of that story may need updating.

See what the community is saying about SmartRent

Losses narrow from Q1 to Q4

• Across FY 2025, net income moved from a loss of US$40.2 million in Q1 to a loss of US$3.2 million in Q4, while revenue over the same quarters ranged between US$36.2 million and US$41.3 million.
• Analysts' consensus view links this gradual narrowing of quarterly losses to the shift toward higher margin SaaS revenue, but there is tension because trailing 12 month net income is still a loss of US$60.6 million.
  • Supporters of the consensus view point to SaaS now making up 37% of revenue with margins around 70%, which aligns with the idea that profitability can improve as this mix continues to change.
  • At the same time, the long term context that losses have declined at about 3.3% per year over five years still leaves SmartRent firmly in loss making territory, so the path to positive net income is not yet evident in the trailing figures.

Revenue forecasts vs current losses

• On a trailing 12 month basis, SmartRent generated US$152.3 million of revenue with a net income loss of US$60.6 million, while forecasts referenced in the data point to revenue growth of 17.4% per year and a move toward profitability within roughly three years.
• Consensus narrative expectations around a larger, higher value installed base and AI driven platform features are being weighed against the recent 21% year on year revenue decline tied to lower hardware sales.
  • Bulls highlight that higher average revenue per unit for new bookings, cited at US$8.21 versus US$5.66 for the deployed base, supports the idea of stronger recurring revenue per customer over time.
  • Critics focus on the current loss of US$60.6 million and the reliance on forecasts that assume both revenue growth and margin improvement, which is not yet visible in the trailing net income figures.

If you want to see how other investors are weighing this trade off between revenue growth and profitability, have a look at what the community is saying through Curious how numbers become stories that shape markets? Explore Community Narratives.

Valuation gap vs DCF fair value

• The data show SmartRent trading on a P/S of 2.2x compared with 2.6x for the US Electronic industry and 12.9x for peers, with a DCF fair value of US$16.49 versus the current share price of US$1.75.
• Supporters of the bullish view argue that this gap between P/S multiples and DCF fair value reflects the market underappreciating forecast earnings growth, while the ongoing losses keep some investors cautious.
  • The bullish case leans on very large forecast earnings growth and an expected transition to profitability, which helps justify a DCF fair value that is many times above the current market price.
  • On the other hand, skeptics point out that trailing 12 month earnings are still negative, so the current 2.2x P/S multiple is being set on unprofitable revenue, which makes the valuation heavily dependent on those forward looking assumptions playing out.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for SmartRent on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this mix of optimism and caution has you on the fence, it is a good time to look through the data yourself and form a view quickly. As you weigh the latest figures against your own expectations, it can also help to check the specific areas the market seems most upbeat about through 2 key rewards.

See What Else Is Out There

SmartRent is still reporting sizeable losses alongside unprofitable revenue, with its valuation heavily tied to optimistic forecasts rather than proven earnings.

If you want ideas where the balance of price and fundamentals already looks more supportive, check out our 46 high quality undervalued stocks that could fit a tighter risk reward profile.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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