Home / Business and Economy / SmartRent Earnings Disappoint as Revenue Declines Ahead of AI Disruption
SmartRent Earnings Disappoint as Revenue Declines Ahead of AI Disruption
5 Aug
Summary
- SmartRent's Q2 revenue down 19.9% year-over-year
- Analysts expect continued losses despite recent peer growth
- Generative AI set to significantly impact the industry
On August 5th, 2025, smart home company SmartRent (NYSE:SMRT) is set to announce its latest earnings results. The company, which specializes in smart home technology, has faced a challenging period leading up to this report.
Last quarter, SmartRent fell short of analysts' revenue expectations, reporting a 18.1% year-over-year decline. The company also missed estimates for adjusted operating income and EBITDA. This quarter, analysts are forecasting a further 19.9% revenue decline for SmartRent, indicating a continued deceleration in the business.
Despite the recent struggles, the majority of analysts covering the company have maintained their estimates over the past month, suggesting they believe SmartRent will stay the course heading into the earnings announcement. However, the company has a history of missing Wall Street's revenue targets, having done so six times in the last two years.
Interestingly, some of SmartRent's peers in the electrical equipment segment have reported more positive results. Vontier, for example, delivered 11.1% year-over-year revenue growth and beat analysts' expectations by 5.4%. AMETEK also reported a 2.5% revenue increase, topping estimates by 2.8%. These stronger performances by competitors have not gone unnoticed by investors, who have seen the electrical equipment sector rise by an average of 1.4% over the past month.
As SmartRent heads into its earnings announcement, the company's share price has declined by 6.5% during the same period, trading at an average analyst price target of $1.65 (compared to the current share price of $1.01). This suggests that investors may be bracing for further disappointment from the smart home technology provider.
One factor that could be weighing on the company's outlook is the growing impact of generative AI on the industry. While tech giants like Nvidia and AMD are trading near all-time highs, a lesser-known but profitable semiconductor stock is seen as a potential beneficiary of the rise of AI. Investors will be closely watching how SmartRent and the broader electrical equipment sector adapt to this rapidly evolving technological landscape.
