| Revenue and Deferred Revenue |
NOTE 4. REVENUE AND DEFERRED REVENUE Disaggregation of Revenue In the following tables, revenue is disaggregated by primary geographical market, type of revenue, and SmartRent Solution.
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For the three months ended June 30, |
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For the six months ended June 30, |
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2025 |
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2024 |
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2025 |
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2024 |
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Revenue by geography |
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United States |
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$ |
38,288 |
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$ |
47,852 |
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$ |
79,608 |
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$ |
98,153 |
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International |
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20 |
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|
666 |
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44 |
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|
854 |
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Total revenue |
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$ |
38,308 |
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$ |
48,518 |
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$ |
79,652 |
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$ |
99,007 |
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For the three months ended June 30, |
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For the six months ended June 30, |
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2025 |
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2024 |
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2025 |
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2024 |
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Revenue by type |
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Hardware |
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$ |
15,143 |
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$ |
24,676 |
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$ |
33,973 |
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$ |
53,753 |
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Professional services |
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4,327 |
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5,816 |
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8,220 |
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$ |
9,274 |
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Hosted services |
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18,838 |
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18,026 |
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|
37,459 |
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$ |
35,980 |
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Total revenue |
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$ |
38,308 |
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$ |
48,518 |
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$ |
79,652 |
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$ |
99,007 |
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For the three months ended June 30, |
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For the six months ended June 30, |
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2025 |
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2024 |
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|
2025 |
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2024 |
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(dollars in thousands) |
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(dollars in thousands) |
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SmartRent Solutions |
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Hardware |
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Professional Services |
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Hosted Services |
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Total 2025 |
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Hardware |
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Professional
Services |
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Hosted Services |
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Total 2024 |
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Hardware |
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Professional
Services |
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Hosted Services |
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Total 2025 |
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Hardware |
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Professional Services |
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Hosted Services |
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Total 2024 |
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Smart Communities Solutions |
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Smart Apartments |
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$ |
13,558 |
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$ |
3,807 |
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$ |
14,609 |
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$ |
31,974 |
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$ |
22,124 |
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$ |
4,461 |
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$ |
14,146 |
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$ |
40,731 |
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$ |
31,255 |
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$ |
6,801 |
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$ |
29,024 |
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$ |
67,080 |
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$ |
49,556 |
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$ |
7,171 |
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$ |
28,216 |
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$ |
84,943 |
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Access Control |
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1,193 |
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|
267 |
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614 |
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2,074 |
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866 |
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918 |
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379 |
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2,163 |
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1,832 |
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743 |
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1,145 |
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3,720 |
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1,883 |
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1,517 |
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735 |
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4,135 |
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Community WiFi |
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54 |
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41 |
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|
209 |
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|
304 |
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13 |
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221 |
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|
179 |
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|
413 |
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57 |
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|
259 |
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|
402 |
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|
718 |
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|
147 |
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234 |
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|
346 |
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|
727 |
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Other |
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|
338 |
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212 |
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|
781 |
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1,331 |
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1,673 |
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216 |
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|
551 |
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2,440 |
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829 |
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417 |
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1,464 |
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2,710 |
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2,170 |
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396 |
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961 |
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3,527 |
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Smart Operations Solutions |
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- |
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- |
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2,625 |
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2,625 |
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- |
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- |
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2,771 |
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2,771 |
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- |
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- |
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5,424 |
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5,424 |
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(3 |
) |
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(44 |
) |
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5,722 |
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|
5,675 |
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Total Revenue |
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$ |
15,143 |
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$ |
4,327 |
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$ |
18,838 |
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$ |
38,308 |
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$ |
24,676 |
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$ |
5,816 |
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$ |
18,026 |
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$ |
48,518 |
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$ |
33,973 |
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$ |
8,220 |
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$ |
37,459 |
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$ |
79,652 |
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$ |
53,753 |
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$ |
9,274 |
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$ |
35,980 |
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$ |
99,007 |
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Remaining Performance Obligations Advance payments received from customers are recorded as deferred revenue and are recognized upon the completion of related performance obligations over the period of service. Advance payments for non-distinct Hub Devices were recorded as deferred revenue and recognized over their average in-service life. Advance payments received from customers for subscription services are recorded as deferred revenue and recognized over the term of the subscription. A summary of the change in deferred revenue is as follows.
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For the six months ended June 30, |
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2025 |
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2024 |
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Deferred revenue balance as of January 1 |
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$ |
87,659 |
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$ |
123,159 |
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Revenue recognized from balance of deferred revenue
at the beginning of the period |
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(21,448 |
) |
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(8,656 |
) |
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Revenue deferred during the period |
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6,187 |
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7,075 |
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Revenue recognized from revenue originated
and deferred during the period |
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(807 |
) |
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(2,010 |
) |
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Deferred revenue balance as of March 31 |
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71,591 |
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119,568 |
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Revenue recognized from balance of deferred revenue
at the beginning of the period |
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(8,454 |
) |
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(8,914 |
) |
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Revenue deferred during the period |
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6,202 |
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4,244 |
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Revenue recognized from revenue originated
and deferred during the period |
|
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(2,982 |
) |
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(3,040 |
) |
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Deferred revenue balance as of June 30 |
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66,357 |
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111,858 |
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As of June 30, 2025, the Company expects to recognize 57% of its total deferred revenue within the next 12 months, 22% of its total deferred revenue between 13 and 36 months, 18% between 37 and 60 months, and the remainder is expected to be recognized beyond five years. Contracts may contain termination for convenience provisions that allow the Company, customer, or both parties the ability to terminate for convenience, either at any time or upon providing a specified notice period, without a substantive termination penalty. Included in deferred revenue as of June 30, 2025 and 2024 are $13,283 and $30,635, respectively, of prepaid fees related to contracts with termination for convenience provisions which are refundable at the request of the customer. Based on the Company's historical experience, customers do not typically exercise their termination for convenience rights. Deferred cost of revenue includes all direct costs included in cost of revenue that have been deferred to future periods.
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