v3.25.4
Revenue and Deferred Revenue
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
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.

 

 

 

For the years ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Revenue by geography

 

 

 

 

 

 

 

 

 

United States

 

$

152,165

 

 

$

173,207

 

 

$

235,553

 

International

 

 

161

 

 

 

1,678

 

 

 

1,285

 

Total revenue

 

$

152,326

 

 

$

174,885

 

 

$

236,838

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Revenue by type

 

 

 

 

 

 

 

 

 

Hardware

 

$

57,973

 

 

$

82,844

 

 

$

137,201

 

Professional services

 

 

21,133

 

 

$

18,803

 

 

 

35,473

 

Hosted services

 

 

73,220

 

 

$

73,238

 

 

 

64,164

 

Total revenue

 

$

152,326

 

 

$

174,885

 

 

$

236,838

 

 

 

 

For the years ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SmartRent Solutions

 

Hardware

 

Professional
Services

 

Hosted Services

 

Total 2025

 

 

Hardware

 

Professional Services

 

Hosted Services

 

Total 2024

 

 

Hardware

 

Professional Services

 

Hosted Services

 

Total 2023

 

Smart Communities Solutions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Smart Apartments

 

$

52,833

 

$

18,207

 

$

56,473

 

$

127,513

 

 

$

74,754

 

$

13,095

 

$

57,335

 

$

145,184

 

 

$

130,894

 

$

30,546

 

$

49,696

 

$

211,135

 

 Access Control

 

 

3,485

 

 

1,685

 

 

2,267

 

 

7,437

 

 

 

3,791

 

 

2,378

 

 

1,722

 

 

7,891

 

 

 

3,607

 

 

3,527

 

 

912

 

 

8,047

 

 Community WiFi

 

 

71

 

 

451

 

 

770

 

 

1,292

 

 

 

287

 

 

1,041

 

 

701

 

 

2,029

 

 

 

395

 

 

996

 

 

688

 

 

2,078

 

 Other

 

 

1,584

 

 

790

 

 

3,051

 

 

5,425

 

 

 

4,012

 

 

2,289

 

 

2,100

 

 

8,401

 

 

 

2,305

 

 

404

 

 

1,534

 

 

4,243

 

Smart Operations Solutions

 

 

-

 

 

-

 

 

10,659

 

 

10,659

 

 

 

-

 

 

-

 

 

11,380

 

 

11,380

 

 

 

-

 

 

-

 

 

11,334

 

 

11,334

 

 Total Revenue

 

$

57,973

 

$

21,133

 

$

73,220

 

$

152,326

 

 

$

82,844

 

$

18,803

 

$

73,238

 

$

174,885

 

 

$

137,201

 

$

35,473

 

$

64,164

 

 

236,838

 

 

 

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.

 

 

For the years ended December 31,

 

 

 

2025

 

 

2024

 

Deferred revenue balance as of January 1

 

$

87,659

 

 

$

123,160

 

Revenue recognized from balance of deferred revenue
      at the beginning of the period

 

 

(42,631

)

 

 

(54,624

)

Revenue deferred during the period

 

 

17,014

 

 

 

32,862

 

Revenue recognized from revenue originated
     and deferred during the period

 

 

(6,108

)

 

 

(13,739

)

Deferred revenue balance as of December 31

 

$

55,934

 

 

$

87,659

 

 

As of December 31, 2025, the Company expects to recognize 61% of its total deferred revenue within the next 12 months, 19% of its total deferred revenue between 13 and 36 months, 17% 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 December 31, 2025 and 2024 are $11,783 and $15,155, 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.