Earnings call transcript: SmartRent Q2 2025 revenue falls short, stock declines

SmartRent Inc. (SMRT) reported its second-quarter 2025 earnings on August 6, revealing a net loss and revenue figures that fell short of expectations. The company posted an earnings per share (EPS) of -$0.06, missing the forecast of -$0.04. Revenue totaled $38.3 million, below the anticipated $41.15 million. Following the announcement, SmartRent’s stock experienced a pre-market decline of 7.68%, with shares trading at $0.91. According to InvestingPro analysis, the company’s current market capitalization stands at $220.17 million, with the stock showing significant volatility (Beta: 1.82).

Key Takeaways

• SmartRent’s Q2 2025 revenue decreased by 21% year-over-year.
• The company reported a net loss of $10.9 million, significantly higher than the previous year’s $4.6 million loss.
• Hardware revenue saw a substantial drop of 39% compared to the same quarter last year.
• SaaS revenue increased slightly, making up 37% of total revenue.
• The company aims for cash flow neutrality by the end of 2025.

Company Performance

SmartRent’s performance in Q2 2025 reflected challenges in its hardware segment, which saw a 39% decline year-over-year. Despite this, the company maintained growth in its SaaS and hosted services, which saw 5% and 1% year-over-year increases, respectively. The company continues to lead in the property technology market, with 850,000 units deployed and a low customer churn rate.

Financial Highlights

• Revenue: $38.3 million, down 21% year-over-year.
• Earnings per share: -$0.06, missing the forecast of -$0.04.
• Hardware revenue: $15.1 million, down 39% year-over-year.
• SaaS revenue: $14.2 million, up from 34% of total revenue in Q1 to 37%.

Earnings vs. Forecast

SmartRent’s EPS of -$0.06 was below the forecasted -$0.04, resulting in an EPS surprise of 50%. Revenue also fell short by 6.93%, highlighting challenges in meeting market expectations. This performance is a deviation from previous quarters where the company had managed closer alignment with forecasts.

Market Reaction

Following the earnings report, SmartRent’s stock dropped by 7.68% in pre-market trading, reflecting investor disappointment with the earnings miss and revenue shortfall. The stock’s current price of $0.91 is near its 52-week low of $0.671, indicating ongoing market challenges.

Outlook & Guidance

Looking forward, SmartRent is focused on achieving cash flow neutrality by the end of 2025. The company plans to enhance operational efficiency, integrate AI into its offerings, and expand its product capabilities. Revenue forecasts for upcoming quarters suggest modest growth, with projections for Q3 2025 at $38.7 million.

Executive Commentary

CEO Frank Martell emphasized the company’s strategic focus, stating, "We want SmartRent technology to be everywhere in the multifamily space." CFO Daryl Stem highlighted the financial strategy, noting, "Our existing deployed base is averaging about $5.66 per unit, and new bookings are averaging in excess of $8." Martell also pointed to AI’s role in future growth, saying, "We have a lot of data, and the use of that data to help our clients make better decisions is an area AI will play a role in."

Risks and Challenges

• Declining hardware revenue poses a risk to overall financial performance.
• Achieving cash flow neutrality by end of 2025 requires continued cost management.
• Market competition and technological advancements could impact growth.
• Macroeconomic pressures may affect customer spending and investment in new technologies.

Q&A

During the earnings call, analysts inquired about the company’s cost reduction strategies and SaaS revenue growth. Executives detailed ongoing efforts to optimize workflows and reduce third-party spending, emphasizing the importance of maintaining a strong cash position. AI integration plans were also discussed as a key growth driver.

Full transcript - SmartRent Inc (SMRT) Q2 2025:

Karen, Conference Operator: Thank you for standing by. My name is Karen, and I will be your conference operator today. At this time, I would like to welcome everyone to the SmartRent Quarter two twenty twenty five Earnings Release. All lines have been placed on mute to prevent any background noise. After today’s presentation, there will be an opportunity to ask questions.

I will now turn the call over to Kelly Reisdorf, Head of Investor Relations. Please go ahead. Hello, and thank you for joining us today. My name is Kelly Reisdorf, Head of Investor Relations for SmartRent. I’m joined today by our President and Chief Executive Officer, Frank Martell, and Daryl Stem, Chief Financial Officer.

Before the market opened today, we issued an earnings release and filed our 10 Q with the SEC, both of which are available on the Investor Relations section of our website. Before I turn the call over to Frank, I would like to remind everyone that the discussion today may contain certain forward looking statements that involve risks and uncertainties. Various factors could cause our actual results to be materially different from any future results expressed or implied by such statements. These factors are discussed in our SEC filings, including in our annual report on Form 10 ks and quarterly reports on Form 10 Q. We undertake no obligation to provide updates regarding forward looking statements made during this call, and we recommend that all investors review these reports thoroughly before taking a financial position in SmartRent.

Also during today’s call, we will refer to certain non GAAP financial measures. A discussion of these non GAAP financial measures along with the reconciliation to the most directly comparable GAAP measure is included in today’s earnings release. We would also like to highlight that the second quarter earnings presentation is available on the Investor Relations section of our website. And with that, I will turn the call over to Frank.

Frank Martell, President and Chief Executive Officer, SmartRent: Thank you, Kelly, and good morning, everyone. We appreciate you joining us for our second quarter twenty twenty five earnings call. Before we dive into the quarter, I want to start by saying how energized I am to be stepping into the CEO role at SmartRent. Over the past year, my service on the board of the company has provided me with critical insights into both the company’s foundational strengths as well as areas we need to address to fully realize our full potential. I believe I bring to SmartRent and all of our stakeholders a significant and long established track record of generating growth and profitability while successfully navigating challenging internal and external factors.

From my point of view, SmartRent’s opportunities for profitable growth and sustained market leadership are compelling. We operate in a large expanding market with a purpose driven differentiated platform and a growing SaaS footprint. As a hardware enabled SaaS company with meaningful scale, our foundation is domain expertise and close alignment with the needs of our customers, both property owners and operators. Our solutions are retrofit friendly, integrate seamlessly with third party hardware and property management systems and are designed to deliver measurable ROI. With roughly 850,000 units deployed, we believe that we have significant scale advantage and are increasingly poised to leverage that advantage through continued operational efficiency, the introduction of new and enhanced capabilities across such areas as IoT, data and analytics, as well as the infusion of AI into our products and operations.

SmartRent delivers strong value that our customers rely on. As a result, we’ve built sticky and long term customer relationships. In a recent survey, 90% of property managers cited net operating income expansion as a key reason for continued investment in SmartRent. As a further proof point, our second quarter net customer revenue retention rate was 108%. We believe that our customers recognize the power of our deep domain expertise and strong platform.

For these reasons and others, we believe that we are uniquely positioned to lead the category during the next phase of growth. Our continued leadership will be built on a relentless focus towards operational rigor and financial discipline as we continue innovation and close customer engagement. In this regard, I will focus my remaining remarks today on key actions the company has, is and will be taking to address our near term challenges, namely resetting our cost structure, returning the company to profitability and accelerating top line growth. Regarding our cost productivity and reduction initiatives, at the end of the first quarter of this year, the team implemented cost actions resulting in more than $10,000,000 in annualized savings. Over the past month, we expanded our cost reduction program by an additional $20,000,000 The majority of our cost reductions come primarily from workflow optimization, lower staffing levels and reduced third party spending.

The $30,000,000 in cost reductions I just discussed should progressively benefit our financial results over the remaining months of this year. Given our expected revenue run rates over the balance of this year and the impact of the cost reduction program, we believe the company is on track to achieve adjusted EBITDA and cash flow neutrality on a run rate basis exiting 2025. As of 06/30/2025, the company has a significant cash balance of $105,000,000 Achieving cash flow neutrality together with a disciplined push on working capital execution, which is expected to generate approximately $15,000,000 of working capital from our balance sheet, should result in us maintaining a significant cash balance. As we head into 2026, our cash reserves will allow us to continue to fund product innovation and further operating efficiencies resulting in a strong base for long term success. At the same time, we are resetting our cost structure.

We have taken important steps towards accelerating top line growth rates as we approach 2026. As you may recall, about a year ago, the company announced a $10,000,000 investment to accelerate product development, enhance deployment capabilities and strengthen our go to market team. We are seeing these investments beginning to bear fruit. The rebuild of our sales organization is yielding increased customer engagement and product enhancements are gaining traction. In Q2, we recorded over 24,000 new units booked, our highest total in over a year.

In addition, our SaaS revenues continue to grow and we saw strong interest in new solutions and product enhancements like our energy dashboard and Smart IQ, which are fueled by SmartRent’s unique data advantage from having nearly 850,000 deployed units comprising over 3,000,000 connected devices. As Daryl will discuss in a few minutes, our revenue growth profile has been negatively impacted over the past year and a half by a conscious decision to transition away from one time bulk hardware deals, lacking alignment to customer implementation timelines. As we enter 2026, we believe our reported growth rates will benefit from better alignment to customer buying cycles. This alignment should result in a shift towards more consistent, predictable and recurring revenue models. In closing, I want to thank the SmartRun team for their focus, resilience and commitment to execution.

I believe in the company and that we are aggressively taking the right steps to realize its full potential. I look forward to sharing our continued progress in the quarters ahead. With that, I’ll turn the call over to Daryl who will take everyone through our quarterly financials for Q2.

Daryl Stem, Chief Financial Officer, SmartRent: Thank you, Frank, and good morning, everyone. We appreciate you joining us today to discuss our second quarter twenty twenty five results. I’ll now walk through the financials and provide some additional context on how we’re executing against our plan, managing the business with discipline and making targeted investments to drive long term growth and operating efficiency. For the 2025, total revenue was $38,300,000 down 7% sequentially from $41,400,000 in the first quarter and down 21% year over year. The year over year decline was primarily attributable to the decision to move away from bulk hardware sales, which Frank alluded to earlier.

This approach is expected to result in more predictable revenue through better alignment with our customers’ buying cycles. Hardware revenue totaled $15,100,000 in the second quarter, representing a 20% decrease sequentially and a 39% decline year over year, reflecting the decision to move away from bulk hardware sales which I just discussed. Professional services revenue came in at 4,300,000 up 10% sequentially from $3,900,000 in Q1 and down 26% from the same quarter prior year. The sequential growth reflects stronger sales organization execution while the year over year comparison continues to reflect the broader slowdown in new unit deployments. Hosted services revenue reached $18,800,000 representing a 1% sequential growth and a 5% increase year over year.

This category now makes up nearly half of our total revenue and continues to benefit from expanding platform usage, high retention and increasing demand for our software capabilities across our installed base. As Frank and I both discussed, these results highlight the underlying transformation in our revenue mix as we move towards a more predictable recurring model that supports long term margin expansion and financial stability. Importantly, SaaS revenue, which is a component of our hosted services revenue for the second quarter totaled $14,200,000 and now comprises 37% of the company’s total revenue, up from 34% in Q1 and 26% from the prior year quarter. Our annual recurring revenue reached $56,900,000 up 11% year over year. This growth reflects the continued expansion of our recurring revenue base and the successful execution of our strategy to drive higher margin platform led value.

SaaS ARPU reached $5.66 which is up slightly from $5.63 year over year while units booked SaaS ARPU rose to $8.21 up from $8.07 in the same quarter last year. These improvements reflect disciplined pricing, enhanced value delivery and our ability to drive more revenue per booked unit as our platform capabilities expand. SaaS gross profit came in at $10,000,000 up 1% sequentially and up 4% year over year, resulting in a gross margin of roughly 70%. This continued strength underscores the efficiency and scalability of our software infrastructure and reinforces the core thesis behind our shift to a higher quality revenue mix. As of the end of Q2, SmartRent has approximately 850,000 units deployed, an increase of 3% sequentially and 10% year over year.

This continued growth in our installed base reflects steady adoption across our customer portfolio. Importantly, the quality of our installed base remains strong. Churn is exceptionally low, less than oneten of 1%, and net revenue retention continues to exceed 100%, supported by consistent customer engagement across the platform. These characteristics position us to drive increasingly predictable cash flows as we continue to execute against our financial and operational targets. We booked over 24,000 units in the quarter representing our highest quarterly booking performance in more than a year and signaling early commercial traction following our go to market rebuild.

Total gross profit in the quarter was $12,700,000 compared to $17,300,000 in the prior year quarter reflecting the impact of lower hardware shipments and associated margin mix. By segment, hardware gross profit was $2,300,000 down from $8,400,000 in the prior year reflecting lower shipment volume and continued transition away from bulk hardware deals and changes in product mix. Professional services gross loss improved to $1,900,000 compared to a loss of $3,100,000 in the prior year quarter, driven by operational efficiencies and improved unit economics. And finally, hosted services gross profit totaled $12,300,000 essentially in line with the prior year quarter. Gross margin in Q2 was 33%, down from 36% in the prior year quarter, reflecting the impact of unfavorable changes in a hardware product mix, partially offset by continued strong SaaS gross margins of 70% in the quarter.

We continue to believe SaaS margins can expand over time with scale and further infrastructure optimization. Operating expenses were $24,400,000 compared to $24,200,000 in the prior year. Q2 twenty twenty five included approximately $2,000,000 of severance and legal expenses, which have no prior year counterpart. Net losses increased to $10,900,000 compared to $4,600,000 in the prior year quarter, primarily reflecting lower hardware sales, which were discussed previously. Adjusted EBITDA was negative 7,300,000 a year over year decline of $8,300,000 We ended the quarter with $105,000,000 in cash, no debt and $75,000,000 in the undrawn credit, giving us a strong balance sheet and the flexibility to execute from a position of strength.

During the quarter, we used a total of $20,600,000 of cash. Cash used was primarily a result of $6,000,000 from operating losses net of non cash expenses, 8,500,000.0 of accounts receivable growth and we repurchased 3,700,000 of our stock. As we’ve discussed, one of our key short term financial goals is to achieve a cash flow neutral run rate as we exit 2025. To support that, we remain focused on driving operating efficiency while continuing to reinvest in our highest return areas of organic growth. During the second quarter, we continued to take aggressive actions to right size our cost base and invest in our future growth as well as our operational effectiveness.

The majority of our targeted cost reductions have been actioned and we believe they’ll contribute to achieving adjusted EBITDA profitability and run rate cash neutrality exiting 2025. As I discussed earlier, we’re taking actions to reduce our cash burn and to preserve a significant cash position as we head into 2026. These funds will allow us to fund additional value creating opportunities, including investments in our go to market organization as well as new products and solutions that should promote growth within existing customers as well as potential new customers. We are executing with clarity, operating with discipline and building a stronger business every quarter. Our strategy is focused, our team is aligned and we believe the foundation we’re putting in place positions us for long term value creation.

Thank you for your continued support. Operator, you may now open the line for questions.

Karen, Conference Operator: The first question comes from Ryan Tomasello from KBW. Your line is open.

Ryan Tomasello, Analyst, KBW: Hi, everyone. Thanks for taking the questions. In terms of the $20,000,000 of incremental cost savings, I know you gave some color in your prepared remarks, but maybe a bit more detail on the sources of those savings. And from here, do you think there could be more room to extract some efficiencies beyond the cumulative cumulative 30,000,000, or do you feel like you’re done with the expense side of the p and l for the time being?

Frank Martell, President and Chief Executive Officer, SmartRent: Hi, Ryan. It’s Frank Martell. Yeah. Look. I think the three the three areas that I covered are you know, that’s where the predominant amount of the of the reductions are.

You know, a lot of a lot of it is staffing reductions and third party spending. Those are the two principal areas. You know, to answer your question regarding the future, I think there is plenty of productivity yet to come to the company as we, you know, work on the fundamental workflows and bring in some automation, some some additional talent. So I do think there is continued efficiency as well as procurement. There’s, like, procurement of hardware and that that sort of thing.

So there’s more runway, and I think that the good news is

Yi Foo Li, Analyst, Cantor Fitzgerald: we

Frank Martell, President and Chief Executive Officer, SmartRent: executed substantially all of the actions necessary to achieve the 30,000,000. We’re already seeing benefit in the p and l, and I would expect, as I mentioned in my my script, that, you know, that that should be, over the course of this year, that we’ll come out of this year with about 30,000,000 substantially, running through the p and l.

Ryan Tomasello, Analyst, KBW: And, Frank, now that you’ve had a few months as CEO, and I know you’ve had some tenure on the board as well, maybe just another opportunity to give us your holistic view as it stands today on on how you intend to evolve and and refine SmartRent strategy going forward. You know, just generally where you feel like some of the more attractive and low hanging fruit opportunities are to reposition the business in order to drive growth from here? Thanks.

Frank Martell, President and Chief Executive Officer, SmartRent: Yeah. So, you know, a couple couple comments there. Number one is the team is great here. It’s really dedicated, smart, and creative. And I think, from my point of view, that’s the basic building ingredient needed to go forward.

I think our customers I’ve been on a number of customer calls, and I think we’ve got really good relationships despite, you know, all of the kind of the ups and downs in the last year years year or two. So that’s also, I think, something that is sticky. We have a huge installed base. I think there’s room to grow that installed base as well. Our clients are all very positive about the company and what we contribute to their their their operation and their success.

So from that point of view, you know, our customers are sticking with us, and I think that there there’s room in every account to grow. I think there’s also new segments that we haven’t played in that we we’re looking at. So think there’s plenty of opportunity for growth that strikes me. You know, I’ve been in businesses where, you know, starting out with a with a very sticky customer and a scale advantage that we have, you know, 850,000 appointments with 3,000,000 connected devices is a is a great opportunity for us to expand. We’re gonna invest selectively in AI.

Think from that, you know, everybody’s doing that, but we we really have not done it to the degree that we we should and could. So I think that’s another area. And that offers us both, I think, internal efficiency and offers our customers more value. So there’s plenty of opportunity to grow. It’s just unfortunate that we’ve had this whipsaw effect of these bulk hardware sales that now work through their the system, and we’re seeing the end of that.

Hopefully, as we get into fourth quarter. And so, we’ll just, without that, I think, as Daryl said, we’ll have a more predictable revenue, trajectory than we’ve had in the in the last year and a half.

Ryan Tomasello, Analyst, KBW: Appreciate the color. Thanks for taking the questions.

Yi Foo Li, Analyst, Cantor Fitzgerald: The

Karen, Conference Operator: next question comes from Yi Foo Li from Cantor Fitzgerald. Your line is open.

Yi Foo Li, Analyst, Cantor Fitzgerald: Thank you for taking my question. Welcome, Frank, to the seat. And Daryl, nice to chat with you again. So like my question, Frank, is similar to Tom. Like, I just want to get more clarity, color on your vision, your strategy in terms of, like, what is new from your current plan?

I know you sit on the board before, so you have experience with SmartRent versus the prior CEO. What what is different that we should expect? And I also have more follow-up on.

Frank Martell, President and Chief Executive Officer, SmartRent: Yeah. Look. I think from my point of view, I’d like to have a smart rent set up in every in every apartment in in the country. I think we have that capability. And so I’d like smart rent technology to be everywhere in the multifamily space, and I think we we we have a good jump on that.

We’re certainly the the big players. I think we have a little work to do to make sure that the the economics work for smaller installations, but I think that that’s that’s not gonna be a major issue for us because the heritage of the company is starting with the with the really the large players and building out a a big scale. So I I think, you know, from my point of view, strategically, we wanna expand the company. We need to get more operating leverage, to be honest. So that’s both on the hardware and the software side.

And that’s about, you know, everywhere from installation to operations. You have to make sure that, you know, one plus one equals three. And so, those are operational matters that I think we have a good line of sight dealing with. And then, look, I think there’s a there’s a big game to play in AI. Everybody’s struggling to get talent in in the AI space, but but, you know, customer engagement, operational effectiveness, planning, and and product are all gonna benefit from AI.

We have done some work there. We have a lot of data to put to work as well. So so I think those are all great opportunities, very significant opportunities over the long run. And so the good news is we don’t lack for opportunities. We just have to do it effectively and and to make sure that it results in profitability, which is what Daryl mentioned when he talked about financial discipline and rigor around to tracking and and measuring our success.

Yi Foo Li, Analyst, Cantor Fitzgerald: That makes sense, Frank. And for me to follow this, you know, like, the SaaS revenue model adoption, obviously, staying at 37% of total revenue. Now, obviously, Derek, you can help out on this as well. Think it cuts to the financials as well. You mentioned by the end of this year, the hardware headwind will subside.

Does that mean, like, 2026, we should see expansion? That’s number one. And two, can you help us walk through the journey, like, the the transition journey in terms of getting customers to get to SaaS. Understand if it’s a new customer, I presume you’re gonna wanna sell SaaS. But if I’m already an existing customer, how hard is it to get them to SaaS with the understanding that, obviously, SaaS enjoys a higher, you know, margin, like you said, over 70% and there’s more to go.

Right?

Frank Martell, President and Chief Executive Officer, SmartRent: Yeah. Let me I’ll I’ll hand it over to Dale. Other than I I just wanna mention on the revenue point, you know, when you do bulk hardware sales, they’re very large as a percentage of our revenue in some in some quarters. So when you eliminate that, you know, those sales don’t go away. They just they just have a different timing profile.

So, you know, from point of view, the lumpiness will will dissipate, and you’ll have more progressive growth profile. I’m not saying every quarter necessarily will be growth, but but you should see a growth profile. And in a business like this, we should see an acceleration of growth because we have a lot of virgin territory to go after in terms of customers and products. And I think from that point of view, it’s a big space. And we have a big big base already, but it could get much, much bigger.

I think that’s those are the fundamental drivers. But I’ll let Daryl kinda cover the other the other matter just so you you know, we strictly complete this.

Daryl Stem, Chief Financial Officer, SmartRent: Yes. Some additional thoughts on on the SaaS revenue. For us, our primary driver of increased SaaS revenue is adding new units onto our platform. And the number of units that we currently have deployed is about 850,000 in total, and that represents about a 10% increase year over year. So number one, simply expanding the installed base is very important.

The other is we’ve been increasing and enhancing our product offering to deliver more value to our customers, and it’s reflecting itself in a higher average SaaS ARPU. What’s really important to note with regards to the, ARPU metrics is that our existing deployed base is averaging about $5.66 per unit, and the new bookings that will then become deployed units are averaging in excess of $8. So what that tells us is that we’re offering an enhanced value, and we just wanna make sure, one of our objectives would be to continue to book SaaS at rates that are above our existing deployed SaaS rate.

Yi Foo Li, Analyst, Cantor Fitzgerald: Got it. Got it. And then, Daryl, let me, you know, end it with one one last question. I’ll ask them both at the same time. It’s more financially related.

You mentioned adjusted EBITDA as well as free cash flow neutrality as you exit April of this year. So does this mean that going forward 2026 and beyond, should we expect, you know, either breakeven or above? That’s number one. And then, Frank, on the product side, you mentioned about infusing AI into the product. Can you, you know, tease us a little bit more on what are the things that in your roadmap technology roadmap that you wanna build into the product?

You know, as Daryl mentioned, obviously, the new book is you’re you’re enjoying over $8 in ARPU. So I I just wanna get a sense of the AI infusion.

Daryl Stem, Chief Financial Officer, SmartRent: Yeah. First, let me answer your first part of the question is we believe that we’re positioning ourselves to exit this year on a breakeven basis. We’re not yet giving guidance, you know, formal guidance. We do hope to provide that at some point in the not too distant future. But, we’re simply saying that we’ve, now aligned or planning on fully implementing a plan to align our cost, with our existing revenue level.

And then with continued discipline, financial discipline, you know, we would anticipate positioning ourselves for profitable growth, leveraging our existing operating expenses, and optimizing our operations further. But we’re not yet formally instituting guidance to be clear.

Frank Martell, President and Chief Executive Officer, SmartRent: Yeah. And look, to answer your question on on AI, but just just to also mention, you know, the idea, we have a $105,000,000 cash at the end of of of the second quarter. We wanna keep that that cash and invest it in the future, and I think that’s the opportunity that we have that we’re laser focused on. And so and and, you know, eventually grow the the balance because because that’ll be the fuel for investment and realizing our full fullest potential over, you know, the three to five year kind of planning horizon. In terms of AI, you know, we are already in AI to a certain degree.

I’d say it’s small at this point. You know, we have a lot of data, and so the use of that data to help our clients make better decisions is an area, for example, that AI will play a role in. In addition, across our ability to to, you know, having our 850,000, u units installed, you know, is a is a a pretty large servicing effort as well. So this helps us to be very efficient in responding to customer, inquiries. And then, you know, eventually, it’ll help us to, I think, diagnose and detect, risk elements, you know, for example, leaks and and other things.

So there’s a lot of, of application to AI here for both our workflow and for our customers’ workflow, and that’s really where we’re gonna focus the next twelve to eighteen months.

Karen, Conference Operator: And that concludes our Q and A session. I will now turn the call over to Frank Martel for closing remarks.

Frank Martell, President and Chief Executive Officer, SmartRent: Okay. Thanks, operator. Look, in closing, I want to thank all of our talented employees and all of our stakeholders for for your ongoing support. It’s very meaningful. I think we’ve laid out a clear plan at this point to drive for profitability in the coming quarters and to grow our business with property owners and operators in a more rapid pace as we get into 2026.

You know, we’re gonna remain laser focused the next couple quarters on disciplined execution and market leadership, and that’s the, that’s the recipe for our long term success. So, thanks, everybody, and I look forward to reporting more on our progress in the coming quarters.

Karen, Conference Operator: That concludes today’s call. Thank you all for joining and you may now disconnect.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.