Free cash flow remains consistently negative, highlighted by a -42.3% margin in 2025Q2, reflecting the ongoing difficulty in achieving self-sustaining operations.
| Cash from Operations | -13.95M | -21.57M | -32.91M | 5.98M | -77.83M | -70.38M | -28.49M | -21.86M |
| Operating CF Margin % | - | -14.16% | -18.82% | 2.53% | -46.38% | -63.61% | -54.23% | -60.34% |
| Operating CF Growth % | 260.91% | 34.45% | -650.29% | 107.68% | -10.6% | -147.02% | -30.31% | - |
| Net Income | -24.82M | 0 | -33.64M | -34.59M | -96.32M | -71.96M | -37.11M | -30.26M |
| Depreciation & Amortization | 234K | 0 | 6.5M | 5.53M | 4.26M | 463K | 295K | 59K |
| Stock-Based Compensation | -2.84M | 0 | 12.07M | 13.27M | 13.72M | 8.13M | 1.76M | 7.01M |
| Deferred Taxes | 0 | 0 | 0 | 0 | -5.72M | 0 | 0 | 1.75M |
| Other Non-Cash Items | -37.92M | -14.74M | 10.58M | 8.97M | 11.17M | 9.43M | 9.23M | 11.07M |
| Working Capital Changes | -9.16M | -6.83M | -28.42M | 12.8M | -4.94M | -16.43M | -2.66M | -9.75M |
| Change in Receivables | 14.24M | 12.91M | 1.1M | -177K | -15.94M | -23.97M | -13.53M | -4.22M |
| Change in Inventory | 5.11M | 4.5M | -1.28M | 31.69M | -42.81M | -15.78M | -11.09M | -4.54M |
| Change in Payables | -2.8M | 4.19M | -6.4M | -3.48M | 12.45M | 3.81M | -72K | 0 |
| Cash from Investing | -6.24M | -8.63M | -7.6M | -6.02M | -133.99M | -9.37M | -2.68M | -821K |
| Capital Expenditures | -7K | -8.63M | -1.77M | -147K | -1.11M | -1.47M | -298K | -771K |
| CapEx % of Revenue | 0% | 5.66% | 1.01% | 0.06% | 0.66% | 1.33% | 0.57% | 2.13% |
| Acquisitions | 0 | 0 | 0 | -2.25M | -129.68M | -5.9M | -2.38M | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -6.24M | 0 | -5.83M | -3.63M | -3.2M | -2M | 0 | -50K |
| Cash from Financing | -5.55M | -7.44M | -32.96M | -1.91M | -2.8M | 473.93M | 48.22M | 40.98M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | -5.52M | -9.22M | 18.76M |
| Equity Issued (Net) | -2.63M | -4.6M | -28.57M | 0 | 0 | 35M | 57.5M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -3.58M | -4.89M | -28.57M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -2.92M | -2.84M | -4.4M | -1.91M | -2.8M | 443.79M | -61K | 22.22M |
| Net Change in Cash | -26.78M | -37.93M | -73.23M | -2M | -214.89M | 393.99M | 17.19M | 21.42M |
| Free Cash Flow | -16.35M | -25.13M | -40.51M | 2.21M | -82.15M | -71.85M | -28.79M | -22.63M |
| FCF Margin % | -10.93% | -16.5% | -23.16% | 0.93% | -48.95% | -64.94% | -54.8% | -62.47% |
| FCF Growth % | 65.47% | 37.97% | -1934.78% | 102.69% | -14.34% | -149.57% | -27.19% | - |
| FCF per Share | -0.09 | -0.13 | -0.20 | 0.01 | -0.42 | -0.37 | -2.77 | -24.58 |
| FCF Conversion (FCF/Net Income) | 0.66x | 0.36x | 0.98x | -0.17x | 0.81x | 0.98x | 0.77x | 0.65x |
| Interest Paid | 58K | 203K | 259K | 97K | 146K | 254K | 459K | 0 |
| Taxes Paid | 276K | 402K | 236K | 78K | 197K | 14K | 83K | 0 |
Persistent negative operating cash
According to recent quarterly filings, SmartRent's operating cash flow frequently diverges from net income, with the OCF/NI ratio reaching a volatile 1.37 in 2025Q2, suggesting that reported earnings are heavily influenced by non-cash adjustments rather than sustainable cash generation from core operations.
The persistent gap between net income and operating cash flow indicates that the company's accounting earnings are not translating into actual liquidity. Investors should monitor whether this divergence stems from aggressive accrual accounting or the inherent difficulty in monetizing hardware-heavy service contracts.
As reported in financial statements, SmartRent's free cash flow trajectory is characterized by persistent outflows, with a significant negative margin of -42.3% in 2025Q2, underscoring the company's ongoing struggle to achieve self-sustaining operations despite its established presence in the institutional property management sector.
The inability to generate positive free cash flow suggests that the current business model requires continuous external funding to support its operational footprint. This trend warrants further investigation into whether the company can reach a cash-flow-positive inflection point without further diluting shareholder value.
Based on SmartRent's reported figures, working capital changes have been highly erratic, swinging from a $23.4 million inflow in 2024Q3 to an $8.9 million outflow in 2025Q2, which suggests significant instability in the company's ability to manage its inventory and accounts receivable cycles effectively.
These sharp fluctuations in working capital appear to reflect the challenges of managing hardware inventory in a cyclical construction environment. Such volatility complicates cash flow forecasting and may indicate that the company is struggling to align its procurement cycles with actual unit deployment timelines.
As indicated by historical data, SmartRent's capital expenditure as a percentage of revenue has fluctuated, peaking at 9.7% in 2025Q4, which suggests that the firm must continuously reinvest in its infrastructure to maintain its competitive position within the institutional multifamily technology market.
The level of capital intensity appears high for a software-centric business, implying that the company is effectively a hybrid service provider requiring constant hardware refreshes. This capital-heavy requirement may continue to suppress free cash flow margins as the company attempts to scale its installed base.
Quick answers to the most common questions about buying SMRT stock.
SmartRent, Inc. (SMRT) generated $-21.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
SmartRent, Inc. (SMRT) reported negative free cash flow of $25.1M in 2025, indicating capital requirements exceeded cash from operations.
SmartRent, Inc. (SMRT) spent $8.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, SmartRent, Inc. (SMRT) spent $4.9M on share repurchases. This shows the company's commitment to returning capital to its equity investors.