Hello, and thank you for joining us today. My name is Kelly Reisdorf, Head of Investor Relations for SmartRent, Inc. I am joined today by our President and Chief Executive Officer, Frank Martell, and Daryl Stemm, Chief Financial Officer. Before the market opened today, we issued an earnings release and filed our 10-K 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, Inc. Also, during today's call, we will refer to certain non-GAAP financial measures. A discussion of these non-GAAP financial measures, along with a reconciliation to the most directly comparable GAAP measure, is included in today's earnings release. We would also like to highlight that our quarterly earnings presentation is available on the Investor Relations section of our website. I will now turn the call over to Frank Martell.

Thanks, Kelly, and good morning, everyone. 2025 marked an inflection point for SmartRent, Inc. Today, I am going to highlight a number of key takeaways from 2025, both operationally and financially, as well as provide comments on 2026 and our strategic plan, we are calling Vision 2028. In many ways, 2025 was a critical year for the company. Through the hard work and dedication of our team and the support of our customers, we made significant progress in virtually all areas of the business. Here are some of the more significant highlights from my perspective. First, the company spent significant time on organization development and improving the effectiveness of key workflows. Second, we expanded our executive leadership bench strength through the promotion of high-performing internal leaders as well as added domain expertise from outside the company. Third, we also expanded our go-to-market capabilities—people, process, and customer outreach—supporting the acceleration of our revenue growth. In addition, we invested in our hardware and software offerings with a focus on customer ROI and increasing our internal operating leverage. And finally, we reset our cost structure, which yielded an annualized cost savings number of over $30 million. From a financial point of view, the company executed against its commitments of returning to profitable revenue growth with positive run rates for cash flow and adjusted EBITDA. Some specific Q4 highlights include our total revenue growth was positive for the first time in seven quarters as we grew SaaS revenue by 13%. ARR grew to just under $62 million, which represents approximately 40% of the company's total revenue. Operating expenses were lower by 22%. We recorded positive adjusted EBITDA, and our net loss was significantly reduced from $11.4 million to $3.2 million. And then finally, we ended the year in great shape from a liquidity standpoint.…

Thank you, Frank, and good morning. Today I will review the fourth quarter and full-year results, provide context on margins, cash flow, and working capital, and then offer my perspective on the company as we enter 2026. Total revenue for the fourth quarter was $36.5 million, an increase of approximately 3% from $35.4 million in 2024, representing our first quarter of year-over-year revenue growth in the last seven quarters. Hosted services revenue totaled $18.1 million and included $15.4 million of SaaS revenue and $2.7 million of non-cash hub amortization revenue. Hardware revenue was $12.5 million, up 20% year over year, and professional services revenue was $5.9 million. For the full year, total revenue was $152.3 million, down 13% from last year, reflecting our continued transition away from bulk hardware transactions that were not aligned with customer implementation timelines. For the full year, SaaS revenue was $57.8 million, up 12% year over year. As Frank mentioned, ARR now represents 40% of total revenue. This continued expansion of ARR reflects our growing installed base. Hosted services revenue includes non-cash hub amortization associated with non-distinct hubs sold in prior periods. Hub amortization totaled $2.7 million in 2025 as compared to $5.2 million from the prior-year quarter. Total revenue, less hub amortization, or what we refer to as core revenue, was approximately $33.8 million compared to $30.2 million in 2024, representing growth of approximately 12%. We believe core revenue is more reflective of the underlying volume of the business as it excludes non-cash revenue from hubs shipped in prior years. For the full year, hub amortization totaled $15.4 million compared to $21.6 million in 2024. Core revenue for the full year was approximately $136.9 million compared to $153.3 million in fiscal 2024, reflecting the company's continued transition away from bulk hardware transactions. Hub amortization…

We will now begin the question and answer session. If you have registered for today's question and answer session, please dial in now. To ask a question, please press 1 on your telephone keypad. To withdraw your question, press 1 again. Please pick up your handset when asking a question. If you are muted locally, please remember to unmute your device. Please stand by now while we compile the Q&A roster. Your first question comes from the line of Ryan Tomasello with KBW. Your line is open. Please go ahead.

Hi, everyone. Nice to see the 2028 targets. I guess, in terms of the unit deployment goals, how much of that is being driven by existing customers versus net new logos? And then in terms of the sales organization and installation—installation teams—how much wood is there still to chop in order to get that capacity built out to execute on these targets? Thanks.

Hi, Ryan. We will answer your question in reverse order. So in terms of the sales organization, as I mentioned, we are making a significant investment, roughly doubling the size of the sales organization. And with that, we are looking at potential partnerships with other firms for local reach, and expect that to materialize toward the end of this year. From my standpoint, we are penetrating additional customers. We have about 600 currently, which is plenty of opportunity. We tend to spend a lot of time on the top 20, obviously, but we are definitely looking to expand our reach into mid and mass market as we build the sales organization and the capability to do that effectively. I will let Daryl answer the longer-range assumptions.

Yeah. Thanks, Frank, and thanks for the question, Ryan. Historically, most of our short-term growth in unit deployments comes from existing customers. We are always looking to expand the customer base, but in this horizon that we are looking at for Vision 2028, I would expect that trend to continue. We have got plenty of growth opportunity from our existing approximately 600 customers. But as Frank mentioned, we are also expecting to address with renewed rigor the small and medium portion of the market.

Great. That is all very helpful. And then in terms of SaaS ARPU, I know you are targeting higher attach rates to expand ARPU in these targets. But any color you can give around the types of growth rates and overall CAGR you think is achievable in SaaS ARPU over the next three years?

Yeah. No guidance that we want to give you there, although you can tell from Frank's remarks that we are investing in our technology—customer-facing technology—so that we can expand our offerings. We do believe that it will have a positive impact on expanding our ARPU.

And then last one for me. And forgive me, you might have mentioned some of this in your prepared remarks. But for 2026, just any broad commentary on what you think is achievable from a revenue and EBITDA standpoint? And then over the course of the next few years through your 2028 targets, how you are thinking about driving operating leverage and what the ramp in EBITDA could look like?

Yes. So starting with 2026, I think we have given some—what I would refer to as soft guidance, no specific numeric guidance. But we expect to reach a million deployed units within four or five quarters. And I think that expanding our installed base remains our primary revenue driver. So you could model first off of the assumption of when we would reach a million. The other guidance that we have provided is that for the whole year, our expectation is to be adjusted EBITDA profitable as well as positive from a free cash flow basis.

Great. Thanks for taking the questions.

You are welcome.

There are no further questions at this time. This concludes today's call. Thank you all for attending. You may now disconnect.

Goodbye.