SmartRent, Inc.

today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star followed by the number one on your telephone keypad. To withdraw your question, you may press star followed by the number one again. 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-K 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.

Thank you, Kelly, and good morning, everyone. We appreciate you joining us for our second quarter 2025 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, Smart Rent'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. Smart rent delivers strong value that our customers rely on. As a result, we've developed 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 smart rent. 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 million in annualized savings. Over the past month, we expanded our cost reduction program by an additional $20 million. the majority of our cost reductions come primarily from workflow optimization, lower staffing levels, and reduced third-party spending. The $30 million 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 rent rate basis exiting 2025. As of June 30, 2025, the company has a significant cash balance of $105 million. Achieving cash flow neutrality together with a disciplined push on working capital execution, which is expected to generate approximately $15 million 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 million 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 million connected devices. As Darrell 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 Smart Run 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 We'll take everyone through our quarterly financials for Q2.