Cloudastructure (NASDAQ:CSAI) executives highlighted rapid revenue growth, expanding customer deployments, and growing demand for proactive, AI-enabled security solutions during the company’s fourth quarter and full-year 2025 earnings call. Chief Executive Officer James McCormick said 2025 was “a very important year” for the company, pointing to both financial growth and what he characterized as a broader market shift away from reactive video recording toward real-time detection and intervention.
2025 growth driven by larger deployments and deeper adoption
McCormick said Cloudastructure’s full-year revenue grew 271% to “just over $5 million,” driven by “broad-based growth across our business.” Chief Financial Officer Greg Smitherman later put full-year 2025 revenue at $5.1 million and said growth reflected accelerating adoption of the company’s AI-powered video surveillance and remote guarding platform.
On the call, McCormick described customer expansion patterns in which deployments often start at a single site and expand after results are demonstrated, including reductions in car break-ins, vandalism, and unauthorized access, along with faster response times and lower overall security costs.
Multifamily remains a core market, with expansion into new verticals
Multifamily housing continued to be one of Cloudastructure’s strongest verticals, according to McCormick. He said property owners are contending with rising crime, increasing liability exposure, and higher insurance costs, which is driving interest in more proactive security approaches.
McCormick said the company has secured contracts with six of the 10 largest U.S. property management companies based on the NMHC 50 rankings. In response to an analyst question, he added that Cloudastructure has “over…150 active locations right now,” and noted that the six large property managers it works with collectively oversee “over 1.2 million units under management.”
Beyond multifamily, McCormick said Cloudastructure is expanding into verticals including construction, logistics, and distributed infrastructure environments. Later in the Q&A, he highlighted two areas where he said the company had made additional progress early in 2026: “transportation and logistics” and “commercial properties.” He cited use cases such as securing truck yards amid cargo theft concerns, as well as external perimeter security and employee safety at commercial sites such as malls.
Platform performance, new products, and operational scale
McCormick framed the company’s offering as a proactive security model combining “AI-driven video analytics, cloud-based infrastructure, and remote guarding.” He said deployments have produced a “98% real-time deterrence rate,” and added that the company’s AI detection accuracy is “approximately 96%,” helping reduce false alerts and focus on “meaningful events.” McCormick also said less than 1% of incidents require escalation to emergency services because most situations are resolved proactively.
As the business scaled in 2025, McCormick said the system reviewed “approximately 11.2 million alerts” and supported “more than 112,000 live verbal interventions.” In the Q&A, he added that Cloudastructure is “processing approximately 9 million videos a day” on the back end.
The company introduced several products during 2025, including a Mobile Surveillance Trailer, a “rapidly deployable security enclosure,” and a Solar-Powered Security Enclosure designed for off-grid environments. In response to a question about traction, McCormick said the company was seeing initial success with both the powered enclosure and solar-powered enclosure, describing them as smaller form-factor versions of its fixed systems that can be mounted on poles or buildings and used in remote locations with limited infrastructure. He also said the mobile surveillance trailer offering should see growth for commercial properties and construction sites.
Financial results: gross profit expansion alongside continued investment
Smitherman said revenue growth was supported by gains across multiple revenue streams:
- Cloud video surveillance revenue increased 137%
- Remote guarding revenue increased 150%
- Hardware revenue increased 329%
- Other revenue, including installation and additional subscription-based services, increased 410%
Cost of goods sold rose to $3.6 million from $1.0 million in 2024, which Smitherman attributed to higher hosting costs, increased hardware sales, more installation activity, and operational support needed to scale. Gross profit increased to $1.5 million, up about 304% year-over-year, which he said highlighted model scalability as revenue grows.
Operating expenses totaled $9.7 million, up from $6.6 million in 2024, reflecting investment in product development, sales and marketing, and corporate infrastructure. Smitherman said general and administrative expenses rose to $2.4 million from $1.2 million, primarily due to higher payroll and consulting expenses as the company scaled as a public company.
Smitherman initially cited net loss as $8.5 million or $0.48 per share, compared to a net loss of $6.5 million or $0.45 per share in 2024, but later corrected the 2025 per-share figure during the Q&A, saying he “meant to say $0.55.” He also reported EBITDA of negative $5.5 million in 2025 compared to negative $4.4 million in 2024, driven primarily by higher stock-based compensation and non-cash interest expense.
On the balance sheet, Smitherman said the company ended 2025 with approximately $8.5 million in cash and $8.6 million in working capital, supported by a “debt-free balance sheet.”
ARR, pricing, capacity, and profitability outlook
During the Q&A, Smitherman confirmed the company’s year-ending annual recurring revenue was “over $2 million,” agreeing with an analyst’s assessment based on fourth-quarter cloud video surveillance and remote guarding revenue. He said recurring revenue at the end of 2024 was “under $1 million” and characterized the ARR base entering 2026 as a “relentless driving force” typical of SaaS businesses. Management did not provide formal guidance, though Smitherman said the company had “very strong growth targets” internally.
McCormick discussed average selling prices on a per-camera basis, saying the “starting point” is about $35 per camera per month for surveillance and about $79 per camera per month for remote guarding, with potential discounts depending on contract size, term, and other factors. He described remote guarding as layering on top of the core surveillance product, with incremental costs primarily tied to “humans in the loop.”
On deployment capacity, McCormick said the company is expanding pre-sales capabilities and its network of third-party installation partners. He said Cloudastructure historically handled about 20 deployments per month and that investors could “anticipate” that increasing “by 50% or so” as the company moves into the second half of 2026.
Regarding seasonality, Smitherman said the first quarter is historically the smallest quarter, with performance typically strengthening in the second half of the year. McCormick added that fourth-quarter momentum can be driven by customers executing contracts before the end of their fiscal year, which can affect the following quarter.
Asked about margin expansion and the path to profitability, Smitherman said the company saw a “significant increase” in margin from 2024 to 2025 and expects expansion to continue. However, he noted that planned growth includes new installations—described as the company’s “lowest margin business”—which he views positively because it drives new customer acquisition and future recurring revenue. He said he expects “a slowly widening margin throughout the year,” and emphasized the company’s focus on building a larger, sustainable business while being “good stewards of the cash.”
In closing remarks, McCormick said the company was pleased with results in its “first full year as a public company,” citing revenue growth, customer expansion, and continued technology advancement. He said Cloudastructure is focused on scaling the platform, expanding enterprise adoption, and executing on continued growth as demand rises for proactive security solutions.
About Cloudastructure (NASDAQ:CSAI)
Cloudastructure, Inc (NASDAQ: CSAI) is a technology company specializing in cloud-based video security and surveillance solutions. The company’s core offering is a subscription-based Video-as-a-Service (VaaS) platform that enables customers to deploy, manage and monitor high-definition cameras and environmental sensors through a unified cloud interface. By leveraging scalable cloud infrastructure, Cloudastructure eliminates the need for on-site video recording hardware and simplifies system maintenance and updates.
In addition to managed hardware, Cloudastructure provides advanced analytics capabilities powered by artificial intelligence and machine learning.
