SmartRent

SmartRent Q1 2026 Financial Results

In Q1 2026, SmartRent reported a 9% year-over-year increase in Annual Recurring Revenue to $60.9 million and a 10% rise in units deployed to 911,244, while delivering its second consecutive quarter of positive Adjusted EBITDA at $0.4 million, reducing net loss by $35.8 million to $4.4 million, maintaining strong liquidity with $99 million cash and a $75 million credit facility, and continuing investments in sales expansion and technology enhancements.

Q1 2026 Report

SmartRent Reports First Quarter 2026 Financial Results

Annual Recurring Revenue ("ARR") increased 9% as Units Deployed Grew 10% Year Over Year; Company Delivers Second Straight Quarter of Positive Adjusted EBITDA and Significantly Reduced Net Loss

SmartRent, Inc. (NYSE: SMRT), a leading provider of smart communities and operations solutions for the rental housing industry, reported financial results for the three months ended March 31, 2026.

First Quarter 2026 Highlights

  • Total Revenue: $38.7 million, down 6% from the prior year, primarily due to a large hardware order in the prior year with no counterpart in Q1 2026. Core Revenue (excluding non-cash hub amortization): $36.6 million, essentially flat year over year.
  • Annual Recurring Revenue (ARR): Increased 9% year over year to $60.9 million, representing 39% of total first quarter revenue.
  • Net Loss: $4.4 million, $35.8 million lower than the prior year, mainly due to a $24.9 million non-cash goodwill impairment charge in Q1 2025 and lower costs from productivity initiatives.
  • Adjusted EBITDA: $0.4 million, compared with $(6.4) million in the prior year, a $6.8 million improvement driven by ARR growth and productivity initiatives.
  • Units Deployed: 911,244 units, up 10% year over year.
  • Liquidity: $99 million in cash and an undrawn $75 million credit facility.

Management Commentary

Frank Martell, President and CEO, highlighted the company's strong first quarter, reduced net loss, and second consecutive quarter of positive Adjusted EBITDA. He emphasized ongoing investments in the go-to-market organization, technology platform, and product solutions, including expanding the sales team and launching a Value Added Reseller (VAR) program.

CFO Daryl Stemm noted Adjusted EBITDA of $0.4 million, gross margin expansion to 39.1%, SaaS gross margin of 74.5%, and a strong cash position. He expressed confidence in achieving Adjusted EBITDA profitability and positive cash flow for the full year.

First Quarter 2026 Results Summary

  • Total revenue: $38.7 million (down 6% from $41.3 million in Q1 2025), mainly due to a $2.6 million decline in non-cash hub amortization revenue and lower hardware revenue.
  • Core Revenue: $36.6 million (flat year over year).
  • Hosted services revenue: $17.3 million ($15.2 million SaaS revenue, $2.1 million hub amortization). SaaS revenue grew 9% year over year.
  • Hardware revenue: $15.4 million (down 18% from $18.8 million in Q1 2025).
  • Professional services revenue: $6.0 million (up 55% from $3.9 million in Q1 2025).
  • SaaS ARPU: $5.63 (Q1 2026) vs. $5.69 (Q1 2025).
  • Units Deployed: 911,244 (up 10% from 827,611 in Q1 2025).
  • New Units Deployed: 20,662 (up 14% from 18,114 in Q1 2025).
  • Units Booked: 16,592 (down 9% from 18,210 in Q1 2025).
  • Total gross profit: $15.1 million (up from $13.6 million in Q1 2025), gross margin expanded to 39.1% (from 32.8%).
  • SaaS gross profit: $11.3 million (up 15% year over year), SaaS gross margin: 74.5%.
  • Hosted services gross profit: $12.2 million (up from $12.1 million), hosted services gross margin: 70.5%.
  • Professional services gross profit: $0.1 million (improved from a loss of $3.4 million).
  • Hardware gross profit: $2.8 million (down from $4.9 million), hardware gross margin declined due to product mix and lower shipment volume.
  • Operating expenses: $20.2 million (down 32% from $29.9 million in Q1 2025).
  • Net loss: $4.4 million (improved by $35.8 million from $40.2 million in Q1 2025).
  • Adjusted EBITDA: $0.4 million (improved by 106% from a loss of $6.4 million).
  • Cash used during the quarter: $5.7 million; cash balance at quarter end: $99 million; no debt.

Key Operating Metrics

  • Hardware Units Shipped: 33,466 (down 23% from 43,418 in Q1 2025)
  • Hardware ARPU: $460 (up 6% from $434)
  • New Units Deployed: 20,662 (up 14% from 18,114)
  • Professional Services ARPU: $378 (down 12% from $427)
  • Units Deployed: 911,244 (up 10% from 827,611)
  • Average aggregate units deployed: 901,057 (up 10% from 818,554)
  • SaaS ARPU: $5.63 (down 1% from $5.69)
  • Units Booked: 16,592 (down 9% from 18,210)
  • Bookings: $18,471,000 (down 32% from $27,180,000)
  • Units Booked SaaS ARPU: $9.52 (down 7% from $10.28)

Conference Call Information

SmartRent hosted a conference call on May 6, 2026, at 11:30 a.m. ET to discuss its financial results. A copy of the earnings presentation is available on the Investor Relations section of SmartRent’s website.

About SmartRent

Founded in 2017, SmartRent, Inc. (NYSE: SMRT) is a leading provider of smart communities solutions and smart operations solutions to the rental housing industry. SmartRent’s end-to-end ecosystem powers smarter living and working in rental housing by automating operations, protecting assets, reducing energy consumption, and more. The company’s differentiators include purpose-built software and hardware, and end-to-end implementation and support. Fifteen of the top twenty multifamily operators and millions of users leverage SmartRent solutions daily.

Use of Non-GAAP Financial Measures

SmartRent discloses certain non-GAAP financial measures, including EBITDA, Adjusted EBITDA, and Core Revenue. These are not recognized measures under GAAP and should not be considered in isolation or as a substitute for GAAP financial information. Definitions:

  • EBITDA: Net income (loss) before interest income, net, income tax expense (benefit), and depreciation and amortization.
  • Adjusted EBITDA: EBITDA before expenses related to non-recurring legal matters, stock-based compensation, impairment of investment in non-affiliate, goodwill impairment, non-recurring warranty provisions, other acquisition expenses, and other non-recurring or unusual events.
  • Core Revenue: Total revenue excluding hub amortization.

Financial and Operating Metrics Defined

  • Units Deployed: Aggregate number of Hub Devices installed and with an active subscription as of a measurement date.
  • New Units Deployed: Aggregate number of Hub Devices installed and resulting in a new active subscription during a measurement period.
  • Units Shipped: Aggregate number of Hub Devices shipped to customers during a measurement period.
  • Units Booked: Aggregate number of Hub Device units subject to binding orders executed during a measurement period, expected to result in a New Unit Deployed.
  • Bookings: Contract value of hardware, professional services, and the first year of ARR for binding orders executed during a measurement period, including renewals and upgrades.
  • Annual Recurring Revenue (ARR): Annualized value of SaaS Revenue earned in the current quarter (total SaaS Revenue in the current quarter multiplied by four).
  • SaaS Revenue: Subscription revenue from fees paid by customers for access to SmartRent's software applications and related services.
  • Average Revenue per Unit (ARPU): Used to assess business growth and health. Calculated for each revenue stream as follows:
    • Hardware ARPU: Total hardware revenue divided by total Units Shipped.
    • Professional Services ARPU: Total professional services revenue divided by total New Units Deployed (excluding customer self-installations).
    • SaaS ARPU: Total SaaS Revenue divided by average aggregate Units Deployed, divided by the number of months in the period.
    • Units Booked SaaS ARPU: First year ARR for binding orders with Units Booked divided by total Units Booked, divided by the number of months in the period.
  • Property Net Revenue Retention: SaaS Revenue at the end of the current period for properties with SaaS Revenue at the end of the same period in the prior year, divided by SaaS Revenue at the end of the same period in the prior year for those properties.
  • Customer Net Revenue Retention: SaaS Revenue at the end of the current period for customers with SaaS Revenue at the end of the same period in the prior year, divided by SaaS Revenue at the end of the same period in the prior year for those customers.
  • Customer Churn: Cancelled deployed units during the measurement period divided by Units Deployed at the beginning of the measurement period.

Financial Statements (Condensed)

Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands, except per share amounts)
  • Revenue (Q1 2026 / Q1 2025):
    • Hardware: $15,381 / $18,830
    • Professional services: $6,033 / $3,893
    • Hosted services: $17,269 / $18,621
    • Total revenue: $38,683 / $41,344
  • Cost of revenue:
    • Hardware: $12,576 / $13,960
    • Professional services: $5,898 / $7,293
    • Hosted services: $5,088 / $6,529
    • Total cost of revenue: $23,562 / $27,782
  • Operating expense:
    • Research and development: $6,146 / $8,258
    • Sales and marketing: $4,446 / $4,770
    • General and administrative: $9,623 / $16,894
    • Total operating expense: $20,215 / $29,922
  • Impairment charge: $0 / $24,929
  • Loss from operations: $(5,094) / $(41,289)
  • Interest income: $860 / $1,303
  • Interest expense: $(99) / $(103)
  • Other (expense) income, net: $(75) / $13
  • Loss before income taxes: $(4,408) / $(40,076)
  • Income tax expense: $40 / $108
  • Net loss: $(4,448) / $(40,184)
  • Other comprehensive loss: Foreign currency translation adjustment: $(467) / $88
  • Comprehensive loss: $(4,915) / $(40,096)
  • Net loss per common share (basic and diluted): $(0.02) / $(0.21)
  • Weighted-average number of shares: 191,654 / 192,419
Condensed Consolidated Balance Sheets (in thousands, except per share amounts)
  • Total assets: $300,236 (March 31, 2026) / $320,925 (December 31, 2025)
  • Total current assets: $168,574 / $187,878
  • Cash and cash equivalents: $98,821 / $104,550
  • Total liabilities: $69,562 / $88,786
  • Total stockholders' equity: $230,674 / $232,139
Condensed Consolidated Statements of Cash Flows (in thousands)
  • Net cash used in operating activities: $(4,543) / $(12,169)
  • Net cash used in investing activities: $(1,088) / $(3,469)
  • Net cash provided by (used in) financing activities: $393 / $(1,505)
  • Effect of exchange rate changes: $(491) / $261
  • Net decrease in cash and cash equivalents: $(5,729) / $(16,882)
  • Cash and cash equivalents at end of period: $98,821 / $125,600
Reconciliation of Non-GAAP Measures (dollars in thousands)
  • Net loss: $(4,448) / $(40,184)
  • Interest income, net: $(761) / $(1,200)
  • Income tax expense: $40 / $108
  • Depreciation and amortization: $2,223 / $1,943
  • EBITDA: $(2,946) / $(39,333)
  • Legal matters: $37 / $5,105
  • Stock-based compensation: $3,057 / $2,836
  • Goodwill impairment: $0 / $24,929

Note: Some tables and detailed reconciliations may be truncated in this extract.