SmartRent, Inc. (SMRT) Earnings
SmartRent, Inc. is expected to report next earnings on November 4, 2026 (in NaN days), with a consensus EPS estimate of $-0.02. SMRT has beaten EPS estimates in 1 of its last 11 reported quarters (average surprise +0.0% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 5, 2026 | $-0.02 | $-0.03 | -50.0% | $38M | -3.1% |
| May 6, 2026 | $-0.02 | $-0.02 | +0.0% | $37M | -0.5% |
| Mar 4, 2026 | $-0.02 | $-0.02 | +0.0% | $36M | +0.0% |
| Nov 5, 2025 | $-0.06 | $-0.03 | +50.0% | $36M | -0.3% |
| Aug 6, 2025 | $-0.04 | $-0.06 | -50.0% | $38M | -1.0% |
| Mar 5, 2025 | $-0.02 | $-0.06 | -200.0% | $35M | -20.6% |
| Mar 5, 2024 | $-0.01 | $-0.02 | -50.0% | $60M | +1.3% |
| Nov 10, 2022 | $-0.11 | $-0.13 | -18.2% | $48M | +8.5% |
| Aug 11, 2022 | $-0.10 | $-0.12 | -20.0% | $42M | -15.6% |
| Mar 24, 2022 | $-0.09 | $-0.13 | -44.4% | $35M | +10.4% |
| Nov 10, 2021 | $-0.11 | $-0.31 | -181.8% | $35M | — |
| Aug 30, 2021 | — | $-4.87 | — | $22M | — |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · August 5, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Strategic Progress (Vision 2028) * The company remains focused on executing its Vision 2028 strategic plan, and Q2 2026 results confirm strong value creation from growing market leadership and aggressive execution. * Expanded the installed IoT footprint by 10% quarter-over-quarter to nearly 930,000 units; management expects to exceed 1 million installed units in H1 2027, which will create a new growth and profitability inflection point for the business. * Entered strategic partnerships with Hexaware (AI-forward business process outsourcing) and Databricks (data infrastructure) to support new initiatives and margin expansion. The upcoming launch of the SmartRent Innovation Center and a dedicated data and analytics practice will leverage the company's large connected device network to deliver customer insights for energy efficiency, water conservation, and risk management, expanding total addressable market, driving ARPU growth, and deepening competitive advantages. - Financial Highlights * Core revenue grew 14% year-over-year, the highest quarterly growth rate in over two years; SaaS revenue grew 13% year-over-year, and annual recurring revenue (ARR) increased year-over-year from $57 million to $65 million. * Trailing 12-month units booked accelerated 40% year-over-year to over 112,000 units, reflecting strong underlying customer demand. Q2 2026 units booked totaled more than 48,000 units. * Total gross margin expanded 760 basis points year-over-year to 41%. Q2 was the third consecutive quarter of positive adjusted EBITDA, which reached $700,000; net loss was $6 million, a 48% improvement year-over-year. * The company holds a fortress balance sheet with $93 million in cash, no debt, and an undrawn $75 million credit facility. It repurchased 1.5% of outstanding shares in Q2 and expanded share repurchase authorization to $25 million for future repurchases. - Business Model Evolution * As the installed base matures, the business is shifting from primarily new IoT deployments to a full-cycle model that includes hardware refreshes, subscription renewals, and add-on solution adoption, which creates growing recurring revenue streams.
Guidance
- Management reaffirms that revenue, profitability, and cash flow for H2 2026 will be stronger than H1 2026, supported by accelerating trailing 12-month units booked, sustainable margin expansion from operational improvements, and continued growth of the installed base and recurring revenue. - The company confirms it remains on track to exceed 1 million installed IoT units in H1 2027, which will drive margin improvement and higher software contribution to the business. - For legacy customer subscription renewals, management expects to realize approximately 5 cents per unit per month in incremental revenue by the end of 2026 (equal to ~$50,000 per month of incremental revenue), with this benefit growing in subsequent years as more original subscriptions expire and pre-negotiated rate escalations take effect.
Segment performance
Total revenue for Q2 2026 was $40 million, an increase of 4% year-over-year. Core revenue (excluding non-cash hub amortization) was $38 million, up 14% year-over-year. - SaaS (SaaS) Revenue: $16 million, up 13% year-over-year. SaaS represents more than 40% of total revenue, with a 75% gross margin, up 500 basis points year-over-year. - Hardware Revenue: $14 million, down 10% year-over-year. - Professional Services Revenue: $9 million, up 100% year-over-year. Professional services gross margin improved dramatically to 21%, and gross margin expansion was driven by increased hardware refresh installations and higher access control volume lifting professional services ARPU.
Risks & headwinds
- Quarterly units booked can be non-linear due to long sales cycles and variable timing of customer order decisions, so quarterly results may not accurately reflect underlying demand trends. - As the business mix evolves with fluctuating booking composition across different solutions, variability in ARPU and quarterly revenue results can be expected. - The macroeconomic environment continues to create pressure on customer capital budgets, though management notes reduced customer friction compared to 1-2 years prior and strong ROI traction for SmartRent solutions.
Analyst Q&A
Q: What factors drove the strong Q2 bookings result, and what is the expected trajectory of unit deployments in H2 2026? /
A: The strong Q2 bookings was partially due to timing: a couple of large orders that had been in negotiation for some time closed in the quarter. It also reflects growing traction from recent investments in the sales team and go-to-market motion. In addition to core IoT orders, the quarter saw strong growth in higher-margin orders for access control and self-guided tour solutions. Management noted that ~20,000 units are typically deployed per quarter, and the accelerating trailing 12-month bookings trend suggests gradual deployment growth, with a full jump to ~30,000 units per quarter not expected to occur all at once in Q3.
Q: What is the strategic and monetization plan for the new data and analytics initiative, and what impact will it have on near-term financials? /
A: The data and analytics build is anchored by the Databricks partnership to jump start the required infrastructure to deliver real-time customer insights that generate measurable ROI. It will initially focus on adding value and incremental revenue from the existing installed base, but over time is expected to become a sizable standalone revenue stream. The Hexaware partnership supports this initiative by enabling operating leverage and integrating AI into operational processes to improve margins as volume grows.
Q: How is legacy customer subscription renewal pricing trending, and how long will the renewal cycle last? What is the latest update on macro customer budget pressures? /
A: Renewal progress is on track to hit the 5 cents per unit per month incremental revenue target by end of 2026, with benefits growing in subsequent years as more legacy contracts expire and pre-negotiated escalations kick in. The renewal cycle will be ongoing: as an expanding base of original subscriptions expire, renewals and hardware refreshes will become a permanent, growing annuity revenue stream for the company. While customers still face some macro pressure, bookings velocity is improving, and SmartRent's growing scale and proven customer ROI have reduced engagement friction, leading to more frequent and larger strategic discussions with customers than in prior periods.