SmartRent (NYSE:SMRT) Issues Earnings Results, Meets Estimates

Key Points

• SmartRent reported quarterly EPS of -$0.02, matching analyst estimates, while revenue of $40.69 million exceeded the $40.06 million consensus. On the conference call, the company cited 24% year-over-year core revenue growth, gross margin expansion to 41% from 26%, and a fourth consecutive quarter of positive adjusted EBITDA.
• Bookings strengthened, with trailing 12-month units booked up 44% and booking value up 29%. SmartRent expects Q4 revenue growth and plans to ramp deployments, targeting 1 million installed units in the first half of 2027.
• The company ended September with $89 million in cash, no debt, and positive operating cash flow. However, maintenance-related customer attrition is expected to continue for a couple of quarters and weigh on SaaS revenue per user.

SmartRent (NYSE:SMRT - Get Free Report) issued its quarterly earnings data on Wednesday. The company reported ($0.02) EPS for the quarter, hitting analysts' consensus estimates of ($0.02), FiscalAI reports. SmartRent had a negative return on equity of 8.50% and a negative net margin of 12.97%. The firm had revenue of $40.69 million during the quarter, compared to the consensus estimate of $40.06 million.

Here are the key takeaways from SmartRent's conference call:

• Revenue and margins improved substantially: Q3 core revenue grew 24% year over year, while gross margin expanded to 41% from 26%. Adjusted EBITDA was positive for the fourth consecutive quarter at $1.1 million.
• Bookings point to stronger deployment activity: Trailing 12-month units booked rose 44% and bookings by dollar value increased 29%. Management expects deployments to ramp in Q4 and 2027, with the 1 million installed-unit milestone targeted for the first half of 2027.
• Q4 outlook calls for continued growth: The company forecast total revenue growth of 15%–20%, core revenue growth of 20%–25%, and adjusted EBITDA growth of roughly 450%–650% year over year.
• Liquidity and cash generation strengthened: SmartRent ended September with $89 million in cash, no debt, and positive operating cash flow, and repurchased $3.4 million of shares during the quarter.
• Maintenance-related attrition is weighing on software metrics: Management said Smart Operations attrition is expected to continue for a couple more quarters, contributing to lower SaaS ARPU. The company is integrating and enhancing the offering, but expects benefits from those investments to begin in 2027.

SmartRent Trading Up 15.6%

SMRT traded up $0.21 during trading hours on Wednesday, hitting $1.58. The company's stock had a trading volume of 4,550,176 shares, compared to its average volume of 1,281,762. SmartRent has a fifty-two week low of $0.91 and a fifty-two week high of $2.20. The firm has a market capitalization of $303.51 million, a PE ratio of -15.84 and a beta of 1.64. The company has a 50-day simple moving average of $1.24 and a 200 day simple moving average of $1.34.

Insider Buying and Selling at SmartRent

In other SmartRent news, Director Ana Pinczuk purchased 107,000 shares of SmartRent stock in a transaction on Tuesday, August 11th. The stock was bought at an average price of $1.43 per share, for a total transaction of $153,010.00. Following the transaction, the director owned 385,704 shares of the company's stock, valued at $551,556.72. The trade was a 38.39% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Frank Martell purchased 100,000 shares of the firm's stock in a transaction dated Tuesday, August 11th. The stock was acquired at an average cost of $1.42 per share, with a total value of $142,000.00. Following the purchase, the chief executive officer owned 3,672,086 shares of the company's stock, valued at approximately $5,214,362.12. This represents a 2.80% increase in their position. The SEC filing for this purchase provides additional information. Insiders have acquired 267,000 shares of company stock valued at $378,110 in the last quarter. Corporate insiders own 2.30% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on SMRT shares. B. Riley Financial initiated coverage on shares of SmartRent in a report on Tuesday, October 13th. They set a "buy" rating and a $1.75 price target for the company. Weiss Ratings cut shares of SmartRent from a "sell (d-)" rating to a "sell (e+)" rating in a report on Friday, October 16th. Finally, Keefe, Bruyette & Woods cut their price objective on shares of SmartRent from $1.40 to $1.20 and set a "market perform" rating on the stock in a research report on Monday, July 13th. One analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $1.48.

SmartRent Company Profile

SmartRent, Inc NYSE: SMRT provides smart-home technology and property-management solutions for rental housing owners, operators and residents. Its platform is designed to help housing providers manage connected properties, improve operational efficiency and offer residents digital control over home features and services.

The company's products and services include smart locks, thermostats, sensors, hubs, access-control systems and other connected devices, along with software for monitoring and managing properties.

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