SmartRent (NYSE:SMRT) Announces Quarterly Earnings Results

Key Points

• SmartRent reported EPS of ($0.02), roughly meeting estimates with revenue slightly below expectations, and showed improving profitability — Q1 gross profit was about $15M, adjusted EBITDA was positive (~$0.4M), net loss narrowed to $4.4M, and the company ended the quarter with $99M cash and no debt.
• The company expanded its IoT footprint to ~911,000 units (10% YoY) and is targeting to surpass 1 million installed units by H1 2027; ARR rose to $61M (up 9%) and SaaS now accounts for ~39% of revenue, with renewals and ~300k legacy unit refreshes cited as key growth levers.
• Shares dropped ~16.3% to $1.20 on heavy volume, analysts maintain an overall "Reduce" view with an average target of $1.45 and a Weiss Ratings downgrade, even as a director purchased 150,000 shares and institutions own roughly 59% of the stock.

SmartRent (NYSE:SMRT - Get Free Report) announced its quarterly earnings data on Wednesday. The company reported ($0.02) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.02), FiscalAI reports. The company had revenue of $36.63 million for the quarter, compared to analysts' expectations of $36.82 million. SmartRent had a negative net margin of 39.76% and a negative return on equity of 12.81%.

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

• SmartRent expanded its IoT footprint to ~911,000 units (10% YoY growth) and is targeting to surpass 1 million installed units in the first half of 2027 as part of its "March to One Million" initiative.
• The company reported ARR of $61M (up 9% YoY) and increasing SaaS mix (SaaS now ~39% of revenue), which management says will drive higher-quality, more recurring revenue over time.
• Profitability and cost structure improved materially: Q1 gross profit was $15M with a 39% gross margin (+630 bps YoY), adjusted EBITDA was positive (~$0.4M) for the second consecutive quarter, net loss narrowed to $4.4M, and the company ended the quarter with $99M cash and no debt.
• Total revenue fell ~6% YoY to $38.7M, bookings declined 9% to 16,592 units, hardware revenue was down 18% and hardware gross margin weakened, driven by an easier prior-year comparison, rep ramp timing and caution among some customers.
• Management highlighted several growth levers — including renewals, planned hardware refresh cycles (roughly ~300k legacy units up for renegotiation with ~33% average price uplift on initial renewals), a VAR channel for SMBs, and sales hiring — which could materially lift ARPU and long‑term growth.

SmartRent Trading Down 16.3%

Shares of NYSE:SMRT traded down $0.23 on Wednesday, reaching $1.20. 4,252,706 shares of the company were exchanged, compared to its average volume of 751,885. SmartRent has a 1-year low of $0.72 and a 1-year high of $2.20. The firm has a market cap of $230.14 million, a price-to-earnings ratio of -3.74 and a beta of 1.57. The company has a 50-day moving average of $1.54 and a 200-day moving average of $1.65.

Wall Street Analyst Weigh In

Separately, Weiss Ratings cut shares of SmartRent from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Tuesday, April 21st. Two analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, SmartRent currently has an average rating of "Reduce" and an average target price of $1.45.

Insider Buying and Selling

In other SmartRent news, Director Thomas N. Bohjalian acquired 150,000 shares of the stock in a transaction that occurred on Thursday, March 12th. The shares were purchased at an average cost of $1.74 per share, with a total value of $261,000.00. Following the purchase, the director owned 500,000 shares in the company, valued at approximately $870,000. The trade was a 42.86% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Insiders own 2.30% of the company's stock.

Institutional Investors Weigh In On SmartRent

Hedge funds have recently modified their holdings of the company. Norges Bank acquired a new stake in shares of SmartRent during the 2nd quarter worth about $248,000. Boothbay Fund Management LLC acquired a new stake in shares of SmartRent during the 3rd quarter worth about $246,000. Jain Global LLC boosted its stake in shares of SmartRent by 393.1% during the 4th quarter. Jain Global LLC now owns 68,365 shares of the company's stock worth $138,000 after purchasing an additional 54,500 shares during the last quarter. Tower Research Capital LLC TRC boosted its stake in shares of SmartRent by 570.2% during the 2nd quarter. Tower Research Capital LLC TRC now owns 95,132 shares of the company's stock worth $94,000 after purchasing an additional 80,938 shares during the last quarter. Finally, Engineers Gate Manager LP boosted its stake in shares of SmartRent by 43.6% during the 2nd quarter. Engineers Gate Manager LP now owns 79,923 shares of the company's stock worth $79,000 after purchasing an additional 24,250 shares during the last quarter. 59.42% of the stock is owned by institutional investors and hedge funds.

SmartRent Company Profile

SmartRent Inc is a technology company that develops smart home and smart building automation solutions for the residential rental housing industry. Its integrated hardware and software platform enables property managers and owners to remotely monitor, manage and control access, energy use and overall resident experience. The company's product portfolio includes smart locks, thermostats, leak and flood sensors, door and window sensors, security cameras, and a centralized management dashboard that interfaces with leading property management systems.

SmartRent's platform is designed to streamline operations for multifamily communities and single-family rental portfolios by automating routine tasks such as digital resident self-showings, remote lease turnovers, package management and preventative maintenance alerts.

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