SmartRent (NYSE:SMRT) Posts Earnings Results, Misses Expectations By $0.01 EPS

Key Points

• SmartRent missed quarterly expectations: It reported an adjusted loss of $0.03 per share versus the $0.02 consensus loss, while revenue of $38.39 million fell short of the $39.62 million estimate.
• Operational performance improved: Core revenue increased 14%, SaaS revenue rose 13% to $16 million, gross margin expanded to 41%, and adjusted EBITDA was positive for the third consecutive quarter.
• The company maintains financial flexibility: SmartRent ended the quarter with $93 million in cash, no debt and a $75 million undrawn credit facility; its board also authorized up to $25 million in additional share repurchases.

SmartRent (NYSE:SMRT - Get Free Report) posted its quarterly earnings data on Wednesday. The company reported ($0.03) earnings per share for the quarter, missing the consensus estimate of ($0.02) by ($0.01), FiscalAI reports. SmartRent had a negative return on equity of 10.61% and a negative net margin of 16.58%.The firm had revenue of $38.39 million for the quarter, compared to the consensus estimate of $39.62 million.

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

• Core revenue rose 14% to $38 million, while SaaS revenue increased 13% to $16 million and exceeded 40% of total revenue. ARR reached approximately $65 million, supported by installed-base growth and adoption of access control and self-guided tours.
• Trailing-12-month units booked increased 40% to roughly 112,000, and SmartRent said it expects to surpass 1 million installed IoT units in the first half of 2027. Management characterized the bookings momentum as a combination of improved sales execution and the timing of several larger orders, while cautioning that quarterly deployments may remain uneven.
• Gross margin expanded 760 basis points to 41%, helped by revenue growth and cost reductions; SaaS gross margin reached 75% and professional-services gross margin improved to 21%. Adjusted EBITDA was positive for the third consecutive quarter, and management expects second-half 2026 revenue, profitability, and cash flow to exceed the first half.
• SmartRent ended the quarter with $93 million in cash, no debt, and an undrawn $75 million credit facility, while repurchasing approximately 1.5% of shares for $3 million. The board subsequently authorized up to $25 million in additional repurchases.
• Management is building a data-and-analytics business using its connected-device network and partnerships with Databricks and Hexaware, targeting opportunities in energy efficiency, water conservation, and risk management. Executives described this as a potentially sizable future revenue and ARPU opportunity, but provided limited timing or investment details.

SmartRent Price Performance

Shares of NYSE:SMRT traded up $0.17 during mid-day trading on Wednesday, hitting $1.23. The company had a trading volume of 6,270,958 shares, compared to its average volume of 1,457,347. The company has a market capitalization of $236.23 million, a PE ratio of -9.42 and a beta of 1.52. The firm has a fifty day moving average price of $1.09 and a 200 day moving average price of $1.38. SmartRent has a one year low of $0.90 and a one year high of $2.20.

Wall Street Analysts Forecast Growth

SMRT has been the topic of a number of recent analyst reports. Keefe, Bruyette & Woods decreased their target price on SmartRent from $1.40 to $1.20 and set a "market perform" rating on the stock in a research report on Monday, July 13th. Weiss Ratings upgraded shares of SmartRent from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Tuesday, July 21st. Two equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Reduce" and a consensus price target of $1.20.

Insiders Place Their Bets

In other SmartRent news, CEO Frank Martell bought 40,260 shares of the firm's stock in a transaction dated Friday, June 5th. The stock was bought at an average cost of $1.13 per share, with a total value of $45,493.80. Following the completion of the transaction, the chief executive officer directly owned 3,225,526 shares in the company, valued at approximately $3,644,844.38. The trade was a 1.26% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Thomas N. Bohjalian bought 75,000 shares of the company's stock in a transaction dated Wednesday, June 10th. The stock was bought at an average price of $1.11 per share, for a total transaction of $83,250.00. Following the acquisition, the director directly owned 721,062 shares of the company's stock, valued at approximately $800,378.82. This represents a 11.61% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have acquired a total of 295,260 shares of company stock valued at $339,044 in the last 90 days. 2.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On SmartRent

Large investors have recently added to or reduced their stakes in the company. Stoic Point Capital Management LLC purchased a new stake in shares of SmartRent during the fourth quarter worth $5,022,000. UBS Group AG grew its position in shares of SmartRent by 28.8% in the third quarter. UBS Group AG now owns 10,448,199 shares of the company's stock valued at $14,732,000 after purchasing an additional 2,335,454 shares in the last quarter. Marshall Wace LLP grew its position in shares of SmartRent by 230.4% in the second quarter. Marshall Wace LLP now owns 2,657,531 shares of the company's stock valued at $2,631,000 after purchasing an additional 1,853,247 shares in the last quarter. Jacobs Levy Equity Management Inc. raised its stake in shares of SmartRent by 242.7% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 2,160,066 shares of the company's stock valued at $3,046,000 after purchasing an additional 1,529,677 shares during the period. Finally, Jane Street Group LLC raised its stake in shares of SmartRent by 430.2% during the 2nd quarter. Jane Street Group LLC now owns 1,596,146 shares of the company's stock valued at $1,580,000 after purchasing an additional 1,295,098 shares during the period. Hedge funds and other institutional investors own 59.42% of the company's stock.

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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