SmartRent beat Wall Street revenue expectations in the third quarter of 2026, with revenue of $41.57 million, up 14.8% year on year against analyst estimates of $40.05 million. Its shares trade at $1.63, up from $1.37 before the earnings. Chief executive officer Frank Martell credited faster hardware shipments, particularly in Access Control and Self-Guided Tours, and an installed base nearing 1 million units. Integrating hardware with software has improved customer retention and opened the way for equipment upgrades. Adjusted EBITDA was $1.06 million, and operating margin improved to -11.6% from -16.1% a year earlier. Adjusted EPS was -$0.02, a penny worse than expected. Annual recurring revenue reached $62.9 million, up 10.5%. Chief financial officer Daryl Stemm blamed a sequential decline on attrition in maintenance solutions, and the company aims to reach 1 million units in the first half of next year.

SmartRent Q3 earnings call highlights. November 8, 2026 Key points. * Revenue rose 15% year over year to $42 million, driven by 61% growth in hardware revenue; gross margin improved to 41% from 26%, and net loss narrowed to $3.9 million. * Bookings increased, with trailing 12-month units booked up 44% to 123,000. SmartRent expects fourth-quarter revenue growth of 15%-20% and says deployment activity should rise into 2027. * SmartRent ended the quarter with $89 million in cash and no debt, and posted its fourth consecutive quarter of positive adjusted EBITDA. Ongoing attrition in maintenance solutions is pressuring software revenue per unit, though the company expects its platform investments to begin contributing in 2027. * Five stocks to consider instead of SmartRent. SmartRent NYSE: SMRT reported higher third-quarter revenue and a narrower net loss as hardware sales rose and gross margins expanded, while executives said they expect deployment activity to increase in the fourth quarter and into 2027. Revenue rose 15% year over year to $42 million, and core revenue increased 24% to $41 million, Chief Financial Officer Daryl Stemm said on the earnings call. Core revenue excludes non-cash hub amortization associated with hubs shipped in prior years, which fell to approximately $1 million from $3 million a year earlier. President and CEO Frank Martell described the quarter as the company's strongest financial and operational performance in more than two years. He said SmartRent had approximately 942,000 installed units and expects to reach 1 million in the first half of 2027. Hardware growth drives revenue. Hardware revenue increased 61% to $19 million from $12 million. Stemm attributed the growth to shipments supporting fourth-quarter deployments, increased Access Control shipments and equipment upgrades and refreshes. Access Control shipments rose 242% year over year to $2.5 million. Over the trailing 12 months, hardware units shipped fell to approximately 107,000 from 114,000 in the prior-year period, while hardware average revenue per unit increased 14% to $558. Hosted services revenue totaled $17 million, including $16 million from software and $1 million from hub amortization. Software revenue grew 11% year over year, supported by an expanding installed base and adoption of Access Control and Self-Guided Tours, partly offset by attrition in maintenance solutions, Stemm said. Annual recurring revenue increased 11% year over year, according to Martell. During the question-and-answer session, KBW analyst Ryan Tomasello said ARR had declined sequentially alongside a reduction in software-as-a-service revenue per unit. Stemm attributed some of the pressure to attrition in Smart Operations solutions and said the company expects some attrition to continue for a couple more quarters. Stemm said SmartRent is enhancing its maintenance offering and integrating it into its core platform, with the company expecting to see benefits from those investments beginning in 2027. Margins improve as expenses rise. Gross margin expanded to 41% from 26% a year earlier, and gross profit rose 79% to $17 million. Operating expenses increased to $22 million from $17 million. Excluding a $2.5 million nonrecurring accrual reversal that benefited the prior-year period, expenses rose approximately 15%, reflecting higher revenue and investments in sales, operations and technology, Stemm said. Discover more MarketBeat All Access MarketBeat Portfolio Tracker MarketBeat Research Tools Net loss narrowed to $3.9 million from $6.3 million. Adjusted EBITDA improved by $4 million to $1.1 million, marking the company's fourth consecutive quarter of positive adjusted EBITDA. SmartRent ended September with $89 million in cash and no debt, and generated positive cash flow from operations during the quarter. It repurchased approximately 2.5 million shares for $3.4 million. Stemm said the company expects to remain active under its existing repurchase authorization. Bookings and outlook. Trailing 12-month units booked increased 44% to 123,000, while bookings measured in dollars rose 29% to approximately $144 million. Stemm said hardware shipments in the third quarter preceded an expected increase in deployment activity beginning in the fourth quarter and continuing into 2027. For the fourth quarter, SmartRent expects total revenue growth of 15% to 20% and core revenue growth of 20% to 25%, both year over year. It also expects adjusted EBITDA to increase roughly 450% to 650% from the prior-year quarter. Martell declined to provide specific 2027 guidance but said he expects continued improvement across major financial metrics. He said SmartRent has been investing a couple of million dollars per quarter, primarily in technology platforms and operational enhancements, and expects those investments to begin generating revenue in 2027. Asked about multifamily operators' appetite for capital spending, Martell said the market was "not great" but that customers continued to invest in efficiency and resident experience. He said he had not seen a meaningful change in those discussions during the year. About SmartRent (NYSE:SMRT). 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Before you consider SmartRent, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and SmartRent wasn't on the list. While SmartRent currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys. 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SmartRent reported a 24% rise in core revenue in the third quarter of 2026, with gross margin up to 41%. Access control shipments grew 242% year over year, and trailing 12-month bookings rose 44%. The company expects to reach 1 million installed units in the first half of 2027. For the fourth quarter, it guides to core revenue growth of 20% to 25% and a 450% to 650% rise in adjusted EBITDA. SmartRent bought back about 2.5 million shares for $3.4 million. It ended the quarter with $89 million in cash and no debt. It plans to launch a unified data analytics platform in 2027. Management expects attrition in its legacy maintenance product to ease as those features move into the core platform.