SmartRent (NYSE:SMRT) Issues Earnings Results

SmartRent (NYSE:SMRT) released its quarterly earnings results on Wednesday. The company reported ($0.03) EPS for the quarter, missing analysts’ consensus estimates of ($0.02) by ($0.01), FiscalAI reports. SmartRent had a negative net margin of 16.58% and a negative return on equity of 10.61%. The business had revenue of $38.39 million during the quarter, compared to analysts’ expectations 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 Trading Down 5.7%

SMRT opened at $1.23 on Thursday. The firm has a market capitalization of $236.42 million, a PE ratio of -9.58 and a beta of 1.52. The firm has a 50 day moving average of $1.09 and a two-hundred day moving average of $1.37. SmartRent has a 12-month low of $0.91 and a 12-month high of $2.20.

Insider Transactions at SmartRent

In related news, Director Thomas N. Bohjalian acquired 75,000 shares of the stock in a transaction on Wednesday, June 10th. The shares were acquired at an average price of $1.11 per share, for a total transaction of $83,250.00. Following the transaction, the director owned 721,062 shares in the company, valued at approximately $800,378.82. This trade represents a 11.61% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Frank Martell purchased 40,260 shares of the company’s stock in a transaction that occurred on Friday, June 5th. The shares were purchased at an average price of $1.13 per share, for a total transaction of $45,493.80. Following the transaction, the chief executive officer owned 3,225,526 shares of the company’s stock, valued at $3,644,844.38. This trade represents a 1.26% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders bought 295,260 shares of company stock worth $339,044 in the last 90 days. Company insiders own 2.30% of the company’s stock.

Institutional Trading of SmartRent

A number of institutional investors and hedge funds have recently made changes to their positions in the business. LPL Financial LLC grew its stake in SmartRent by 60.9% during the 4th quarter. LPL Financial LLC now owns 37,000 shares of the company’s stock valued at $75,000 after acquiring an additional 14,000 shares in the last quarter. Neuberger Berman Group LLC purchased a new position in SmartRent in the 4th quarter worth approximately $30,000. Invesco Ltd. boosted its holdings in shares of SmartRent by 4.8% during the 4th quarter. Invesco Ltd. now owns 331,584 shares of the company’s stock worth $670,000 after purchasing an additional 15,124 shares during the last quarter. Squarepoint Ops LLC increased its holdings in shares of SmartRent by 111.3% in the fourth quarter. Squarepoint Ops LLC now owns 31,774 shares of the company’s stock valued at $64,000 after purchasing an additional 16,734 shares during the last quarter. Finally, Kanen Wealth Management LLC acquired a new stake in shares of SmartRent in the third quarter valued at approximately $26,000. 59.42% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several analysts have weighed in on SMRT shares. Weiss Ratings raised shares of SmartRent from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday, July 21st. Keefe, Bruyette & Woods decreased their price target on shares of SmartRent from $1.40 to $1.20 and set a “market perform” rating for the company in a report on Monday, July 13th. Two analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, SmartRent presently has a consensus rating of “Reduce” and an average price target of $1.20.

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.