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

SmartRent (NYSE:SMRT) issued its earnings results on Wednesday. The company reported ($0.02) EPS for the quarter, hitting the consensus estimate of ($0.02), FiscalAI reports. SmartRent had a negative return on equity of 8.50% and a negative net margin of 12.97%. The business 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 Stock Performance

Shares of NYSE SMRT traded up $0.21 during mid-day trading on Wednesday, reaching $1.58. 4,977,949 shares of the company were exchanged, compared to its average volume of 545,726. SmartRent has a 52 week low of $0.91 and a 52 week high of $2.20. The company’s 50 day moving average price is $1.24 and its 200 day moving average price is $1.34.

Insider Activity at SmartRent

In other news, CEO Frank Martell purchased 100,000 shares of the stock in a transaction on Tuesday, August 11th. The shares were acquired at an average price of $1.42 per share, for a total transaction of $142,000.00. Following the completion of the transaction, the chief executive officer directly owned 3,672,086 shares of the company’s stock, valued at approximately $5,214,362.12. This trade represents a 2.80% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this link. Also, Director Ana Pinczuk acquired 107,000 shares of the business’s stock in a transaction dated Tuesday, August 11th. The stock was purchased at an average price of $1.43 per share, with a total value of $153,010.00. Following the completion of the acquisition, the director directly owned 385,704 shares in the company, valued at approximately $551,556.72. This represents a 38.39% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have bought a total of 267,000 shares of company stock valued at $378,110 over the last 90 days. 2.30% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on SMRT. Keefe, Bruyette & Woods decreased their target price on shares of SmartRent from $1.40 to $1.20 and set a “market perform” rating on the stock in a report on Monday, July 13th. Weiss Ratings lowered shares of SmartRent from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Friday, October 16th. Finally, B. Riley Financial began coverage on SmartRent in a research report on Tuesday, October 13th. They issued a “buy” rating and a $1.75 price objective on the stock. One analyst has rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average 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.