SmartRent, Inc. (SMRT): Results of Operations and Financial Condition
SmartRent, Inc. (SMRT) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 SmartRent Reports Second Quarter 2026 Financial Results Accelerating Revenue Growth Trend Supports March to One Million Installed Units Improving Profitability Powers Investment in Growth and Capital Returns Phoenix, Ariz., August 5, 2026 – (BUSINESS WIRE) – SmartRen
How this was made
The 30-second read
Why it matters
Traders can update models around ARR growth, unit deployment momentum toward one million installed units, and improving profitability metrics (gross margin and Adjusted EBITDA), while also factoring the expanded share repurchase authorization.
Market read
The filing combines operating momentum (ARR and units) with profitability improvement and a larger buyback plan, creating multiple near-term valuation catalysts.
What to watch
The article provides no forward guidance numbers, only qualitative expectations for stronger second-half 2026 Core Revenue and profitability versus 2H 2025, which may limit how far the market can extrapolate.
Core Revenue and ARR grew at double-digit rates, gross margin expanded 760 basis points, and Adjusted EBITDA remained positive for a third consecutive quarter.
Core Revenue grew approximately 14%, ARR increased 13%, gross margin expanded to 40.7%, and Adjusted EBITDA improved to $0.7 million. Total Revenue growth was approximately 4%, hardware revenue declined 10%, and net loss remained $5.6 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total RevenueGAAP | $39.8 million | – | approximately 4% |
| Core Revenuenon-GAAP | $38.4 million | – | approximately 14% |
| Annual Recurring Revenueother | approximately $64.5 million | – | 13% |
| Annual Recurring Revenue as a percentage of Total Revenueother | 40% of Total Revenue | – | – |
| Hosted services revenueGAAP | $17.6 million | – | – |
| SaaS revenueGAAP | $16.1 million | – | 13% |
| Hub amortization revenueGAAP | $1.5 million | – | – |
| Hardware revenueGAAP | $13.6 million | – | down 10% |
| Professional services revenueGAAP | $8.6 million | – | up 100% |
| Total gross profitGAAP | $16.2 million | – | – |
| Total gross marginGAAP | 40.7% | – | up 760 basis points |
| SaaS gross profitGAAP | $12.1 million | – | 22% |
| SaaS gross marginGAAP | 75.3% | – | – |
| Operating expensesGAAP | $22.7 million | – | a 7% decrease |
| Net lossGAAP | $5.6 million | – | improved by $5.3 million or 48% |
| Net loss, highlights disclosureGAAP | $6 million | – | improved by $5.3 million, or 48% |
| Adjusted EBITDAnon-GAAP | $0.7 million | – | improved meaningfully by 110% |
| SaaS ARPUother | $5.84 | – | – |
| Total Units Deployedother | 929,487 Units | – | 10% |
| Increase in Total Units Deployedother | 81,531 more units | – | – |
| New Units Deployedother | 18,857 New Units Deployed | – | – |
| Trailing twelve-month Units Bookedother | 112,560 units | – | 40% |
| Second-quarter Units Bookedother | 48,254 | – | 98% |
| Cash on handGAAP | $92.7 million | – | – |
| Credit facilityother | undrawn $75 million credit facility | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Hosted servicesComprised of $16.1 million in SaaS revenue and $1.5 million of hub amortization. | $17.6 million | – | – |
| SaaSDriven by continued expansion of the installed base and adoption of Access Control and Self-Guided Tour solutions. | $16.1 million | – | 13% |
| HardwareHardware revenue declined from $15.1 million in the prior year quarter. | $13.6 million | – | down 10% |
| Professional servicesPrimarily driven by increased hardware refresh installations and higher Access Control volume, which contributed to growth in professional services Average Revenue Per Unit. | $8.6 million | – | up 100% |
Second half of 2026 and first half of 2027 outlook
- NoteThe Company believes that its second half Core Revenue and profitability will be substantially stronger than the second half of 2025.
- NoteThe Company stated a goal of one million installed units in the first half of 2027.
Capital returns
- The Company repurchased 2.8 million shares, or 1.5% of shares outstanding, at an aggregate cost of $3.4 million during the second quarter of 2026.
- On July 24, the Board of Directors approved an expanded share repurchase plan with an authorization of up to $25 million.
- The Company concurrently canceled its prior share repurchase plan, which had a remaining authorization of $13.4 million.
What drove it
- Core Revenue growth reflected increased volume of bookings and continued growth in the Company's installed base.
- ARR growth was primarily driven by expansion of the installed base.
- Gross-margin expansion reflected structural cost reduction actions taken in the second half of 2025, improved operating discipline and an increased level of SaaS revenue.
- SaaS gross-margin expansion reflected the positive impact and continuing benefits of operating leverage.
- Trailing twelve-month Units Booked reflected sustained momentum in sales execution consistent with Vision 2028 priorities.
- ARPU trends reflected continued stability within the installed base and adoption of Access Control and Self-Guided Tour solutions.
Concerns
- Total Revenue increased approximately 4%, below the approximately 14% increase in Core Revenue.
- Hardware revenue was down 10% from the prior year quarter.
- New Units Deployed were 18,857, compared with 21,068 in the prior year.
- The Company reported a net loss of $5.6 million.
- The highlights section reports net loss of $6 million, while the detailed results summary reports net loss of $5.6 million.
What to watch
- Progress toward the Company's goal of one million installed units in the first half of 2027.
- Conversion of 112,560 trailing twelve-month Units Booked into deployed units.
- Whether Core Revenue and profitability in the second half of 2026 are substantially stronger than the second half of 2025.
- Continued SaaS growth, Access Control and Self-Guided Tour adoption, and SaaS gross-margin performance.
- Execution of the share repurchase authorization of up to $25 million.
Balance sheet and cash flow
- SmartRent ended the quarter with $92.7 million in cash on hand.
- The Company ended the quarter with a cash balance of approximately $93 million.
- The Company reported no debt.
- The Company had an undrawn $75 million credit facility.
Analysis
SmartRent reported improving underlying growth in the second quarter of 2026. Total Revenue was $39.8 million, up approximately 4%, while non-GAAP Core Revenue increased approximately 14% to $38.4 million. ARR increased 13% to approximately $64.5 million, and trailing twelve-month Units Booked increased 40% to 112,560 units. Management attributed Core Revenue growth to higher booking volume and continued installed-base expansion.
Revenue mix was uneven. SaaS revenue grew 13% to $16.1 million, supported by installed-base expansion and adoption of Access Control and Self-Guided Tour solutions. Professional services revenue increased 100% to $8.6 million, primarily due to hardware refresh installations and higher Access Control volume. Hardware revenue declined 10% to $13.6 million. New Units Deployed were 18,857, compared with 21,068 in the prior year, although Total Units Deployed increased 10% to 929,487 Units.
Profitability improved materially. Total gross profit increased to $16.2 million from $12.7 million, and total gross margin expanded to 40.7% from 33.1%. The Company cited structural cost reductions in the second half of 2025, improved operating discipline and a higher level of SaaS revenue. Operating expenses declined 7% to $22.7 million, SaaS gross profit increased 22% to $12.1 million, and SaaS gross margin reached 75.3%. Adjusted EBITDA was $0.7 million compared with a loss of $7.3 million, marking the third consecutive quarter of positive Adjusted EBITDA.
The balance sheet supported capital returns. SmartRent reported $92.7 million in cash on hand, no debt and an undrawn $75 million credit facility. The Company repurchased 2.8 million shares for $3.4 million during the quarter. On July 24, the Board approved an expanded authorization of up to $25 million and canceled the previous plan, which had $13.4 million remaining.
Forward commentary was qualitative rather than a formal quantitative financial outlook. Management said second-half Core Revenue and profitability should be substantially stronger than the second half of 2025 and identified a goal of one million installed units in the first half of 2027. The main reported items to monitor are conversion of booked units to deployments, the hardware revenue decline, sustained SaaS and professional-services growth, continued gross-margin expansion, and execution against the new repurchase authorization.
Management, verbatim
By almost every measure, SmartRent delivered strong progress in the second quarter as we continued to stay laser focused on realizing the full benefits outlined in our Vision 2028 strategic plan. Core Revenue and ARR were up double digits reflecting strong demand for our best-in-class solutions, the inherent benefits of our market leadership position, and our ongoing investments in sales execution.
Frank Martell, President and Chief Executive Officer of SmartRent
Our installed IoT footprint now stands at approximately 930,000 units. Given our significant uptrend in Booked Units, I believe we are in a strong position to exceed one million installed units during the first half of next year.
Frank Martell, President and Chief Executive Officer of SmartRent
We repurchased 2.8 million shares for $3.4 million during the quarter. With our strong balance sheet and improving financial results, we will continue to evaluate capital allocation opportunities, including share repurchases, through the lens of long-term shareholder value.
Daryl Stemm, Chief Financial Officer
Not in the filing
stated, not guessed- GAAP diluted EPS
- non-GAAP diluted EPS
- GAAP operating income or loss
- EBITDA value
- operating cash flow
- free cash flow
- cash-flow statement detail
- dividend amount or dividend policy
- quantitative revenue guidance
- quantitative gross-margin guidance
- quantitative operating-expense guidance
- quantitative tax-rate guidance
- prior-quarter comparisons for reported financial metrics
- prior-year value for Annual Recurring Revenue
- prior-year value for SaaS revenue
- prior-year value for SaaS gross profit
- prior-year value for SaaS gross margin
- prior-year value for trailing twelve-month Units Booked
- prior-year value for second-quarter Units Booked
- prior-year value for Total Units Deployed
- prior-year value for Total gross profit
- reconciliation or explanation for the $6 million net-loss figure in the highlights section and the $5.6 million net-loss figure in the detailed results summary
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) with Exhibit 99.1 covering SmartRent’s Q2 2026 financial results and capital allocation updates.
Ticker impact
SmartRent reported Q2 2026 results, including 13% ARR growth to $64.5M, gross margin expansion to 40.7%, and a $25M expanded buyback authorization.
Likely positive bias for the stock into the next trading sessions as investors digest margin and ARR momentum plus the larger buyback authorization.
The 8-K includes multiple concrete operating metrics (ARR, units booked/deployed, gross margin, Adjusted EBITDA) and a specific capital allocation update (expanded $25M repurchase plan), all of which are direct inputs to valuation and sentiment.
Market effects
Supports the rental IoT and proptech narrative that installed-base monetization can drive margin expansion.
No specific regional spillover stated beyond company-level performance.
Primarily company-specific; no global macro or cross-border transaction disclosed.
Counterpoint
Hardware revenue declined 10% year over year, so growth may be increasingly dependent on SaaS and installed-base conversion rather than new hardware cycles.
Key entities
- issuerSmartRent, Inc.
Reported Q2 2026 revenue, ARR, unit metrics, margin expansion, and capital return actions via an 8-K.
- executiveFrank Martell
CEO quote emphasizing progress toward Vision 2028 and expectation to exceed one million installed units in early 2027.
- executiveDaryl Stemm
CFO quote highlighting cash position, no debt, undrawn credit facility, and expectation of stronger 2H 2026 profitability vs 2H 2025.
