SMRT · SmartRent, Inc.

SmartRent's first quarter 2026 results reflect continued progress in its turnaround, with the company delivering its second consecutive quarter of positive Adjusted EBITDA and a significant reduction in net loss. Total revenue declined 6% year-over-year to $38.7 million, primarily due to a large hardware order in the prior year that did not repeat. However, Core Revenue, which excludes non-cash hub amortization, was essentially flat at $36.6 million, indicating underlying business stability. The revenue mix continued to shift toward higher-margin recurring revenue, with ARR growing 9% to $60.9 million, now representing 39% of total revenue. SaaS revenue grew 9% to $15.2 million, and SaaS gross margin expanded to 74.5%, reflecting operating leverage. Total gross margin improved 630 basis points to 39.1%, driven by cost reduction initiatives and favorable mix. Operating expenses decreased 32% to $20.2 million, contributing to a net loss of $4.4 million, a $35.8 million improvement from the prior year's loss of $40.2 million, which included a $24.9 million goodwill impairment. Adjusted EBITDA of $0.4 million compared favorably to a loss of $6.4 million in the prior year. Management highlighted efficiency gains, ARR growth, and the benefits of productivity initiatives. The company ended the quarter with $99 million in cash, no debt, and an undrawn $75 million credit facility, though it used $5.7 million in cash during the quarter for seasonal payables and compensation. Units Deployed grew 10% to 911,244, and New Units Deployed increased 14% to 20,662, while Units Booked declined 9% to 16,592, reflecting a cautious rental housing market and early-stage sales ramp. Management expressed confidence in achieving full-year Adjusted EBITDA profitability and positive cash flow.