SmartRent, Inc.

What they do

SmartRent sells cloud-based software and smart building hardware that give property owners and managers visibility and control over rental assets. Products include Hub Devices that connect third-party smart devices, door locks, thermostats, sensors and light switches, plus access control, community WiFi, asset protection, self-guided tours, work order management and leasing automation. Revenue comes from hosted services subscriptions, device sales, and installation and implementation services. The company reported approximately 600 customers and a weighted average recurring contract length of 3.9 years.

Revenue drivers

• Hosted Services/SaaS — Subscription fees for access controls, asset monitoring, WiFi and related services. In Q2 2026, hosted services revenue was $17.6 million, including $16.1 million of SaaS revenue, which was 40% of total revenue and grew 13% year over year.
• Hardware — Sale and delivery of smart home devices including Hub Devices, door locks, thermostats, sensors and light switches. Hardware revenue was not separately quantified in the provided excerpt.
• Installation and professional services — Installation and implementation of smart home devices that enable Hosted Services, plus training and support. Revenue contribution was not separately quantified in the provided excerpt.

Recent performance

Second quarter 2026 total revenue was $39.8 million, up 4% from $38.3 million a year earlier, while Core Revenue rose 14% to $38.4 million. Annual recurring revenue increased 13% to $64.5 million, or 40% of total revenue, and units deployed reached 929,487, up 10%. Gross margin was 40.7%, up 760 basis points, and Adjusted EBITDA was $0.7 million, an $8.0 million improvement from a prior-year loss. Net loss improved by $5.3 million, or 48%, to $6 million. The company repurchased 2.8 million shares for $3.4 million in the quarter.

Strategy

Management is executing a Vision 2028 plan centered on accelerating growth and expanding the path to profitability through a more leverageable operating model. Five stated pillars are growing the installed footprint, scaling go-to-market, unifying the platform through data, analytics and AI, simplifying hardware while expanding software, and strengthening operating rigor. The company cited investments in access control, self-guided tours, and data and analytics, including a planned SmartRent Innovation Center and strategic collaborations with Hexaware and Databricks. On July 24, 2026, the Board approved an expanded share repurchase authorization of up to $25 million.

Risks

• History of net losses — SmartRent has reported annual net losses every year from 2021 through 2025 and may not achieve or maintain profitability.
• Customer and macroeconomic sensitivity — The company states its ability to attract and retain new customers and expand sales with existing customers may be impacted by macroeconomic and other factors.
• Supply chain and supplier concentration — It relies on a limited number of third-party suppliers and manufacturers, and delays, disruptions or quality problems could cause lost market share.
• CEO transition — The company identifies the transition of leadership to its new President and Chief Executive Officer as a risk that could adversely impact it.

Outlook

Management said that given the uptrend in booked units, it believes the company is positioned to exceed one million installed units during the first half of next year. The CFO stated that second-half Core Revenue and profitability should be substantially stronger than the second half of 2025. The company ended the quarter with $92.7 million in cash, no debt, and an undrawn $75 million credit facility, and said it will continue evaluating capital allocation opportunities including share repurchases.