Annual Recurring Revenue (“ARR”) increased 9% as Units Deployed Grew 10% Year Over Year;
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<\/i>Company Delivers Second Straight Quarter of Positive Adjusted EBITDA and Significantly Reduced Net Loss<\/i><\/p>\n
PHOENIX–(BUSINESS WIRE<\/a>)– First Quarter 2026 Highlights;<\/b><\/p>\n \n“SmartRent delivered a strong first quarter building off the momentum of the second half of 2025. We significantly reduced our net loss and delivered our second straight quarter of positive Adjusted EBITDA, fueled by efficiency gains and higher levels of recurring revenue. The first quarter of 2026 represents the third straight quarter of delivering on our commitments to our stakeholders,” commented Frank Martell, President and Chief Executive Officer of SmartRent.<\/p>\n \nMartell added, “With over 600 property owners and operators utilizing SmartRent’s industry leading platform and solutions, we are uniquely positioned to continue to expand our footprint and deliver strong ROI to our current and prospective customers. Over the next three quarters, we will remain laser focused on investing in our go-to-market organization as well as our technology platform and product solutions. Specifically, we are expanding our sales team, deepening account planning for key and targeted accounts, proactively renegotiating customer contracts that were designed for the Company’s early-stage years and expanding our ability to address the small to medium segment of the rental housing market with our recently announced Value Added Reseller (‘VAR’) program.”<\/p>\n \nChief Financial Officer Daryl Stemm added, “Adjusted EBITDA was approximately $0.4 million, positive for the second consecutive quarter, and total gross margin expanded approximately 630 basis points year-over-year to 39.1%, primarily reflecting growth of ARR and the benefits of our ongoing cost productivity program. Our SaaS gross margin expanded to 74.5%, reflecting the operating leverage building within our recurring revenue model. We ended the first quarter with $99 million in cash, no debt and an undrawn $75 million credit facility. Despite a challenging market and macroeconomic environment, we remain confident in delivering Adjusted EBITDA profitability and positive cash flow on a full-year basis.”<\/p>\n First Quarter 2026 Results Summary<\/b><\/p>\n \nTotal revenue for the first quarter of 2026 was $38.7 million, a decrease of approximately 6% from $41.3 million in the first quarter of 2025, driven primarily by a $2.6 million decline in non-cash hub amortization revenue and a hardware revenue comparison against a particularly strong prior year quarter. Excluding hub amortization, which represents non-cash revenue associated with hubs sold in prior periods, Core Revenue for the first quarter of 2026 was approximately $36.6 million and was essentially flat compared to $36.7 million in the first quarter of 2025. We believe Core Revenue is the more representative measure of the underlying volume of the business, as it excludes non-cash revenue from hubs shipped up to four years ago.<\/p>\n \nWithin the revenue mix, Hosted services revenue totaled $17.3 million comprised of $15.2 million in SaaS revenue and $2.1 million of hub amortization. SaaS Revenue grew 9% year over year to $15.2 million. Hardware revenue was $15.4 million, down 18%, from $18.8 million in the prior year first quarter, which included a particularly strong customer order that contributed to an elevated prior year comparison. Professional services revenue was $6.0 million, up 55%, from $3.9 million in the prior year.<\/p>\n \nAverage Revenue Per Unit (\u201cARPU\u201d) trends reflected continued stability within the installed base. SaaS ARPU was $5.63 in the first quarter of 2026 compared to $5.69 in the first quarter of 2025.<\/p>\n \nAs of March 31, 2026, Units Deployed reached 911,244, an increase of 10% with 83,633 more units compared to March 31, 2025, reflecting continued expansion of our installed base. The Company had 20,662 New Units Deployed during the quarter, a 14% increase from 18,114 New Units Deployed in the prior year first quarter. Units Booked in the first quarter of 2026 totaled 16,592, representing a 9% decrease over the first quarter of 2025, reflecting the early-stage ramp of our expanding sales organization, the timing impact of ongoing contract renewal activity, and a rental housing market environment where operators have been deliberate in their capital deployment decisions.<\/p>\n \nTotal gross profit for the first quarter of 2026 was $15.1 million, compared to $13.6 million in the first quarter of 2025, with total gross margin expanding approximately 630 basis points to 39.1% from 32.8% in the prior year first quarter. The improvement reflects the structural cost reduction actions taken in the second half of 2025, improved operating discipline and a more favorable revenue mix. SaaS gross profit was $11.3 million, an increase of approximately 15% year over year, and SaaS gross margin expanded to 74.5%, resulting from improved operating efficiency. Hosted services gross profit increased to $12.2 million from $12.1 million in the prior year first quarter, with hosted services gross margin expanding approximately 560 basis points to 70.5%, driven by SaaS revenue growth. Professional services gross profit improved to approximately $0.1 million compared to a loss of $3.4 million in the prior year first quarter, with gross margin improving more than 89 percentage points year over year, reflecting reductions in fixed costs and a shift to a more variable cost installation model. Hardware gross profit was $2.8 million compared to $4.9 million in the prior year quarter, with hardware gross margin declining due to product mix and lower shipment volume.<\/p>\n \nIn the first quarter of 2026, operating expenses were $20.2 million, a 32% decrease from $29.9 million in the same quarter from the prior year primarily driven by our cost alignment initiative implemented in the second half of 2025. Net loss improved in the first quarter 2026 by $35.8 million to $4.4 million, from $40.2 million in the same quarter prior year. Adjusted EBITDA improved meaningfully by 106% to $0.4 million for the first quarter 2026, from a loss of $6.4 million in the same quarter prior year.<\/p>\n \nThe Company used approximately $5.7 million of cash during the quarter and ended the quarter with a cash balance of approximately $99 million and no debt. The use of cash was primarily driven by expected payments of seasonal accounts payable and accrued compensation.<\/p>\n Key Operating Metrics<\/b><\/p>\n
\nSmartRent, Inc. (NYSE: SMRT) (\u201cSmartRent\u201d or the \u201cCompany\u201d), a leading provider of smart communities and operations solutions for the rental housing industry, today reported financial results for the three months ended March 31, 2026.<\/p>\n\n
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