| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 39.84 | 3.0% | 4.0% |
| Total Income | 39.84 | 3.0% | 4.0% |
| Expenditure | 46.31 | 5.8% | 7.4% |
| PBT | -5.80 | 31.5% | 46.7% |
| Net Profit | -5.64 | 26.7% | 48.1% |
| OPM | -16.22% | 3.05pp | 14.29pp |
| NPM | -14.16% | 2.66pp | 14.19pp |
| EPS | -0.03 | 50.0% | 50.0% |
SmartRent Reports Q2 2026 Financial Results with Accelerating Revenue Growth
05 Aug 2026 · 5 Aug, 5:44 pm
Summary
SmartRent reported second quarter 2026 results with Total Revenue of $39.8 million, up 4% year-over-year, and Core Revenue increasing by 14% to $38.4 million. The company saw strong growth in Units Booked, up 98% in the quarter to 48,254, contributing to a 10% increase in Total Units Deployed to 929,487. Profitability improved significantly, with Gross Margin expanding to 40.7% and Adjusted EBITDA turning positive at $0.7 million. Management expressed confidence in exceeding one million installed units in the first half of next year, driven by strong demand and strategic investments.
Key Highlights
- 1
Total Revenue for the second quarter of 2026 was $39.8 million, an increase of 4% from the prior year.
- 2
Core Revenue totaled $38.4 million, showing a significant increase of 14% year-over-year.
- 3
Annual Recurring Revenue (ARR) grew by 13% to $64.5 million, representing 40% of Total Revenue.
- 4
Units Booked for the trailing twelve months increased by 40% to 112,560, with Q2 bookings up 98% to 48,254.
- 5
Total Units Deployed reached 929,487 as of June 30, 2026, a 10% increase year-over-year.
- 6
Gross Margin expanded to 40.7%, up 760 basis points, marking the third consecutive quarter of improvement.
- 7
Adjusted EBITDA improved by $8.0 million to $0.7 million, representing the third consecutive quarter of positive Adjusted EBITDA.
Management Comments
Frank Martell
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. 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. At the same time that we are aggressively expanding our installed IoT footprint, we are also seeing significant growth in other synergistic solutions such as our highly regarded access control and self-guided tour offerings. In addition, we are investing in our data and analytics solutions which leverage our network of millions of connected devices through investments such as the planned launch of our SmartRent Innovation Center and our recently announced strategic collaborations with Hexaware and Databricks.
Daryl Stemm
We ended the quarter with approximately $93 million in cash, no debt, and an undrawn $75 million credit facility. With the strength of Units Booked over the last twelve months, and our focus on margin expansion and disciplined operational execution, we believe that our second half Core Revenue and profitability will be substantially stronger than the second half of 2025. 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.
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