SmartRent, Inc.

Total revenue was $40 million in the second quarter, up 4% year over year. Core revenue, excluding noncash hub amortization, was $38 million, up 14%; SaaS revenue grew 13% to $16 million and represented more than 40% of total revenue. Hardware revenue was $14 million, down 10%, and professional services revenue was $9 million, up 100%. Gross margin was 41%, up 760 basis points; SaaS gross margin was 75%, professional services gross margin was 21%, and hardware gross margin was 13%. Net loss was $6 million, an improvement of $5 million or 48%, and adjusted EBITDA was $700,000, marking the third consecutive quarter of positive adjusted EBITDA. ARR increased to approximately $65 million from $57 million a year ago, installed IoT units rose 10% to nearly 930,000, and units booked on a trailing 12-month basis increased 40% to approximately 112,000 units. Management did not provide formal numeric full-year or next-quarter revenue guidance, but said revenue, profitability, and cash flow in the second half of 2026 should be stronger than the first half.

Frank Martell framed the quarter as strong proof of progress against Vision 2028, emphasizing accelerating growth and a more leverageable operating model. He highlighted the installed-base milestone approaching 1 million units as a potential inflection point for both growth and profitability, and pointed to data/analytics, AI, and partnerships with Hexaware and Databricks as important next steps. His tone was upbeat and confident, repeatedly saying the company is better positioned than ever to expand its footprint and monetize its platform.

Daryl Stemm focused on the mix and margin improvements driving the quarter: total revenue of $40 million, core revenue of $38 million, gross margin of 41%, operating expenses of $23 million, net loss of $6 million, and adjusted EBITDA of $700,000. He noted SaaS gross margin improved to 75% from 70%, professional services gross margin improved to 21% from negative 44%, and that the company ended the quarter with $93 million in cash, no debt, and an undrawn $75 million credit facility. He also said SmartRent repurchased about 3 million shares for roughly $3 million in the quarter, about 1.5% of shares outstanding, and that the board expanded the authorization to $25 million.

Analysts pressed on what drove the stronger bookings, and management said some larger IoT orders simply landed in Q2 after timing shifts, while sales-team investment and better go-to-market execution also helped. On deployment timing, Daryl said recent quarters have been running around plus or minus 20,000 units deployed and cautioned against assuming a jump to close to 30,000 units all in Q3. Questions on the data-and-analytics build-out led Frank to say SmartRent wants to use Databricks and Hexaware to create a repeatable business around real-time customer insights, and that this could become a sizable revenue stream in coming years. On renewals, Daryl said prior negotiations should benefit revenue by about $0.05 per unit per month, or roughly $50,000 per month, by the end of the year, with further benefit in later years as more communities roll onto updated rates.