SmartRent (NYSE:SMRT) Releases Earnings Results, Misses Expectations By $0.01 EPS

SmartRent (NYSE:SMRT) announced its earnings results on Wednesday. The company reported ($0.03) EPS for the quarter, missing the consensus estimate of ($0.02) by ($0.01), FiscalAI reports. The company had revenue of $38.39 million for the quarter, compared to analysts’ expectations of $39.62 million. SmartRent had a negative net margin of 16.58% and a negative return on equity of 10.61%.

Here are the key takeaways from SmartRent’s conference call:

• Core revenue rose 14% to $38 million, while SaaS revenue increased 13% to $16 million and exceeded 40% of total revenue. ARR reached approximately $65 million, supported by installed-base growth and adoption of access control and self-guided tours.
• Trailing-12-month units booked increased 40% to roughly 112,000, and SmartRent said it expects to surpass 1 million installed IoT units in the first half of 2027. Management characterized the bookings momentum as a combination of improved sales execution and the timing of several larger orders, while cautioning that quarterly deployments may remain uneven.
• Gross margin expanded 760 basis points to 41%, helped by revenue growth and cost reductions; SaaS gross margin reached 75% and professional-services gross margin improved to 21%. Adjusted EBITDA was positive for the third consecutive quarter, and management expects second-half 2026 revenue, profitability, and cash flow to exceed the first half.
• SmartRent ended the quarter with $93 million in cash, no debt, and an undrawn $75 million credit facility, while repurchasing approximately 1.5% of shares for $3 million. The board subsequently authorized up to $25 million in additional repurchases.
• Management is building a data-and-analytics business using its connected-device network and partnerships with Databricks and Hexaware, targeting opportunities in energy efficiency, water conservation, and risk management. Executives described this as a potentially sizable future revenue and ARPU opportunity, but provided limited timing or investment details.

SmartRent Stock Performance

Shares of SMRT stock traded up $0.22 during trading hours on Wednesday, hitting $1.27. 7,375,546 shares of the company were exchanged, compared to its average volume of 1,461,640. The stock has a market capitalization of $245.68 million, a price-to-earnings ratio of -9.80 and a beta of 1.52. SmartRent has a one year low of $0.90 and a one year high of $2.20. The business’s 50-day simple moving average is $1.09 and its two-hundred day simple moving average is $1.38.

Insider Activity

In other news, CEO Frank Martell acquired 40,260 shares of the business’s stock in a transaction on Friday, June 5th. The shares were purchased at an average price of $1.13 per share, for a total transaction of $45,493.80. Following the completion of the purchase, the chief executive officer directly owned 3,225,526 shares of the company’s stock, valued at $3,644,844.38. This represents a 1.26% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Thomas N. Bohjalian bought 75,000 shares of SmartRent stock in a transaction on Wednesday, June 10th. The shares were purchased at an average cost of $1.11 per share, for a total transaction of $83,250.00. Following the acquisition, the director owned 721,062 shares in the company, valued at $800,378.82. The trade was a 11.61% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders purchased 295,260 shares of company stock valued at $339,044. 2.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On SmartRent

A number of hedge funds have recently added to or reduced their stakes in SMRT. AQR Capital Management LLC raised its holdings in shares of SmartRent by 245.9% during the first quarter. AQR Capital Management LLC now owns 973,783 shares of the company’s stock worth $1,178,000 after purchasing an additional 692,268 shares during the period. Jacobs Levy Equity Management Inc. bought a new stake in shares of SmartRent during the first quarter valued at about $69,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of SmartRent by 81.9% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 634,066 shares of the company’s stock worth $767,000 after acquiring an additional 285,478 shares during the period. JPMorgan Chase & Co. raised its stake in shares of SmartRent by 55.7% in the 2nd quarter. JPMorgan Chase & Co. now owns 173,485 shares of the company’s stock worth $172,000 after buying an additional 62,028 shares in the last quarter. Finally, Norges Bank acquired a new stake in SmartRent in the 2nd quarter valued at about $248,000. Institutional investors and hedge funds own 59.42% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on SMRT shares. Weiss Ratings upgraded shares of SmartRent from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Tuesday, July 21st. Keefe, Bruyette & Woods dropped their target price on SmartRent from $1.40 to $1.20 and set a “market perform” rating on the stock in a research report on Monday, July 13th. Two equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, SmartRent currently has a consensus rating of “Reduce” and an average price target of $1.20.

About SmartRent

SmartRent Inc is a technology company that develops smart home and smart building automation solutions for the residential rental housing industry. Its integrated hardware and software platform enables property managers and owners to remotely monitor, manage and control access, energy use and overall resident experience. The company’s product portfolio includes smart locks, thermostats, leak and flood sensors, door and window sensors, security cameras, and a centralized management dashboard that interfaces with leading property management systems.

SmartRent’s platform is designed to streamline operations for multifamily communities and single-family rental portfolios by automating routine tasks such as digital resident self-showings, remote lease turnovers, package management and preventative maintenance alerts.