SmartRent (NYSE:SMRT) Posts Quarterly Earnings Results, Hits Estimates

SmartRent (NYSE:SMRT) posted its quarterly earnings data on Wednesday. The company reported ($0.02) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.02), FiscalAI reports. SmartRent had a negative net margin of 12.97% and a negative return on equity of 8.50%. The business had revenue of $40.69 million during the quarter, compared to analysts’ expectations of $40.06 million.

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

• Revenue and margins improved substantially: Q3 core revenue grew 24% year over year, while gross margin expanded to 41% from 26%. Adjusted EBITDA was positive for the fourth consecutive quarter at $1.1 million.
• Bookings point to stronger deployment activity: Trailing 12-month units booked rose 44% and bookings by dollar value increased 29%. Management expects deployments to ramp in Q4 and 2027, with the 1 million installed-unit milestone targeted for the first half of 2027.
• Q4 outlook calls for continued growth: The company forecast total revenue growth of 15%–20%, core revenue growth of 20%–25%, and adjusted EBITDA growth of roughly 450%–650% year over year.
• Liquidity and cash generation strengthened: SmartRent ended September with $89 million in cash, no debt, and positive operating cash flow, and repurchased $3.4 million of shares during the quarter.
• Maintenance-related attrition is weighing on software metrics: Management said Smart Operations attrition is expected to continue for a couple more quarters, contributing to lower SaaS ARPU. The company is integrating and enhancing the offering, but expects benefits from those investments to begin in 2027.

SmartRent Stock Up 15.6%

SmartRent stock traded up $0.21 during midday trading on Wednesday, hitting $1.58. The company’s stock had a trading volume of 4,550,176 shares, compared to its average volume of 1,281,762. The stock’s 50-day moving average price is $1.24 and its 200-day moving average price is $1.34. SmartRent has a 12 month low of $0.91 and a 12 month high of $2.20. The company has a market capitalization of $303.51 million, a PE ratio of -15.84 and a beta of 1.64.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on SMRT shares. Keefe, Bruyette & Woods cut their target price on SmartRent from $1.40 to $1.20 and set a “market perform” rating for the company in a research report on Monday, July 13th. Weiss Ratings lowered SmartRent from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Friday, October 16th. Finally, B. Riley Financial started coverage on SmartRent in a research report on Tuesday, October 13th. They set a “buy” rating and a $1.75 price target on the stock. One research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, SmartRent currently has a consensus rating of “Hold” and a consensus price target of $1.48.

Insider Buying and Selling at SmartRent

In other SmartRent news, CEO Frank Martell acquired 100,000 shares of the stock in a transaction dated Tuesday, August 11th. The shares were bought at an average price of $1.42 per share, with a total value of $142,000.00. Following the purchase, the chief executive officer directly owned 3,672,086 shares of the company’s stock, valued at approximately $5,214,362.12. This trade represents a 2.80% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Thomas N. Bohjalian acquired 40,000 shares of the stock in a transaction dated Wednesday, August 19th. The stock was acquired at an average cost of $1.40 per share, for a total transaction of $56,000.00. Following the purchase, the director directly owned 766,062 shares in the company, valued at approximately $1,072,486.80. The trade was a 5.51% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last three months, insiders acquired 267,000 shares of company stock valued at $378,110. 2.30% of the stock is owned by insiders.

About SmartRent

SmartRent, Inc (NYSE: SMRT) provides smart-home technology and property-management solutions for rental housing owners, operators and residents. Its platform is designed to help housing providers manage connected properties, improve operational efficiency and offer residents digital control over home features and services.

The company’s products and services include smart locks, thermostats, sensors, hubs, access-control systems and other connected devices, along with software for monitoring and managing properties.