SMRT

Let’s dig into the relative performance of SmartRent (NYSE:SMRT) and its peers as we unravel the now-completed Q2 internet of things earnings season. Industrial Internet of Things (IoT) companies are buoyed by the secular trend of a more connected world. They often specialize in nascent areas such as hardware and services for factory automation, fleet tracking, or smart home technologies. Those who play their cards right can generate recurring subscription revenues by providing cloud-based software services, boosting their margins. On the other hand, if the technologies these companies have invested in don’t pan out, they may have to make costly pivots. The 6 internet of things stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was in line. Thankfully, share prices of the companies have been resilient as they are up 6.3% on average since the latest earnings results. Founded by an employee at a real estate rental company, SmartRent (NYSE:SMRT) provides smart home devices and software for multifamily residential properties, single-family rental homes, and student housing communities. SmartRent reported revenues of $39.84 million, up 4% year on year. This print exceeded analysts’ expectations by 0.6%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and EPS in line with analysts’ estimates. SmartRent delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 40.5% since reporting and currently trades at $1.48. Is now the time to buy SmartRent? Access our full analysis of the earnings results here, it’s free. Started from its humble beginnings in motor repair, AMETEK (NYSE:AME) manufactures electronic devices used in industries like aerospace, power, and healthcare. AMETEK reported revenues of $2.04 billion, up 15% year on year, outperforming analysts’ expectations by 4.4%. The business had a very strong quarter with full-year EPS guidance slightly topping analysts’ expectations and EPS guidance for next quarter topping analysts’ expectations. AMETEK delivered the biggest analyst estimate beat and fastest revenue growth in the group. The market seems content with the results as the stock is up 4.5% since reporting. It currently trades at $254.80. Is now the time to buy AMETEK? Access our full analysis of the earnings results here, it’s free. Founded in 1890, Emerson Electric (NYSE:EMR) is a multinational technology and engineering company providing solutions in the industrial, commercial, and residential markets. Emerson Electric reported revenues of $4.87 billion, up 7% year on year, exceeding analysts’ expectations by 1.5%. Still, it was a mixed quarter as it posted a significant miss of analysts’ EBITDA estimates. Interestingly, the stock is up 1.9% since the results and currently trades at $161.85. Read our full analysis of Emerson Electric’s results here. One of the first companies to address industrial automation, Rockwell Automation (NYSE:ROK) sells products that help customers extract more efficiency from their machinery. Rockwell Automation reported revenues of $2.31 billion, up 7.9% year on year. This number topped analysts’ expectations by 2.8%. Overall, it was a very strong quarter as it also put up a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EBITDA estimates. The stock is down 6.5% since reporting and currently trades at $449.80. Read our full, actionable report on Rockwell Automation here, it’s free. A spin-off of a spin-off, Vontier (NYSE:VNT) provides electronic products and systems to the transportation, automotive, and manufacturing sectors. Vontier reported revenues of $756.7 million, down 2.2% year on year. This result beat analysts’ expectations by 1.3%. It was a strong quarter as it also recorded full-year EPS guidance exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates. Vontier had the weakest guidance update, slowest revenue growth, and weakest full-year guidance update among its peers. The stock is down 2% since reporting and currently trades at $32.94. Read our full, actionable report on Vontier here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

SmartRent’s second quarter was met with a positive market reaction, as management highlighted strong execution of its Vision 2028 plan, with particular emphasis on accelerating core revenue growth and expanding gross margins. CEO Frank Martell pointed to the company’s best-in-class IoT, access control, and self-guided tour solutions as primary drivers, noting, “Our core revenues grew 14%, marking our highest quarterly growth rate in over 2 years.” Management also underscored the value of growing its installed base and the shift toward higher-margin SaaS offerings, which now represent over 40% of revenue. Is now the time to buy SMRT? Find out in our full research report (it’s free). Revenue: $39.84 million vs analyst estimates of $39.62 million (4% year-on-year growth, 0.6% beat) Adjusted EPS: $0 vs analyst estimates of -$0.01 (in line) Adjusted EBITDA: $717,000 vs analyst estimates of $97,000 (1.8% margin, relatively in line) Operating Margin: -16.2%, up from -30.5% in the same quarter last year Annual Recurring Revenue: $64.5 million (13.6% year-on-year growth, beat) Billings: $33.23 million at quarter end, in line with the same quarter last year Market Capitalization: $270.2 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Ryan Tomasello (KBW) asked about specific drivers of strong bookings. CEO Frank Martell explained that the quarter benefited from timing of several large orders and increased sales team traction, emphasizing that trailing 12-month metrics better reflect demand trends. Ryan Tomasello (KBW) inquired about the company’s data and analytics strategy. Martell outlined upcoming partnerships and the launch of a data business, describing it as an enabler for recurring revenue and customer ROI. Ryan Tomasello (KBW) sought clarity on renewal pricing trends with legacy customers. CFO Daryl Stemm noted ongoing negotiations are resulting in higher rates, with escalation clauses extending future benefit over several years. Ryan Tomasello (KBW) questioned the impact of macroeconomic conditions on customer budgets. Martell acknowledged some pressure in the market but said SmartRent is having larger, more strategic customer conversations due to its growing credibility. Ryan Tomasello (KBW) asked about the timing of hardware refresh cycles. Stemm stated that hardware and subscription renewals are becoming regular, recurring revenue streams as the installed base matures. Looking ahead, the StockStory team will be monitoring (1) the launch and early adoption of SmartRent’s data and analytics platform, (2) the pace at which the installed device base surpasses one million units—a key milestone for future recurring revenue, and (3) ongoing expansion of SaaS and professional services as the business shifts toward more lifecycle-driven solutions. The ability to sustain margin gains and leverage partnerships will also be critical indicators. SmartRent currently trades at $1.48, up from $1.05 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 11:30 a.m. ET Head of Investor Relations - Kelly Reisdorf President and Chief Executive Officer - Frank Martell Chief Financial Officer - Daryl Stemm Operator: Hello everyone, thank you for joining us and welcome to the SmartRent Second Quarter 2026 earnings call. [Operator Instructions] I will now hand the conference over to Kelly Reisdorf, Head of Investor Relations. Kelly, please go ahead. Kelly Reisdorf: Hello, and thank you for joining us today. My name is Kelly Reisdorf, Head of Investor Relations for SmartRent. I'm joined today by our President and Chief Executive Officer, Frank Martell, and Daryl Stemm, Chief Financial Officer. Before the market opened today, we issued an earnings release and filed our 10-Q with the SEC, both of which are available on the Investor Relations section of our website. I would like to remind everyone that the discussion today may contain certain forward-looking statements that involve risks and uncertainties. Various factors could cause our actual results to be materially different from any future results expressed or implied by such statements. These factors are discussed in our SEC filings, including in our annual report on Form 10-K and quarterly reports on Form 10-Q. We undertake no obligation to provide updates regarding forward-looking statements made during this call, and we recommend that all investors review these reports thoroughly before taking a financial position in SmartRent. Unless otherwise noted, all comparisons discussed on today's call refer to the second quarter of 2026 compared with the second quarter of 2025. Also, during today's call, we will refer to certain non-GAAP financial measures. A discussion of these non-GAAP financial measures, along with a reconciliation to the most directly comparable GAAP measure, is included in today's earnings release. We would also like to highlight that our quarterly earnings presentation is available on the Investor Relations section of our website. And with that, I will turn the call over to Frank. Frank Martell: Good morning, everyone, and thank you for joining us. Today I'm going to discuss the more significant operational and financial highlights from the quarter from my point of view. Daryl will conclude our prepared remarks with a more detailed discussion of our Q2 financial results. By almost every measure, SmartRent delivered strong progress in the second quarter as we continue to stay laser-focused on realizing the full benefits outlined in our Vision 2028 strategic plan. As you may recall, Vision 2028 focuses on two priorities. First, accelerating growth by expanding our competitive moat; and second, increasing profitability levels through a leverageable operating model. These priorities are anchored by five pillars. First, growing our installed base at a double-digit compound rate; second, scaling a world-class go-to-market organization; third, infusing our platform with data, analytics, and AI; fourth, simplifying our hardware architecture while investing in next-generation capabilities; and fifth and finally, strengthening our internal operating rigor to drive sustainable profit and free cash flow. I believe our second quarter results clearly demonstrate the value creation opportunities inherent in our growing market leadership and aggressive execution of Vision 2028. I will now take a couple of minutes to summarize key proof points highlighted in our second quarter results. First, we accelerated revenue and bookings growth attributable to our best-in-class IoT, access control and self-guided tour solutions. Our core revenues grew 14%, marking our highest quarterly growth rate in over 2 years. This double-digit growth builds on our progress from the fourth quarter of 2025 when core revenues grew 12%. SaaS revenues in Q2 grew 13% and now represent more than 40% of total revenue. ARR increased year-over-year from $57 million to $65 million, reflecting continued expansion of our IoT footprint and increased demand for highly regarded access control and self-guided tour offerings. In the second quarter, we expanded our installed IoT footprint by 10% to nearly 930,000 units. On a trailing 12-month basis, units booked accelerated from 80,000 in the second quarter of last year to over 112,000 this quarter, which is a 40% increase. Given the significant acceleration of units booked over the last 12 months, I believe we're in a strong position to exceed 1 million units installed during the first half of next year. The scaling of our installed base beyond 1 million units should create a new inflection point for our business from both a growth and a profitability standpoint. In addition to expanding our unit footprint, we are also investing in our data and analytics solutions, which leverage our network of millions of connected devices through investments such as the planned launch of the SmartRent Innovation Center and our recently announced strategic collaborations with Hexaware and Databricks. As we look forward, we will continue to actively pursue opportunities to expand our footprint and our solutions that drive measurable returns for our customers. A key example is our upcoming launch of a dedicated data and analytics practice. With millions of connected devices across our network, I believe SmartRent is uniquely positioned to translate real-time data into actionable insights, which will power ROI for our customers across such areas as energy efficiency, water conservation, and risk management. To power this practice, we are anchoring our tech stack on industry-leading platforms, including Databricks as a core component of our technology layer. A high-impact data and analytics practice represents a sizable strategic tailwind opportunity for SmartRent. By layering high-value insights powered by our unmatched device footprint, we anticipate being able to expand our total addressable market, drive ARPU growth, and deepen our competitive moat. We believe that we've never been better positioned to execute on the opportunities ahead. In addition to accelerating top-line growth, we improved gross margins by 760 basis points to 41% in the second quarter. Our margin improvement reflects the dual benefits of our ongoing focus on revenue acceleration and structural cost reduction programs. Looking ahead, our recently announced partnership with Hexaware is expected to contribute to additional margin expansion while accelerating the deployment of AI tools in our operating processes. We are continuing to progress towards consistently positive adjusted EBITDA and free cash flow. Higher revenues, including increased SaaS contributions, as well as our focus on operational rigor is fueling our rapid progress. Q2 was our third consecutive quarter of positive adjusted EBITDA. As Daryl will discuss in more detail in a few minutes, we continue to maintain a fortress balance sheet that provides significant financial flexibility to fund our Vision 2028 priorities. During the second quarter, we deployed a portion of our cash war chest to repurchase 1.5% of our outstanding shares. We also recently expanded our share repurchase authorization to $25 million to support future repurchases as warranted. I believe the second quarter provides many clear proof points of our progress, both strategically and operationally. Over the last several quarters, we have demonstrated our ability to deliver accelerating growth as well as expanding margins and profitability while maintaining significant capital reserves. As the trusted partner to over 600 multi- and single-family rental owners and operators, SmartRent is the clear, proven choice for any owner or operator that is looking to adopt and reap the benefits of smart home technology. In conclusion, I want to thank our employees for driving rapid and positive progress against our Vision 2028 priorities and pillars, and our shareholders for their continued support. I will now turn the floor over to Daryl. Daryl Stemm: Thank you, Frank, and good morning, everyone. Total revenue for the second quarter was $40 million, up 4%, and core revenue, which excludes noncash hub amortization, was $38 million, up 14%. We continue to believe core revenue is the more representative measure of the underlying volume of our business. Digging deeper within the revenue mix, SaaS revenue grew 13% to $16 million, representing more than 40% of total revenue, and ARR increased to approximately $65 million. ARR growth is primarily attributable to the continued expansion of our installed base, and increased adoption of access control and self-guided tour solutions. Hardware revenue was $14 million, down 10%. Professional services revenue was $9 million, up 100%, reflecting increased hardware refresh installations as well as higher access control volume, which drive growth in professional services ARPU. I'd like to spend a few minutes on bookings. Units booked totaled more than 48,000 in the quarter. And as Frank mentioned, on a trailing 12-month basis, units booked increased 40% to approximately 112,000 units. Bookings for individual quarters can be nonlinear. We have a long sales cycle and the timing of customer decisions and orders doesn't always align with our reporting periods. As a result, we're increasingly focused on trailing 12 months units booked, which we believe provides a more meaningful view of underlying customer demand and the progress we're making in executing our go-to-market strategy. We're becoming a full-cycle hardware-enabled technology company. As our platform continues to expand and our installed base matures, the composition of our bookings naturally evolves. Historically, units deployed has been our primary revenue driver. However, hardware refreshes, subscription renewals and adoption of additional solutions such as access control and self-guided touring are becoming increasingly meaningful to our business. Different solutions carry different equipment and installation requirements and ARPU characteristics. All of these factors result in variability in both bookings and ARPU. For example, second quarter bookings were more heavily weighted towards IoT solutions, which led to a lower ARPU. As our business evolves beyond primarily new IoT deployments to supporting customers throughout the life cycle of their communities, we expect the mix of bookings to continue to fluctuate. I believe, viewed together, continued core revenue growth, accelerating trailing 12-month bookings, and expanding ARR provide three complementary indicators that demand for our platform remains healthy and that the underlying fundamentals of the business continue to strengthen. Total gross margin expanded to 41% in the second quarter, up 760 basis points. SaaS gross margin expanded to 75%, up from 70% a year ago, as a result of ARPU growth and continued cost discipline. Professional services gross margin improved dramatically to 21% compared with a negative 44%, reflecting continued operational improvements. Hardware gross margin was 13% compared to 15%, primarily reflecting changes in mix. Operating expenses were $23 million in the second quarter, down 7% from $24 million, reflecting the continued benefit of our productivity initiatives. Net loss was $6 million, an improvement of $5 million or 48%. Adjusted EBITDA was $700,000, our third consecutive quarter of positive adjusted EBITDA. We ended the quarter with $93 million in cash, no debt, and an undrawn $75 million credit facility. We repurchased about 3 million shares, or approximately 1.5% of shares outstanding, at an aggregate cost of $3 million during the quarter. Subsequent to quarter end, our Board expanded our share repurchase plan with an authorization to repurchase up to $25 million. With our strong balance sheet and improving financial results, we will continue to evaluate capital allocation opportunities, including share repurchases through the lens of building long-term shareholder value. As Frank mentioned, we remain focused on accelerating revenue growth, while delivering adjusted EBITDA profitability. As we look ahead to the balance of the year, we continue to believe our revenue, profitability and cash flow in the second half of 2026 will be stronger than the first. That confidence is supported by three factors. First, strength in trailing 12-month units booked; second, sustainable margin expansion driven by operational improvements; and third, continued growth of our installed base and recurring revenue. And with that, I'll turn the call back over to the operator for questions. Operator: [Operator Instructions] Your first question comes from the line of Ryan Tomasello with KBW. Your line is now open. Please go ahead. Ryan Tomasello: Congrats on the solid execution in the quarter. In terms of bookings, I appreciate the commentary in the prepared remarks, but if you can just put a finer point on maybe some specific factors you'd attribute that strong result to in the quarter. Any large outsized deals or seasonal factors to call out? And in terms of the second half of the year, if there's any guardrails you could provide around the trajectory of unit deployments and bookings and just how we should be thinking about the flow-through and timing of bookings to actual unit deployments? Frank Martell: Hey, Ryan, this is Frank. I think it's probably a two-part question. So I'll handle the first part and then Daryl can jump in on the other comment. But -- yes, look, I think as Daryl mentioned in his script, there's not a linear orders -- unit orders are not linear. And this set really covers IoT unit orders. And so we have timing issues. We have larger orders and smaller orders. So this happened to be -- there's a couple of orders that we've been working on for some period of time, and they happen to fall in the second quarter. So we saw an uptick in the velocity, but it's more of a timing issue. And obviously, I talked last quarter about investing in our sales team and our go-to-market motion, and we're definitely getting traction there as well. So we're seeing more opportunities and we're closing more opportunities. So we thought it was better to go to kind of a TTM, trailing 12-month view, because it shows the trend, which is more representative of what we're going to see through the P&L. So it was a couple of solid orders in addition to the other orders that were in the quarter and the things that kind of moved timing-wise that came to pass in the second quarter. The only other thing I will mention is a very important point that Daryl raised in his prepared remarks, which is we are seeing a lot more orders for things like access control and SGT. And those are higher margin and a very good expansion of our footprint. And so we're excited about that because it has margin potential for us as we get in the second half of the year and especially as we go forward. So that's been evolving quite nicely in addition to IoT unit orders and hardware orders. Daryl Stemm: Yes, thanks. Thanks for your questions, Ryan. With regards to volume of deployments in the back half of the year, I would point you really to the TTM units booked in particular. Recent quarters, we've been running plus or minus about 20,000 units deployed in a quarter. I think that the TTM number, if you were to normalize that to a monthly basis, that would be a pretty good proxy for looking forward. Although I would caution you to attribute a full swing from 20,000 to close to 30,000 units, I wouldn't expect it to all occur in Q3. Ryan Tomasello: Okay. And then it sounds like you're optimistic about the initiatives you have underway to support the data and analytics build-out. If you can just elaborate on what exactly you're working on there. Do you envision that unlocking monetization opportunities outside of your existing IoT customers? Or is this more focused on add-on for the existing installed base? And then in terms of the investment cycle there, if we should expect to feel this in the P&L and just overall from a timing standpoint, how you're thinking about the build-out there. Frank Martell: Yes. Let me just talk about the installed base really quickly, Ryan, because we put out a bogey of getting over 1 million, march to 1 million installed IoT units. I think the results this quarter and the order book clearly supports us achieving that within the targeted time frame of early next year. That's an important milestone because it reflects a little bit of an inflection point from a financial modeling point of view, because obviously the bigger the footprint is, the more software spends around it and that will have a margin improvement, et cetera. So I think that's an important thing to note and I think it is materializing and we feel great about that. Secondarily to your question, so, we actually announced in the public market two partnerships, one with Hexaware and one with Databricks. And I think, we're trying to bring in really first-class partnerships to help us with operating leverage and help us with technology velocity. And so those two, I'll take them just in order. So Hexaware, we brought in, they're really a BPO play. They're an AI-forward BPO player. They're going to help us to build our operating leverage. So when we get the volume up, we'll be able to drop more of that to the bottom line using them as first of all as a workforce, but also ingesting more AI into our process margins. So that's more of an enabler. Regarding Databricks, so one of the things that we've tried to do, and frankly, we haven't done as great a job as we could have, but now it's an integral part of our Vision 2028, which is the -- taking all these devices and providing more insight to our customers. So -- yes, we have the ability to do that, but we need the partner to jump start the infrastructure required to have a data and analytics business. I came from several of them. And so it's a lot of -- you have to build out the capability because it's kind of real-time insight that you're providing. And in our case, the good news is, the customers, it's real ROI-building insight. And it's about temperature management and it's about risk management. And these are things that really add to our customers' bottom line. And so we expect a repeatable data and analytics business to be a sizable part of our revenue stream in the coming years. And so that's really an enabler that helps us to get there. And we feel very great about that. There's a lot of opportunity for the company as we expand the footprint for sure. Ryan Tomasello: And then I'll just squeeze in two more here, if you don't mind. If you can just give us an update on how renewal pricing is trending with the legacy customer cohorts that you've called out as an opportunity and how much longer that renewal cycle will take to play out? And then on the macro front, any updates on what you're hearing from customers around budget tightening and CapEx plans entering next year? Daryl Stemm: Yes, you're welcome. Why don't I start by responding to the renewal progress. So we talked last quarter about some negotiations for renewals that have been completed. And we mentioned at that time that by the end of this year, we expect to be benefiting to the tune of approximately $0.05 per unit per month. That equates to about $50,000 roughly per month of incremental revenue. An important thing to note about these renewals is most of our customers deployed to their communities over multiple years. So that $0.05 continues to grow in the following couple of years for two reasons. Number one, more and more of their units will have -- or communities will have had their original subscriptions expire and they'll move to the new rates. And then additionally, these renegotiations and renewals included escalation clauses in future periods. So we'll continue to enjoy expanded benefit beyond just this year. In addition to that, I guess the other part of that question was, when do we expect that cycle to end? And the simple answer is, I hope it never ends because we're continuing to expand our installed base and as communities have their original subscriptions expire, we'll have renewal discussions on an ongoing basis. And it's really that we're just now entering a new cycle for the company where not only renewals, but also hardware refreshments become an important and regular and again, we hope never-ending annuity for the company's revenue streams. And I'll turn the call over to Frank, perhaps, to give a comment or two on the macro conditions. Frank Martell: Yes. Look, I would say that, obviously, our bookings velocity is improving, and so we're having the discussions. I think the company is in a strong position financially. And I think we're executing on our plan, our strategic plan, and what we commit to do pretty well. So I think there's less friction with the customer base than there was maybe a year or 2 ago. I think that's allowing us to have more discussions. And what I would say is bigger discussions about a more fulsome solution set for the customers. So I think from that point of view, they may have their individual pressure points. I wouldn't say that the market is super easy right now. But I think in terms of SmartRent and the engagement with SmartRent, I think most people see the ROI. A lot of it's kind of arithmetic, frankly. But I think our growing financial strength and our growing footprint means we are a very, very credible counterparty, and that's allowing us to have at the highest levels bigger discussions and more discussions. And so that bodes well. As Daryl said, I think we have other opportunities, and I think that's what's emerging is things like there will be, because we have over 1 million units installed coming next year, that creates an annuity stream in terms of replacement of aged hardware, as well as just the discussion around data analytics, and as well as other solutions that will come online. So we're having more discussions than I think we ever had. We've ramped up the sales team. We have a channel partnership program that's going to build. So we have a lot of things going on in terms of our engagement infrastructure. And frankly, all the entire leadership team, including myself, is personally engaged in a lot of these discussions with the customers. Operator: There are no further questions at this time. This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in SmartRent, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SmartRent wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. SmartRent (SMRT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in SmartRent, Inc.? Here are five stocks we like better. Core revenue growth accelerated: SmartRent’s second-quarter revenue rose 4% to $40 million, while core revenue increased 14% to $38 million. SaaS revenue grew 13% to $16 million, lifting annual recurring revenue to approximately $65 million, although hardware revenue declined 10%. Bookings, installed units and profitability improved: Trailing-12-month bookings rose 40% to about 112,000 units, and the installed base grew 10% to nearly 930,000. Gross margin expanded to 41%, adjusted EBITDA was positive for the third consecutive quarter, and the company reduced its net loss by 48% year over year. Management sees additional growth opportunities: SmartRent plans to build data, analytics and AI capabilities through partnerships with Databricks and Hexaware, while subscription renewals and pricing escalators are expected to increase revenue. The company ended the quarter with $93 million in cash, no debt and an expanded $25 million share-repurchase authorization. 3 Stocks Where Insiders Are Buying, Not Bailing SmartRent (NYSE:SMRT) reported second-quarter results marked by accelerating core revenue growth, higher recurring software revenue and expanded margins, as the smart-home technology provider continued to execute its Vision 2028 strategy. President and Chief Executive Officer Frank Martell said the company’s plan is centered on expanding its installed base, scaling its go-to-market organization, developing data, analytics and artificial intelligence capabilities, simplifying hardware and improving operating discipline. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling “By almost every measure, SmartRent delivered strong progress in the second quarter,” Martell said, pointing to growth in bookings, installed units, annual recurring revenue and profitability. Total revenue was $40 million, up 4% from the year-earlier period. Core revenue, which excludes non-cash hub amortization and which management said better represents underlying business volume, rose 14% to $38 million. Martell said it was the company’s highest quarterly core-revenue growth rate in more than two years. → No Hangover: Revisiting Microsoft One Week After Earnings SaaS revenue increased 13% to $16 million and represented more than 40% of total revenue. Annual recurring revenue rose to approximately $65 million from $57 million a year earlier, driven by the expansion of the company’s installed base and increased adoption of access-control and self-guided-tour products. Hardware revenue declined 10% to $14 million. Meanwhile, professional services revenue doubled to $9 million, reflecting greater hardware-refresh installation activity and higher access-control volume, according to Chief Financial Officer Daryl Stemm. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Stemm said SmartRent is evolving into a “full-cycle, hardware-enabled technology company,” with revenue increasingly supported not only by new deployments but also by hardware refreshes, subscription renewals and add-on solutions. Because individual products have different equipment, installation and average-revenue-per-unit characteristics, the company expects booking and ARPU mixes to fluctuate. Total revenue: $40 million, up 4% Core revenue: $38 million, up 14% SaaS revenue: $16 million, up 13% Annual recurring revenue: approximately $65 million Professional services revenue: $9 million, up 100% SmartRent booked more than 48,000 units during the quarter. On a trailing 12-month basis, units booked increased 40% to approximately 112,000, compared with 80,000 in the comparable period a year earlier. The company’s installed Internet of Things footprint grew 10% to nearly 930,000 units. Martell said the pace of orders supports SmartRent’s objective of surpassing 1 million installed units in the first half of 2027. Management emphasized that quarterly bookings can be uneven because of the company’s lengthy sales cycle and the timing of customer purchasing decisions. Martell told analysts that a couple of larger orders that had been under discussion for some time fell into the second quarter, while the company also saw greater traction from investments in its sales organization and broader go-to-market efforts. Stemm said recent quarterly deployments have been roughly 20,000 units per quarter and suggested the trailing-12-month bookings trend offers a more useful forward indicator than any individual period. He cautioned, however, against assuming a full increase from 20,000 to nearly 30,000 units would occur immediately in the third quarter. Total gross margin expanded 760 basis points to 41%. SaaS gross margin increased to 75% from 70% a year earlier, which Stemm attributed to ARPU growth and cost discipline. Professional-services gross margin improved to 21% from negative 44%, while hardware gross margin was 13%, down from 15%, primarily because of changes in mix. Operating expenses declined 7% to $23 million. SmartRent reported a net loss of $6 million, an improvement of $5 million, or 48%, from the prior-year period. Adjusted EBITDA was positive $700,000, representing the company’s third consecutive quarter of positive adjusted EBITDA. Martell said revenue growth, a greater SaaS contribution and structural cost-reduction efforts are helping move the company toward consistent adjusted EBITDA profitability and free cash flow. SmartRent plans to launch a dedicated data and analytics practice, supported in part by its collaboration with Databricks. Martell said the company intends to use information generated by its network of connected devices to provide customers with insights related to energy efficiency, water conservation, temperature management and risk management. He said the company expects a repeatable data and analytics business to become a meaningful contributor to revenue in coming years, potentially increasing ARPU and expanding SmartRent’s addressable market. The company also announced a partnership with Hexaware, which Martell described as an AI-forward business process outsourcing provider intended to support operating leverage and greater use of AI in SmartRent’s processes. On renewals, Stemm said previously completed negotiations are expected to contribute approximately $0.05 per unit per month by the end of 2026, or roughly $50,000 of incremental monthly revenue. He said the benefit should continue to grow as additional communities reach the end of their original subscription periods and move to updated pricing, including escalation clauses. SmartRent ended the quarter with $93 million in cash, no debt and an undrawn $75 million credit facility. During the quarter, the company repurchased about 3 million shares, or approximately 1.5% of shares outstanding, for $3 million. After quarter-end, the board expanded its repurchase authorization to up to $25 million. Looking ahead, Stemm said SmartRent expects revenue, profitability and cash flow in the second half of 2026 to exceed first-half levels, supported by stronger trailing-12-month bookings, operational improvements and continued growth in the installed base and recurring revenue. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "SmartRent Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Total Revenue: $40 million, up 4% year over year. Core Revenue: $38 million, up 14% year over year. SaaS Revenue: $16 million, up 13% year over year, representing more than 40% of total revenue. Hardware Revenue: $14 million, down 10% year over year. Professional Services Revenue: $9 million, up 100% year over year. Annual Recurring Revenue (ARR): Increased to approximately $65 million from $57 million in the prior year. Total Gross Margin: Expanded to 41%, up 760 basis points year over year. SaaS Gross Margin: Expanded to 75%, up from 70% a year ago. Professional Services Gross Margin: Improved to 21%, compared with a negative 44% in the prior year. Hardware Gross Margin: 13%, compared to 15% in the prior year. Operating Expenses: $23 million, down 7% from $24 million in the prior year. Net Loss: $6 million, an improvement of $5 million or 48% year over year. Adjusted EBITDA: Positive at $700,000, marking the third consecutive quarter of positive adjusted EBITDA. Cash Position: Ended the quarter with $93 million in cash, no debt, and an undrawn $75 million credit facility. Installed IoT Footprint: Expanded by 10% to nearly 930,000 units. Units Booked (Trailing 12-Month): Increased 40% to approximately 112,000 units. Share Repurchases: Repurchased approximately 3 million shares (about 1.5% of shares outstanding) at an aggregate cost of $3 million during the quarter. Warning! GuruFocus has detected 3 Warning Signs with SMRT. Is SMRT fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Core revenue grew 14% year-over-year, the highest quarterly growth rate in over two years, with SaaS revenue up 13% to represent over 40% of total revenue. Trailing 12-month units booked surged 40% to approximately 112,000 units, positioning the company to exceed 1 million installed units in the first half of next year. Gross margin expanded by 760 basis points to 41%, driven by operational improvements and a higher-margin SaaS mix, with SaaS gross margin up to 75%. Adjusted EBITDA turned positive for the third consecutive quarter, reaching $700,000, while net loss improved by 48% year-over-year. The company maintains a fortress balance sheet with $93 million in cash, no debt, and an undrawn $75 million credit facility, supporting share repurchases and strategic investments. Strategic partnerships with Hexaware and Databricks are expected to drive further margin expansion and enable a new data and analytics practice, expanding the total addressable market. Hardware revenue declined 10% year-over-year, reflecting a shift in bookings mix toward IoT solutions with lower ARPU. Second-quarter bookings were heavily weighted toward IoT solutions, leading to lower ARPU and potential revenue variability. Professional services gross margin, while improved, remains low at 21%, indicating ongoing operational challenges in that segment. The company's reliance on non-linear bookings and long sales cycles creates uncertainty in quarterly revenue predictability. Despite progress, the company still reported a net loss of $6 million, indicating that profitability is not yet fully realized. The data and analytics practice is still in early stages, with investments expected to impact the P&L before generating meaningful revenue. Q: Can you elaborate on the factors driving the strong bookings result in the quarter, and what guardrails can you provide for the trajectory of unit deployments and bookings in the second half of the year? A: Frank Martell (CEO) explained that unit orders are not linear and that a couple of large orders that had been in the pipeline for some time closed in Q2, alongside increased traction from investments in the sales team. He noted a growing mix of higher-margin orders for access control and self-guided tours. Daryl Stemm (CFO) added that recent quarters have seen roughly 20,000 units deployed per quarter, and while the trailing 12-month bookings number suggests a higher run rate, he cautioned against expecting the full swing to occur in Q3. Q: What exactly are you working on with the data and analytics build-out, and do you envision unlocking monetization outside of your existing IoT customers or as an add-on for the installed base? What is the investment cycle and timing? A: Frank Martell (CEO) stated that the partnerships with Hexaware and Databricks are key enablers. Hexaware is an AI-forward BPO partner that will help build operating leverage and drop more volume to the bottom line. Databricks will jumpstart the infrastructure needed to turn the device network into a data and analytics business, providing real ROI for customers in areas like temperature and risk management. He expects this to become a sizable, repeatable revenue stream in the coming years. Q: Can you provide an update on how renewal pricing is trending with legacy customer cohorts and how much longer that renewal cycle will take to play out? A: Daryl Stemm (CFO) confirmed that by the end of this year, the company expects to benefit from approximately $0.05 per unit per month in incremental revenue from completed renewals, equating to roughly $50,000 per month. He noted that the benefit will continue to grow over the next couple of years as more units come up for renewal and as new contracts include escalation clauses. He emphasized that this is an ongoing, never-ending cycle as the installed base expands and hardware refreshes become a regular annuity stream. Q: What are you hearing from customers regarding budget tightening and CapEx plans entering next year? A: Frank Martell (CEO) said that bookings velocity is improving and there is less friction with the customer base than a year or two ago. While the market isn't "super easy," customers see the ROI, and SmartRent's growing financial strength and footprint make it a credible counterparty. This is leading to bigger and more frequent discussions at the highest levels, including opportunities around hardware replacement annuities and data analytics. Q: Can you put a finer point on the strong bookings result, specifically any large outsized deals or seasonal factors? A: Frank Martell (CEO) reiterated that the strong quarter was due to a couple of large orders that had been worked on for some time falling into Q2, combined with better traction from the go-to-market strategy. He emphasized that the shift to a trailing 12-month view provides a more representative trend of what will flow through the P&L. Q: How should we think about the flow-through and timing of bookings to actual unit deployments? A: Daryl Stemm (CFO) suggested that normalizing the trailing 12-month units booked number to a monthly basis is a good proxy for looking forward, though he cautioned that the full swing from 20,000 to nearly 30,000 units per quarter should not be expected to occur all at once in Q3. Q: What is the significance of reaching 1 million installed units, and how does that impact the financial model? A: Frank Martell (CEO) stated that the strong order book supports achieving the 1 million installed IoT units milestone early next year. This is an important inflection point because a larger footprint generates more software revenue around it, leading to margin improvement and a stronger financial model. Q: Can you provide more detail on the strategic partnerships with Hexaware and Databricks and their expected impact? A: Frank Martell (CEO) explained that Hexaware is a BPO play to help build operating leverage and ingest more AI into process margins, while Databricks is a core component of the technology layer to power the new data and analytics practice. These partnerships are designed to accelerate technology velocity and expand the total addressable market. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Accelerating Revenue Growth Trend Supports March to One Million Installed Units Improving Profitability Powers Investment in Growth and Capital Returns PHOENIX, August 05, 2026--(BUSINESS WIRE)--SmartRent, Inc. (NYSE: SMRT) ("SmartRent" or the "Company"), the market leading provider of innovative technology, data, and workflow solutions for the rental housing industry, today reported financial results for the three months ended June 30, 2026. Second Quarter 2026 Highlights Revenue Growth Total Revenue of $39.8 million, up 4% from the prior year. Core Revenue totaled $38.4 million, up 14%. Annual Recurring Revenue ("ARR") increased by 13% to $64.5 million, representing 40% of Total Revenue. Units Booked for the trailing twelve-months increased by 40% to 112,560. Units Booked in the second quarter totaled 48,254, up 98%. Total Units Deployed as of June 30, 2026, totaled 929,487 Units, up 10%. Increased Profitability and Margin Expansion Gross Margin aggregated 40.7%, up 760 basis points, marking the third consecutive quarter of gross margin expansion. Adjusted EBITDA totaled $0.7 million, an $8.0 million improvement from a prior year loss of $7.3 million, the Company's third consecutive quarter of positive Adjusted EBITDA. Net loss improved by $5.3 million, or 48%, to $6 million, reflecting the benefits of higher revenues and lower costs. Strong Liquidity and Disciplined Capital Allocation SmartRent ended the quarter with $92.7 million in cash on hand, and an undrawn $75 million credit facility. During the second quarter, the Company repurchased 2.8 million of its common shares, or 1.5% of shares outstanding. On July 24, the Board of Directors approved an expanded share repurchase plan with an authorization of up to $25 million. "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," commented Frank Martell, President and Chief Executive Officer of SmartRent. "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." Martell added, "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." Chief Financial Officer Daryl Stemm added, "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. Stemm continued, "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." Second Quarter 2026 Results Summary Core Revenue for the second quarter of 2026 was $38.4 million, an increase of approximately 14% from $33.7 million in the second quarter of 2025, reflecting increased volume of bookings and continued growth in the Company's installed base. Total Revenue was $39.8 million, an increase of approximately 4% from $38.3 million in the second 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. Hosted services revenue totaled $17.6 million comprised of $16.1 million in SaaS revenue (40% of Total Revenue) and $1.5 million of hub amortization. SaaS Revenue grew 13%, driven by continued expansion of our installed base and adoption of Access Control and Self-Guided Tour ("SGT") solutions. Hardware revenue was $13.6 million, down 10%, from $15.1 million in the prior year quarter. Professional services revenue was $8.6 million, up 100%, from $4.3 million in the prior year, primarily driven by increased hardware refresh installations, as well as higher Access Control volume, which contributed to growth in professional services Average Revenue Per Unit ("ARPU"). Annual Recurring Revenue increased 13% year over year to approximately $64.5 million, primarily driven by expansion of our installed base. ARPU trends reflected continued stability within the installed base and adoption of Access Control and SGT solutions. SaaS ARPU was $5.84 in the second quarter of 2026 compared to $5.66 in the second quarter of 2025. As of June 30, 2026, Units Deployed reached 929,487, an increase of 10% with 81,531 more units compared to June 30, 2025, reflecting continued customer demand and progress toward the Company's goal of one million installed units in the first half of 2027. The Company had 18,857 New Units Deployed during the quarter, compared with 21,068 New Units Deployed in the prior year. Trailing twelve-month Units Booked increased 40% year over year to 112,560 units, reflecting sustained momentum in sales execution consistent with the Company's Vision 2028 priorities. Total gross profit for the second quarter of 2026 was $16.2 million, compared to $12.7 million in the second quarter of 2025, with total gross margin expanding 760 basis points to 40.7% from 33.1% in the prior year second quarter. The improvement reflects the structural cost reduction actions taken in the second half of 2025, improved operating discipline and an increased level of SaaS revenue. SaaS gross profit was $12.1 million, an increase of 22% year over year, and SaaS gross margin expanded to 75.3%, reflecting the positive impact and continuing benefits of operating leverage. In the second quarter of 2026, operating expenses were $22.7 million, a 7% decrease from $24.4 million in the same quarter from the prior year. Net loss improved by $5.3 million or 48%, to $5.6 million, from $10.9 million in the same quarter prior year. Adjusted EBITDA improved meaningfully by 110% to $0.7 million for the second quarter 2026, from a loss of $7.3 million in the same quarter prior year. The Company ended the quarter with a cash balance of approximately $93 million, no debt and an undrawn $75 million credit facility. During the second quarter of 2026, the Company repurchased 2.8 million shares, or 1.5% of shares outstanding, at an aggregate cost of $3.4 million. On July 24, the Board of Directors approved an expanded share repurchase plan with an authorization of up to $25 million, and concurrently canceled the Company's prior share repurchase plan which had a remaining authorization of $13.4 million. Conference Call Information SmartRent is hosting a conference call today, August 5, 2026, at 11:30 a.m. ET to discuss its financial results. To join the call, please register on the Company’s investor relations website here. A copy of the Company's earnings presentation is available on the Investor Relations section of SmartRent’s website. About SmartRent Founded in 2017, SmartRent, Inc. (NYSE: SMRT) is a leading provider of smart communities solutions and smart operations solutions to the rental housing industry. SmartRent’s end-to-end ecosystem powers smarter living and working in rental housing by automating operations, protecting assets, reducing energy consumption and more. The Company’s differentiators - purpose-built software and hardware, and end-to-end implementation and support - create an exceptional experience, with 15 of the top 20 multifamily operators and millions of users leveraging SMRT solutions daily. For more information, please visit smartrent.com. Forward-Looking Statements This press release contains forward-looking statements which address the Company's expected future business and financial performance and results, areas of focus, including our operations, approach to operational and financial discipline, cost reduction, expected growth, strategy, performance, financial review, product portfolio enhancements, strategic collaborations, expansion plans, and other future events and forward-looking statements. Forward-looking statements may contain words such as "goal," "target," "future," "estimate," "expect," "anticipate," "intend," "plan," "believe," "seek," "project," "may," "should," "will" or similar expressions. Examples of forward-looking statements include, among others, statements regarding the expected financial results, product portfolio enhancements, expansion plans and opportunities and earnings guidance related to financial and operational metrics. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Some of the factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include, among other things, our ability to: (1) accelerate adoption of our products and services; (2) anticipate the uncertainties inherent in the development of new business lines and business strategies; (3) manage risks associated with our third-party suppliers and manufacturers and partners for our products; (4) manage risks associated with adverse macroeconomic conditions, including inflation, slower growth or recession, barriers to trade, changes to fiscal and monetary policy, tighter credit, higher interest rates, high unemployment, and currency fluctuations; (5) attract, train, and retain effective officers, key employees and directors and manage risks associated with the leadership transition; (6) develop, design, manufacture, and sell products and services that are differentiated from those of competitors; (7) realize the benefits expected from our acquisitions; (8) acquire or make investments in other businesses, patents, technologies, products or services to grow the business; (9) successfully pursue, defend, resolve or anticipate the outcome of pending or future litigation matters; (10) comply with laws and regulations applicable to our business, including privacy regulations; (11) realize the benefits expected from our stock repurchase program; and (12) maintain key strategic relationships with partners and distributors. The forward-looking statements herein represent the judgment of the Company, as of the date of this release, and SmartRent disclaims any intent or obligation to update forward-looking statements. This press release should be read in conjunction with the information included in the Company's other press releases, reports and other filings with the SEC. Understanding the information contained in these filings is important in order to fully understand the Company's reported financial results and our business outlook for future periods. Use of Non-GAAP Financial Measures In addition to disclosing financial results that are determined in accordance with GAAP, SmartRent also discloses certain non-GAAP financial measures in this press release, including EBITDA, Adjusted EBITDA and Core Revenue. These financial measures are not recognized measures under GAAP and should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. All historic non-GAAP financial measures have been reconciled with the most directly comparable GAAP financial measures - these non-GAAP financial measures are not intended to supersede or replace our GAAP results. We define EBITDA as net income (loss) computed in accordance with GAAP before interest income, net, income tax expense (benefit) and depreciation and amortization. We define Adjusted EBITDA as EBITDA before expenses related to non-recurring legal matters, stock-based compensation expense, impairment of investment in non-affiliate, goodwill impairment, non-recurring warranty provisions, other acquisition expenses, and other expenses caused by non-recurring, or unusual, events that are not indicative of our ongoing business. We define Core Revenue as total revenue excluding hub amortization. EBITDA, Adjusted EBITDA and Core Revenue may be determined or calculated differently by other companies. Reconciliations of these non-GAAP measures to the most directly comparable GAAP financial measures have been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliations. EBITDA, Adjusted EBITDA and Core Revenue are not used as measures of SmartRent’s liquidity and should not be considered alternatives to net income or loss or any other measure of financial performance presented in accordance with GAAP. SmartRent’s management uses EBITDA and Adjusted EBITDA in a number of ways to assess the Company’s financial and operating performance and believes that these measures provide useful information to investors regarding financial and business trends related to SmartRent’s results of operations. EBITDA and Adjusted EBITDA are also used to identify certain expenses and make decisions designed to help SmartRent meet its identified financial and operational goals and to optimize its financial performance, while neutralizing the impact of some expenses included in our operating results which could otherwise mask underlying trends in its business. SmartRent’s management believes that investors are provided with a more meaningful understanding of SmartRent’s ongoing operating performance when non-GAAP financial information is viewed with GAAP financial information. SmartRent's management believes Core Revenue more accurately reflects the underlying volume of the business as it excludes non-cash revenue from hubs shipped in prior years. Financial and Operating Metrics Defined SmartRent regularly monitors several financial and operating metrics including the following which the Company believes are key measures of its growth, to evaluate its operating performance, identify trends affecting its business, formulate business plans, measure its progress, and make strategic decisions. These metrics may not provide accurate predictions of future GAAP financial results. Units Deployed is defined as the aggregate number of Hub Devices that have been installed (including customer self-installations) and have an active subscription as of a stated measurement date. New Units Deployed is defined as the aggregate number of Hub Devices that were installed (including customer self-installations) and resulted in a new active subscription during a stated measurement period. Units Shipped is defined as the aggregate number of Hub Devices that have been shipped to customers during a stated measurement period. Units Booked is defined as the aggregate number of Hub Device units subject to binding orders executed during a stated measurement period that are expected to result in a New Unit Deployed. The Company utilizes the concept of Units Booked to measure estimated near-term resource demand and the resulting approximate range of post-delivery revenue that it will earn and record. Units Booked represent binding orders only. Bookings represent the contract value of hardware, professional services, and the first year of ARR for binding orders executed during a stated measurement period, including renewals and upgrades. Annual Recurring Revenue ("ARR") is defined as the annualized value of our SaaS Revenue earned in the current quarter, which we calculate by taking the total amount of SaaS Revenue in the current quarter and multiplying that amount by four. SaaS Revenue is defined as subscription revenue from fees paid by customers for access to one or more of SmartRent's software applications, including access controls, asset monitoring and related services, and our Community WiFi solution. Average Revenue per Unit ("ARPU") is used to assess the growth and health of the overall business and reflects our ability to acquire, retain, engage and monetize our customers, and thereby drive revenue. ARPU metrics may vary significantly based on scope and mix during the period. Each revenue stream ARPU is calculated as follows: Hardware ARPU is total hardware revenue during a given period divided by the total Units Shipped during the same period. Professional Services ARPU is total professional services revenue during a given period divided by the total New Units Deployed, excluding customer self-installations, during the same period. SaaS ARPU is total SaaS Revenue during a given period divided by the average aggregate Units Deployed in the same period divided by the number of months in the period. Units Booked SaaS ARPU is the first year ARR for binding orders with Units Booked executed during the stated measurement period divided by the total Units Booked in the same period divided by the number of months in the period. Property Net Revenue Retention is defined as SaaS Revenue at the end of the current period related to properties which had SaaS Revenue at the end of the same period in the prior year, divided by SaaS Revenue at the end of the same period in the prior year for those same properties. Property Net Revenue Retention includes additions to revenue from price increases on existing products, additions of new products at existing properties and transfers of ownership, offset by any reductions in revenue caused by cancellations or downgrades. Customer Net Revenue Retention is defined as SaaS Revenue at the end of the current period related to customers which had SaaS Revenue at the end of the same period in the prior year, divided by SaaS Revenue at the end of the same period in the prior year for those same customers. A customer with SaaS Revenue is defined as an entity that has an active subscription during the stated period. Customer Net Revenue Retention includes additions to revenue from transfers of ownership, price increases on existing products and additions of new products at existing properties, offset by any reductions in revenue caused by cancellations or downgrades. Customer Churn is defined as cancelled deployed units during the measurement period divided by Units Deployed as of the beginning of the measurement period. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805694221/en/ Contacts Investor Contact Kelly ReisdorfHead of Investor [email protected] Media Contact Amanda ChavezVice President, Corporate [email protected]

SMRT Holdings Berhad's (KLSE:SMRT) earnings announcement last week didn't impress shareholders. Despite the soft profit numbers, our analysis has optimistic about the overall quality of the income statement. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Many investors haven't heard of the accrual ratio from cashflow, but it is actually a useful measure of how well a company's profit is backed up by free cash flow (FCF) during a given period. The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. The ratio shows us how much a company's profit exceeds its FCF. That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future". Over the twelve months to March 2026, SMRT Holdings Berhad recorded an accrual ratio of -0.26. Therefore, its statutory earnings were very significantly less than its free cashflow. Indeed, in the last twelve months it reported free cash flow of RM38m, well over the RM19.2m it reported in profit. SMRT Holdings Berhad shareholders are no doubt pleased that free cash flow improved over the last twelve months. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Happily for shareholders, SMRT Holdings Berhad produced plenty of free cash flow to back up its statutory profit numbers. Based on this observation, we consider it possible that SMRT Holdings Berhad's statutory profit actually understates its earnings potential! Better yet, its EPS are growing strongly, which is nice to see. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. So while earnings quality is important, it's equally important to consider the risks facing SMRT Holdings Berhad at this point in time. To that end, you should learn about the 3 warning signs we've spotted with SMRT Holdings Berhad (including 2 which are potentially serious). This note has only looked at a single factor that sheds light on the nature of SMRT Holdings Berhad's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

SmartRent’s first quarter performance met Wall Street’s earnings expectations but prompted a significant negative market reaction, driven by concerns around top-line contraction and missed recurring revenue targets. Management highlighted a 10% expansion in its IoT footprint and continued cost alignment, noting that gross margin improved through lower hardware costs and a shift toward higher-margin services. CEO Frank Martell described the period as a “proof point” for SmartRent’s operational discipline, but acknowledged lingering headwinds from cautious customer capital deployment and the impact of contract renewal work on new bookings. Is now the time to buy SMRT? Find out in our full research report (it’s free). Revenue: $38.68 million vs analyst estimates of $38.15 million (6.4% year-on-year decline, 1.4% beat) Adjusted EPS: -$0.02 vs analyst estimates of -$0.01 ($0.01 miss) Adjusted EBITDA: $374,000 vs analyst estimates of $875,500 (1% margin, relatively in line) Operating Margin: -13.2%, up from -99.9% in the same quarter last year Annual Recurring Revenue: $60.9 million vs analyst estimates of $62.97 million (8.9% year-on-year growth, miss) Billings: $29.04 million at quarter end, up 14.9% year on year Market Capitalization: $219.2 million While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Ryan John Tomasello (KBW) asked about initiatives to scale the sales organization, including hiring plans and VAR expansion. CEO Frank Martell explained the company aims to double its sales team and onboard up to ten VAR partners, noting that these changes should improve bookings over the next four quarters. Ryan John Tomasello (KBW) inquired about the impact and scope of legacy contract renewals on pricing and unit coverage. CFO Daryl Stemm stated that roughly one-third of current deployed units are subject to renewal, with initial renewals delivering average price increases of 33%. Ryan John Tomasello (KBW) questioned the sequential decline in ARR and SaaS ARPU despite installed unit growth. Stemm attributed this to higher churn in Smart Operations solutions, partially offset by new deployments, and indicated that further ARPU gains should come through renewals. In the coming quarters, the StockStory team will watch (1) the pace of sales productivity improvements as new hires and VAR partners ramp, (2) the cadence and financial impact of legacy contract renewals on SaaS ARPU, and (3) signs of hardware refresh cycles and AI-driven solution adoption within SmartRent’s installed base. Execution on these fronts will be critical to achieving management’s Vision 2028 ambitions. SmartRent currently trades at $1.13, down from $1.43 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it's flagging for this month - FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.

Achieved a 10% year-over-year expansion of the IoT footprint to 911,000 units, driven by a focus on converting the 85% 'white space' within existing customer portfolios. Delivered a second consecutive quarter of positive adjusted EBITDA, attributed to a 32% reduction in operating expenses and structural process reengineering. Improved gross margins by 630 basis points through aggressive cost alignment and a 15% reduction in cost of sales despite lower total revenue. Initiated a hardware refresh cycle for long-tenured customers as early-generation equipment reaches end-of-life, creating a recurring hardware revenue stream. Launched a Value-Added Reseller (VAR) program to penetrate the small and medium multifamily market in a capital-efficient manner without scaling direct sales headcount. Transitioned professional services from a $3.4 million loss to breakeven, reflecting durable ARPU increases and improved installation execution discipline. Management expects to eclipse the 1 million IoT unit installation milestone in 2027 as part of the 'March to 1 million' initiative. Guidance assumes the second half of 2026 will be stronger than the first as new enterprise sales reps reach full productivity and the VAR channel begins contributing. Full-year expectations include positive adjusted EBITDA and positive free cash flow, viewing Q1 cash use as a seasonal anomaly related to incentive compensation. Non-cash hub amortization revenue is projected to decline to less than $5 million for the full year, which management views as improving the overall quality of the revenue mix. Strategic focus remains on doubling the internal sales team and securing 8 to 10 VAR partners over the next four quarters to accelerate the bookings rate. GAAP net loss narrowed significantly from $40 million to $4 million, primarily due to the absence of a $24.9 million non-cash goodwill impairment charge taken in 2025. Bookings declined 9% year-over-year, which management attributed to cyclical timing issues and sales capacity being diverted to contract renegotiations rather than structural demand loss. The company maintains a strong liquidity position with $99 million in cash and no debt, providing flexibility for the Vision 2028 execution. Management noted that while customers remain cautious due to the macro environment, the ROI of the platform remains a compelling driver for long-term demand. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management plans to double the on-staff sales team, with a 25% headcount increase expected in the next three months. Sales capacity was temporarily constrained by the need to renegotiate legacy 'founder' contracts, a process that is now freeing up resources for new bookings. Approximately 300,000 units (one-third of the installed base) are subject to renewals that aim to bring early-adopter pricing in line with current market rates. Initial renewals have yielded a 33% increase over original pricing, which is expected to contribute a $0.05 per unit per month uplift to SaaS ARPU by year-end. A $0.11 decline in SaaS ARPU was primarily driven by churn in the 'Smart Operations' solution, though IoT-specific solutions continue to see virtually zero churn. Management expects to recover these ARPU losses through the deployment of new units and the ongoing impact of higher renewal rates. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.