SmartRent delivered revenue above Wall Street expectations in the latest quarter, with the market responding positively to the company’s operational progress and margin improvement. Management attributed this performance to accelerated growth in hardware shipments—particularly in Access Control and Self-Guided Tours—and to a larger installed base approaching 1 million units. CEO Frank Martell noted that SmartRent’s focus on integrating hardware with its software platform has improved customer retention and created opportunities for equipment upgrades and refreshes. The shift towards higher-margin solutions and disciplined cost management also contributed to narrowing losses and improved cash generation.
Is now the time to buy SMRT? Find out in our full research report (it’s free for active Edge members).
SmartRent (SMRT) Q3 2026 highlights:
- Revenue $41.57 million vs S&P analysts’ estimates of $40.05 million (14.8% year-on-year growth, 3.8% beat)
- Adjusted EPS -$0.02 vs S&P analysts’ estimates of -$0.01 ($0.01 miss)
- Adjusted EBITDA $1.06 million vs analyst estimates of $678,670 (2.5% margin)
- Operating margin -11.6%, up from -16.1% in the same quarter last year
- Annual recurring revenue $62.9 million (10.5% year-on-year growth)
- Market capitalization $305.6 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.
Our top 5 analyst questions from SmartRent’s Q3 earnings call
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Matthew Mauss (B. Riley Securities) asked about the backlog of booked but not yet installed units and its conversion into deployments. CFO Daryl Stemm explained that recent hardware shipments signal ramping deployments and reiterated the goal to reach 1 million units in the first half of next year.
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Mauss (B. Riley Securities) inquired about the balance between margin expansion and investment under Vision 2028. CEO Frank Martell said current investments are preparatory but will begin contributing to revenue in 2027, with ongoing focus on operational enhancements.
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Mauss (B. Riley Securities) questioned the progress of hardware refreshes for legacy units and customer response to renewal pricing. Martell responded that refresh rates are increasing and are tailored customer by customer, with expectations for this to become a sustained growth driver.
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Ryan Tomasello (KBW) asked for details on Access Control and Self-Guided Tours adoption and ARPU uplift. Stemm described strong demand but variability in ARPU, with larger communities driving higher hardware and software revenue potential.
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Tomasello (KBW) sought clarity on sequential ARR decline and SaaS ARPU trends. Stemm attributed the softness to attrition in maintenance solutions, with expectations for improvement as integration and new deployments ramp up.
Catalysts in upcoming quarters
Our analyst team will be monitoring (1) the pace at which SmartRent approaches and surpasses the 1 million installed unit milestone, (2) the success of integrating maintenance solutions into the core platform and the impact on customer retention, and (3) ongoing adoption rates for Access Control and Self-Guided Tours. Execution on expanding data analytics capabilities and the conversion of bookings into deployments will also be critical markers in assessing future performance.
SmartRent currently trades at $1.63, up from $1.37 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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