SmartRent (SMRT) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 15% YoY to $41.6M and Core Revenue increased 24% to $40.7M; Adjusted EBITDA was positive for a fourth consecutive quarter at $1.1M.

• Gross margin expanded 1,470 bps to 41.2%, while operating cash flow was positive at $2.9M.

• Vision 2028 targets growth and stronger profitability through installed-base expansion, go-to-market improvements, platform integration, hardware simplification and operating rigor.

Financial highlights

• Gross profit increased 79% YoY to $17.1M; operating loss narrowed to $4.8M from $7.0M and net loss narrowed to $3.9M from $6.3M.

• Q3 operating expenses were $21.9M versus $16.6M; excluding a $2.5M prior-year accrual reversal, expenses increased 15%.

• Nine-month revenue increased 4% to $120.1M; net loss was $14.0M versus $57.3M, with the prior-year period including a $24.9M goodwill impairment.

• Q3 diluted loss per share was $0.02 versus $0.03; nine-month loss per share was $0.07 versus $0.30.

Outlook and guidance

• Q4 YoY growth guidance: total revenue 15%–20%, Core Revenue 20%–25%, and Adjusted EBITDA 450%–650%.

• Deployed units reached 941,977 at quarter-end; the target is to exceed 1 million in H1 2027.

• Deployment activity is expected to increase from Q4 into 2027; technology, operations and sales investments are expected to begin yielding revenue, with no specific 2027 trajectory provided.

• Maintenance-solution attrition is expected to persist for a couple more quarters; platform integration and enhancements are expected to benefit results beginning in 2027.

• The $75M revolving facility matures in December 2026, and alternatives for borrowing arrangements are under evaluation; hub-amortization revenue is expected to decline another $2.3M in the remainder of 2026 versus 2025.