SmartRent Restores Core Revenue Growth After a Flat First Quarter
Core revenue reached $38.4 million, up 14% from a year earlier, and Adjusted EBITDA was $0.7 million as the company posted a third straight quarter of positive Adjusted EBITDA.
SmartRent, Inc. (SMRT), a provider of technology, data, and workflow solutions for rental housing, reported second-quarter core revenue of $38.4 million, up 14% from a year earlier, after that measure was essentially flat in the first quarter.
Total revenue was $39.8 million, up 4% from $38.3 million a year earlier, reversing the first-quarter 6% year-over-year decline. The company said core revenue, which excludes noncash hub amortization, is the more representative measure of underlying volume.
Annual recurring revenue increased 13% to $64.5 million, up from a 9% year-over-year increase to $60.9 million in the first quarter. ARR represented 40% of total revenue. Hosted services revenue totaled $17.6 million, including $16.1 million of SaaS revenue, up 13%, and $1.5 million of hub amortization. SaaS ARPU was $5.84.
Professional services revenue was $8.6 million, up 100% from $4.3 million a year earlier, with professional services ARPU at $580. The company said the increase was primarily driven by hardware refresh installations and higher access-control volume. Hardware revenue was $13.6 million, down 10% from $15.1 million a year earlier. Hardware units shipped were 23,249, down 12%, with hardware ARPU of $586.
Units booked in the second quarter totaled 48,254, up 98%. Trailing twelve-month units booked increased 40% to 112,560. Units deployed reached 929,487 as of June 30, 2026, up 10% from 847,956 a year earlier. New units deployed were 18,857, down 10% from 21,068.
Gross margin expanded 760 basis points to 40.7% from 33.1% a year earlier, the third consecutive quarter of expansion after a 630-basis-point year-over-year expansion to 39.1% in the first quarter. The company said the improvement reflected structural cost-reduction actions taken in the second half of 2025, improved operating discipline, and a higher level of SaaS revenue. SaaS gross profit was $12.1 million, and SaaS gross margin expanded to 75.3%.
Adjusted EBITDA was $0.7 million, an $8.0 million improvement from a $7.3 million loss a year earlier, the third consecutive quarter of positive Adjusted EBITDA after $0.4 million in the first quarter. Net loss improved 48% to $5.6 million from $10.9 million a year earlier. Operating expenses were $22.7 million, down 7% from $24.4 million a year earlier.
President and Chief Executive Officer Frank Martell said core revenue and ARR were up double digits, reflecting demand for the company’s solutions, its market position, and investments in sales execution. He said the installed IoT footprint now stands at approximately 930,000 units and that, given the uptrend in booked units, the company is in a strong position to exceed one million installed units during the first half of next year.
Chief Financial Officer Daryl Stemm said the company ended the quarter with approximately $93 million in cash, no debt, and an undrawn $75 million credit facility. Cash and cash equivalents were $92.7 million. Stemm said that, with the strength of units booked over the last twelve months and a focus on margin expansion and operational execution, the company believes second-half core revenue and profitability will be substantially stronger than the second half of 2025.
During the quarter, 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 approved an expanded share repurchase plan with an authorization of up to $25 million and canceled a prior plan that had $13.4 million remaining.