SmartRent Core Revenue Growth Accelerates to 24%

The Tip Desk · November 4, 2026 · 3 min read

Core revenue reached $40.7 million in the third quarter, and the company guided fourth-quarter Adjusted EBITDA year-over-year growth of 450% to 650%.

SmartRent, Inc. (SMRT), a building-intelligence provider for rental housing, reported third-quarter 2026 core revenue of $40.7 million, up 24% from $32.8 million a year earlier, after a 14% year-over-year increase in the second quarter. Total revenue was $41.6 million, up 15% from $36.2 million a year earlier.

Gross margin expanded 1,470 basis points to 41.2% from 26.4% in the year-ago quarter, a larger expansion than the 760-basis-point increase to 40.7% in the prior quarter. The company said the improvement reflected cost-reduction initiatives, operating discipline and growth in SaaS revenue.

Adjusted EBITDA was $1.1 million, a $4.0 million year-over-year improvement from a $2.9 million loss, marking a fourth consecutive quarter of positive Adjusted EBITDA. Net loss narrowed 38% to $3.9 million from $6.3 million a year earlier.

Hardware revenue increased 61% to $18.5 million from $11.5 million a year earlier. Hosted services revenue was $16.6 million, including $15.7 million of SaaS revenue that grew 11%. Professional services revenue was $6.5 million, down 8% from $7.0 million a year earlier.

Access Control revenue increased 171% to $4.7 million, including 242% growth in Access Control hardware revenue to $2.5 million. Hardware and installation revenue associated with upgrade and refresh deployments increased approximately 6.3% year-over-year to $2.4 million. Chief Financial Officer Daryl Stemm said the company was seeing expanding adoption of Access Control and Self-Guided Tour solutions alongside demand for equipment upgrades and refreshes.

Units Deployed reached 941,977 as of September 30, 2026, up 8% year over year, after a 10% year-over-year increase as of June 30. Trailing twelve-month Units Booked increased 44% to 122,510. Annual Recurring Revenue increased 11% to $62.9 million. The company said the bookings run-rate supported its objective of surpassing one million installed units during the first half of 2027.

Operating expenses totaled $21.9 million, compared with $16.6 million a year earlier. Excluding a $2.5 million non-recurring accrual reversal that benefited the prior-year period, operating expenses increased approximately 15%. The company said the primary drivers included costs from the 24% increase in Core Revenue and investments to support Vision 2028, including sales-organization expansion and technology and AI-related capabilities. SaaS gross profit increased approximately 17% year-over-year to $11.7 million, and SaaS gross margin expanded to 74.6%.

The company generated positive cash flow from operations of $2.9 million in the quarter and ended with $89.2 million in cash and an undrawn $75 million credit facility. It repurchased 2.5 million common shares, or 1% of shares outstanding, at an aggregate cost of $3.4 million.

For the fourth quarter of 2026, SmartRent provided an outlook of total revenue year-over-year growth of 15% to 20%, Core Revenue growth of 20% to 25%, and Adjusted EBITDA year-over-year growth of 450% to 650%. President and Chief Executive Officer Frank Martell said the third-quarter results were the company’s strongest quarterly financial and operational results in over two years and that the company is approaching an inflection point in scale and its ability to consistently grow revenues and profits.