Q2 2026 SmartRent Inc Earnings Call Transcript
Key Points
- 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.
Hello, everyone.
Thank you for joining us and welcome to the smart rent second quarter 2026 earnings call. ( Operators Instructions ) I will now hand the conference over to Kelly Risdorf, Head of Investor Relations. Kelly, please go ahead.
Hello, and thank you for joining us today. My name is Kelly Risdorf, Head of Investor Relations for SmartRent. I'm joined today by our President and Chief Executive Officer, Frank Martel, and Darrell Stem, Chief Financial Officer. Before the market opened today, we issued an earnings release and filed our 10-Q with 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
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