SmartRent’s second quarter was met with a positive market reaction, as management highlighted strong execution of its Vision 2028 plan, with particular emphasis on accelerating core revenue growth and expanding gross margins. CEO Frank Martell pointed to the company’s best-in-class IoT, access control, and self-guided tour solutions as primary drivers, noting, “Our core revenues grew 14%, marking our highest quarterly growth rate in over 2 years.” Management also underscored the value of growing its installed base and the shift toward higher-margin SaaS offerings, which now represent over 40% of revenue.
Is now the time to buy SMRT? Find out in our full research report (it’s free for active Edge members).
SmartRent (SMRT) Q2 CY2026 Highlights:
- Revenue: $39.84 million vs analyst estimates of $39.62 million (4% year-on-year growth, 0.6% beat)
- Adjusted EPS: $0 vs analyst estimates of -$0.01 (in line)
- Adjusted EBITDA: $717,000 vs analyst estimates of $97,000 (1.8% margin, relatively in line)
- Operating Margin: -16.2%, up from -30.5% in the same quarter last year
- Annual Recurring Revenue: $64.5 million (13.6% year-on-year growth, beat)
- Billings: $33.23 million at quarter end, in line with the same quarter last year
- Market Capitalization: $270.2 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 Q2 Earnings Call
- Ryan Tomasello (KBW) asked about specific drivers of strong bookings. CEO Frank Martell explained that the quarter benefited from timing of several large orders and increased sales team traction, emphasizing that trailing 12-month metrics better reflect demand trends.
- Ryan Tomasello (KBW) inquired about the company’s data and analytics strategy. Martell outlined upcoming partnerships and the launch of a data business, describing it as an enabler for recurring revenue and customer ROI.
- Ryan Tomasello (KBW) sought clarity on renewal pricing trends with legacy customers. CFO Daryl Stemm noted ongoing negotiations are resulting in higher rates, with escalation clauses extending future benefit over several years.
- Ryan Tomasello (KBW) questioned the impact of macroeconomic conditions on customer budgets. Martell acknowledged some pressure in the market but said SmartRent is having larger, more strategic customer conversations due to its growing credibility.
- Ryan Tomasello (KBW) asked about the timing of hardware refresh cycles. Stemm stated that hardware and subscription renewals are becoming regular, recurring revenue streams as the installed base matures.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) the launch and early adoption of SmartRent’s data and analytics platform, (2) the pace at which the installed device base surpasses one million units—a key milestone for future recurring revenue, and (3) ongoing expansion of SaaS and professional services as the business shifts toward more lifecycle-driven solutions. The ability to sustain margin gains and leverage partnerships will also be critical indicators.
SmartRent currently trades at $1.48, up from $1.05 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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