SmartRent reported third quarter 2026 results that exceeded revenue expectations, led by a 24% year-over-year increase in Core Revenue. The company achieved its fourth consecutive quarter of positive Adjusted EBITDA and significant gross margin expansion, reflecting progress in its "Vision 2028" strategy to pivot toward high-margin software revenue.
Key Highlights
- Gross margin expanded by 1,470 basis points year-over-year to 41.2%, marking the fourth consecutive quarter of expansion.
- Annual Recurring Revenue (ARR) grew 11% to $62.9 million, driven by the adoption of Access Control and Self-Guided Tour solutions.
- Units Booked for the trailing twelve months increased 44% to 122,510, positioning the company to surpass one million installed units in the first half of 2027.
- The company generated $2.9 million in positive cash flow from operations and ended the quarter with $89.2 million in cash.