Key Highlights

  • Quarterly sales came to USD 41.6 million, roughly 14.8% above the prior-year figure of USD 36.2 million on a calculated basis, and hardware income moved up to USD 18.5 million from USD 11.5 million.
  • Gross margin, per management, reached 41% after 26% a year before, and the 10-Q points to Gross Profit of USD 17.1 million, a calculated figure against USD 9.6 million.
  • Net loss narrowed to USD 3.9 million (USD 0.02 a share) from USD 6.3 million (USD 0.03), and adjusted EBITDA swung to a positive USD 1.1 million.
  • About USD 89 million of cash and no Debt was reported at the end of September, and roughly 2.5 million shares were repurchased for USD 3.4 million during the quarter.

Hardware Rebound and Margin Gains Set the Tone

SmartRent (NYSE:SMRT) published third quarter 2026 results on November 4, 2026, alongside its 10-Q. The firm supplies enterprise smart home and access control technology to owners of rental housing, with 941,977 units deployed as of September 30, 2026. Hardware Revenue expanded 61%, helped by access control shipments of USD 2.5 million, up 242%, according to the call. Hosted services sales slid to USD 16.6 million, down from USD 17.7 million, since legacy hub amortization fell to roughly USD 1 million against USD 3 million earlier. Cost of revenue fell to USD 24.5 million from USD 26.6 million, and professional services brought in USD 6.5 million versus USD 7.0 million. Core revenue, which strips out legacy hub amortization, rose 24% to about USD 41 million, management said.

Operating Costs Rise but the Net Loss Narrows

Operating costs moved up to USD 21.9 million, versus USD 16.6 million, and general and administrative spending reached USD 10.8 million, compared with USD 6.1 million. Management noted that the prior-year quarter benefited from a USD 2.5 million nonrecurring accrual reversal, and that excluding it, operating expenses grew about 15%. The nine-month net loss totaled USD 14.0 million, or USD 0.07 per share, down from USD 57.3 million, or USD 0.30. Adjusted EBITDA stayed positive for a fourth straight quarter, and Operating Cash Flow was also positive. The weighted average share count sat near 190.9 million, while interest income was USD 0.8 million, down from USD 1.0 million.

Bookings Momentum, Fourth Quarter Targets and Buybacks

On the call, management reported that units booked over the Trailing Twelve Months climbed 44% to around 123,000, and bookings value advanced 29% to close to USD 144 million, while new deployments fell to 73,363 from 84,285. Looking to the fourth quarter, management forecasts total revenue growing 15% to 20%, core revenue up 20% to 25%, and adjusted EBITDA rising roughly 450% to 650% from a year earlier. Risks include lengthy sales cycles, deferred customer Capital spending, competition in maintenance software and the hardware Supply chain. Management expects to remain active under its repurchase authorization. The filing notes that changes in executive Leadership and sales structure have affected volumes, and the material contained no stock price information.

Where Things Stand

Margin improvement, rather than sales growth, did most of the work. SmartRent (NYSE:SMRT) grew revenue about 15% while trimming cost of revenue, and a hardware rebound pushed gross margin toward 41%. A net loss persists, and software revenue growth of 11% is modest. Watch fourth quarter deployments, the guided expansion of 15% to 20% in revenue, and progress toward 1 million installed units, a milestone management anticipates in the first half of 2027.