SmartRent (SMRT) investor relations material

Executive summary

• IoT footprint/Units Deployed grew 10% year-over-year to 911,244 units in Q1 2026, reflecting continued expansion.

• ARR increased 9% year-over-year to $61 million, now 39% of total revenue.

• Achieved positive adjusted EBITDA of $0.4 million for the second consecutive quarter, a $6.8 million improvement year-over-year.

• Net loss narrowed significantly to $4.4 million from $40.2 million year-over-year, aided by lower costs and absence of prior year impairment.

• Ended Q1 2026 with $99 million in cash, no debt, and an undrawn $75 million credit facility.

Financial highlights

• Total Q1 revenue was $38.7 million, down 6% year-over-year due to lower hardware revenue and non-cash hub amortization.

• SaaS revenue grew 9% to $15.2 million, now 39% of total revenue.

• Hardware revenue declined 18% to $15.4 million; professional services revenue surged 55% to $6 million.

• Gross profit rose to $15.1 million with gross margin expanding to 39.1% from 32.8% year-over-year.

• Operating expenses dropped 32% to $20.2 million, reflecting cost alignment and lower legal and personnel costs.

Outlook and guidance

• Management expects continued ARR growth, positive adjusted EBITDA, and free cash flow for the full year.

• Revenue anticipated to improve as sales productivity increases and VAR channel contributes, with stronger performance in the second half.

• Targeting over 1 million IoT unit installations in the first half of 2027 and 1.2 million+ by end of 2028, supporting Vision 2028 strategic pillars.

• Hub amortization revenue will continue to decline, creating a modest headwind to reported revenue but improving revenue quality.

• Focus remains on expanding the sales team, deepening account planning, renegotiating early-stage contracts, and targeting the small to medium rental market.