Q1 2026 earnings snapshot

SmartRent (SMRT) opened 2026 with Q1 revenue of US$38.7 million and a basic EPS loss of US$0.02, as the business continues to work through a period of unprofitability. Over the past year, the company has seen quarterly revenue move between US$35.4 million and US$41.3 million while basic EPS ranged from a loss of US$0.21 to a loss of US$0.02, giving investors a clearer view of how the top line compares with ongoing earnings pressure. With year ahead forecasts calling for revenue growth but no near term profitability, the focus from here is firmly on how quickly margins can be improved.

See our full analysis for SmartRent.

With the latest numbers on the table, the next step is to set these results against the prevailing market narratives and see which storylines around growth, losses, and margin progress hold up under the data.

Losses narrow on a trailing basis

• Over the last twelve months, SmartRent recorded a net loss of US$24.8 million and basic EPS of a US$0.13 loss, compared with a US$60.6 million loss and US$0.32 loss per share in the prior trailing period, so the business is still unprofitable but the trailing loss has been smaller in the most recent data.
• Consensus narrative leans bullish on the earnings path, pointing to the shift toward higher margin SaaS and cost savings, and the trailing numbers partly support that while also showing the gap still to close:
  • SaaS is described as a higher margin driver with recurring revenue, while the trailing 12‑month loss of US$24.8 million shows that, even with the improvement from the US$72.4 million loss seen in an earlier trailing period, profitability has not yet been reached.
  • Cost savings of about US$30 million annually are highlighted in the consensus narrative, and the reduction in trailing losses over recent periods aligns with that message. However, the continued loss-making status means the bullish view rests on further margin work beyond what is already reflected in Q1 2026.

Q1 loss smaller than a year ago

• Q1 2026 net loss was US$4.4 million with a basic EPS loss of US$0.02, compared with a Q1 2025 net loss of US$40.2 million and a basic EPS loss of US$0.21. On the same quarter a year apart, the earnings drag this time was much lighter in absolute terms.
• Bulls argue that the move toward recurring SaaS and a stickier installed base should support future profitability, and the Q1 comparison gives some backing to that while also underlining the remaining work:
  • Consensus narrative points to SaaS margins of around 70% and recurring revenue traction, and the reduction in quarterly loss from US$40.2 million to US$4.4 million is consistent with better cost discipline around that mix, even though the raw revenue line moved from US$41.3 million to US$38.7 million over the same quarters.
  • At the same time, the company is still expected to be loss making over the next three years, so the bullish view has to reconcile this Q1 improvement with forecasts that do not yet include a clear break into positive net income.

On this pattern of smaller quarterly and trailing losses, many bulls see the groundwork for a future earnings turnaround and want to test that against the full bullish case 🐂 SmartRent Bull Case

Unprofitable today, valuation still looks cheap

• SmartRent is unprofitable on a trailing basis with a US$24.8 million loss, yet trades at a P/S of 1.5x versus 2.6x for the US Electronic industry and 19.3x for peers, and the provided DCF fair value of US$7.997363919475959 is well above the current US$1.14 share price. This sets up a wide gap between current pricing and the DCF fair value figure.
• Bears focus on the risk that ongoing losses persist despite that apparent discount, and the data here both back and challenge that cautious view:
  • Forecasts indicate SmartRent is not expected to reach profitability in the next three years and analysts expect revenue growth of about 17.6% a year, so the bearish concern about extended loss making has direct support in the outlook even as top line expansion continues.
  • On the other hand, losses have been reduced at about 8.6% per year over the past five years on the available data and the stock trades far below the DCF fair value figure, so anyone leaning fully into the bearish side also has to explain why this combination of narrowing losses and a low P/S multiple would not eventually translate into better earnings power.

For readers weighing that gap between ongoing losses and a discounted valuation, the full cautious case sets out how those risks might dominate if profitability keeps slipping further out 🐻 SmartRent Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for SmartRent on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Seeing both risks and rewards in this story, it makes sense to act quickly, review the numbers yourself, and decide where you stand with the 4 key rewards and 1 important warning sign.

See What Else Is Out There

SmartRent is still loss making with no near term profitability expected, so investors face continued earnings pressure despite progress on narrowing those losses.

If you want ideas where earnings risk looks more contained, compare this situation with companies screened for resilience using the 72 resilient stocks with low risk scores while the opportunity set is still fresh in mind.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.