Shares of property technology (proptech) company SmartRent (SMRT 11.23%) were moving higher today after it delivered better-than-expected results in its fourth-quarter earnings report, topping estimates on the top and bottom lines.
As of 11:15 a.m. ET, the stock was up 10% on the news.
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What happened with SmartRent
SmartRent stock has struggled since going public through a SPAC in 2021 due in part to the broader challenges in the real estate market, and the stock is now priced in penny stock range, trading for less than $2/share.
Revenue in the quarter rose just 3% to $36.5 million, but a more promising sign was the growth in its annual recurring revenue (ARR), driven by its software business. ARR rose 13% to $61.6 million and now makes up 42% of total revenue. Units booked also rose 24% to 25,634, a sign that the business is on the right track.
It also flipped an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss from $7.4 million to a profit $0.2 million. On a generally accepted accounting principles (GAAP) basis, its loss per share improved from $0.06 to $0.02.
NYSE: SMRT
Key Data Points
Can SmartRent keep gaining?
SmartRent didn't offer guidance for the quarter or the year, but CEO Frank Martell said the company plans to expand its deployed base in 2026, expand its platform capabilities, and leverage AI.
As a combined hardware and software company, SmartRent has an edge in AI deployment over pure-play software companies.
At this point, it seems premature to bet on the company's comeback, but today's report was a step in the right direction.
