SmartRent reports $3.91 million net loss for Q3 2026

Cover page 2 changes

3 unchanged paragraphs

For the quarterly period ended June September 30, 2026

22 unchanged paragraphs

As of August 3, November 2, 2026, there were 191,611,799 189,815,781 shares of the registrant's Class A common stock outstanding, par value $0.0001 per share.

1 unchanged paragraph

Forward-looking statements 6 changes

2 unchanged paragraphs

• our future operational performance, including our expectations regarding our metrics, including, among others, Annual Recurring Revenue, Average Revenue per Unit, Customer Churn, Property Net Revenue Retention, Customer Net Revenue Retention, Bookings, the number of Units Deployed, New Units Deployed, Hardware Upgrade Units, Units Shipped, and Units Booked;

1 unchanged paragraph

• our anticipated investments in sales and marketing and research and development;

• anticipated investments in sales and marketing, research and development and other strategic initiatives, and our ability to effectively manage growth and operating expenses;

• our expectations about competition and our ability to compete effectively with new and existing competitors in new and existing markets and offerings;

2 unchanged paragraphs

• the ability of customers and other third parties to perform their contractual obligations to us and complete actions necessary for anticipated orders and deployments, and the timing thereof;

9 unchanged paragraphs

• our expectations about competition and our ability to compete effectively with new and existing competitors in new and existing markets and offerings;

19 unchanged paragraphs

Financial Statements (Unaudited) 25 changes

17 unchanged paragraphs

Convertible preferred stock, $ 0.0001 par value; 50,000 shares authorized as of June September 30, 2026 and December 31, 2025; no shares of preferred stock issued and outstanding as of June September 30, 2026 and December 31, 2025

1 unchanged paragraph

Class A common stock, $ 0.0001 par value; 500,000 shares authorized as of June September 30, 2026 and December 31, 2025, respectively; 191,611 189,750 and 189,677 shares issued and outstanding as of June September 30, 2026 and December 31, 2025, respectively

7 unchanged paragraphs

For the six months ended June 30,

For the three months ended June September 30,

For the nine months ended September 30,

29 unchanged paragraphs

Issuance of Class A common stock upon vesting of equity awards

4 unchanged paragraphs

Stock-based compensation

Issuance of Class A common stock upon vesting of equity awards

Tax withholdings related to net share settlement of equity awards ( 251 ( 526 ( 526

Repurchases of Class A common stock

Other comprehensive loss

Balance, September 30, 2026

21 unchanged paragraphs

Stock-based compensation

Issuance of common stock upon vesting of equity awards

Tax withholdings related to net share settlement of equity awards ( 268 ( 374 ( 374

Repurchases of Class A common stock

Other comprehensive income

Balance, September 30, 2025

2 unchanged paragraphs

For the six months ended June 30,

For the nine months ended September 30,

9 unchanged paragraphs

Provision for (recovery of) expected credit losses

13 unchanged paragraphs

Taxes paid related to net share settlements of stock-based compensation awards ( 729 1,255 ( 523 897

Payment of earnout related to acquisition

10 unchanged paragraphs

For the six months ended June 30,

For the nine months ended September 30,

6 unchanged paragraphs

Note 2: SIGNIFICANT ACCOUNTING POLICIES 1 change

1 unchanged paragraph

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and include the consolidated accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. The Condensed Consolidated Balance Sheet at December 31, 2025 has been derived from the audited consolidated financial statements as of December 31, 2025, as presented in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the Securities and Exchange Commission (the "SEC") on March 4, 2026. Certain notes and other information have been condensed or omitted from the interim financial statements presented herein. The financial data and other information disclosed in these Notes to Condensed Consolidated Financial Statements related to the three and six nine months ended June September 30, 2026 and 2025 are unaudited. The unaudited interim financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which are of a normal recurring nature, necessary for a fair statement of the Company's financial condition and results of operations and cash flows for the interim period presented. The results for the three and six nine months ended June September 30, 2026 are not necessarily indicative of the results to be expected for the full year ending December 31, 2026 or any future period.

3 unchanged paragraphs

Notes to the financial statements 17 changes

1 unchanged paragraph

The Company has one operating segment and one reportable segment. Its chief operating decision maker ("CODM") is the Company's President and Chief Executive Officer, with the exception of the period from July 29, 2024 to February 24, 2025 when a management committee comprised of certain of the Company's executives acted as the CODM while the Company was in a transition period between Chief Executive Officers. The CODM reviews financial information on a consolidated basis for purposes of allocating resources and evaluating financial performance. The Company's principal operations are in the United States and the Company's long-lived assets are located primarily within the United States. Refer to Note 12 - Segment Reporting for more information on the Company's operating and reportable segments.

Recent Accounting Guidance

Recent Accounting Guidance Not Yet Adopted

In November 2024, the Financial Standards Accounting Board (FASB) issued Accounting Standards Update (ASU) No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses and in January 2025, the FASB issued ASU No. 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date, which clarified the effective date of ASU 2024-03. ASU 2024-03 requires public companies to disclose, in interim and annual reporting periods, additional information about certain expenses in the notes to financial statements. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the effect that the updated standard will have on the consolidated financial statement disclosures.

In September 2025, the FASB issued ASU No. 2025-06 ("ASU 2025-06"), Intangibles–Goodwill and Other–Internal-Use Software. The guidance modernizes and clarifies the threshold for when an entity is required to start capitalizing software costs and is based on when (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. The amendments in ASU 2025-06 are effective for fiscal years beginning after December 15, 2027, and interim reporting periods, with early adoption permitted. We are evaluating the impact of the standard on the consolidated financial statement disclosures.

In December 2025, the FASB issued ASU 2025-12, Codification Improvements ("ASU 2025-12"). The guidance addresses suggestions received from stakeholders regarding the Accounting Standards Codification and makes other incremental improvements to U.S. GAAP. The update represents changes to the Codification that clarify, correct errors in or make other improvements to a variety of topics that are intended to make it easier to understand and apply. ASU 2025-12 is effective for fiscal years beginning after December 15, 2026 and interim periods within those fiscal years. Entities are required to apply the amendments to ASC 260 retrospectively. All other amendments may be applied prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the effect that the updated standard will have on the consolidated financial statement disclosures.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements ("ASU 2025-11"). The guidance is intended to improve the navigability of guidance in ASC 270, Interim Reporting, and clarify when it applies. The amendments also provide additional guidance on what disclosures should be provided in interim reporting periods. ASU 2025-11 is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years, and permits prospective or full retrospective adoption. The Company is currently evaluating the effect that the updated standard will have on the consolidated financial statement disclosures.

Recently Adopted Accounting Guidance

In July 2025, the FASB issued ASU No. 2025-05 ("ASU 2025-05"), Financial Instruments–Credit Losses. The guidance provides an optional practical expedient when applying the guidance related to the estimation of expected credit losses for current accounts receivable and current contract assets resulting from transactions arising from contracts with customers. The amendments in ASU 2025-05 are effective for fiscal years beginning after December 15, 2025, and interim reporting periods, with early adoption permitted. The Company adopted this standard which had no impact on results of operations, cash flows or financial condition.

This hierarchy requires the Company to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. The Company recognizes transfers between levels of the hierarchy based on the fair values of the respective financial measurements at the end of the reporting period in which the transfer occurred. There were no transfers between levels of the fair value hierarchy during the three or nine months ended September 30, 2026 or 2025. The carrying amounts of the Company's accounts receivable, accounts payable and accrued and other liabilities approximate their fair values due to their short maturities.

The Company derives its revenue primarily from sales of systems that consist of hardware devices, professional services and Hosted Services to assist property owners and property managers with visibility and control over assets, while providing all-in-one home control offerings for residents. Revenue is recorded when control of these products and services is transferred to the customer in an amount that reflects the consideration the Company expects to be entitled to receive in exchange for those products and services.

The Company may enter into contracts that contain multiple distinct performance obligations. The transaction price for a typical arrangement includes the price for: smart home hardware devices, professional services, and a subscription for use of the Company's software ("Hosted Services"). Included in these contracts are centrally connected devices ("Hub Devices"), which integrate the Company's enterprise software with third party smart devices. Historically, the Company only sold non-distinct Hub Devices which only functioned with a subscription to its software ("non-distinct Hub Devices"). During the year ended December 31, 2022, the Company began shipping Hub Devices with features that function independently from its software subscription ("distinct Hub Devices"). Non-distinct Hub Devices are recognized as a single performance obligation with the Company's software in Hosted Services revenue, while distinct Hub Devices are recognized as a separate performance obligation in hardware revenue. When distinct Hub Devices are included in a contract, the Hosted Services performance obligation is comprised of only the Company's software. We do not expect to deploy any more non-distinct Hub Devices.

The Company considers delivery for each of the hardware, professional services and Hosted Services to be separate performance obligations. The hardware performance obligation includes the delivery of smart home hardware and distinct Hub Devices. The professional services performance obligation includes the services to install the hardware. The Hosted Services performance obligation provides a subscription that allows the customer access to software during the contracted-use term when the promised service is provided to the customer. Also included in the hosted service performance obligation are non-distinct Hub Devices that only function with a subscription to the Company's software.

Payments are received by the Company by check or automated clearing house payments and payment terms are determined by individual contracts and generally range from due upon receipt to net 30 days . When payment terms are significantly extended or differ from general terms, the Company evaluates the existence of a significant financing component in the contract and recognizes any related financing receivable within other assets in the condensed consolidated balance sheet. See Note 5 - Other Balance Sheet Information. One of these extended terms arrangements is classified as a financing receivable on our balance sheet. Taxes collected from customers and remitted to governmental authorities are not included in reported revenue. Payments received from customers in advance of revenue recognition are reported as deferred revenue. The Company has elected the following practical exp edients following the adoption of ASC 606:

• Shipping and handling costs: the Company elected to account for shipping and handling activities that occur after the customer has obtained control of a good as fulfillment activities (i.e., an expense) rather than as a promised service and are recorded as hardware cost of revenue. Amounts billed for shipping and handling fees are recorded as revenue.

• Sales tax collected from customers: the Company elected to exclude from the measurement of transaction price all taxes assessed by a government authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by us from a customer.

• Measurement of the transaction price: the Company applies the practical expedient that allows for inclusion of the future auto-renewals in the initial measurement of the transaction price. The Company only applies these steps when it is probable that it will collect the consideration to which it is entitled in exchange for the goods or services it transfers to a customer.

Note 4: REVENUE AND DEFERRED REVENUE 6 changes

2 unchanged paragraphs

For the six months ended June 30,

For the three months ended June September 30,

For the nine months ended September 30,

1 unchanged paragraph

For the six months ended June 30,

For the three months ended June September 30,

For the nine months ended September 30,

1 unchanged paragraph

Note 5: OTHER BALANCE SHEET INFORMATION 2 changes

1 unchanged paragraph

The Company writes down inventory for any excess or obsolete inventories or when the Company believes the net realizable value of inventories is less than the carrying value. During the three months ended June September 30, 2026 and 2025, the Company recorded write-downs of $ 541 651 and $ 387 3,258 , respectively. During the six nine months ended June September 30, 2026 and 2025, the Company recorded write-downs of $ 300 951 and $ 594 3,852 , respectively. As of June September 30, 2026 and December 31, 2025, the Company's inventory reserve balance was $ 4,439 4,739 and $ 4,307 , respectively. On a regular basis, the Company evaluates inventory levels for excess and obsolete products based on its assessment of future demand and market conditions.

10 unchanged paragraphs

Depreciation and amortization expense on all property, plant and equipment was $ 384 and $ 170 during the three months ended June 30, 2026 and 2025, respectively. Depreciation and amortization expense on all property, plant and equipment was $ 671 and $ 359 during the six months ended June 30, 2026 and 2025, respectively.

Note 6: DEBT 8 changes

The Senior Revolving Facility contains certain customary affirmative and negative covenants and events of default. Such covenants will, among other things, restrict, subject to certain exceptions, the Company's ability to (i) engage in certain mergers or consolidations, (ii) sell, lease or transfer all or substantially all of the Company's assets, (iii) engage in certain transactions with affiliates, (iv) make changes in the nature of the Company's business and its subsidiaries, and (v) incur additional indebtedness that is secured on a pari passu basis with the Senior Revolving Facility.

The Senior Revolving Facility also requires the Company, on a consolidated basis with its subsidiaries, to maintain a minimum cash balance. If the minimum cash balance is not maintained, the Company is required to maintain a minimum liquidity ratio. As of June 30, 2026 the Company did not maintain the minimum cash balance but exceeded the minimum liquidity ratio. If an event of default occurs, the lender is entitled to take various actions, including the acceleration of amounts due under the Senior Revolving Facility and all actions permitted to be taken by a secured creditor. As of June 30, 2026, and through the date these condensed consolidated financial statements were issued, the Company believes it was in compliance with all financial covenants.

The Senior Revolving Facility is collateralized by first priority or equivalent security interests in substantially all the property, rights, and assets of the Company.

As of June 30, 2026 and December 31, 2025, there was no outstanding principal amount under the Senior Revolving Facility.

Term Loan and Revolving Line of Credit Facility

In December 2021, the Company entered into a $ 75,000 senior revolving facility with a five-year term (the "Senior Revolving Facility"). The Senior Revolving Facility includes a letter of credit sub-facility in the aggregate availability of $ 10,000 as a sublimit of the Senior Revolving Facility, and a swingline sub-facility in the aggregate availability of $ 10,000 as a sublimit of the Senior Revolving Facility. Proceeds from the Senior Revolving Facility are to be used for general corporate purposes. Amounts borrowed under the Senior Revolving Facility may be repaid and, prior to the Senior Revolving Facility maturity date, reborrowed. The Senior Revolving Facility terminates on the Senior Revolving Facility maturity date in December 2026 , when the principal amount of all advances, the unpaid interest thereon, and all other obligations relating to the Senior Revolving Facility shall be immediately due and payable. The Company has yet to draw on the Senior Revolving Facility as of June September 30, 2026. The Company accounted for the cancellation of its previous revolving facility and the issuance of the Senior Revolving Facility as an exchange with the same creditor. As a result, all costs related to entering into the Senior Revolving Facility that are allowed to be deferred are recorded as a deferred asset and included in other assets on the Condensed Consolidated Balance Sheets. These costs totaled $ 688 and will be amortized ratably over the five-year term of the Senior Revolving Facility. For the three months ended June September 30, 2026 and 2025, the Company recorded $ 34 and $ 36 34 , respectively, of amortization expense in connection with these costs, as a component of interest expense on the Condensed Consolidated Statements of Operations and Comprehensive Loss. For the six nine months ended June September 30, 2026 and 2025, the Company recorded $ 68 102 and $ 72 106 , respectively, of amortization expense in connection with these costs, as a component of interest expense on the Condensed Consolidated Statements of Operations and Comprehensive Loss.

Interest rates for draws upon the Senior Revolving Facility are determined by whether the Company elects a secured overnight financing rate loan ("SOFR Loan") or alternate base rate loan ("ABR Loan"). For SOFR Loans, the interest rate is based upon the forward-looking term rate based on SOFR as published by the CME Group Benchmark Administration Limited (CBA) plus 0.10 %, subject to a floor of 0.00 %, plus an applicable margin. For ABR Loans, the interest rate is based upon the highest of (i) the Prime Rate, (ii) the Federal Funds Effective Rate plus 0.50 %, or (iii) 3.25 %, plus an applicable margin. As of June September 30, 2026, the applicable margins for SOFR Loans and ABR Loans under the Senior Revolving Facility were 1.75 % and ( 0.50 %) , respectively.

In addition to paying interest on the outstanding principal balance under the Senior Revolving Facility, the Company is required to pay a facility fee to the lender in respect of the unused commitments thereunder. The facility fee rate is based on the daily unused amount of the Senior Revolving Facility and is one fourth of one percent ( 0.25 %) per annum based on the unused facility amount. During the three months ended June September 30, 2026 and 2025, the facility fee totaled $ 46 47 and $ 45 47 , respectively. During the six nine months ended June September 30, 2026 and 2025, the facility fee totaled $ 93 140 and $ 92 139 , respectively.

Note 7: CONVERTIBLE PREFERRED STOCK AND EQUITY 4 changes

The Company is authorized to issue 50,000 shares of $ 0.0001 par value preferred stock. As of June September 30, 2026, there are no shares of preferred stock were issued or outstanding.

1 unchanged paragraph

In March 2024, the Company's Board of Directors (the "Board") authorized a stock repurchase program pursuant to which we may repurchase up to $ 50,000 of our Class A common stock. I n July 2026, the Board approved the termination of this stock repurchase program and authorized a new stock repurchase program pursuant to which the Company may repurchase up to $ 25,000 of its outstanding Class A common stock. The new authorization replaces the prior repurchase program in its entirety. Repurchases under the program may be made from time to time through open market purchases or through privately negotiated transactions subject to market conditions, applicable legal requirements and other relevant factors. The repurchase program does not obligate us to acquire any particular amount of our Class A common stock and may be suspended at any time at our discretion. The timing and number of shares repurchased will depend on a variety of factors, including the stock price, business and market conditions, corporate and regulatory requirements, alternative investment opportunities, acquisition opportunities, and other factors.

During the three and six months ended June September 30, 2026, the Company repurchased and subsequently retired 2,800 2,495 shares of our Class A common stock under the new stock repurchase program at an average price of $ 1.21 1.37 per share for a total of $ 3,400 3,415 , including $ 28 25 of broker fees. During the nine months ended September 30, 2026, the Company repurchased and subsequently retired 5,295 shares of our Class A common stock under the stock repurchase programs at an average price of $ 1.29 per share for a total of $ 6,815 , including $ 53 of broker fees. As of June September 30, 2026, approximately $ 13,379 21,609 remained available for stock repurchases pursuant to our the stock repurchase program. See Note 13 - Subsequent Events for more information.

During the three nine months ended June September 30, 2025, the Company repurchased and subsequently retired 4,066 5,084 shares of our Class A common stock under the stock repurchase program at an average price of $ 0.91 0.96 per share for a total of $ 3,684 4,886 , including $ 41 51 of broker fees. There were no such purchases during the six three months ended June September 30, 2025. The Company repurchased and subsequently retired 5,084 shares of our Class A common stock under the stock repurchase program at an average price of $ 0.96 per share for a total of $ 4,886 , including $ 51 of broker fees. The Company has elected to record the amount paid to repurchase the shares in excess of the par value entirely to accumulated deficit. As of June September 30, 2025, approximately $ 16,751 and remained available for stock repurchases pursuant to our the stock repurchase program.

Note 8: STOCK-BASED COMPENSATION 13 changes

3 unchanged paragraphs

2021 Equity Incentive Plan

In August 2021, the Board approved and implemented the SmartRent, Inc. 2021 Equity Incentive Plan (the "2021 Plan"). The purpose of the 2021 Plan is to enhance the Company's ability to attract, retain and motivate persons who make, or are expected to make, important contributions to the Company by providing these individuals with equity ownership opportunities and equity-linked compensation opportunities.

The 2021 Plan authorizes the administrator of the 2021 Plan (generally, the Board or its compensation committee) to provide incentive compensation in the form of stock options, restricted stock and stock units, performance shares and units, other stock-based awards and cash-based awards. On May 12, 2026, the Company's stockholders approved an amendment to the 2021 Plan, as amended and restated, which increased the number of shares reserved for issuance thereunder by 20,000 shares of Class A common stock. The Company is authorized to issue up to a total of 44,400 shares of Class A common stock under the 2021 Plan, as amended and restated. Non-employee board member RSUs generally will vest over one year , subject to the recipient's continued service through the applicable vesting date or dates. The RSUs and options granted to employees are generally subject to a four-year vesting schedule and all vesting generally shall be subject to the recipient's continued service with the Company or its subsidiaries through the applicable vesting dates.

The table below summarizes the activity pursuant to the 2021 Plan, for the nine months ended September 30, 2026, and the shares available for future issuances as of September 30, 2026 and December 31, 2025.

Shares Available for Future Issuance

Shares available as of December 31, 2025

RSUs settled for taxes

Shares available as of March 31, 2026

Additions to the plan

RSUs settled for taxes

Shares available as of June 30, 2026

RSUs settled for taxes

Shares available as of September 30, 2026

Note 9: INCOME TAXES 3 changes

The Company's effective tax rate ("ETR") from continuing operations was 2.79 4.40 % and 0.30 ( 0.90 %) for the three months ended June September 30, 2026 and 2025, respectively. The Company's effective tax rate ETR from continuing operations was 1.19 2.11 % and ( 0.15 0.23 %) for the six nine months ended June September 30, 2026 and 2025, respectively. The Company's ETR during the six nine months ended June September 30, 2026 differed from the federal statutory rate of 21 % primarily due to changes in valuation allowance and foreign taxes.

The income tax benefit on the Condensed Consolidated Statement of Operations and Comprehensive Loss is primarily related to current year foreign losses offset by foreign and state taxes. The Company established a full valuation allowance for net deferred U.S. federal and state tax assets, including U.S. net operating loss carryforwards. The Company expects to maintain this valuation allowance until it becomes more likely than not that the benefit of the U.S. federal and state deferred tax assets will be realized in future periods if it reports U.S. taxable income. The Company believes that it has established an adequate allowance for uncertain tax positions, although it can provide no assurance that the final outcome of these matters will not be materially different. To the extent that the final outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made.

On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Company has benefited from the restoration of 100% bonus depreciation and the favorable treatment of research and development expenditures under Section 174 enacted by the OBBBA, and the effects of the legislation have been reflected in the Company's income tax provision.

Note 10: NET LOSS PER SHARE 3 changes

1 unchanged paragraph

For the six months ended June 30,

For the three months ended June September 30,

For the nine months ended September 30,

1 unchanged paragraph

Note 11: COMMITMENTS AND CONTINGENCIES 4 changes

1 unchanged paragraph

The Company enters into long-term purchase commitments for certain goods and services. In October 2025, the Company entered into an agreement with a supplier to purchase minimum volumes of certain goods and services through December 2030. Future minimum annual payments in connection with the purchase commitment as of June September 30, 2026 are as follows.

4 unchanged paragraphs

In February 2024, a putative class action complaint was filed against Fifth Wall Acquisition Sponsor, LLC, Fifth Wall Asset Management, LLC (the "FWAA Defendants"), and the individual directors of Fifth Wall Acquisition Corp. I ("FWAA") (the "Director Defendants" and collectively the "Defendants") in the Delaware Court of Chancery by a stockholder of FWAA for purported damages arising from the business combination with SmartRent.com, Inc. (the "2024 Class Action"). The complaint asserted claims for purported actions relating to FWAA's August 24, 2021 merger with legacy SmartRent.com, Inc. Beginning in February 2025, the parties participated in a mediation, which ultimately led to all the parties' agreement to settle the 2024 Class Action for $ 11,375 . In August 2025, the parties executed a Stipulation and Agreement of Settlement, Compromise and Release, which the Court approved in November 2025.

Legal expenses and settlement costs incurred by the Company during the three months ended September 30, 2025 were $ 1,187 in connection with the 2024 Class Action. There were no such expenses incurred during the three months ended September 30, 2026. Legal expenses and settlement costs incurred by the Company during the nine months ended September 30, 2026 and 2025 were $ 37 and $ 4,649 , respectively, in connection with the 2024 Class Action. These legal expenses were recorded within general and administrative expenses on the Condensed Consolidated Statements of Operations and Comprehensive Loss and accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheets.

In December 2025, the San Francisco Tenants Union and three residents filed claims against the Company and several multifamily property owners in the Superior Court of the State of California in the County of San Francisco for alleged violations of Article 1 Section 1 of the California Constitution for alleged violation of tenant privacy rights, for common law intrusion upon seclusion and for violation of the San Francisco Rent Ordinance for purportedly interfering with tenants' privacy rights arising out of the use of the Company's SmartHome products and services (the "Complaint"). The Complaint seeks declaratory relief that the conduct described in the Complaint constitutes an invasion of the right to privacy and injunctive relief prohibiting the Company and owners from violating tenants' privacy rights. The Complaint also seeks unspecified damages. In August 2026, the Superior Court denied the Company's motion to compel arbitration. The Company disputes the plaintiffs' claims and intends to vigorously defend against those claims. Given the early stage of the proceedings and the unspecified nature of the damages sought, the Company is unable at this time to estimate the reasonably possible loss or range of loss, if any, and no amount has been accrued.

Note 12: SEGMENT REPORTING 1 change

The Company operates as a single operating segment, which is also its only reportable segment as its CODM, which is currently the Company's President and Chief Executive Officer , reviews financial information on a consolidated basis for purposes of allocating resources and evaluating financial performance. The Company's principal operations are in the United States and the Company's long-lived assets are located primarily within the United States. The Compa ny held $ 7,002 7,090 and $ 10,080 of assets outside the United States on June September 30, 2026, and December 31, 2025, respectively.

Note 13: SUBSEQUENT EVENTS 3 changes

On July 24, 2026, the Company's Board of Directors approved the termination of its existing stock repurchase program and authorized a new stock repurchase program pursuant to which the Company may repurchase up to $ 25,000 of its outstanding Class A common stock. The new authorization replaces the prior repurchase program in its entirety.

In connection with the preparation of the accompanying condensed consolidated financial statements, the Company has evaluated events and transactions occurring after June September 30, 2026 and through August 5, November 4, 2026, the date these financial statements were issued, for potential recognition or disclosure and has determined that there are no additional items to disclose except as disclosed below.

In July October 2026, 1 67 shares of the Company's Class A common stock were issued to certain employees related to vested RSUs.

MD&A 153 changes

2 unchanged paragraphs

We are an enterprise real estate technology company that provides a comprehensive management platform designed for property owners, managers market-leading building intelligence provider delivering innovative data, technology and residents. workflow solutions for the rental housing industry. Our suite of products and services, which includes cloud-based SaaS solutions, many of which are enabled by smart building hardware, provide provides seamless visibility and control over real estate assets. Our platform can lower operating costs, increase revenues, mitigate operational friction and protect assets for owners and operators, while providing a differentiated, elevated living experience for residents.

Through centrally connected devices ("Hub Devices"), which integrate our enterprise software with third party smart devices, we enable the integration of our platform with third-party smart devices, our own hardware devices and other technology interfaces. We use an open-architecture, brand-agnostic approach that allows owners, operators, and residents to manage their smart home systems through a single connected interface. Our Smart Community Communities Solutions include software and devices that power (i) smart apartments and homes, (ii) access control for buildings, common areas, and rental units, and (iii) other solutions such as asset protection and monitoring and self-guided tours. Our Smart Operations Solutions include work order management, the automation of leasing and resident call handling, audit management, and the automation of the inspection process. We also have a professional services team that provides customers with training, installation, and support services.

SmartRent is a category leader in the enterprise smart home solutions industry. As of June September 30, 2026, we had 929,487 941,977 Units Deployed (as defined below) and approximately 600 customers who either have an active subscription or have purchased any SmartRent product in the past twelve months, including many of the largest multifamily residential owners in the United States. As of June September 30, 2026, we believe our customers owned an aggregate of approximately 6.8 more than 7.0 million rental units. This represents approximately 14% 15% of the United States market for institutionally owned multifamily rental units and single-family rental homes. In addition to multifamily residential owners, our customers include some of the leading single-family rental homeowners, homebuilders, and iBuyers in the United States.

We generate revenue primarily from sales of smart home systems that enable property owners and property managers to have visibility and control over assets, while providing all-in-one home control offerings for residents. Our revenue is primarily generated from: (1) the direct sale to our customers of hosted services from subscription fees collected from customers to provide Hosted Services including access controls, asset monitoring, and related services; (2) the sale and delivery of smart home devices, which generally consist of a Hub Device, door-locks, thermostats, sensors, and light switches; and (3) installation and implementation of smart home devices that enable our Hosted Services. Subscription arrangements have contractual terms ranging from one month to ten years and the weighted average length of our recurring revenue contracts is 3.9 3.8 years.

3 unchanged paragraphs

We continue to experience improvements in the challenges changes related to the global supply chain. In prior periods, the increased demand for electronics as a result of the COVID-19 pandemic, U.S. trade relations with China and certain other factors in more recent periods led to a global shortage of semiconductors, including Z‑Wave chips, which are a central component of our Hub Devices. Due to this shortage in prior periods, we experienced Hub Device production delays, which affected our ability to meet scheduled installations and facilitate customer upgrades to our higher-margin Hub Devices. We also experienced shortages and shipment delays related to components for access control systems and made-to-order specialty locks and volatility in costs related to changes in tariffs.

1 unchanged paragraph

In 2025, the U.S. government announced tariffs on goods imported from various countries to the U.S. Countries subject to such tariffs have imposed or may in the future impose reciprocal or retaliatory tariffs and other trade measures. An increase in tariffs could have an adverse impact on our cost structure, supply chain, and broader economic environment.

3 unchanged paragraphs

We are evolving our business into a more diverse platform with new products, features and functionality that enhance the value of our smart home operating system. We have introduced a number of SaaS product enhancements and features, including Answer Automation and Work Management solutions, that streamline property management operations. Our Smart Operations Solutions enhance our overall platform offering and customer value proposition by providing a comprehensive one-stop, integrated platform that broadens our support of property operations, enhancing the experience for residents, property owners and managers. We offer an open-API architecture that enables third-party partner integrations, resulting in a multi-functional platform that enhances property management workflow efficiencies, empowers team productivity, elevates resident interactions, and improves resident living experiences. In the future, we intend to unify connection with our strategic Vision 2028 objectives, we are investing in platform unification with deeper use of data, analytics and AI, and to simplify our hardware architecture while expanding software offerings.

1 unchanged paragraph

Our future growth depends in part on the continued consumer adoption of software and hardware products which improve the resident experience and the growth of this market. We need to deliver solutions that enhance the resident experience and deliver value to our customers, rental property owners and operators, as well as homebuilders and developers, by providing products and solutions designed to enhance visibility and control over assets while providing additional revenue opportunities. In prior years, we have experienced headwinds to adoption of our Smart Communities Solutions as certain customers deferred capital expenditures, driven by broader macroeconomic conditions, which resulted in a decrease in Units Shipped and New Units Deployed. In addition, changes in our executive leadership and the structure of our sales organization have impacted sales and overall volumes. Sales of our Smart Operations Solutions have also been negatively impacted by those same factors as well as by increased competition from companies that offer maintenance solutions such as (i) a stand-alone offering or (ii) part of a broader product offering.

3 unchanged paragraphs

We regularly monitor a number of operating metrics in order to evaluate our operating performance, identify trends affecting our business, formulate business plans, measure our progress and make strategic decisions. Our key metrics are not based on any standardized industry methodology and are not necessarily calculated in the same manner or comparable to similarly titled measures presented by other companies. Similarly, our key metrics may differ from estimates published by third parties or from similarly titled metrics of our competitors due to differences in methodology. The numbers that we use to calculate our key metrics are based on internal data. While these numbers are based on what we believe to be reasonable judgments and estimates for the applicable period of measurement, there are inherent challenges in measuring such information. We regularly review and may adjust our processes for calculating our internal metrics to improve their accuracy. We have a long sales cycle, and the timing of customer decisions and orders does not always align with our reporting periods. As a result, we are increasingly focused on trailing twelve-month metrics, which we believe provides a more meaningful view of underlying customer demand and the progress we are making in executing our go-to-market strategy.

1 unchanged paragraph

We define Units Deployed as the aggregate number of Hub Devices that have been installed (including customer self-installations) and have an active subscription as of a stated measurement date. We utilize the Units Deployed metric to assess the health of our business and measure the trajectory of our growth. We define New Units Deployed as the aggregate number of Hub Devices that were installed (including customer self-installations) and resulted in a new active subscription during a stated measurement period. Although our revenue is primarily driven by New Units Deployed and the number of Units Deployed, due to the expansion of our products and services that don't do not require a Hub Device, and Hub Device upgrades that do not result in net new active subscriptions, the correlation between New Units Deployed and revenue is not as strong as it was historically. Although the correlation has decreased, New Units Deployed is still an indicator of our ability to acquire new customers and expand our relationships with our current customers. As of June September 30, 2026 and 2025, we had an aggregate of 929,487 and 847,956 Units Deployed, respectively. For the three months ended June 30, 2026 and 2025, we had 18,857 941,977 and 21,068 New 870,230 Units Deployed, respectively. For the six trailing twelve months ended June September 30, 2026 and 2025, we had 39,519 73,363 and 39,182 84,285 New Units Deployed, respectively.

Hardware Upgrade Units

We define Hardware Upgrade Units as the aggregate number of existing Units Deployed which had new hardware installed by SmartRent during a stated measurement period excluding any new hardware installed as warranty replacements. We use Hardware Upgrade Units to monitor demand for new or upgraded hardware and related installation services from our existing customers' Units Deployed. We believe this metric provides useful information regarding demand for and activity related to hardware and professional services within our existing installed base, which has become an increasing contributor to our hardware and professional services revenue as our installed base has matured. For the trailing twelve months ended September 30, 2026 and 2025, we installed 51,569 and 40,766 Hardware Upgrade Units, respectively.

We define Units Shipped as the aggregate number of Hub Devices that have been shipped to customers during a stated measurement period. Units Shipped is used to assess the trajectory of our growth and is an indicator of our ability to acquire new customers, and expand our relationships with our current customers However, and to replace previously Units Deployed. Therefore, we caution that Units Shipped also includes Hub Devices for upgrades and out of warranty replacements and may not be an indicator of New Units Deployed in future periods. For the three months ended June 30, 2026 and 2025, we had 23,249 and 26,543 Units Shipped, respectively. For the six trailing twelve months ended June September 30, 2026 and 2025, we had 56,715 107,423 and 69,961 114,197 Units Shipped, respectively.

We define Units Booked as the aggregate number of Hub Device units subject to binding orders executed during a stated measurement period that will are expected to result in a New Unit Deployed. We utilize the concept of Units Booked to measure the estimated near-term resource demand and the resulting approximate range of post-delivery revenue that we will earn and record. Units Booked represent binding orders only. For the three months ended June 30, 2026 and 2025, there were 48,254 and 24,319 Units Booked, respectively. For the six months ended June 30, 2026 and 2025, there were 64,846 and 42,529 Units Booked, respectively. We have a long sales cycle, and the timing of customer decisions and orders doesn't always align with our reporting periods. As a result, we are increasingly focused on trailing twelve-month Units Booked, which we believe provides a more meaningful view of underlying customer demand and the progress we're making in executing our go-to-market strategy. For the trailing twelve months ended June September 30, 2026 and 2025, there were 112,560 and 80,218 Units Booked, respectively. For the three months ended June 30, 2026 122,510 and 2025, ARR related to 85,250 Units Booked, was $3,227 and $2,397, respectively. For the six trailing twelve months ended June September 30, 2026 and 2025, ARR related to Units Booked was $5,122 $10,417 and $4,643, $8,855, respectively.

We define Bookings as the contract value of hardware, professional services, and the first year of ARR for binding orders executed during a stated measurement period, including renewals and upgrades. We utilize Bookings to measure revenue expected to be earned in future periods from orders contracted during the current period. For the three months ended June 30, 2026 and 2025, Bookings were $48,194 and $30,460, respectively. For the six months ended June 30, 2026 and 2025, Bookings were $66,665 and $57,640, respectively. For the trailing twelve months ended June September 30, 2026 and 2025, Bookings were $124,676 $143,981 and $107,203, $111,576, respectively.

We define SaaS Revenue as subscription revenue from fees paid by customers for access to one or more of SmartRent's software applications, including access controls, asset monitoring and related services. and our Community WiFi solution. We believe that SaaS Revenue growth demonstrates our ability to acquire new customers and to maintain and expand our relationships with existing customers. More specifically, we monitor our SaaS Revenue to assess the general health and trajectory of our Hosted Services business. Arrangements with customers do not provide the customer with the right to take possession of SmartRent's software at any time. Customers are granted continuous access to the services over the contractual period. As of June September 30, 2026, approximately 31% 32% of our ARR had prepaid payment terms. We believe that our customer base is inherently sticky, especially with our Smart Communities Solutions customers, given the barriers to entry associated with rolling out an integrated enterprise solution across a portfolio of rental units. For the three months ended June 30, 2026 and 2025, we generated SaaS Revenue of $16.1 million and $14.2 million, respectively. For the six trailing twelve months ended June September 30, 2026 and 2025, we generated SaaS Revenue of $31.3 $62.5 million and $28.2 $56.0 million, respectively.

1 unchanged paragraph

We define ARR as the annualized value of our SaaS Revenue earned in the current quarter, which we calculate by taking the total amount of SaaS Revenue in the current quarter and multiplying that amount by four. We believe that ARR growth demonstrates our ability to acquire new customers and to maintain and expand our relationships with existing customers. More specifically, we monitor our ARR to assess the general health and trajectory of our Hosted Services business. As of June September 30, 2026 and 2025, ARR was $64.5 approximately $62.9 million and approximately $56.9 million, respectively.

1 unchanged paragraph

We define Hardware ARPU as total hardware revenue during a given period divided by the total Units Shipped during the same period. Hardware ARPU is used to evaluate the effectiveness of our hardware pricing and assess our ability to market and sell our hardware offerings. For the three months ended June 30, 2026 and 2025, Hardware ARPU was $586 and $571, respectively. For the six trailing twelve months ended June September 30, 2026 and 2025, Hardware ARPU was $511 $558 and $486, $489, respectively.

We define Professional Services ARPU as total professional services revenue during a given period divided by the total New Units Deployed, excluding customer self-installations, during the same period. Professional Services ARPU is used to assess our ability to effectively price our installation services. For the three months ended June 30, 2026 and 2025, Professional Services ARPU was $580 and $365, respectively. For the six trailing twelve months ended June September 30, 2026 and 2025, Professional Services ARPU was $475 $469 and $392, $426, respectively.

We define SaaS ARPU as total SaaS Revenue during a given period divided by the average aggregate Units Deployed in the same period divided by the number of months in the period. Average aggregate Units Deployed is calculated as the Units Deployed as of the current period plus the Units Deployed as of the previous period divided by two. SaaS ARPU is used to evaluate the effectiveness of our SaaS pricing and assess our ability to market and sell our various software solutions. For the three months ended June 30, 2026 and 2025, SaaS ARPU was $5.84 and $5.66, respectively. For the six trailing twelve months ended June September 30, 2026 and 2025, SaaS ARPU was $5.74 $5.75 and $5.67, $5.63, respectively.

We define Units Booked SaaS ARPU as the first year ARR for binding orders with Units Booked executed during the stated measurement period divided by the total Units Booked in the same period divided by the number of months in the period. Units Booked SaaS ARPU is used to evaluate the effectiveness of our SaaS pricing and assess our ability to market and sell our various software solutions for orders executed during the period. For the three months ended June 30, 2026 and 2025, Units Booked SaaS ARPU was $5.57 and $8.21, respectively. For the six months ended June 30, 2026 and 2025, Units Booked SaaS ARPU was $6.58 and $9.10, respectively. For the trailing twelve months ended June September 30, 2026 and 2025, Units Booked SaaS ARPU was $7.09 and $9.08, $8.66, respectively.

We define Customer Churn as cancelled deployed Units Deployed during the measurement period divided by Units Deployed as of the beginning of the measurement period. Cancelled deployed Units Deployed are the previous Units Deployed that have been cancelled during the same measurement period in which a customer cancels all product subscriptions. Our Hosted Services growth is driven, in part, by our ability to retain our customers and minimize Customer Churn. For the three months ended June 30, 2026 and 2025, our Customer Churn for our Smart Communities Solutions was 0.00% and 0.08%, respectively. For the six trailing twelve months ended June September 30, 2026 and 2025, our Customer Churn for our Smart Communities Solutions was 0.05% 0.09% and 0.10%, 0.15%, respectively.

1 unchanged paragraph

We define Property Net Revenue Retention as SaaS Revenue at the end of the current period related to properties which had SaaS Revenue at the end of the same period in the prior year, divided by SaaS Revenue at the end of the same period in the prior year for those same properties. Property Net Revenue Retention includes additions to revenue from price increases on existing products, additions of new products at existing properties and transfers of ownership, offset by any reductions in revenue caused by cancellations or downgrades. Property Net Revenue Retention was 99% 93% as of June September 30, 2026 compared to 102% 104% as of June September 30, 2025.

1 unchanged paragraph

We define Customer Net Revenue Retention as SaaS Revenue at the end of the current period related to customers which had SaaS Revenue at the end of the same period in the prior year, divided by SaaS Revenue at the end of the same period in the prior year for those same customers. A customer with SaaS Revenue is defined as an entity that has an active subscription during the stated period. Customer Net Revenue Retention includes additions to revenue from transfers of ownership, price increases on existing products and additions of new products at existing properties, offset by any reductions in revenue caused by cancellations or downgrades. Customer Net Revenue Retention was 111% 100% as of June September 30, 2026 compared to 108% 113% as of June September 30, 2025.

1 unchanged paragraph

Three months ended June 30,

Six months ended June 30,

Trailing twelve months ended September 30,

2 unchanged paragraphs

Hardware Upgrade Units

Professional services ARPU (2) (1)

2 unchanged paragraphs

Units Booked - TTM (1)

(1) TTM = Trailing 12 months

Units Booked SaaS ARPU (2) (1)

(2) (1) ARPU metrics may vary significantly based on the scope and mix of activity during the period.

(2) Units Deployed is presented as of the last day of the applicable period; all other metrics are presented for the applicable trailing twelve-month period.

Beginning with this Report, we present our key metrics on a trailing twelve-month basis rather than for the quarterly and year-to-date periods presented in our prior Quarterly Reports on Form 10-Q. As our business has evolved, we have continued to evaluate how best to present our key metrics to provide meaningful insight into our operating performance. The timing, scope and mix of bookings and deployments can result in variability in our key metrics from quarter to quarter. Given the length of our sales cycle and variability in the timing of customer decisions and orders, we believe a trailing twelve-month presentation provides a more meaningful basis for evaluating trends in our business. We have presented our key metrics for the trailing twelve months ended September 30, 2025 on the same basis as the current-period TTM metrics. Key metrics for prior quarterly and year-to-date periods are available in our previously filed Quarterly Reports on Form 10-Q.

To facilitate comparability and provide additional context regarding the transition to a TTM presentation, the following table presents supplemental historical key metrics.

Trailing twelve months ended

Hardware Units Shipped

Professional Services

Hardware Upgrade Units

Professional services ARPU (1)

Average aggregate units deployed

Bookings (in thousands) - TTM (1)

Units Booked SaaS ARPU - TTM (1)(2) (1)

(1) ARPU metrics may vary significantly based on scope and mix during the period.

(2) Units Deployed is presented as of the last date of the applicable period.

2 unchanged paragraphs

For the six months ended June 30,

For the three months ended June September 30,

For the nine months ended September 30,

9 unchanged paragraphs

(1) During the first quarter of 2026, we revised the presentation of the above table by aggregating Community WiFi revenue in Other as revenue from our Community WiFi solution is becoming less significant. The revised presentation has been applied retrospectively for the comparative periods ended June September 30, 2025. For the three months ended June September 30, 2026 and 2025, total revenue attributable to Community WiFi was $262 $47 and $304, $450, respectively. For the three months ended June September 30, 2025, revenue attributable to Community WiFi was $54 $94 related to Hardware, $41 $164 related to Professional Services and $209 $192 related to Hosted Services. For the six nine months ended June September 30, 2026 and 2025, total revenue attributable to Community WiFi was $452 $499 and $718, $1,168, respectively. For the six nine months ended June September 30, 2025, revenue attributable to Community WiFi was $57 $151 related to Hardware, $259 $423 related to Professional Services and $402 $594 related to Hosted Services.

(2) For the three months ended June September 30, 2026 and 2025, Hosted services revenue for our Smart Apartments solution Communities Solutions included hub amortization revenue of $1,456 $877 and $4,619, $3,424, respectively. For the six nine months ended June September 30, 2026 and 2025, Hosted services revenue for our Smart Apartments solution Communities Solutions included hub amortization revenue of $3,506 $4,383 and $9,277, $12,701, respectively.

4 unchanged paragraphs

We generate hosted services revenue from (1) the direct sale to our customers of hosted services from subscription fees collected from customers to provide access to one or more of our software applications including access controls, asset monitoring WiFi, and related services ("Hosted Services") and (2) the amortization of non-distinct Hub Devices. These subscription arrangements have contractual terms ranging from one month to ten years and include recurring fixed plan subscription fees. The weighted average length of our recurring revenue contracts is 3.9 3.8 years. Our arrangements do not provide the customer with the right to take possession of our software at any time. Customers are granted continuous access to the services over the contractual period. Accordingly, fees collected for subscription services are recognized on a straight-line basis over the contract term beginning on the date the subscription service is made available to the customer.

1 unchanged paragraph

Cost of revenue consists primarily of direct costs of products and services together with the indirect cost of estimated warranty expense and customer care and support over the life of the service arrangement. We expect the cost of revenue to increase in absolute dollars in future periods commensurate with increases in revenue. the volume of our business. We record any change to cost of job performance and job conditions in the period during which the revision is identified.

Cost of hardware revenue consists primarily of direct costs of products, Hub Devices, hardware devices and supplies purchased from third-party providers, shipping costs, warehouse facility (including depreciation and amortization of capitalized assets and right-of-use assets) and infrastructure costs, personnel-related costs associated with the procurement and distribution of our products and estimated warranty expenses together with the indirect cost of customer care and support. We expect an increase in cost of hardware revenue in absolute dollars in future periods commensurate with increases in the volume of our business. Hardware revenue margins may vary in future periods due to a number of factors including changes to the cost of the goods and services detailed above, changes to the product mix and tariffs.

Tariffs imposed by the U.S. government since 2019, especially with respect to China, have subjected certain SmartRent products manufactured overseas to additional volatility of import duties. The amount of the import tariff has changed numerous times based on various geopolitical factors including actions by the U.S. government. The U.S. government has implemented and threatened further increases to tariffs Future changes in 2025 on imports from countries such as Canada, Mexico and China. Such actions trade policy may increase our cost of hardware revenue and reduce our hardware revenue margins. in the future. We continue to monitor and evaluate changes in policy impacting global trade, including tariff regulations.

1 unchanged paragraph

Cost of professional services revenue consists primarily of direct costs related to personnel-related expenses for installation and supervision of installation services, general contractor expenses and travel expenses associated with installation of our products, and indirect costs that are also primarily personnel-related expenses in connection with training of and ongoing support for customers and residents. We expect an increase in cost of professional services revenue in absolute dollars in future periods commensurate with increases in the volume of our business. Professional services revenue margins may vary in future periods due to a number of factors including changes to the cost of the services detailed above and changes to the product mix.

2 unchanged paragraphs

Research and development expenses consist primarily of personnel-related costs directly associated with our research and development activities. Our research and development efforts are focused on enhancing and developing additional functionality and security for our existing products and on new product development. We account for the cost of research and development by capitalizing qualifying costs, which are incurred during the product development stage, and amortizing those costs over the product's estimated useful life, which generally ranges from three to five years depending on the type of application. Costs incurred and capitalized during the product development stage generally include the costs of software configuration, coding, and testing. Such costs primarily include payroll and payroll-related expenses for employees directly involved in the product development. We expense preliminary evaluation costs as they are incurred before technological feasibility is achieved, as well as post development implementation and operation costs, such as training, maintenance and minor upgrades. We begin amortizing capitalized costs when a project is ready for its intended use, and we periodically reassess the estimated useful life of a project considering the effects of obsolescence, technology, competition and other economic factors which may result in a shorter remaining life. We believe our research and development costs will increase in absolute dollars as we increase our investment in product development to broaden the capabilities of our solutions and introduce new products and features.

6 unchanged paragraphs

Other income/expenses consist primarily of interest income, net of interest expense, foreign currency transaction gains and losses, and other income related to the operations of foreign subsidiaries. Interest expense is recorded in connection with our various debt facilities. Foreign currency transaction gains and losses relate to the impact of transactions denominated in a foreign currency other than the U.S. dollar. If we continue to expand our international operations, our exposure to fluctuations in foreign currencies has increased, which we expect to continue. will increase.

2 unchanged paragraphs

Results of Operations for the Three and Six Nine Months Ended June September 30, 2026 and 2025

1 unchanged paragraph

Six months ended June 30,

Three months ended June September 30,

Nine months ended September 30,

12 unchanged paragraphs

Six months ended June 30,

Comparison of the three and six nine months ended June September 30, 2026 and 2025

Three months ended June September 30,

Nine months ended September 30,

3 unchanged paragraphs

Total revenue decreased by approximately $1.2 million, or 1%, to $78.5 million for the six months ended June 30, 2026, from $79.7 million for the six months ended June 30, 2025. Hosted Services revenue from hub amortization decreased by approximately $5.7 million. Further, the decrease in total revenue was primarily driven by a 19% decrease in Units Shipped to 56,715 for the six months ended June 30, 2026 from 69,961 for the six months ended June 30, 2025, offset by a 21% increase in Professional Services ARPU to $475 for the six months ended June 30, 2026 from $392 for the six months ended June 30, 2025 primarily driven by an increase of $3.0 million related to the installation of hub upgrades. Hosted Services revenue from SaaS increased by $3.1 million from the six months ended June 30, 2025 to the six months ended June 30, 2026.

Hardware revenue decreased by $1.5 million, or 10%, to $13.6 million for the three months ended June 30, 2026, from $15.1 million for the three months ended June 30, 2025. This decrease in hardware revenue was primarily driven by a 12% decrease in Units Shipped to 23,249 for the three months ended June 30, 2026 from 26,543 for the three months ended June 30, 2025.

Hardware revenue decreased by $5.0 million, or 15%, to $29.0 million for the six months ended June 30, 2026, from $34.0 million for the six months ended June 30, 2025. This decrease in hardware revenue was primarily driven by a 19% decrease in Units Shipped to 56,715 for the six months ended June 30, 2026 from 69,961 for the six months ended June 30, 2025.

Total revenue increased by $1.5 $5.4 million, or 4%, 15%, to $39.8 $41.6 million for the three months ended June September 30, 2026, from $38.3 $36.2 million for the three months ended June September 30, 2025. The increase was primarily driven by a 59% increase in Professional Services ARPU to $580 for the three months ended June 30, 2026 from $365 for the three months ended June 30, 2025 primarily driven by an 53% increase of $2.5 million related to the installation of hub upgrades. This was partially offset by a 12% decrease in Units Shipped to 23,249 30,705 for the three months ended June September 30, 2026 from 26,543 20,047 for the three months ended June September 30, 2025. Hosted Services revenue from hub amortization decreased by approximately $3.1 $2.6 million and revenue from SaaS increased by $1.9 $1.5 million from the three months ended June September 30, 2025 to the three months ended June September 30, 2026.

Professional services Total revenue increased by approximately $6.5 $4.2 million, or 78%, 4%, to $14.7 $120.1 million for the six nine months ended June September 30, 2026, from $8.2 $115.9 million for the six nine months ended June September 30, 2025. The increase in professional services revenue was primarily driven by a 21% an 18% increase in Professional Services ARPU to $475 $490 for the six nine months ended June September 30, 2026 from $392 $416 for the six nine months ended June September 30, 2025 primarily due to driven by an increase of $3.0 $2.9 million related to the installation of hub upgrades and $1.1 $2.0 million related to the installation of access control solutions. Hosted Services revenue from hub amortization decreased by approximately $8.3 million partially offset by an increase in Hosted Services revenue from SaaS of $4.7 million from the nine months ended September 30, 2025 to the nine months ended September 30, 2026. Further, Hardware ARPU increased by 8% to $543 for the nine months ended September 30, 2026 from $505 for the nine months ended September 30, 2025.

Hardware revenue increased by $7.0 million, or 61%, to $18.5 million for the three months ended September 30, 2026, from $11.5 million for the three months ended September 30, 2025. This increase in hardware revenue was primarily driven by a 53% increase in Units Shipped to 30,705 for the three months ended September 30, 2026 from 20,047 for the three months ended September 30, 2025. Further, hardware revenue related to access control solutions increased by $1.8 million and Hardware ARPU increased by 5% to $602 for the three months ended September 30, 2026 from $574 for the three months ended September 30, 2025.

Hardware revenue increased by $2.0 million, or 4%, to $47.5 million for the nine months ended September 30, 2026, from $45.5 million for the nine months ended September 30, 2025. This increase in hardware revenue was primarily driven by a $1.7 million increase in hardware revenue related to access control solutions and an 8% increase in Hardware ARPU to $543 for the nine months ended September 30, 2026 from $505 for the nine months ended September 30, 2025.

Professional services revenue decreased by approximately $0.5 million, or 8%, to $6.5 million for the three months ended September 30, 2026, from $7.0 million for the three months ended September 30, 2025. The decrease in professional services revenue was primarily driven by a 42% decrease in New Units Deployed, to 13,044 during the three months ended September 30, 2026 from 22,644 for the three months ended September 30, 2025. This was partially offset by a $0.9 million increase in professional services revenue related to access control solutions and a 17% increase in Professional Services ARPU to $525 for the three months ended September 30, 2026 from $449 for the three months ended September 30, 2025.

Professional services revenue increased by $4.3 approximately $5.8 million, or 100%, 39%, to $8.6 $21.1 million for the three nine months ended June September 30, 2026, from $4.3 $15.3 million for the three nine months ended June September 30, 2025. The increase in professional services revenue was primarily driven by a 59% an 18% increase in Professional Services ARPU to $580 $490 for the three nine months ended June September 30, 2026 from $365 $416 for the three nine months ended June September 30, 2025 primarily driven by largely due to an increase of $2.5 $2.9 million related to the installation of hub upgrades and $0.6 $2.0 million related to the installation of access control solutions.

Hosted Services revenue decreased by approximately $1.2 $1.1 million, or 7%, 6%, to $17.6 $16.6 million for the three months ended June September 30, 2026, from $18.8 $17.7 million for the three months ended June September 30, 2025. Of the $17.6 $16.6 million revenue in 2026, $16.1 $15.7 million is related to SaaS Revenue and $1.5 $0.9 million is related to hub amortization. Revenue from hub amortization decreased by $3.1 $2.6 million and revenue from SaaS increased by $1.9 $1.5 million, or 13%, 11%, from the three months ended June September 30, 2025 to the three months ended June September 30, 2026. The increase of SaaS Revenue resulted primarily from a 10% an 8% increase in the aggregate number of Units Deployed from 847,956 870,230 units at June September 30, 2025 to 929,487 941,977 units at June September 30, 2026.

Hosted Services revenue decreased by $2.6 approximately $3.6 million, or 7%, to $34.9 $51.5 million for the six nine months ended June September 30, 2026, from $37.5 $55.1 million for the six nine months ended June September 30, 2025. Of the $34.9 $51.5 million revenue in 2026, $31.3 $47.1 million is related to SaaS Revenue and $3.6 $4.4 million is related to hub amortization. Revenue from hub amortization decreased by approximately $5.7 $8.3 million and revenue from SaaS increased by $3.1 $4.7 million, or 11%, from the six nine months ended June September 30, 2025 to the six nine months ended June September 30, 2026. The increase of SaaS Revenue resulted primarily from a 10% an 8% increase in the aggregate number of Units Deployed from 847,956 870,230 units at June September 30, 2025 to 929,487 941,977 units at June September 30, 2026.

We don't do not expect to deploy any more non-distinct Hub Devices, thus, the revenue contribution from hub amortization should continue to decrease in future periods until the non-distinct Hub Devices are fully amortized. As noted above, revenue from hub amortization decreased by approximately $5.7 $8.3 million from the six nine months ended June September 30, 2025 to the six nine months ended June September 30, 2026. During the remainder of 2026, hub amortization is expected to further decrease by $4.8 $2.3 million compared to the same periods in 2025. The table below shows the expected revenue contribution from hub amortization.

2 unchanged paragraphs

Six months ended June 30,

(1) Q1, and Q2 and Q3 2026 are actual.

4 unchanged paragraphs

4 unchanged paragraphs

1 unchanged paragraph

2 unchanged paragraphs

2 unchanged paragraphs

4 unchanged paragraphs

6 unchanged paragraphs

3 unchanged paragraphs

6 unchanged paragraphs

2 unchanged paragraphs

2 unchanged paragraphs

1 unchanged paragraph

1 unchanged paragraph

5 unchanged paragraphs

1 unchanged paragraph

1 unchanged paragraph

1 unchanged paragraph

3 unchanged paragraphs

4 unchanged paragraphs

1 unchanged paragraph

2 unchanged paragraphs

5 unchanged paragraphs

2 unchanged paragraphs

and 73 more changes in the filing

Market risk 1 change

3 unchanged paragraphs

As of June September 30, 2026, we had cash and cash equivalents of approximately $92.7 $89.2 million, which consisted primarily of institutional money market funds, which carries a degree of interest rate risk. A hypothetical 10% change in interest rates would increase our annual interest income by $9.3 $8.9 million, or decrease our annual interest income by $3.4 $0.4 million, based on our cash position as of June September 30, 2026.

2 unchanged paragraphs

Controls and procedures 2 changes

1 unchanged paragraph

Our management, with the participation of our President and Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Report. Based on such evaluation, our President and Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of June September 30, 2026, at the reasonable assurance level to ensure that the information required to be disclosed by us in this Report was (i) recorded, processed, summarized and reported within the time periods specified in the SEC's rules and regulations and (ii) accumulated and communicated to our management, including our President and Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

1 unchanged paragraph

There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the three months ended June September 30, 2026, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

1 unchanged paragraph

Risk factors 8 changes

2 unchanged paragraphs

The following table summarizes the share repurchase activity for the three months ended June September 30, 2026.

5 unchanged paragraphs

April 1 - April 30, 2026

May 1 - May 31, 2026

June 1 - June 30, 2026

July 1 - July 31, 2026

August 1 - August 31, 2026

September 1 - September 30, 2026

(1) In March 2024, July 2026, our board of directors authorized the repurchase of up to $50,000,000 $25,000,000 of our Class A common stock. Repurchases under the program can be made through open market transactions, privately negotiated transactions and other means in compliance with applicable federal securities laws, including through Rule 10b5-1 plans. We have discretion in determining the conditions under which shares may be repurchased from time to time. The repurchase program does not have an expiration date and may be suspended at any time at our discretion. Refer to Note 7 — Convertible Preferred Stock and Equity in Part I, Item 1 of this Report for additional information related to share repurchases.

1 unchanged paragraph

Other information 1 change

1 unchanged paragraph

During the three months ended June September 30, 2026 , none of our directors or executive officers adopted , modified or terminated any "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement" (each as defined in Item 408 of Regulation S-K).

Exhibits 1 change

16 unchanged paragraphs

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Quarterly Report on Form 10-Q to be signed on its behalf by the undersigned, thereunto duly authorized, on this 5th 4th day of August November 2026.

4 unchanged paragraphs