SmartRent, Inc.

Hello, everyone. Thank you for joining us and welcome to Smart Rent first quarter 2026 earnings release. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Kelly Reisdorf, head of investor relations. Please go ahead.

Thank you for joining us today. Before I turn the call over to Frank, I would like to remind everyone that the discussion today may contain certain forward-looking statements that involve risks and uncertainties. Various factors could cause our actual results to be materially different from any future results expressed or implied by such statements. These factors are discussed in our SEC filings, including in our annual report on Form 10-K and quarterly reports on Form 10-Q. We undertake no obligation to provide updates regarding forward-looking statements made during this call, and we recommend that all investors review these reports thoroughly before taking a financial position in SmartRent. Also, during today's call, we will refer to certain non-GAAP financial measures. A discussion of these non-GAAP financial measures along with the reconciliation to the most directly comparable GAAP measure is included in today's earnings release. We would also like to highlight that our quarterly earnings presentation is available on the investor relations section of our website. And with that, I will turn the call over to Frank.

Good morning, everyone. My remarks today are going to focus on the more notable financial and operational accomplishments the team delivered in the first quarter. This progress builds on the momentum we achieved in the second half of 2025. I will also provide some important color on the progress that we're making driving our imperatives that underpin our Vision 2028 strategic plan. Darrell will close out our prepared remarks today with a more detailed financial discussion. Over the past three quarters, we have focused aggressively on strengthening our leadership team, right-sizing our cost structure, driving increasing levels of operating leverage through process reengineering and automation, And finally, investing in our go-to-market and technology capabilities. I believe that the benefits of this focus were evident in our first quarter operating and financial results. From my point of view, some of the more important proof points of our progress in Q1 are the following. First, we grew our IoT footprint 10% in Q1 from the prior year. At the end of March, SmartRent's industry-leading IoT technology solutions are now deployed in over 911,000 rental units across the U.S. These units provide our owner and operator customers with a proven rate of return on their investment, while significantly enhancing the experience of their residents. We expect to eclipse the 1 million level for IoT unit installations in the first half of 2027. Second, ARR revenue grew 9% year over year to $61 million, or approximately 39% of our total revenue. We expect to drive higher levels of ARR and profitability over the medium to longer term as we continue to expand our deployed IoT footprint. Third, Gross profit and margin for Q1 totaled 15 million and 39% respectively. Gross margins were up 630 basis points in Q1. The upswing in gross profit and margins were driven by a 15% year-over-year reduction in costs of sales and a 32% reduction in operating expenses. Fourth, we delivered positive adjusted EBITDA of approximately $0.4 million in Q1. This was our second consecutive quarter of positive adjusted EBITDA. Our net loss on a gap basis fell from $40 million to $4 million year over year, benefiting from significantly lower cost run rates and a 2025 non-cash impairment charge that has no counterpart in Q1 of 2026. And finally, we ended March with $99 million of cash and no debt, providing us with the financial flexibility to execute against Vision 2028 with confidence. Our focus and accomplishments so far in 2026 are part of a longer-term strategy which we call Vision 2028. I discussed Vision 2028 in some depth on our last earnings call. As you may remember, it's a three-year program built around two clear priorities. First, accelerating profitable growth by expanding our installed IoT footprint at a compound double-digit growth rate from 2026 through 2028. And at the same time, expanding our portfolio of data-driven insights and solutions that deliver industry-leading customer ROI. And second, achieving higher levels of profitability and cash flow through accelerated growth and a highly scalable operating model. We will operationalize these priorities through the execution of five strategic pillars. First, growing our installed base at a double-digit pace. Second, scaling a world-class go-to-market organization. Third, deepening platform integration with data, analytics, and AI. Fourth, simplifying our hardware architecture while investing in next generation capabilities. And lastly, strengthening our internal operating rigor to drive sustainable profit and free cash flow. I will provide more detail on each of these strategic pillars during subsequent calls. On this call, I plan to touch on our focus relative to accelerating profitable growth. Specifically, I believe that SmartRent has a number of significant opportunities in the following areas. Our first opportunity is centered around deepening our penetration within the portfolios of our existing customers. Currently, our installed base of 911,000 IoT units serves roughly 600 customers who collectively own or control more than 6 million units in the U.S. That means we have deployed smart technology in roughly 15% of the addressable portfolio within our existing customer base, and 85% remains a significant expansion opportunity. Our March to 1 Million initiative is first and foremost a story about converting that white space. As our install base matures, we are also focused on a second key growth opportunity, which is establishing a cadence of hardware refresh cycles, which is a natural milestone for a platform at our scale and one that deepens our relationships with our longest-tenured customers. Our IoT platform currently stands at over 911,000 units installed with smart hubs connected to more than 3 million devices across approximately 3,500 properties. Equipment deployed in the company's early years are now approaching end of life. we are working proactively with customers to plan on refreshes in an organized way. This ensures customers continue to benefit from our latest hardware and insights, and it gives SmartRent a sizable hardware revenue cadence as the business matures and equipment is replaced. The third opportunity we have is expanding our reach to small and medium multifamily owners and operators, as well as merchant builders. Through a dedicated SmartRent team, supplemented by the Value-Added Reseller, or VAR, program that we recently launched. That program is designed to access this opportunity in a capital-efficient way, leveraging partners with established market presence rather than scaling a direct sales force to effectively address this segment. And our fourth growth opportunity is expanding our software and hardware solution sets that are powered by AI, as well as our unique data repository. SmartRent's market leadership has been built on delivering measurable and significant ROI for its customers. We believe that we can expand the benefits within our existing footprint and for new customers through the introduction of solutions that leverage the unique insights from our data collected from millions of connected devices. We're accelerating our use of AI and other techniques that make the adoption of additional solutions in the near to medium term a significant opportunity for the company. Looking forward to the remainder of this year, we remain laser focused on expanding our footprint of installed IoT units in line with our March to 1 million program. Despite current market headwinds, we are pushing to accelerate the growth of our core revenues while delivering positive adjusted EBITDA and cash flow for the full year. In terms of the market, although many of our customers remain cautious, we believe our solutions provide compelling ROI in all market conditions and that the long-term demand picture for our platform remains positive as market fundamentals gradually improve. Dara will provide additional color around market conditions in a couple of minutes. To wrap up my prepared remarks today, I want to acknowledge the hard work and dedication of the Smart Rent team, as well as the support of our shareholders. Over the past three quarters, we've made significant progress on many critical fronts and are now increasingly well positioned to achieve our goals that we have outlined in our Vision 2028 Strategic Plan. With that said, I'll now turn the call over to Daryl.