SmartRent, Inc.

Hello, everyone. Thank you for joining us and welcome to the Smart Rent Second Quarter 2026 Earnings Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Kelly Reisdorf, Head of Investor Relations. Kelly, please go ahead.

Kelly Reisdorf, Head of Investor Relations for SmartRent Transcription by CastingWords Thank you for listening. Thank you for joining us. A discussion of these non-GAAP financial measures, along with a 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, and thank you for joining us. Today I'm going to discuss the more significant operational and financial highlights from the quarter from my point of view. Daryl will conclude our prepared remarks with a more detailed discussion of our Q2 financial results. By almost every measure, SmartRent delivered strong progress in the second quarter as we continue to stay laser-focused on realizing the full benefits outlined in our Vision 2028 strategic plan. As you may recall, Vision 2028 focuses on two priorities. Thank you for joining us today. I believe our second quarter results clearly demonstrate the value creation opportunities inherent in our growing market leadership and aggressive execution of Vision 2028. I will now take a couple of minutes to summarize key proof points highlighted in our second quarter results. First, we accelerated revenue and bookings growth attributable to our best-in-class IoT, access control, and self-guided tour solutions. Our core revenues grew 14%, marking our highest quarterly growth rate in over two years. This double-digit growth builds on our progress from the fourth quarter of 2025 when core revenues grew 12%. SaaS revenues in Q2 grew 13%. and now represent more than 40% of total revenue. ARR increased year-over-year from $57 million to $65 million, reflecting continued expansion of our IoT footprint and increased demand for our highly regarded access control and self-guided tour offerings. In the second quarter, we expanded our installed IoT footprint by 10% to nearly 930,000 units. On a trailing 12-month basis, units booked accelerated from 80,000 in the second quarter of last year to over 112,000 this quarter, which is a 40% increase. Given the significant acceleration of units booked over the last 12 months, I believe we're in a strong position to exceed 1 million units installed during the first half of next year. The scaling of our installed base beyond 1 million units should create a new inflection point for our business from both a growth and a profitability standpoint. In addition to expanding our unit footprint, we are also investing in our data and analytics solutions, which leverage our network of millions of connected devices through investments such as the planned launch of the Smart Rent Innovation Center and our recently announced strategic collaborations with Hexaware and Databricks. As we look forward, we will continue to actively pursue opportunities to expand our footprint and our solutions that drive measurable returns for our customers. A key example is our upcoming launch of a dedicated data and analytics practice. With millions of connected devices across our network, I believe SmartRent is uniquely positioned to translate real-time data into actual insights, which will power ROI for our customers across such areas as energy efficiency, water conservation, and risk management. To power this practice, we are anchoring our tech stack on industry-leading platforms including Databricks as a core component of our technology layer. A high-impact data and analytics practice represents a sizable strategic tailwind opportunity for smart rent. By layering high-value insights powered by our unmatched device footprint, we anticipate being able to expand our total addressable market, drive ARPU growth, and deepen our competitive moat. We believe that we've never been better positioned to execute on the opportunities ahead. In addition to accelerating top-line growth, Thank you for watching. Looking ahead, our recently announced partnership with Hexaware is expected to contribute to additional margin expansion while accelerating the deployment of AI tools in our operating processes. We are continuing to progress towards consistently positive adjusted EBITDA and free cash flow. Higher revenues, including increased SaaS contributions, as well as our focus on operational rigor, is fueling our rapid progress. Q2 was our third consecutive quarter of positive adjusted EBITDA. As Daryl will discuss in more detail in a few minutes, we continue to maintain a Fortress balance sheet that provides significant financial flexibility to fund our Vision 2028 priorities. During the second quarter, we deployed a portion of our cash war chest to repurchase 1.5% of our outstanding shares. We also recently expanded our share repurchase authorization to $25 million to support future repurchases as warranted. I believe the second quarter provides many clear proof points of our progress, both strategically and operationally. Over the last several quarters, we have demonstrated our ability to deliver accelerating growth as well as expanding margins and profitability while maintaining significant capital reserves. As the trusted partner to over 600 multi- and single-family rental owners and operators, SmartRent is the clear, proven choice For any owner or operator that is looking to adopt and reap the benefits of smart home technology. In conclusion, I want to thank our employees for driving rapid and positive progress against our Vision 2020 priorities and pillars and our shareholders for their continued support. I will now turn the floor over to Daryl.