What happened?
Shares of smart home company SmartRent (NYSE: SMRT) jumped 15.8% in the afternoon session after the company reported third-quarter 2026 financial results, including a 15% increase in total revenue to $41.6 million.
According to a company press release, SmartRent reported that gross margin for the period expanded by 1,470 basis points from the previous year to 41%, and adjusted EBITDA reached $1.1 million. Third-quarter core revenue was $40.7 million, representing a 24% increase compared with the previous year.
In addition, the company recorded an 11% increase in annual recurring revenue for the third quarter of 2026.
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What is the market telling us
SmartRent’s shares are extremely volatile and have had 30 moves greater than 5% over the last year. But moves this big are rare even for SmartRent and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 11 months ago when the stock gained 8.3% on the news that top executives disclosed significant purchases of company stock, signaling strong insider confidence in its future. CEO Frank Martell acquired 47,278 shares for a total of $79,715 through a family trust. Adding to this, Director Thomas Bohjalian also bought 50,000 shares, an investment valued at approximately $84,000. These kinds of purchases by a company's own leadership are often viewed by investors as a positive sign. They suggest that those with the most insight into the company's operations believe the shares have potential to grow.
SmartRent is down 15.8% since the beginning of the year, and at $1.63 per share, it is trading 23.3% below its 52-week high of $2.12 from December 2025. Investors who bought $1,000 worth of SmartRent’s shares 5 years ago would now be looking at only $124.14.
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