v3.26.1
Revenue and Deferred Revenue
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
Revenue and Deferred Revenue

NOTE 4. REVENUE AND DEFERRED REVENUE

Disaggregation of Revenue

In the following tables, revenue is disaggregated by primary geographical market, type of revenue, and SmartRent solution.

 

 

 

For the three months ended March 31,

 

 

 

2026

 

 

2025

 

Revenue by geography

 

 

 

 

 

 

United States

 

$

38,621

 

 

$

41,320

 

International

 

 

62

 

 

 

24

 

Total revenue

 

$

38,683

 

 

$

41,344

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended March 31,

 

 

 

2026

 

 

2025

 

Revenue by type

 

 

 

 

 

 

Hardware

 

$

15,381

 

 

$

18,830

 

Professional services

 

 

6,033

 

 

$

3,893

 

Hosted services

 

 

17,269

 

 

$

18,621

 

Total revenue

 

$

38,683

 

 

$

41,344

 

 

 

 

For the three months ended March 31,

 

 

 

2026

 

 

2025

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SmartRent Solutions(1)

 

Hardware

 

Professional
Services

 

Hosted Services

 

Total 2026

 

 

Hardware

 

Professional Services

 

Hosted Services

 

Total 2025

 

Smart Communities Solutions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Smart Apartments

 

$

14,371

 

$

4,907

 

$

13,102

 

$

32,380

 

 

$

17,697

 

$

2,993

 

$

14,415

 

$

35,105

 

 Access Control

 

 

706

 

 

926

 

 

743

 

 

2,375

 

 

 

639

 

 

475

 

 

531

 

 

1,645

 

 Other

 

 

304

 

 

200

 

 

1,022

 

 

1,526

 

 

 

494

 

 

425

 

 

877

 

 

1,796

 

Smart Operations Solutions

 

 

-

 

 

-

 

 

2,402

 

 

2,402

 

 

 

-

 

 

-

 

 

2,798

 

 

2,798

 

 Total Revenue

 

$

15,381

 

$

6,033

 

$

17,269

 

$

38,683

 

 

$

18,830

 

$

3,893

 

$

18,621

 

$

41,344

 

(1) During the three months ended March 31, 2026, the Company revised the presentation of the above table by aggregating Community WiFi revenue in Other as revenue from the Company's Community WiFi solution is becoming less significant. The revised presentation has been applied retrospectively for the comparative period ended March 31, 2025. For the three months ended March 31, 2026, total revenue attributable to Community WiFi was $190. For the three months ended March 31, 2025, revenue attributable to Community WiFi was $3 related to Hardware, $219 related to Professional Services and $193 related to Hosted Services.

 

Remaining Performance Obligations

Advance payments received from customers are recorded as deferred revenue and are recognized upon the completion of related performance obligations over the period of service. Advance payments for non-distinct Hub Devices were recorded as deferred revenue and recognized over their average in-service life. Advance payments received from customers for subscription services are recorded as deferred revenue and recognized over the term of the subscription. A summary of the change in deferred revenue is as follows.

 

 

For the three months ended March 31,

 

 

 

2026

 

 

2025

 

Deferred revenue balance as of January 1

 

$

55,934

 

 

$

87,659

 

Revenue recognized from balance of deferred revenue
      at the beginning of the period

 

 

(11,075

)

 

 

(21,448

)

Revenue deferred during the period

 

 

1,546

 

 

 

6,187

 

Revenue recognized from revenue originated
     and deferred during the period

 

 

(117

)

 

 

(807

)

Deferred revenue balance as of March 31

 

 

46,288

 

 

 

71,591

 

 

As of March 31, 2026, the Company expects to recognize 54% of its total deferred revenue within the next 12 months, 34% of its total deferred revenue between 13 and 36 months, 11% between 37 and 60 months, and the remainder is expected to be recognized beyond five years. Contracts may contain termination for convenience provisions that allow the Company, customer, or both parties the ability to terminate for convenience, either at any time or upon providing a specified notice period, without a substantive termination penalty. Included in deferred revenue as of March 31, 2026 and 2025 are $9,054 and $14,337, respectively, of prepaid fees related to contracts with termination for convenience provisions which are refundable at the request of the customer. Based on the Company's historical experience, customers do not typically exercise their termination for convenience rights. Deferred cost of revenue includes all direct costs included in cost of revenue that have been deferred to future periods.