v3.26.1
Revenue and Deferred Revenue
 6 Months Ended
Jun. 30, 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 June 30,

 

 

For the six months ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenue by geography

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

39,844

 

 

$

38,288

 

 

$

78,465

 

 

$

79,608

 

International

 

 

-

 

 

 

20

 

 

 

62

 

 

 

44

 

Total revenue

 

$

39,844

 

 

$

38,308

 

 

$

78,527

 

 

$

79,652

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended June 30,

 

 

For the six months ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenue by type

 

 

 

 

 

 

 

 

 

 

 

 

Hardware

 

$

13,624

 

 

$

15,143

 

 

$

29,005

 

 

$

33,973

 

Professional services

 

 

8,636

 

 

 

4,327

 

 

 

14,669

 

 

$

8,220

 

Hosted services

 

 

17,584

 

 

 

18,838

 

 

 

34,853

 

 

$

37,459

 

Total revenue

 

$

39,844

 

 

$

38,308

 

 

$

78,527

 

 

$

79,652

 

 

 

 

For the three months ended June 30,

 

 

For the six months ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

(dollars in thousands)

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SmartRent Solutions(1)

 

Hardware

 

Professional Services

 

Hosted Services

 

Total 2026

 

 

Hardware

 

Professional
Services

 

Hosted Services

 

Total 2025

 

 

Hardware

 

Professional
Services

 

Hosted Services

 

Total 2026

 

 

Hardware

 

Professional Services

 

Hosted Services

 

Total 2025

 

Smart Communities Solutions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Smart Apartments

 

$

12,283

 

$

7,567

 

$

13,488

 

$

33,338

 

 

$

13,558

 

$

3,807

 

$

14,609

 

$

31,974

 

 

$

26,654

 

$

12,474

 

$

26,590

 

$

65,718

 

 

$

31,255

 

$

6,801

 

$

29,024

 

$

67,080

 

 Access Control

 

 

1,051

 

 

907

 

 

770

 

 

2,728

 

 

 

1,193

 

 

267

 

 

614

 

 

2,074

 

 

 

1,757

 

 

1,833

 

 

1,513

 

 

5,103

 

 

 

1,832

 

 

743

 

 

1,145

 

 

3,720

 

 Other

 

 

290

 

 

162

 

 

1,032

 

 

1,484

 

 

 

392

 

 

253

 

 

990

 

 

1,635

 

 

 

594

 

 

362

 

 

2,054

 

 

3,010

 

 

 

886

 

 

676

 

 

1,866

 

 

3,428

 

Smart Operations Solutions

 

 

-

 

 

-

 

 

2,294

 

 

2,294

 

 

 

-

 

 

-

 

 

2,625

 

 

2,625

 

 

 

-

 

 

-

 

 

4,696

 

 

4,696

 

 

 

-

 

 

-

 

 

5,424

 

 

5,424

 

 Total Revenue

 

$

13,624

 

$

8,636

 

$

17,584

 

$

39,844

 

 

$

15,143

 

$

4,327

 

$

18,838

 

$

38,308

 

 

$

29,005

 

$

14,669

 

$

34,853

 

$

78,527

 

 

$

33,973

 

$

8,220

 

$

37,459

 

$

79,652

 

(1) For the three and six months ended June 30, 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 periods ended June 30, 2025. For the three months ended June 30, 2026 and 2025, total revenue attributable to Community WiFi was $262 and $304, respectively. For the six months ended June 30, 2026 and 2025, total revenue attributable to Community WiFi was $452 and $718, respectively. For the three months ended June 30, 2025, revenue attributable to Community WiFi was $54 related to Hardware, $41 related to Professional Services and $209 related to Hosted Services. For the six months ended June 30, 2025, revenue attributable to Community WiFi was $57 related to Hardware, $259 related to Professional Services and $402 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 six months ended June 30,

 

 

 

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

 

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

 

 

(8,885

)

 

 

(8,454

)

Revenue deferred during the period

 

 

2,709

 

 

 

6,202

 

Revenue recognized from revenue originated
     and deferred during the period

 

 

(443

)

 

 

(2,982

)

Deferred revenue balance as of June 30

 

 

39,669

 

 

 

66,357

 

 

As of June 30, 2026, the Company expects to recognize 48% of its total deferred revenue within the next 12 months, 21% of its total deferred revenue between 13 and 36 months, 24% 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 June 30, 2026 and 2025 are $7,180 and $13,283, 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.