v3.26.3
Revenue and Deferred Revenue
 9 Months Ended
Sep. 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 September 30,

 

 

For the nine months ended September 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenue by geography

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

41,566

 

 

$

36,097

 

 

$

120,031

 

 

$

115,705

 

International

 

 

-

 

 

 

105

 

 

 

62

 

 

 

149

 

Total revenue

 

$

41,566

 

 

$

36,202

 

 

$

120,093

 

 

$

115,854

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended September 30,

 

 

For the nine months ended September 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenue by type

 

 

 

 

 

 

 

 

 

 

 

 

Hardware

 

$

18,492

 

 

$

11,506

 

 

$

47,497

 

 

$

45,479

 

Professional services

 

 

6,469

 

 

 

7,035

 

 

 

21,138

 

 

 

15,255

 

Hosted services

 

 

16,605

 

 

 

17,661

 

 

 

51,458

 

 

 

55,120

 

Total revenue

 

$

41,566

 

 

$

36,202

 

 

$

120,093

 

 

$

115,854

 

 

 

 

For the three months ended September 30,

 

 

For the nine months ended September 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

 

$

15,792

 

$

4,914

 

$

12,795

 

$

33,501

 

 

$

10,182

 

$

6,137

 

$

13,599

 

$

29,918

 

 

$

42,446

 

$

17,388

 

$

39,385

 

$

99,219

 

 

$

41,437

 

$

12,938

 

$

42,623

 

$

96,998

 

 Access Control

 

 

2,514

 

 

1,373

 

 

819

 

 

4,706

 

 

 

736

 

 

502

 

 

501

 

 

1,739

 

 

 

4,271

 

 

3,206

 

 

2,332

 

 

9,809

 

 

 

2,568

 

 

1,245

 

 

1,646

 

 

5,459

 

 Other

 

 

186

 

 

182

 

 

821

 

 

1,189

 

 

 

588

 

 

396

 

 

929

 

 

1,913

 

 

 

780

 

 

544

 

 

2,875

 

 

4,199

 

 

 

1,474

 

 

1,072

 

 

2,795

 

 

5,341

 

Smart Operations Solutions

 

 

-

 

 

-

 

 

2,170

 

 

2,170

 

 

 

-

 

 

-

 

 

2,632

 

 

2,632

 

 

 

-

 

 

-

 

 

6,866

 

 

6,866

 

 

 

-

 

 

-

 

 

8,056

 

 

8,056

 

 Total Revenue

 

$

18,492

 

$

6,469

 

$

16,605

 

$

41,566

 

 

$

11,506

 

$

7,035

 

$

17,661

 

$

36,202

 

 

$

47,497

 

$

21,138

 

$

51,458

 

$

120,093

 

 

$

45,479

 

$

15,255

 

$

55,120

 

$

115,854

 

(1) For the three and nine months ended September 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 September 30, 2025. For the three months ended September 30, 2026 and 2025, total revenue attributable to Community WiFi was $47 and $450, respectively. For the nine months ended September 30, 2026 and 2025, total revenue attributable to Community WiFi was $499 and $1,168, respectively. For the three months ended September 30, 2025, revenue attributable to Community WiFi was $94 related to Hardware, $164 related to Professional Services and $192 related to Hosted Services. For the nine months ended September 30, 2025, revenue attributable to Community WiFi was $151 related to Hardware, $423 related to Professional Services and $594 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 nine months ended September 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

 

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

 

 

(3,292

)

 

 

(7,321

)

Revenue deferred during the period

 

 

2,715

 

 

 

847

 

Revenue recognized from revenue originated
     and deferred during the period

 

 

(1,022

)

 

 

(1,127

)

Deferred revenue balance as of September 30

 

$

38,070

 

 

$

58,756

 

 

As of September 30, 2026, the Company expects to recognize 46% of its total deferred revenue within the next 12 months, 21% of its total deferred revenue between 13 and 36 months, 25% 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 September 30, 2026 and 2025 are $6,413 and $12,533, 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.