SmartRent Receives NYSE Non-Compliance Notice: What Investors Need to Know
SmartRent, Inc. (NYSE: SMRT), a trailblazer in smart communities and operations solutions for the rental housing industry, announced on May 2, 2025, that it received a notice from the New York Stock Exchange (NYSE) regarding its non-compliance with Section 802.01C of the NYSE Listed Company Manual. The issue stems from the company’s Class A common stock maintaining an average closing price below $1.00 over a consecutive 30 trading-day period as of May 2, 2025.
This notification does not immediately affect the listing status of SmartRent’s stock, which will continue to trade on the NYSE during a six-month cure period. However, it underscores the importance of addressing the minimum share price requirement to ensure continued compliance with the exchange’s standards.
What Does This Mean for SmartRent?
The NYSE’s notice serves as a formal alert to companies falling below the minimum share price threshold. It is a regulatory step designed to give businesses a chance to rectify the situation before facing suspension or delisting. For SmartRent, this means the company must take action within the next six months to regain compliance.
To address the issue, SmartRent plans to notify the NYSE of its intent to resolve the deficiency. Potential measures could include implementing a reverse stock split, subject to approval by the company’s board of directors and shareholders. A reverse stock split consolidates shares, effectively increasing the stock price while reducing the total number of outstanding shares. This strategy is commonly used by companies to meet exchange requirements.
For SmartRent to regain compliance, the company’s Class A common stock must achieve a closing price of at least $1.00 on the last trading day of any calendar month during the cure period. Additionally, the average closing price over the preceding 30 trading days must also meet or exceed $1.00. If the company fails to meet these conditions, its stock may face suspension and eventual delisting from the NYSE.
No Immediate Impact on Trading
Investors can rest assured that SmartRent’s stock will remain listed and available for trading during the six-month cure period. The NYSE allows companies this timeframe to demonstrate their ability to meet listing requirements. During this period, SmartRent will actively monitor its stock performance and explore all viable options to address the deficiency.
While the notice does not directly impact daily operations, it highlights the need for strategic financial planning. Investors should stay informed about any updates from the company, particularly regarding decisions such as a potential reverse stock split.
Who Is SmartRent?
Founded in 2017, SmartRent has quickly become a leader in providing innovative technology solutions tailored to the rental housing sector. Its end-to-end enterprise ecosystem streamlines operations, enhances security, reduces energy consumption, and improves the resident experience. These capabilities have made SmartRent a go-to provider for many of the largest multifamily operators in the U.S., with 15 of the top 20 operators relying on its platform daily.
SmartRent’s unique combination of purpose-built hardware and software, coupled with comprehensive implementation and support services, sets it apart in the market. Millions of users benefit from its solutions, which are designed to create smarter, more efficient living and working environments.
For more information about SmartRent’s offerings and mission, visit smartrent.com.
Key Takeaways for Investors
- Temporary Situation: The NYSE notice is a regulatory step, not an immediate threat to SmartRent’s listing. The company has six months to address the issue.
- Potential Solutions: SmartRent may pursue a reverse stock split or other strategies to boost its share price above the $1.00 threshold.
- Ongoing Operations: The company’s business operations remain unaffected, and its stock will continue to trade on the NYSE during the cure period.
- Market Confidence: Investors should monitor updates from SmartRent, particularly regarding steps taken to regain compliance and stabilize its stock price.
Why This Matters for the Rental Housing Industry
SmartRent plays a vital role in modernizing the rental housing sector through its cutting-edge technology. Its solutions help property managers automate tasks, reduce costs, and enhance tenant satisfaction. Maintaining its position as a publicly traded company is crucial for continuing to innovate and expand its reach.
The NYSE’s notice serves as a reminder of the challenges faced by growth-oriented companies in balancing innovation with financial performance. While the current situation requires attention, SmartRent’s track record of delivering value to customers positions it well to navigate this hurdle.
