Editor’s note: This Q&A is part of a series of interviews with industry professionals focused on their predictions for the year ahead. Additional insights from integrators and executives on what to expect in 2026 will follow.
In an interview with CE Pro, Daisy CEO Hagan Kappler says integrator success in 2026 will hinge on disciplined profitability and recurring service revenue rather than pure growth. She emphasizes the shift toward proactive, service-first business models supported by smarter platforms and AI, notes that homeowners will increasingly expect simplicity and ongoing system management, and warns that firms clinging to outdated operating models risk falling behind as structural industry changes accelerate.
CE Pro: What will define success for integrators in 2026?
Hagan Kappler: Success in 2026 will be defined by repeatable and profitable performance, not just top-line growth. The integrators who thrive will be the ones who generate reliable cash through disciplined project execution, predictable service revenue, and strong cost control.
Growth without strong cash margins is no longer sustainable. Integrators need visibility into job profitability, tighter billing cycles, and service models that smooth cash flow across the year. Those who combine strong cash fundamentals with consistent client experiences will be best positioned to invest in people, technology, and expansion.
CE Pro: Which category is poised for the biggest shift next year?
Kappler: The biggest shift will continue to be in service and support, but increasingly tied to financial discipline.
Service programs are evolving from a nice-to-have into a core business engine that drives recurring revenue, improves technician utilization, and stabilizes cash flow. Recurring service also makes businesses more valuable. Remote monitoring, faster response times, and proactive system care are becoming expected, not optional.
This is also where technology can shine. Smarter platforms, better diagnostics, and AI allow integrators to do more with the same team while delivering a higher level of service.
CE Pro: What are homeowners going to demand that they’re not asking for yet?
Kappler: Homeowners are going to demand confidence, continuity, and simplicity.
They want assurance that their systems will work, that help is easy to reach, and that their home technology will evolve with them. They will increasingly expect integrators to proactively manage their systems rather than just react to problems. They will want technology curators instead of installers.
CE Pro: What’s the biggest business mistake integrators could make in 2026?
Kappler: The biggest mistake would be trying to run tomorrow’s business with yesterday’s model.
The forces reshaping our industry are not incremental, they’re structural. Small screens are overtaking traditional theaters. AI is fundamentally changing how work gets done. The middle market is thinning. Robotics are coming faster than expected. Younger employees bring different expectations around work, purpose, and flexibility. And customers increasingly want ongoing service and guidance, not one-time installations.
Change will move faster in 2026 than it ever has. Integrators who cling to past assumptions will fall behind quickly. The winners will be those who stay lean, adaptable, and willing to rethink how they operate, how they serve customers, and how they build teams in a world that won’t slow down.
CE Pro: Where is the industry overhyping and where is it underestimating 2026?
Kappler: The industry may be overhyping individual technologies while underestimating execution and integration.
New platforms, AI, and connected devices are powerful and exciting, but their value depends on how well they are deployed, supported, and maintained. Technology is an enabler, not the solution on its own.
At the same time, the industry is underestimating opportunities in areas like robotics and other physical products embedded with AI-capabilities, and the role that we as service providers play. Consumers will not be able to take their robots to robot hospitals. They will rely on their technicians to install, set up, train, and service their robots.
Integrators who combine strong operational fundamentals, a service first mindset, and a willingness to embrace emerging technologies will be the ones who truly lead in 2026.
