olivLaw · US equity research
Alarm.com Holdings, Inc. ALRM
Services-Prepackaged Software · SIC 7372 · Vertical: Services-Prepackaged Software (SIC 7372)
Alarm.com is the leading platform for intelligently connected properties, delivering security, video, energy and utility services through a network of service provider partners. The company reported SaaS and license revenue of $689.4 million in fiscal 2025 and raised its 2026 guidance after SaaS growth in the second quarter, a trend that could matter if the pace holds.
At the close of 04 Nov 2026, Alarm.com Holdings, Inc. (ALRM) stock was 67.96 USD (+3.82% on the day), with market capitalisation 3.3 bn USD, P/E 30.8 on diluted EPS of 2.21 USD over the last 12 months, dividend yield 0.00%, beta 0.79, 52-week range 42.13–67.96 USD. Latest reported quarter (Q2 2026): revenue of 277.7 m USD (+9.2% YoY), net income of 24.2 m USD (−29.3% YoY), diluted EPS 0.48 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 78.5
- overbought (≥ 70)
- Bollinger (20, 2)
- 52.55 – 69.68
- in the upper half of the band · %B 0.90 · band width 28.0%
- SMA 50 / 200
- 57.56 / 50.33
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 2.95 / 2.40
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +20.8% | −1.1% | +21.9 pp | — |
| 3 months | +19.9% | −0.5% | +20.4 pp | — |
| 6 months | +49.6% | +4.4% | +45.2 pp | — |
| Year to date | +33.2% | +12.3% | +20.9 pp | — |
| 1 year | +40.1% | +13.5% | +26.6 pp | −1.5% |
| 3 years | +29.9% | +76.4% | −46.5 pp | +3.5% |
| 5 years | −24.1% | +63.7% | −87.8 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 240.5 m | 242.2 m | 238.8 m | 254.3 m | 256.4 m | 261.7 m | 265.2 m | 277.7 m |
| Cost of revenue | 84.7 m | 83.6 m | 78.2 m | 87.5 m | 87.6 m | 89.0 m | 90.5 m | 95.7 m |
| Research & development | 62.2 m | 62.0 m | 68.4 m | 69.1 m | 66.6 m | 66.2 m | 72.1 m | 71.0 m |
| Operating income | 33.2 m | 30.9 m | 29.6 m | 32.0 m | 37.0 m | 34.9 m | 31.6 m | 32.5 m |
| Depreciation & amortisation | 7.6 m | 7.1 m | 7.0 m | 7.5 m | 7.8 m | 8.5 m | 9.1 m | 9.0 m |
| Interest expense | 4.3 m | 4.3 m | 4.3 m | 4.3 m | 4.3 m | 4.3 m | 3.7 m | 3.5 m |
| Pre-tax income | 43.2 m | 39.1 m | 35.0 m | 39.3 m | 47.5 m | 44.7 m | 29.0 m | 31.1 m |
| Income tax | 6.7 m | 8.9 m | 7.3 m | 5.5 m | 15.2 m | 9.7 m | 5.9 m | 7.7 m |
| Net income | 36.7 m | 30.3 m | 27.7 m | 34.2 m | 35.1 m | 34.6 m | 23.4 m | 24.2 m |
| Diluted EPS | 0.67 | 0.56 | 0.52 | 0.63 | 0.65 | 0.61 ≈ | 0.47 | 0.48 |
| Operating cash flow | 77.3 m ≈ | 56.3 m | 24.1 m | 22.7 m ≈ | 70.6 m ≈ | 35.9 m | 50.6 m | 41.9 m ≈ |
| Capex | 2.8 m ≈ | 2.3 m | 6.1 m | 4.6 m ≈ | 4.8 m ≈ | 860.0 k | 912.0 k | 4.8 m ≈ |
| Share repurchases | 0 ≈ | 0 | 5.1 m | 5.1 m ≈ | 12.3 m ≈ | 19.1 m | 20.0 m | 25.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 21 percentile of its own 39-quarter history (min 18.3, median 51.7, max 205.0; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 420.5 m | 502.4 m | 618.0 m | 749.0 m | 842.6 m | 881.7 m | 939.8 m | 1.0 bn |
| Revenue YoY | +24.1% | +19.5% | +23.0% | +21.2% | +12.5% | +4.6% | +6.6% | +7.6% |
| Net income | 21.5 m | 53.5 m | 76.7 m | 51.2 m | 55.6 m | 80.3 m | 122.5 m | 131.6 m |
| Net income YoY | −26.4% | +148.7% | +43.2% | −33.2% | +8.7% | +44.4% | +52.5% | +7.4% |
| Diluted EPS | 0.43 | 1.06 | 1.53 | 1.01 | 1.07 | 1.53 | 2.29 | 2.46 |
| Diluted EPS YoY | −27.1% | +146.5% | +44.3% | −34.0% | +5.9% | +43.0% | +49.7% | +7.4% |
| net % | 5.1% | 10.7% | 12.4% | 6.8% | 6.6% | 9.1% | 13.0% | 13.0% |
| Free cash flow | 49.7 m | 27.8 m | 85.9 m | 92.1 m | 28.3 m | 128.4 m | 196.3 m | 137.0 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 960.6 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 848.2 m USD
- Total assets
- 2.1 bn USD
- Debt / equity
- unavailable
- Current ratio
- 1.92x
- ROE
- 16.7%
- ROA
- 6.3%
- FCF margin
- 13.6%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 618.0 m | 749.0 m | 842.6 m | 881.7 m | 939.8 m | 1.0 bn | SEC (XBRL)· 19 Feb 2026verified |
| Cost of revenue | 227.4 m | 305.9 m | 342.6 m | 325.2 m | 326.1 m | 342.3 m | SEC (XBRL)· 19 Feb 2026verified |
| Gross profit | 390.6 m ≈ | 443.1 m ≈ | 500.0 m ≈ | 556.5 m ≈ | 613.7 m ≈ | 668.9 m ≈ | SEC (XBRL)· 19 Feb 2026derived |
| Research & development | 152.1 m | 177.7 m | 218.6 m | 245.1 m | 255.9 m | 270.2 m | SEC (XBRL)· 19 Feb 2026verified |
| Operating income | 56.3 m | 61.6 m | 51.0 m | 66.8 m | 108.5 m | 133.6 m | SEC (XBRL)· 19 Feb 2026verified |
| Depreciation & amortisation | 27.5 m | 29.7 m | 30.9 m | 31.4 m | 29.1 m | 30.8 m | SEC (XBRL)· 19 Feb 2026verified |
| EBITDA | 83.8 m ≈ | 91.3 m ≈ | 81.9 m ≈ | 98.3 m ≈ | 137.7 m ≈ | 164.5 m ≈ | SEC (XBRL)· 19 Feb 2026derived |
| Interest expense | — | — | 3.1 m | 3.4 m | 11.4 m | 17.3 m | SEC (XBRL)· 19 Feb 2026verified |
| Pre-tax income | 80.2 m | 46.1 m | 56.6 m | 97.8 m | 141.8 m | 166.6 m | SEC (XBRL)· 19 Feb 2026verified |
| Income tax | 3.5 m | -5.1 m | 962.0 k | 17.5 m | 19.3 m | 37.6 m | SEC (XBRL)· 19 Feb 2026verified |
| Net income | 76.7 m | 51.2 m | 55.6 m | 80.3 m | 122.5 m | 131.6 m | SEC (XBRL)· 19 Feb 2026verified |
| Diluted EPS | 1.53 | 1.01 | 1.07 | 1.53 | 2.29 | 2.46 | SEC (XBRL)· 19 Feb 2026verified |
| Weighted average diluted shares | 51.0 m | 51.9 m | 54.9 m | 54.6 m | 58.0 m | 58.9 m | SEC (XBRL)· 19 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 253.5 m | 710.6 m | 622.2 m | 697.0 m | 1.2 bn | 960.6 m | SEC (XBRL)· 19 Feb 2026verified |
| Receivables | 83.3 m | 105.5 m | 124.3 m | 130.6 m | 126.1 m | 141.9 m | SEC (XBRL)· 19 Feb 2026verified |
| Inventories | 44.3 m | 75.3 m | 115.6 m | 96.1 m | 87.4 m | 94.4 m | SEC (XBRL)· 19 Feb 2026verified |
| Current assets | 397.4 m | 917.6 m | 891.1 m | 956.8 m | 1.5 bn | 1.3 bn | SEC (XBRL)· 19 Feb 2026verified |
| Property, plant & equipment, net | 44.8 m | 41.7 m | 57.2 m | 54.2 m | 63.2 m | 64.8 m | SEC (XBRL)· 19 Feb 2026verified |
| Goodwill | 112.8 m | 112.9 m | 148.2 m | 154.5 m | 154.2 m | 225.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Intangibles (excl. goodwill) | 103.3 m | 91.4 m | 82.5 m | 78.6 m | 63.2 m | 99.4 m | SEC (XBRL)· 19 Feb 2026verified |
| Total assets | 731.7 m | 1.2 bn | 1.3 bn | 1.4 bn | 2.0 bn | 2.1 bn | SEC (XBRL)· 19 Feb 2026verified |
| Accounts payable | 38.2 m | 64.8 m | 53.1 m | 39.0 m | 65.6 m | 22.2 m | SEC (XBRL)· 19 Feb 2026verified |
| Long-term debt | 110.0 m | — | — | — | — | — | SEC (XBRL)· 25 Feb 2021verified |
| Current liabilities | 90.2 m | 129.3 m | 164.9 m | 175.3 m | 188.8 m | 663.1 m | SEC (XBRL)· 19 Feb 2026verified |
| Total liabilities | 253.2 m | 606.0 m | 706.5 m | 714.7 m | 1.3 bn | 1.2 bn | SEC (XBRL)· 19 Feb 2026verified |
| Equity | 467.8 m † | 613.2 m † | 598.9 m † | 688.5 m † | 726.5 m † | 848.2 m † | SEC (XBRL)· 19 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 102.1 m | 103.2 m | 56.9 m | 136.0 m | 206.4 m | 153.3 m | SEC (XBRL)· 19 Feb 2026verified |
| Capex | 16.1 m | 11.1 m | 28.6 m | 7.5 m | 10.1 m | 16.3 m | SEC (XBRL)· 19 Feb 2026verified |
| Free cash flow | 85.9 m ≈ | 92.1 m ≈ | 28.3 m ≈ | 128.4 m ≈ | 196.3 m ≈ | 137.0 m ≈ | SEC (XBRL)· 19 Feb 2026derived |
| Investing cash flow | -20.3 m | -20.4 m | -68.3 m | -26.0 m | -24.7 m | -358.5 m | SEC (XBRL)· 19 Feb 2026verified |
| Financing cash flow | 52.0 m | 374.4 m | -76.3 m | -31.9 m | 346.4 m | -55.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Share repurchases | 5.1 m | 0 | 78.8 m | 27.3 m | 75.0 m | 41.6 m | SEC (XBRL)· 19 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 3.3 bn USD
Key indicators
Coverage and freshness
Score by group
77% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/Salesunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
no valuation method could be computed
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 65.8% | 65 (on a fixed band) | 14% |
| EBIT margin · Quality | 12.8% | 69 (vs peers) | 11% |
| FCF margin · Quality | 17.7% | 71 (on a fixed band) | 11% |
| Revenue CAGR 3Y · Growth | 6.3% | 25 (on a fixed band) | 22% |
| Revenue growth (YoY) · Growth | 7.6% | 16 (vs peers) | 11% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 5.0x | 100 (on a fixed band) | 8% |
| EV/Sales · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 5.6% | 100 (on a fixed band) | 17% |
| Shareholder yield (distributions) · Returns | 2.3% | 72 (on a fixed band) | 6% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial100/100 · 1/2 factors with a value
- Growth22/100 · 2/2 factors with a value
- Quality68/100 · 3/3 factors with a value
- Returns72/100 · 1/1 factors with a value
- Valuation· partial100/100 · 1/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
ALARM.COM HOLDINGS, INC. (ALRM). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 1.0 bn USD in 2025; YoY growth 7.6%; net margin 11.1%; ROE 14.1%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF margin: 17.7%
- Current ratio: 5.0x
- FCF yield: 5.6%
- Shareholder yield (distributions): 2.3%
What contradicts it
- Revenue CAGR 3Y: 6.3%
- Revenue growth (YoY): 7.6%
Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, EV/Sales.
Versus the vertical median
Services-Prepackaged Software (SIC 7372) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| MSFTMicrosoft Corporation | 4,127.5 bn | 29.0 | 34.2% | 41.2% | +17.8% | +13% / +47% |
| PLTRPalantir Technologies Inc. | 413.7 bn | 120.4 | 41.2% | 50.3% | +56.2% | +2% / +756% |
| ORCLOracle Corporation | 374.1 bn | 19.3 | 41.6% | 26.4% | +17.3% | −39% / +6% |
| CRWDCrowdStrike Holdings, Inc. | 246.8 bn | 1,120.4 | 1.3% | 1.1% | +21.7% | +89% / +307% |
| CRMSalesforce, Inc. | 186.9 bn | 20.7 | 19.4% | 22.0% | +9.6% | −1% / −10% |
| NOWServicenow, Inc. | 112.9 bn | 78.1 | 11.8% | 9.4% | +20.9% | −33% / −21% |
| SNOWSnowflake Inc. | 102.5 bn | — | -48.2% | -20.1% | +29.2% | +16% / +55% |
| ADBEAdobe Inc. | 96.7 bn | 13.9 | 61.9% | 28.0% | +10.5% | −22% / −59% |
| INTUIntuit Inc. | 95.3 bn | 21.7 | 23.6% | 21.3% | +13.9% | −44% / −38% |
| CDNSCadence Design Systems, Inc. | 90.4 bn | 65.5 | 22.9% | 22.5% | +14.1% | +6% / +21% |
| SNPSSynopsys Inc | 88.7 bn | 81.8 | 3.7% | 11.4% | +15.1% | +11% / −15% |
| ADSKAutodesk, Inc. | 56.4 bn | 35.0 | 53.9% | 21.1% | +17.5% | −11% / +24% |
| VEEVVeeva Systems Inc. | 50.3 bn | 50.8 | 14.4% | 29.3% | +16.3% | +29% / +78% |
| TTWOTake-Two Interactive Software, Inc. | 39.1 bn | — | -9.0% | -4.8% | +18.2% | −15% / +32% |
| RBLXRoblox Corporation | 35.3 bn | — | -478.2% | -16.5% | +35.8% | −48% / +25% |
| TWLOTwilio Inc. | 33.0 bn | 26.8 | 14.9% | 21.8% | +13.7% | +65% / +230% |
| MDBMongodb, Inc. | 26.5 bn | 449.1 | 2.0% | 2.1% | +22.8% | −1% / −21% |
| PTCPTC Inc. | 21.2 bn | 19.0 | 35.1% | 41.4% | +19.2% | +11% / +24% |
| UUnity Software Inc. | 18.7 bn | — | -18.9% | -29.0% | +2.0% | −0% / +44% |
| SSNCSs&C Technologies Holdings, Inc. | 18.7 bn | 22.9 | 12.7% | 13.2% | +6.6% | −7% / +41% |
| NTNXNutanix, Inc. | 17.2 bn | 12.3 | 37,460.2% | 52.8% | +12.4% | +33% / +48% |
| TYLTyler Technologies, Inc. | 16.8 bn | 53.3 | 10.5% | 13.5% | +9.1% | −10% / +4% |
| DOCUDocusign, Inc. | 15.0 bn | 49.1 | 17.8% | 9.8% | +8.2% | +16% / +87% |
| GWREGuidewire Software, Inc. | 14.0 bn | 104.7 | 10.5% | 9.4% | +22.7% | −21% / +71% |
| DTDynatrace, Inc. | 13.4 bn | 87.0 | 6.4% | 7.4% | +18.8% | +5% / −13% |
1- and 3-year price returns: for ALRM from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 44.22 Total return -35% · Per year -35% | 78.12 Total return 15% · Per year 15% | 117.58 Total return 73% · Per year 73% |
| 3 years | 44.46 Total return -35% · Per year -13% | 88.22 Total return 30% · Per year 9% | 145.58 Total return 114% · Per year 29% |
| 5 years | 44.70 Total return -34% · Per year -8% | 99.63 Total return 47% · Per year 8% | 180.24 Total return 165% · Per year 22% |
- Exit P/E± 22.06
- Net margin± 15.44
- Annual revenue growth± 12.46
- Annual dilution± 1.30
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Alarm.com is the leading platform for intelligently connected properties, delivering security, video, energy and utility services through a network of service provider partners. The company reported SaaS and license revenue of $689.4 million in fiscal 2025 and raised its 2026 guidance after SaaS growth in the second quarter, a trend that could matter if the pace holds 123.
SWOT
Strengths
- The platform has a large base of connected devices and a high renewal rate for SaaS revenue, supporting predictable revenue 1.
- The service provider partner network extends distribution without direct installation investment, a central element of the business model 1.
- The company raised its 2026 guidance early in the second quarter, a sign of confidence in execution 3.
Weaknesses
- Reliance on service partners for sales, installation and support limits control over the end customer experience 1.
- Revenue is seasonal and concentrated in the second and third quarters, making quarterly results volatile 1.
- Hardware revenue is more exposed to costs and supply chains than SaaS revenue, reducing margin predictability 12.
Opportunities
- International expansion, given that a small share of revenue comes from outside North America, could add growth if executed well 1.
- The demand response and virtual power plant market could grow as utilities seek peak flexibility 3.
- The commercial fire communicator launch could extend the platform into the commercial fire alarm market 3.
Risks
- Macroeconomic uncertaintyhigh
Macroeconomic conditions, including inflation and tariffs, could reduce demand for new subscriptions and equipment 12.
- Product defectshigh
Software defects or service interruptions could lead to liability and customer loss, since the solutions are tied to life safety 1.
- Dependence on service partnersmedium
Partners that install or maintain solutions incorrectly could damage the company's reputation and revenue 1.
- Quarterly volatilitymedium
Seasonality and reliance on the second and third quarters can make quarterly results hard to compare 1.
- Natural disasters and geopoliticslow
Natural disasters, armed conflict or trade tensions could disrupt suppliers, network operators and sales 1.
Investment thesis
What would need to be true (bull case)
- SaaS and license revenue is growing and the 2026 guidance was raised, which could support a favourable trajectory if the trend continues 23.
- A high subscription renewal rate and the scale of the platform could provide predictable long-term revenue 1.
- EnergyHub could become an additional growth source if utilities keep adopting demand response programs 3.
What would break the thesis
- An economic slowdown could reduce construction and renovation demand on which the partner network depends 1.
- Hardware revenue is exposed to new tariffs, which could compress margins if costs cannot be passed on 2.
- Net income declined in the second quarter of 2026 compared with the prior year, which could signal cost or operating pressure 2.
What to watch
- Actual results against the third quarter SaaS and license revenue outlookQ3 2026
- Evolution of hardware margins under new tariffs2026
- Renewal rate trend for SaaS and license subscriptionsnext 10-K
- Growth of EnergyHub through new utility programs2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Alarm.com generates most of its revenue from SaaS and license fees billed monthly to service provider partners, who resell the services to end customers and install the equipment. Hardware revenue from cameras, sensors and thermostats is the second pillar, and partner contracts start with a one-year term that renews annually 1. The company reported a 95% SaaS and license renewal rate in 2025, indicating stability in its subscriber base 1.
According to the annual report, total revenue grew from $939.8 million in 2024 to $1.0112 billion in 2025, and non-GAAP adjusted EBITDA reached $206.0 million 1. In the second quarter of 2026, SaaS and license revenue was $188.8 million, up 11% 23.
The platform covers interactive security, video monitoring with AI-driven analytics, automation and energy management, access control and small business solutions, all delivered through the partner network 1. The EnergyHub subsidiary adds demand response services for utilities, and the company acquired RGS to expand that position 1.
Segments
SaaS and license
SaaS and license revenue, the largest component, represented 68% of total revenue in 2025 and rose to $689.4 million, supported by monthly subscription fees paid by service partners 1. In the second quarter of 2026 the segment reached $188.8 million, and the 2026 guidance was raised to a low end of $754.0 million 23.
Market context
Alarm.com serves residential, multi-family, small business, commercial and energy markets, and in 2025 its platforms processed more than 365 billion data points from over 170 million connected devices 1. International operations remain small, since only 5% of 2025 revenue came from outside North America, which suggests room for expansion 1.
The connected property market depends on new construction and renovation, and according to the risk disclosures an economic slowdown could reduce the number of partners and demand 1. Demand for security and life safety services also depends on trust in provider solutions, which defects or outages could affect 1.
Trends
- Growth in SaaS revenuetailwind
SaaS and license revenue keeps growing and the 2026 guidance was raised, suggesting subscriber demand remains solid if the trend continues 23.
- Expansion in energy and utilitiestailwind
Demand response and virtual power plant programs are becoming more important as utilities manage peak demand, and EnergyHub is scaling up 3.
- Macroeconomic pressuresheadwind
Conditions such as inflation, tariffs and financial market uncertainty could reduce consumer spending and demand for new installations 12.
- Tariffs and hardware costsmixed
New trade tariffs could raise hardware costs and compress margins on equipment revenue if they cannot be passed on to customers 2.
Competitive position
The company's risk disclosures cite new entrants into the industry and new offerings from existing competitors, which could put pressure on pricing 1. Because it relies on its partner network, direct competition with those partners could also affect distribution 1.
Competition includes security and automation solution providers offering the same service categories, as well as utility software providers in demand response 1. Competitor names are not explicitly given in the analysed sources, so the competitive profile is described in general terms.
- Residential and commercial security solution providers
Competitors offering alarm systems and video monitoring, aimed at the same distribution channels, referred to generically in the company's risk disclosures 1.
- New entrants into the connected property market
Companies that could enter the industry, a risk the company identifies that could alter pricing and market share 1.
- Energy and demand response platforms
Virtual power plant software providers, an area where EnergyHub competes for utility contracts 13.
- Partners that build in-house products
Installers that could move to proprietary solutions or other platforms, a dependency mentioned in the company's risk disclosures 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report06 Aug 2026
- Current report06 Aug 2026Results of operations · Financial statements and exhibits
- Current report08 Jun 2026Shareholder vote
- Quarterly report07 May 2026
- Current report07 May 2026Results of operations · Financial statements and exhibits
- Proxy statement23 Apr 2026
- Current report18 Mar 2026Departure or appointment of officers
- Annual report19 Feb 2026
- Current report19 Feb 2026Results of operations · Financial statements and exhibits
- Quarterly report06 Nov 2025
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Alarm.com Holdings, Inc. · 19 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Alarm.com Holdings, Inc. · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Alarm.com Holdings, Inc. · 06 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.