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ALRM

Alarm.com Holdings, Inc.

ALRM

Alarm.com Holdings, Inc. • NASDAQ
$51.96 ▲ 0.48% (+0.25)
Market Cap $2.59 B
52w High $70.06
52w Low $46.65
Dividend Yield 0%
P/E 22.02
Volume 206.39K
Outstanding Shares 49.88M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $256.4M ▲ $195.146M ▲ $35.338M ▲ 13.782% ▲ $0.708 ▲ $62.419M ▲
Q2-2025 $254.308M ▲ $134.824M ▲ $34.552M ▲ 13.587% ▲ $0.69 ▲ $55.319M ▲
Q1-2025 $238.822M ▼ $130.941M ▲ $27.95M ▼ 11.703% ▼ $0.56 ▼ $50.438M ▼
Q4-2024 $242.24M ▲ $127.781M ▲ $30.328M ▼ 12.52% ▼ $0.61 ▼ $54.376M ▼
Q3-2024 $240.497M $122.555M $36.682M 15.253% $0.81 $58.813M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $1.067B ▲ $2.124B ▲ $1.24B ▼ $827.19M ▲
Q2-2025 $1.025B ▼ $2.098B ▲ $1.246B ▼ $797.345M ▲
Q1-2025 $1.186B ▼ $2.077B ▲ $1.265B ▼ $759.603M ▲
Q4-2024 $1.221B ▲ $2.038B ▲ $1.267B ▲ $726.546M ▲
Q3-2024 $1.171B $1.971B $1.24B $690.301M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $35.1M ▲ $70.628M ▲ $-17.015M ▲ $-11.876M ▼ $41.76M ▲ $65.6M ▲
Q2-2025 $34.217M ▲ $22.716M ▼ $-177.809M ▼ $-6.118M ▼ $-161.277M ▼ $17.814M ▲
Q1-2025 $27.712M ▼ $24.057M ▼ $-55.179M ▼ $-3.476M ▼ $-34.716M ▼ $17.534M ▼
Q4-2024 $30.328M ▼ $56.26M ▼ $-8.128M ▼ $2.144M ▲ $52.296M ▼ $53.992M ▼
Q3-2024 $36.682M $77.337M $-7.394M $-2.482M $66.066M $74.53M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Hardware and Other Revenue
Hardware and Other Revenue
 $150.00M ▲$80.00M ▼$80.00M ▲$80.00M ▲
License and Service
License and Service
 $320.00M ▲$160.00M ▼$170.00M ▲$180.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Alarm.com shows a steady, healthy growth story. Revenue has climbed each year, and profits have moved up alongside it. Margins have generally improved, with operating profit and EBITDA both trending higher over time, suggesting better scale and cost control. Net income and earnings per share have grown meaningfully over the five‑year span, even though there were some bumps along the way. Overall, this looks like a mature, recurring‑revenue software business that’s been slowly but consistently expanding both its top line and its profitability.

Balance Sheet

Balance Sheet The balance sheet has become much larger and more liquid over time. Total assets and cash balances have grown significantly, giving the company a solid financial cushion. Debt has also increased, but shareholder equity has risen too, so the capital structure still looks balanced rather than stretched. The picture is of a company that has used some leverage to grow but has also retained earnings and built a stronger financial base, with plenty of cash relative to its size.

Cash Flow

Cash Flow Cash generation has improved notably. Operating cash flow has been positive throughout the period and has grown over time, and free cash flow has followed the same pattern. Capital spending is relatively modest, which supports strong free cash flow conversion from earnings. This combination of rising profits and improving cash flow gives the company flexibility to invest in new products, acquisitions, or debt reduction without straining its finances.

Competitive Edge

Competitive Edge Alarm.com occupies a defensible niche in smart security and connected property software. Its key strength is a unified, cloud‑based platform sold through a large network of professional dealers, rather than direct to consumers. This partner model creates sticky relationships: installers and service providers build their businesses on Alarm.com’s platform, and end customers face meaningful friction if they want to switch. Recurring software and license fees add stability, and the broad ecosystem of compatible devices reinforces its role as a central hub in the security and smart‑property stack. The main risk is ongoing competition from big tech and lower‑cost DIY solutions, but Alarm.com counters this with professional‑grade service, integration depth, and dealer loyalty.

Innovation and R&D

Innovation and R&D Innovation is a clear focus. The company has layered advanced features—such as AI‑driven video analytics, automated voice deterrence, crash‑and‑smash protection, geo‑fencing, and wellness monitoring—on top of its core security offering, turning it into a broader property management platform. It is also pushing into commercial solutions, energy management (through EnergyHub), and emerging areas like connected vehicles. These initiatives extend the platform into new use cases and markets. The key question is execution: continuing to innovate quickly enough, integrating acquisitions smoothly, and keeping its technology clearly ahead of cheaper or more consumer‑oriented competitors.

Summary

Alarm.com combines steady financial performance with a strong strategic position in connected security and smart property software. Revenues and profits have grown at a measured but consistent pace, supported by recurring, high‑margin software income and improving cash generation. The balance sheet is cash‑rich and reasonably leveraged, giving it room to keep investing. Competitively, its dealer‑focused model, integrated platform, and wide device ecosystem create switching costs and a credible moat. Its future trajectory will depend on maintaining innovation momentum—especially in AI, commercial offerings, and energy management—while managing competition from large tech players and DIY solutions. Overall, the business profile is that of a stable, recurring‑revenue software platform with meaningful but not risk‑free growth opportunities.

NEWS

November 13, 2025 · 6:15 AM UTC

Alarm.com Introduces AI-Powered ADC-V730 Wi-Fi Spotlight Camera with Proactive Deterrence

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November 6, 2025 · 4:05 PM UTC

Alarm.com Reports Third Quarter 2025 Results

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October 21, 2025 · 6:15 AM UTC

Alarm.com to Announce 2025 Third Quarter Results on November 6, 2025

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September 9, 2025 · 4:05 PM UTC

Alarm.com Brings Pro-Grade Video Security to More Homes and Businesses with the New ADC-V516 Indoor Wi-Fi Camera

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September 3, 2025 · 9:00 AM UTC

Shooter Detection Systems' Outdoor Gunshot Detection Sensor Wins Top Honors in the Secure Campus Awards

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