Alarm.com (NASDAQ:ALRM) Announces Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Alarm.com (NASDAQ:ALRM) posted its quarterly earnings results on Thursday. The software maker reported $0.72 earnings per share for the quarter, beating analysts’ consensus estimates of $0.66 by $0.06, FiscalAI reports. Alarm.com had a return on equity of 14.26% and a net margin of 12.92%.The firm had revenue of $261.66 million during the quarter, compared to the consensus estimate of $250.75 million. Alarm.com updated its FY 2026 guidance to 2.780-2.790 EPS.

Alarm.com Stock Performance

Shares of ALRM traded down $0.01 during midday trading on Thursday, reaching $45.20. 525,212 shares of the stock were exchanged, compared to its average volume of 398,527. The stock’s 50 day simple moving average is $49.93 and its 200 day simple moving average is $51.97. The company has a market cap of $2.25 billion, a P/E ratio of 19.15, a PEG ratio of 1.66 and a beta of 0.79. Alarm.com has a twelve month low of $44.71 and a twelve month high of $61.41. The company has a quick ratio of 1.92, a current ratio of 2.06 and a debt-to-equity ratio of 0.59.

Insider Activity

In other news, insider Jeffrey A. Bedell sold 22,727 shares of Alarm.com stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $51.82, for a total value of $1,177,713.14. Following the completion of the sale, the insider directly owned 505,805 shares in the company, valued at approximately $26,210,815.10. The trade was a 4.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Stephen C. Evans sold 1,154 shares of the business’s stock in a transaction that occurred on Friday, December 12th. The shares were sold at an average price of $52.27, for a total value of $60,319.58. Following the completion of the sale, the director owned 6,123 shares of the company’s stock, valued at approximately $320,049.21. This trade represents a 15.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 26,154 shares of company stock valued at $1,357,388 in the last quarter. Corporate insiders own 5.80% of the company’s stock.

Institutional Trading of Alarm.com

A number of institutional investors and hedge funds have recently made changes to their positions in ALRM. Strs Ohio acquired a new position in Alarm.com during the first quarter valued at approximately $56,000. Kemnay Advisory Services Inc. acquired a new position in shares of Alarm.com during the 4th quarter worth $59,000. Caden Capital Partners LP acquired a new position in shares of Alarm.com during the 4th quarter worth $106,000. Vestcor Inc bought a new stake in shares of Alarm.com during the 3rd quarter worth $154,000. Finally, Osaic Holdings Inc. boosted its stake in Alarm.com by 95.3% in the second quarter. Osaic Holdings Inc. now owns 3,172 shares of the software maker’s stock valued at $179,000 after buying an additional 1,548 shares in the last quarter. Institutional investors own 91.74% of the company’s stock.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the stock. Barclays dropped their price target on shares of Alarm.com from $60.00 to $56.00 and set an “equal weight” rating on the stock in a research report on Friday, November 7th. JPMorgan Chase & Co. dropped their target price on shares of Alarm.com from $55.00 to $40.00 and set an “underweight” rating on the stock in a report on Wednesday. Zacks Research cut Alarm.com from a “strong-buy” rating to a “hold” rating in a report on Monday, January 12th. Finally, Weiss Ratings restated a “hold (c-)” rating on shares of Alarm.com in a research note on Tuesday, January 27th. One analyst has rated the stock with a Strong Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $58.50.

Alarm.com News Summary

Here are the key news stories impacting Alarm.com this week:

• Positive Sentiment: Q4 results topped estimates — Alarm.com reported $0.72 EPS vs. $0.66 expected and revenue of $261.7M vs. $250.8M consensus; net margin and ROE remain healthy. Press Release
• Positive Sentiment: Raised FY‑2026 guidance — Management set EPS guidance of $2.78–$2.79 (vs. street ~2.47) and revenue guidance ~ $1.1B (vs. ~ $1.0B), indicating stronger expected growth and margin expansion for the year. Business Wire: Q4 & FY Guidance
• Positive Sentiment: SaaS momentum — SaaS & license revenue grew 8.8% year‑over‑year to $180.2M in Q4, supporting recurring revenue visibility and the raised full‑year outlook. Business Wire: SaaS Revenue
• Neutral Sentiment: Options activity noted — Media flagged unusual options interest, which can signal trader expectations for a large move but is not directional by itself. MSN: Options Flow
• Neutral Sentiment: Short‑interest data appears malformed/unclear in recent reports (reported as zero/NaN), so no reliable signal about short pressure at this time.
• Negative Sentiment: Analyst cut — JPMorgan trimmed its price target to $40 and moved to an “underweight” stance, which could exert selling pressure and weigh on sentiment despite the upbeat guidance. Benzinga: JPMorgan Lowered PT

Alarm.com Company Profile

Alarm.com Holdings, Inc provides a cloud-based software platform for connected properties, enabling residential and commercial customers to monitor, manage and control security, energy and home automation solutions. The company’s interactive services connect security systems, smart thermostats, door locks, lights and video cameras through cellular, broadband and Z-Wave networks, offering real-time alerts and remote access via mobile and web applications.

Through its platform, Alarm.com delivers an integrated suite of products that includes intrusion detection, video monitoring and cloud recording, energy management features such as smart thermostat scheduling, and home automation controls for lighting, garage doors and connected appliances.