Alarm.com (NASDAQ:ALRM) Issues Quarterly Earnings Results

Alarm.com (NASDAQ:ALRM) released its quarterly earnings results on Thursday. The software maker reported $0.65 earnings per share for the quarter, beating the consensus estimate of $0.60 by $0.05, FiscalAI reports. The business had revenue of $265.19 million during the quarter, compared to analysts’ expectations of $250.94 million. Alarm.com had a return on equity of 15.15% and a net margin of 12.36%.The firm’s revenue for the quarter was up 11.1% compared to the same quarter last year. During the same quarter last year, the business posted $0.54 EPS. Alarm.com updated its FY 2026 guidance to 2.810-2.810 EPS.

Here are the key takeaways from Alarm.com’s conference call:

• Alarm.com beat expectations in Q1 with $181.5M in SaaS & license revenue (+10.8% YoY), total revenue of $265.2M (+11%), adjusted EBITDA of $49.6M and EPS of $0.65 (+14% YoY).
• A revenue retention rate above 95% (≈95.4%) and an outsized contribution from EnergyHub drove the SaaS beat; EnergyHub now supports >155 utilities covering ~75–77M meters and management expects EnergyHub growth in the mid‑20s percentage range.
• Commercial product momentum from OpenEye—including new AI features AI Visual Check and AI Visual Search included in its premium subscription—was highlighted as rapidly adopted and a growth driver for enterprise video services.
• Management warned of hardware headwinds as memory supply shifted toward HBM for AI data centers, causing substantial memory cost increases that will require product price hikes and create demand uncertainty, while a Supreme Court tariff ruling will reduce tariff pass‑throughs (roughly ~$5M impact into H2) and made the hardware outlook cautious.
• Board authorized up to $150M in share repurchases over two years (428k shares bought for ~$20M in Q1) and the company retired $500M of convertible notes, signaling shareholder‑friendly capital allocation but lower cash balances.

Alarm.com Trading Up 1.3%

Shares of ALRM stock traded up $0.60 on Friday, reaching $47.60. 572,428 shares of the company’s stock were exchanged, compared to its average volume of 466,715. Alarm.com has a 52 week low of $41.50 and a 52 week high of $60.76. The company has a current ratio of 1.92, a quick ratio of 1.78 and a debt-to-equity ratio of 0.58. The stock has a market capitalization of $2.35 billion, a PE ratio of 19.75, a P/E/G ratio of 1.65 and a beta of 0.79. The company’s fifty day simple moving average is $45.66 and its 200 day simple moving average is $48.46.

Insider Activity

In related news, CFO Kevin Christopher Bradley sold 1,510 shares of the firm’s stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $45.97, for a total transaction of $69,414.70. Following the completion of the sale, the chief financial officer directly owned 51,546 shares of the company’s stock, valued at approximately $2,369,569.62. This trade represents a 2.85% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 5.80% of the company’s stock.

Institutional Investors Weigh In On Alarm.com

A number of institutional investors and hedge funds have recently modified their holdings of ALRM. Strs Ohio bought a new stake in shares of Alarm.com during the 1st quarter worth approximately $56,000. Kemnay Advisory Services Inc. bought a new stake in shares of Alarm.com during the 4th quarter worth approximately $59,000. Caden Capital Partners LP bought a new stake in shares of Alarm.com during the 4th quarter worth approximately $106,000. Vestcor Inc bought a new stake in shares of Alarm.com during the 3rd quarter worth approximately $154,000. Finally, Osaic Holdings Inc. raised its position in Alarm.com by 95.3% during the 2nd quarter. Osaic Holdings Inc. now owns 3,172 shares of the software maker’s stock valued at $179,000 after purchasing an additional 1,548 shares in the last quarter. 91.74% of the stock is owned by institutional investors.

Alarm.com News Roundup

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

• Positive Sentiment: Alarm.com beat Q1 estimates with EPS of $0.65 versus $0.60 expected, while revenue of $265.2 million also topped forecasts. Year-over-year revenue rose 11.1%, showing continued demand for its connected-property software platform. Alarm.com Reports First Quarter 2026 Results
• Positive Sentiment: The company increased full-year 2026 guidance, signaling management sees stronger profitability ahead. It now expects FY2026 EPS of about $2.81, above consensus, which supports the bullish reaction in the stock. Alarm.com Reports First Quarter 2026 Results
• Positive Sentiment: First-quarter SaaS and license revenue increased 10.8% to $181.5 million, suggesting the company’s recurring-revenue business remains healthy and could continue supporting margins and cash flow. Alarm.com Reports First Quarter 2026 Results

Wall Street Analyst Weigh In

A number of brokerages have recently commented on ALRM. Weiss Ratings reiterated a “hold (c-)” rating on shares of Alarm.com in a report on Friday, April 24th. Barclays lifted their target price on Alarm.com from $50.00 to $55.00 and gave the stock an “equal weight” rating in a report on Friday. Zacks Research cut Alarm.com from a “strong-buy” rating to a “hold” rating in a report on Wednesday, March 25th. Finally, JPMorgan Chase & Co. dropped their target price on Alarm.com from $55.00 to $40.00 and set an “underweight” rating for the company in a report on Wednesday, February 18th. Three equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Reduce” and an average price target of $47.50.

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.