Alarm.com (NASDAQ:ALRM) Issues Earnings Results

Alarm.com (NASDAQ:ALRM) posted its quarterly earnings results on Thursday. The software maker reported $0.77 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.65 by $0.12, FiscalAI reports. The firm had revenue of $277.73 million during the quarter, compared to the consensus estimate of $264.96 million. Alarm.com had a return on equity of 14.99% and a net margin of 12.36%.The firm’s quarterly revenue was up 9.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.60 earnings per share. Alarm.com updated its FY 2026 guidance to 2.920-2.940 EPS.

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

• Second-quarter results exceeded expectations: SaaS and license revenue rose 11.1% year over year to $188.8 million, while adjusted EBITDA increased 15.7% to $57.7 million, with margin expanding to 20.8%.
• Management raised its 2026 outlook, including SaaS and license revenue of $754.0 million–$754.4 million, total revenue of $1.079 billion–$1.089 billion, adjusted EBITDA of $221 million–$223 million, and adjusted EPS of $2.92–$2.94.
• Growth initiatives continued to outperform, with commercial and EnergyHub collectively growing more than 30% year over year. EnergyHub is benefiting from rising utility demand for demand-response programs as electrification, data centers, and renewable energy increase grid variability.
• Alarm.com launched a commercial Fire Communicator targeting an estimated 4 million–5 million fire panels in the U.S. and Canada, while international subscribers surpassed 1 million and the company repurchased approximately $25 million of shares during the quarter.
• GAAP net income fell to approximately $24.2 million, or $0.48 per diluted share, from $34.6 million a year earlier, primarily because retiring $500 million of convertible notes reduced interest income on excess cash.

Alarm.com Stock Up 2.2%

Shares of ALRM traded up $1.24 during midday trading on Friday, reaching $57.53. 506,626 shares of the company were exchanged, compared to its average volume of 481,393. Alarm.com has a 1-year low of $41.49 and a 1-year high of $59.53. The stock has a 50-day moving average price of $49.28 and a 200-day moving average price of $47.05. The company has a current ratio of 5.16, a quick ratio of 4.55 and a debt-to-equity ratio of 0.57. The company has a market cap of $2.85 billion, a price-to-earnings ratio of 23.87, a P/E/G ratio of 1.90 and a beta of 0.76.

Insider Buying and Selling

In related news, insider Daniel Ramos sold 2,000 shares of the business’s stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $46.50, for a total transaction of $93,000.00. Following the transaction, the insider directly owned 53,099 shares of the company’s stock, valued at approximately $2,469,103.50. The trade was a 3.63% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CEO Stephen Trundle sold 6,073 shares of the stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $43.78, for a total transaction of $265,875.94. Following the completion of the sale, the chief executive officer directly owned 324,842 shares of the company’s stock, valued at $14,221,582.76. This trade represents a 1.84% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 31,893 shares of company stock valued at $1,428,505. Corporate insiders own 4.80% of the company’s stock.

Institutional Investors Weigh In On Alarm.com

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Disciplined Growth Investors Inc. MN grew its stake in shares of Alarm.com by 3.0% during the second quarter. Disciplined Growth Investors Inc. MN now owns 3,491,824 shares of the software maker’s stock valued at $197,532,000 after acquiring an additional 102,481 shares in the last quarter. Bank of Montreal Can lifted its stake in shares of Alarm.com by 625.1% in the fourth quarter. Bank of Montreal Can now owns 2,231,227 shares of the software maker’s stock worth $113,837,000 after acquiring an additional 1,923,525 shares in the last quarter. Geode Capital Management LLC lifted its stake in shares of Alarm.com by 0.6% in the fourth quarter. Geode Capital Management LLC now owns 1,219,732 shares of the software maker’s stock worth $62,239,000 after acquiring an additional 7,454 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in Alarm.com by 2.4% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,105,735 shares of the software maker’s stock valued at $56,417,000 after purchasing an additional 25,659 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD boosted its holdings in Alarm.com by 6.4% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 895,619 shares of the software maker’s stock valued at $45,695,000 after purchasing an additional 53,775 shares during the last quarter. Hedge funds and other institutional investors own 91.74% of the company’s stock.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the company. Raymond James Financial reaffirmed a “strong-buy” rating and issued a $65.00 price objective on shares of Alarm.com in a research note on Friday. Wall Street Zen upgraded shares of Alarm.com from a “hold” rating to a “buy” rating in a report on Sunday, July 12th. Barclays lifted their price target on shares of Alarm.com from $50.00 to $55.00 and gave the company an “equal weight” rating in a research report on Friday, May 8th. Finally, Weiss Ratings upgraded shares of Alarm.com from a “hold (c-)” rating to a “hold (c)” rating in a research note on Wednesday, July 29th. One analyst has rated the stock with a Strong Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Alarm.com presently has an average rating of “Hold” and a consensus target price of $53.33.

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.