Alarm.com Holdings, Inc.
- Open
- 54.04
- Day high
- 54.85
- Day low
- 53.07
- Prev close
- 54.10
- Volume
- 388K
- Mkt cap
- $2.6B
- P/E (TTM)
- 20.6
- EPS (TTM)
- $2.58
- P/B
- 3.1
- P/S
- 2.5
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$1.4M over the last 3 months (0 open-market buys, 10 sales)
- 🏛Institutions mixed (13F)
Alarm.com Holdings, Inc. (ALRM) is a Technology company listed on NASDAQ. The stock is down 4% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 10 sales (SEC Form 4).
Alarm.com Holdings, Inc. (ALRM) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ALRM earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $0.60 | $0.65 | +8.3% | $265M | +5.7% |
| Feb 19, 2026 | $0.66 | $0.72 | +9.1% | $262M | +5.2% |
| Nov 6, 2025 | $0.62 | $0.76 | +22.6% | $256M | +2.3% |
| Aug 7, 2025 | $0.52 | $0.60 | +15.4% | $254M | +1.6% |
| May 8, 2025 | $0.48 | $0.54 | +12.5% | $239M | +1.9% |
| Feb 20, 2025 | $0.55 | $0.58 | +5.5% | $242M | +2.0% |
| Nov 7, 2024 | $0.49 | $0.62 | +26.5% | $240M | +1.3% |
| Aug 8, 2024 | $0.49 | $0.58 | +18.4% | $234M | +3.0% |
| May 9, 2024 | $0.49 | $0.50 | +2.0% | $223M | +1.7% |
| Feb 22, 2024 | $0.47 | $0.62 | +31.9% | $226M | +0.6% |
| Nov 9, 2023 | $0.40 | $0.56 | +40.0% | $222M | -1.0% |
| Feb 23, 2023 | $0.43 | $0.53 | +23.3% | $208M | +0.4% |
ALRM insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 2, 2026 | Bradley Kevin Christopherofficer: Chief Financial Officer | Sell | 724 | $48.46 |
| Jun 12, 2026 | Bradley Kevin Christopherofficer: Chief Financial Officer | Sell | 2,200 | $46.15 |
| Jun 12, 2026 | Ramos Danielofficer: See Remarks | Sell | 8,000 | $46.23 |
| Jun 12, 2026 | Ramos Danielofficer: See Remarks | Sell | 2,000 | $46.50 |
| Jun 8, 2026 | Clarke Donald Edirector | Grant | 3,222 | — |
| Jun 8, 2026 | McAdam Timothy Pdirector | Grant | 3,222 | — |
| Jun 8, 2026 | Whall Timothy J.director | Grant | 3,222 | — |
| Jun 8, 2026 | Harper Cecile Burleighdirector | Grant | 3,222 | — |
| Jun 8, 2026 | WU Simonedirector | Grant | 3,222 | — |
| Jun 8, 2026 | NEVIN DARIUS Gdirector | Grant | 3,222 | — |
| Jun 8, 2026 | Evans Stephen C.director | Grant | 3,222 | — |
| May 28, 2026 | Trundle Stephendirector, officer: Chief Executive Officer | Sell | 6,073 | $43.78 |
| May 28, 2026 | Ramos Danielofficer: See Remarks | Sell | 2,532 | $43.78 |
| May 28, 2026 | Kerzner Danielofficer: See Remarks | Sell | 3,944 | $43.78 |
| May 20, 2026 | Ramos Danielofficer: See Remarks | Sell | 1,561 | $43.56 |
Source: ALRM SEC Form 4 filings, latest Jul 2, 2026. For informational purposes only — not investment advice.
See the full ALRM insider & 13F page →Alarm.com Holdings, Inc. company profile
Overview
Alarm.com Holdings, Inc. (NASDAQ:ALRM) is a cloud-based technology company that provides smart security and automation solutions for residential and commercial properties. Founded in 2000 and headquartered in Tysons, Virginia, the company went public in 2015. Alarm.com has evolved from a primarily North American residential security provider into a diversified technology platform serving over 9 million connected properties across 60+ countries. The company operates through a network of thousands of professional service providers who sell and install Alarm.com-powered systems to end customers.
Business
Alarm.com operates in the connected property technology industry, providing cloud-based software platforms that enable smart security, video monitoring, access control, and automation services. The company's core offering is a comprehensive Internet of Things (IoT) platform that connects various devices within homes and businesses to provide integrated security and automation capabilities. The company's primary product is its Software-as-a-Service (SaaS) platform that powers smart security systems. This platform connects devices like door locks, motion sensors, cameras, thermostats, and garage door openers through cellular and internet connectivity, allowing property owners to monitor and control their properties remotely through mobile apps and web interfaces. The system provides real-time alerts, video streaming, automated responses to security events, and intelligent automation based on user preferences and behaviors. Alarm.com operates through several key business segments: 1. Residential Security and Automation - The company's largest segment, providing smart security systems, video monitoring, and home automation services to homeowners. This includes interactive security solutions, video analytics, energy management through smart thermostats, and whole-home water safety solutions. 2. Commercial Solutions - Growing rapidly at approximately 25% annually, this segment offers business-grade security, access control systems that manage over 100,000 doors, commercial video surveillance, temperature monitoring, and multi-site management capabilities. The commercial business now represents over $80 million in annual SaaS revenue. 3. International Operations - Expanding into global markets with localized solutions, currently operating in 60+ countries and representing about 6% of total revenue with strong growth rates of around 25% year-over-year. 4. EnergyHub and Utility Services - A specialized division that provides demand response and energy management services to utility companies, helping manage electrical grid load through connected devices. This segment generates over $50 million in annual SaaS revenue. 5. OpenEye Enterprise Video - Professional video surveillance solutions for larger commercial customers, contributing nearly $20 million in annual SaaS revenue.
Revenue model
Alarm.com operates a multi-faceted business model centered around recurring SaaS revenue complemented by hardware sales. The company generates approximately 70% of its revenue from SaaS and licensing fees, with the remaining 30% from hardware sales to service providers. The primary revenue stream comes from monthly SaaS subscriptions paid by service providers (security dealers, integrators, and installers) who then bundle these services into packages sold to end customers. Service providers pay Alarm.com monthly per-subscriber fees ranging from basic monitoring services to premium packages with advanced video analytics, automation, and commercial features. This creates a highly predictable recurring revenue stream with strong customer retention rates above 95%. Hardware revenue is generated through sales of connected devices to service providers, including security panels, cameras, sensors, smart locks, and thermostats. While hardware carries lower margins (around 24%), it serves as an enabler for higher-margin SaaS attachment and creates switching costs for service providers. The company also generates revenue through professional services and support provided to service providers, including training, marketing support, and technical assistance. Several factors influence Alarm.com's margins and profitability. Positive margin drivers include the high-margin nature of SaaS revenue (85%+ gross margins), increasing video analytics attachment rates which command premium pricing, growing commercial and international segments that typically have higher average revenue per user, and operational leverage as the platform scales. Margin pressures come from hardware commodity pricing fluctuations, potential tariff impacts on China-sourced components (though less than 10% of hardware revenue), competitive pricing pressure in residential markets, and ongoing investments in international expansion and new product development. The company's strategy focuses on driving SaaS revenue growth while maintaining hardware as a strategic enabler rather than a primary profit center.
Competitive moat
Alarm.com possesses a moderate to strong competitive moat built primarily around network effects, switching costs, and platform integration advantages. The company's moat strength varies across its business segments, with commercial and service provider relationships providing the strongest defensive characteristics. The company's primary moat comes from its two-sided platform network effects. As more service providers join the Alarm.com ecosystem, the platform becomes more valuable due to shared development costs, enhanced features, and economies of scale. Service providers benefit from Alarm.com's continuous platform improvements, marketing support, and comprehensive device ecosystem without having to develop these capabilities independently. This creates significant switching costs, as service providers would need to retrain staff, replace hardware inventory, and potentially lose customers during any platform transition. Integration depth and data network effects provide additional protection. Alarm.com's platform integrates with thousands of different devices and systems, creating a comprehensive ecosystem that would be difficult and expensive for competitors to replicate. The company's video analytics, AI capabilities, and automation features improve with scale as more data flows through the system. However, the moat faces several challenges. The residential security market is increasingly commoditized with low-cost competitors and DIY solutions pressuring traditional professional installation models. Large players like ADT have developed competing platforms and could potentially reduce their reliance on Alarm.com over time. In the commercial segment, established access control and video surveillance companies pose competitive threats, though Alarm.com's integrated approach provides some differentiation. The company's strongest moat position appears to be in its service provider relationships and the commercial/international markets where integrated solutions and professional installation remain more valuable. The residential market presents the most vulnerability to disruption from simplified, lower-cost alternatives.
Risks & safety
Alarm.com maintains a strong financial position with substantial cash reserves and manageable debt levels, though valuation metrics suggest limited margin of safety at current prices. Financial Strength: • Cash and short-term investments: $1.19 billion (Q1 2025) • Current ratio: 2.14x indicating solid liquidity • Minimal solvency risk with strong balance sheet • Free cash flow generation: $17.9 million (Q1 2025), though down from $54 million (Q4 2024) • Debt-to-equity ratio: 1.40, primarily from convertible notes rather than traditional debt Valuation Metrics: • P/E ratio: 24.7x (Q1 2025) - reasonable but not cheap • EV/EBITDA: 17.4x - elevated for current growth rates • Price-to-book: 3.64x - premium valuation • Graham number suggests fair value around $13.92 vs. current price of $56 Other Considerations: • High recurring revenue base provides earnings stability • Strong gross margins on SaaS business (85%+) offer downside protection • Exposure to economic cycles through new home construction and commercial real estate • Potential tariff impacts on hardware costs, though limited China exposure
Recent development
Over the past few years, Alarm.com has executed a strategic transformation from a primarily North American residential security company into a diversified, global IoT platform provider. The company has significantly expanded its commercial offerings, with commercial SaaS revenue growing from 8% to over $80 million annually, driven by access control solutions now managing over 100,000 doors and comprehensive commercial video surveillance through the OpenEye platform. International expansion has accelerated, with the business now operating in 60+ countries and generating 6% of total revenue with consistent 25%+ growth rates. The company has launched region-specific products like the 516 Wi-Fi camera for international markets and expanded video service adoption to 30% of new international accounts. Artificial Intelligence and video analytics have become central to the company's strategy. Alarm.com has developed AI-powered video deterrence technology with generative voice capabilities, launched advanced video analytics with 95%+ attachment rates for eligible cameras, and integrated AI into service provider support platforms to improve technician efficiency. The company has made strategic acquisitions to accelerate growth, including CHeKT for remote video monitoring capabilities, EBS for international communicator technology, and Noonlight for emergency response services. A significant partnership with General Motors Energy for EV charging management demonstrates expansion into adjacent IoT markets. Product innovation has focused on wireless and battery-powered devices to reduce installation complexity, new video products like the 729 floodlight camera, and enhanced automation features. The EnergyHub division has developed dynamic load shaping technology for utility demand response programs. Financial strategy has included raising $500 million through convertible notes to fund growth initiatives and potential acquisitions, while maintaining disciplined capital allocation with opportunistic share buybacks.
ALRM company profile · for informational purposes only — not investment advice.
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