Alarm.com Holdings, Inc. Q4 FY2025 earnings call

• Achieved over $1 billion in annual total revenue in 2025, reflecting strength of technology and business model. • Core residential business has strong market share in smart home security in US and Canada, with ARPU expansion driving growth and new products like premium video doorbell and battery-powered camera launched. • Commercial business serves small- and medium-sized businesses and enterprise customers, with continued solid growth despite economic uncertainty, and new commercial video camera series introduced. • EnergyHub remains strong contributor, acquired Resideo Grid Services to accelerate scale, focused on growing utility clients, expanding device diversity, and applying AI. • Developing international markets by deploying core technology.

In the fourth quarter, SaaS and license revenue was $180 million, up 8.8% year-over-year. Adjusted EBITDA in the quarter was $55 million. Core residential business' revenue growth is primarily driven by ARPU expansion. Commercial and energy businesses together contributed 25% of SaaS revenue for full year 2025 and grew about 25% year-over-year. EnergyHub's number of connected devices under management increased by more than 50% in 2025.

First quarter 2026 SaaS and license revenue expected between $175.8 million and $176 million. Full year 2026 SaaS and license revenue expected between $743 million and $745 million. Total revenue expected between $1.058 billion and $1.065 billion. Non-GAAP adjusted EBITDA guidance between $213 million and $215 million. Non-GAAP adjusted net income expected between $150.5 million and $151 million or $2.78 to $2.79 per diluted share.

Q: Congrats on 2025. Kevin, wanted to start with raise of SaaS guidance. Adam Tindle with Raymond James asked about break out of RGS contribution and organic assumption.

A: Kevin Bradley said SaaS guide midpoint went up by about $21 million, with components including RGS in late 2025 and outperformance excluding RGS during Q4; Q: This is Jordan on for Samad Samana. Congrats on strong quarter. Wondered how pivoting R&D to capture AI opportunity and embed demand/monetization.

A: Stephen Trundle said internally using AI to make solution more accessible and create more intelligence from data, externally working on consumer interface leveraging LLM; Q: Saket Kalia with Barclays asked about synergies in combined EnergyHub business.

A: Stephen Trundle said early days with little synergy now, but over 12-24 months will fuse capabilities and see more material synergies; Q: Stephen Sheldon with William Blair asked about traction with commercial video solutions and high level on spending plans.

A: Stephen Trundle said commercial video strengths in areas with high crime and assets, acquisition and Central Station augmented remote video monitoring as drivers, and R&D focus on driving productivity; Q: Adam Hotchkiss with Goldman Sachs asked about EnergyHub benefit from AI-driven data center demand and tracking the business.

A: Stephen Trundle said data center demand and variable power sources drive EnergyHub, track updates for business trajectory; Q: Jack Vander Aarde with Maxim Group asked about competitive environment in North America residential business and core business performance vs ADT headwind.

A: Stephen Trundle said no dramatic change in competitive landscape, ADT's transition didn't manifest as fully as expected; Q: This is Bella on for Ella Smith. Asked to frame EnergyHub's growth using operating KPIs and next leg of adoption.

A: Stephen Trundle said growth driven by percentage of homes in North America in position to service and enrollment percentage, sales cycles long but current shortage of supply may shorten them