Alarm.com (NASDAQ:ALRM) Announces Earnings Results, Beats Estimates By $0.15 EPS

Alarm.com (NASDAQ:ALRM) posted its quarterly earnings data on Thursday. The software maker reported $0.90 earnings per share for the quarter, topping the consensus estimate of $0.75 by $0.15, FiscalAI reports. The business had revenue of $279.44 million during the quarter, compared to analysts’ expectations of $265.82 million. Alarm.com had a net margin of 11.11% and a return on equity of 15.65%. Alarm.com’s revenue was up 9.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.76 earnings per share.

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

• Third-quarter SaaS and license revenue rose 9% year over year to $191.2 million, exceeding expectations, and Alarm.com raised its 2026 SaaS and license revenue outlook to $756.1 million–$756.3 million. Full-year adjusted EBITDA guidance also increased to $227 million–$229 million.
• Q3 adjusted EBITDA and hardware margins benefited from about $3.8 million in temporary tariff-related cost recoveries, which the company does not expect to continue. Higher memory costs and the absence of those recoveries are expected to pressure Q4 hardware gross margin to about 20.5%, creating an estimated $6.6 million sequential EBITDA headwind.
• Alarm.com’s preliminary 2027 outlook calls for $815 million–$820 million in SaaS and license revenue and $240 million–$245 million in adjusted EBITDA, implying a roughly 20.5% margin. That is near, but below, its previously stated goal of exiting 2027 with margins around 21%; hardware costs and reinvestment decisions could affect progress.
• The newly acquired CellGate is expected to contribute $15 million–$20 million of SaaS and license revenue in 2027 and expand Alarm.com’s reach into the fence and gate contractor market. Management expects modest SaaS gross-margin and adjusted EBITDA dilution for the next couple of years, while citing longer-term opportunity as recurring revenue scales.
• Management cited revenue retention in the 95% range and continued momentum in growth initiatives, which it expects to account for about one-third of revenue and grow 25%–30% in 2026. Video adoption is also lifting new-account residential ARPU, which management estimated at about $5.50 per month.

Alarm.com Price Performance

Alarm.com stock traded down $1.64 during mid-day trading on Friday, reaching $65.39. The company had a trading volume of 160,823 shares, compared to its average volume of 472,499. Alarm.com has a fifty-two week low of $41.49 and a fifty-two week high of $69.39. The company has a current ratio of 4.96, a quick ratio of 4.38 and a debt-to-equity ratio of 0.57. The company has a market cap of $3.23 billion, a P/E ratio of 28.91, a P/E/G ratio of 2.14 and a beta of 0.70. The business has a fifty day simple moving average of $57.76 and a 200 day simple moving average of $50.41.

Alarm.com News Summary

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

• Positive Sentiment: Alarm.com reported Q3 adjusted earnings of $0.90 per share, ahead of analyst estimates of about $0.75–$0.77. Revenue of $279.44 million also topped expectations of $265.82 million and grew 9% year over year. Alarm.com Reports Third Quarter 2026 Results
• Positive Sentiment: The company increased its full-year 2026 guidance. It also forecast Q4 SaaS and license revenue of approximately $194.6 million to $194.8 million, providing investors with a further indicator of expected growth. Alarm.com Reports Third Quarter 2026 Results
• Neutral Sentiment: Barclays raised its price target from $60 to $70 but kept an “equal weight” rating. The higher target signals improved valuation expectations, while the unchanged rating suggests the analyst sees limited reason to favor the shares over the broader market. Barclays stock recommendations

Insider Buying and Selling at Alarm.com

In related news, CFO Kevin Bradley sold 5,400 shares of the firm’s stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $55.07, for a total transaction of $297,378.00. Following the sale, the chief financial officer owned 78,222 shares of the company’s stock, valued at $4,307,685.54. This trade represents a 6.46% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Stephen Trundle sold 50,000 shares of the business’s stock in a transaction on Monday, August 24th. The stock was sold at an average price of $57.67, for a total value of $2,883,500.00. Following the sale, the chief executive officer owned 324,842 shares in the company, valued at $18,733,638.14. This represents a 13.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 4.80% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the stock. Weiss Ratings upgraded shares of Alarm.com from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, October 15th. Wall Street Zen upgraded shares of Alarm.com from a “hold” rating to a “buy” rating in a research report on Sunday, August 16th. Raymond James Financial restated a “strong-buy” rating and set a $65.00 target price on shares of Alarm.com in a research note on Friday, August 7th. Zacks Research downgraded Alarm.com from a “strong-buy” rating to a “hold” rating in a report on Tuesday, October 6th. Finally, JPMorgan Chase & Co. lifted their price target on Alarm.com from $40.00 to $50.00 and gave the company an “underweight” rating in a research note on Friday, October 30th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Alarm.com has a consensus rating of “Hold” and a consensus target price of $61.67.

Alarm.com Company Profile

Alarm.com Holdings, Inc develops cloud-based technology for connected security and smart automation. Its platform helps residential and commercial customers monitor and manage security systems, video cameras, access control, energy use, and other connected devices through mobile applications and web-based tools.

The company’s products and services are delivered primarily through a network of authorized service providers, including security dealers and integrators. Its offerings include intrusion detection, smart-home automation, video surveillance, commercial security and access management, energy management, and solutions designed for property managers and other business customers.

Founded in 2000 and headquartered in Vienna, Virginia, Alarm.com serves customers through service providers in the United States and international markets.