Alarm.com (NASDAQ:ALRM) Posts Earnings Results, Beats Expectations By $0.12 EPS

Alarm.com (NASDAQ:ALRM) announced its quarterly earnings data on Thursday. The software maker reported $0.77 earnings per share for the quarter, topping analysts’ consensus estimates of $0.65 by $0.12, FiscalAI reports. Alarm.com had a net margin of 11.11% and a return on equity of 15.74%. The firm had revenue of $277.73 million during the quarter, compared to analyst estimates of $264.96 million. During the same period in the previous year, the business posted $0.60 EPS. The business’s quarterly revenue was up 9.2% on a year-over-year basis. 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 Price Performance

ALRM stock opened at $57.53 on Friday. The stock has a market capitalization of $2.85 billion, a price-to-earnings ratio of 25.46, a PEG ratio of 1.89 and a beta of 0.76. The firm’s 50-day moving average price is $49.52 and its two-hundred day moving average price is $47.13. The company has a current ratio of 5.16, a quick ratio of 4.55 and a debt-to-equity ratio of 0.57. Alarm.com has a 12-month low of $41.49 and a 12-month high of $59.53.

Insider Activity

In other news, insider Daniel Kerzner sold 3,944 shares of Alarm.com stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $43.78, for a total value of $172,668.32. Following the sale, the insider directly owned 101,141 shares in the company, valued at approximately $4,427,952.98. This trade represents a 3.75% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Daniel Ramos sold 2,000 shares of the company’s stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $46.50, for a total value of $93,000.00. Following the transaction, the insider owned 53,099 shares of the company’s stock, valued at approximately $2,469,103.50. This represents a 3.63% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 31,893 shares of company stock valued at $1,428,505. Company insiders own 4.80% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Virtu Financial LLC bought a new position in Alarm.com in the 4th quarter worth $264,000. Invesco Ltd. boosted its stake in shares of Alarm.com by 8.6% during the 4th quarter. Invesco Ltd. now owns 243,828 shares of the software maker’s stock valued at $12,440,000 after purchasing an additional 19,228 shares in the last quarter. EP Wealth Advisors LLC purchased a new position in shares of Alarm.com during the fourth quarter valued at about $241,000. Mackenzie Financial Corp raised its stake in Alarm.com by 34.3% in the fourth quarter. Mackenzie Financial Corp now owns 42,044 shares of the software maker’s stock worth $2,172,000 after buying an additional 10,727 shares in the last quarter. Finally, NewEdge Advisors LLC raised its stake in Alarm.com by 960.9% in the fourth quarter. NewEdge Advisors LLC now owns 14,174 shares of the software maker’s stock worth $723,000 after buying an additional 12,838 shares in the last quarter. 91.74% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

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