Alarm.com (NASDAQ:ALRM) Posts Earnings Results

Alarm.com (NASDAQ:ALRM) announced its earnings results on Thursday. The software maker reported $0.65 EPS for the quarter, beating analysts’ consensus estimates of $0.60 by $0.05, FiscalAI reports. Alarm.com had a return on equity of 14.79% and a net margin of 13.11%.The business had revenue of $265.19 million during the quarter, compared to analysts’ expectations of $250.94 million. During the same quarter in the prior year, the firm earned $0.54 earnings per share. The business’s revenue was up 11.1% compared to the same quarter last year. Alarm.com updated its FY 2026 guidance to 2.810-2.810 EPS.

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

• Alarm.com beat expectations in Q1 with $181.5M in SaaS & license revenue (+10.8% YoY), total revenue of $265.2M (+11%), adjusted EBITDA of $49.6M and EPS of $0.65 (+14% YoY).
• A revenue retention rate above 95% (?95.4%) and an outsized contribution from EnergyHub drove the SaaS beat; EnergyHub now supports >155 utilities covering ~75–77M meters and management expects EnergyHub growth in the mid?20s percentage range.
• Commercial product momentum from OpenEye—including new AI features AI Visual Check and AI Visual Search included in its premium subscription—was highlighted as rapidly adopted and a growth driver for enterprise video services.
• Management warned of hardware headwinds as memory supply shifted toward HBM for AI data centers, causing substantial memory cost increases that will require product price hikes and create demand uncertainty, while a Supreme Court tariff ruling will reduce tariff pass?throughs (roughly ~$5M impact into H2) and made the hardware outlook cautious.
• Board authorized up to $150M in share repurchases over two years (428k shares bought for ~$20M in Q1) and the company retired $500M of convertible notes, signaling shareholder?friendly capital allocation but lower cash balances.

Alarm.com Price Performance

Shares of NASDAQ:ALRM traded up $1.56 during midday trading on Thursday, hitting $47.00. The company had a trading volume of 621,535 shares, compared to its average volume of 469,610. Alarm.com has a twelve month low of $41.50 and a twelve month high of $60.76. The company has a debt-to-equity ratio of 0.58, a current ratio of 1.92 and a quick ratio of 1.78. The stock has a market cap of $2.32 billion, a price-to-earnings ratio of 19.11, a price-to-earnings-growth ratio of 1.59 and a beta of 0.79. The business’s 50-day simple moving average is $45.66 and its 200-day simple moving average is $48.46.

Wall Street Analyst Weigh In

A number of brokerages have commented on ALRM. Barclays reduced their target price on Alarm.com from $56.00 to $50.00 and set an “equal weight” rating for the company in a report on Friday, February 20th. Weiss Ratings reissued a “hold (c-)” rating on shares of Alarm.com in a report on Friday, April 24th. JPMorgan Chase & Co. reduced their target price on Alarm.com from $55.00 to $40.00 and set an “underweight” rating for the company in a report on Wednesday, February 18th. Finally, Zacks Research cut Alarm.com from a “strong-buy” rating to a “hold” rating in a report on Wednesday, March 25th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Alarm.com currently has an average rating of “Hold” and an average target price of $56.67.

Insider Activity at Alarm.com

In related news, CFO Kevin Christopher Bradley sold 1,510 shares of the stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $45.97, for a total value of $69,414.70. Following the completion of the sale, the chief financial officer owned 51,546 shares of the company’s stock, valued at approximately $2,369,569.62. This trade represents a 2.85% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 5.80% of the company’s stock.

Institutional Investors Weigh In On Alarm.com

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. California State Teachers Retirement System increased its holdings in shares of Alarm.com by 0.5% in the second quarter. California State Teachers Retirement System now owns 43,287 shares of the software maker’s stock valued at $2,449,000 after purchasing an additional 226 shares during the last quarter. Stifel Financial Corp grew its position in Alarm.com by 1.8% in the fourth quarter. Stifel Financial Corp now owns 14,176 shares of the software maker’s stock worth $723,000 after acquiring an additional 254 shares during the period. Inspire Investing LLC grew its position in Alarm.com by 6.7% in the fourth quarter. Inspire Investing LLC now owns 9,125 shares of the software maker’s stock worth $466,000 after acquiring an additional 573 shares during the period. Captrust Financial Advisors grew its position in Alarm.com by 2.6% in the fourth quarter. Captrust Financial Advisors now owns 23,910 shares of the software maker’s stock worth $1,220,000 after acquiring an additional 600 shares during the period. Finally, Alps Advisors Inc. grew its position in Alarm.com by 4.4% in the fourth quarter. Alps Advisors Inc. now owns 16,077 shares of the software maker’s stock worth $820,000 after acquiring an additional 678 shares during the period. Institutional investors and hedge funds own 91.74% of the company’s stock.

Key Alarm.com News

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

• Positive Sentiment: Q1 results: Alarm.com reported $0.65 EPS versus the $0.60 consensus and revenue of $265.2M vs. ~$251M expected — a clear beat on both earnings and top line that signals accelerating growth. Business Wire: Q1 Results
• Positive Sentiment: Raised FY?2026 guidance: Management set FY EPS at 2.810 (vs. street ~2.68), and reiterated revenue expectations around $1.1B — the firm guidance raise reduces execution risk and supports multiple expansion. Business Wire: Guidance
• Positive Sentiment: Recurring revenue strength: SaaS & license revenue grew ~10.8% to $181.5M, underlining the subscription-driven model and predictable cash flow that investors value. Higher net margin (13.1%) and ROE (~14.8%) also support profitability narratives. Business Wire: SaaS Growth
• Neutral Sentiment: Coverage and detail: Multiple outlets published earnings snapshots and the full call transcript (Yahoo, MSN, The Motley Fool), useful for traders seeking quarter detail but largely reiterative of the beat and guidance. Yahoo: Earnings Snapshot MSN: Coverage Fool: Transcript
• Neutral Sentiment: Critical/analyst takes: A recent critical review compares Alarm.com to peers; it may offer longer?term valuation or competitive concerns but did not appear to blunt the market’s positive reaction to the beat and guidance. American Banking News: Review

About Alarm.com

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.