Alarm.com (NASDAQ:ALRM) Announces Earnings Results

Alarm.com (NASDAQ:ALRM) released its quarterly earnings data on Thursday. The software maker reported $0.77 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.65 by $0.12, FiscalAI reports. Alarm.com had a return on equity of 14.99% and a net margin of 12.36%.The business had revenue of $277.73 million during the quarter, compared to analysts’ expectations of $264.96 million. During the same period in the prior year, the firm posted $0.60 EPS. The business’s quarterly revenue was up 9.2% compared to the same quarter last year. 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 Stock Performance

NASDAQ ALRM traded up $1.24 on Friday, reaching $57.53. The stock had a trading volume of 495,347 shares, compared to its average volume of 481,393. The company has a debt-to-equity ratio of 0.57, a quick ratio of 4.55 and a current ratio of 5.16. Alarm.com has a 12-month low of $41.49 and a 12-month high of $59.53. The business’s 50-day moving average price is $49.28 and its 200 day moving average price is $47.05. The stock has a market cap of $2.85 billion, a P/E ratio of 23.87, a price-to-earnings-growth ratio of 1.90 and a beta of 0.76.

Insider Buying and Selling at Alarm.com

In other Alarm.com news, insider Daniel Ramos sold 8,000 shares of the firm’s stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $46.23, for a total transaction of $369,840.00. Following the transaction, the insider directly owned 55,099 shares of the company’s stock, valued at approximately $2,547,226.77. This trade represents a 12.68% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Daniel Kerzner sold 3,944 shares of Alarm.com stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $43.78, for a total transaction of $172,668.32. Following the completion of the transaction, the insider owned 101,141 shares in the company, valued at approximately $4,427,952.98. This represents a 3.75% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 31,893 shares of company stock valued at $1,428,505. Insiders own 4.80% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. EP Wealth Advisors LLC acquired a new stake in shares of Alarm.com in the fourth quarter valued at about $241,000. Jain Global LLC acquired a new stake in Alarm.com in the 4th quarter valued at about $206,000. Dynamic Technology Lab Private Ltd purchased a new position in Alarm.com during the 4th quarter valued at about $224,000. CIBC Bancorp USA Inc. acquired a new position in Alarm.com during the third quarter worth about $270,000. Finally, Glenmede Investment Management LP lifted its holdings in shares of Alarm.com by 21.4% in the third quarter. Glenmede Investment Management LP now owns 3,991 shares of the software maker’s stock valued at $212,000 after purchasing an additional 704 shares in the last quarter. 91.74% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities analysts recently issued reports on ALRM shares. Weiss Ratings raised Alarm.com from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, July 29th. Wall Street Zen upgraded shares of Alarm.com from a “hold” rating to a “buy” rating in a research report on Sunday, July 12th. Barclays increased their target price on shares of Alarm.com from $50.00 to $55.00 and gave the company an “equal weight” rating in a research report on Friday, May 8th. Finally, Raymond James Financial reiterated a “strong-buy” rating and set a $65.00 price target on shares of Alarm.com in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Alarm.com currently has a consensus rating of “Hold” and an average price target of $53.33.

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.