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

Alarm.com (NASDAQ:ALRM) posted its quarterly earnings data on Thursday. The software maker reported $0.77 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.65 by $0.12, FiscalAI reports. The business had revenue of $277.73 million during the quarter, compared to analyst estimates of $264.96 million. Alarm.com had a return on equity of 14.99% and a net margin of 12.36%.The company’s revenue for the quarter was up 9.2% on a year-over-year basis. During the same period last year, the company earned $0.60 EPS. 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 Trading Down 0.7%

Shares of ALRM traded down $0.37 during trading hours on Thursday, reaching $56.29. 407,983 shares of the company traded hands, compared to its average volume of 418,691. The stock’s fifty day moving average price is $49.28 and its 200 day moving average price is $47.05. The company has a current ratio of 5.16, a quick ratio of 4.55 and a debt-to-equity ratio of 0.57. The firm has a market cap of $2.78 billion, a price-to-earnings ratio of 23.36, a PEG ratio of 1.90 and a beta of 0.76. Alarm.com has a 12-month low of $41.49 and a 12-month high of $59.53.

Insider Activity at Alarm.com

In other Alarm.com news, CFO Kevin Christopher Bradley sold 724 shares of the business’s stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $48.46, for a total value of $35,085.04. Following the completion of the sale, the chief financial officer directly owned 83,622 shares of the company’s stock, valued at $4,052,322.12. The trade was a 0.86% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Daniel Kerzner sold 3,944 shares of the company’s stock in a transaction dated Tuesday, May 26th. The stock was 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 $4,427,952.98. This represents a 3.75% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 31,893 shares of company stock worth $1,428,505. Corporate insiders own 4.80% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of ALRM. Bank of Montreal Can raised its holdings in shares of Alarm.com by 625.1% in the 4th quarter. Bank of Montreal Can now owns 2,231,227 shares of the software maker’s stock valued at $113,837,000 after purchasing an additional 1,923,525 shares in the last quarter. Nuveen LLC boosted its stake in shares of Alarm.com by 197.3% during the fourth quarter. Nuveen LLC now owns 316,427 shares of the software maker’s stock valued at $16,144,000 after purchasing an additional 209,995 shares in the last quarter. Lazard Asset Management LLC increased its holdings in Alarm.com by 86.4% during the fourth quarter. Lazard Asset Management LLC now owns 347,611 shares of the software maker’s stock valued at $17,735,000 after buying an additional 161,115 shares during the period. Millennium Management LLC increased its holdings in Alarm.com by 112.4% during the third quarter. Millennium Management LLC now owns 236,006 shares of the software maker’s stock valued at $12,527,000 after buying an additional 124,911 shares during the period. Finally, Norges Bank bought a new position in Alarm.com in the fourth quarter worth approximately $6,062,000. 91.74% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of brokerages recently issued reports on ALRM. Weiss Ratings upgraded Alarm.com from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, July 29th. Wall Street Zen raised shares of Alarm.com from a “hold” rating to a “buy” rating in a research note on Sunday, July 12th. Finally, Barclays raised their target price on shares of Alarm.com from $50.00 to $55.00 and gave the stock an “equal weight” rating in a report on Friday, May 8th. Three equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Alarm.com currently has a consensus rating of “Reduce” and a consensus target price of $47.50.

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.