Alarm.com (NASDAQ:ALRM) Issues FY 2026 Earnings Guidance

Alarm.com (NASDAQ:ALRM) updated its FY 2026 earnings guidance on Thursday. The company provided EPS guidance of 2.780-2.790 for the period, compared to the consensus EPS estimate of 2.470. The company issued revenue guidance of $1.1 billion-$1.1 billion, compared to the consensus revenue estimate of $1.0 billion.

Analyst Ratings Changes

ALRM has been the topic of a number of recent analyst reports. Weiss Ratings reissued a “hold (c-)” rating on shares of Alarm.com in a research note on Tuesday, January 27th. Barclays decreased their price objective on shares of Alarm.com from $60.00 to $56.00 and set an “equal weight” rating on the stock in a report on Friday, November 7th. JPMorgan Chase & Co. dropped their target price on shares of Alarm.com from $55.00 to $40.00 and set an “underweight” rating for the company in a research note on Wednesday. Finally, Zacks Research lowered shares of Alarm.com from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 12th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $58.50.

Alarm.com Stock Down 0.0%

Shares of ALRM stock traded down $0.01 during trading hours on Thursday, hitting $45.20. 535,143 shares of the company were exchanged, compared to its average volume of 398,910. Alarm.com has a 52 week low of $44.71 and a 52 week high of $61.41. The company has a current ratio of 2.06, a quick ratio of 1.92 and a debt-to-equity ratio of 0.59. The business has a 50 day moving average of $49.93 and a two-hundred day moving average of $51.97. The company has a market capitalization of $2.25 billion, a PE ratio of 19.15, a PEG ratio of 1.66 and a beta of 0.79.

Alarm.com (NASDAQ:ALRM) last posted its quarterly earnings data on Thursday, February 19th. The software maker reported $0.72 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.66 by $0.06. Alarm.com had a net margin of 12.92% and a return on equity of 14.26%. The company had revenue of $261.66 million for the quarter, compared to the consensus estimate of $250.75 million. Alarm.com has set its FY 2026 guidance at 2.780-2.790 EPS. Analysts anticipate that Alarm.com will post 1.64 earnings per share for the current fiscal year.

Insider Transactions at Alarm.com

In other Alarm.com news, insider Jeffrey A. Bedell sold 22,727 shares of the stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $51.82, for a total transaction of $1,177,713.14. Following the transaction, the insider owned 505,805 shares in the company, valued at $26,210,815.10. This trade represents a 4.30% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Stephen C. Evans sold 1,154 shares of the company’s stock in a transaction on Friday, December 12th. The shares were sold at an average price of $52.27, for a total value of $60,319.58. Following the sale, the director owned 6,123 shares of the company’s stock, valued at approximately $320,049.21. The trade was a 15.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 26,154 shares of company stock worth $1,357,388. 5.80% of the stock is owned by company insiders.

Alarm.com News Summary

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

• Positive Sentiment: Q4 results topped estimates — Alarm.com reported $0.72 EPS vs. $0.66 expected and revenue of $261.7M vs. $250.8M consensus; net margin and ROE remain healthy. Press Release
• Positive Sentiment: Raised FY‑2026 guidance — Management set EPS guidance of $2.78–$2.79 (vs. street ~2.47) and revenue guidance ~ $1.1B (vs. ~ $1.0B), indicating stronger expected growth and margin expansion for the year. Business Wire: Q4 & FY Guidance
• Positive Sentiment: SaaS momentum — SaaS & license revenue grew 8.8% year‑over‑year to $180.2M in Q4, supporting recurring revenue visibility and the raised full‑year outlook. Business Wire: SaaS Revenue
• Neutral Sentiment: Options activity noted — Media flagged unusual options interest, which can signal trader expectations for a large move but is not directional by itself. MSN: Options Flow
• Neutral Sentiment: Short‑interest data appears malformed/unclear in recent reports (reported as zero/NaN), so no reliable signal about short pressure at this time.
• Negative Sentiment: Analyst cut — JPMorgan trimmed its price target to $40 and moved to an “underweight” stance, which could exert selling pressure and weigh on sentiment despite the upbeat guidance. Benzinga: JPMorgan Lowered PT

Institutional Investors Weigh In On Alarm.com

Hedge funds have recently modified their holdings of the company. Strs Ohio bought a new position in Alarm.com in the 1st quarter valued at about $56,000. Kemnay Advisory Services Inc. bought a new position in shares of Alarm.com in the fourth quarter valued at approximately $59,000. Caden Capital Partners LP bought a new position in shares of Alarm.com in the fourth quarter valued at approximately $106,000. Vestcor Inc bought a new stake in Alarm.com during the third quarter worth $154,000. Finally, Osaic Holdings Inc. grew its holdings in Alarm.com by 95.3% during the second quarter. Osaic Holdings Inc. now owns 3,172 shares of the software maker’s stock worth $179,000 after buying an additional 1,548 shares in the last quarter. Institutional investors and hedge funds own 91.74% of the company’s stock.

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.