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

Alarm.com (NASDAQ:ALRM) issued 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 return on equity of 14.99% and a net margin of 12.36%.The firm 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 business posted $0.60 EPS. The firm’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 Stock Performance

ALRM stock traded down $0.37 during trading on Thursday, reaching $56.29. The company had a trading volume of 407,983 shares, compared to its average volume of 418,691. The firm has a 50-day simple moving average of $49.28 and a 200-day simple moving average of $47.05. The company has a market cap of $2.78 billion, a price-to-earnings ratio of 23.36, a price-to-earnings-growth ratio of 1.90 and a beta of 0.76. 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 twelve month low of $41.49 and a twelve month high of $59.53.

Analysts Set New Price Targets

A number of brokerages have commented on ALRM. Barclays boosted 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. Wall Street Zen upgraded shares of Alarm.com from a “hold” rating to a “buy” rating in a report on Sunday, July 12th. Finally, Weiss Ratings raised shares of Alarm.com from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, July 29th. Three research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Alarm.com has a consensus rating of “Reduce” and a consensus target price of $47.50.

Insider Activity at Alarm.com

In related news, CEO Stephen Trundle sold 6,073 shares of the company’s stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $43.78, for a total value of $265,875.94. Following the transaction, the chief executive officer directly owned 324,842 shares of the company’s stock, valued at $14,221,582.76. This represents a 1.84% decrease in their position. The transaction was disclosed in a legal 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 Ramos sold 8,000 shares of the stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $46.23, for a total value of $369,840.00. Following the completion of the transaction, the insider directly owned 55,099 shares in the company, valued at $2,547,226.77. This represents a 12.68% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 31,893 shares of company stock worth $1,428,505. 4.80% of the stock is owned by company insiders.

Institutional Trading of Alarm.com

A number of hedge funds and other institutional investors have recently made changes to their positions in ALRM. California State Teachers Retirement System increased its stake in shares of Alarm.com by 0.5% during the second quarter. California State Teachers Retirement System now owns 43,287 shares of the software maker’s stock worth $2,449,000 after buying an additional 226 shares during the period. Stifel Financial Corp lifted its stake 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 last quarter. Inspire Investing LLC grew its holdings in Alarm.com by 6.7% during the 4th quarter. Inspire Investing LLC now owns 9,125 shares of the software maker’s stock worth $466,000 after acquiring an additional 573 shares in the last quarter. Captrust Financial Advisors grew its holdings in Alarm.com by 2.6% during the 4th 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 in the last quarter. Finally, Alps Advisors Inc. increased its position in shares of Alarm.com by 4.4% in the 4th quarter. Alps Advisors Inc. now owns 16,077 shares of the software maker’s stock valued at $820,000 after purchasing an additional 678 shares during 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.