Alarm.com Holdings, Inc.

Alarm.com Holdings, Inc.

ALRMVertical SaaS

Alarm.com is the leading cloud platform for smart residential and commercial property solutions.

Key figures

Data as of Jun 2026 · Pills compare vs Mar 2026
ARR Multiple
2.5x
+0.4x
ARR
$1.1B
+4.7%
YoY Growth
9.2%
-1.8pp
Market Cap
$2.8B
+20.5%
Revenue (Q)
$278M
+4.7%
Gross Margin
65.6%
-0.3pp
Op. Margin
11.7%
-0.2pp
Rule of 40
20.9
-2.0
Magic Number
1.46
+1.05

Revenue, margins & ratios from SEC filings; market cap & ARR multiple from market data. Market cap & ARR multiple use the close of 13 Oct 2026; their pills compare vs the Jun 2026 quarter-end (2.1x).

Valuation by quarter

Current ARR Multiple: 2.1x

Calculated valuation

FRAMEWORK EST.
Valuation data is not available for this company.

Strategy recommendations

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AI Replacement RiskMODERATE
23/ 100
LowModerateElevatedHigh

Estimated likelihood that general-purpose AI replaces this product.

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Why this rating

From the AI Risk Calculator model

Structural moats (regulation, integration depth, or proprietary data) make AI-only replacement unlikely in the near term.

What's driving the score
SecurityCategory baseline
low base
Workflow complexity4/5
-6 risk
Data moat3/5
-1 risk
Integration depthHigh
-10 risk
SegmentMid Market
neutral
IndustryOther
neutral
Own AI integration2/5
+1.6 risk

Company overview

Alarm.com is the leading cloud platform for smart residential and commercial property solutions. It provides the technology behind home and business security, automation, video surveillance, energy management, and access control. Stephen Trundle founded it in 2000 in Tysons, Virginia. The business model is B2B2C. Alarm.com's platform is sold through a network of over 10,000 professional security dealers who install, monitor, and maintain systems for end customers.

The platform acts as the cloud intelligence layer connecting sensors, cameras, locks, thermostats, garage controllers, and other IoT devices into one remotely managed ecosystem. The backend handles real-time event processing, video analytics, AI-powered threat detection, dealer management tools, monitoring integration, and consumer mobile apps. Professional security systems built on Alarm.com differ from DIY alternatives through better reliability, cellular connectivity that avoids Wi-Fi dependency, professional monitoring, and smarter automation rules.

Product lines include residential security and automation, commercial intrusion and access control (Alarm.com for Business), cloud-managed commercial video surveillance (OpenEye), distributed energy management for utilities (EnergyHub), and connected car solutions. AI video analytics, including person detection, package detection, vehicle recognition, and unusual activity alerts, represent a growing value layer beyond basic security monitoring.

The platform supports roughly 9 million connected properties worldwide. Annual revenue is approximately $1.1 billion. SaaS and license revenue provide high-margin recurring income alongside hardware sales. SaaS gross margins exceed 85%. About 2,600 employees work at the company. Retention is naturally high because property security systems rarely get replaced once installed.

Entity information

Industry7372: Services-Prepackaged Software
Fiscal YearDec 31
IncorporatedDelaware
Phone(877) 389-4033
Address8281 GREENSBORO DRIVE, SUITE 100, TYSONS, VA, 22102
Mailing address8281 GREENSBORO DRIVE, SUITE 100, TYSONS, VA, 22102
EIN26-4247032
Entity typeoperating
SEC industry framework06 Technology

SaaS KPIs

Reported in at least 3 quarters

SaaS and license revenue

28 quarters
$188.8M
Q2 FY2026+7.7%

Non-GAAP free cash flow

21 quarters
$37.0M
Q2 FY2026-25.5%

Non-GAAP adjusted EBITDA

17 quarters
$57.7M
Q2 FY2026+16.3%

SaaS and License Revenue Renewal Rate

16 quarters
95%
Q2 FY2026+0.0pp

Adjusted EBITDA

15 quarters
$40.8M
Q3 FY2022+36.6%

Total Revenue

5 quarters
$172.5M
Q1 FY2021-72.1%

Management outlook

Given with Q2 FY2026 results (Jun 2026)
ReportedGuidanceFY2025 (cumulative)

Guided revenue, FY2026$1.079B – $1.089B
Midpoint$1.084B
Growth vs FY2025+7.2%
Reported, Q1–Q2$542.9M
Implied Q3–Q4$536.1M – $546.5M
Full Year 2026
SaaS and license revenue$754.0 million - $754.4 million
Hardware and other revenue$325.0 million - $335.0 million
Non-GAAP adjusted EBITDA$221.0 million - $223.0 million
Non-GAAP adjusted net income attributable to common stockholders$156.0 million - $157.0 million
Non-GAAP adjusted net income attributable to common stockholders per diluted share$2.92 - $2.94
Estimated tax rate21.0%
Weighted average diluted shares outstanding56.3 million
Final six months of fiscal year 2026
Capital expenditures$5.0 million - $8.0 million
Q3 2026
SaaS and license revenue$189.8 million - $190.0 million

Quarterly financials

Left axis in $ (Revenue, Gross profit, Net income, S&M); right axis for ratios (Rule of 40, Magic number). Click a legend item to toggle it.

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