Alarm.com (NASDAQ:ALRM) Posts Quarterly Earnings Results

Alarm.com (NASDAQ:ALRM) posted its quarterly earnings results on Thursday. The software maker reported $0.65 EPS for the quarter, topping analysts’ consensus estimates of $0.60 by $0.05, FiscalAI reports. The firm had revenue of $265.19 million during the quarter, compared to analyst estimates of $250.94 million. Alarm.com had a return on equity of 15.15% and a net margin of 12.36%.The business’s revenue for the quarter was up 11.1% on a year-over-year basis. During the same period last year, the company earned $0.54 earnings per share. Alarm.com updated its FY 2026 guidance to 2.810-2.810 EPS.

Here are the key takeaways from Alarm.com’s conference call:

• Alarm.com beat expectations in Q1 with $181.5M in SaaS & license revenue (+10.8% YoY), total revenue of $265.2M (+11%), adjusted EBITDA of $49.6M and EPS of $0.65 (+14% YoY).
• A revenue retention rate above 95% (≈95.4%) and an outsized contribution from EnergyHub drove the SaaS beat; EnergyHub now supports >155 utilities covering ~75–77M meters and management expects EnergyHub growth in the mid‑20s percentage range.
• Commercial product momentum from OpenEye—including new AI features AI Visual Check and AI Visual Search included in its premium subscription—was highlighted as rapidly adopted and a growth driver for enterprise video services.
• Management warned of hardware headwinds as memory supply shifted toward HBM for AI data centers, causing substantial memory cost increases that will require product price hikes and create demand uncertainty, while a Supreme Court tariff ruling will reduce tariff pass‑throughs (roughly ~$5M impact into H2) and made the hardware outlook cautious.
• Board authorized up to $150M in share repurchases over two years (428k shares bought for ~$20M in Q1) and the company retired $500M of convertible notes, signaling shareholder‑friendly capital allocation but lower cash balances.

Alarm.com Price Performance

Shares of NASDAQ ALRM opened at $47.60 on Friday. The stock’s 50-day simple moving average is $45.66 and its two-hundred day simple moving average is $48.46. Alarm.com has a twelve month low of $41.50 and a twelve month high of $60.76. The firm has a market capitalization of $2.35 billion, a P/E ratio of 19.75, a P/E/G ratio of 1.65 and a beta of 0.79. The company has a quick ratio of 1.78, a current ratio of 1.92 and a debt-to-equity ratio of 0.58.

Insider Activity

In other news, CFO Kevin Christopher Bradley sold 1,510 shares of the business’s stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $45.97, for a total transaction of $69,414.70. Following the completion of the transaction, the chief financial officer owned 51,546 shares of the company’s stock, valued at approximately $2,369,569.62. The trade was a 2.85% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 5.80% of the company’s stock.

Institutional Investors Weigh In On Alarm.com

Hedge funds have recently bought and sold shares of the stock. Strs Ohio bought a new stake in Alarm.com during the first quarter valued at approximately $56,000. Kemnay Advisory Services Inc. bought a new position in shares of Alarm.com in the 4th quarter worth $59,000. Caden Capital Partners LP purchased a new stake in shares of Alarm.com during the 4th quarter valued at $106,000. Vestcor Inc purchased a new stake in shares of Alarm.com during the 3rd quarter valued at $154,000. Finally, Osaic Holdings Inc. lifted its holdings in shares of Alarm.com by 95.3% during the 2nd quarter. Osaic Holdings Inc. now owns 3,172 shares of the software maker’s stock worth $179,000 after acquiring an additional 1,548 shares during the last quarter. 91.74% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of analysts recently issued reports on the company. Zacks Research cut Alarm.com from a “strong-buy” rating to a “hold” rating in a report on Wednesday, March 25th. JPMorgan Chase & Co. reduced their target price on Alarm.com from $55.00 to $40.00 and set an “underweight” rating for the company in a report on Wednesday, February 18th. Barclays upped their price target on Alarm.com from $50.00 to $55.00 and gave the company an “equal weight” rating in a research report on Friday. Finally, Weiss Ratings restated a “hold (c-)” rating on shares of Alarm.com in a research report on Friday, April 24th. Three investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Reduce” and a consensus price target of $47.50.

Key Stories Impacting Alarm.com

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

• Positive Sentiment: Alarm.com beat Q1 estimates with EPS of $0.65 versus $0.60 expected, while revenue of $265.2 million also topped forecasts. Year-over-year revenue rose 11.1%, showing continued demand for its connected-property software platform. Alarm.com Reports First Quarter 2026 Results
• Positive Sentiment: The company increased full-year 2026 guidance, signaling management sees stronger profitability ahead. It now expects FY2026 EPS of about $2.81, above consensus, which supports the bullish reaction in the stock. Alarm.com Reports First Quarter 2026 Results
• Positive Sentiment: First-quarter SaaS and license revenue increased 10.8% to $181.5 million, suggesting the company’s recurring-revenue business remains healthy and could continue supporting margins and cash flow. Alarm.com Reports First Quarter 2026 Results

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.