# Alarm.com Holdings, Inc. (ALRM)

Informational only - not investment advice.

CIK: 0001459200
SIC: 7372 Services-Prepackaged Software
SIC breadcrumb: [Services](/division/I/) > [Business Services](/major-group/73/) > [SIC 7372 Services-Prepackaged Software](/industry/7372/)
Latest 10-K filed: 2026-02-19
SEC page: https://www.sec.gov/edgar/browse/?CIK=1459200
Filing source: https://www.sec.gov/Archives/edgar/data/1459200/000145920026000005/alrm-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-19 · accession 0001459200-26-000005 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001459200.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 1,011,187,000 USD | 2025 | verified |
| Net income | 131,628,000 USD | 2025 | verified |
| Assets | 2,136,591,000 USD | 2025 | verified |
| Free cash flow | 137,049,000 USD | 2025 | computed |
| Net margin | 13.02% | 2025 | computed |
| Operating margin | 13.22% | 2025 | computed |
| Revenue YoY | +7.59% | 2025 | computed |
| ROE | 15.52% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | ALRM | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 13.0% | 1.5% | 74 | 122 |
| Operating margin | 13.2% | 1.3% | 73 | 121 |
| Revenue growth | 7.6% | 13.5% | 28 | 124 |
| FCF margin | 13.6% | 19.3% | 34 | 120 |
| ROE | 15.5% | 2.0% | 77 | 112 |
| ROA | 6.2% | 0.9% | 72 | 124 |
| Liabilities / equity | 1.47 | 0.91 | 64 | 113 |
| Current ratio | 1.92 | 1.57 | 64 | 124 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 7372 Services-Prepackaged Software, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 1011187000 | USD | 2025 | 2026-02-19 |
| Net income | 131628000 | USD | 2025 | 2026-02-19 |
| Assets | 2136591000 | USD | 2025 | 2026-02-19 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-19. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001459200.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 261,106,000 | 338,937,000 | 420,494,000 | 502,363,000 | 618,003,000 | 748,969,000 | 842,559,000 | 881,682,000 | 939,827,000 | 1,011,187,000 |
| Net income |  | 29,251,000 | 21,524,000 | 53,330,000 | 76,660,000 | 51,175,000 | 55,631,000 | 80,340,000 | 122,513,000 | 131,628,000 |
| Operating income | 14,058,000 | 33,374,000 | 12,202,000 | 50,413,000 | 56,298,000 | 61,572,000 | 51,037,000 | 66,829,000 | 108,548,000 | 133,638,000 |
| Diluted EPS | 0.21 | 0.59 | 0.43 | 1.06 | 1.53 | 1.01 | 1.07 | 1.53 | 2.29 | 2.46 |
| Operating cash flow | 22,600,000 | 57,187,000 | 60,710,000 | 47,112,000 | 102,080,000 | 103,157,000 | 56,901,000 | 135,965,000 | 206,413,000 | 153,330,000 |
| Capital expenditures | 9,055,000 | 10,464,000 | 11,015,000 | 19,324,000 | 16,141,000 | 11,062,000 | 28,640,000 | 7,517,000 | 10,133,000 | 16,281,000 |
| Share buybacks | 11,000 | 9,000 | 1,000 | 0.00 | 5,149,000 | 0.00 | 78,844,000 | 27,298,000 | 75,000,000 | 41,561,000 |
| Assets | 261,245,000 | 371,641,000 | 440,985,000 | 557,799,000 | 731,687,000 | 1,232,015,000 | 1,329,375,000 | 1,439,563,000 | 2,038,208,000 | 2,136,591,000 |
| Liabilities | 69,996,000 | 138,814,000 | 163,396,000 | 190,938,000 | 253,244,000 | 605,960,000 | 706,528,000 | 714,709,000 | 1,266,915,000 | 1,245,581,000 |
| Stockholders' equity | 191,249,000 | 232,827,000 | 277,589,000 | 355,651,000 | 467,752,000 | 613,167,000 | 598,859,000 | 688,546,000 | 726,546,000 | 848,163,000 |
| Cash and cash equivalents | 140,634,000 | 96,329,000 | 146,061,000 | 119,629,000 | 253,459,000 | 710,621,000 | 622,165,000 | 696,983,000 | 1,220,701,000 | 960,584,000 |
| Free cash flow | 13,545,000 | 46,723,000 | 49,695,000 | 27,788,000 | 85,939,000 | 92,095,000 | 28,261,000 | 128,448,000 | 196,280,000 | 137,049,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | 8.63% | 5.12% | 10.62% | 12.40% | 6.83% | 6.60% | 9.11% | 13.04% | 13.02% |
| Operating margin | 5.38% | 9.85% | 2.90% | 10.04% | 9.11% | 8.22% | 6.06% | 7.58% | 11.55% | 13.22% |
| Return on equity |  | 12.56% | 7.75% | 15.00% | 16.39% | 8.35% | 9.29% | 11.67% | 16.86% | 15.52% |
| Return on assets |  | 7.87% | 4.88% | 9.56% | 10.48% | 4.15% | 4.18% | 5.58% | 6.01% | 6.16% |
| Liabilities / equity | 0.37 | 0.60 | 0.59 | 0.54 | 0.54 | 0.99 | 1.18 | 1.04 | 1.74 | 1.47 |
| Current ratio | 4.79 | 3.68 | 3.03 | 3.21 | 4.40 | 7.09 | 5.40 | 5.46 | 7.85 | 1.92 |

## As-reported value updates

1 tracked difference above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/ALRM/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001459200.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 0.35 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.28 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 0.30 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 221,854,000 | 19,351,000 | 0.37 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 226,237,000 | 31,171,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 223,283,000 | 23,404,000 | 0.44 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 233,807,000 | 32,520,000 | 0.62 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 240,497,000 | 36,456,000 | 0.67 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 242,240,000 | 30,133,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 238,822,000 | 27,712,000 | 0.52 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 254,308,000 | 34,217,000 | 0.63 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 256,400,000 | 35,100,000 | 0.65 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 261,657,000 | 34,599,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 265,193,000 | 23,382,000 | 0.47 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 277,734,000 | 24,208,000 | 0.48 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from ALRM's latest 10-K: [/company/ALRM/business/](/company/ALRM/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from ALRM's latest 10-K: [/company/ALRM/risk-factors/](/company/ALRM/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1459200/000145920026000015/alrm-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-06
Report date: 2026-06-30

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

You should read the following discussion and analysis of our financial condition and results of operations together with (1) our condensed consolidated financial statements and the related notes and other financial information included elsewhere in this Quarterly Report on Form 10-Q, or Quarterly Report, and (2) the audited consolidated financial statements and the related notes and management’s discussion and analysis of financial condition and results of operations for the fiscal year ended December 31, 2025 included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed on February 19, 2026, or Annual Report, with the Securities and Exchange Commission, or SEC. This Quarterly Report contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. These statements are often identified by the use of words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “objective,” “ongoing,” “plan,” “predict,” “project,” “potential,” “should,” “will,” “would,” or the negative or plural of these words or similar expressions or variations and such forward-looking statements include, but are not limited to, statements with respect to the anticipated impact of the global economic uncertainty and financial market conditions caused by significant worldwide events, including public health crises, and geopolitical upheaval (including the ongoing conflicts in Ukraine and in the Middle East and surrounding areas), disruptions to global supply chains, fluctuations in interest rates, tariffs, risk of recession and inflation (collectively, the Macroeconomic Conditions) on our business, results of operations and financial condition, including on our hardware sales and our Software-as-a-Service, or SaaS, and license revenue growth rate; our business strategy, plans and objectives for future operations; continued enhancements of our platform and offerings; the potential impact of trade policies and new or increased tariffs on our cost of hardware revenue and hardware revenue margins; and our future financial and business performance. The events described in these forward-looking statements are subject to a number of risks, uncertainties, assumptions and other factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified in the section titled “Risk Factors” set forth in Part II, Item 1A of this Quarterly Report and elsewhere in this and in our other SEC filings. You should not rely upon forward-looking statements as predictions of future events. Furthermore, such forward-looking statements speak only as of the date of this report. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.

Overview

Alarm.com is the leading platform for intelligently connected properties. Our cloud-based platform offers an expansive suite of Internet of Things, or IoT, solutions addressing global opportunities in the residential, multi-family, small business, enterprise commercial and energy markets. Alarm.com’s solution suite includes security, video surveillance and video analytics, energy management, access control, electric utility grid management, active shooter detection, water management, personal safety and data-rich emergency response. During 2025, our platforms processed more than 365 billion data points generated by over 170 million connected devices. We believe this scale of subscribers, connected devices and data operations makes us the leader in the connected property market.

Alarm.com has established a global network of trusted service provider partners who distribute our solutions to their customers. Our service provider partners represent a wide range of independent businesses, and are experts at selling, installing and supporting our technology. They depend on the Alarm.com platform for connected property technology and to operate and manage their businesses efficiently.

Alarm.com primarily generates SaaS and license revenue through our service provider partners, who resell our services and pay us monthly fees. Contracts with our service provider partners typically have an initial term of one year, with subsequent renewal terms of one year. Our service provider partners have indicated that they typically have three to five-year service contracts with residential and commercial property owners who use our solutions. We also generate hardware and other revenue, primarily from our service provider partners and distributors. Our hardware sales include connected devices that enable our services, such as video cameras, video recorders, gunshot detection sensors, gateway modules and smart thermostats. We believe our network of service providers and the length of our service relationships with residential and commercial property owners, combined with our robust SaaS platforms and over 20 years of operating experience, contribute to a compelling business model.

Our Solutions and Integrated Platforms

Our solutions are designed to make both residential and commercial properties safer, smarter and more efficient. Our technology platforms support property owners who subscribe to our services, the hardware partners who manufacture devices that integrate with our platforms and the service provider partners who install and maintain our solutions.

The Alarm.com platform enables our service provider partners to address the needs of a broad range of residential and commercial customers. They can deploy interactive security, video monitoring, property automation, access control, energy management, gunshot detection, water management, vehicle and fleet management, and personal safety solutions as stand-alone offerings or as integrated solutions.

25

Highlights of Second Quarter Results

We primarily generate SaaS and license revenue, our largest source of revenue, through our service provider partners, who resell our services and pay us monthly fees. Our service provider partners sell, install and support Alarm.com solutions that enable residential and commercial property owners to intelligently secure, connect, control and automate their properties. Our subscribers consist of all of the properties maintained by those residential and commercial property owners to which we are delivering at least one of our solutions. We derive a portion of our revenue from licensing our intellectual property to third parties on a per customer basis. SaaS and license revenue represented 68% of our revenue during the three and six months ended June 30, 2026, as compared to 67% and 68% in the same periods in the prior year.

We also generate revenue from the sale of many types of hardware, including video cameras, video recorders, cellular radio modules, smart thermostats, image sensors, gunshot detection sensors and other peripherals, that enable our solutions. Our hardware and other revenue also includes our revenue from the sale of perpetual licenses that provide our customers in the commercial market the right to use our video surveillance software for an indefinite period of time in exchange for a one-time license fee. Additionally, our hardware and other revenue includes our revenue from the sale of licenses that provide our customers the right to use our gunshot detection solution in exchange for license fees. Hardware and other revenue represented 32% of our revenue during the three and six months ended June 30, 2026, as compared to 33% and 32% in the same periods in the prior year. We typically expect hardware and other revenue to fluctuate as a percentage of total revenue.

Highlights of our financial performance for the periods covered in this Quarterly Report include:

•SaaS and license revenue increased 11% to $188.8 million during the three months ended June 30, 2026 from $170.0 million during the three months ended June 30, 2025. SaaS and license revenue increased 11% to $370.3 million during the six months ended June 30, 2026 from $333.8 million during the six months ended June 30, 2025.

•Total revenue increased 9% to $277.7 million during the three months ended June 30, 2026 from $254.3 million during the three months ended June 30, 2025. Total revenue increased 10% to $542.9 million during the six months ended June 30, 2026 from $493.1 million during the six months ended June 30, 2025.

•Net income decreased to $24.2 million during the three months ended June 30, 2026, as compared to $34.2 million during the three months ended June 30, 2025. Net income decreased to $47.6 million during the six months ended June 30, 2026, as compared to $61.9 million during the six months ended June 30, 2025. Net income attributable to common stockholders decreased to $24.2 million during the three months ended June 30, 2026, as compared to $34.6 million during the three months ended June 30, 2025. Net income attributable to common stockholders decreased to $47.8 million during the six months ended June 30, 2026, as compared to $62.5 million during the six months ended June 30, 2025.

•Non-GAAP adjusted EBITDA, a non-GAAP measurement of operating performance, increased to $57.7 million during the three months ended June 30, 2026 from $49.9 million during the three months ended June 30, 2025. Non-GAAP adjusted EBITDA increased to $107.3 million during the six months ended June 30, 2026 from $95.7 million during the six months ended June 30, 2025. See the "Non-GAAP Measures" section of Item 2. "Management’s Discussion and Analysis of Financial Condition and Results of Operations" for details on the changes made to the definition of non-GAAP adjusted EBITDA during the six months ended June 30, 2026.

Please see Non-GAAP Measures below in this section of this Quarterly Report for a discussion of the limitations of non-GAAP adjusted EBITDA (a non-GAAP measure) and a reconciliation of non-GAAP adjusted EBITDA from net income, the most directly comparable measurement in accordance with accounting principles generally accepted in the United States, or GAAP, for the three and six months ended June 30, 2026 and 2025.

Recent Developments

On May 29, 2026, we paid $14.1 million in cash to purchase an additional investment in SafeStreets USA, LLC, to maintain our 24.7% ownership percentage. This investment is included in the Alarm.com segment and is accounted for under the equity method of accounting.

The global economy, credit markets and financial markets have and may continue to experience significant volatility as a result of the Macroeconomic Conditions. These Macroeconomic Conditions have and may continue to create supply chain disruptions, inventory disruptions, and fluctuations in economic growth, including fluctuations in employment rates, inflation, tariffs, energy prices and consumer sentiment. It remains difficult to assess or predict the ultimate duration and economic impact of the Macroeconomic Conditions. The results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of the results that can be expected for our entire fiscal year ending December 31, 2026, which is increasingly true in periods of uncertainty, such as the uncertainty caused by the Macroeconomic Conditions. Prolonged uncertainty with respect to the Macroeconomic Conditions could cause further economic slowdown or cause other unpredictable events, each of which could adversely affect our business, results of operations or financial condition.

26

Other Business Metrics

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[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1459200/000145920026000005/alrm-20251231.htm
Complete FY 2025 MD&A: /company/ALRM/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-19
Report date: 2025-12-31

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

You should read the following discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and the related notes and other financial information included elsewhere in this Annual Report. Some of the information contained in this discussion and analysis or set forth elsewhere in this Annual Report, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. You should review Item 1A. "Risk Factors" and "Special Note Regarding Forward-Looking Statements" in this Annual Report for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.

Overview

Alarm.com is the leading platform for intelligently connected properties. Our cloud-based platform offers an expansive suite of IoT solutions addressing global opportunities in the residential, multi-family, small business, enterprise commercial and energy markets. Alarm.com’s solution suite includes security, video surveillance and video analytics, energy management, access control, electric utility grid management, active shooter detection, water management, personal safety and data-rich emergency response. During 2025, our platforms processed more than 365 billion data points generated by over 170 million connected devices. We believe this scale of subscribers, connected devices and data operations makes us the leader in the connected property market.

Alarm.com has established a global network of trusted service provider partners who distribute our solutions to their customers. Our service provider partners represent a wide range of independent businesses, and are experts at selling, installing and supporting our technology. They depend on the Alarm.com platform for connected property technology and to operate and manage their businesses efficiently.

Alarm.com primarily generates SaaS and license revenue through our service provider partners, who resell our services and pay us monthly fees. Contracts with our service provider partners typically have an initial term of one year, with subsequent renewal terms of one year. Our service provider partners have indicated that they typically have three to five-year service contracts with residential and commercial property owners who use our solutions. We also generate hardware and other revenue, primarily from our service provider partners and distributors. Our hardware sales include connected devices that enable our services, such as video cameras, video recorders, gunshot detection sensors, gateway modules and smart thermostats. We believe our network of service providers and the length of our service relationships with residential and commercial property owners, combined with our robust SaaS platforms and over 20 years of operating experience, contribute to a compelling business model.

Our solutions are designed to make both residential and commercial properties safer, smarter and more efficient. Our technology platforms support property owners who subscribe to our services, the hardware partners who manufacture devices that integrate with our platforms and the service provider partners who install and maintain our solutions.

58

The Alarm.com platform enables our service provider partners to address the needs of a broad range of residential and commercial customers. They can deploy interactive security, video monitoring, property automation, access control, energy management, gunshot detection, water management, vehicle and fleet management, and personal safety solutions as stand-alone offerings or as integrated solutions.

Executive Overview and Highlights of 2025 and 2024 Results

We primarily generate SaaS and license revenue, our largest source of revenue, through our service provider partners, who resell our services and pay us monthly fees. Our service provider partners sell, install and support Alarm.com solutions that enable residential and commercial property owners to intelligently secure, connect, control and automate their properties. Our subscribers consist of all of the properties maintained by those residential and commercial property owners to which we are delivering at least one of our solutions. We derive a portion of our revenue from licensing our intellectual property to third parties on a per customer basis. SaaS and license revenue represented 68%, 67% and 65% of our revenue in 2025, 2024 and 2023, respectively.

We also generate SaaS and license revenue from monthly fees charged to service providers on a per subscriber basis for access to our non-hosted software platform, or Software platform. The non-hosted software for interactive security, automation and related solutions is typically deployed and operated by the service provider in its own network operations center. Software license revenue represented 2%, 2% and 3% of our revenue in 2025, 2024 and 2023, respectively.

We also generate revenue from the sale of many types of hardware, including video cameras, video recorders, cellular radio modules, smart thermostats, image sensors, gunshot detection sensors and other peripherals, that enable our solutions. Our hardware and other revenue also includes our revenue from the sale of perpetual licenses that provide our customers in the commercial market the right to use our video surveillance software for an indefinite period of time in exchange for a one-time license fee. Additionally, our hardware and other revenue includes our revenue from the sale of licenses that provide our customers the right to use our gunshot detection solution in exchange for license fees. Hardware and other revenue represented 32%, 33% and 35% of our revenue in 2025, 2024 and 2023, respectively. We typically expect hardware and other revenue to fluctuate as a percentage of total revenue.

Highlights of our financial performance for the periods covered in this Annual Report include:

•SaaS and license revenue increased 9% to $689.4 million in 2025 from $631.2 million in 2024. SaaS and license revenue increased 11% to $631.2 million in 2024 from $569.2 million in 2023. Software license revenue decreased to $17.7 million in 2025 from $20.3 million in 2024. Software license revenue decreased to $20.3 million in 2024 from $23.2 million in 2023.

•Total revenue increased 8% to $1.0112 billion in 2025 from $939.8 million in 2024. Total revenue increased 7% to $939.8 million in 2024 from $881.7 million in 2023.

•Net income increased 7% to $131.6 million in 2025 from $122.5 million in 2024. Net income increased 52% to $122.5 million in 2024 from $80.3 million in 2023. Net income attributable to common stockholders increased 7% to $132.6 million in 2025 from $124.1 million in 2024. Net income attributable to common stockholders increased 53% to $124.1 million in 2024 from $81.0 million in 2023.

•Non-GAAP adjusted EBITDA, a non-GAAP measurement of operating performance, increased to $206.0 million in 2025 from $176.2 million in 2024. Non-GAAP adjusted EBITDA increased to $176.2 million in 2024 from $154.0 million in 2023.

Please see Non-GAAP Measures below in this section of this Annual Report for a discussion of the limitations of non-GAAP adjusted EBITDA (a non-GAAP measure) and a reconciliation of non-GAAP adjusted EBITDA from net income, the most directly comparable measurement in accordance with GAAP, for the years ended December 31, 2025, 2024 and 2023.

59

Historical Trends within the Financial Results

Information about current period and prior period acquisitions that may affect the comparability of our historical financial information is included in Item 1. Business – Governance – Corporate Information. Information about the 2029 Notes and the related interest expense as well as changes in legal costs, which may affect the comparability of historical financial information, is disclosed in the Comparison of Years Ended December 31, 2025 to December 31, 2024 section below within Item 7. "Management’s Discussion and Analysis of Financial Condition and Results of Operations." Information about investments in unconsolidated entities accounted for under the equity method of accounting and the related equity method income from our investments in unconsolidated entities as well as acquisitions, which may affect the comparability of historical financial information, is disclosed in the Comparison of Years Ended December 31, 2025 to December 31, 2024 section below within Item 7. "Management’s Discussion and Analysis of Financial Condition and Results of Operations."

Geographic Areas

We believe there is significant opportunity to expand our international business, as 5% of our total revenue during the year ended December 31, 2025 originated from customers located outside of North America. Our products are currently localized and available in over 50 countries outside of North America.

Recent Developments

On November 20, 2025, we paid $30.1 million in cash to purchase 20.3% of the outstanding shares of Pronet. We do not have a controlling financial interest in Pronet, but based on the legal form of Pronet, our level of ownership and our extent of influence, we concluded that this equity investment in Pronet, which is included in the Alarm.com segment, does not meet the criteria for consolidation and will be accounted for under the equity method of accounting.

On November 21, 2025, EnergyHub acquired 100% of the issued and outstanding shares of capital stock of RGS. RGS provides demand response aggregation and program management services for utilities. The acquisition is anticipated to strengthen EnergyHub’s position in the demand response market as well as make new demand energy response classes available to RGS customers. On November 21, 2025, in consideration for the purchase of 100% of the issued and outstanding shares of capital stock of RGS, we paid $77.2 million in cash. Pursuant to the terms of the stock purchase agreement, following the preliminary determination of the working capital of RGS as of the closing date, the purchase price increased by $1.6 million. The working capital adjustment is expected to be finalized during the first quarter of 2026. The purchase price allocation was not finalized as of the filing date of this Annual Report on Form 10-K and is primarily pending the final determination of the working capital adjustment.

On January 14, 2026, we paid $500.0 million in aggregate principal amount to holders of the 2026 Notes, fully settling the outstanding balance. The settlement was funded with cash on hand, consistent with our stated intent, with no shares of common stock issued.

The global economy, credit markets and financial markets have and may continue to experience significant volatility as a result of the Macroeconomic Conditions. These Macroeconomic Conditions have and may continue to create supply chain disruptions, inventory disruptions, and fluctuations in economic growth, including fluctuations in employment rates, inflation, tariffs, energy prices and consumer sentiment. It remains difficult to assess or predict the ultimate duration and economic impact of the Macroeconomic Conditions. Prolonged uncertainty with respect to the Macroeconomic Conditions could cause further economic slowdown or cause other unpredictable events, each of which could adversely affect our business, results of operations or financial condition.

Other Business Metrics

We regularly monitor a number of financial and operating metrics in order to measure our current performance and estimate our future performance. Our other business metrics may be calculated in a manner different from the way similar business metrics used by other companies are calculated and inclu

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/ALRM/mda/fy2025/
All MD&A years: /company/ALRM/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/ALRM/mda/fy2024/): filed 2025-02-20; accession 0001459200-25-000004 (https://www.sec.gov/Archives/edgar/data/1459200/000145920025000004/alrm-20241231.htm)
- [FY 2023 MD&A](/company/ALRM/mda/fy2023/): filed 2024-02-22; accession 0001459200-24-000008 (https://www.sec.gov/Archives/edgar/data/1459200/000145920024000008/alrm-20231231.htm)
- [FY 2022 MD&A](/company/ALRM/mda/fy2022/): filed 2023-02-24; accession 0001459200-23-000006 (https://www.sec.gov/Archives/edgar/data/1459200/000145920023000006/alrm-20221231.htm)
- [FY 2021 MD&A](/company/ALRM/mda/fy2021/): filed 2022-02-24; accession 0001459200-22-000008 (https://www.sec.gov/Archives/edgar/data/1459200/000145920022000008/alrm-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 7372 Services-Prepackaged Software) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity

Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/ALRM.md · JSON record: /company/ALRM.json · verified financials: /company/ALRM/financials.json / /company/ALRM/financials.csv · machine TOC for the whole site: /llms.txt