Download PDF

1. Company Snapshot

1.a. Company Description

Alarm.com Holdings, Inc.provides cloud-based solutions for smart residential and commercial properties in the United States and internationally.It operates in two segments, Alarm.com and Other.


The company provides interactive security solutions to control and monitor their security systems, as well as connected security devices, including door locks, motion sensors, door locks, garage doors, Internet of Things, thermostats, and video cameras; and video monitoring solutions, such as video analytics, live streaming, video doorbell, video clips, video alerts, continuous high definition recording, and commercial video surveillance solutions.It also offers intelligent automation and energy management solutions comprising scenes button; smart thermostat schedules; responsive savings; precision comfort; energy usage monitoring; heating, ventilation, and air conditioning monitoring services; whole home water safety solutions; geo-services; and demand response programs.In addition, the company provides commercial solutions, such as daily safeguards, commercial grade video, energy savings, protection for valuables and inventory, temperature monitoring, multi-site management and access control, early identification, simple to use, professionally supported, and easy to maintain.


Further, it offers service provider solutions, including a permission-based online portal that offers account management, sales, marketing, training, and support tools; sales, marketing, and training services; and home builder programs, as well as wellness solutions.The company serves residential and commercial subscribers.Alarm.com Holdings, Inc.


was founded in 2000 and is based in Tysons, Virginia.

Show Full description

1.b. Last Insights on ALRM

Alarm.com Holdings, Inc.'s recent performance faces challenges from insider selling activity, with Jeffrey Bedell selling 22,727 shares, valued at $1,177,713.14. Additionally, Assenagon Asset Management S.A. decreased its position by 5.2%, selling 14,026 shares. The company's upcoming earnings release on February 19, 2026, may also impact investor sentiment. Despite growth attributes that could help it outperform the market, Alarm.com's stock may face short-term pressure. (Source: Insider selling data, Assenagon Asset Management S.A. filing)

1.c. Company Highlights

2. Alarm.com's Strong Q4 2025 Earnings Exceed Expectations

Alarm.com reported SaaS and license revenue of $180 million in Q4 2025, an 8.8% increase year-over-year, with adjusted EBITDA of $55 million. The company achieved a significant milestone, generating over $1 billion in annual total revenue. Earnings per share (EPS) came in at $0.76, beating estimates of $0.62. For the full year 2025, the company saw substantial growth in its commercial security and energy businesses, which contributed 25% of SaaS revenue and grew about 25% year-over-year.

Publication Date: Feb -22

📋 Highlights
  • Revenue Milestone:: Alarm.com surpassed $1 billion in annual total revenue for the first time in 2025, with SaaS and license revenue reaching $180 million in Q4, up 8.8% YoY.
  • Segment Growth:: Commercial security and energy segments contributed 25% of SaaS revenue in 2025, growing 25% YoY, driven by expansion into adjacent markets.
  • EnergyHub Expansion:: Connected devices under EnergyHub increased by over 50% in 2025, with utilities calling on its virtual power plants 25% more, aided by the Resideo Grid Services acquisition.
  • 2026 Guidance:: SaaS and license revenue projected between $743–$745 million, with total revenue expected to reach $1.058–$1.065 billion and adjusted EBITDA of $213–$215 million.
  • Strategic AI Integration:: AI is enhancing productivity and automation but not altering the core business model, with EnergyHub poised to benefit from AI-driven data center electricity demand growth.

Revenue Growth Drivers

The growth in Alarm.com's revenue was driven primarily by ARPU expansion in its core residential business, with service providers effectively selling residential video solutions. The company has also introduced new products, such as a premium video doorbell and a battery-powered camera, and enhanced its software with AI capabilities to improve automation and personalization for subscribers. The commercial business continued to show solid growth, despite economic uncertainty, with the company believing that the underlying demand environment remains strong.

EnergyHub's Significant Growth Opportunities

The EnergyHub business, which provides mission-critical distributed IoT management solutions to utilities, saw the number of connected devices under its management increase by more than 50% in 2025. Utilities increased the number of times they called on EnergyHub's virtual power plants by 25%. The acquisition of Resideo Grid Services is expected to accelerate EnergyHub's scale and introduce its multi-device platform to new clients. The company sees significant growth opportunities in the EnergyHub business, with around 130 million meters in North America and current enrollment at 5% of the 50 million meters it transacts with.

Valuation and Outlook

With a P/E Ratio of 17.13 and an EV/EBITDA of 13.44, Alarm.com's valuation appears reasonable considering its growth prospects. Analysts estimate revenue growth at 4.5% for the next year. The company's focus on high-return organic investments and selective acquisitions is expected to drive future growth. The grid's increasing variability, driven by a higher percentage of power coming from variable sources like solar and wind, creates a need for utilities to find new sources of power, making them more open to virtual power plants like EnergyHub.

Margins and Operating Performance

Alarm.com's adjusted EBITDA margins in 2025 contained $4.5 million of unrealized gains, which, if excluded, would result in a margin of around 19.9%. The company completed an acquisition in the fourth quarter with 0% EBITDA margin, which they are working to absorb. The competitive environment in the North American residential business remains relatively stable, with the company feeling good about its position. The company's growth has been driven by ARPU expansion, with 20-25% of cameras sold going into the installed base, leading to package upgrades.

3. NewsRoom

Card image cap

Elo Mutual Pension Insurance Co Makes New $1.08 Million Investment in Alarm.com Holdings, Inc. $ALRM

Mar -06

Source: defenseworld.net

Card image cap

Shooter Detection Systems to Showcase Outdoor Gunshot Detection Innovation and Industry Leadership at ISC West 2026

Mar -03

Source: businesswire.com

Card image cap

ALRM or ALLE: Which Is the Better Value Stock Right Now?

Feb -25

Source: zacks.com

Card image cap

EnergyHub and Rivian Partner to Bring the Benefits of EV Managed Charging to Drivers Nationwide

Feb -24

Source: businesswire.com

Card image cap

Alarm.com (NASDAQ:ALRM) Reaches New 12-Month Low After Analyst Downgrade

Feb -20

Source: defenseworld.net

Card image cap

Alarm.com Holdings, Inc. (ALRM) Q4 2025 Earnings Call Transcript

Feb -20

Source: seekingalpha.com

Card image cap

Alarm.com Holdings (ALRM) Q4 Earnings and Revenues Beat Estimates

Feb -19

Source: zacks.com

Card image cap

Alarm.com Reports Fourth Quarter and Full Year 2025 Results

Feb -19

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.86%)

6. Segments

Alarm.com

Expected Growth: 4.0%

Alarm.com's 4.0% growth driven by increasing adoption of smart home security systems, expansion into new markets, and growing demand for IoT-based security solutions. Strong partnerships with dealers and service providers, innovative product offerings, and strategic acquisitions also contribute to growth.

Other

Expected Growth: 2.0%

Alarm.com Holdings, Inc.'s 2.0% growth is driven by increasing adoption of smart home security systems, expansion into new markets, and strategic partnerships. The company's cloud-based platform and innovative solutions also contribute to its growth, as well as the rising demand for IoT-enabled devices and services.

7. Detailed Products

Smart Home Security

A comprehensive security system that integrates with various devices to provide real-time monitoring and alerts

Video Monitoring

A cloud-based video monitoring solution that provides live and recorded video footage

Energy Management

A smart energy management system that helps homeowners and businesses reduce energy consumption and costs

Wellness

A wellness solution that provides activity tracking, fall detection, and medication reminders for seniors and individuals with disabilities

Business Security

A comprehensive security system designed for businesses, providing intrusion detection, video monitoring, and access control

Fleet Management

A fleet management solution that provides GPS tracking, vehicle diagnostics, and driver behavior analysis

8. Alarm.com Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Alarm.com Holdings, Inc. faces moderate threat from substitutes, as there are limited alternatives to its smart home security solutions. However, the increasing adoption of DIY security systems and smart home devices from other manufacturers poses a moderate threat to the company's market share.

Bargaining Power Of Customers

Alarm.com Holdings, Inc. has a large customer base, but individual customers do not have significant bargaining power. The company's subscription-based model and long-term contracts reduce the bargaining power of customers.

Bargaining Power Of Suppliers

Alarm.com Holdings, Inc. has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's strong relationships with suppliers and its ability to negotiate prices also limit the bargaining power of suppliers.

Threat Of New Entrants

The smart home security market is highly competitive, and new entrants can easily enter the market with innovative solutions. Alarm.com Holdings, Inc. faces a high threat from new entrants, particularly from technology companies and startups.

Intensity Of Rivalry

The smart home security market is highly competitive, with several established players competing for market share. Alarm.com Holdings, Inc. faces intense rivalry from companies like ADT, Vivint, and Frontpoint, which can lead to pricing pressure and increased marketing expenses.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 43.31%
Debt Cost 3.95%
Equity Weight 56.69%
Equity Cost 8.67%
WACC 6.63%
Leverage 76.40%

11. Quality Control: Alarm.com Holdings, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Zoom Video

A-Score: 5.5/10

Value: 3.6

Growth: 8.1

Quality: 8.8

Yield: 0.0

Momentum: 6.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
PTC

A-Score: 5.1/10

Value: 2.1

Growth: 8.3

Quality: 8.9

Yield: 0.0

Momentum: 4.0

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Alarm.com

A-Score: 4.9/10

Value: 5.3

Growth: 8.2

Quality: 6.2

Yield: 0.0

Momentum: 2.5

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Progress Software

A-Score: 4.2/10

Value: 4.4

Growth: 6.4

Quality: 5.9

Yield: 1.0

Momentum: 0.5

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Elastic

A-Score: 3.8/10

Value: 3.2

Growth: 8.0

Quality: 4.9

Yield: 0.0

Momentum: 3.0

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
Alkami Technology

A-Score: 3.5/10

Value: 4.6

Growth: 7.1

Quality: 4.1

Yield: 0.0

Momentum: 0.5

Volatility: 4.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

49.92$

Current Price

49.92$

Potential

-0.00%

Expected Cash-Flows