Alarm.com (NASDAQ:ALRM) Releases Earnings Results, Beats Expectations By $0.05 EPS

Key Points

• Alarm.com beat Q1 estimates with $0.65 EPS (vs. $0.60 expected) and revenue of $265.2M (+11% YoY), and raised FY‑2026 guidance to 2.810 EPS while reiterating roughly $1.1B in revenue.
• Recurring SaaS performance remains strong—SaaS & license revenue was $181.5M (+10.8% YoY) with revenue retention ≈95.4%, aided by EnergyHub expansion (now covering ~75–77M meters) and accelerating enterprise demand for OpenEye AI features.
• Management flagged near‑term hardware headwinds from rising memory costs and a Supreme Court tariff ruling (≈$5M impact into H2), while the board authorized up to $150M in buybacks and the company retired $500M of convertible notes.

Alarm.com (NASDAQ:ALRM - Get Free Report) issued its quarterly earnings results on Thursday. The software maker reported $0.65 EPS for the quarter, beating analysts' consensus estimates of $0.60 by $0.05, FiscalAI reports. The company had revenue of $265.19 million during the quarter, compared to the consensus estimate of $250.94 million. Alarm.com had a return on equity of 14.79% and a net margin of 13.11%.Alarm.com's revenue was up 11.1% on a year-over-year basis. During the same period last year, the business posted $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

NASDAQ:ALRM traded up $1.56 during trading hours on Thursday, hitting $47.00. 621,535 shares of the company's stock traded hands, compared to its average volume of 469,610. The firm has a market cap of $2.32 billion, a P/E ratio of 19.11, a P/E/G ratio of 1.59 and a beta of 0.79. Alarm.com has a 52 week low of $41.50 and a 52 week high of $60.76. The business's fifty day simple moving average is $45.66 and its two-hundred day simple moving average is $48.46. The company has a quick ratio of 1.78, a current ratio of 1.92 and a debt-to-equity ratio of 0.58.

More Alarm.com News

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

• Positive Sentiment: Q1 results: Alarm.com reported $0.65 EPS versus the $0.60 consensus and revenue of $265.2M vs. ~$251M expected — a clear beat on both earnings and top line that signals accelerating growth. Business Wire: Q1 Results
• Positive Sentiment: Raised FY‑2026 guidance: Management set FY EPS at 2.810 (vs. street ~2.68), and reiterated revenue expectations around $1.1B — the firm guidance raise reduces execution risk and supports multiple expansion. Business Wire: Guidance
• Positive Sentiment: Recurring revenue strength: SaaS & license revenue grew ~10.8% to $181.5M, underlining the subscription-driven model and predictable cash flow that investors value. Higher net margin (13.1%) and ROE (~14.8%) also support profitability narratives. Business Wire: SaaS Growth
• Neutral Sentiment: Coverage and detail: Multiple outlets published earnings snapshots and the full call transcript (Yahoo, MSN, The Motley Fool), useful for traders seeking quarter detail but largely reiterative of the beat and guidance. Yahoo: Earnings Snapshot MSN: Coverage Fool: Transcript
• Neutral Sentiment: Critical/analyst takes: A recent critical review compares Alarm.com to peers; it may offer longer‑term valuation or competitive concerns but did not appear to blunt the market’s positive reaction to the beat and guidance. American Banking News: Review

Insider Transactions at Alarm.com

In related news, CFO Kevin Christopher Bradley sold 1,510 shares of Alarm.com stock in a transaction on 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 sale, the chief financial officer owned 51,546 shares of the company's stock, valued at approximately $2,369,569.62. This trade represents a 2.85% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 5.80% of the company's stock.

Institutional Investors Weigh In On Alarm.com

A number of hedge funds and other institutional investors have recently modified their holdings of ALRM. Strs Ohio bought a new stake in shares of Alarm.com in the 1st quarter valued at about $56,000. Kemnay Advisory Services Inc. bought a new stake in shares of Alarm.com in the 4th quarter valued at about $59,000. Caden Capital Partners LP bought a new position in Alarm.com during the 4th quarter valued at approximately $106,000. Vestcor Inc bought a new position in Alarm.com during the 3rd quarter valued at approximately $154,000. Finally, Osaic Holdings Inc. raised its position in Alarm.com by 95.3% during the 2nd quarter. Osaic Holdings Inc. now owns 3,172 shares of the software maker's stock valued at $179,000 after purchasing an additional 1,548 shares during the last quarter. Institutional investors own 91.74% of the company's stock.

Analyst Ratings Changes

Several brokerages have weighed in on ALRM. Weiss Ratings reissued a "hold (c-)" rating on shares of Alarm.com in a report on Friday, April 24th. Barclays decreased their target price on Alarm.com from $56.00 to $50.00 and set an "equal weight" rating for the company in a research report on Friday, February 20th. JPMorgan Chase & Co. decreased their target price on Alarm.com from $55.00 to $40.00 and set an "underweight" rating for the company in a research report on Wednesday, February 18th. Finally, Zacks Research downgraded Alarm.com from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, March 25th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $56.67.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.