Alarm.com (NASDAQ:ALRM) Updates FY 2026 Earnings Guidance

Key Points

• Alarm.com raised or reaffirmed FY 2026 guidance at $2.920–$2.940 in EPS, above the $2.690 consensus estimate, while revenue guidance remained approximately $1.1 billion.
• The company’s latest quarter exceeded expectations, with EPS of $0.77 versus the $0.65 consensus and revenue of $277.73 million versus estimates of $264.96 million.
• Shares fell 0.7% to $56.29, while analyst sentiment remained cautious: the stock carries an average “Reduce” rating and a $47.50 consensus price target. Insiders sold $1.43 million of shares over the past three months.

Alarm.com (NASDAQ:ALRM - Get Free Report) issued an update on its FY 2026 earnings guidance on Thursday. The company provided earnings per share guidance of 2.920-2.940 for the period, compared to the consensus earnings per share estimate of 2.690. The company issued revenue guidance of $1.1 billion-$1.1 billion, compared to the consensus revenue estimate of $1.1 billion.

Alarm.com Stock Down 0.7%

NASDAQ ALRM traded down $0.37 on Thursday, hitting $56.29. The stock had a trading volume of 407,983 shares, compared to its average volume of 481,298. The business's fifty day moving average price is $49.03 and its 200 day moving average price is $47.02. The company has a debt-to-equity ratio of 0.57, a current ratio of 5.16 and a quick ratio of 4.55. Alarm.com has a 52-week low of $41.49 and a 52-week high of $59.53. The stock has a market cap of $2.78 billion, a price-to-earnings ratio of 23.36, a price-to-earnings-growth ratio of 1.87 and a beta of 0.76.

Alarm.com (NASDAQ:ALRM - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The software maker reported $0.77 EPS for the quarter, beating the consensus estimate of $0.65 by $0.12. The firm had revenue of $277.73 million during the quarter, compared to analyst estimates of $264.96 million. Alarm.com had a return on equity of 14.99% and a net margin of 12.36%.Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. Equities research analysts anticipate that Alarm.com will post 2.34 earnings per share for the current year.

Analyst Ratings Changes

Several brokerages recently issued reports on ALRM. Wall Street Zen raised Alarm.com from a "hold" rating to a "buy" rating in a research report on Sunday, July 12th. Weiss Ratings upgraded Alarm.com from a "hold (c-)" rating to a "hold (c)" rating in a research note on Wednesday, July 29th. Finally, Barclays upped their price objective on shares of Alarm.com from $50.00 to $55.00 and gave the company an "equal weight" rating in a report on Friday, May 8th. Three research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Alarm.com presently has an average rating of "Reduce" and an average target price of $47.50.

Insider Activity at Alarm.com

In related news, insider Daniel Ramos sold 2,000 shares of the company's stock in a transaction on Friday, June 12th. The stock was sold at an average price of $46.50, for a total value of $93,000.00. Following the transaction, the insider directly owned 53,099 shares of the company's stock, valued at $2,469,103.50. This represents a 3.63% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Kevin Christopher Bradley sold 724 shares of the firm's stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $48.46, for a total value of $35,085.04. Following the completion of the transaction, the chief financial officer owned 83,622 shares of the company's stock, valued at $4,052,322.12. This trade represents a 0.86% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 31,893 shares of company stock valued at $1,428,505 over the last three months. 4.80% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Alarm.com

Hedge funds and other institutional investors have recently bought and sold shares of the business. EP Wealth Advisors LLC purchased a new stake in shares of Alarm.com in the 4th quarter valued at $241,000. Jain Global LLC purchased a new position in shares of Alarm.com during the fourth quarter worth $206,000. Dynamic Technology Lab Private Ltd purchased a new position in shares of Alarm.com during the fourth quarter worth $224,000. CIBC Bancorp USA Inc. acquired a new position in Alarm.com during the third quarter valued at $270,000. Finally, Glenmede Investment Management LP lifted its position in Alarm.com by 21.4% during the third quarter. Glenmede Investment Management LP now owns 3,991 shares of the software maker's stock valued at $212,000 after purchasing an additional 704 shares during the period. Institutional investors and hedge funds own 91.74% of the company's stock.

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.

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