At a glance
Alarm.com Holdings Inc is worth $3.19B, about 26 times its fiscal 2025 earnings. Revenue grew 7.6% to $1.01B in fiscal 2025, with 13.1% kept as profit; over 5 years it has grown 10.3% a year. It pays no dividend; it spent $222.7M buying back its shares over FY2021–FY2025. The stock returned +25.0% over the past year with dividends reinvested and −4.8% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 31.6% in the 2020 crash (S&P 500: 33.7%) and 34.3% in the 2022 bear market (S&P 500: 24.5%).
The business in plain English
Alarm.com provides cloud-based software that lets homes and businesses control security alarms, video cameras, door locks, thermostats and other connected devices through its apps. Services also include energy and water management, access control, gunshot detection and video analytics that use artificial intelligence to tell people from vehicles or animals. During 2025, its platforms processed more than 365 billion data points from over 170 million connected devices. It relays alarm signals to about 1,000 third-party monitoring stations that call for emergency help.
Alarm.com earns most of its revenue through independent service providers, who market, install and support the systems and pay monthly fees. Partner contracts typically run one year and renew annually; partners report that their own contracts with property owners usually last three to five years. These fees, reported as SaaS (software as a service) and license revenue, totaled $689.4 million, or 68.2% of the $1.01 billion total for the fiscal year ended December 31, 2025. Hardware and other revenue, from devices such as video cameras, gunshot detection sensors and smart thermostats, made up the other 31.8%.
The main Alarm.com segment produced about 91% of revenue, and a smaller “Other” segment about 9.5%. The company also offers video software and cameras for enterprise customers through its OpenEye business, and acquired CHeKT in 2025 to expand remote video monitoring.
Price history
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ALRM +25.0% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| SaaS and license revenue | $689.4M | 68.2% |
| Hardware and other revenue | $321.8M | 31.8% |
By business segment
| Alarm.com | $919.6M | 90.9% |
| Other | $95.7M | 9.5% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $277.7M, up 9.2% from a year earlier, and net income was $24.2M (-29.8%).
- For fiscal 2025, revenue was $1.01B (+7.6% year over year; +10.3% a year from FY2020 to FY2025) with a 13.1% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +10.3% good |
|---|---|
| Operating margin | 13.2% watch |
| Free cash flow margin | 13.6% good |
| Return on equity (FY2025) | 15.6% good |
| Return on assets (FY2025) | 6.2% watch |
| Net cash (cash minus debt) | $220.8M good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $618.0M | $77.9M | $85.9M |
| FY2021 | $749.0M | $52.3M | $92.1M |
| FY2022 | $842.6M | $56.3M | $28.3M |
| FY2023 | $881.7M | $81.0M | $128.4M |
| FY2024 | $939.8M | $124.1M | $196.3M |
| FY2025 | $1.01B | $132.6M | $137.0M |
Valuation snapshot
| Market value | $3.19B |
|---|---|
| P/E ratio | 26.4 |
| Dividend yield | None |
Rank among 1514 US companies
Market value at each year end
Alarm.com Holdings’s market value went from $1.28B at the end of 2016 to $3.19B on Oct 28, 2026, about 2.5 times as much; since the end of 2025 it is up 25%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $3.19B | +25.2% |
| 2025 | $2.54B | -15.3% |
| 2024 | $3.01B | -7.0% |
| 2023 | $3.23B | +30.8% |
| 2022 | $2.47B | -41.8% |
| 2021 | $4.25B | -16.4% |
| 2020 | $5.08B | +143.4% |
| 2019 | $2.09B | -16.2% |
| 2018 | $2.49B | +39.9% |
| 2017 | $1.78B | +39.1% |
| 2016 | $1.28B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| ALRM price data to Oct 28, 2026 | +27.2% | +25.0% | +6.7% | -4.8% | +8.3% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +27.2% |
| 2025 | -16.1% |
| 2024 | -5.9% |
| 2023 | +30.6% |
| 2022 | -41.7% |
| 2021 | -18.0% |
| 2020 | +140.8% |
| 2019 | -17.2% |
| 2018 | +37.4% |
| 2017 | +35.6% |
| 2016 | +66.8% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 19.6% over that stretch · deepest drop along the way 31.6%, back to its old high 1.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 27.6% over that stretch · deepest drop along the way 34.3%, not recovered by the end of the data |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 14 sales ($6.3M), 10 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 24, 2026 | Stephen Trundle Chief Executive Officer, Director | sell (plan) | $2.9M |
| Mar 18, 2026 | Darius G Nevin Director | sell (plan) | $1.7M |
| Jun 10, 2026 | Daniel Ramos See Remarks | sell | $370K |
| Aug 12, 2026 | Kevin Christopher Bradley Chief Financial Officer | sell | $297K |
| May 26, 2026 | Stephen Trundle Chief Executive Officer, Director | sell (plan) | $266K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 16.8% | Mar 31, 2025 |
| Vanguard Portfolio Management | 8.04% | Mar 31, 2026 |
| DISCIPLINED GROWTH INVESTORS INC /MN | 7.3% | Jun 30, 2026 |
| Bank of Montreal | 6.98% | Jun 30, 2026 |
| Vanguard Capital Management | 5.09% | Mar 31, 2026 |
| Brown Capital Management, LLC | 4.84% | Dec 31, 2024 |
ETFs with the most weight in ALRM
| GUNZ Tuttle Capital Self Defense Index ETF | 4.95% |
| SPAM Themes Cybersecurity ETF | 4.23% |
| TMFS Motley Fool Small-Cap Growth ETF | 4.13% |
| PTEC Global X PropTech ETF | 3.62% |
| IHAK iShares Cybersecurity & Tech ETF | 3.44% |
| SIMS SPDR S&P Kensho Intelligent Structures ETF | 2.94% |
| TMFM Motley Fool Mid-Cap Growth ETF | 2.93% |
| PSCT Invesco S&P SmallCap Information Technology ETF | 1.86% |
What could go wrong
- Reliance on a small group of partners. Service providers find and keep Alarm.com's subscribers, and a limited number of them supply a substantial share of revenue. Losing a major partner, or a sharp drop in its orders, would hurt revenue and profit.
- A failed alarm could bring lawsuits. Alarm.com provides security and life-safety services. If a system, camera or connection fails during a break-in, fire or medical emergency, the company could face liability claims and lose business.
- Wireless carriers carry its alarm signals. Its alarm, notification and automation services run over networks provided by wireless carriers. Any interruption in that access, and the costs of dealing with it, could disrupt service and hurt results and reputation.
- Consumers may prefer single-purpose gadgets. Some consumers choose standalone “point products,” such as a single camera or smart lock, over a unified system. Aggressive rivals, and mergers among them, could also pressure Alarm.com's pricing and revenue.
- Hardware supply and tariff pressures. Hardware and other revenue was 31.8% of the total in fiscal 2025. Losing a key supplier, late deliveries, price increases or new US tariffs on imported products could raise costs or cut sales.
- Cyber-attacks could expose sensitive data. Alarm.com's networks hold information on partners, subscribers and employees. A cyber-attack on the company or its outside providers could damage its reputation, bring liabilities under US and foreign laws and hurt results.
Recent events
- Quarterly results released
- Shareholder vote results
- Quarterly results released
- Executive or board change
- Quarterly results released
- Quarterly results released
For income and retirement investors
Alarm.com pays no dividend, and its annual report says it does not intend to pay one for the foreseeable future. For an income investor, that means returns come only from the share price, and raising cash means parting with shares. The company does return cash through buybacks, meaning it repurchases its own shares, spending $222.7 million from fiscal 2021 through 2025. Shares outstanding fell only 1.9% between October 28, 2021 and July 30, 2026.
In the 2020 COVID crash, the shares fell 31.6% from March 2 to March 16, 2020, but regained that peak by May 11, 2020. In the 2022 stock market slump, they dropped 34.3% from January 4 to May 11, 2022, and were still below that high as of October 28, 2026. Their deepest drop from a high to a low over about 11 years of trading was 60.9%. Single stocks carry more risk than diversified funds, since one company's setbacks aren't offset by other holdings.
Questions investors ask
Does Alarm.com pay a dividend?
No. Alarm.com Holdings pays no dividend, and its annual report for the year ended December 31, 2025 says it does not intend to pay one for the foreseeable future. It returns some cash through buybacks instead, spending $222.7 million repurchasing its own shares from fiscal 2021 through 2025. Shareholders' returns depend entirely on the share price. Investors who rely on regular income may find dividend-paying stocks or income funds worth comparing.
How does Alarm.com make money?
Mostly from monthly fees paid by service providers. Independent businesses market, install and support Alarm.com systems, then pay the company monthly for cloud software that runs alarms, cameras, locks and thermostats. That SaaS (software as a service) and license revenue was $689.4 million, or 68.2% of the $1.01 billion total for fiscal 2025, and grew about 10.1% a year from 2023. The other 31.8% came from hardware and other sales, such as video cameras, gunshot detection sensors and smart thermostats.
Is Alarm.com profitable?
Yes. For the fiscal year ended December 31, 2025, Alarm.com earned net income of $132.6 million on revenue of $1.01 billion, keeping 13.1% of sales as profit. Diluted earnings per share rose to $2.46 from $2.29 a year earlier. Free cash flow, the cash left after running and investing in the business, was $137.0 million, down from $196.3 million in 2024. In the quarter ended June 30, 2026, net income fell 29.8% from a year earlier even as revenue rose 9.2%.
How has Alarm.com stock performed over the long term?
Unevenly. As of October 28, 2026, the share price was up 25% over one year and 122% over ten years, an average of about 8.3% a year. But it was down 22% over five years, after falls of 41.7% in 2022, 5.9% in 2024 and 16.1% in 2025. From the start of 2026 through October 28, it rose 27.2%. On that date the shares traded at about 26.4 times fiscal 2025 earnings (the price-to-earnings ratio). With no dividend, price changes make up the entire return.
Does Alarm.com have a lot of debt?
Not on a net basis. As of June 30, 2026, Alarm.com held $711.9 million in cash and investments and $491.1 million of total debt, leaving $220.8 million more cash than debt. Its annual report warns that debt can bring financial and operating restrictions. It also says goodwill (the premium paid for acquired businesses) and other intangible assets make up a significant portion of total assets, and their full value may never be realized.