Alarm.Com

ALRM · Nasdaq · Financials · Financials, fiscal 2016 to 2025

ALRM · Last close · November 6, 2026

$65.03

Alarm.Com's revenue rose 7.6% to $1.0 billion in fiscal 2025. Its operating margin was 13.2%, up from 11.6% a year earlier. Free cash flow was $137 million, down 30.2%. It paid out $42 million in dividends and buybacks, 30% of free cash flow. The diluted share count rose 1.6%.

ALARM.COM HOLDINGS, INC. Latest fiscal year ended December 31, 2025 10-K filed February 19, 2026 · 0001459200-26-000005 Updated November 6, 2026

Revenue

$1.0B

7.6%

Operating margin

13.2%

1.7 pts

Net income

$132M

7.4%

Free cash flow

$137M

30.2%

Return on capital

15.1%

4.1 pts

Market cap

$3.6B

Nov 6 close

P/E

28.6x

On $2.27 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

Charts show fiscal years, from the 10-K filings.

What Alarm.Com does

Alarm.com runs a cloud-based software platform for connected homes and businesses. It covers security, video cameras and video analysis, energy management, access control, water management, personal safety and emergency response, and also helps electric utilities manage their grids.

It does not sell mainly to property owners. Instead it sells through independent service provider partners, such as security dealers and installers, who sell and install the technology and resell its services. They pay Alarm.com monthly fees, which makes up its software-as-a-service (SaaS) and license revenue. Contracts with partners typically last one year and renew yearly. It also sells hardware, such as video cameras, gateway modules and smart thermostats, mainly to these partners and to distributors.

Alarm.com began in 2000. Because it sells security and life-safety products, it says a failure of its solutions could expose it to liability.

Its biggest risks, as it describes them

If its security and life-safety products fail, it could face liability and lose business.
Tariffs, import and export limits or other trade barriers could hurt its business.
Weak economic conditions and lower spending could reduce demand for its platform.
Its quarterly results swing, so it may miss investor expectations.
It may not keep up its growth rate or manage its expansion well.

From Alarm.Com's annual report on Form 10-K, filed February 19, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new annual report.

Income statement

Revenue and net income

US$ billions, fiscal years; net losses in red. Revenue on the left axis, net income on the right; zero is the same line on both.

Revenue (left axis)Net income (right axis)

Gross profit, R&D and operating income

US$ billions, fiscal years. Gross profit is revenue minus the cost of what was sold; research and development is one of the costs paid from it; what remains after all operating costs is operating income. Losses in red.

Gross profitResearch and developmentOperating income

Margins

Percent of revenue

GrossOperatingNetFree cash flow

From fiscal 2016 to 2025, earnings per share grew 31.4% a year and net income 32.9% a year, as new shares raised the share count by 23% and diluted each share's earnings.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Balance sheet

Cash and debt

US$ billions, at each fiscal year end. Debt includes finance leases.

Cash and short-term investmentsDebt

Assets, liabilities and equity

US$ billions, at each fiscal year end. Assets equal liabilities plus equity; negative equity in red.

Total assetsTotal liabilitiesShareholders' equity

Debt and liquidity ratios

Times. Debt to equity, current assets over current liabilities, and net debt over EBITDA (a full year's).

Debt to equityCurrent ratioNet debt to EBITDA

Five years at a glance

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	711	622	697	1,221	961
Debt incl. finance leases	425	490	494	984	990
Net debt (negative means net cash)	−285	−132	−204	−237	29
Net debt to EBITDA	−3.1x	−1.6x	−2.1x	−1.7x	0.2x
Debt to equity	0.7x	0.8x	0.7x	1.4x	1.2x
Interest coverage	540.1x	16.2x	19.5x	9.5x	7.7x
Current ratio	7.1x	5.4x	5.5x	7.8x	1.9x
Quick ratio	6.5x	4.7x	4.9x	7.4x	1.8x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Cash flow

Cash from operations, capital spending and free cash flow

US$ billions, fiscal years. Free cash flow is cash from operations minus capital spending; negative years in red.

Cash from operationsCapital spendingFree cash flow

Stock-based compensation and buybacks

US$ billions, fiscal years. Shares paid to employees (stock-based compensation, a cost that uses no cash) against cash spent buying shares back. Buybacks that only match it leave the share count roughly where it was.

Stock-based compensationShare buybacks

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Projections

Project Alarm.Com's revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.

Open Alarm.Com's projections

Insider trades

Over the 12 months between November 7, 2025 and November 6, 2026, 1 insider bought $1.3 million of Alarm.Com shares on the open market, and 7 insiders sold $9.2 million, $5.5 million of it under trading plans set up in advance.

Buys and sells by month

US$ millions, open-market purchases (up) and sales (down) by officers, directors and 10% owners in each month.

BoughtSold

Date	Insider	Trade	Shares	Price	Value	Filing
Aug 24, 2026	Stephen TrundleChief Executive Officer, Director	Sold plan	50,000	$57.67	$2.9 million	Form 4
Aug 12, 2026	Kevin Christopher BradleyChief Financial Officer	Sold	5,400	$55.07	$297,378	Form 4
Jul 2, 2026	Kevin Christopher BradleyChief Financial Officer	Sold plan	724	$48.46	$35,085	Form 4
Jun 12, 2026	Daniel RamosSee Remarks	Sold	2,000	$46.50	$93,000	Form 4
Jun 10, 2026	Daniel RamosSee Remarks	Sold	8,000	$46.23	$369,840	Form 4
Jun 10, 2026	Kevin Christopher BradleyChief Financial Officer	Sold	2,200	$46.15	$101,530	Form 4
May 26, 2026	Stephen TrundleChief Executive Officer, Director	Sold plan	6,073	$43.78	$265,876	Form 4
May 26, 2026	Daniel KerznerSee Remarks	Sold plan	3,944	$43.78	$172,668	Form 4
May 26, 2026	Daniel RamosSee Remarks	Sold plan	2,532	$43.78	$110,851	Form 4
May 18, 2026	Stephen TrundleChief Executive Officer, Director	Sold plan	2,944	$43.56	$128,241	Form 4
May 18, 2026	Daniel KerznerSee Remarks	Sold plan	1,915	$43.56	$83,417	Form 4
May 18, 2026	Daniel RamosSee Remarks	Sold plan	1,561	$43.56	$67,997	Form 4

The latest 12 of 22 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Indicators

Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.

Indicator	FY23	FY24	FY25
Piotroski F-score	8 of 9	6 of 9	5 of 9
Rule of 40	19.2%	27.5%	21.1%
Altman Z''	5.49	5.75	3.80
Accruals ratio	−4.0%	−4.8%	−1.0%

Piotroski F-score: how many of nine simple tests of profitability, funding and efficiency the company passed in the year (Piotroski, 2000); 8 or 9 is strong, 0 to 2 weak. Rule of 40: revenue growth plus free cash flow margin; software investors treat 40% or more as the bar. Altman Z'': working capital, retained earnings, operating income and equity weighed against assets and liabilities (Altman, 1995); Altman puts above 2.6 in the safe zone and below 1.1 in the distress zone. Accruals ratio: net income minus cash from operations, over average total assets; lower means profit is backed by cash.

The nine F-score tests

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Pass	Fail
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Pass	Fail	Pass
Current ratio rose	Pass	Pass	Fail
Share count didn't rise	Pass	Fail	Fail
Gross margin rose	Pass	Pass	Pass
Revenue rose relative to assets	Fail	Fail	Fail
F-score	8 of 9	6 of 9	5 of 9

Companies that report no gross profit are scored on the other eight.

Compare

Put Alarm.Com side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Alarm.Com	FY25	7.6%	13.2%	13.6%	15.1%	0.2x	5
SentinelOne	FY26	21.9%	−32.1%	7.6%	−28.9%	—	3	Compare
Calix	FY25	20.3%	2.1%	11.6%	—	—	—	Compare
Tenable	FY25	11.0%	−0.9%	25.5%	—	—	—	Compare
ServiceTitan	FY26	24.5%	−17.6%	11.0%	−12.1%	—	6	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score under Indicators.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	261	339	420	502	618	749	843	882	940	1,011
Revenue growth	25.0%	29.8%	24.1%	19.5%	23.0%	21.2%	12.5%	4.6%	6.6%	7.6%
Gross profit	162	223	275	319	391	443	500	556	614	669
Research and development	44	73	89	114	152	178	219	245	256	270
Operating income	14	33	12	50	56	62	51	67	108	134
Net income	10	29	22	54	77	51	56	80	122	132
Diluted EPS (US$)	0.21	0.59	0.43	1.06	1.53	1.01	1.07	1.53	2.29	2.46
Diluted shares (millions)	48	49	50	50	51	52	55	55	58	59
Cash flow
Cash from operations	23	57	61	47	102	103	57	136	206	153
Capital expenditure	9	10	11	19	16	11	29	8	10	16
Free cash flow	14	47	50	28	86	92	28	128	196	137
Dividends paid	0	0	0	0	0	0	0	0	0	0
Share buybacks	0	0	0	0	5	0	79	27	75	42
Acquisitions	0	154	0	59	26	0	32	10	0	113
Stock-based compensation	4	7	13	21	29	39	53	47	41	33
Balance sheet at fiscal year end
Cash and short-term investments	141	96	146	120	254	711	622	697	1,221	961
Debt incl. finance leases	7	71	67	63	110	425	490	494	984	990
Total assets	261	372	441	558	732	1,232	1,329	1,440	2,038	2,137
Total liabilities	70	139	163	191	253	606	706	715	1,267	1,246
Shareholders' equity	191	233	278	356	468	613	599	688	726	848
Margins and ratios
Gross margin	61.9%	65.7%	65.3%	63.5%	63.2%	59.2%	59.3%	63.1%	65.3%	66.2%
Operating margin	5.4%	9.8%	2.9%	10.0%	9.1%	8.2%	6.1%	7.6%	11.6%	13.2%
Net margin	3.9%	8.6%	5.1%	10.7%	12.4%	6.8%	6.6%	9.1%	13.0%	13.0%
Free cash flow margin	5.2%	13.8%	11.8%	5.5%	13.9%	12.3%	3.4%	14.6%	20.9%	13.6%
Rule of 40 (growth + FCF margin)	30.2%	43.6%	35.9%	25.0%	36.9%	33.5%	15.8%	19.2%	27.5%	21.1%
Return on capital	18.8%	22.9%	6.0%	18.4%	17.3%	18.9%	12.6%	11.5%	19.2%	15.1%
Return on equity	5.6%	13.8%	8.4%	16.9%	18.6%	9.5%	9.2%	12.5%	17.3%	16.7%
Return on assets	4.2%	9.2%	5.3%	10.7%	11.9%	5.2%	4.3%	5.8%	7.0%	6.3%
Net debt to EBITDA	−6.5x	−0.5x	−2.3x	−0.8x	−1.7x	−3.1x	−1.6x	−2.1x	−1.7x	0.2x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Alarm.Com's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Alarm.Com.