ALRM Technology

Alarm.com Holdings, Inc.

$65.46-0.86%

Price as of close on Nov 3, 2026 · Financials updated Oct 6, 2026

Basics

Sector: Technology
Industry: Software - Application
Country: United States
Market cap: 3.2B USD
Enterprise value: 3.3B USD
Full-time employees: 2,051

Overall health

Strength: its shares are priced lower than most peers relative to what it earnspriced lower than peers for its earnings
Strength: lower risk than most peers: more short-term liquiditylower risk: more liquidity
Drawback: more debt relative to equity (0.62× vs a peer median of 0.25×)more debt vs equity (0.62× vs peers 0.25×)
About average: growth

Ranks #288 of 1,612 technology companies (top 18%)

See how it ranks against its peers

Worth knowing

Buybacks largely absorbed by stock pay. Stock-based pay expense $122M vs $144M spent repurchasing shares over the 3 fiscal years to 2025. Shares outstanding changed −0.7% from December 2022 to July 2026.
Over three fiscal years Alarm.com recorded $122M of stock-based pay expense and spent $144M repurchasing shares (repurchases can include shares withheld to cover employees' taxes). The share count barely moved (−0.7%), so much of the repurchasing offset new employee shares rather than shrinking the count.Over three fiscal years Alarm.com recorded $122M of stock-based pay expense and spent $144M repurchasing shares. The share count barely moved (−0.7%), so much of the repurchasing offset new employee shares rather than shrinking the count.
Operating margin at a 6-year high. 13% in 2025, the best of the last 6 years.
Alarm.com kept 13% of revenue as operating profit in 2025, its highest in the 6 years of filings we have.
Profits growing faster than sales. Since 2022: revenue +20%, operating profit +162%.
Since 2022, Alarm.com's revenue grew 20% while operating profit grew 162%: each extra dollar of sales is adding more profit.
Annual revenue rose 5 years in a row. Fiscal-year revenue rose from $618M in 2020 to $1.0B in 2025.
Alarm.com's fiscal-year revenue rose in each of the five years to 2025, from $618M to $1.0B.

StockQuotient Score

67/ 100▼ 1 since Oct 27 close

Oct 5 69 → Nov 4 67 (-2)

Valuation

Is the price right?

62/100

Moderate▼ 3 since Oct 27 close

3/3 inputs reported · High confidence

Since last quarter: No major changeValuation also moves with the share price every day.

Why it changed since the Oct 27, 2026 close: Score 65 → 62

Share price +1.0%-1
Peer companies moved-2

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Stronger than most peers on:

▲ FCF yield
▲ Earnings yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield3.6%

SEC filings · 12 months to Jun 2026Reported value30% base weight · Z-score 0.62Sector median: 0.0225 · MAD: 0.0225

EBITDA yield5.0%

Yahoo Finance fallback · SEC enterprise value unavailable (debt or EBITDA not reported in standard form) · trailing 12 monthsReported value50% base weight · Z-score 0.22Sector median: 0.0423 · MAD: 0.0361

Free cash flow yield5.8%

SEC filings · 12 months to Jun 2026 · operating cash flow − capital spendingReported value20% base weight · Z-score 1.13Sector median: 0.0274 · MAD: 0.0274

Other data (not scored)

Book yield26.9%

SEC filings · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.3292 · MAD: 0.1754

Growth

Is it growing?

45/100

Moderate

3/3 inputs reported · High confidence

Since last quarter: ▲ Stronger

12-month revenue up 2.3%

Why

Held back by:

▼ EPS growth

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growth-7.2%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -0.60Sector median: 0.1108 · MAD: 0.3050

3-year revenue growth7.3%

SEC filings · 3 years to Jun 2026Reported value33% base weight · Z-score 0.32Sector median: 0.0483 · MAD: 0.0793

Revenue growth8.7%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.02Sector median: 0.0853 · MAD: 0.1017

Profitability

Does it earn well?

79/100

Moderate▼ 1 since Oct 27 close

3/3 inputs reported · High confidence

Since last quarter: No major change

Why it changed since the Oct 27, 2026 close: Score 80 → 79

Peer companies moved-1

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Stronger than most peers on:

▲ ROIC
▲ ROA
▲ Operating margin

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin12.8%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.92Sector median: 0.0631 · MAD: 0.0710

Return on assets7.1%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 1.15Sector median: 0.0293 · MAD: 0.0362

Return on invested capital27.9%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 2.47Sector median: 0.0676 · MAD: 0.0857

Other data (not scored)

Gross margin65.8%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.3343 · MAD: 0.1632

Return on equity13.6%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.0753 · MAD: 0.0889

Risk

Debt, liquidity, price swings

Lower

Lower relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Stronger than most peers on:

▲ Current ratio

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta0.76

Yahoo Finance · 5-year monthly beta vs the marketReported value33% base weight · Z-score 0.31Sector median: 0.8710 · MAD: 0.3700

Current ratio4.96×

SEC filings · latest balance sheetReported value33% base weight · Z-score 4.57Sector median: 1.8295 · MAD: 0.6848

Debt / equity0.62×

Yahoo Finance fallback · no standard SEC debt tagReported value33% base weight · Z-score -1.65Sector median: 0.2495 · MAD: 0.2270

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about Alarm.com

Is Alarm.com getting weaker?: Its latest SEC filing (Aug 6, 2026) showed no major changes. Its overall score is 67/100, down 1 since Oct 28, 2026.
How is Alarm.com valued vs its peers?: Priced lower than most peers relative to what it earns. Valuation scores 62/100 against 1,711 technology peers. Free cash flow yield 5.8% vs a peer median of 2.7% (stronger than 71% of peers).Free cash flow yield 5.8% vs peers 2.7% (stronger than 71% of peers).
Is Alarm.com growing?: At about the same pace as its peers. Growth scores 45/100 against 1,711 technology peers. Earnings per share growth -7.2% vs a peer median of 11.1% (weaker than 70% of peers).Earnings per share growth -7.2% vs peers 11.1% (weaker than 70% of peers).
How profitable is Alarm.com?: More profitable than most of its peers. Profitability scores 79/100 against 1,711 technology peers. Return on invested capital 27.9% vs a peer median of 6.8% (stronger than 87% of peers).Return on invested capital 27.9% vs peers 6.8% (stronger than 87% of peers).
How risky is Alarm.com?: Lower risk relative to 1,711 technology peers, judged on debt, liquidity and share-price swings. Current ratio 4.96× vs a peer median of 1.83× (stronger than 90% of peers).Current ratio 4.96× vs peers 1.83× (stronger than 90% of peers). Debt / equity 0.62× vs a peer median of 0.25× (weaker than 71% of peers).Debt / equity 0.62× vs peers 0.25× (weaker than 71% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jun 30, 2026 · filed Aug 6, 2026 · compared with the quarter ended Mar 31, 2026

No major changes

	Previous quarter	Latest quarter	Change
Revenue (12 months)	1.0B USD	1.1B USD	+2.3%
Net income (12 months)	127.3M USD	117.3M USD	−7.9%
Operating margin	13.1%	12.8%	−0.2 pts
Free cash flow (12 months)	168.8M USD	187.7M USD	+11.2%
Cash	497.4M USD	479.4M USD	−3.6%
Shares outstanding	49.5M	49.1M	−0.7%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Industry: Software - Application · 81 companies

Valuations in Software - Application are near the bottom of their range since 2016.

6% of months since 2016 were valued lower than now.
8% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values −16% and earnings +31% (medians): earnings grew faster than prices.
Median price-to-sales is +85% vs the whole market, against a usual +235%.

2016Shaded: most expensive fifth of its range2026

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025	Change
Gross margin	59.2%	59.3%	63.1%	65.3%	66.1%	▲ 0.9 pts
Operating margin	8.2%	6.1%	7.6%	11.5%	13.2%	▲ 1.7 pts
Net margin	6.8%	6.6%	9.1%	13.0%	13.0%	▼ 0.0 pts
Return on assets (ROA)	4.2%	4.2%	5.6%	6.0%	6.2%	▲ 0.1 pts
Return on equity (ROE)	8.3%	9.3%	11.7%	16.9%	15.5%	▼ 1.3 pts
Free cash flow margin	12.3%	3.4%	14.6%	20.9%	13.6%	▼ 7.3 pts
Current ratio	7.09×	5.40×	5.46×	7.85×	1.92×	▼ 76%
Quick ratio	6.51×	4.70×	4.91×	7.38×	1.78×	▼ 76%
Debt to equity	—	—	—	—	—	—
Interest coverage	—	16.23×	19.49×	9.50×	7.73×	▼ 19%

ALRM price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Strength: its shares are priced lower than most peers relative to what it earnspriced lower than peers for its earnings

Strength: lower risk than most peers: more short-term liquiditylower risk: more liquidity

Drawback: more debt relative to equity (0.62× vs a peer median of 0.25×)more debt vs equity (0.62× vs peers 0.25×)

About average: growth

Ranks #288 of 1,612 technology companies (top 18%)

See how it ranks against its peers

Worth knowing

Buybacks largely absorbed by stock pay. Stock-based pay expense $122M vs $144M spent repurchasing shares over the 3 fiscal years to 2025. Shares outstanding changed −0.7% from December 2022 to July 2026.

Over three fiscal years Alarm.com recorded $122M of stock-based pay expense and spent $144M repurchasing shares (repurchases can include shares withheld to cover employees' taxes). The share count barely moved (−0.7%), so much of the repurchasing offset new employee shares rather than shrinking the count.Over three fiscal years Alarm.com recorded $122M of stock-based pay expense and spent $144M repurchasing shares. The share count barely moved (−0.7%), so much of the repurchasing offset new employee shares rather than shrinking the count.

Operating margin at a 6-year high. 13% in 2025, the best of the last 6 years.

Alarm.com kept 13% of revenue as operating profit in 2025, its highest in the 6 years of filings we have.

Profits growing faster than sales. Since 2022: revenue +20%, operating profit +162%.

Since 2022, Alarm.com's revenue grew 20% while operating profit grew 162%: each extra dollar of sales is adding more profit.

Annual revenue rose 5 years in a row. Fiscal-year revenue rose from $618M in 2020 to $1.0B in 2025.

Alarm.com's fiscal-year revenue rose in each of the five years to 2025, from $618M to $1.0B.

Questions investors ask about Alarm.com

Is Alarm.com getting weaker?

Its latest SEC filing (Aug 6, 2026) showed no major changes. Its overall score is 67/100, down 1 since Oct 28, 2026.

How is Alarm.com valued vs its peers?

Priced lower than most peers relative to what it earns. Valuation scores 62/100 against 1,711 technology peers. Free cash flow yield 5.8% vs a peer median of 2.7% (stronger than 71% of peers).Free cash flow yield 5.8% vs peers 2.7% (stronger than 71% of peers).

Is Alarm.com growing?

At about the same pace as its peers. Growth scores 45/100 against 1,711 technology peers. Earnings per share growth -7.2% vs a peer median of 11.1% (weaker than 70% of peers).Earnings per share growth -7.2% vs peers 11.1% (weaker than 70% of peers).

How profitable is Alarm.com?

More profitable than most of its peers. Profitability scores 79/100 against 1,711 technology peers. Return on invested capital 27.9% vs a peer median of 6.8% (stronger than 87% of peers).Return on invested capital 27.9% vs peers 6.8% (stronger than 87% of peers).

How risky is Alarm.com?

Lower risk relative to 1,711 technology peers, judged on debt, liquidity and share-price swings. Current ratio 4.96× vs a peer median of 1.83× (stronger than 90% of peers).Current ratio 4.96× vs peers 1.83× (stronger than 90% of peers). Debt / equity 0.62× vs a peer median of 0.25× (weaker than 71% of peers).Debt / equity 0.62× vs peers 0.25× (weaker than 71% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Revenue (12 months)

1.0B USD

1.1B USD

+2.3%

Net income (12 months)

127.3M USD

117.3M USD

−7.9%

Operating margin

13.1%

12.8%

−0.2 pts

Free cash flow (12 months)

168.8M USD

187.7M USD

+11.2%

Cash

497.4M USD

479.4M USD

−3.6%

Shares outstanding

49.5M

49.1M

−0.7%

Key ratios

FY 2021

FY 2022

FY 2023

FY 2024

FY 2025

Change

Gross margin

59.2%

59.3%

63.1%

65.3%

66.1%

▲ 0.9 pts

Operating margin

8.2%

6.1%

7.6%

11.5%

13.2%

▲ 1.7 pts

Net margin

6.8%

6.6%

9.1%

13.0%

▼ 0.0 pts

Return on assets (ROA)

4.2%

5.6%

6.0%

6.2%

▲ 0.1 pts

Return on equity (ROE)

8.3%

9.3%

11.7%

16.9%

15.5%

▼ 1.3 pts

Free cash flow margin

12.3%

3.4%

14.6%

20.9%

13.6%

▼ 7.3 pts

Current ratio

7.09×

5.40×

5.46×

7.85×

1.92×

▼ 76%

Quick ratio

6.51×

4.70×

4.91×

7.38×

1.78×

▼ 76%

Debt to equity

—

Interest coverage

—

16.23×

19.49×

9.50×

7.73×

▼ 19%