Alarm.com Holdings, Inc. (ALRM) AI Stock Analysis

Alarm.com Holdings, Inc. specializes in providing Internet of Things (IoT) solutions tailored for residential, multi-family, small business, and enterprise commercial markets across North America and globally. Operating through two segments, Alarm.com and Other, the company offers systems for controlling and monitoring security systems along with connected devices such as door locks, garage doors, thermostats, and video cameras. Its platform includes video monitoring, live streaming, cloud storage, smart automation, and energy monitoring. For commercial clients, it provides access control, enterprise dashboards, and temperature monitoring, backed by installation support services and the MobileTech Application.

Alarm.com expanded its annual revenue from $749.0M in FY2021 to $1.01B in FY2025, reflecting a 5-year revenue CAGR of 10.3%. Over this span, gross margin improved from 59.2% to 66.1%, while operating margin widened from 8.2% to 13.2%. Net income grew from $52.3M to $132.6M, with EPS increasing from $2.00 to $2.50. For the trailing twelve months, revenue reached $1.06B with an operating margin of 15.1% and EPS of $2.26. In the latest quarter ended June 30, 2026, quarterly revenue rose 9.2% year-over-year, while quarterly earnings fell 23.4%.

As of June 30, 2026, Alarm.com held $479.4M in cash and short-term investments against $567.5M in total debt, resulting in net debt of $88.0M. The company maintains a current ratio of 4.96 and a debt-to-equity ratio of 0.66 on $864.5M in shareholders' equity. In FY2025, it generated $153.3M in operating cash flow and $137.0M in free cash flow, deploying $16.3M to capital expenditures and $41.6M to share buybacks.

Alarm.com trades at a trailing P/E of 25.4x, which is below the 28.1x median of its US-listed Technology peers. Its forward P/E of 26.2x is higher than the peer median of 18.8x, while its EV-to-EBITDA multiple of 12.4x sits below the peer median of 16.6x. The stock has gained 13.4% over the past year, trailing the S&P 500 (SPY) return of 16.8%. Over a 5-year period, the stock declined 29.3%, compared to an 83.0% gain for the S&P 500.

Wall Street coverage includes 2 Strong Buy, 1 Buy, 2 Hold, and 1 Sell ratings. The mean price target is $63.00, representing a 9.8% premium over the last close of $57.37. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $1.08B and EPS of $2.89, an increase of 10.4%. The company has beaten EPS expectations in each of the last 4 quarters, with its next earnings report scheduled for November 5, 2026.

This page is an AI-written research summary of Alarm.com Holdings, Inc. (ALRM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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