Alarm.com(NASDAQ) ALRM

Alarm.com Holdings, Inc. helps people protect and manage their homes and businesses from their phones. The company connects security cameras, locks, and thermostats to a single app for easy control. It serves property owners through a global network of professional service providers.

Protecting Properties and Managing Power

• SaaS and Licenses: Monthly fees for cloud-based monitoring and energy management; accounts for 68% of revenue.
• Hardware and Peripherals: Connected devices like video cameras, thermostats, and sensors; accounts for 32% of revenue.
• Alarm.com Segment: Integrated technology platforms for residential and commercial properties; represents 87% of revenue.
• Energy Management: Software and devices that help utilities and consumers manage electricity demand.

Strategic Moves and Expansion

• Purchased an additional investment in SafeStreets USA, LLC for $14.1 million on May 29, 2026, to maintain a 24.7% stake.
• Acquired 81% of CHeKT on Feb. 10, 2025, for $23.6 million to expand video surveillance capabilities.
• Purchased Bridge to Renewables, Inc. on Aug. 15, 2025, and RGS on Nov. 21, 2025, to grow its energy management business.
• Paid $500.0 million in aggregate principal to retire convertible senior notes on Jan. 14, 2026.

Scale and Service Networks

The platform processed more than 365 billion data points from over 170 million connected devices during 2025. The business relies on a network of service provider partners who handle sales, installation, and ongoing technical support.

Measuring the Performance

• Total revenue rose 9% to $277.7 million in the three months ended June 30, 2026.
• SaaS and license revenue rose 11% to $188.8 million in the three months ended June 30, 2026.
• Net income was $24.2 million in the three months ended June 30, 2026.
• The SaaS and license revenue renewal rate was 95% for the 12 months ended June 30, 2026.
• Cash and cash equivalents were $479.4 million as of June 30, 2026.

Evolution of the Platform

Alarm.com has grown from a security software provider into a broad technology platform for residential and commercial properties. The company maintains stability through a recurring revenue model and a high rate of subscriber retention.