Revenue growth remains resilient at 11.0% in 2026Q1, though gross margin compression to 62.4% suggests increasing costs within the company's video-heavy IoT ecosystem.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Sales/Revenue | 1.04B | 1.01B | 939.83M | 881.68M | 842.56M | 748.97M | 618M | 502.36M | 420.49M | 338.94M | 261.11M | 208.89M | 167.31M | 130.22M | 96.47M |
| Revenue Growth % | 8.6% | 7.59% | 6.59% | 4.64% | 12.5% | 21.19% | 23.02% | 19.47% | 24.06% | 29.81% | 25% | 24.85% | 28.48% | 34.98% | - |
| Cost of Goods Sold | 379.93M | 373.11M | 326.15M | 325.16M | 342.58M | 305.9M | 227.43M | 183.6M | 145.72M | 116.19M | 99.38M | 77.37M | 67.18M | 54.96M | 41.45M |
| COGS % of Revenue | - | 36.9% | 34.7% | 36.88% | 40.66% | 40.84% | 36.8% | 36.55% | 34.65% | 34.28% | 38.06% | 37.04% | 40.15% | 42.2% | 42.97% |
| Gross Profit | 657.63M | 638.07M | 613.68M | 556.52M | 499.98M | 443.07M | 390.57M | 318.76M | 274.78M | 222.75M | 161.73M | 131.51M | 100.13M | 75.26M | 55.02M |
| Gross Margin % | 63.38% | 63.1% | 65.3% | 63.12% | 59.34% | 59.16% | 63.2% | 63.45% | 65.35% | 65.72% | 61.94% | 62.96% | 59.85% | 57.8% | 57.03% |
| Gross Profit Growth % | - | 3.98% | 10.27% | 11.31% | 12.84% | 13.44% | 22.53% | 16.01% | 23.36% | 37.73% | 22.97% | 31.34% | 33.04% | 36.79% | - |
| Operating Expenses | 520.1M | 504.44M | 505.13M | 489.69M | 448.94M | 381.5M | 334.28M | 268.35M | 262.58M | 189.38M | 147.67M | 113.52M | 79.62M | 67.78M | 38.5M |
| OpEx % of Revenue | - | 49.89% | 53.75% | 55.54% | 53.28% | 50.94% | 54.09% | 53.42% | 62.44% | 55.87% | 56.55% | 54.35% | 47.59% | 52.05% | 39.91% |
| Selling, General & Admin | 240.49M | 234.21M | 220.12M | 213.16M | 199.44M | 174.07M | 154.61M | 131.77M | 151.65M | 98.89M | 96.91M | 67.71M | 51.95M | 51.4M | 27.33M |
| SG&A % of Revenue | - | 23.16% | 23.42% | 24.18% | 23.67% | 23.24% | 25.02% | 26.23% | 36.07% | 29.18% | 37.11% | 32.42% | 31.05% | 39.47% | 28.33% |
| Research & Development | 273.92M | 270.23M | 255.88M | 245.11M | 218.63M | 177.71M | 152.15M | 114.44M | 89.2M | 72.75M | 44.27M | 40M | 23.19M | 13.09M | 8.94M |
| R&D % of Revenue | - | 26.72% | 27.23% | 27.8% | 25.95% | 23.73% | 24.62% | 22.78% | 21.21% | 21.47% | 16.96% | 19.15% | 13.86% | 10.05% | 9.27% |
| Other Operating Expenses | 0 | 0 | 29.13M | 31.42M | 30.87M | 29.71M | 27.52M | 22.13M | 0 | 0 | 0 | 0 | 3.99M | 3.36M | 2.23M |
| Operating Income | 137.53M | 135.83M | 108.55M | 66.83M | 51.04M | 61.57M | 56.3M | 50.41M | 12.2M | 33.37M | 14.06M | 17.99M | 21M | 7.42M | 16.52M |
| Operating Margin % | 13.26% | 13.43% | 11.55% | 7.58% | 6.06% | 8.22% | 9.11% | 10.04% | 2.9% | 9.85% | 5.38% | 8.61% | 12.55% | 5.7% | 17.12% |
| Operating Income Growth % | - | 25.13% | 62.43% | 30.94% | -17.11% | 9.37% | 11.67% | 313.15% | -63.44% | 137.4% | -21.86% | -14.33% | 182.87% | -55.05% | - |
| EBITDA | 181.44M | 182.03M | 151.61M | 110.95M | 93.77M | 102.22M | 84.7M | 80.85M | 34.82M | 52.07M | 21.33M | 24.19M | 25.19M | 10.98M | 18.95M |
| EBITDA Margin % | 17.49% | 18% | 16.13% | 12.58% | 11.13% | 13.65% | 13.71% | 16.09% | 8.28% | 15.36% | 8.17% | 11.58% | 15.06% | 8.44% | 19.64% |
| EBITDA Growth % | 11.24% | 20.06% | 36.65% | 18.33% | -8.27% | 20.68% | 4.77% | 132.17% | -33.13% | 144.08% | -11.81% | -3.98% | 129.33% | -42.03% | - |
| D&A (Non-Cash Add-back) | 43.9M | 46.2M | 43.06M | 44.12M | 42.73M | 40.65M | 28.4M | 30.43M | 22.62M | 18.7M | 7.28M | 6.2M | 4.19M | 3.56M | 2.43M |
| EBIT | 178.59M | 186.54M | 153.23M | 101.25M | 59.74M | 62.02M | 82.76M | 61.87M | 14.62M | 34.44M | 14.57M | 17.64M | 20.52M | 7.48M | 16.52M |
| Net Interest Income | 21.52M | 28.32M | 35.93M | 26.37M | 5.62M | -15.37M | -1.73M | 1.95M | -646K | -1.17M | -190K | -178K | -196K | -269K | -312K |
| Interest Income | 38.18M | 45.62M | 47.36M | 29.8M | 8.76M | 587K | 870K | 4.92M | 2.27M | 1.03M | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 16.65M | 17.29M | 11.43M | 3.43M | 3.14M | 15.96M | 2.6M | 2.97M | 2.92M | 2.2M | 190K | 178K | 196K | 269K | 312K |
| Other Income/Expense | 25.93M | 33.42M | 33.26M | 31M | 5.56M | -15.5M | 23.86M | 8.48M | -503K | -1.13M | 323K | -526K | -681K | -212K | -307K |
| Pretax Income | 163.47M | 169.25M | 141.81M | 97.83M | 56.59M | 46.07M | 80.16M | 58.9M | 11.7M | 32.24M | 14.38M | 17.46M | 20.32M | 7.21M | 16.21M |
| Pretax Margin % | 15.75% | 16.74% | 15.09% | 11.1% | 6.72% | 6.15% | 12.97% | 11.72% | 2.78% | 9.51% | 5.51% | 8.36% | 12.14% | 5.54% | 16.8% |
| Income Tax | 36.17M | 37.62M | 19.29M | 17.48M | 962K | -5.11M | 3.5M | 5.57M | -9.82M | 2.99M | 4.23M | 5.7M | 6.82M | 2.69M | 7.28M |
| Effective Tax Rate % | 22.13% | 22.23% | 13.61% | 17.87% | 1.7% | -11.08% | 4.37% | 9.45% | -83.98% | 9.27% | 29.39% | 32.62% | 33.55% | 37.27% | 44.91% |
| Net Income | 128.21M | 132.57M | 124.12M | 81.04M | 56.34M | 52.26M | 77.85M | 53.53M | 21.52M | 29.24M | 10.14M | 11.77M | 13.5M | 4.52M | 8.93M |
| Net Margin % | 12.36% | 13.11% | 13.21% | 9.19% | 6.69% | 6.98% | 12.6% | 10.66% | 5.12% | 8.63% | 3.88% | 5.63% | 8.07% | 3.47% | 9.26% |
| Net Income Growth % | -0.21% | 6.81% | 53.15% | 43.85% | 7.81% | -32.87% | 45.44% | 148.74% | -26.39% | 188.29% | -13.82% | -12.84% | 198.45% | -49.33% | - |
| Net Income (Continuing) | 127.3M | 131.63M | 122.51M | 80.34M | 55.63M | 51.17M | 76.66M | 53.33M | 21.52M | 29.25M | 10.15M | 11.77M | 13.5M | 4.52M | 8.93M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 43.98M | 42.85M | 44.75M | 36.31M | 23.99M | 12.89M | 10.69M | 11.21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.28 | 2.46 | 2.29 | 1.53 | 1.07 | 1.01 | 1.53 | 1.06 | 0.43 | 0.59 | 0.21 | -0.30 | 0.01 | 0.00 | -3.66 |
| EPS Growth % | 1.69% | 7.42% | 49.67% | 42.99% | 5.94% | -33.99% | 44.34% | 146.51% | -27.12% | 180.95% | 170% | -2212.68% | - | 100.08% | - |
| EPS (Basic) | - | 2.66 | 2.50 | 1.63 | 1.13 | 1.05 | 1.59 | 1.11 | 0.45 | 0.63 | 0.22 | -0.30 | 0.01 | 0.00 | -3.66 |
| Diluted Shares Outstanding | 56.32M | 58.92M | 57.99M | 54.63M | 54.93M | 51.92M | 50.96M | 50.27M | 49.69M | 49.15M | 47.88M | 24.11M | 39.74M | 39.74M | 39.74M |
| Basic Shares Outstanding | 49.6M | 49.8M | 49.64M | 49.82M | 49.93M | 49.87M | 48.95M | 48.43M | 47.63M | 46.68M | 45.72M | 24.06M | 38.21M | 38.21M | 38.21M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | 9.09% | - | - | 4.64% |
Dealer Channel Platform Internalization
According to recent financial disclosures, Alarm.com achieved an 11.0% year-over-year revenue growth rate in 2026Q1, signaling a stable top-line trajectory despite broader macroeconomic headwinds impacting the professional security installation market and potential saturation within its core North American residential subscriber base.
The company's ability to maintain mid-to-high single-digit growth suggests that its recurring SaaS model provides a reliable buffer against the cyclicality of hardware sales. Investors should monitor whether this growth can be sustained through new service offerings or if the reliance on the dealer channel limits further expansion.
As reported in quarterly filings, Alarm.com's gross margin contracted to 62.4% in 2026Q1, down from historical peaks of 67.2% in 2025Q1, reflecting a potential shift in the product mix or increased costs associated with supporting a more complex, video-heavy IoT device ecosystem.
This margin erosion may indicate that the company is absorbing higher cloud storage and infrastructure costs to remain competitive against DIY alternatives. If this trend persists, it could suggest that the company's pricing power is being tested by the need to subsidize hardware to maintain its dealer network.
Based on the provided income statement data, operating income of $31.7M in 2026Q1 failed to scale proportionally with revenue, as R&D and SG&A expenses continue to consume a significant portion of gross profit, limiting the company's ability to drive meaningful margin expansion.
The persistent investment in R&D appears necessary to maintain platform compatibility, yet it prevents the company from demonstrating the operating leverage typically expected of a mature software business. This suggests that the firm is prioritizing long-term platform relevance over immediate bottom-line optimization.
While the company maintains a strong market position, financial statements reveal a reliance on independent service providers that may be vulnerable to platform internalization, as evidenced by the competitive pressure from large-scale partners potentially shifting toward proprietary backend software solutions to capture higher margins.
Short-term stability in recurring revenue may mask the long-term risk that major dealers could eventually bypass Alarm.com's software stack. Investors should investigate whether the current R&D spend is sufficient to create enough value to prevent this potential disintermediation by key channel partners.
Quick answers to the most common questions about buying ALRM stock.
For fiscal year 2025, Alarm.com Holdings, Inc. (ALRM) reported total revenue of $1.01B. This represents a 948.1% increase compared to $96.5M in 2012.
Alarm.com Holdings, Inc. (ALRM) is profitable, generating $132.6M in net income for the fiscal year ending 2025 with a net profit margin of 13.1%.
Alarm.com Holdings, Inc. (ALRM) reported an operating income of $135.8M, resulting in an operating profit margin of 13.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Alarm.com Holdings, Inc. (ALRM) generated $638.1M in gross profit for the year, representing a gross profit margin of 63.1%. This demonstrates the company's core pricing power and production efficiency.