Alarm.com Reports Second Quarter 2026 Results
Alarm.com Holdings, Inc. (ALRM) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Alarm.com Reports Second Quarter 2026 Results -- SaaS and license revenue increased 11.1% to $188.8 million -- -- GAAP net income was $24.2 million -- -- Non-GAAP adjusted EBITDA was $57.7 million -- TYSONS, VA., August 6, 2026 -- Alarm.com Holdings, Inc. (Nasdaq: AL
How this was made
The 30-second read
Why it matters
The key tradable inputs are the raised full-year SaaS and license revenue range, the updated Q3 revenue range, and the increased non-GAAP adjusted EBITDA outlook, which can re-rate the stock’s forward growth and margin expectations.
Market read
A same-day guidance increase tied to specific revenue and EBITDA ranges is a direct catalyst for repricing forward expectations.
What to watch
GAAP net income declined year over year even as non-GAAP metrics rose; traders may scrutinize reconciliation items and whether adjusted EBITDA growth is sustainable.
SaaS and license revenue increased 11.1% to $188.8 million; GAAP net income was $24.2 million; non-GAAP adjusted EBITDA was $57.7 million.
SaaS and license revenue, total revenue, adjusted EBITDA, adjusted net income and cash generation increased year over year, and the company increased full-year guidance. GAAP net income and cash and cash equivalents declined, with the cash reduction primarily attributed to settlement of the 2026 Notes.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| SaaS and license revenueGAAP | $188.8M | – | increased 11.1% |
| Total revenueGAAP | $277.7M | – | increased 9.2% |
| Net incomeGAAP | $24.2M | – | – |
| Net income attributable to common stockholdersGAAP | $24.2M | – | – |
| Net income attributable to common stockholders per diluted shareGAAP | $0.48 per diluted share | – | – |
| Adjusted EBITDAnon-GAAP | $57.7M | – | – |
| Adjusted net income attributable to common stockholdersnon-GAAP | $41.1M | – | – |
| Adjusted net income attributable to common stockholders per diluted sharenon-GAAP | $0.77 per diluted share | – | – |
| Cash flows from operating activities for the six months ended June 30GAAP | $92.5M | – | – |
| Free cash flow for the six months ended June 30non-GAAP | $86.8M | – | – |
Third quarter of 2026 and full year of 2026 outlook
- RevenueThird quarter of 2026 SaaS and license revenue is expected to be in the range of $189.8 million to $190.0 million. Full year of 2026 SaaS and license revenue is expected to be in the range of $754.0 million to $754.4 million. Total revenue is expected to be in the range of $1.0790 billion to $1.0894 billion, including anticipated hardware and other revenue in the range of $325.0 million to $335.0 million.
- Tax ratean estimated tax rate of 21.0%
- NoteFull year of 2026 non-GAAP adjusted EBITDA expectations are being increased to a range of $221.0 million to $223.0 million.
- NoteFull year of 2026 non-GAAP adjusted net income attributable to common stockholders is expected to be in the range of $156.0 million to $157.0 million.
- NoteBased on an expected 56.3 million weighted average diluted shares outstanding, full year of 2026 non-GAAP adjusted net income attributable to common stockholders is expected to be $2.92 to $2.94 per diluted share.
- NoteFull year of 2026 SaaS and license revenue guidance is up $10.2 million from the midpoint of the full year of 2026 SaaS and license revenue guidance provided in February 2026.
What drove it
- Alarm.com launched its new Fire Communicator, extending the commercial platform into the commercial fire market.
- Over the July Fourth weekend, utilities across 31 states and Ontario dispatched 304 demand response events through the EnergyHub platform, shifting 17.5 gigawatt-hours of load during periods of peak demand.
- CHeKT introduced advanced system partitioning capabilities for larger and more complex commercial remote video monitoring deployments.
Concerns
- GAAP net income was $24.2 million, compared to $34.2 million.
- GAAP net income attributable to common stockholders was $24.2 million, or $0.48 per diluted share, compared to $34.6 million, or $0.63 per diluted share.
- Total cash and cash equivalents was $479.4 million as of June 30, 2026, compared to $960.6 million as of December 31, 2025.
- The company stated that actual results may differ materially from its forward-looking guidance.
What to watch
- Third quarter of 2026 SaaS and license revenue outlook of $189.8 million to $190.0 million.
- Full year of 2026 SaaS and license revenue outlook of $754.0 million to $754.4 million.
- Full year of 2026 total revenue outlook of $1.0790 billion to $1.0894 billion, including anticipated hardware and other revenue of $325.0 million to $335.0 million.
- Full year of 2026 non-GAAP adjusted EBITDA outlook of $221.0 million to $223.0 million.
- The impact of the January 14, 2026 payment and full settlement of the $500.0 million aggregate principal amount of the 0% convertible senior notes on cash and cash equivalents.
Balance sheet and cash flow
- Total cash and cash equivalents was $479.4 million as of June 30, 2026, compared to $960.6 million as of December 31, 2025.
- The decrease in cash and cash equivalents was primarily due to the payment and full settlement of the $500.0 million aggregate principal amount of the 0% convertible senior notes on January 14, 2026.
- For the six months ended June 30, 2026, cash flows from operating activities was $92.5 million, compared to $46.8 million for the six months ended June 30, 2025.
- For the six months ended June 30, 2026, non-GAAP free cash flow was $86.8 million, compared to $36.1 million for the six months ended June 30, 2025.
Analysis
Alarm.com reported a quarter of continued top-line growth led by SaaS and license revenue. SaaS and license revenue increased 11.1% to $188.8 million, while total revenue increased 9.2% to $277.7 million. The company also highlighted expansion of its commercial fire offering, expanded CHeKT remote video monitoring capabilities, and EnergyHub demand-response activity across 31 states and Ontario.
Profit measures were mixed. GAAP net income was $24.2 million compared to $34.2 million, and GAAP diluted net income attributable to common stockholders was $0.48 per diluted share compared to $0.63 per diluted share. In contrast, non-GAAP adjusted EBITDA was $57.7 million compared to $49.9 million, while non-GAAP adjusted net income attributable to common stockholders was $41.1 million, or $0.77 per diluted share, compared to $35.2 million, or $0.62 per diluted share.
Cash generation increased on a six-month basis. Cash flows from operating activities for the six months ended June 30, 2026 were $92.5 million compared to $46.8 million for the six months ended June 30, 2025, and non-GAAP free cash flow was $86.8 million compared to $36.1 million. Cash and cash equivalents were $479.4 million as of June 30, 2026, compared to $960.6 million as of December 31, 2025, with the company attributing the decrease primarily to payment and full settlement of the $500.0 million aggregate principal amount of the 0% convertible senior notes on January 14, 2026.
The outlook calls for third-quarter SaaS and license revenue of $189.8 million to $190.0 million. For the full year, the company increased its SaaS and license revenue expectation to $754.0 million to $754.4 million and increased non-GAAP adjusted EBITDA expectations to $221.0 million to $223.0 million. Full-year total revenue is expected to be $1.0790 billion to $1.0894 billion, including anticipated hardware and other revenue of $325.0 million to $335.0 million.
The principal reported items to monitor are the continuation of SaaS and license revenue growth, the divergence between lower GAAP earnings and higher non-GAAP earnings, cash generation following the note settlement, and delivery against the increased full-year SaaS and license revenue and adjusted EBITDA expectations. The company also noted that comparable prior non-GAAP information was updated after it revised the definition of certain non-GAAP metrics during the first quarter of 2026 to exclude gains and losses on investments with readily determinable fair value.
Not in the filing
stated, not guessed- Segment revenue and segment-level comparisons were not provided in the supplied filing text.
- GAAP gross profit, gross margin, operating income, operating margin and operating expenses were not provided in the supplied filing text.
- Quarterly cash flows from operating activities and quarterly free cash flow were not provided in the supplied filing text.
- Total debt balance as of June 30, 2026 was not provided in the supplied filing text.
- Share repurchases, dividends and other capital-return figures were not provided in the supplied filing text.
- Third-quarter total revenue, gross margin, operating expenses, tax rate and earnings guidance were not provided in the supplied filing text.
- Full-year gross margin and operating-expense guidance were not provided in the supplied filing text.
- Previous-release outlook was not provided, so actual results cannot be compared with prior guidance.
- Named executive quotes were not provided in the supplied filing text.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This SEC 8-K (Item 2.02) files Alarm.com’s Q2 2026 results and provides third-quarter 2026 SaaS and license revenue outlook plus increased full-year 2026 guidance.
Ticker impact
Alarm.com reported Q2 results and raised full-year 2026 SaaS and license revenue guidance, plus increased Q3 outlook ranges.
Near-term upside bias versus prior guidance expectations, with follow-through dependent on whether investors focus more on revenue growth or cash/earnings quality.
The filing includes explicit Q3 revenue range and an increased full-year SaaS and license revenue range, alongside higher non-GAAP adjusted EBITDA expectations; these are direct valuation drivers for the stock.
Market effects
Supports sentiment for connected-property SaaS and recurring-revenue business models, reinforcing demand for security and energy-management platforms.
Limited; primarily company-specific guidance for a Nasdaq-listed software/recurring revenue name.
Low; no cross-border regulatory or macro linkage beyond general grid/energy-management themes.
Counterpoint
Cash and cash equivalents dropped sharply versus year-end due to the $500m convertible note settlement, which could temper enthusiasm if investors prioritize balance-sheet strength over operating guidance.
Key entities
- public_companyAlarm.com Holdings, Inc.
Nasdaq-listed connected-property platform reporting Q2 results and raising 2026 guidance.
- business_unitEnergyHub
Alarm.com platform used to dispatch demand response events during peak demand periods.
- business_unitCHeKT
Alarm.com subsidiary expanding remote video monitoring partitioning capabilities.
