Second Quarter 2026
Filed Aug 6, 2026SaaS 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
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| SaaS and license revenueGAAP | $188.8 million | – | increased 11.1% |
| Total revenueGAAP | $277.7 million | – | increased 9.2% |
| Net incomeGAAP | $24.2 million | – | – |
| Net income attributable to common stockholdersGAAP | $24.2 million | – | – |
| Net income attributable to common stockholders per diluted shareGAAP | $0.48 per diluted share | – | – |
| Adjusted EBITDAnon-GAAP | $57.7 million | – | – |
| Adjusted net income attributable to common stockholdersnon-GAAP | $41.1 million | – | – |
| 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 | $92.5 million | – | – |
| Free cash flow for the six months ended June 30non-GAAP | $86.8 million | – | – |
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.
AlphaAI 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.