Alarm.com Holdings, Inc. reported fourth‑quarter 2025 results that surpassed consensus estimates, with total revenue of $261.7 million, a 8.0% year‑over‑year increase over the $242.2 million reported in Q4 2024. The company’s SaaS and license revenue rose to $180.2 million, up 8.8% from $165.7 million in the prior year, while GAAP net income climbed to $34.6 million, and GAAP EPS of $0.66 matched the consensus estimate of $0.66. Non‑GAAP adjusted EBITDA for the quarter was $54.9 million, a figure that corrects the earlier misstatement of $206 million, which actually represents full‑year 2025 adjusted EBITDA.
The revenue beat was driven by strong demand in the company’s core SaaS and license business, which grew 8.8% year‑over‑year. EnergyHub and commercial initiatives continued to expand at double‑digit rates, contributing a significant portion of the SaaS revenue and reinforcing the company’s broader transformation strategy. The mix shift toward higher‑margin SaaS contracts helped offset the lower margin impact of the quarter’s seasonal mix, supporting the company’s margin expansion narrative.
GAAP net income of $34.6 million and GAAP EPS of $0.66 met expectations, while non‑GAAP EPS of $0.72 beat the estimate of $0.65. The company’s adjusted EBITDA of $54.9 million reflects the quarter’s mix and the company’s disciplined cost management, which allowed it to maintain profitability despite the lower margin impact of the seasonal mix. The company’s management highlighted that the quarter’s adjusted EBITDA of $55 million was a key driver of the earnings beat, citing strong pricing power and efficient execution.
Alarm.com raised its full‑year 2026 guidance, projecting revenue of $1.058 billion to $1.065 billion and EPS of $2.78 to $2.79. The guidance surpasses analyst consensus estimates, signaling management’s confidence in continued growth and margin expansion. The company also reaffirmed its outlook for SaaS and license revenue growth and adjusted EBITDA expansion, underscoring its commitment to scaling its high‑growth segments.
"We are pleased to report fourth quarter and full year results that exceeded our expectations. Our SaaS and license revenue in the fourth quarter was $180 million, up 8.8% over the last year. Our adjusted EBITDA in the quarter was $55 million," said CEO Steve Trundle. "For full year 2025, SaaS and license revenue for the overall consolidated business grew 9.2% year‑over‑year to $689.4 million. Total revenue grew 8% year‑over‑year in the fourth quarter, and…exceeded $1 billion for the full year," added CFO Kevin Bradley.
The company’s strategic acquisitions, including Resideo Grid Services (RGS) and Chekked, have accelerated the growth of its EnergyHub platform and enhanced its remote video monitoring capabilities. Product innovation continues with new AI‑based video analytics, a premium video doorbell, and a battery‑powered camera, all of which support the company’s expansion into commercial and energy markets. Tariff costs are being passed through to customers, and the company acknowledges economic uncertainty and long sales cycles in EnergyHub as headwinds, but it remains optimistic about the tailwinds from its high‑margin SaaS and commercial growth.
Alarm.com’s stock has experienced a 9.55% decline over the past three months and a 25.36% decline over the past year, reflecting broader market volatility. Despite the positive earnings beat and raised guidance, analysts have expressed mixed views, with some lowering price objectives while maintaining a hold rating. The company’s strong performance and forward guidance suggest resilience, but investors remain cautious amid the broader market environment.
In summary, Alarm.com’s Q4 2025 results demonstrate robust revenue growth, solid profitability, and a clear path forward. The company’s focus on high‑margin SaaS, strategic acquisitions, and product innovation positions it well for continued expansion, while its raised guidance signals confidence in sustaining momentum into 2026.
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