GET DAILY SIGNALSAlarm.com Holdings (ALRM) Posts 9% Revenue Increase in Q3 2026
Key Takeaways
- Alarm.com reported third quarter 2026 total revenue of $279.4 million, up 9.0% from $256.4 million a year earlier and ahead of consensus estimates.
- Non-GAAP adjusted diluted earnings per share reached $0.90, beating the analyst consensus of approximately $0.77.
- SaaS and license revenue, the company's highest-margin recurring stream, rose 9.0% year-over-year to $191.2 million.
- Non-GAAP adjusted EBITDA climbed 19% to $66.2 million, reflecting improving operating efficiency.
- Full-year 2026 guidance was raised, with SaaS and license revenue now expected between $756.1 million and $756.3 million.
- For more information on Alarm.com Holdings (ALRM), you can explore its Major News, Today's Price Move, Price Targets, and Forecast on dedicated pages.
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Why These Results Matter
Alarm.com Holdings (ALRM) runs a leading platform for connected properties, serving both residential and commercial security and smart-home needs. The third-quarter 2026 figures are worth close attention because they show whether the company can keep growing its SaaS and license revenue—the high-margin, recurring core of the business—while dealing with hardware margin pressures and higher litigation costs. After several quarters of beating estimates, this report helps gauge demand in its commercial, Energy Hub, and international efforts. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry. Investors tend to focus on adjusted EBITDA and free cash flow as signs of operating leverage, so this quarter offers a useful read on both growth quality and profitability trends.
The Quarter in Numbers
Alarm.com reported total revenue of $279.4 million for the quarter ended September 30, 2026, a 9.0% rise from $256.4 million in the same period last year and above analyst estimates of roughly $273.8 million. SaaS and license revenue grew 9.0% to $191.2 million, while hardware and other revenue reached $88.3 million.
On a GAAP basis, diluted earnings per share came in at $0.66, slightly above $0.65 a year earlier, with GAAP net income at $34.3 million. Non-GAAP adjusted diluted EPS of $0.90 topped the consensus estimate of approximately $0.77. Non-GAAP adjusted EBITDA increased 19% year-over-year to $66.2 million, and operating income rose to $43.9 million from $37.0 million. These gains highlight operating leverage even with $6.3 million in non-ordinary litigation expenses during the quarter.
Market Reaction and Sentiment
Heading into the release, sentiment around Alarm.com had been positive, given the string of prior earnings beats. The third-quarter 2026 outperformance on both revenue and non-GAAP EPS continued that pattern, and the raised full-year guidance added further support for management’s outlook. Attention centered on the steady SaaS and license revenue growth and the expansion in adjusted EBITDA, even as GAAP results faced pressure from litigation costs and lower interest income. The shares have outperformed the broader market through 2026, reflecting investor comfort with the recurring-revenue model and cash generation.
Guidance and Items to Monitor
Management raised its full-year 2026 outlook, now expecting SaaS and license revenue between $756.1 million and $756.3 million and non-GAAP adjusted EBITDA between $227.0 million and $229.0 million. This update points to ongoing confidence in the commercial, Energy Hub, and international initiatives driving SaaS growth.
Several areas stand out for continued attention. Hardware gross margins and any remaining tariff-related costs are worth tracking, as management has described them as temporary. Litigation expenses have increased and could affect GAAP earnings if they continue. The ongoing shift toward higher-margin SaaS revenue remains the main driver for margin expansion. Cash generation and balance-sheet strength also matter: operating cash flow reached $167.6 million and non-GAAP free cash flow $156.3 million over the nine-month period, even after cash and equivalents declined following convertible note activity. Maintaining strong free cash flow while supporting research and development and selective investments will stay central to the longer-term case.
Using AI Tools in My Research
I often turn to Tickeron’s AI Screener when reviewing earnings reports like this one. It helps quickly filter stocks by fundamentals, technical patterns, and industry comparisons, which adds useful context when evaluating names such as Alarm.com alongside peers. The tool has become a regular part of how I screen for ideas and confirm trends in the security and technology space.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
ALRM's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for ALRM turned positive on October 01, 2026. Looking at past instances where ALRM's MACD turned positive, the stock continued to rise in 32 of 45 cases over the following month. The odds of a continued upward trend are 71%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 01, 2026. You may want to consider a long position or call options on ALRM as a result. In 59 of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 65%.
ALRM moved above its 50-day moving average on October 09, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for ALRM crossed bullishly above the 50-day moving average on October 15, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 10 of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 67%.
Following a +2.68% 3-day Advance, the price is estimated to grow further. Considering data from situations where ALRM advanced for three days, in 169 of 281 cases, the price rose further within the following month. The odds of a continued upward trend are 60%.
The Aroon Indicator entered an Uptrend today. In 83 of 164 cases where ALRM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 51%.
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 11 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 17 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ALRM declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 66%.
ALRM broke above its upper Bollinger Band on October 20, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 13 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 37 (best 1 - 100 worst), indicating steady price growth. ALRM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 59 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 76 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.859) is normal, around the industry mean (-2.611). P/E Ratio (28.675) is within average values for comparable stocks, (15.348). Projected Growth (PEG Ratio) (1.422) is also within normal values, averaging (2.824). Dividend Yield (0.000) settles around the average of (0.067) among similar stocks. P/S Ratio (2.976) is also within normal values, averaging (70.854).
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ALRM’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
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General Information
a holding company and Provides wireless and web-enabled security system technology
Industry PackagedSoftware
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