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Alarm.com Holdings, Inc.

Rank #134ValueWatchlistCompare with other stocks

ALRM · Nasdaq · Technology

Alarm.com Holdings, Inc. (ALRM) — Rank #134 by gross profitability (GP/assets 0.40) · ROE 15.3% · Piotroski F-Score N/A.

As-of 2026-10-30 · CIK 0001459200 · all metrics point-in-time as of the filing date.

About

Alarm.com Holdings, Inc. operates a platform for connected properties in North America and internationally.

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It operates in two segments, Alarm.com and Other. The company offers residential solutions, such as alarm transmission, smart signal, smart arming, and personal safety and awareness, as well as real-time alerts and always-on monitoring; video monitoring solutions, including video analytics, remote video monitoring, AI deterrence, video doorbell, intelligent integration, and cell connector; scenes, video analytics triggers, smart thermostat schedules, responsive savings, precision comfort, HVAC monitoring service, places feature, whole home water safety solution, and energy usage and solar monitoring solution. It also provides clean energy software and services SaaS platform; commercial grade video solutions, commercial video analytics, smarter access control, enterprise dashboard and multi-site management, connected fleet solution, energy savings, proactive protection for valuables and inventory, temperature monitoring, daily safeguard, and professionally supported and low cost of ownership solutions. In addition, the company offers OpenEye software comprising video surveillance as a service, cameras, recorders, and other peripherals designed for video applications; forensic video search, point-of sale system integration, customer site mapping, and large-scale camera deployments enterprise-level requirements; shooter detection systems; service provider portal, service dashboard, installation and support service provider solutions; and AI-powered enhancements to professional monitoring and false alarm reduction. Further, it provides business management services; sales, marketing, training services; and home builder program hardware and services.

The company was founded in 2000 and is headquartered in Tysons, Virginia.

Industry
Software - Application
Sector
Technology
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31
Website
alarm.com

Company Snapshot

P/E and dividend yield are the primary valuation lenses for mature businesses.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

2,051

Industry

Software - Application

Exchange

Nasdaq

11/11

Flags passed

ALRM passes 11/11 quality flags

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Operating leverage expanding · Deferred revenue growing · Sequential beat (rev + EPS)

No data Balance sheet — not counted as a pass.

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.40
Return on equity
15.3%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.86
Current ratio
4.96×
Net cash
$711.89M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
3.3%

Growth

2/2 pass
Revenue growth
7.6%
Piotroski F-Score
N/A
Share dilution
1.6%

Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).

Profitability

Does it make money well?

No warning flags · GP/assets 63rd percentile of 36 SIC 7372 peers

Gross profitability (GP / assets)

0.40

Primary signal (Novy-Marx).

63rd pctl of 36 SIC 7372 peers

Return on equity

15.3%

Gross margin

66.1%

40th pctl of 36 SIC 7372 peers

Revenue growth (YoY)

7.6%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

6.3%

Revenue CAGR (5Y)

10.3%

Earnings CAGR (3Y)

33.0%

FCF CAGR (3Y)

69.3%

Cash Flow Health

Is the cash real?

No warning flags · FCF 3% above net income

Free cash flow

$137.05M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

3.4%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

3.3%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net cash $711.89M

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.86

32nd pctl of 32 SIC 7372 peers (best = lowest)

Current ratio

4.96×

89th pctl of 36 SIC 7372 peers

Quick ratio

3.97×

Net cash

$711.89M

Cash & equivalents minus total debt.

Piotroski F-Score

N/A

Only 8/9 components determinable.

Valuation

Is the price reasonable?

No warning flags

Capital allocation quality

Composite score

2.7 / 5

Fair
Share count trend
1.6%2/5 Fair
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr3/5 Good
Net debt trajectory
-1.6%3/5 Good

Lifecycle Phase History

20202025
Hypergrowth
Op. Leverage
Value

Price History

ALRM-33.0% · -7.7% CAGRSPY+82.9% · +12.8% CAGR

View full financial statements →

Source filings on SEC EDGAR: 10-K annual reports · 10-Q quarterly reports