Core Insights - Alarm.com Holdings, Inc. (ALRM) has acquired Bridge to Renewables (BTR) to enhance its EnergyHub utility electric vehicle (EV) program [1][8] - BTR specializes in telematics-based solutions for EV Original Equipment Manufacturers (OEMs), facilitating their connection to electricity markets [2] - The acquisition aligns with EnergyHub's strategy to expand its market share and customer base, enhancing its Virtual Power Plant (VPP) network capabilities [3][8] Acquisition Strategy - EnergyHub's growth strategy heavily relies on acquisitions, with the recent purchase of Kapacity.io in December 2024 aimed at expanding VPPs beyond North America [4][8] - The integration of BTR will allow EnergyHub to incorporate EVs and distributed energy resources (DER) into its existing infrastructure [3][8] Financial Performance - Alarm.com has a market capitalization of approximately $2.8 billion and holds a Zacks Rank 1 (Strong Buy) [5] - The company's shares have increased by 2.4% over the past month, while the industry has grown by 4.2% [6] - The Zacks Consensus Estimate for ALRM's earnings for 2025 is $2.37 per share, reflecting a 3% increase from previous estimates [6]

Core Insights - Alarm.com Holdings (ALRM) reported quarterly earnings of $0.6 per share, exceeding the Zacks Consensus Estimate of $0.52 per share, and showing a slight decrease from $0.58 per share a year ago, resulting in an earnings surprise of +15.38% [1] - The company achieved revenues of $254.31 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.00% and increasing from $233.81 million year-over-year [2] - Alarm.com has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.63 on revenues of $250.38 million, while the estimate for the current fiscal year is $2.30 on revenues of $985.79 million [7] - The company's earnings outlook will be influenced by management's commentary during the earnings call, which is crucial for assessing future stock performance [3][4] Industry Context - The Security and Safety Services industry, to which Alarm.com belongs, is currently ranked in the top 28% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] Stock Performance - Alarm.com shares have underperformed the market, losing about 8.3% since the beginning of the year, compared to the S&P 500's gain of 7.9% [3] - The current Zacks Rank for Alarm.com is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6]

Financial Data and Key Metrics Changes - SaaS and license revenue for Q2 2025 grew to $170 million, representing a 9% year-over-year increase [14][15] - Total revenue increased by 8.8% year-over-year to $254.3 million, marking the first quarter with an annual run rate exceeding $1 billion [15][24] - Adjusted EBITDA rose by 13% year-over-year to $48.4 million, while GAAP net income grew by 3.1% to $34.6 million [17][18] - Gross profit increased by 9.4% year-over-year to $166.8 million, with gross margins improving by 40 basis points [15][17] Business Line Data and Key Metrics Changes - The residential business continued to show steady growth, contributing significantly to cash flow [8][9] - Contributions from commercial, international, and energy hub businesses approached 30% of total SaaS revenue, with a combined year-over-year growth rate of around 25% [10][11] - Hardware revenue outperformed expectations, contributing to stronger adjusted EBITDA [8][15] Market Data and Key Metrics Changes - The company remains focused on the North American residential market, where millions of potential subscribers have yet to adopt integrated video solutions [9] - The commercial business is benefiting from increased demand for security solutions, driven by recent events and a shift towards cloud-based technology [11][32] - International markets, particularly Latin America and the Middle East, are experiencing faster growth rates compared to other regions [75] Company Strategy and Development Direction - The company aims to deliver a cloud-based sensor into every property globally, with a focus on expanding into new markets and enhancing safety and security [6][7] - Recent minority investments in channel partners are part of a strategy to strengthen the service provider footprint and enhance long-term growth opportunities [20] - The company is evaluating potential investments to accelerate growth in commercial, international, and energy hub sectors [36] Management's Comments on Operating Environment and Future Outlook - Management does not anticipate significant changes in the macroeconomic environment for the second half of the year, citing the essential nature of security services [53] - The outlook for new home sales remains weak, which could impact subscriber growth and retention rates [55] - The company expects SaaS and license revenue for 2025 to be between $171.4 million and $171.6 million, reflecting confidence in the second half of the year [23][24] Other Important Information - The company implemented a price increase in June to account for a 10% baseline tariff, which may slightly dilute margins but keep gross profit dollars stable [18][19] - The recent change in U.S. tax law allows for immediate deduction of R&D expenses, potentially eliminating nearly $200 million in cash tax payments over the next five years [22] Q&A Session Summary Question: What is driving the sustainability of the commercial, international, and energy hub growth? - Management highlighted secular trends in energy demand, the completion of the commercial platform, and early-stage growth in international markets as key drivers [31][32][33] Question: Are all three business segments growing around 25%? - Management confirmed that the combined growth rate is around 25%, with individual segments varying slightly [35] Question: What is the vision for the next ten years? - The company aims to maintain its mission of a cloud-connected sensor in every property while expanding its revenue diversity and market presence [40][41] Question: What are the retention rates for the quarter? - The retention rate for the consolidated company was approximately 94.1%, with expectations to hover around 93-94% for the second half of the year [60][62] Question: How does the company view the housing market's impact on new account activations? - Management noted that while new home sales have been weak, there is cautious optimism for improvement in the next six months [66][67] Question: Are there plans for general price hikes on SaaS services? - Currently, there are no plans for broad-based service price increases for the second half of the year or next year [72][73]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents Alarm.com Holdings, Inc.'s unaudited condensed consolidated financial statements for Q2 and H1 2025 and 2024, covering operations, balance sheets, cash flows, and equity [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Alarm.com Holdings, Inc.'s unaudited condensed consolidated financial statements for Q2 and H1 2025 and 2024, including operations, balance sheets, cash flows, and equity [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenue for Q2 2025 increased 8.8% to **$254.3 million**, with operating income up 24.2% to **$32.0 million** and diluted EPS at **$0.63** Q2 2025 vs Q2 2024 Statement of Operations (in thousands, except per share) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$254,308** | **$233,807** | **+8.8%** | | SaaS and license revenue | $169,993 | $155,927 | +9.0% | | Hardware and other revenue | $84,315 | $77,880 | +8.3% | | **Operating Income** | **$32,022** | **$25,774** | **+24.2%** | | **Net Income Attributable to Common Stockholders** | **$34,552** | **$33,511** | **+3.1%** | | **Diluted EPS** | **$0.63** | **$0.62** | **+1.6%** | Six Months Ended June 30, 2025 vs 2024 Statement of Operations (in thousands, except per share) | Metric | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$493,130** | **$457,090** | **+7.9%** | | **Operating Income** | **$61,669** | **$44,499** | **+38.6%** | | **Net Income Attributable to Common Stockholders** | **$62,502** | **$57,106** | **+9.5%** | | **Diluted EPS** | **$1.15** | **$1.06** | **+8.5%** | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$2.10 billion** as of June 30, 2025, with cash decreasing to **$1.02 billion** due to investments, and total stockholders' equity growing to **$797.3 million** Balance Sheet Summary (in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,024,862 | $1,220,701 | | Total Current Assets | $1,292,556 | $1,481,592 | | **Total Assets** | **$2,098,054** | **$2,038,208** | | Total Current Liabilities | $662,256 | $188,806 | | **Total Liabilities** | **$1,246,121** | **$1,266,915** | | **Total Stockholders' Equity** | **$797,345** | **$726,546** | - The significant decrease in cash was driven by a substantial increase in 'Investments in unconsolidated entities', which rose from **$17.2 million** to **$198.6 million**[16](index=16&type=chunk) - The increase in current liabilities is primarily due to the reclassification of **$498.3 million** of convertible senior notes to current, as they mature in 2026[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities for H1 2025 was **$46.8 million**, with **$233.0 million** used in investing activities and **$9.6 million** in financing activities Cash Flow Summary - Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Operating Activities** | **$46,773** | **$72,816** | | **Investing Activities** | **($232,988)** | **($9,159)** | | **Financing Activities** | **($9,594)** | **$346,768** | | Net (Decrease) / Increase in Cash | ($195,993) | $410,292 | | Cash at End of Period | $1,033,139 | $1,111,371 | - The significant cash used in investing activities in H1 2025 was driven by **$174.7 million** for purchases of investments in unconsolidated entities and **$23.4 million** for a business acquisition[18](index=18&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details accounting policies, including the **$23.6 million** CHeKT acquisition, significant equity investments, **$1 billion** in convertible notes, and ongoing patent infringement legal proceedings - On February 10, 2025, the company acquired **81%** of CHeKT, Inc. for **$23.6 million** in cash, resulting in **$23.6 million** of goodwill allocated to the Alarm.com segment[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) - In Q2 2025, the company made significant equity method investments, including **$119.3 million** for **32.5%** of Safe Haven, **$19.2 million** for **32.5%** of All Access, and **$29.1 million** for **24.7%** of Safe Streets[63](index=63&type=chunk)[65](index=65&type=chunk) - The company has two outstanding convertible senior notes: **$500 million** 0% notes due 2026 and **$500 million** 2.25% notes due 2029[93](index=93&type=chunk)[104](index=104&type=chunk) - The company is involved in several legal proceedings concerning patent infringement with EcoFactor, Causam, and SkyBell, but has determined a loss is not probable or reasonably estimable at this time[118](index=118&type=chunk)[120](index=120&type=chunk)[123](index=123&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 and H1 2025 financial results, highlighting a **9%** YoY revenue increase to **$254.3 million**, driven by SaaS growth, significant equity investments, and new tax legislation benefits Q2 2025 Financial Highlights (in millions) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | $254.3M | $233.8M | +9% | | SaaS and license revenue | $170.0M | $155.9M | +9% | | Net Income | $34.2M | $32.5M | +5.2% | | Non-GAAP adjusted EBITDA | $48.4M | $42.8M | +13.1% | - The company made significant equity investments in Q2 2025, purchasing stakes in Safe Streets (**24.7%**), Safe Haven (**32.5%**), and All Access (**32.5%**)[169](index=169&type=chunk)[170](index=170&type=chunk) - The newly enacted One Big Beautiful Bill Act (OBBBA) is expected to significantly reduce federal income tax cash outlays by reinstating immediate R&D expense deductions and **100%** bonus depreciation[171](index=171&type=chunk) [Results of Operations](index=48&type=section&id=Results%20of%20Operations) Q2 2025 total revenue grew **9%** YoY, driven by subscriber growth and energy management solutions, with operating income increasing **24.2%** despite rising sales and marketing expenses - SaaS and license revenue for the Alarm.com segment increased by **$10.2 million** in Q2 2025 YoY due to subscriber base growth, while the Other segment's SaaS revenue grew by **$3.9 million**[213](index=213&type=chunk) - Hardware revenue increased by **$6.4 million** in Q2 2025 YoY, primarily from higher sales volume of video cameras in the Alarm.com segment[213](index=213&type=chunk) - Sales and marketing expenses increased by **$3.3 million** (**12%**) in Q2 2025 YoY, mainly due to higher personnel costs and marketing expenses to support growth[221](index=221&type=chunk) [Liquidity and Capital Resources](index=58&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, cash and cash equivalents were **$1.02 billion**, with working capital decreasing to **$630.3 million** due to convertible note reclassification and significant investing activities Working Capital Summary (in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,024,862 | $1,220,701 | | Working capital | $630,300 | $1,292,786 | - Cash flow from operations decreased to **$46.8 million** in H1 2025 from **$72.8 million** in H1 2024, primarily due to changes in operating assets and liabilities[259](index=259&type=chunk) - The company repurchased **174,400** shares for **$10.2 million** in the first six months of 2025 under its stock repurchase program[255](index=255&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=62&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are inflation and foreign exchange rates, though foreign currency risk is immaterial as most transactions are in U.S. dollars - The company's main market risks are identified as inflation and foreign currency exchange rates[270](index=270&type=chunk) - Foreign currency risk is considered immaterial as substantially all revenue and expenses are denominated in U.S. dollars[273](index=273&type=chunk) [Controls and Procedures](index=62&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[276](index=276&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the second quarter of 2025[277](index=277&type=chunk) [PART II. OTHER INFORMATION](index=64&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides information on legal proceedings, risk factors, equity security sales, and other disclosures [Legal Proceedings](index=64&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in multiple legal proceedings, including patent infringement lawsuits by EcoFactor and Causam, and a trade secret misappropriation lawsuit by SkyBell, with uncertain outcomes - The company is defending against patent infringement lawsuits from EcoFactor, Inc. and Causam Enterprises, Inc[279](index=279&type=chunk)[281](index=281&type=chunk) - A new lawsuit was filed on July 3, 2025, by SkyBell Technologies, Inc., alleging misappropriation of trade secrets related to video doorbells[284](index=284&type=chunk) [Risk Factors](index=65&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks including fluctuating quarterly results, inability to sustain growth, liability from solution failures, intense competition, reliance on key partners, and cybersecurity threats - The company's quarterly results are subject to fluctuation and may be negatively affected by macroeconomic conditions[291](index=291&type=chunk)[296](index=296&type=chunk) - A substantial portion of revenue comes from a limited number of service provider partners, and the loss of a major partner could significantly decrease revenue[291](index=291&type=chunk)[342](index=342&type=chunk) - The company faces high competition from large technology companies, broadband providers, and other managed service providers in the connected property market[291](index=291&type=chunk)[322](index=322&type=chunk) - Risks related to the company's security and life safety solutions include potential liability from failures, cybersecurity threats, and data breaches[291](index=291&type=chunk)[304](index=304&type=chunk)[332](index=332&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=103&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **88,000** shares for approximately **$5.1 million** in Q2 2025 under a **$100.0 million** stock repurchase program authorized through May 2026 Q2 2025 Stock Repurchase Activity | Period | Total Shares Purchased | Average Price Paid per Share | Value of Shares Remaining for Purchase (in USD) | | :--- | :--- | :--- | :--- | | June 2025 | 88,000 | $58.05 | $89,833,065 | [Other Information](index=104&type=section&id=Item%205.%20Other%20Information) CFO Kevin Bradley adopted a Rule 10b5-1 trading arrangement in Q2 2025 for the potential sale of up to **2,010** shares of common stock - CFO Kevin Bradley adopted a Rule 10b5-1 trading plan on June 4, 2025, for the sale of up to **2,010** shares[455](index=455&type=chunk)

[Executive Summary](index=1&type=section&id=Executive%20Summary) Alarm.com's Q2 2025 results show strong financial growth and strategic product innovation, supported by an optimistic full-year financial outlook [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results%20as%20Compared%20to%20Second%20Quarter%202024) Alarm.com reported strong financial performance for Q2 2025, with significant year-over-year growth in SaaS and license revenue, GAAP net income, and non-GAAP adjusted EBITDA, demonstrating continued operational strength Second Quarter 2025 Key Financial Results (YoY Comparison) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | | :------------------------------------------------ | :----------------- | :----------------- | :--------- | | SaaS and license revenue | $170.0 | $155.9 | +9.0% | | GAAP net income | $34.2 | $32.5 | +5.2% | | Non-GAAP adjusted EBITDA | $48.4 | $42.8 | +13.0% | | Total revenue | $254.3 | $233.8 | +8.8% | | GAAP net income attributable to common stockholders | $34.6 | $33.5 | +3.1% | | GAAP diluted EPS | $0.63 | $0.62 | +1.6% | | Non-GAAP adjusted net income attributable to common stockholders | $34.1 | $32.0 | +6.5% | | Non-GAAP diluted EPS | $0.60 | $0.58 | +3.4% | Cash Position and Flow (Six Months Ended June 30) | Metric | June 30, 2025 (Millions) | Dec 31, 2024 (Millions) | Change (vs. Dec 2024) | | :-------------------------------------- | :----------------------- | :---------------------- | :-------------------- | | Total cash and cash equivalents | $1,020 | $1,220 | -$200 | | **Six Months Ended June 30** | **2025 (Millions)** | **2024 (Millions)** | **YoY Change** | | Cash flows from operating activities | $46.8 | $72.8 | -$26.0 | | Non-GAAP free cash flow | $36.1 | $67.8 | -$31.7 | [Recent Business Highlights](index=1&type=section&id=Recent%20Business%20Highlights) Alarm.com's recent innovations include the launch of new AI-driven video analytics capabilities through its OpenEye subsidiary and a new smart thermostat, enhancing its connected property platform - OpenEye, Alarm.com's commercial video surveillance subsidiary, launched new **AI-powered search tools** that enhance video investigations, allowing subscribers to quickly locate footage by searching for **individuals or vehicles** using specific visual attributes[7](index=7&type=chunk) - Alarm.com launched a new **T25 smart thermostat** featuring a streamlined design, broad HVAC system compatibility, simplified installation, and seamless integration with the Alarm.com platform for intelligent energy management[7](index=7&type=chunk) [Financial Outlook](index=1&type=section&id=Financial%20Outlook) Alarm.com provided an optimistic financial outlook, increasing its full-year 2025 guidance for SaaS and total revenue, and projecting strong non-GAAP adjusted EBITDA and net income, while cautioning on the forward-looking nature of these estimates Financial Outlook: Q3 2025 and Full Year 2025 Guidance | Metric | Q3 2025 Outlook (Millions) | Full Year 2025 Guidance (Millions) | | :------------------------------------------------------------------ | :------------------------- | :--------------------------------- | | SaaS and license revenue | $171.4 - $171.6 | $681.0 - $681.4 | | Total revenue | N/A | $990.0 - $996.4 | | *Includes hardware and other revenue | N/A | $309.0 - $315.0 | | Non-GAAP adjusted EBITDA | N/A | $195.0 - $196.5 | | Non-GAAP adjusted net income attributable to common stockholders | N/A | $136.0 - $136.5 | | Non-GAAP adjusted net income attributable to common stockholders per diluted share | N/A | $2.40 | - The **2025 guidance** is forward-looking and based on current management expectations, subject to material differences and no obligation to update after the release date[9](index=9&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) This section provides essential details about Alarm.com Holdings, Inc., including its business overview, conference call schedules, and investor relations contacts [About Alarm.com Holdings, Inc.](index=3&type=section&id=About%20Alarm.com%20Holdings%2C%20Inc.) Alarm.com is a leading platform for intelligently connected properties, providing comprehensive security, monitoring, and management solutions to millions of homeowners and businesses globally through a network of professional service providers - Alarm.com is the **leading platform for intelligently connected properties**, offering solutions for security, video surveillance, access control, intelligent automation, energy management, and wellness[11](index=11&type=chunk) - Its technology is relied upon by **millions of homeowners and businesses** to secure, monitor, and manage their environments from anywhere, delivered exclusively through a trusted network of **thousands of professional service providers** and commercial integrators across North America and worldwide[11](index=11&type=chunk) - Alarm.com's common stock is traded on **Nasdaq** under the ticker symbol **ALRM**[11](index=11&type=chunk) [Conference Call and Webcast Information](index=3&type=section&id=Conference%20Call%20and%20Webcast%20Information) Alarm.com scheduled a conference call and live audio webcast for August 7, 2025, to discuss its second quarter 2025 financial results and outlook, with details provided for registration and access - Alarm.com hosted a conference call and live audio webcast on **August 7, 2025**, at 4:30 p.m. ET to discuss **Q2 2025 financial results** and Q3/full-year 2025 outlook[10](index=10&type=chunk) - Analysts and investors could pre-register for the live call or access an archived webcast on Alarm.com's Investor Relations website[10](index=10&type=chunk) [Investor & Media Relations](index=5&type=section&id=Investor%20%26%20Media%20Relations) Contact information for investor and media relations is provided for inquiries regarding Alarm.com - **Matthew Zartman** is the contact for Investor & Media Relations at Alarm.com, reachable via **ir@alarm.com**[26](index=26&type=chunk) [GAAP Financial Statements](index=6&type=section&id=GAAP%20Financial%20Statements) This section presents Alarm.com's official GAAP financial statements, including consolidated statements of operations, balance sheets, and cash flows, detailing the company's financial performance and position [Consolidated Statements of Operations](index=6&type=section&id=ALARM.COM%20HOLDINGS%2C%20INC.%20Consolidated%20Statements%20of%20Operations) The Consolidated Statements of Operations show robust revenue growth for both the three and six months ended June 30, 2025, driven by increases in SaaS and license revenue, leading to higher operating income and net income compared to the prior year Consolidated Statements of Operations (Three Months Ended June 30) | Metric | Q2 2025 (Thousands) | Q2 2024 (Thousands) | YoY Change | | :---------------------------------------- | :------------------ | :------------------ | :--------- | | SaaS and license revenue | $169,993 | $155,927 | +9.0% | | Hardware and other revenue | $84,315 | $77,880 | +8.3% | | Total revenue | $254,308 | $233,807 | +8.8% | | Total cost of revenue | $87,462 | $81,282 | +7.6% | | Operating income | $32,022 | $25,774 | +24.2% | | Income before income taxes | $39,359 | $33,404 | +17.8% | | Net income | $34,217 | $32,520 | +5.2% | | Net income attributable to common stockholders | $34,552 | $33,511 | +3.1% | | Diluted EPS | $0.63 | $0.62 | +1.6% | Consolidated Statements of Operations (Six Months Ended June 30) | Metric | H1 2025 (Thousands) | H1 2024 (Thousands) | YoY Change | | :---------------------------------------- | :------------------ | :------------------ | :--------- | | SaaS and license revenue | $333,793 | $306,271 | +9.0% | | Hardware and other revenue | $159,337 | $150,819 | +5.6% | | Total revenue | $493,130 | $457,090 | +7.9% | | Total cost of revenue | $165,696 | $157,797 | +5.0% | | Operating income | $61,669 | $44,499 | +38.6% | | Income before income taxes | $74,378 | $59,555 | +24.9% | | Net income | $61,929 | $55,924 | +10.7% | | Net income attributable to common stockholders | $62,502 | $57,106 | +9.4% | | Diluted EPS | $1.15 | $1.06 | +8.5% | - Total stock-based compensation expense for **Q2 2025 was $8,934 thousand**, down from **$11,213 thousand in Q2 2024**; for the six months ended June 30, **2025, it was $18,392 thousand**, down from **$22,481 thousand in the prior year period**[29](index=29&type=chunk) [Consolidated Balance Sheets](index=7&type=section&id=ALARM.COM%20HOLDINGS%2C%20INC.%20Consolidated%20Balance%20Sheets) The Consolidated Balance Sheets show an increase in total assets and stockholders' equity as of June 30, 2025, compared to December 31, 2024, despite a decrease in cash and cash equivalents, primarily due to a reclassification of convertible senior notes to current liabilities Consolidated Balance Sheets (As of June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 (Thousands) | Dec 31, 2024 (Thousands) | Change (vs. Dec 2024) | | :---------------------------------------- | :------------------------ | :----------------------- | :-------------------- | | Cash and cash equivalents | $1,024,862 | $1,220,701 | -$195,839 | | Total current assets | $1,292,556 | $1,481,592 | -$189,036 | | Total assets | $2,098,054 | $2,038,208 | +$59,846 | | Total current liabilities | $662,256 | $188,806 | +$473,450 | | Total liabilities | $1,246,121 | $1,266,915 | -$20,794 | | Total stockholders' equity | $797,345 | $726,546 | +$70,799 | - A significant increase in current liabilities is noted due to the reclassification of convertible senior notes, with **$498.3 million** now classified as current as of June 30, 2025, compared to none as of December 31, 2024[31](index=31&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=ALARM.COM%20HOLDINGS%2C%20INC.%20Consolidated%20Statements%20of%20Cash%20Flows) The Consolidated Statements of Cash Flows indicate a decrease in cash from operating activities and a substantial increase in cash used in investing activities for the six months ended June 30, 2025, primarily due to significant investments in unconsolidated entities and business acquisitions Consolidated Statements of Cash Flows (Six Months Ended June 30) | Metric | H1 2025 (Thousands) | H1 2024 (Thousands) | YoY Change | | :---------------------------------------- | :------------------ | :------------------ | :--------- | | Cash flows from operating activities | $46,773 | $72,816 | -$26,043 | | Cash flows used in investing activities | -$232,988 | -$9,159 | -$223,829 | | Cash flows (used in) / from financing activities | -$9,594 | $346,768 | -$356,362 | | Net (decrease) / increase in cash, cash equivalents and restricted cash | -$195,993 | $410,292 | -$606,285 | | Cash, cash equivalents and restricted cash at end of period | $1,033,139 | $1,111,371 | -$78,232 | - The significant increase in cash used in investing activities for H1 2025 was primarily driven by a **$174.7 million** purchase of investments in unconsolidated entities and a **$23.4 million** business acquisition, net of cash acquired[33](index=33&type=chunk) [Non-GAAP Financial Measures & Reconciliation](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliation) This section defines and reconciles Alarm.com's non-GAAP financial measures to their most comparable GAAP equivalents, offering additional perspectives on the company's operational and financial performance [Explanation of Non-GAAP Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) Alarm.com utilizes various non-GAAP financial measures to provide a clearer view of its core operating performance, strategic decisions, and cash generation, while acknowledging their inherent limitations compared to GAAP - Alarm.com uses **non-GAAP financial measures** (e.g., adjusted EBITDA, adjusted net income, free cash flow) to supplement GAAP results, believing they provide useful insights into core operating performance, trends, capital allocation, and cash generation after capital expenditures[12](index=12&type=chunk) - Non-GAAP free cash flow is defined as **cash flows from operating activities less purchases of property and equipment**[13](index=13&type=chunk) - Key items excluded from non-GAAP measures include interest expense (for EBITDA), interest income, certain other expense/income, provision for income taxes (for EBITDA), income from equity method investments, amortization expense, depreciation expense (for EBITDA), amortization of debt issuance costs, stock-based compensation expense, acquisition-related expense, and non-ordinary course litigation expense[16](index=16&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) [Reconciliation of Non-GAAP Measures](index=9&type=section&id=ALARM.COM%20HOLDINGS%2C%20INC.%20Reconciliation%20of%20Non-GAAP%20Measures) The report provides detailed reconciliations of various non-GAAP financial measures, including adjusted EBITDA, adjusted net income, and adjusted net income attributable to common stockholders, to their most directly comparable GAAP measures for both the three and six months ended June 30, 2025 and 2024 [Non-GAAP Adjusted EBITDA Reconciliation](index=9&type=section&id=Non-GAAP%20adjusted%20EBITDA%3A) This section provides a detailed reconciliation of GAAP net income to Non-GAAP adjusted EBITDA for the three and six months ended June 30, 2025 and 2024 Non-GAAP Adjusted EBITDA Reconciliation (Thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :---------------------- | :------ | :------ | :------ | :------ | | Net income (GAAP) | $34,217 | $32,520 | $61,929 | $55,924 | | Total adjustments | $14,195 | $10,311 | $30,023 | $23,953 | | Non-GAAP adjusted EBITDA | $48,412 | $42,831 | $91,952 | $79,877 | [Non-GAAP Adjusted Net Income Reconciliation](index=9&type=section&id=Non-GAAP%20adjusted%20net%20income%3A) This section details the reconciliation of GAAP net income to Non-GAAP adjusted net income for the three and six months ended June 30, 2025 and 2024 Non-GAAP Adjusted Net Income Reconciliation (Thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------ | :------ | :------ | :------ | :------ | | Net income, as reported (GAAP) | $34,217 | $32,520 | $61,929 | $55,924 | | Income before income taxes (GAAP) | $39,359 | $33,404 | $74,378 | $59,555 | | Non-GAAP adjusted income before income taxes | $42,792 | $39,522 | $81,050 | $73,908 | | Non-GAAP adjusted net income | $33,805 | $31,222 | $64,029 | $58,387 | [Non-GAAP Adjusted Net Income Attributable to Common Stockholders Reconciliation](index=10&type=section&id=Non-GAAP%20adjusted%20net%20income%20attributable%20to%20common%20stockholders%3A) This section reconciles GAAP net income attributable to common stockholders to its Non-GAAP adjusted equivalent for the three and six months ended June 30, 2025 and 2024 Non-GAAP Adjusted Net Income Attributable to Common Stockholders Reconciliation (Thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------------ | :------ | :------ | :------ | :------ | | Net income attributable to common stockholders, as reported (GAAP) | $34,552 | $33,511 | $62,502 | $57,106 | | Income attributable to common stockholders before income taxes (GAAP) | $39,694 | $34,395 | $74,951 | $60,737 | | Non-GAAP adjusted income attributable to common stockholders before income taxes | $43,127 | $40,513 | $81,623 | $75,090 | | Non-GAAP adjusted net income attributable to common stockholders | $34,070 | $32,005 | $64,482 | $59,321 | [Non-GAAP Adjusted Net Income Attributable to Common Stockholders Per Share Reconciliation](index=11&type=section&id=Non-GAAP%20adjusted%20net%20income%20attributable%20to%20common%20stockholders%20per%20share%3A) This section provides the reconciliation of GAAP diluted EPS to Non-GAAP adjusted diluted EPS for the three and six months ended June 30, 2025 and 2024 Non-GAAP Adjusted Net Income Attributable to Common Stockholders Per Share Reconciliation | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------------ | :------ | :------ | :------ | :------ | | Net income attributable to common stockholders per share - basic, as reported (GAAP) | $0.69 | $0.67 | $1.26 | $1.14 | | Non-GAAP adjusted net income attributable to common stockholders per share - basic | $0.68 | $0.64 | $1.30 | $1.19 | | Non-GAAP adjusted net income attributable to common stockholders per share - diluted | $0.60 | $0.58 | $1.14 | $1.07 | [Non-GAAP Free Cash Flow Reconciliation](index=11&type=section&id=Non-GAAP%20free%20cash%20flow%3A) This section reconciles cash flows from operating activities to Non-GAAP free cash flow for the three and six months ended June 30, 2025 and 2024 Non-GAAP Free Cash Flow Reconciliation (Thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Cash flows from operating activities | $22,716 | $22,963 | $46,773 | $72,816 | | Additions to property and equipment | -$4,552 | -$1,992 | -$10,667 | -$5,058 | | Non-GAAP free cash flow | $18,164 | $20,971 | $36,106 | $67,758 | [Forward-Looking Statements & Risks](index=5&type=section&id=Forward-Looking%20Statements) This section details the forward-looking nature of the company's statements and outlines various risks and uncertainties that could impact future financial results and operations [Forward-Looking Statements & Risks](index=5&type=section&id=Forward-Looking%20Statements) This section outlines the forward-looking nature of the press release, identifying potential risks and uncertainties that could cause actual results to differ materially from projections, including macroeconomic conditions, competition, and operational challenges - The press release contains **forward-looking statements** regarding the Company's opportunities, positioning, benefits of new offerings, acquisitions, investments, and **financial guidance for Q3 and full year 2025**[25](index=25&type=chunk) - **Actual results may differ materially** due to known and unknown risks, uncertainties, and other factors, including **global economic uncertainty, geopolitical upheaval, supply chain disruptions, interest rates, tariffs, and inflation (Macroeconomic Conditions)**[25](index=25&type=chunk) - Other risks include the impact of Macroeconomic Conditions on demand, reliability of network operations, ability to retain partners and subscribers, manage growth, effects of competition, integration of acquired assets, reliance on service provider networks and suppliers, and new trade barriers[25](index=25&type=chunk)

Group 1 - The article discusses the services provided by IPO Edge, which includes actionable information on growth stocks, first-look IPO filings, previews on upcoming IPOs, an IPO calendar, a database of U.S. IPOs, and a comprehensive guide to IPO investing [1]

Company Overview - Alarm.com is a cloud-based (SaaS) operating system for intelligently connected properties[9] - As of June 30, 2020, Alarm.com has over 6.8 million subscribers[10] and over 9,000 service provider partners[10] - Alarm.com processed over 200 billion data points in the last year[17] and supports over 100 million connected devices[17] Market Opportunity - The global smart security market is projected to reach $21 billion in 2022[25] - In the US and Canada, there are 144 million homes[31], with 24 million having professionally monitored security[31], and 6.8 million powered by Alarm.com[31] - The video surveillance Total Addressable Market (TAM) in the Americas is $4.4 billion[39], with Video-Surveillance-as-a-Service (VSaaS) market share expected to increase from 9% in 2018 to 15% by 2022[39] Financial Performance - In Q2 2020, Alarm.com's SaaS & License Revenue was $95.7 million[121], representing 16% year-over-year growth[121] - Total revenue for Q2 2020 was $141.6 million[121], a 16% year-over-year increase[121] - Adjusted EBITDA for Q2 2020 was $29.2 million[121], with a total gross margin of 65.4%[121] - Alarm.com ended Q2 2020 with a cash balance of $205.8 million[121] and free cash flow of $31.8 million[121]

Core Viewpoint - Alarm.com Holdings reported strong first-quarter financial results, exceeding market expectations, which led to a slight increase in share price despite a general market decline [1][2]. Financial Performance - Revenue for the quarter increased by 7% year-over-year to just under $239 million, surpassing the consensus estimate of approximately $237 million [2]. - Adjusted net income rose to $38.5 million ($0.54 per share) from $34.4 million in the previous year, exceeding the analyst expectation of $0.51 per share [2]. Revenue Drivers - The revenue growth was primarily driven by higher software-as-a-service (SaaS) and license revenue, which totaled nearly $164 million, reflecting a 9% year-over-year increase [3]. - The company launched several new products during the quarter, including a competitively priced indoor security camera and AI Deterrence technology for intruder identification [3]. Future Guidance - For the second quarter and the full year of 2025, total revenue is projected to be between $975.8 million and $991.2 million, with adjusted per-share net income expected to be between $2.32 and $2.33 [4]. - The average analyst estimates for 2025 revenue is $979 million, with adjusted profitability at $2.27 per share [4]. Market Position - Alarm.com is maintaining a competitive edge in its industry, although the market is not viewed as a high-growth area [5]. - The positive market reaction to the first-quarter performance is seen as a reasonable response to the company's potential [5].

PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for the quarter ended March 31, 2025, including key financial statements and notes, reporting total revenue of **$238.8 million** and net income of **$27.7 million** Condensed Consolidated Statements of Operations (Q1 2025 vs Q1 2024) | Financial Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total revenue** | **$238,822** | **$223,283** | | SaaS and license revenue | $163,800 | $150,344 | | Hardware and other revenue | $75,022 | $72,939 | | **Operating income** | **$29,647** | **$18,725** | | **Net income** | **$27,712** | **$23,404** | | Net income attributable to common stockholders | $27,950 | $23,595 | | **Diluted EPS** | **$0.52** | **$0.44** | Condensed Consolidated Balance Sheets | Balance Sheet Item | As of March 31, 2025 (in thousands) | As of December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $1,186,195 | $1,220,701 | | **Total Assets** | **$2,077,431** | **$2,038,208** | | Convertible senior notes, net (current & noncurrent) | $984,975 | $983,477 | | **Total Liabilities** | **$1,265,243** | **$1,266,915** | | **Total Stockholders' Equity** | **$759,603** | **$726,546** | Condensed Consolidated Statements of Cash Flows | Cash Flow Activity | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | Cash flows from operating activities | $24,057 | $49,853 | | Cash flows used in investing activities | ($55,179) | ($3,961) | | Cash flows (used in) / from financing activities | ($3,476) | $6,356 | | **Net (decrease) / increase in cash** | **($34,716)** | **$52,068** | [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies and financial data, covering revenue recognition, the **$23.4 million** CHeKT acquisition, **$1 billion** in convertible senior notes, segment performance, and a **$29.1 million** investment in Safe Streets USA, LLC - On February 10, 2025, the company acquired **81%** of CHeKT, Inc. for **$23.6 million** in cash, net of holdbacks. The acquisition resulted in **$23.6 million** of goodwill, which was allocated to the Alarm.com segment[46](index=46&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk) - The company has two outstanding series of convertible senior notes: **$500.0 million** of **0%** notes due in 2026 and **$500.0 million** of **2.25%** notes due in 2029[89](index=89&type=chunk)[99](index=99&type=chunk) - For Q1 2025, the Alarm.com segment generated **$34.3 million** in operating income, while the Other segment reported an operating loss of **$4.7 million**[140](index=140&type=chunk) - Subsequent to the quarter end, on April 28, 2025, the company paid **$29.1 million** in cash to purchase a **24.7%** stake in Safe Streets USA, LLC[143](index=143&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, noting a **7%** revenue increase to **$238.8 million**, a **95%** SaaS and license revenue renewal rate, and details liquidity with **$1.19 billion** in cash Q1 2025 Financial Highlights | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $238.8 million | $223.3 million | | SaaS and license revenue | $163.8 million | $150.3 million | | Net income | $27.7 million | $23.4 million | | Non-GAAP adjusted EBITDA | $43.5 million | $37.0 million | - The SaaS and license revenue renewal rate for the trailing twelve months ended March 31, 2025, was **95%**, up from **94%** in the prior year period[161](index=161&type=chunk)[171](index=171&type=chunk) - Recent strategic activities include the acquisition of **81%** of CHeKT, Inc. on February 10, 2025, and a **$29.1 million** investment for a **24.7%** stake in Safe Streets USA, LLC on April 28, 2025[157](index=157&type=chunk)[159](index=159&type=chunk) - The company paid **$33.5 million** in April 2025 for the 2024 cash tax increase resulting from the requirement to capitalize and amortize R&D expenditures under Section 174 of the Tax Cuts and Jobs Act[222](index=222&type=chunk) [Results of Operations](index=43&type=section&id=Results%20of%20Operations) This section compares Q1 2025 and Q1 2024 operating results, showing a **7%** total revenue increase to **$238.8 million** and a **58%** operating income growth to **$29.6 million**, partly due to reduced general and administrative expenses - Total revenue increased **7%** YoY, with SaaS and license revenue growing **9%** due to an increase in the subscriber base and hardware revenue growing **3%**[200](index=200&type=chunk) - General and administrative expenses decreased by **8%** (**$2.3 million**), mainly due to a **$4.3 million** decrease in the provision for credit losses, which was elevated in Q1 2024 due to a specific loan to a distribution partner[206](index=206&type=chunk) - Research and development expenses increased by **4%** (**$2.4 million**) due to higher costs for external consultants, software licenses, and personnel[207](index=207&type=chunk) - The effective tax rate increased to **20.9%** in Q1 2025 from **10.5%** in Q1 2024. The prior year's rate was lower due to a tax benefit from the closure of an IRS examination and a tax windfall from stock-based compensation[212](index=212&type=chunk) [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company held **$1.19 billion** in cash, with operating cash flow decreasing to **$24.1 million**, and investing activities increasing to **$55.2 million** due to the CHeKT acquisition and a new loan - As of March 31, 2025, the company had **$1.19 billion** in cash and cash equivalents and **$775.3 million** in working capital[220](index=220&type=chunk)[221](index=221&type=chunk) Cash Flow Summary (Q1 2025 vs Q1 2024) | Cash Flow Activity | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Operating Activities | $24,057 | $49,853 | | Investing Activities | ($55,179) | ($3,961) | | Financing Activities | ($3,476) | $6,356 | - The **$51.2 million** increase in cash used for investing was primarily due to the **$23.6 million** paid for the CHeKT acquisition and a **$21.5 million** note receivable issued to a service provider partner[238](index=238&type=chunk) - The company repurchased **86,400** shares of its common stock for **$5.1 million** under its stock repurchase program[231](index=231&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=54&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company identifies inflation and foreign currency exchange rates as primary market risks, deeming both immaterial due to U.S. dollar-denominated operations and no material inflationary impact - The primary market risks are identified as inflation and foreign currency exchange[245](index=245&type=chunk) - Management believes inflation has not had a material effect on business operations or financial condition[247](index=247&type=chunk) - Foreign currency exchange risk is considered immaterial as most revenue and expenses are denominated in U.S. dollars[248](index=248&type=chunk) [Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter, and is integrating the CHeKT business - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[250](index=250&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[251](index=251&type=chunk) - The company is in the process of integrating CHeKT, acquired on February 10, 2025, into its internal control over financial reporting[251](index=251&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=57&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in several patent infringement lawsuits, including cases with EcoFactor, Inc. and Causam Enterprises, Inc., and is indemnifying CSG in a Ubiquitous Connectivity, LP litigation - The company is defending a lawsuit from EcoFactor, Inc. alleging infringement of five U.S. patents. The case is currently stayed pending patent reexamination and review proceedings[114](index=114&type=chunk)[253](index=253&type=chunk) - A lawsuit from Causam Enterprises, Inc. alleges infringement of four U.S. patents. This district court case is stayed pending final resolution of a related ITC investigation where the ITC found in favor of Alarm.com[116](index=116&type=chunk)[255](index=255&type=chunk)[256](index=256&type=chunk) - The company is indemnifying its service provider partner CSG in an ongoing patent litigation brought by Ubiquitous Connectivity, LP, where a trial is scheduled for July 2026[119](index=119&type=chunk)[258](index=258&type=chunk) [Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) This section details risks including fluctuating quarterly results, intense competition, reliance on service provider partners, potential security solution failures, cybersecurity threats, and complex data privacy regulations - The company faces intense competition from other technology platforms, traditional security providers, and large technology companies like Google, Amazon, and Apple that are targeting the connected property market[291](index=291&type=chunk)[293](index=293&type=chunk)[295](index=295&type=chunk) - A substantial portion of revenue comes from a limited number of service provider partners. ADT represented over **15%** but not more than **20%** of revenue in 2022, 2023, and 2024[312](index=312&type=chunk) - The business is subject to risks from failure of its security and life safety solutions, cybersecurity breaches, and dependence on third-party wireless carriers, whose network shutdowns (e.g., 3G) can require costly subscriber upgrades[271](index=271&type=chunk)[301](index=301&type=chunk)[324](index=324&type=chunk) - The company is subject to complex and evolving regulations, including data privacy laws like GDPR in Europe and CCPA/CPRA in California, which can increase compliance costs and legal risks[339](index=339&type=chunk)[341](index=341&type=chunk)[342](index=342&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=94&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2025, the company repurchased **86,400** shares of common stock for approximately **$5.1 million** under its **$100 million** repurchase program, leaving **$94.9 million** available Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 2025 | — | $ — | | February 2025 | — | $ — | | March 2025 | 86,400 | $58.55 | | **Total** | **86,400** | **$58.55** | - As of March 31, 2025, approximately **$94.9 million** remained available for purchase under the company's stock repurchase program[422](index=422&type=chunk) [Defaults Upon Senior Securities](index=94&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities during the reporting period - None[424](index=424&type=chunk) [Mine Safety Disclosures](index=95&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[425](index=425&type=chunk) [Other Information](index=95&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025 - During the three months ended March 31, 2025, no directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement[426](index=426&type=chunk) [Exhibits](index=96&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate documents, lease amendments, CEO/CFO certifications, and Inline XBRL data files - The list of exhibits includes required CEO and CFO certifications (31.1, 31.2, 32.1) and Inline XBRL documents[432](index=432&type=chunk)

Core Insights - Alarm.com Holdings (ALRM) reported quarterly earnings of $0.54 per share, exceeding the Zacks Consensus Estimate of $0.48 per share, and showing an increase from $0.50 per share a year ago, resulting in an earnings surprise of 12.50% [1] - The company achieved revenues of $238.82 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.91% and up from $223.28 million year-over-year [2] - Alarm.com has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The future performance of Alarm.com shares will largely depend on management's commentary during the earnings call and the sustainability of the stock's price movement based on recent earnings and future expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.55, with projected revenues of $243.89 million, and for the current fiscal year, the EPS estimate is $2.28 on revenues of $979.52 million [7] Industry Context - The Security and Safety Services industry, to which Alarm.com belongs, is currently ranked in the bottom 29% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]