Core Insights - Alarm.com reported Q3 CY2025 revenue of $256.4 million, a 6.6% increase year-on-year, exceeding analyst estimates by 2.2% [6][7] - The company achieved a non-GAAP profit of $0.76 per share, which is 24.3% above consensus estimates [6] - Management raised its full-year Adjusted EPS guidance to $2.53 at the midpoint, reflecting a 5.4% increase [6] Company Overview - Alarm.com processes over 325 billion data points annually from more than 150 million connected devices, providing cloud-based platforms for property owners to monitor and control various connected devices [3] Revenue Growth - Over the last five years, Alarm.com has grown its sales at a compounded annual growth rate of 10.8%, although this is below the standards for the software sector [4] - The company's annualized revenue growth over the last two years is 7.2%, indicating a slowdown compared to its five-year trend [5][7] Financial Performance - Adjusted EBITDA for the quarter was $59.16 million, with a margin of 23.1%, beating analyst estimates by 17.2% [6] - The operating margin was 14.4%, consistent with the same quarter last year [6] - Free cash flow margin improved to 25.7%, up from 7.1% in the previous quarter [6] - Billings at the end of the quarter reached $257.1 million, marking a 6.4% year-on-year increase [6] Future Outlook - Analysts project revenue growth of 3.1% over the next 12 months, indicating a deceleration in demand for Alarm.com's products and services [7]