Alarm.com Holdings, Inc. (ALRM) Stock

Alarm.com Holdings, Inc. (ALRM) is a Technology stock trading at $57.06 (as of 2026-08-20), with a market capitalization of $2.82B and a trailing P/E of 26.6. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Alarm.com Holdings, Inc. offers cloud-based solutions for connected residential and commercial properties. Through its Alarm.com and Other segments, it supports security control and monitoring, including connected devices and video services, and also provides home automation, energy management, and related commercial offerings for customers in the United States and internationally.

Understand Alarm.com Holdings, Inc.: how it makes money

Alarm.com provides cloud-based security and smart property solutions for residential and commercial sites, and it makes money mainly from subscription and software license revenue, with additional contribution from hardware sales and related revenue.

The profit engine is recurring subscription and software license revenue, supported by retention, including a 95.4% Revenue Renewal Rate and a large connected property subscriber base (9.1 million).

Revenue by segment (latest quarter)
Alarm.com$0.3B
Other$0.0B

Business quality (Mixed): The model looks subscription anchored, with retention and subscriber scale as key operational signals, while a smaller hardware and other revenue component can add variability versus purely recurring revenue.

Valuation: Trades at 19× trailing earnings · $2B market cap.

Bull case

  • High renewal rate supports recurring revenue: Revenue Renewal Rate is 95.4%.
  • Subscriber scale indicates broad platform adoption: Connected Property Subscribers are 9.1 million.

Bear case

  • Not all revenue is recurring: The company also has hardware and other revenue (hardware revenue candidate value of 0.08B), so results can be more exposed to hardware demand changes than subscription-only models.
  • Execution depends on a partner ecosystem: The company reports Professional Service Provider Partners (12,000) and Active Service Provider Partners (500), so channel performance can affect subscriber and revenue outcomes.
Valuation — source: SEC EDGAR (first-party)
Price$57.06
Market Cap$2.82B
P/E Ratio26.6
EV / EBITDA13.9
Price / Book3.26
Price / Sales2.65
FCF Yield10.2%
DCF Value (model)$69.10
DCF Upside vs Price21.1%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$1.01B
Net Margin13.0%
Revenue Growth (YoY)7.6%
EPS Growth (YoY)6.4%
FCF Growth (YoY)-30.2%
Financial Health — source: SEC EDGAR
Altman Z-Score2.68 (grey)
Valuation vs Sector & Industry
Stock P/E26.6
Sector P/E (Technology)33.9
Industry P/E (Business Services)30.0
vs Sector-21.7%
vs Industry-11.3%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderBlackRock, Inc. ($394.62M)
Institutional Holders Tracked10
Company
SectorTechnology
IndustryBusiness Services
CEOStephen S. Trundle
Employees2,020
CountryUS
IPO Date2015-06-26

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ALRM earnings history · ALRM institutional & insider holders · ALRM KPIs & operating metrics · ALRM financials · ALRM investor presentations & press releases · ALRM SEC filings · ALRM peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.