ALRM
Alarm.com Holdings, Inc.
ALRM's fundamentals are mixed, but it looks cheap: trading at 29x earnings, below its usual 45x. Analysts expect earnings growth.
ALRM Fundamentals
| Metric | Status |
|---|---|
| Stable | |
| Healthy | |
| Strong | |
| Healthy |
ALRM's profitability, cash flow and balance sheet are currently healthy, and its revenue is stable.
ALRM PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Forward | 22x | $66.42 | — |
| Cheap | 24x | $53.89 | -19% |
| Current | 29x | $66.42 | — |
| Fair | 45x | $103 | +55% |
| Expensive | 62x | $140 | +112% |
Historical ranges are pointers, not guarantees.
ALRM's PE is in its cheap range at 29x. If earnings grow as analysts expect, today's price would be 22x next year's earnings.
ALRM Forward outlook
| Metric | Outlook |
|---|---|
| Strongly improving | |
| Growth | |
| Growth | |
| Stable | |
| Limited | |
| Moderate |
Analysts expect earnings and revenue growth for ALRM, with profitability holding steady.
ALRM Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $2.99 | +32% |
| Q3 2026 | $2.27 | -3.8% |
| Q2 2026 | $2.26 | -5% |
| Q1 2026 | $2.41 | +1.7% |
| Q4 2025 | $2.46 | +7.4% |
| Q3 2025 | $2.36 | +2.2% |
| Q2 2025 | $2.38 | +18% |
| Q1 2025 | $2.37 | +40% |
| Q4 2024 | $2.29 | +50% |
ALRM earned $2.27 per share over the past year, down 3.8% from the year before.
ALRM Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $279.4M | +9% |
| Q2 2026 | $277.7M | +9.2% |
| Q1 2026 | $265.2M | +11% |
| Q4 2025 | $261.7M | +8% |
| Q3 2025 | $256.4M | +6.6% |
| Q2 2025 | $254.3M | +8.8% |
| Q1 2025 | $238.8M | +7% |
| Q4 2024 | $242.2M | +7.1% |
ALRM's revenue has grown year over year every quarter since late 2020: $279M last quarter, up 9% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 16% | +1.3 points |
| Q2 2026 | 12% | -0.9 points |
| Q1 2026 | 12% | -0.5 points |
| Q4 2025 | 13% | +0.6 points |
| Q3 2025 | 14% | +0.6 points |
| Q2 2025 | 13% | +1.6 points |
| Q1 2025 | 12% | +4 points |
| Q4 2024 | 13% | +1.4 points |
ALRM's operating margin was 16% last quarter, up 1.3 points from the same quarter a year ago, near the top of its range since 2019.
ALRM Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $69.5M | +5.5% |
| Q2 2026 | $37M | +104% |
| Q1 2026 | $49.7M | +177% |
| Q4 2025 | $35.1M | -35% |
| Q3 2025 | $65.9M | -12% |
| Q2 2025 | $18.2M | -13% |
| Q1 2025 | $17.9M | -62% |
| Q4 2024 | $54M | +43% |
ALRM generated $191M in free cash flow over the past year, up 23% from the year before.
ALRM Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +0.1% | +58K shares |
| 1 year | -4.2% | -2.5M shares |
| 3 years | +2.2% | +1.2M shares |
| 5 years | +8% | +4.1M shares |
| Available history | +11% | +5.7M shares |
ALRM has 56M diluted shares, down 4.2% from a year ago, with $78M in buybacks over the past year.
| Quarter | Spent |
|---|---|
| Q3 2026 | $13.4M |
| Q2 2026 | $25M |
| Q1 2026 | $20M |
| Q4 2025 | $19.1M |
| Q3 2025 | $12.3M |
| Q2 2025 | $5.1M |
| Q1 2025 | $5.1M |
| Q4 2024 | — |
ALRM spent $78M buying back its own shares over the past year, about three times what it spent the year before.
ALRM Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | -3.0x | Net Cash |
| Q2 2026 | -2.8x | Net Cash |
| Q1 2026 | -3.0x | Net Cash |
| Q4 2025 | -5.8x | Net Cash |
| Q3 2025 | -6.7x | Net Cash |
| Q2 2025 | -6.6x | Net Cash |
| Q1 2025 | -8.0x | Net Cash |
| Q4 2024 | -8.9x | Net Cash |
ALRM has more cash than debt.
ALRM Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 74.2 | Overbought |
| Stochastic | 80.3 | Overbought |
ALRM's weekly RSI is 74 (overbought) and its Stochastic is 80 (overbought).
ALRM PE vs Technology Sector
| Metric | ALRM | Sector median | Relative |
|---|---|---|---|
| PE | 29x | 28x | 5% above |
| PE % | 31 | 35 | 4 pts below |
ALRM is trading at 29x earnings, in line with the Technology sector's median of 28x.
ALRM Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $60.2 | 10% above |
| 20 week MA | $56.8 | 17% above |
| 50 week MA | $51.1 | 30% above |
| 100 week MA | $53.5 | 24% above |
| 200 week MA | $56.2 | 18% above |
ALRM has climbed back above all five of its weekly moving averages, and it's now 18% above its 200-week average.
ALRM Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $42.8 | $98.9 | +131% |
| 2021 | $98.9 | $82.8 | -16% |
| 2022 | $82.8 | $49.0 | -41% |
| 2023 | $49.0 | $64.6 | +32% |
| 2024 | $64.6 | $62.1 | -3.9% |
| 2025 | $62.1 | $51.8 | -17% |
| 2026 YTD | $51.8 | $66.4 | +28% |
ALRM's yearly returns have swung widely, from +131% in 2020 to −41% in 2022. It's up 28% so far in 2026.