AI-extracted from the 10-Q filed 2026-08-06 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
SaaS and license revenue grew 11% to $188.8M; total revenue increased 9% to $277.7M, but net income fell 29% to $24.2M due to higher legal costs and lower interest income.
Biggest Revenue Drivers
SaaS and license revenue$188.8M+11% YoY
Growth in subscriber base, including revenue impact from subscribers added in 2025, plus increased sales of energy management and demand response solutions from acquisition of RGS.
Biggest Revenue Drivers
Total revenue: $277.7M+9% YoY
SaaS and license revenue$188.8M+11% YoY
Growth in subscriber base, including revenue impact from subscribers added in 2025, plus increased sales of energy management and demand response solutions from acquisition of RGS.
Largest Expense Items
Research and development$71.0M+3% YoY
Increases in personnel and related costs plus external consultant expenses from acquisitions of BTR and RGS, partially offset by decreased Alarm.com segment costs.
General and administrative$36.6M+35% YoY
Increased legal costs related to intellectual property legal matters and increased personnel costs, partially offset by decreased provision for credit losses.
Sales and marketing$33.0M+6% YoY
Increased personnel and related costs for sales teams in the Other segment, partially offset by decreased marketing conference costs in Alarm.com segment.
Cost of SaaS and license revenue$29.9M+26% YoY
Increased amounts paid to wireless network providers and distributed energy resource providers due to growth in subscriber base and energy management solutions.
Margins: Gross margin remained flat at 66% of revenue. Operating margin declined to 12% from 13% YoY, primarily due to a $9.2M increase in intellectual property litigation costs and higher cost of SaaS and license revenue as a percentage of that revenue segment (16% vs 14% prior year).
Watch Items from the Filing
Ten largest service provider partners represented 42% of revenue for H1 2026 vs 46% prior year; one service provider partner individually represented 15-20% of revenue.
EcoFactor patent infringement lawsuit ongoing; SkyBell filed July 2025 for trade secret misappropriation and added copyright infringement allegations May 2026; loss not probable or estimable at this time.
Tariff refunds: company filed for ~$14.5M in IEEPA tariff refunds in Q2 2026; recorded less than one-third and processed commensurate customer refunds; no additional receivables recorded due to recovery probability uncertainty.
Cash decreased from $960.6M (Dec 31, 2025) to $479.4M (June 30, 2026) primarily due to $500M repayment of 2026 convertible notes in January 2026; company repurchased $45M in stock during H1 2026.
Alarm.com segment represents 87% of revenue but is in investment phase; Other segment (13% of revenue) incurred operating losses, with significant R&D and sales costs from recent acquisitions (RGS, BTR, CHeKT).
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
McAdam Timothy PReporting ownerGrant or award · Jun 4, 2026
Clarke Donald EReporting ownerGrant or award · Jun 4, 2026
Nevin Darius GReporting ownerGrant or award · Jun 4, 2026
Whall Timothy J.Reporting ownerGrant or award · Jun 4, 2026
About Alarm.com Holdings, Inc. (ALRM): stock profile, AI score and financials
Alarm.com Holdings, Inc. (ALRM) stock profile, AI quality score, and SEC EDGAR financial data, a Technology sector company. 13F Pro's AI-powered ranking engine scores ALRM at 57.0/100 on a composite quality score built from its SEC filings, placing it at rank #1,114 of 2,925 stocks — the top half of the AI-ranked universe. Areas of concern include institutional flow (30.4), which score below median versus the broader universe. Shareholder dilution risk is elevated at 30.1/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), Alarm.com Holdings, Inc. reports quarterly revenue of $277.7M, net income of $24.2M, an operating margin of 11.7%. Top institutional holders of ALRM by reported 13-F value include BlackRock, VANGUARD PORTFOLIO MANAGEMENT, DISCIPLINED GROWTH INVESTORS, based on the most recent SEC filings. ALRM trades on the Nasdaq exchange and files with the SEC under CIK 1459200. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate ALRM daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Alarm.com Holdings, Inc. directly from SEC EDGAR.