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Earnings analysis · 10-Q

ALRM earnings analysis

Filed May 7, 2026 · Our reading of the company's report

The latest report

Alarm.com reported strong Q1 2026 results, with total revenue rising 11% year-over-year to $265.2 million and EPS increasing to $0.65, surpassing estimates. The company also raised its full-year revenue guidance by $6…

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Alarm.com reported strong Q1 2026 results, with total revenue rising 11% year-over-year to $265.2 million and EPS increasing to $0.65, surpassing estimates. The company also raised its full-year revenue guidance by $6 million, reflecting positive momentum in its SaaS and hardware segments despite facing notable macroeconomic challenges.

Read the original on SEC.gov

Gross and operating margin

How much of each revenue dollar the business keeps.

66% Gross margin Operating margin May 2020 May 2026

One point per quarterly or annual filing. Both margins are shares of that report's revenue.

From revenue to operating profit

Where each $100 of revenue went in this report.

Of every $100 of revenue Cost of sales $34 Operating expenses $54 Left as operating profit $12

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

Where revenue came from

The business segments reported by the company.

SaaS and License Revenue 68.4% Hardware and Other Revenue 31.6%

Shares of the segments disclosed in this filing, largest first.

How we read each report

Our analysis across the last few reports.

Read as bullish Read as bearish May 2020 May 2026

Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.

Reported figures

Earnings per share
$0.65

What stood out

  • Q1 Revenue Growth

    Total revenue increased by 11% year-over-year to $265.2 million, up from $238.8 million in Q1 2025.

  • EPS Surpasses Estimates

    Reported EPS of $0.65 exceeded analyst expectations of $0.58.

  • SaaS Revenue Growth

    SaaS and license revenue grew 11% to $181.5 million during Q1 2026 from $163.8 million in Q1 2025.

  • Free Cash Flow Improvement

    Operating cash flow improved substantially to $50.6 million from $24.1 million in the prior year.

  • Raised Full-Year Guidance

    Increased revenue guidance by $6 million, now between $1.0595 billion and $1.0705 billion.

  • Segment Performance Strength

    Hardware revenue rose 12%, contributing $83.7 million of the total revenue share.

What to watch

  • Decline in Net Income

    Net income decreased to $23.4 million in Q1 2026, down from $27.7 million in Q1 2025.

  • Increased Costs

    Cost of SaaS and license revenue increased by 29% to $27.9 million, impacting profit margins.

  • Market Conditions Uncertainty

    The ongoing macroeconomic conditions could negatively affect future sales and revenue.

Management's outlook

Management raised full-year revenue guidance by $6 million during the earnings call.

Earlier filings 4

10-K · February 19, 2026

Alarm.com reports continued multi-year growth with total revenue of $1.0112 billion in 2025 and SaaS & license revenue of $689.4 million (10.1% CAGR). Profitability expanded (net income attributable to common…

10-Q · August 7, 2025

Alarm.com reported Q2 revenue of $254.308M, up $20.501M (+8.8%) vs Q2 2024, with operating income improving to $32.022M (+24.3%) and diluted EPS of $0.63 (vs $0.62). Gross margin remained healthy at 65.6% and operating…

10-Q · November 7, 2024

Alarm.com reported a strong Q3 with revenue of $240,497,000 (up $18,643,000 vs $221,854,000 in Q3 2023) and materially higher profitability: operating income rose to $33,194,000 from $16,171,000 a year earlier and…

10-K · February 22, 2024

Alarm.com reports continued revenue and SaaS growth with total revenue of $881.7M in 2023 and SaaS & license revenue of $569.2M (CAGR 11.2% since 2021). Profitability strengthened (net income attributable to common…

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.