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Alarm.com Holdings 2025 Q2 Earnings Strong Performance as Net Income Rises 5.2%
Generated by AI AgentAinvest Earnings Report Digest
Friday, Aug 8, 2025 5:21 pm ET2min read
Aime SummaryAlarm.com Holdings (ALRM) reported its fiscal 2025 Q2 earnings on August 8, 2025. The company exceeded expectations with solid revenue growth and improved profitability. Alarm.com Holdings raised its guidance for full-year 2025, reflecting confidence in its SaaS and license revenue momentum and strong balance sheet liquidity.
Revenue
Driven by robust demand across its service portfolio, Alarm.com Holdings generated $254.31 million in total revenue during the quarter, representing an 8.8% year-over-year increase. SaaS and license revenue, the company’s core growth driver, surged to $169.99 million, while hardware and other revenue contributed an additional $84.31 million. The performance highlights the company’s ongoing shift toward higher-margin recurring revenue streams.
Earnings/Net Income
Alarm.com Holdings delivered a 3.0% increase in earnings per share (EPS) to $0.69, and net income rose to $34.22 million in Q2 2025, up 5.2% from the same quarter in the prior year. The sustained profitability over 12 consecutive years underscores the company’s resilient business model.
Price Action
The stock of Alarm.com Holdings has experienced downward pressure recently, with a 3.14% drop during the latest trading day, a 0.53% decline over the full trading week, and a 4.75% decrease month-to-date.
Post-Earnings Price Action Review
A strategy of buying Alarm.com Holdings shares following its Q2 earnings report and holding for 30 days has historically underperformed. Over the past three years, the approach yielded a compound annual growth rate (CAGR) of -9.16%, with a maximum drawdown of 0.00% and a Sharpe ratio of -0.29. This suggests high risk with poor returns, as the strategy lagged significantly behind the benchmark, which delivered a 47.91% return, resulting in an excess return of -72.69%.
CEO Commentary
Tyson’s Virginia-based CEO highlighted the company’s robust Q2 performance, driven by a 9.0% year-over-year increase in SaaS and license revenue to $170.0 million. He also noted a 13.0% rise in non-GAAP adjusted EBITDA to $48.4 million, attributing this to recent product innovations such as OpenEye’s AI-powered video analytics and the T25 smart thermostat. The CEO expressed confidence in delivering on 2025 guidance and emphasized the company’s strong balance sheet and resilient business model.
Guidance
Looking ahead, Alarm.com Holdings expects Q3 2025 SaaS and license revenue to range between $171.4 million and $171.6 million. For full-year 2025, the company forecasts SaaS and license revenue of $681.0 million to $681.4 million, with total revenue projected between $990.0 million and $996.4 million. Non-GAAP adjusted EBITDA is expected to reach $195.0 million to $196.5 million, and non-GAAP adjusted net income is forecasted to be $136.0 million to $136.5 million, or $2.40 per diluted share.
Additional News
Global attention remains focused on evolving diplomatic and geopolitical developments. In the Americas, Donald Trump ordered the U.S. Census to exclude undocumented immigrants and nominated a key economic adviser to the Federal Reserve Board. Meanwhile, Portugal extended its national wildfire alert, and the EU’s pharmaceutical industry braced for U.S. tariff impacts. In Asia-Pacific, India pushed back after import levies were doubled, and Cambodia and Thailand signed a ceasefire agreement. In the Middle East, divisions over a Gaza plan intensified, and the UN issued urgent warnings against potential Israeli occupation of the region. In Africa, Ghana’s political landscape shifted after a tragic helicopter crash, and several nations are turning to gold for economic stability.
Revenue
Driven by robust demand across its service portfolio, Alarm.com Holdings generated $254.31 million in total revenue during the quarter, representing an 8.8% year-over-year increase. SaaS and license revenue, the company’s core growth driver, surged to $169.99 million, while hardware and other revenue contributed an additional $84.31 million. The performance highlights the company’s ongoing shift toward higher-margin recurring revenue streams.
Earnings/Net Income
Alarm.com Holdings delivered a 3.0% increase in earnings per share (EPS) to $0.69, and net income rose to $34.22 million in Q2 2025, up 5.2% from the same quarter in the prior year. The sustained profitability over 12 consecutive years underscores the company’s resilient business model.
Price Action
The stock of Alarm.com Holdings has experienced downward pressure recently, with a 3.14% drop during the latest trading day, a 0.53% decline over the full trading week, and a 4.75% decrease month-to-date.
Post-Earnings Price Action Review
A strategy of buying Alarm.com Holdings shares following its Q2 earnings report and holding for 30 days has historically underperformed. Over the past three years, the approach yielded a compound annual growth rate (CAGR) of -9.16%, with a maximum drawdown of 0.00% and a Sharpe ratio of -0.29. This suggests high risk with poor returns, as the strategy lagged significantly behind the benchmark, which delivered a 47.91% return, resulting in an excess return of -72.69%.
CEO Commentary
Tyson’s Virginia-based CEO highlighted the company’s robust Q2 performance, driven by a 9.0% year-over-year increase in SaaS and license revenue to $170.0 million. He also noted a 13.0% rise in non-GAAP adjusted EBITDA to $48.4 million, attributing this to recent product innovations such as OpenEye’s AI-powered video analytics and the T25 smart thermostat. The CEO expressed confidence in delivering on 2025 guidance and emphasized the company’s strong balance sheet and resilient business model.
Guidance
Looking ahead, Alarm.com Holdings expects Q3 2025 SaaS and license revenue to range between $171.4 million and $171.6 million. For full-year 2025, the company forecasts SaaS and license revenue of $681.0 million to $681.4 million, with total revenue projected between $990.0 million and $996.4 million. Non-GAAP adjusted EBITDA is expected to reach $195.0 million to $196.5 million, and non-GAAP adjusted net income is forecasted to be $136.0 million to $136.5 million, or $2.40 per diluted share.
Additional News
Global attention remains focused on evolving diplomatic and geopolitical developments. In the Americas, Donald Trump ordered the U.S. Census to exclude undocumented immigrants and nominated a key economic adviser to the Federal Reserve Board. Meanwhile, Portugal extended its national wildfire alert, and the EU’s pharmaceutical industry braced for U.S. tariff impacts. In Asia-Pacific, India pushed back after import levies were doubled, and Cambodia and Thailand signed a ceasefire agreement. In the Middle East, divisions over a Gaza plan intensified, and the UN issued urgent warnings against potential Israeli occupation of the region. In Africa, Ghana’s political landscape shifted after a tragic helicopter crash, and several nations are turning to gold for economic stability.
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