Alarm.com Raises FY25 Revenue, EBITDA Guidance

Alarm.com has raised its FY25 revenue outlook to $990M-$996.4M, up from a previous view of $975.8M-$991.2M, and its adjusted EBITDA outlook to $195M-$196.5M, up from $190M-$193M. This surpasses the consensus revenue estimate of $985.77M.

Alarm.com Holdings (ALRM) has significantly upgraded its fiscal year 2025 (FY25) revenue and adjusted EBITDA outlook. The company has revised its revenue forecast to a range of $990 million to $996.4 million, up from the previous estimate of $975.8 million to $991.2 million [1]. Additionally, the adjusted EBITDA outlook has been increased to $195 million to $196.5 million, up from $190 million to $193 million.

These revisions surpass the consensus revenue estimate of $985.77 million, indicating a robust performance and positive outlook for the company. The upgrades come on the heels of the company's strong second-quarter earnings report, where it beat the Zacks Consensus Estimate by 15.38% and posted revenues of $254.31 million, a 4.00% increase over the year-ago quarter [1].

The company's ability to consistently exceed earnings and revenue estimates has been a notable trend over the last four quarters. This performance suggests that Alarm.com is well-positioned to meet its new financial targets. However, the sustainability of these numbers will depend on how management addresses the market's expectations and the broader industry trends.

Investors should keep an eye on the company's earnings call and future earnings expectations to gauge the immediate impact on the stock's price movement. The Zacks Rank currently holds the stock at a #3 (Hold) rating, suggesting that the shares are expected to perform in line with the market in the near future. The company's industry rank remains strong, with the Security and Safety Services sector in the top 28% of Zacks-ranked industries [1].

In comparison, another company in the same industry, SoundThinking (SSTI), is expected to report a quarterly loss of $0.09 per share and revenues of $26.32 million for the quarter ended June 2025, marking a 2.4% decrease from the year-ago quarter [1]. This provides a contrasting performance metric within the same sector.

As investors consider Alarm.com Holdings, they should weigh the company's recent upgrades against the broader market trends and industry dynamics. The updated financial outlook indicates a positive trajectory, but the actual performance will depend on how the company executes its plans and responds to market conditions.

References:
[1] https://www.nasdaq.com/articles/alarmcom-holdings-alrm-q2-earnings-and-revenues-surpass-estimates