What Alarm.com’s latest results mean for investors
Alarm.com Holdings (ALRM) just reported second quarter 2026 earnings, with revenue of US$277.73 million and net income of US$24.25 million, alongside a higher full year revenue outlook and ongoing product expansion.
For the six month period to June 30, 2026, revenue was US$542.93 million and net income was US$47.83 million. Basic earnings per share from continuing operations were US$0.97, while diluted earnings per share were US$0.95.
See our latest analysis for Alarm.com Holdings.
Alarm.com Holdings’ latest report comes after a period where the share price has risen 10.72% over the past 30 days and 18.26% over 90 days, while the 1-year total shareholder return of 3.59% contrasts with weaker 3 and 5 year total shareholder returns, suggesting recent momentum has improved compared with the longer term.
If the latest earnings beat and raised guidance have you reassessing opportunities in connected technology, it can be useful to scan the wider market for similar growth stories using our screener for 55 AI infrastructure stocks
Alarm.com Holdings shares have already moved sharply on the earnings surprise and higher outlook. The real question now is whether today’s valuation still leaves enough room to buy, or if patience for a better entry makes more sense.
Most Popular Narrative: 4.6% Undervalued
Alarm.com Holdings last closed at $56.29, compared with a most-widely-followed fair value estimate of $59 based on discounted future cash flows and earnings power.
The asset-light recurring software model, combined with a diversified revenue base (commercial, energy, international now ~30% of SaaS), is contributing to operating leverage and durable margin growth, evidenced by improving EBITDA and FCF generation.
Want to see how this recurring revenue mix translates into that fair value? The narrative focuses on steady expansion in margins and earnings without extreme growth bets.
Result: Fair Value of $59 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, Alarm.com Holdings still faces risks around tariff related hardware costs and a slower U.S. housing market, which could pressure margins and the subscriber growth assumptions that underpin the narrative.
Find out about the key risks to this Alarm.com Holdings narrative.
Next Steps
With mixed signals on valuation, growth and risks for Alarm.com Holdings, it makes sense to move quickly and test the data yourself. To weigh up both sides of the story in one place, check the 3 key rewards and 1 important warning sign
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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