Alarm.com Holdings (ALRM) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Alarm.com Holdings

NasdaqGS•Technology•Software - Application

$55.24+0.25(<0.01%)Market open

Market Cap

$2.68B

P/E

22.8x

P/S

2.5x

P/B

3.1x

Alarm.com Holdings, Inc. operates a platform for connected properties in North America and internationally. It operates in two segments, Alarm.com and Other. The company offers residential solutions, such as alarm transmission, smart signal, smart arming, and personal safety and awareness, as well as real-time alerts and always-on monitoring; video monitoring solutions, including video analytics, remote video monitoring, AI deterrence, video doorbell, intelligent integration, and cell connector; scenes, video analytics triggers, smart thermostat schedules, responsive savings, precision comfort, HVAC monitoring service, places feature, whole home water safety solution, and energy usage and solar monitoring solution. It also provides clean energy software and services SaaS platform; commercial grade video solutions, commercial video analytics, smarter access control, enterprise dashboard and multi-site management, connected fleet solution, energy savings, proactive protection for valuables and inventory, temperature monitoring, daily safeguard, and professionally supported and low cost of ownership solutions. In addition, the company offers OpenEye software comprising video surveillance as a service, cameras, recorders, and other peripherals designed for video applications; forensic video search, point-of sale system integration, customer site mapping, and large-scale camera deployments enterprise-level requirements; shooter detection systems; service provider portal, service dashboard, installation and support service provider solutions; and AI-powered enhancements to professional monitoring and false alarm reduction. Further, it provides business management services; sales, marketing, training services; and home builder program hardware and services. The company was founded in 2000 and is headquartered in Tysons, Virginia.

How this company scores

GoodMetricSide Score: 69/100

Strongest: Cash & Earnings Quality (23/25); weakest: Profitability (12/25).

Profitability12/25

Growth14/25

Balance Sheet & Red Flags20/25

Cash & Earnings Quality23/25

Strengths

Interest easily coveredCash-backed earningsConsistent free cash flowConsistent growth

No red flags in the last 8 quarters.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 22.8x5y range 16.5x – 64.3x

Currently below its 20-quarter median.

P/S · 2.5x5y range 2.0x – 3.7x

Currently near its 20-quarter median.

P/B · 3.1x5y range 2.4x – 4.8x

Price & Volume

Market Cap $2.68B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $1.06B
Q. Revenue: $277.73M
TTM EBITDA: $170.41M
TTM Op. Income: $136.10M
Q. Op. Income: $32.48M
TTM Net Income: $117.29M
Q. Net Income: $24.21M
EPS: $0.49
Shares Out.: $49.33M

$1.06B in TTM revenue grew 8.7% YoY, reaching $277.73M last quarter. TTM EBITDA of $170.41M and TTM operating income of $136.10M show growth is flowing through to the bottom line. TTM net income of $117.29M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin: 14.9%
Op. Margin: 11.7%
Net Margin: 8.7%

Op. margin of 11.7% is down 0.9% YoY — costs are rising relative to revenue. Net margin at 8.7% Across the last 8 quarters, operating margin has fallen for 3 consecutive quarters — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 22.8x
P/S Ratio: 2.5x
P/B Ratio: 3.1x

At 22.8x P/E, the stock trades within typical market levels. P/S of 2.5x and P/B of 3.1x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is up 4% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $1.66B
Cash: $479.42M
Long-Term Debt: $491.09M
Book Value: $864.46M
D/E Ratio: 0.6
Debt/EBITDA: 11.8

With $1.66B in assets and $491.09M in long-term debt, D/E is 0.6and book value is $864.46M — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has fallen for 7 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $41.89M
TTM Free Cash Flow: $187.71M
FCF Margin: 17.7%
FCF / Net Income: 1.6

TTM FCF of $187.71M on $41.89M in operating cash flow. The FCF / Net Income ratio of 1.6x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 2 consecutive quarters — an improving trend.