Alarm.com (NASDAQ:ALRM) Shares Gap Up After Better-Than-Expected Earnings

Shares of Alarm.com Holdings, Inc. (NASDAQ:ALRM) gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $45.20, but opened at $47.07. Alarm.com shares last traded at $45.4640, with a volume of 77,872 shares trading hands.

The software maker reported $0.72 earnings per share for the quarter, topping analysts’ consensus estimates of $0.66 by $0.06. The firm had revenue of $261.66 million during the quarter, compared to analyst estimates of $250.75 million. Alarm.com had a net margin of 13.11% and a return on equity of 15.04%. Alarm.com’s revenue for the quarter was up 8.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.58 earnings per share. Alarm.com has set its FY 2026 guidance at 2.780-2.790 EPS.

More Alarm.com News

Here are the key news stories impacting Alarm.com this week:

• Positive Sentiment: Q4 results beat consensus — EPS $0.72 vs. $0.66 expected and revenue $261.7M vs. ~$250.8M expected; SaaS & license revenue grew ~8.8% year-over-year. Alarm.com Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Company raised FY2026 guidance to $2.780–2.790 EPS and ~ $1.1B revenue vs. street ~ $2.47 EPS / ~$1.0B — a material upward revision that supports higher valuation multiples. Alarm.com Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Market writeups emphasize the beat and rally — headlines note the stock “soars” after results, reinforcing the positive sentiment and likely driving intraday buying. Alarm.com (NASDAQ:ALRM) beats Q4 CY2025 sales expectations, stock soars
• Neutral Sentiment: Earnings-call highlights and full transcripts available for detail on product mix, churn and margin drivers — useful for fundamental follow-up but mostly confirmatory. Alarm.com Holdings Inc (ALRM) Q4 2025 Earnings Call Highlights Earnings Call Transcript
• Neutral Sentiment: Short‑interest entries for February in the feed show zero/NaN values and an effectively 0.0 days ratio — the data appears erroneous and is unlikely to be driving moves.
• Negative Sentiment: JPMorgan lowered expectations for ALRM’s stock price — an analyst note that could restrain upside or prompt profit-taking despite the upbeat quarter. JPMorgan Chase & Co. Has Lowered Expectations for Alarm.com (NASDAQ:ALRM) Stock Price

Analyst Ratings Changes

A number of research analysts have recently commented on the company. Zacks Research downgraded Alarm.com from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 12th. JPMorgan Chase & Co. decreased their price target on shares of Alarm.com from $55.00 to $40.00 and set an “underweight” rating on the stock in a research note on Wednesday. Barclays lowered their price objective on shares of Alarm.com from $56.00 to $50.00 and set an “equal weight” rating for the company in a research report on Friday. Finally, Weiss Ratings restated a “hold (c-)” rating on shares of Alarm.com in a report on Tuesday, January 27th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $57.00.

Insider Buying and Selling at Alarm.com

In other news, insider Jeffrey A. Bedell sold 22,727 shares of the firm’s stock in a transaction dated Tuesday, December 16th. The shares were sold at an average price of $51.82, for a total value of $1,177,713.14. Following the completion of the sale, the insider owned 505,805 shares in the company, valued at approximately $26,210,815.10. This trade represents a 4.30% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Stephen C. Evans sold 1,154 shares of the company’s stock in a transaction dated Friday, December 12th. The shares were sold at an average price of $52.27, for a total transaction of $60,319.58. Following the transaction, the director owned 6,123 shares in the company, valued at $320,049.21. The trade was a 15.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 26,154 shares of company stock worth $1,357,388. Insiders own 5.80% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of ALRM. Invesco Ltd. lifted its stake in shares of Alarm.com by 8.6% during the 4th quarter. Invesco Ltd. now owns 243,828 shares of the software maker’s stock worth $12,440,000 after acquiring an additional 19,228 shares during the last quarter. EP Wealth Advisors LLC purchased a new stake in Alarm.com in the fourth quarter worth $241,000. Mackenzie Financial Corp lifted its position in shares of Alarm.com by 34.3% during the fourth quarter. Mackenzie Financial Corp now owns 42,044 shares of the software maker’s stock worth $2,172,000 after purchasing an additional 10,727 shares during the last quarter. NewEdge Advisors LLC lifted its position in shares of Alarm.com by 960.9% during the fourth quarter. NewEdge Advisors LLC now owns 14,174 shares of the software maker’s stock worth $723,000 after purchasing an additional 12,838 shares during the last quarter. Finally, XTX Topco Ltd boosted its stake in shares of Alarm.com by 266.3% during the fourth quarter. XTX Topco Ltd now owns 31,209 shares of the software maker’s stock valued at $1,592,000 after purchasing an additional 22,689 shares during the period. Institutional investors own 91.74% of the company’s stock.

Alarm.com Trading Up 0.9%

The stock has a market capitalization of $2.27 billion, a P/E ratio of 18.53, a PEG ratio of 1.66 and a beta of 0.79. The stock’s fifty day moving average price is $49.65 and its 200 day moving average price is $51.85. The company has a debt-to-equity ratio of 0.59, a current ratio of 2.06 and a quick ratio of 1.92.

About Alarm.com

Alarm.com Holdings, Inc provides a cloud-based software platform for connected properties, enabling residential and commercial customers to monitor, manage and control security, energy and home automation solutions. The company’s interactive services connect security systems, smart thermostats, door locks, lights and video cameras through cellular, broadband and Z-Wave networks, offering real-time alerts and remote access via mobile and web applications.

Through its platform, Alarm.com delivers an integrated suite of products that includes intrusion detection, video monitoring and cloud recording, energy management features such as smart thermostat scheduling, and home automation controls for lighting, garage doors and connected appliances.