Alarm.com (ALRM) Q2 2026 earnings summary

Executive summary

• SaaS and license revenue grew 11.1% year-over-year to $188.8 million in Q2 2026, with total revenue up 9.2% to $277.7 million, driven by subscriber growth and energy management solutions.

• Adjusted EBITDA rose to $57.7 million, reflecting operational strength, while GAAP net income declined to $24.2 million due to higher operating and legal costs.

• Commercial business, especially OpenEye, and EnergyHub utility programs were key growth drivers, with international business surpassing 1 million active subscribers.

• Notable product launches included a new Commercial Fire Solution and expanded remote video monitoring capabilities.

• EnergyHub platform supported 304 demand response events, shifting 17.5 GWh of load during July heat wave.

Financial highlights

• SaaS and license revenue reached $188.8 million, up 11.1% year-over-year, accounting for 68% of total revenue; hardware and other revenue totaled $89 million, up 5.5%.

• Adjusted EBITDA grew 15.7% year-over-year to $57.7 million, with a margin of 20.8%.

• GAAP net income was $24.2 million ($0.48 per diluted share), down from $34.6 million a year ago.

• Non-GAAP adjusted net income rose 17% to $41.1 million ($0.77 per diluted share, up 24%).

• Cash and cash equivalents stood at $479.4 million as of June 30, 2026, down from $960.6 million at year-end due to $500 million convertible note repayment.

Outlook and guidance

• Q3 2026 SaaS and license revenue expected between $189.8M and $190M; full-year 2026 SaaS and license revenue outlook raised to $754M–$754.4M.

• Total 2026 revenue outlook increased to $1.079B–$1.0894B, with hardware revenue guidance up by $15M.

• Non-GAAP adjusted EBITDA for 2026 raised to $221M–$223M; adjusted net income projected at $156M–$157M ($2.92–$2.94 per diluted share).

• Non-GAAP tax rate for 2026 projected at 21%; stock-based compensation expense expected at $34M–$35M.

• Management expects continued volatility due to macroeconomic conditions, including supply chain disruptions, inflation, and tariffs.