Alarm.com (ALRM) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 9% YoY to $279.4M; SaaS and license revenue increased 9% to $191.2M, and adjusted EBITDA reached $66.2M.

• Recurring revenue growth, retention and cash generation remained strong; FY2026 SaaS and license revenue and adjusted EBITDA guidance increased.

• CellGate added connected gate-access and video-intercom offerings; expected 2027 SaaS and license revenue is $15M–$20M.

Financial highlights

• Q3 total revenue was $279.4M vs. $256.4M; SaaS and license revenue was $191.2M vs. $175.4M, and hardware and other revenue was $88.3M vs. $81.0M.

• GAAP net income attributable to common stockholders was $34.4M, or $0.66 diluted EPS, vs. $35.3M, or $0.65; adjusted net income was $48.3M, or $0.90 diluted EPS, vs. $39.5M, or $0.71.

• Adjusted EBITDA grew 19.3% to $66.2M from $55.5M; adjusted EBITDA margin was 23.7%, up ~200 bps YoY, partly due to temporary tariff-related benefits.

• Gross profit increased 10.6% to $186.8M; hardware gross margin was 28.4%, up ~650 bps YoY, including ~$3.8M of temporary tariff-related cost recoveries.

• 9M revenue increased 10% to $822.4M; adjusted EBITDA was $173.5M vs. $151.2M, and GAAP net income attributable to common stockholders was $82.3M vs. $97.8M.

Outlook and guidance

• Q4 2026 SaaS and license revenue outlook is $194.6M–$194.8M, implying ~8% growth at the midpoint.

• FY2026 SaaS and license revenue guidance is $756.1M–$756.3M; total revenue is projected at $1.1011B–$1.1113B, including $345M–$355M of hardware and other revenue.

• FY2026 adjusted EBITDA guidance increased to $227M–$229M; adjusted net income is projected at $161.2M–$162.6M, or $3.02–$3.04 diluted EPS.

• Preliminary 2027 outlook: SaaS and license revenue $815M–$820M, total revenue $1.175B–$1.19B and adjusted EBITDA $240M–$245M, with ~20.5% margin at midpoint.

• A 2027 adjusted EBITDA margin near the 21% exit target depends on hardware margins, cost pass-throughs and reinvestment; formal guidance is expected with Q4 2026 results.