Smart property technology provider Alarm.com (NASDAQ:ALRM) reported Q3 CY2025 results topping the market’s revenue expectations , with sales up 6.6% year on year to $256.4 million. Its non-GAAP profit of $0.76 per share was 24.3% above analysts’ consensus estimates.
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Revenue: $256.4 million vs analyst estimates of $251 million (6.6% year-on-year growth, 2.2% beat)
Adjusted EPS: $0.76 vs analyst estimates of $0.61 (24.3% beat)
Adjusted Operating Income: $52.8 million vs analyst estimates of $37.18 million (20.6% margin, 42% beat)
Management raised its full-year Adjusted EPS guidance to $2.53 at the midpoint, a 5.4% increase
Operating Margin: 14.4%, in line with the same quarter last year
Billings: $257.1 million at quarter end, up 6.4% year on year
Market Capitalization: $2.48 billion
Alarm.com’s third quarter results were well received by the market, reflecting broad-based growth and operational execution. Management pointed to robust performance in the company’s energy segment and growing momentum in commercial video and access control solutions as key contributors. CEO Stephen Trundle highlighted the impact of new video product launches and platform enhancements, particularly those leveraging artificial intelligence, which have driven greater adoption and customer engagement. Trundle noted, “Our unified commercial solutions are winning in the market due to the ease of managing these complex systems through a single integrated interface.”
Looking ahead, Alarm.com’s raised profit guidance is underpinned by expectations of continued SaaS (software-as-a-service) growth, durable demand for energy management solutions, and increased platform adoption across both residential and commercial markets. Management emphasized the lasting tailwinds from electrification trends, data center expansion, and the company’s expanding AI-driven product suite. CFO Kevin Bradley cautioned that seasonal factors and hardware margin fluctuations could create some short-term variability but stated, “We are complementing organic reinvestment with some margin expansion.” The company remains focused on balancing reinvestment in growth initiatives with improving operating efficiency.
Management attributed the quarter’s performance to strength in growth initiatives, particularly in energy and commercial solutions, as well as successful new product launches and expanded AI capabilities.
