Alarm.com Reports Second Quarter 2025 Results

Alarm.com Holdings, Inc., a leading platform for intelligently connected properties, has released its financial results for the second quarter of 2025. The company has shown growth in several key financial metrics, reflecting its strong market position and operational efficiency.

Financial Highlights

For the second quarter of 2025, Alarm.com reported a 9.0% increase in SaaS and license revenue, reaching $170.0 million compared to $155.9 million in the same period of 2024. Total revenue for the quarter was $254.3 million, an 8.8% increase from $233.8 million in the second quarter of 2024. GAAP net income rose by 5.2% to $34.2 million, while non-GAAP adjusted EBITDA saw a 13.0% increase to $48.4 million.

Business and Operational Highlights

Alarm.com’s commercial video surveillance subsidiary, OpenEye, introduced new AI-driven video analytics capabilities, enhancing video investigations with advanced search tools. Additionally, the company launched the T25 smart thermostat, which features a streamlined design and broad HVAC system compatibility, integrating seamlessly with the Alarm.com platform.

Strategic Initiatives and Corporate Developments

The company’s balance sheet shows a total cash and cash equivalents of $1.02 billion as of June 30, 2025, down from $1.22 billion as of December 31, 2024. For the six months ended June 30, 2025, cash flows from operating activities were $46.8 million, compared to $72.8 million for the same period in 2024. Non-GAAP free cash flow for the first half of 2025 was $36.1 million, down from $67.8 million in the first half of 2024.

Management's Perspective

Alarm.com’s management highlighted the company’s continued growth in SaaS and license revenue and the successful launch of new products as key drivers of their strong performance. They emphasized the importance of their technological advancements and strategic initiatives in maintaining their market leadership.

Future Outlook

Looking ahead, Alarm.com expects SaaS and license revenue for the third quarter of 2025 to be in the range of $171.4 million to $171.6 million. For the full year 2025, the company has increased its guidance, projecting SaaS and license revenue between $681.0 million and $681.4 million, and total revenue between $990.0 million and $996.4 million. Non-GAAP adjusted EBITDA for the full year is expected to be in the range of $195.0 million to $196.5 million.

SEC Filing: Alarm.com Holdings, Inc. [ ALRM ] - 8-K - Aug. 07, 2025