Highlights

  • Second quarter revenue rose 9% to $277.7 million, while SaaS and license revenue increased 11% to $188.8 million.
  • GAAP net income fell to $24.2 million, or $0.48 per diluted share, from $34.2 million, or $0.63.
  • Non-GAAP adjusted EBITDA increased to $57.7 million from $49.9 million, and the twelve-month SaaS renewal rate reached 95%.
  • The company repaid $500.0 million of convertible notes in January and adopted a $150.0 million repurchase program in May.

Alarm.com (NASDAQ:ALRM) shares were trading near their 52-week high at USD 59.26 on October 21, 2026, up 0.99%. The connected property platform repaid $500.0 million of convertible notes in January, adopted a new $150.0 million repurchase program in May, and reported second quarter results in a quarterly filing on August 6.

Based in Tysons, Virginia, Alarm.com is a Delaware corporation that calls itself the leading platform for intelligently connected properties. Its cloud platform offers Internet of Things solutions spanning security, video, energy management, access control, grid management and emergency response for residential and commercial properties. It sells mainly through service provider partners that resell its services and pay monthly fees. It reports two segments: Alarm.com, its core platform business, and Other, which develops automation and energy management offerings in adjacent markets. Its fiscal year ends December 31.

Revenue Growth, Lower Profit and Higher Legal Costs

Revenue for the three months ended June 30, 2026 was $277.7 million, up from $254.3 million. SaaS and license revenue, 68% of the total, rose $18.8 million. In the Alarm.com segment it grew on a larger subscriber base, while the Other segment added $10.0 million on energy management and demand response sales, including the Resideo Grid Services business acquired by its EnergyHub unit in November 2025. Hardware and other revenue rose 6% to $89.0 million.

Operating income was $32.5 million, compared with $32.0 million. Net income fell to $24.2 million from $34.2 million, and diluted earnings per share were $0.48 versus $0.63. Interest income dropped to $4.5 million from $11.8 million, other expense widened, and general and administrative expense rose to $36.6 million from $27.1 million. For six months, the filing ties a $9.2 million increase in legal costs to intellectual property matters. The tax provision was $7.7 million versus $5.5 million.

Six-month revenue was $542.9 million, up 10%, with net income of $47.6 million versus $61.9 million. Cash from operations was $92.5 million versus $46.8 million. Non-GAAP adjusted EBITDA for the six months was $107.3 million, compared with $95.7 million. The company's ten largest partners and distributors made up 42% of revenue, down from 46%.

Notes Repaid, Buybacks and Pending Litigation

Cash and equivalents were $479.4 million at June 30, 2026, versus $960.6 million at December 31, 2025, after the company paid $500.0 million at maturity on its zero-coupon convertible notes on January 14. The $500.0 million of 2.25% convertible senior notes due June 1, 2029 remain outstanding. In the second quarter the company paid $14.1 million to maintain its 24.7% stake in SafeStreets USA, an equity-method investment.

The board adopted a new repurchase program on May 4, 2026, authorizing up to $150.0 million of common stock through May 4, 2028, and canceled the balance of the prior program. The company repurchased 570,000 shares for $25.0 million in the quarter and 998,065 shares for $45.0 million in the first half. It has not paid dividends and does not anticipate doing so.

Two patent and trade secret suits remain open. EcoFactor, which sued in January 2022, seeks an injunction and damages, but the case is stayed while patent office proceedings continue, and three of the asserted patents were found unpatentable in reexamination. SkyBell sued in July 2025 over video doorbell trade secrets and added copyright claims in May 2026, with discovery expected to finish in September 2026 and no trial date set. The company says it has valid defenses and has determined a loss is neither probable nor reasonably estimable.

Outlook and Stated Expectations

The quarterly filing contains no revenue or earnings guidance. It says second-half 2026 capital expenditures are expected between $5.0 million and $8.0 million, mainly for software, equipment and office buildout, and that the company expects to keep investing in sales and marketing. It also cautions that results for the period may not indicate full-year 2026 performance given macroeconomic uncertainty, including tariffs and supply chain disruption. These are management expectations.