Alarm.com Holdings, Inc. (ALRM) · Nov 5, 2026 · Earnings

earnings beat as SaaS guidance rises

Beat — Adj. diluted EPS $0.90 vs ~$0.75 consensus; revenue $279.4M vs ~$265.8M

earnings beat expectations, while higher SaaS guidance and stronger cash generation reinforce its connected-property expansion.

is building a recurring-revenue connected-property platform that extends beyond alarms into video, access control, automation and AI-powered monitoring. This quarter shows that expansion translating into better operating performance, not just a broader product menu.

The quarter cleared the market’s bar by a meaningful margin. Total revenue reached $279.4 million versus published expectations of roughly $265.8 million, while adjusted diluted EPS was $0.90 versus roughly $0.75 consensus.

Q3 2026Q3 2025Consensus / prior guidance
Total revenue (Income Statement)$279.4M (+9.0%)$256.4M~$265.8M
Adj. diluted EPS (Non-GAAP EPS reconciliation)$0.90 (+26.8%)$0.71~$0.75
SaaS and license revenue (Income Statement)$191.2M (+9.0%)$175.4M
Nine-month free cash flow (Free Cash Flow reconciliation)$156.3M (+53.2%)$102.0M
FY2026 SaaS and license guidance (Financial outlook)$756.1M–$756.3M$744.0M prior midpoint

The recurring-revenue engine is holding up better than the headline earnings alone suggests. SaaS and license revenue grew 9% year over year to $191.2 million, and the company raised its full-year SaaS and license outlook by $12.2 million at the midpoint.

Cash generation strengthened materially, giving the expansion more funding capacity. Nine-month operating cash flow rose to $167.6 million from $117.4 million, while free cash flow increased to $156.3 million from $102.0 million. The balance sheet is lighter on cash after repaying the $500 million zero-coupon notes, but that decline was primarily a planned debt settlement rather than operating deterioration.

The product and acquisition moves support the same platform strategy rather than changing it. CellGate adds a recurring access-control business and established fence-and-gate distribution, while new cameras and AI Video Clip Summaries broaden ’s ability to monetize video and intelligence across existing service-provider channels. The strategic additions are useful, but the larger surprise in this filing is that management raised the outlook while delivering a clear quarterly beat.

Bottom line: This was a genuine step forward for the existing story: execution beat expectations, recurring revenue guidance moved higher, and cash generation improved. The filing strengthens ’s expansion narrative without rewriting it.

What to watch next

Q4 2026 results, expected February 2027

Original filing on SEC EDGAR

More Alarm.com Holdings, Inc. news

earnings beat as SaaS guidance rises | ALRM Stock News
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