Alarm.com Holdings, Inc. (ALRM) · Nov 5, 2026 · Earnings
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 2026 | Q3 2025 | Consensus / 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.
Q4 2026 results, expected February 2027
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