Alarm.com Holdings, Inc.

SaaS and license revenue was approximately $188.8 million in Q2 2026, up 11.1% year over year. Hardware and other revenue totaled approximately $89 million, up 5.5% year over year. Adjusted EBITDA was $57.7 million, up 15.7% year over year, and adjusted EBITDA margin was 20.8%, about 115 basis points higher than a year ago. GAAP net income attributable to common stockholders was approximately $24.2 million, or $0.48 per diluted share, versus approximately $34.6 million a year ago; the decline was mainly due to lower interest income after retirement of $500 million of convertible notes in January. Non-GAAP adjusted net income was $41.1 million, or $0.77 per diluted share, up 17% and 24% year over year, respectively. Free cash flow was $37 million, cash on the balance sheet was $479.4 million, and the company repurchased about 570 thousand shares for $25 million. For Q3 2026, SaaS and license revenue is expected to be between $189.8 million and $190 million. For full-year 2026, SaaS and license revenue guidance was raised to $754 million to $754.4 million, total revenue to $1.079 billion to $1.089 billion, adjusted EBITDA to $221 million to $223 million, and adjusted EPS to $2.92 to $2.94. Management said the full-year outlook implies about 9.4% SaaS and license revenue growth at the midpoint and keeps the company on a path toward a 21% adjusted EBITDA margin exiting 2027.

Steve Trundle said the quarter exceeded expectations and reflected broad-based execution across the business. He emphasized strength in residential retention, enterprise video deployments, EnergyHub’s utility programs, and the international business crossing 1 million active subscriber accounts. He also highlighted the launch of the commercial fire communicator as a new long-term opportunity and pointed to security and life-safety use cases as evidence of the business’s durability.

Kevin Bradley said Q2 outperformance flowed through the financials, with SaaS and license revenue up 11.1%, hardware revenue up 5.5%, and adjusted EBITDA up 15.7% to $57.7 million. He noted 95% revenue retention for the third consecutive quarter, 180 basis points of year-over-year expansion in hardware gross margin, and that hardware gross profit funded just over 70% of sales and marketing costs in the quarter. He also cited $37 million of free cash flow, $479.4 million of cash, $25 million of buybacks, and reiterated a full-year expectation of 90% adjusted EBITDA-to-free-cash-flow conversion.

Analysts focused on EnergyHub’s growth trajectory, the new commercial fire communicator, international subscriber momentum, and capital allocation. Management said EnergyHub is benefiting from a rising market driven by grid variability and electrification, with penetration still around 2% of the North American TAM, and said commercial fire could be a meaningful long-term opportunity but will take time to scale through the service-provider channel. On capital allocation, Kevin Bradley said the company remains active in buybacks, at least to offset stock-based compensation, while Steve Trundle said M&A is continuously evaluated but there was nothing to announce.