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Alarm.com Q3 results beat estimates on product expansion

By Reuters News


Overview

  • US connected property platform's Q3 SaaS and license revenue rose 9% yr/yr

  • Q3 adjusted EPS beat analyst expectations

  • Adjusted EBITDA for Q3 beat analyst expectations


Outlook

  • Alarm.com sees Q4 SaaS and license revenue at $194.6 mln to $194.8 mln

  • Alarm.com raises 2026 SaaS and license revenue guidance to $756.1 mln-$756.3 mln

  • Company expects 2026 total revenue of $1.1011 bln to $1.1113 bln


Result Drivers

  • PRODUCT EXPANSION - Co introduced new video doorbell and indoor cameras, broadening product portfolio for service providers

  • AI VIDEO FEATURES - Co released AI-powered video clip summaries to provide more informative notifications for subscribers


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted EPS

Beat

$0.90

$0.75 (6 Analysts)

Q3 EPS

$0.66

Q3 Net Income

$34.30 mln

Q3 Adjusted EBITDA

Beat

$66.20 mln

$57.87 mln (5 Analysts)

Q3 Operating Expenses

$142.92 mln

Q3 Operating income

$43.85 mln

Q3 Pretax Profit

$46.70 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy"

  • Wall Street's median 12-month price target for Alarm.com Holdings, Inc. is $62.50, about 8% below its November 4 closing price of $67.96

  • The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 19 three months ago


Reuters Recommended Reads

  • Nov 3 - Payments platform Block's Q3 profit beats estimates

  • Nov 3 - Fiserv Q3 adjusted EPS beats, revenue slightly tops estimates

  • Nov 3 - Varonis Q3 revenue rises 17%, beats analyst expectations


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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