Alarm.com Q3 results beat estimates on product expansion
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
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(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.)