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Sep 30
Alarm.com Q3 2025 Earnings Report
Alarm.com reported its third quarter 2025 financial results, with total revenue increasing by 6.6% and non-GAAP adjusted EBITDA rising by 18.4% compared to the third quarter of 2024.
Key Takeaways
Alarm.com delivered a solid performance in the third quarter of 2025, with total revenue reaching $256.4 million, a 6.6% increase year-over-year. SaaS and license revenue, a key segment, grew by 10.1% to $175.4 million. The company also saw a significant improvement in profitability, with non-GAAP adjusted EBITDA increasing by 18.4% to $59.2 million and non-GAAP adjusted net income attributable to common stockholders rising by 20.6% to $42.4 million.
Total revenue for Q3 2025 increased by 6.6% to $256.4 million, up from $240.5 million in Q3 2024.
SaaS and license revenue grew by 10.1% to $175.4 million, compared to $159.3 million in the prior year's quarter.
Non-GAAP adjusted EBITDA saw an 18.4% increase, reaching $59.2 million, up from $50.0 million in Q3 2024.
Non-GAAP adjusted net income attributable to common stockholders increased by 20.6% to $42.4 million, or $0.76 per diluted share.
Alarm.com
Alarm.com
Alarm.com Revenue by Segment
Revenue by Segment
SaaS and license Revenue
CapyFin.comHardware and other Revenue
CapyFin.com Forward Guidance
Alarm.com provided an optimistic outlook for the fourth quarter and increased its full-year 2025 guidance for SaaS and license revenue, total revenue, non-GAAP adjusted EBITDA, and non-GAAP adjusted net income attributable to common stockholders.
Positive Outlook
- SaaS and license revenue for Q4 2025 is expected to be in the range of $176.0 million to $176.2 million.
- Full-year 2025 SaaS and license revenue guidance increased to $685.2 million to $685.4 million, up $4.1 million from previous guidance.
- Total revenue for full-year 2025 is expected to be $1.00 billion.
- Non-GAAP adjusted EBITDA for full-year 2025 is projected to be $199.0 million.
- Non-GAAP adjusted net income attributable to common stockholders for full-year 2025 is expected to be $140.5 million, or $2.53 per diluted share.
Challenges Ahead
- No specific negative forward guidance was provided in the report.
- The guidance is forward-looking and actual results may differ materially due to various risks.
- Macroeconomic conditions, including global economic uncertainty, geopolitical upheaval, and inflation, could impact demand.
- The company's ability to retain service provider partners and subscribers, and manage growth, could affect future results.
- Increased competition and evolving technologies pose ongoing challenges to the company's performance.