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Sep 30, 2025
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.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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