Alarm.com (ALRM) investor relations material

Executive summary

• SaaS and license revenue grew 10.8–11% year-over-year to $181.5 million in Q1 2026, with total revenue up 11% to $265.2 million.

• GAAP net income declined to $23.4–$23.6 million from $27.7–$28.0 million year-over-year.

• Non-GAAP adjusted EBITDA increased to $49.6 million from $45.8 million year-over-year.

• SaaS and license revenue renewal rate remained strong at 95% for the trailing twelve months.

• Commercial, energy, and residential segments all contributed to growth, with AI-driven solutions gaining traction.

Financial highlights

• Total revenue was $265.2 million, up 11% year-over-year; hardware and other revenue totaled $83.7 million, up 11.5–12%.

• Cash and cash equivalents at quarter-end were $497.4 million, down from $960.6 million at year-end 2025, mainly due to $500 million convertible note repayment.

• Operating cash flow for Q1 2026 was $50.6 million, up from $24.1 million year-over-year; non-GAAP free cash flow was $49.7 million.

• Non-GAAP adjusted net income was $34.7 million, up from $32.2 million year-over-year.

• Gross margin was 66% for Q1 2026.

Outlook and guidance

• Q2 2026 SaaS and license revenue expected between $185.5 million and $185.7 million.

• Full-year 2026 SaaS and license revenue guidance raised to $749.5–$750.5 million; total revenue expected between $1.0595 billion and $1.0705 billion.

• Non-GAAP Adjusted EBITDA for 2026 raised to $215–$216 million, with a 20.2% margin.

• Non-GAAP adjusted net income projected at $151.5–$152 million, or $2.81–$2.82 per diluted share.

• Capital expenditures for the remainder of 2026 projected between $7.0 million and $10.0 million.