Alarm.com Holdings, Inc 10-Q for FY2025 Q1

Alarm.com Holdings, Inc. (ALRM)

10-Q 2025-05-09 For: 2025-03-31

Added on April 07, 2026

About this 10-Q

Alarm.com Holdings, Inc filed this 10-Q on May 9, 2025, covering the quarter ended March 31, 2025 (FY2025 Q1).

Headline figures

Quarter ended March 31, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $238.82M; up 7.0% from $223.28M a year earlier
Net income: $27.71M; up 18.4% from net income of $23.4M a year earlier
Diluted EPS: $0.52; up 18.2% from $0.44 a year earlier

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			Page
PART I. FINANCIAL INFORMATION			2
Item 1. Financial Statements (Unaudited)			2
Condensed Consolidated Statements of Operations			2
Condensed Consolidated Statements of Comprehensive Income			3
Condensed Consolidated Balance Sheets			4
Condensed Consolidated Statements of Cash Flows			5
Condensed Consolidated Statements of Equity			6
Notes to the Condensed Consolidated Financial Statements			7
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			29
Item 3. Quantitative and Qualitative Disclosures About Market Risk			47
Item 4. Controls and Procedures			47
PART II. OTHER INFORMATION			49
Item 1. Legal Proceedings			49
Item 1A. Risk Factors			50
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			80
Item 3. Defaults Upon Senior Securities			80
Item 4. Mine Safety Disclosures			80
Item 5. Other Information			81
Item 6. Exhibits			82
Signature			83


	Three Months Ended March 31,
	2025		2024
Revenue:
SaaS and license revenue	$	163,800	$	150,344
Hardware and other revenue	75,022		72,939
Total revenue	238,822		223,283
Cost of revenue(1):
Cost of SaaS and license revenue	21,568		20,428
Cost of hardware and other revenue	56,666		56,087
Total cost of revenue	78,234		76,515
Operating expenses:
Sales and marketing	28,549		25,454
General and administrative	27,001		29,296
Research and development	68,367		65,956
Amortization and depreciation	7,024		7,337
Total operating expenses	130,941		128,043
Operating income	29,647		18,725
Interest expense	(4,314)		(796)
Interest income	12,371		8,540
Other expense, net	(2,685)		(318)
Income before income taxes	35,019		26,151
Provision for income taxes	7,307		2,747
Net income	27,712		23,404
Net loss attributable to redeemable noncontrolling interests	238		191
Net income attributable to common stockholders	$	27,950	$	23,595

Per share information attributable to common stockholders:
Net income attributable to common stockholders per share:
Basic	$	0.56	$	0.47
Diluted	$	0.52	$	0.44
Weighted average common shares outstanding:
Basic	49,659,741		49,963,265
Diluted	60,077,247		55,047,087


	Three Months Ended March 31,
	2025		2024
Net income	$	27,712	$	23,404
Other comprehensive income / (loss)
Foreign currency translation adjustment	829		(147)
Total other comprehensive income / (loss)	829		(147)
Comprehensive income	28,541		23,257
Comprehensive loss attributable to redeemable noncontrolling interests	238		191
Comprehensive income attributable to common stockholders	$	28,779	$	23,448


	March 31, 2025		December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	1,186,195	$	1,220,701

Accounts receivable, net of allowance for credit losses of $4,721 and $3,870, and net of allowance for product returns of $1,999 and $2,448 as of March 31, 2025 and December 31, 2024, respectively	118,757		126,082
Inventory	90,136		87,435
Other current assets, net	57,662		47,374
Total current assets	1,452,750		1,481,592
Property and equipment, net	68,661		63,205
Intangible assets, net	70,126		63,159
Goodwill	178,193		154,211
Deferred tax assets	188,387		181,284
Operating lease right-of-use assets	55,260		53,425
Other assets, net of allowance for credit losses of $1 as of March 31, 2025 and December 31, 2024	64,054		41,332
Total assets	$	2,077,431	$	2,038,208
Liabilities, redeemable noncontrolling interests and stockholders’ equity
Current liabilities:
Accounts payable, accrued expenses and other current liabilities	$	136,152	$	139,427
Accrued compensation	21,381		28,739
Deferred revenue	13,927		12,940
Convertible senior notes, net	497,475		—
Operating lease liabilities	8,493		7,700
Total current liabilities	677,428		188,806
Deferred revenue	13,597		13,619
Convertible senior notes, net, noncurrent	487,500		983,477

Operating lease liabilities	69,908		65,534
Other liabilities	16,810		15,479
Total liabilities	1,265,243		1,266,915
Commitments and contingencies (Note 12)
Redeemable noncontrolling interests	52,585		44,747
Stockholders’ equity
Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding as of March 31, 2025 and December 31, 2024	—		—
Common stock, $0.01 par value, 300,000,000 shares authorized; 52,903,810 and 52,756,077 shares issued; and 49,679,679 and 49,618,346 shares outstanding as of March 31, 2025 and December 31, 2024, respectively	529		528
Additional paid-in capital	530,528		521,192
Treasury stock, at cost; 3,224,131 and 3,137,731 shares as of March 31, 2025 and December 31, 2024, respectively	(191,350)		(186,291)
Accumulated other comprehensive income	1,644		815
Retained earnings	418,252		390,302
Total stockholders’ equity	759,603		726,546
Total liabilities, redeemable noncontrolling interests and stockholders’ equity	$	2,077,431	$	2,038,208


	Three Months Ended March 31,
Cash flows from operating activities:	2025		2024
Net income	$	27,712	$	23,404
Adjustments to reconcile net income to net cash flows from operating activities:
Provision for credit losses on accounts receivable	977		254
Reserve for product returns	425		1,149
Provision for credit losses on notes receivable	—		3,998

Amortization on patents and tooling	178		220
Amortization and depreciation	7,024		7,337
Amortization of debt issuance costs	1,498		790
Amortization of operating leases	3,903		2,976
Deferred income taxes	(8,791)		(13,443)
Change in fair value of contingent liability	(301)		31
Stock-based compensation	9,458		11,268
Loss from investments in unconsolidated entities	2,313		—

Changes in operating assets and liabilities (net of business acquisitions):
Accounts receivable	6,283		826
Inventory	(1,859)		10,382
Other current and non-current assets	(8,768)		(962)
Accounts payable and other current liabilities	(12,749)		4,524
Deferred revenue	965		1,327
Operating lease liabilities	(3,474)		(3,221)
Other liabilities	(737)		(1,007)
Cash flows from operating activities	24,057		49,853
Cash flows used in investing activities:
Business acquisition, net of cash acquired	(23,412)		—
Additions to property and equipment	(6,115)		(3,066)
Issuances of notes receivable	(21,500)		(500)
Receipt of payments on notes receivable	29		13
Capitalized software development costs	(408)		(408)
Purchase of investment in unconsolidated entities	(3,773)		—

Cash flows used in investing activities	(55,179)		(3,961)
Cash flows (used in) / from financing activities:




Purchases of treasury stock, including transaction costs	(5,059)		—



Issuances of common stock from equity-based plans	1,583		6,356
Cash flows (used in) / from financing activities	(3,476)		6,356
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(118)		(180)
Net (decrease) / increase in cash, cash equivalents and restricted cash	(34,716)		52,068
Cash, cash equivalents and restricted cash at beginning of the period	1,229,132		701,079
Cash, cash equivalents and restricted cash at end of the period	$	1,194,416	$	753,147

Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	1,186,195	$	747,877
Restricted cash included in other current assets and other assets	8,221		5,270
Total cash, cash equivalents and restricted cash	$	1,194,416	$	753,147


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Redeemable Noncontrolling Interests		Common Stock		Additional Paid-In Capital			Treasury Stock			Accumulated Other Comprehensive Income		Retained Earnings		Total Stockholders’ Equity
				Shares			Amount			Shares							Amount
Balance as of December 31, 2023	$	36,308		51,889	$	519		$	531,734	2,021	$	(111,291)	$	1,398	$	266,186		$	688,546
Common stock issued in connection with equity-based plans	—			224	2			6,354		—	—		—		—			6,356

Stock-based compensation expense	—			—	—			11,339		—	—		—		—			11,339

Accretion adjustments of redeemable noncontrolling interest to redemption value	1,595			—	—			(1,595)		—	—		—		—			(1,595)
Net income / (loss) attributable to common stockholders	(191)			—	—			—		—	—		—		23,595			23,595
Other comprehensive income	—			—	—			—		—	—		(147)		—			(147)
Balance as of March 31, 2024	$	37,712		52,113	$	521		$	547,832	2,021	$	(111,291)	$	1,251	$	289,781		$	728,094


	Three Months Ended March 31, 2025				Three Months Ended March 31, 2024
	Alarm.com and Certain Subsidiaries		All Other Subsidiaries		Alarm.com and Certain Subsidiaries		All Other Subsidiaries
Beginning of period balance	$	(3,777)	$	(93)	$	(3,723)	$	(141)
(Provision for) / recovery of expected credit losses	(946)		(31)		(287)		33
Write-offs	123		3		44		20
End of period balance	$	(4,600)	$	(121)	$	(3,966)	$	(88)


	March 31, 2025		December 31, 2024
Raw materials	$	20,918	$	23,881
Work-in-process	613		595
Finished goods	68,605		62,959
Total inventory	$	90,136	$	87,435


	February 10, 2025
Calculation of Purchase Consideration:
Cash paid, net of working capital adjustment	$	23,386
Holdback consideration	3,700
Total consideration	$	27,086
Estimated Tangible and Intangible Net Assets:
Cash	$	195
Accounts receivable	308
Inventory	645
Other current assets	4


Customer relationships	486
Developed technology	9,412
Trade names	814
Accounts payable	(150)
Accrued expenses and other current liabilities	(272)
Deferred tax liability	(1,583)

Redeemable noncontrolling interest	(6,352)
Goodwill	23,579
Total estimated tangible and intangible net assets	$	27,086


	Alarm.com		Other		Total
Balance as of January 1, 2025	$	154,211	$	—	$	154,211
Goodwill acquired	23,579		—		23,579

Foreign currency translation adjustment	403		—		403
Balance as of March 31, 2025	$	178,193	$	—	$	178,193


	Customer Relationships		Developed Technology		Trade Name		Capitalized Software Development Costs		Other		Total
Balance as of January 1, 2025	$	29,625	$	30,543	$	500	$	2,445	$	46	$	63,159
Intangible assets acquired	486		9,412		814		—		—		10,712
Capitalized software development costs	—		—		—		431		—		431
Amortization	(2,003)		(2,055)		(44)		(74)		—		(4,176)
Balance as of March 31, 2025	$	28,108	$	37,900	$	1,270	$	2,802	$	46	$	70,126


	March 31, 2025
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value		Weighted- Average Remaining Life (in years)
Customer relationships	$	128,766	$	(100,658)	$	28,108	5.0
Developed technology	80,728		(42,828)		37,900		5.5
Trade name	5,288		(4,018)		1,270		5.3
Capitalized software development costs	3,111		(309)		2,802		3.8
Other	46		—		46		5.0
Total intangible assets	$	217,939	$	(147,813)	$	70,126	5.2


	December 31, 2024
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value		Weighted- Average Remaining Life (in years)
Customer relationships	$	128,280	$	(98,655)	$	29,625	5.3
Developed technology	71,316		(40,773)		30,543		4.0
Trade name	4,474		(3,974)		500		2.9
Capitalized software development costs	2,680		(235)		2,445		3.7
Other	46		—		46		5.0
Total intangible assets	$	206,796	$	(143,637)	$	63,159	4.6


Year Ended December 31,	Operating Leases(1)
Remainder of 2025	$	10,237
2026	13,038
2027	13,234
2028	12,643
2029	12,177
2030 and thereafter	48,566
Total lease payments	109,895
Less: imputed interest(2)	31,494
Present value of lease liabilities	$	78,401


	March 31, 2025
Loan Receivables:	2025		2024		2023		2022		2021		Prior		Total
Current	$	21,500	$	500	$	134	$	1,500	$	—	$	976	$	24,610
30-59 days past due	—		—		—		—		—		—		—
60-89 days past due	—		—		—		—		—		—		—
90-119 days past due	—		—		—		—		—		—		—
120+ days past due	—		—		—		—		—		—		—
Total	$	21,500	$	500	$	134	$	1,500	$	—	$	976	$	24,610


	Fair Value Measurements on a Recurring Basis
Assets:	Level 1		Level 2		Level 3		Total
Money market accounts as of March 31, 2025	$	1,175,836	$	—	$	—	$	1,175,836
Money market accounts as of December 31, 2024	1,209,474		—		—		$	1,209,474
Equity securities with readily determinable fair value as of March 31, 2025	8,910		—		—		$	8,910
Equity securities with readily determinable fair value as of December 31, 2024	7,425		—		—		$	7,425

Liabilities:
Contingent consideration liability from acquisition as of March 31, 2025	$	—	$	—	$	1,868	$	1,868
Contingent consideration liability from acquisition as of December 31, 2024	—		—		2,169		2,169


	March 31, 2025		December 31, 2024

Holdback liability from business combinations and asset acquisitions	$	3,000	$	200
Contingent consideration liability from acquisition	—		953
Other liabilities	13,810		14,326
Other liabilities	$	16,810	$	15,479


	March 31, 2025		December 31, 2024
Principal	$	500,000	$	500,000

Unamortized debt issuance costs	(2,525)		(3,319)
Net carrying amount	$	497,475	$	496,681


	Three Months Ended March 31,
Numerator:	2025		2024
Net income	$	27,712	$	23,404
Net loss attributable to redeemable noncontrolling interests	238		191
Net income attributable to common stockholders - basic (A)	27,950		23,595
Add back total interest expense, net of tax, attributable to convertible senior notes	3,245		594
Net income attributable to common stockholders - diluted (B)	$	31,195	$	24,189
Denominator:
Weighted average common shares outstanding — basic (C)	49,659,741		49,963,265
Dilutive effect of convertible senior notes, stock options and restricted stock units	10,417,506		5,083,822
Weighted average common shares outstanding — diluted (D)	60,077,247		55,047,087
Net income attributable to common stockholders per share:
Basic (A/C)	$	0.56	$	0.47
Diluted (B/D)	$	0.52	$	0.44


	Three Months Ended March 31, 2025
	Alarm.com		Other		Intersegment Alarm.com		Intersegment Other		Total
SaaS and license revenue	$	147,647	$	16,153	$	—	$	—	$	163,800
Hardware and other revenue	74,050		1,889		(674)		(243)		75,022
Total revenue	221,697		18,042		(674)		(243)		238,822
Cost of SaaS and license revenue	16,784		4,784		83		(83)		21,568
Cost of hardware and other revenue	55,885		1,766		(658)		(327)		56,666
Total cost of revenue	72,669		6,550		(575)		(410)		78,234
Selling and marketing expense	22,467		6,082		—		—		28,549
General and administrative expense	24,837		2,164		—		—		27,001
Research and development expense	60,684		7,683		—		—		68,367
Amortization and depreciation expense	6,728		296		—		—		7,024
Total operating expenses	114,716		16,225		—		—		130,941
Operating income / (loss)	$	34,312	$	(4,733)	$	(99)	$	167	$	29,647
Assets	$	2,133,644	$	73,148	$	(129,250)	$	(111)	$	2,077,431

Reconciliation of operating income to income before income taxes
Operating income									$	29,647
Interest expense									(4,314)
Interest income									12,371
Other expense, net									(2,685)
Income before income taxes									$	35,019


	Three Months Ended March 31, 2024
	Alarm.com		Other		Intersegment Alarm.com		Intersegment Other		Total
SaaS and license revenue	$	137,859	$	12,485	$	—	$	—	$	150,344
Hardware and other revenue	72,364		1,398		(686)		(137)		72,939
Total revenue	210,223		13,883		(686)		(137)		223,283
Cost of SaaS and license revenue	16,458		3,933		104		(67)		20,428
Cost of hardware and other revenue	55,570		1,270		(655)		(98)		56,087
Total cost of revenue	72,028		5,203		(551)		(165)		76,515
Selling and marketing expense	20,410		5,044		—		—		25,454
General and administrative expense	28,285		1,011		—		—		29,296
Research and development expense	58,842		7,114		—		—		65,956
Amortization and depreciation expense	7,084		253		—		—		7,337
Total operating expenses	114,621		13,422		—		—		128,043
Operating income / (loss)	$	23,574	$	(4,742)	$	(135)	$	28	$	18,725
Assets	$	1,538,429	$	64,350	$	(115,786)	$	(11)	$	1,486,982

Reconciliation of operating income to income before income taxes
Operating income									$	18,725
Interest expense									(796)
Interest income									8,540
Other expense, net									(318)
Income before income taxes									$	26,151


	Three Months Ended March 31,
Stock-based compensation expense data:	2025		2024
Cost of hardware and other revenue	$	—	$	1
Sales and marketing	480		755
General and administrative	2,972		3,181
Research and development	6,006		7,331
Total stock-based compensation expense	$	9,458	$	11,268


	Three Months Ended March 31,				% Change
	2025		2024
Revenue
SaaS and license revenue	$	163,800	$	150,344	9	%
Hardware and other revenue	75,022		72,939		3
Total revenue	$	238,822	$	223,283	7	%


Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as a Part of a Publicly Announced Program	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program
January 1 to January 31, 2025	—	$	—	—	$	100,000,000
February 1 to February 28, 2025	—	—		—	100,000,000
March 1 to March 31, 2025	86,400	58.55		86,400	94,941,092
Total	86,400	$	58.55	86,400


Exhibit Number			Description
3.1(1)			Amended and Restated Certificate of Incorporation of Alarm.com Holdings, Inc.
3.2(2)			Amended and Restated Bylaws of Alarm.com Holdings, Inc.
1 0.1*			Fifteenth Amendment to Deed of Office Lease Agreement by and between Alarm.com Incorporated and TMG TMC 3, L.L.C., dated March 5 , 2025
31.1*			Certification of Chief Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*			Certification of Chief Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**			Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS			Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH*			Inline XBRL Taxonomy Extension Schema Document
101.CAL*			Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*			Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*			Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*			Inline XBRL Taxonomy Extension Presentation Linkbase Document
104*			Cover Page Interactive Data File - the cover page interactive data is embedded within the Inline XBRL document or included within the Exhibit 101 attachments


WITNESS/ATTEST:						LANDLORD:

/s/ Charlie Schwieger /s/ Charlie Schwieger						TMG TMC 3, L.L.C., a Delaware limited liability company By: /s/ Gary Block [SEAL] Name: Gary Block Title: Partner & CIO By: /s/ Mark King [SEAL] Name: Mark King Title: President & COO
						TENANT:

__________________________						ALARM.COM INCORPORATED, a Delaware corporation By: /s/ Dan Ramos [SEAL] Name: Dan Ramos Title: SVP


WITNESS/ATTEST:						LANDLORD:

_________________________ _________________________						TMG TMC 3, L.L.C., a Delaware limited liability company By: ___________________________[SEAL] Name: Gary Block Title: Partner & CIO By: ___________________________[SEAL] Name: Mark King Title: President & COO
						TENANT:

__________________________						ALARM.COM INCORPORATED, a Delaware corporation By: _____________________________[SEAL] Name: ___________________________ Title: ____________________________


Date:	May 9, 2025	/s/ Stephen Trundle
		Stephen Trundle
		Chief Executive Officer
		(Principal Executive Officer)


Date:	May 9, 2025	/s/ Kevin Bradley
		Kevin Bradley
		Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)