Alarm.com (NASDAQ:ALRM) Posts Better-Than-Expected Sales In Q3

Smart spot exertion supplier Alarm.com (NASDAQ:ALRM) announced better-than-expected gross successful Q3 CY2025, with income up 6.6% twelvemonth connected twelvemonth to $256.4 million. Its non-GAAP nett of $0.76 per stock was 24.3% supra analysts’ statement estimates.

Is present the clip to bargain Alarm.com? Find retired successful our afloat probe report.

• Revenue: $256.4 cardinal vs expert estimates of $251 cardinal (6.6% year-on-year growth, 2.2% beat)

• Adjusted EPS: $0.76 vs expert estimates of $0.61 (24.3% beat)

• Adjusted EBITDA: $59.16 cardinal vs expert estimates of $50.46 cardinal (23.1% margin, 17.2% beat)

• Management raised its full-year Adjusted EPS guidance to $2.53 astatine the midpoint, a 5.4% increase

• Operating Margin: 14.4%, successful enactment with the aforesaid 4th past year

• Free Cash Flow Margin: 25.7%, up from 7.1% successful the erstwhile quarter

• Billings: $257.1 cardinal astatine 4th end, up 6.4% twelvemonth connected year

• Market Capitalization: $2.38 billion

Processing implicit 325 cardinal information points annually from much than 150 cardinal connected devices, Alarm.com (NASDAQ:ALRM) provides cloud-based platforms that alteration residential and commercialized spot owners to remotely show and power their security, video, energy, and different connected devices.

Reviewing a company’s semipermanent income show reveals insights into its quality. Any concern tin enactment up a bully 4th oregon two, but galore enduring ones turn for years. Over the past 5 years, Alarm.com grew its income astatine a 10.8% compounded yearly maturation rate. Although this maturation is acceptable connected an implicit basis, it fell abbreviated of our standards for the bundle sector, which enjoys a fig of secular tailwinds.

We astatine StockStory spot the astir accent connected semipermanent growth, but wrong software, a half-decade humanities presumption whitethorn miss caller innovations oregon disruptive manufacture trends. Alarm.com’s caller show shows its request has slowed arsenic its annualized gross maturation of 7.2% implicit the past 2 years was beneath its five-year trend.

This quarter, Alarm.com reported year-on-year gross maturation of 6.6%, and its $256.4 cardinal of gross exceeded Wall Street’s estimates by 2.2%.

Looking ahead, sell-side analysts expect gross to turn 3.1% implicit the adjacent 12 months, a deceleration versus the past 2 years. This projection doesn't excite america and implies its products and services volition spot immoderate request headwinds.

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