Key Highlights

● Second-quarter SaaS and licence Revenue rose 11.1% to $188.8 million.

● Total revenue was $277.7 million, up 9.2%, with adjusted EBITDA of $57.7 million.

● Full-year SaaS and licence revenue is guided to $754.0 million to $754.4 million.

● Cash fell to $479.4 million after a $500.0 million convertible note repayment in January.

Raised outlook with second-quarter results

Alarm.com Holdings, Inc. (NASDAQ:ALRM) published its second-quarter 2026 results on 6 August, and those results came with a higher full-year outlook. That outlook is the company's most recent formal guidance.

Second-quarter results

For the quarter ended 30 June 2026, SaaS and licence revenue was $188.8 million, up 11.1% from $170.0 million. Total revenue was $277.7 million, up 9.2% from $254.3 million, so hardware and other revenue grew more slowly than the recurring software line. SaaS and licence revenue is the subscription-style portion of the Business and is the line management emphasises in its guidance.

Profit measures were mixed. GAAP Net Income fell to $24.2 million from $34.2 million, while non-GAAP adjusted net income per diluted share rose to $0.77 from $0.62. Adjusted EBITDA increased to $57.7 million from $49.9 million. The company's own release does not break out Buybacks for the quarter alone, but shows $45.0 million of treasury stock purchases in the first six months of 2026.

Balance sheet and Capital allocation

Cash and cash equivalents were $479.4 million at 30 June, compared with $960.6 million at 31 December 2025, a fall of about $481 million, which is close to the size of the repayment. The decline mainly reflects, as the release explains, repayment of $500.0 million of convertible notes in January 2026, which also helps explain lower interest income and the year-on-year fall in GAAP net income that management described on its first-quarter call.

That call, held in May, also covered a board authorisation to repurchase up to $150 million of stock over two years. Management said it was changing its non-GAAP definitions to exclude mark-to-market movements on treasury Equity holdings, which lowered the recast 2025 adjusted EBITDA to $201.3 million from the $206.0 million previously reported.

Guidance and operating pressures

Alarm.com guided to third-quarter SaaS and licence revenue of $189.8 million to $190.0 million. For 2026 it now expects SaaS and licence revenue of $754.0 million to $754.4 million, total revenue of $1.0790 billion to $1.0894 billion, and adjusted EBITDA of $221.0 million to $223.0 million. It also guided to non-GAAP adjusted net income of $156.0 million to $157.0 million, or $2.92 to $2.94 per diluted share. These are management forecasts, not reported figures.

The first-quarter commentary flagged several pressures. Management cited higher memory costs linked to artificial intelligence chip Demand and said it expected to raise prices on memory-based products, without yet knowing the effect on demand. It also referred to a February 2026 Supreme Court ruling on tariffs and planned to lower pass-through fees, trimming second-half pass-through revenue by about $5 million versus its prior outlook. Those remarks were made ahead of the second-quarter release and are dated context.

Alarm.com cash use, hardware costs and SaaS growth

Points to monitor include whether SaaS and licence growth holds near the guided level, how hardware margins respond to component costs and pricing, and how cash is deployed after the convertible repayment. The changed non-GAAP definitions also affect comparisons with earlier periods.