Key Highlights

  • Total Revenue rose 9.0 percent to $279.4 million in the third quarter of 2026.
  • SaaS and license revenue increased 9.0 percent to $191.2 million.
  • Non-GAAP adjusted EBITDA reached $66.2 million, compared with $55.5 million a year earlier.
  • Full-year 2026 SaaS and license revenue guidance was raised to about $756.2 million at the midpoint.

Alarm.com Holdings, Inc. (NASDAQ:ALRM), a platform for intelligently connected properties, reported financial results for the third quarter ended September 30, 2026. Total revenue increased 9.0 percent to $279.4 million from $256.4 million a year earlier. GAAP Net Income was $34.3 million, close to the $35.1 million reported in the prior-year quarter, while non-GAAP adjusted EBITDA rose to $66.2 million from $55.5 million. The company also provided a fourth quarter outlook for SaaS and license revenue and increased its full-year 2026 guidance.

Revenue Composition and Growth

SaaS and license revenue grew 9.0 percent to $191.2 million, compared with $175.4 million a year earlier. Because SaaS and license revenue makes up the bulk of the company's total revenue, the two growth rates moved in step. The Recurring Revenue base therefore accounted for most of the quarter's increase, which indicates that the company's subscription model drove the top-line result rather than one-time sales.

Total revenue of $279.4 million included categories outside SaaS and license, and those lines grew at a rate that kept total growth in line with the core business.

Profitability and Per-Share Measures

GAAP net income attributable to common stockholders was $34.4 million, or $0.66 per diluted share, compared with $35.3 million, or $0.65 per share, a year earlier. On a non-GAAP basis, adjusted net income attributable to common stockholders reached $48.3 million, or $0.90 per diluted share, up from $39.5 million and $0.71 per share.

The gap between the increase in adjusted EBITDA, which rose about 19 percent, and the slight decline in GAAP net income shows that expenses excluded from the non-GAAP measures absorbed a meaningful share of the company's operating activity during the period.

Full-Year Guidance and Balance Sheet

The company now expects full-year 2026 SaaS and license revenue of $756.1 million to $756.3 million, a range that sits $12.2 million above the midpoint of the guidance it issued in February 2026. The revision indicates that performance during the first nine months of the year was ahead of the earlier expectation, which management reflected in a higher full-year figure.

Total cash and cash equivalents stood at $534.7 million at the end of the quarter.

Final Takeaways

Alarm.com delivered steady revenue growth, a higher adjusted EBITDA figure and a raised full-year SaaS and license outlook, while GAAP net income was broadly unchanged from a year earlier. The results point to a recurring revenue model that continues to expand at a pace in line with prior expectations. The fourth quarter outlook and the final 2026 results will show whether the guidance increase is reflected in the full-year totals.