Form 8-K

8-K — Alarm.com Holdings, Inc.

Accession: 0001459200-26-000008

Filed: 2026-05-07

Period: 2026-05-07

CIK: 0001459200

SIC: 7372 (SERVICES-PREPACKAGED SOFTWARE)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — alrm-20260507.htm (Primary)

EX-99.1 — EXHIBIT 99.1 PRESS RELEASE DATED MAY 7, 2026 (ex991earningsreleasemarch3.htm)

XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K — 8-K ALARM.COM HOLDINGS, INC. PRESS RELEASE DATED MAY 7, 2026

8-K (Primary)

Filename: alrm-20260507.htm · Sequence: 1

alrm-20260507

false000145920000014592002026-05-072026-05-07

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 7, 2026

ALARM.COM HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Delaware 001-37461 26-4247032

(State or other jurisdiction

of incorporation) (Commission

File Number) (IRS Employer

Identification No.)

8281 Greensboro Drive Suite 100 Tysons Virginia

22102

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (877) 389-4033

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol Name of each exchange on which registered

Common Stock, $0.01 par value per share ALRM The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On May 7, 2026, Alarm.com Holdings, Inc. (the "Company") issued a press release (the "Press Release") announcing its financial results for the quarter ended March 31, 2026. A copy of the Press Release is furnished hereto as Exhibit 99.1 and is incorporated herein by reference.

The information in this Current Report on Form 8-K, including the Press Release attached as Exhibit 99.1 hereto, is furnished under Item 2.02 and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any of the Company's filings under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d)Exhibits

Exhibit No. Description

99.1

Press Release Dated May 7, 2026

104 Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Alarm.com Holdings, Inc.

Date: May 7, 2026

By:

/s/ Kevin Bradley

Kevin Bradley

Chief Financial Officer

EX-99.1 — EXHIBIT 99.1 PRESS RELEASE DATED MAY 7, 2026

EX-99.1

Filename: ex991earningsreleasemarch3.htm · Sequence: 2

Document

Exhibit 99.1

Alarm.com Reports First Quarter 2026 Results

-- SaaS and license revenue increased 10.8% to $181.5 million, compared to $163.8 million for the first quarter of 2025 --

-- GAAP net income was $23.4 million, compared to $27.7 million --

-- Non-GAAP adjusted EBITDA was $49.6 million, compared to $45.8 million --

TYSONS, VA., May 7, 2026 -- Alarm.com Holdings, Inc. (Nasdaq: ALRM), the leading platform for intelligently connected properties, today reported financial results for its first quarter ended March 31, 2026. Alarm.com also provided its financial outlook for SaaS and license revenue for the second quarter of 2026 and increased its guidance for the full year of 2026.

First Quarter 2026 Financial Results as Compared to First Quarter 2025

•SaaS and license revenue increased 10.8% to $181.5 million, compared to $163.8 million.

•Total revenue increased 11.0% to $265.2 million, compared to $238.8 million.

•GAAP net income was $23.4 million, compared to $27.7 million. GAAP net income attributable to common stockholders was $23.6 million, or $0.47 per diluted share, compared to $28.0 million, or $0.52 per diluted share.

•Non-GAAP adjusted EBITDA(*) was $49.6 million, compared to $45.8 million(^).

•Non-GAAP adjusted net income attributable to common stockholders(*) was $34.7 million, or $0.65 per diluted share, compared to $32.2 million(^), or $0.57 per diluted share(^).

Balance Sheet and Cash Flow

•Total cash and cash equivalents was $497.4 million as of March 31, 2026, compared to $960.6 million as of December 31, 2025. The decrease in cash and cash equivalents was primarily due to the payment and full settlement of the $500.0 million aggregate principal amount of the 0% convertible senior notes on January 14, 2026.

•For the three months ended March 31, 2026, cash flows from operating activities was $50.6 million, compared to $24.1 million for the three months ended March 31, 2025. For the three months ended March 31, 2026, non-GAAP free cash flow(*) was $49.7 million, compared to $17.9 million for the three months ended March 31, 2025.

(*) Reconciliations of the non-GAAP measures are set forth at the end of this press release.

(^) During the first quarter of 2026, the Company revised its definition of certain non-GAAP metrics to exclude gains and losses on investments with readily determinable fair value. Comparable information for the prior periods presented has been updated to conform to the current presentation. Further details are set forth at the end of this press release.

Recent Business Highlights

•OpenEye Adds New AI Capabilities to Improve Operational Intelligence: OpenEye, an Alarm.com subsidiary focused on enterprises, introduced AI Visual Check, a new set of AI-driven video analytics capabilities designed to automate monitoring of business operations, safety protocols and compliance across multiple locations. These capabilities provide proactive alerts when issues are detected, such as blocked fire exits, out-of-stock shelves or unattended security posts, reducing reliance on manual oversight and enabling faster resolution. AI Visual Check is designed to enhance OpenEye’s premium video offering and support more efficient, scalable operations for customers.

•Enhanced User Experience with Intelligent Automation Capabilities: Alarm.com introduced Automation Suggestions, which provides personalized, in-app recommendations for end user subscribers to discover and configure automation rules and schedules. A new HomeLink integration enables subscribers to trigger automation scenes directly from compatible vehicles. These new capabilities are expected to further simplify system configuration, drive user engagement and enable a seamless onboarding experience at installation.

•Launched Location Insights for Smarter Emergency Response: Alarm.com introduced Location Insights to provide subscribers with real-time visibility into whether household members are home, nearby or away during an alarm event. From the Alarm.com mobile app, subscribers can quickly assess the situation and cancel or verify the alarm, supporting faster emergency response and reducing unnecessary dispatches. Designed with privacy in mind, the app displays location data only during alarm events, and subscribers maintain full control over which devices share their location.

Financial Outlook

Alarm.com is providing its outlook for SaaS and license revenue for the second quarter of 2026 and increasing its guidance for the full year of 2026 based upon current management expectations.

For the second quarter of 2026:

•SaaS and license revenue is expected to be in the range of $185.5 million to $185.7 million.

For the full year of 2026:

•SaaS and license revenue is now expected to be in the range of $749.5 million to $750.5 million, up $6.0 million from the midpoint of the full year of 2026 SaaS and license revenue guidance provided last quarter.

•Total revenue is expected to be in the range of $1.0595 billion to $1.0705 billion, which includes anticipated hardware and other revenue in the range of $310.0 million to $320.0 million.

•Non-GAAP adjusted EBITDA is expected to be in the range of $215.0 million to $216.0 million.

•Non-GAAP adjusted net income attributable to common stockholders is expected to be in the range of $151.5 million to $152.0 million, based on an estimated tax rate of 21.0%.

•Based on an expected 56.9 million weighted average diluted shares outstanding, non-GAAP adjusted net income attributable to common stockholders is expected to be $2.81 to $2.82 per diluted share.

The 2026 guidance provided above is forward-looking in nature. Actual results may differ materially. See the cautionary note regarding “Forward-Looking Statements” below. The guidance provided above is based on expectations as of the date of this press release and Alarm.com undertakes no obligation to update guidance after such date.

Conference Call and Webcast Information

Alarm.com will host a conference call to discuss its first quarter 2026 financial results and its outlook for the second quarter and full year of 2026. A live audio webcast is scheduled to begin at 4:30 p.m. ET on May 7, 2026. To participate on the live call, analysts and investors should pre-register to obtain a dial-in number and individual passcode by visiting: https://register-conf.media-server.com/register/BI5a72758bb63a4af6bba09f1a89dc7256. Alarm.com will also offer a live and archived webcast of the conference call accessible on Alarm.com’s Investor Relations website at http://investors.alarm.com. The information contained on any referenced website is not incorporated herein.

About Alarm.com Holdings, Inc.

Alarm.com is the leading platform for intelligently connected properties. Millions of homeowners and businesses rely on Alarm.com's technology to secure, monitor and manage their environments from anywhere. Our comprehensive suite of solutions — including security, video surveillance, access control, active shooter detection, intelligent automation, energy management and wellness — is delivered exclusively through a trusted network of thousands of professional service providers and commercial integrators across North America and worldwide. Alarm.com's common stock is traded on Nasdaq under the ticker symbol ALRM. Alarm.com delivers serious security for serious people. To learn more, visit www.alarm.com.

Non-GAAP Financial Measures

To supplement our consolidated selected financial data presented on a basis consistent with GAAP, this press release contains certain non-GAAP financial measures, including non-GAAP adjusted EBITDA, non-GAAP adjusted net income, non-GAAP adjusted net income attributable to common stockholders, non-GAAP adjusted net income attributable to common stockholders per share and non-GAAP free cash flow. We have included non-GAAP measures in this press release because they are financial, operating or liquidity measures used by our management to (i) understand and evaluate our core operating performance and trends and generate future operating plans, (ii) make strategic decisions regarding the allocation of capital and investments in initiatives that are focused on cultivating new markets for our solutions and (iii) provide useful information to management about the amount of cash generated by the business after necessary capital expenditures. We also use non-GAAP adjusted EBITDA as a performance measure under our executive bonus plan. Further, we believe that these non-GAAP measures of our financial results provide useful information to investors and others in understanding and evaluating our results of operations, business trends and financial condition. While we believe the use of these non-GAAP measures provides useful information to investors and management in analyzing our financial performance, non-GAAP measures have inherent limitations in that they do not reflect all of the amounts and transactions that are included in our financial statements prepared in accordance with GAAP. Non-GAAP measures do not serve as an alternative to GAAP nor do we consider our non-GAAP measures in isolation. Accordingly, we present non-GAAP financial measures only in connection with GAAP results. We urge investors to consider non-GAAP measures only in conjunction with our GAAP financials and to review the reconciliation of our non-GAAP financial measures to the most directly comparable GAAP financial measures, which are included in this press release.

We consider non-GAAP free cash flow to be a liquidity measure, which we define as cash flows from operating activities less purchases of property and equipment.

With respect to our expectations under “Financial Outlook” above, reconciliation of non-GAAP adjusted EBITDA and non-GAAP adjusted net income attributable to common stockholders guidance to the closest corresponding GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures. In particular, non-ordinary course litigation expense, acquisition-related expense and tax adjustments can have unpredictable fluctuations based on unforeseen activity that is out of our control and/or

cannot reasonably be predicted. We expect the above charges to have a significant and potentially highly variable impact on our future GAAP financial results.

We exclude one or more of the following items from non-GAAP financial and operating measures:

Interest expense: We record interest expense primarily related to the January 2021 issuance of $500.0 million aggregate principal amount of 0% convertible senior notes due January 15, 2026, or the 2026 Notes, and the May 2024 issuance of $500.0 million aggregate principal amount of 2.25% convertible senior notes due June 1, 2029, or the 2029 Notes. We exclude interest expense in calculating our non-GAAP adjusted EBITDA. For non-GAAP adjusted net income, non-GAAP adjusted net income attributable to common stockholders and non-GAAP adjusted net income attributable to common stockholders per share, basic and diluted, we do not exclude interest expense other than the interest expense related to the amortization of debt issuance costs related to the 2026 Notes and 2029 Notes as discussed below.

Interest income and certain activity within other expense, net: We exclude interest income as well as certain activity within other expense, net including gains, losses or impairments on investments with readily determinable fair values and without readily determinable fair values and on other assets, gains on settlement fees as well as losses on the early extinguishment of the debt, when applicable, from our non-GAAP financial measures because we do not consider it part of our ongoing results of operations.

Provision for income taxes: We exclude the impact related to our provision for income taxes from our non-GAAP adjusted EBITDA calculation. We do not consider this tax adjustment to be part of our ongoing results of operations.

(Income) / loss from equity method investments, net: We exclude (income) / loss from equity method investments, net from our non-GAAP financial measures because we do not consider it part of our ongoing results of operations.

Amortization expense: GAAP requires that operating expenses include the amortization of acquired intangible assets, which principally include acquired customer relationships, developed technology and trade names. We exclude amortization of intangibles from our non-GAAP financial measures because we do not consider amortization expense when we evaluate our ongoing business operations, nor do we factor amortization expense into our evaluation of potential acquisitions, or our measurement of the performance of those acquisitions. We believe that the exclusion of amortization expense enables the comparison of our performance to other companies in our industry as other companies may be more or less acquisitive than we are and therefore, amortization expense may vary significantly by company based on their acquisition history. Although we exclude amortization of acquired intangible assets from our non-GAAP financial measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.

Depreciation expense: We record depreciation primarily for investments in property and equipment. We exclude depreciation in calculating non-GAAP adjusted EBITDA because we do not consider depreciation when we evaluate our ongoing business operations. For non-GAAP adjusted net income, non-GAAP adjusted net income attributable to common stockholders and non-GAAP adjusted net income attributable to common stockholders per share, basic and diluted, we do not exclude depreciation.

Amortization of debt issuance costs: We record amortization of debt issuance costs related to the 2026 Notes and 2029 Notes as interest expense. We exclude amortization of debt issuance costs from our non-GAAP adjusted net income, non-GAAP adjusted net income attributable to common stockholders and non-GAAP adjusted net income attributable to common stockholders per share, basic and diluted, because we believe that the exclusion of this non-cash interest expense will provide for more meaningful information about our financial performance.

Stock-based compensation expense: We exclude stock-based compensation expense, which relates to restricted stock units and other forms of equity incentives primarily awarded to employees of Alarm.com, because they are non-cash charges that we do not consider when assessing the operating performance of our business. Additionally, the determination of stock-based compensation expense can be calculated using various methodologies and is dependent upon subjective assumptions and other factors that vary on a company-by-company basis. Therefore, we believe that excluding stock-based compensation expense from our non-GAAP financial measures improves the comparability of our results to the results of other companies in our industry.

Acquisition-related expense: Included in operating expenses are incremental costs directly related to business and asset acquisitions as well as changes in the fair value of contingent consideration liabilities, when applicable. We exclude acquisition-related expense from our non-GAAP financial measures because we believe that the exclusion of this expense allows us to better provide meaningful information about our operating performance, facilitates comparisons to our historical operating results, improves the comparability of our results to the results of other companies in our industry, and ultimately, we believe helps investors better understand the acquisition-related expense and the effects of the transaction on our results of operations.

Litigation expense: We exclude non-ordinary course litigation expense because we do not consider legal costs and settlement fees incurred and received in litigation and litigation-related matters of non-ordinary course lawsuits and other disputes, particularly costs incurred in ongoing intellectual property litigation, to be indicative of our core operating performance. We do not

adjust for ordinary course legal expenses, including those expenses resulting from maintaining and enforcing our intellectual property portfolio and license agreements.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by their use of terms and phrases such as “anticipate,” “believe,” “continue,” “designed,” “enable,” “ensure,” “expect,” “intend,” “will,” and other similar terms and phrases, and such forward-looking statements include, but are not limited to, the statements regarding the Company’s opportunities, positioning, the benefits of recently launched offerings, acquisitions and investments, and the Company’s guidance for the second quarter and full year of 2026 described under “Financial Outlook” above and key assumptions related thereto. The events described in these forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated by these forward-looking statements, including, but not limited to: impact of the global economic uncertainty and financial market conditions caused by significant worldwide events, including public health crises, and geopolitical upheaval (including the ongoing conflicts in Ukraine and in the Middle East and surrounding areas), disruptions to global supply chains, fluctuations in interest rates, tariffs, risk of recession and inflation (collectively, the Macroeconomic Conditions) on the Company's business, results of operations and financial condition, including on the Company's hardware sales and Software-as-a-Service, or SaaS, and license revenue growth rate; the Company's business strategy, plans and objectives for future operations; continued enhancements of the Company's platform and offerings; the potential impact of trade policies and new or increased tariffs on the Company's cost of hardware revenue and hardware revenue margins; and the Company's future financial and business performance; and other risks and uncertainties discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 19, 2026 and other subsequent filings the Company makes with the Securities and Exchange Commission from time to time, including its Form 10-Q for the quarter ended March 31, 2026. In addition, the forward-looking statements included in this press release represent the Company’s views and expectations as of the date hereof and are based on information currently available to the Company. The Company anticipates that subsequent events and developments may cause the Company’s views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so except as required by law. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date hereof.

Investor & Media Relations:

Matthew Zartman

Alarm.com

ir@alarm.com

ALARM.COM HOLDINGS, INC.

Consolidated Statements of Operations

(in thousands, except share and per share data)

(unaudited)

Three Months Ended

March 31,

2026 2025

Revenue:

SaaS and license revenue $ 181,524 $ 163,800

Hardware and other revenue 83,669 75,022

Total revenue 265,193 238,822

Cost of revenue(1):

Cost of SaaS and license revenue 27,895 21,568

Cost of hardware and other revenue 62,616 56,666

Total cost of revenue 90,511 78,234

Operating expenses:

Sales and marketing 34,434 28,549

General and administrative 27,454 27,001

Research and development 72,059 68,367

Amortization and depreciation 9,092 7,024

Total operating expenses 143,039 130,941

Operating income 31,643 29,647

Interest expense (3,672) (4,314)

Interest income 4,931 12,371

Other expense, net (3,909) (2,660)

Income before income taxes 28,993 35,044

Provision for income taxes 5,856 7,307

(Income) / loss from equity method investments, net (245) 25

Net income 23,382 27,712

Net loss attributable to redeemable noncontrolling interests 201 238

Net income attributable to common stockholders $ 23,583 $ 27,950

Per share information attributable to common stockholders:

Net income attributable to common stockholders per share:

Basic $ 0.48 $ 0.56

Diluted $ 0.47 $ 0.52

Weighted average common shares outstanding:

Basic 49,599,698 49,659,741

Diluted 56,322,662 60,077,247

______________________________

(1) Exclusive of amortization and depreciation shown in operating expenses below.

Stock-based compensation expense data: Three Months Ended

March 31,

2026 2025

Sales and marketing $ 742 $ 480

General and administrative 3,056 2,972

Research and development 4,251 6,006

Total stock-based compensation expense $ 8,049 $ 9,458

ALARM.COM HOLDINGS, INC.

Consolidated Balance Sheets

(in thousands, except share and per share data)

(unaudited)

March 31,

2026 December 31,

2025

Assets

Current assets:

Cash and cash equivalents $ 497,449 $ 960,584

Accounts receivable, net of allowance for credit losses of $6,113 and $5,171, and net of allowance for product returns of $2,080 and $2,140 as of March 31, 2026 and December 31, 2025, respectively

141,221 141,852

Inventory 95,132 94,429

Other current assets, net of allowance for credits losses of $749 as of March 31, 2026 and December 31, 2025

67,192 75,646

Total current assets 800,994 1,272,511

Property and equipment, net 62,819 64,799

Intangible assets, net 93,421 99,352

Goodwill 224,708 224,987

Deferred tax assets 149,463 152,255

Operating lease right-of-use assets 51,880 52,636

Investments in unconsolidated entities 219,850 226,931

Other assets, net of allowance for credit losses of $0 as of March 31, 2026 and December 31, 2025

40,502 43,120

Total assets $ 1,643,637 $ 2,136,591

Liabilities, redeemable noncontrolling interests and stockholders’ equity

Current liabilities:

Accounts payable, accrued expenses and other current liabilities $ 106,522 $ 107,195

Accrued compensation 23,021 31,126

Deferred revenue 18,088 16,428

Convertible senior notes, net — 499,867

Operating lease liabilities 7,624 8,524

Total current liabilities 155,255 663,140

Deferred revenue 13,755 13,456

Convertible senior notes, net, noncurrent 490,365 489,641

Operating lease liabilities 68,740 67,609

Other liabilities 11,732 11,735

Total liabilities 739,847 1,245,581

Redeemable noncontrolling interests 43,978 42,847

Stockholders’ equity

Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding as of March 31, 2026 and December 31, 2025 — —

Common stock, $0.01 par value, 300,000,000 shares authorized; 53,723,295 and 53,540,939 shares issued; and 49,385,005 and 49,630,714 shares outstanding as of March 31, 2026 and December 31, 2025, respectively 538 536

Additional paid-in capital 558,532 549,913

Treasury stock, at cost; 4,338,290 and 3,910,225 shares as of March 31, 2026 and December 31, 2025, respectively (247,847) (227,852)

Accumulated other comprehensive income 2,130 2,690

Retained earnings 546,459 522,876

Total stockholders’ equity 859,812 848,163

Total liabilities, redeemable noncontrolling interests and stockholders’ equity $ 1,643,637 $ 2,136,591

ALARM.COM HOLDINGS, INC.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Three Months Ended

March 31,

Cash flows from operating activities: 2026 2025

Net income $ 23,382 $ 27,712

Adjustments to reconcile net income to net cash flows from operating activities:

Provision for credit losses on accounts receivable 1,167 977

Reserve for product returns 381 425

Amortization and depreciation 9,092 7,024

Amortization of debt issuance costs 857 1,498

Amortization of operating leases 3,726 3,903

Deferred income taxes 2,792 (8,791)

Stock-based compensation 8,049 9,458

Distributions on investments in unconsolidated entities

2,668 —

Loss from investments in unconsolidated entities 3,620 2,313

Other adjustments

305 (123)

Changes in operating assets and liabilities (net of business acquisitions):

Accounts receivable (904) 6,283

Inventory (776) (1,859)

Other current and non-current assets 6,758 (8,768)

Accounts payable and other current liabilities (8,373) (12,749)

Deferred revenue 1,959 965

Operating lease liabilities (4,072) (3,474)

Other liabilities 4 (737)

Cash flows from operating activities 50,635 24,057

Cash flows from / (used in) investing activities:

Business acquisitions, net of cash acquired — (23,412)

Additions to property and equipment (912) (6,115)

Issuances of notes receivable (1,462) (21,500)

Receipt of payments on notes receivable 41 29

Capitalized software development costs (212) (408)

Proceeds from sale of investments in unconsolidated entities 6,012 —

Purchase of investments in unconsolidated entities

(1,062) (3,773)

Cash flows from / (used in) investing activities 2,405 (55,179)

Cash flows used in financing activities:

Repayments of convertible senior notes (500,000) —

Payments of deferred consideration for acquisitions (300) —

Purchases of treasury stock, including transaction costs (19,995) (5,059)

Issuances of common stock from equity-based plans 2,059 1,583

Cash flows used in financing activities (518,236) (3,476)

Effect of exchange rate changes on cash, cash equivalents and restricted cash (36) (118)

Net decrease in cash, cash equivalents and restricted cash (465,232) (34,716)

Cash, cash equivalents and restricted cash at beginning of the period 968,807 1,229,132

Cash, cash equivalents and restricted cash at end of the period $ 503,575 $ 1,194,416

Reconciliation of cash, cash equivalents and restricted cash:

Cash and cash equivalents $ 497,449 $ 1,186,195

Restricted cash included in other current assets and other assets 6,126 8,221

Total cash, cash equivalents and restricted cash $ 503,575 $ 1,194,416

ALARM.COM HOLDINGS, INC.

Reconciliation of Non-GAAP Measures

(in thousands)

(unaudited)

Three Months Ended

March 31,

2026 2025

Non-GAAP adjusted EBITDA:

Net income $ 23,382 $ 27,712

Adjustments:

Interest expense, interest income and certain activity within other expense, net1

2,606 (5,769)

Provision for income taxes 5,856 7,307

(Income) / loss from equity method investments, net (245) 25

Amortization and depreciation expense 9,092 7,024

Stock-based compensation expense 8,049 9,458

Acquisition-related expense 59 50

Litigation expense 774 21

Total adjustments 26,191 18,116

Non-GAAP adjusted EBITDA $ 49,573 $ 45,828

Three Months Ended

March 31,

2026 2025

Non-GAAP adjusted net income:

Net income, as reported $ 23,382 $ 27,712

Provision for income taxes 5,856 7,307

(Income) / loss from equity method investments, net (245) 25

Income before income taxes 28,993 35,044

Adjustments:

Interest income and certain activity within other expense, net1

(1,066) (10,083)

Amortization expense 6,030 4,558

Amortization of debt issuance costs 857 1,498

Stock-based compensation expense 8,049 9,458

Acquisition-related expense 59 50

Litigation expense 774 21

Total adjustments

14,703 5,502

Income taxes 2

(9,176) (8,515)

Non-GAAP adjusted net income $ 34,520 $ 32,031

1 During the three months ended March 31, 2026, the Company revised its definition of non-GAAP adjusted EBITDA and non-GAAP adjusted net income to exclude gains and losses on investments with readily determinable fair value, in addition to gains and losses on investments without readily determinable fair value, which the Company has historically excluded. The Company believes this change provides a consistent and useful view of its core operating performance, as such gains and losses are not reflective of the Company’s underlying business operations, are driven by market price fluctuations that are outside of management’s control and can vary significantly from period to period in ways that may obscure trends in operating results. For comparability and to conform the prior period to the current presentation, the Company has revised non-GAAP adjusted EBITDA and non-GAAP adjusted net income for the three months ended March 31, 2025. As a result, the Company adjusted for losses on investments with readily determinable fair value of $3.7 million and $2.3 million during the three months ended March 31, 2026 and 2025, respectively, within “Interest expense, interest income and certain activity within other expense, net” and “Interest income and certain activity within other expense, net.”

2 Income taxes are calculated using a rate of 21.0% for each of the three months ended March 31, 2026 and 2025. The 21.0% effective tax rate for each of the three months ended March 31, 2026 and 2025 excludes the income tax effect on the non-GAAP adjustments and reflects the estimated long-term corporate tax rate.

ALARM.COM HOLDINGS, INC.

Reconciliation of Non-GAAP Measures - continued

(in thousands)

(unaudited)

Three Months Ended

March 31,

2026 2025

Non-GAAP adjusted net income attributable to common stockholders:

Net income attributable to common stockholders, as reported $ 23,583 $ 27,950

Provision for income taxes 5,856 7,307

(Income) / loss from equity method investments, net (245) 25

Income attributable to common stockholders before income taxes 29,194 35,282

Adjustments:

Interest income and certain activity within other expense, net1

(1,066) (10,083)

Amortization expense 6,030 4,558

Amortization of debt issuance costs 857 1,498

Stock-based compensation expense 8,049 9,458

Acquisition-related expense 59 50

Litigation expense 774 21

Total adjustments

14,703 5,502

Income taxes 2

(9,218) (8,565)

Non-GAAP adjusted net income attributable to common stockholders $ 34,679 $ 32,219

1 During the three months ended March 31, 2026, the Company revised its definition of non-GAAP adjusted net income attributable to common stockholders to exclude gains and losses on investments with readily determinable fair value. For comparability and to conform the prior period to the current presentation, the Company has revised non-GAAP adjusted net income attributable to common stockholders for the three months ended March 31, 2025. As a result, the Company adjusted for losses on investments with readily determinable fair value of $3.7 million and $2.3 million during the three months ended March 31, 2026 and 2025, respectively, within “Interest income and certain activity within other expense, net.”

ALARM.COM HOLDINGS, INC.

Reconciliation of Non-GAAP Measures - continued

(in thousands, except share and per share data)

(unaudited)

Three Months Ended

March 31,

2026 2025

Non-GAAP adjusted net income attributable to common stockholders per share:

Net income attributable to common stockholders per share - basic, as reported $ 0.48 $ 0.56

Provision for income taxes 0.12 0.15

(Income) / loss from equity method investments, net — —

Income attributable to common stockholders before income taxes 0.60 0.71

Adjustments:

Interest income and certain activity within other expense, net1

(0.02) (0.20)

Amortization expense 0.12 0.09

Amortization of debt issuance costs 0.02 0.03

Stock-based compensation expense 0.15 0.19

Acquisition-related expense — —

Litigation expense 0.02 —

Total adjustments

0.29 0.11

Income taxes 2

(0.19) (0.17)

Non-GAAP adjusted net income attributable to common stockholders per share - basic $ 0.70 $ 0.65

Non-GAAP adjusted net income attributable to common stockholders per share - diluted 3

$ 0.65 $ 0.57

Weighted average common shares outstanding:

Basic, as reported 49,599,698 49,659,741

Diluted, as reported 56,322,662 60,077,247

1 During the three months ended March 31, 2026, the Company revised its definition of non-GAAP adjusted net income attributable to common stockholders per share – basic and diluted, to exclude gains and losses on investments with readily determinable fair value. For comparability and to conform the prior period to the current presentation, the Company has revised non-GAAP adjusted net income attributable to common stockholders for the three months ended March 31, 2025. As a result, the Company adjusted for losses on investments with readily determinable fair value of $3.7 million and $2.3 million during the three months ended March 31, 2026 and 2025, respectively, within “Interest income and certain activity within other expense, net,” impacting the per share amounts.

3 Non-GAAP adjusted net income attributable to common stockholders per diluted share includes the add back of cash interest expense, net of tax, attributable to convertible senior notes of $2.1 million for each of the three months ended March 31, 2026 and 2025.

Three Months Ended

March 31,

2026 2025

Non-GAAP free cash flow:

Cash flows from operating activities $ 50,635 $ 24,057

Additions to property and equipment (912) (6,115)

Non-GAAP free cash flow $ 49,723 $ 17,942

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