Alarm.com Reports Third Quarter 2025 Results

TYSONS, Va.--( BUSINESS WIRE)--Alarm.com Holdings, Inc. (Nasdaq: ALRM), the leading platform for the intelligently connected property, today reported financial results for its third quarter ended September 30, 2025. Alarm.com also provided its financial outlook for SaaS and license revenue for the fourth quarter of 2025 and increased its guidance for the full year of 2025.

Third Quarter 2025 Financial Results as Compared to Third Quarter 2024

Balance Sheet and Cash Flow

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

Recent Business Highlights

Financial Outlook

Alarm.com is providing its outlook for SaaS and license revenue for the fourth quarter of 2025 and increasing its guidance for the full year of 2025 based upon current management expectations.

For the fourth quarter of 2025:

For the full year 2025:

The 2025 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 third quarter 2025 financial results and its outlook for the fourth quarter and full year 2025. A live audio webcast is scheduled to begin at 4:30 p.m. ET on November 6, 2025. 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/BIdbcc1625c64b4f0089b752f219515b03. 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 income before income taxes, non-GAAP adjusted net income, non-GAAP adjusted income attributable to common stockholders before income taxes, 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 windfall or shortfall 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 income / (expense), net: We exclude interest income as well as certain activity within other income / (expense), net including gains, losses or impairments on investments without readily determinable fair values and 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 from equity method investments, net: We exclude income 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 fourth quarter and full year 2025 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, geopolitical upheaval (including the ongoing conflicts in Ukraine, and in the Middle East and surrounding areas), supply chain disruptions, interest rates, the U.S. government shutdown, tariffs and inflation (collectively, Macroeconomic Conditions); impact of Macroeconomic Conditions and their economic effects on demand for the Company's products; the reliability of the Company’s network operations centers; the Company’s ability to retain service provider partners and residential and commercial subscribers and sustain its growth rate; the Company’s ability to manage growth and execute on its business strategies; the effects of increased competition and evolving technologies; the Company’s ability to integrate acquired assets and businesses and to manage service provider partners, customers and employees; consumer demand for interactive security, video monitoring, intelligent automation, energy management and wellness solutions; the Company’s reliance on its service provider network to attract new customers and retain existing customers; the Company's dependence on its suppliers; the potential loss of any key supplier or the inability of a key supplier to deliver their products to us on time or at the contracted price; the reliability of the Company’s hardware and wireless network suppliers and new or enhanced United States tax, tariff, import/export restrictions, or other trade barriers; and other risks and uncertainties discussed in the “Risk Factors” section of the Company’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 7, 2025 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 September 30, 2025. 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.

ALARM.COM HOLDINGS, INC.

Consolidated Statements of Operations

(in thousands, except share and per share data)

(unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Revenue:

SaaS and license revenue

175,372

159,276

509,165

465,547

Hardware and other revenue

81,028

81,221

240,365

232,040

Total revenue

256,400

240,497

749,530

697,587

Cost of revenue (1):

Cost of SaaS and license revenue

24,233

23,099

69,454

65,621

Cost of hardware and other revenue

63,329

61,649

183,804

176,924

Total cost of revenue

87,562

84,748

253,258

242,545

Operating expenses:

Sales and marketing

29,498

27,010

89,183

80,301

General and administrative

27,889

25,712

81,974

81,112

Research and development

66,637

62,221

204,074

193,907

Amortization and depreciation

7,793

7,612

22,351

22,029

Total operating expenses

131,817

122,555

397,582

377,349

Operating income

37,021

33,194

98,690

77,693

Interest expense

(4,326

)

(4,315

)

(12,961

)

(7,079

)

Interest income

11,274

14,384

35,453

33,780

Other income / (expense), net

3,538

(89

)

703

(1,665

)

Income before income taxes

47,507

43,174

121,885

102,729

Provision for income taxes

15,200

6,718

27,965

10,349

Income from equity method investments, net

(2,793

)

—

(3,109

)

—

Net income

35,100

36,456

97,029

92,380

Net loss attributable to redeemable noncontrolling interests

238

226

811

1,408

Net income attributable to common stockholders

35,338

36,682

97,840

93,788

Per share information attributable to common stockholders:

Net income attributable to common stockholders per share:

Basic

0.71

0.74

1.97

1.89

Diluted

0.65

0.67

1.80

1.73

Weighted average common shares outstanding:

Basic

49,896,117

49,282,514

49,788,187

49,691,263

Diluted

58,461,103

59,780,908

59,630,170

57,212,003

______________________________

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

Stock-based compensation expense data:

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Cost of hardware and other revenue

—

Sales and marketing

642

545

1,742

2,024

General and administrative

2,721

3,077

8,167

9,561

Research and development

4,858

5,572

16,704

20,088

Total stock-based compensation expense

8,221

9,194

26,613

31,675

ALARM.COM HOLDINGS, INC.

Consolidated Balance Sheets

(in thousands, except share and per share data)

(unaudited)

September 30,

2025

December 31,

2024

Assets

Current assets:

Cash and cash equivalents

1,066,583

1,220,701

Accounts receivable, net of allowance for credit losses of $4,576 and $3,870, and net of allowance for product returns of $2,225 and $2,448 as of September 30, 2025 and December 31, 2024, respectively

110,984

126,082

Inventory

92,298

87,435

Other current assets, net of allowance for credits losses of $749 and $0 as of September 30, 2025 and December 31, 2024, respectively

75,833

47,374

Total current assets

1,345,698

1,481,592

Property and equipment, net

67,438

63,205

Intangible assets, net

71,214

63,159

Goodwill

181,710

154,211

Deferred tax assets

160,883

181,284

Operating lease right-of-use assets

55,515

53,425

Investments in unconsolidated entities

197,696

17,170

Other assets, net of allowance for credit losses of $0 and $1 as of September 30, 2025 and December 31, 2024, respectively

43,436

24,162

Total assets

2,123,590

2,038,208

Liabilities, redeemable noncontrolling interests and stockholders’ equity

Current liabilities:

Accounts payable, accrued expenses and other current liabilities

101,332

139,427

Accrued compensation

29,023

28,739

Deferred revenue

14,387

12,940

Convertible senior notes, net

499,068

—

Operating lease liabilities

10,201

7,700

Total current liabilities

654,011

188,806

Deferred revenue

13,576

13,619

Convertible senior notes, net, noncurrent

488,922

983,477

Operating lease liabilities

69,066

65,534

Other liabilities

14,741

15,479

Total liabilities

1,240,316

1,266,915

Redeemable noncontrolling interests

56,084

44,747

Stockholders’ equity

Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding as of September 30, 2025 and December 31, 2024

—

Common stock, $0.01 par value, 300,000,000 shares authorized; 53,297,751 and 52,756,077 shares issued; and 49,760,526 and 49,618,346 shares outstanding as of September 30, 2025 and December 31, 2024, respectively

533

528

Additional paid-in capital

544,699

521,192

Treasury stock, at cost; 3,537,225 and 3,137,731 shares as of September 30, 2025 and December 31, 2024, respectively

(208,710

)

(186,291

)

Accumulated other comprehensive income

2,526

815

Retained earnings

488,142

390,302

Total stockholders’ equity

827,190

726,546

Total liabilities, redeemable noncontrolling interests and stockholders’ equity

2,123,590

2,038,208

ALARM.COM HOLDINGS, INC.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Nine Months Ended

September 30,

Cash flows from operating activities:

2025

2024

Net income

97,029

92,380

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

Provision for credit losses on accounts receivable

1,399

530

Reserve for product returns

2,444

2,672

Provision for credit losses on notes receivable

748

3,996

Amortization on patents and tooling

542

657

Amortization and depreciation

22,351

22,029

Amortization of debt issuance costs

4,513

3,296

Amortization of operating leases

11,657

9,425

Deferred income taxes

18,713

(32,739

)

Change in fair value of contingent liability

252

105

Stock-based compensation

26,613

31,675

Distributions on investments in unconsolidated entities

4,014

—

(Gain on) / loss from investments in unconsolidated entities

(3,077

)

203

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

Accounts receivable

11,645

6,425

Inventory

(3,485

)

21,195

Other current and non-current assets

(19,858

)

(5,034

)

Accounts payable and other current liabilities

(48,290

)

(4,904

)

Deferred revenue

1,404

4,126

Operating lease liabilities

(9,884

)

(9,171

)

Other liabilities

(1,329

)

3,287

Cash flows from operating activities

117,401

150,153

Cash flows used in investing activities:

Business acquisition, net of cash acquired

(35,733

)

—

Additions to property and equipment

(15,421

)

(7,865

)

Issuances of notes receivable

(24,305

)

(500

)

Receipt of payments on notes receivable

Capitalized software development costs

(1,032

)

(1,128

)

Proceeds from sale of investments in unconsolidated entities

1,459

—

Purchase of investments in unconsolidated entities

(175,057

)

(7,052

)

Purchases of other intangible assets

—

(46

)

Cash flows used in investing activities

(250,003

)

(16,553

)

Cash flows (used in) / from financing activities:

Proceeds from issuance of convertible senior notes

—

500,000

Payments of debt issuance costs

—

(14,834

)

Purchases of capped calls related to convertible senior notes

—

(63,050

)

Payments of deferred consideration for acquisitions

(1,741

)

(7,269

)

Purchases of treasury stock, including transaction costs

(22,419

)

(75,000

)

Payments of tax withholdings related to vesting of restricted stock units

—

(3,401

)

Purchases of redeemable noncontrolling interest

(750

)

—

Issuances of common stock from equity-based plans

3,440

7,840

Cash flows (used in) / from financing activities

(21,470

)

344,286

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(161

)

(290

)

Net (decrease) / increase in cash, cash equivalents and restricted cash

(154,233

)

477,596

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

1,074,899

1,178,675

Reconciliation of cash, cash equivalents and restricted cash:

Cash and cash equivalents

1,066,583

1,170,605

Restricted cash included in other current assets and other assets

8,316

8,070

Total cash, cash equivalents and restricted cash

1,074,899

1,178,675

ALARM.COM HOLDINGS, INC.

Reconciliation of Non-GAAP Measures

(in thousands)

(unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Non-GAAP adjusted EBITDA:

Net income

35,100

36,456

97,029

92,380

Adjustments:

Interest expense, interest income and certain activity within other income / (expense), net

(7,049

)

(10,069

)

(22,593

)

(26,701

)

Provision for income taxes

15,200

6,718

27,965

10,349

Income from equity method investments, net

(2,793

)

—

(3,109

)

—

Amortization and depreciation expense

7,793

7,612

22,351

22,029

Stock-based compensation expense

8,221

9,194

26,613

31,675

Acquisition-related expense

898

958

105

Litigation expense

1,789

1,897

Total adjustments

24,059

13,520

54,082

37,473

Non-GAAP adjusted EBITDA

59,159

49,976

151,111

129,853

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Non-GAAP adjusted net income:

Net income, as reported

35,100

36,456

97,029

92,380

Provision for income taxes

15,200

6,718

27,965

10,349

Income from equity method investments, net

(2,793

)

—

(3,109

)

—

Income before income taxes

47,507

43,174

121,885

102,729

Adjustments:

Interest income and certain activity within other income / (expense), net

(11,375

)

(14,384

)

(35,554

)

(33,780

)

Amortization expense

4,874

4,753

14,163

14,154

Amortization of debt issuance costs

1,511

1,485

4,513

3,296

Stock-based compensation expense

8,221

9,194

26,613

31,675

Acquisition-related expense

898

958

105

Litigation expense

1,789

1,897

Non-GAAP adjusted income before income taxes

53,425

44,287

134,475

118,195

Income taxes 1

(11,219

)

(9,300

)

(28,240

)

(24,821

)

Non-GAAP adjusted net income

42,206

34,987

106,235

93,374

1 Income taxes are calculated using a rate of 21.0% for each of the three and nine months ended September 30, 2025 and 2024. The 21.0% effective tax rate for each of the three and nine months ended September 30, 2025 and 2024 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

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Non-GAAP adjusted net income attributable to common stockholders:

Net income attributable to common stockholders, as reported

35,338

36,682

97,840

93,788

Provision for income taxes

15,200

6,718

27,965

10,349

Income from equity method investments, net

(2,793

)

—

(3,109

)

—

Income attributable to common stockholders before income taxes

47,745

43,400

122,696

104,137

Adjustments:

Interest income and certain activity within other income / (expense), net

(11,375

)

(14,384

)

(35,554

)

(33,780

)

Amortization expense

4,874

4,753

14,163

14,154

Amortization of debt issuance costs

1,511

1,485

4,513

3,296

Stock-based compensation expense

8,221

9,194

26,613

31,675

Acquisition-related expense

898

958

105

Litigation expense

1,789

1,897

Non-GAAP adjusted income attributable to common stockholders before income taxes

53,663

44,513

135,286

119,603

Income taxes 1

(11,269

)

(9,348

)

(28,410

)

(25,117

)

Non-GAAP adjusted net income attributable to common stockholders

42,394

35,165

106,876

94,486

ALARM.COM HOLDINGS, INC.

Reconciliation of Non-GAAP Measures - continued

(in thousands, except share and per share data)

(unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

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

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

0.71

0.74

1.97

1.89

Provision for income taxes

0.30

0.14

0.56

0.21

Income from equity method investments, net

(0.06

)

—

(0.06

)

—

Income attributable to common stockholders before income taxes

0.95

0.88

2.47

2.10

Adjustments:

Interest income and certain activity within other income / (expense), net

(0.22

)

(0.29

)

(0.71

)

(0.68

)

Amortization expense

0.10

0.28

Amortization of debt issuance costs

0.03

0.09

0.07

Stock-based compensation expense

0.16

0.18

0.53

0.64

Acquisition-related expense

0.02

—

0.02

—

Litigation expense

0.04

—

0.04

—

Non-GAAP adjusted income attributable to common stockholders before income taxes

1.08

0.90

2.72

2.41

Income taxes 1

(0.23

)

(0.19

)

(0.57

)

(0.51

)

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

0.85

0.71

2.15

1.90

Non-GAAP adjusted net income attributable to common stockholders per share - diluted 2

0.76

0.62

1.90

1.70

Weighted average common shares outstanding:

Basic, as reported

49,896,117

49,282,514

49,788,187

49,691,263

Diluted, as reported

58,461,103

59,780,908

59,630,170

57,212,003

2 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 and $6.4 million for the three and nine months ended September 30, 2025, respectively, and $2.1 million and $2.8 million for the same periods in the prior year.

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Non-GAAP free cash flow:

Cash flows from operating activities

70,628

77,337

117,401

150,153

Additions to property and equipment

(4,754

)

(2,807

)

(15,421

)

(7,865

)

Non-GAAP free cash flow

65,874

74,530

101,980

142,288