Alarm.com Holdings, Inc.ALRM
Alarm.com Holdings, Inc. Goodwill & Intangibles Disclosure
Goodwill and Intangible Assets, Net
The changes in goodwill by reportable segment are outlined below (in thousands):
| Alarm.com | Other | Total | |||||||||||||||
| Balance as of January 1, 2024 | $ | 154,498 | $ | — | $ | 154,498 | |||||||||||
Foreign currency translation adjustment | (287) | — | (287) | ||||||||||||||
| Balance as of December 31, 2024 | 154,211 | — | 154,211 | ||||||||||||||
| Goodwill acquired | 23,579 | 48,156 | 71,735 | ||||||||||||||
| Measurement period adjustment | (91) | (1,767) | (1,858) | ||||||||||||||
| Foreign currency translation adjustment | 899 | — | 899 | ||||||||||||||
| Balance as of December 31, 2025 | $ | 178,598 | $ | 46,389 | $ | 224,987 | |||||||||||
On February 10, 2025, we acquired 81% of the issued and outstanding shares of capital stock of CHeKT and initially recorded $23.6 million of goodwill in the Alarm.com segment. On August 15, 2025, we acquired 100% of the issued and outstanding shares of capital stock of BTR and initially recorded $3.1 million of goodwill in the Other segment. On November 21, 2025, we acquired 100% of the issued and outstanding shares of capital stock of RGS and recorded $45.1 million of goodwill in the Other segment. The goodwill related to the acquisitions of CHeKT, BTR and RGS reflects the value of acquired workforce and synergies we expect to achieve from integrating these acquisitions into our existing solutions. The 2025 measurement period
adjustments related to the CHeKT and BTR working capital and tax adjustments during the year ended December 31, 2025. There were no impairments of goodwill recorded during the years ended December 31, 2025, 2024 or 2023. As of December 31, 2025, the accumulated balance of goodwill impairments was $4.8 million, which is related to our acquisition of EnergyHub in 2013.
The following table reflects changes in the net carrying amount of the components of intangible assets (in thousands):
| Customer Relationships | Developed Technology | Trade Name | Capitalized Software Development Costs | Other | Total | ||||||||||||||||||||||||||||||
| Balance as of January 1, 2024 | $ | 39,294 | $ | 37,174 | $ | 1,217 | $ | 879 | $ | — | $ | 78,564 | |||||||||||||||||||||||
| Intangible assets acquired | — | 1,585 | — | — | 46 | 1,631 | |||||||||||||||||||||||||||||
Capitalized software development costs | — | — | — | 1,798 | — | 1,798 | |||||||||||||||||||||||||||||
| Amortization | (9,669) | (8,216) | (717) | (232) | — | (18,834) | |||||||||||||||||||||||||||||
| Balance as of December 31, 2024 | 29,625 | 30,543 | 500 | 2,445 | 46 | 63,159 | |||||||||||||||||||||||||||||
| Intangible assets acquired | 34,120 | 18,398 | 1,058 | — | — | 53,576 | |||||||||||||||||||||||||||||
| Capitalized software development costs | — | — | — | 1,354 | — | 1,354 | |||||||||||||||||||||||||||||
| Amortization | (8,721) | (9,320) | (256) | (440) | — | (18,737) | |||||||||||||||||||||||||||||
| Balance as of December 31, 2025 | $ | 55,024 | $ | 39,621 | $ | 1,302 | $ | 3,359 | $ | 46 | $ | 99,352 | |||||||||||||||||||||||
We recorded $19.4 million, $18.6 million and $19.3 million of amortization related to our intangible assets for the years ended December 31, 2025, 2024 and 2023, respectively. There were no impairments of long-lived intangible assets during the years ended December 31, 2025, 2024 and 2023. During the year ended December 31, 2024, $0.3 million of fully amortized developed technology intangible assets previously acquired were written-off in the Alarm.com segment as the technology was no longer in use.
The following tables reflect the weighted-average remaining life and carrying value of finite-lived intangible assets (in thousands, except weighted-average remaining life):
| December 31, 2025 | |||||||||||||||||||||||
| Gross Carrying Amount | Accumulated Amortization | Net Carrying Value | Weighted- Average Remaining Life (in years) | ||||||||||||||||||||
| Customer relationships | $ | 162,400 | $ | (107,376) | $ | 55,024 | 10.8 | ||||||||||||||||
| Developed technology | 89,714 | (50,093) | 39,621 | 5.2 | |||||||||||||||||||
| Trade name | 5,532 | (4,230) | 1,302 | 5.0 | |||||||||||||||||||
| Capitalized software development costs | 4,034 | (675) | 3,359 | 3.8 | |||||||||||||||||||
Other | 46 | — | 46 | 5.0 | |||||||||||||||||||
| Total intangible assets | $ | 261,726 | $ | (162,374) | $ | 99,352 | 8.3 | ||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||
| Gross Carrying Amount | Accumulated Amortization | Net Carrying Value | Weighted- Average Remaining Life (in years) | ||||||||||||||||||||
| Customer relationships | $ | 128,280 | $ | (98,655) | $ | 29,625 | 5.3 | ||||||||||||||||
| Developed technology | 71,316 | (40,773) | 30,543 | 4.0 | |||||||||||||||||||
| Trade name | 4,474 | (3,974) | 500 | 2.9 | |||||||||||||||||||
| Capitalized software development costs | 2,680 | (235) | 2,445 | 3.7 | |||||||||||||||||||
Other | 46 | — | 46 | 5.0 | |||||||||||||||||||
| Total intangible assets | $ | 206,796 | $ | (143,637) | $ | 63,159 | 4.6 | ||||||||||||||||
The following table reflects the future estimated amortization expense for intangible assets (in thousands):
| Year Ended December 31, | Amortization | |||||||
| 2026 | $ | 23,448 | ||||||
| 2027 | 20,325 | |||||||
| 2028 | 14,550 | |||||||
| 2029 | 7,683 | |||||||
| 2030 | 6,498 | |||||||
| 2031 and thereafter | 26,848 | |||||||
| Total future amortization expense | $ | 99,352 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.