Alarm.com Holdings, Inc.ALRM

Alarm.com Holdings, Inc. Leases Disclosure

10-KFiled Feb 19, 20262 min read
Leases
As of December 31, 2025, we leased office space, data centers and office equipment under non-cancelable operating leases with various expiration dates through 2034. In August 2014, we signed a lease for office space in Tysons, Virginia where we relocated our corporate headquarters to in February 2016. We have subsequently entered into amendments to this lease to provide us with additional office space as well as tenant improvement allowances. In August 2024, we entered into an amendment to the lease for our corporate headquarters, which extends the term of our existing leased office space to 2034 and includes two successive five-year renewal options. Additionally, the amendment provides for additional office space, parking spaces and tenant improvement allowances.

Supplemental information related to leases is presented in the table below (in thousands, except weighted-average term and discount rate):
Year Ended December 31,
202520242023
Operating lease cost$15,381 $13,084 $11,484 
Cash paid for amounts included in the measurement of operating lease liabilities9,864 12,467 13,947 
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities7,650 38,872 5,262 

During the years ended December 31, 2025, 2024 and 2023, we received cash incentives from our landlord of $4.5 million, zero, and $0.4 million, respectively, as reimbursement for tenant improvements.

December 31, 2025December 31, 2024
Weighted-average remaining lease term — operating leases7.1 years7.8 years
Weighted-average discount rate — operating leases8.1 %8.2 %
Maturities of lease liabilities are as follows (in thousands):
Year Ended December 31,
Operating Leases(1)
2026$14,297 
202714,594 
202813,605 
202911,974 
203011,343 
2031 and thereafter37,147 
Total lease payments102,960 
Less: imputed interest(2)
26,827 
Present value of lease liabilities$76,133 
____________________
(1)Operating lease payments exclude $4.4 million of legally binding minimum lease payments for leases executed but not yet commenced. There are no options to extend lease terms that were reasonably certain of being exercised included in these balances.
(2)Imputed interest was calculated using the incremental borrowing rate applicable for each lease.

Historical Timeline

Fiscal YearFiled
2025Feb 19, 2026Showing above
2024Feb 20, 2025

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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