Alarm.com Holdings, Inc.ALRM
Alarm.com Holdings, Inc. Segments Disclosure
Segment Information
We have two reportable segments:
•Alarm.com segment
•Other segment
Our chief operating decision maker is our chief executive officer. Management determined the operational data used by the chief operating decision maker is that of the two reportable segments. Management bases strategic goals and decisions on these segments and the data presented below is used to measure financial results.
Our Alarm.com segment represents our cloud-based platform and licenses and services on our non-hosted software platform for intelligently connected properties and related solutions that contributed 91%, 92% and 93% of our revenue, net of intersegment eliminations, for the years ended December 31, 2025, 2024 and 2023, respectively. Our Other segment is focused on researching, developing and offering residential and commercial automation solutions and energy management products and services in adjacent markets. Inter-segment revenue includes sales of hardware between our segments.
Management evaluates the performance of its segments and allocates resources to them based on operating income / (loss) as compared to prior periods and current performance levels. The reportable segment operational data is presented in the tables below (in thousands):
| Year Ended December 31, 2025 | |||||||||||||||||||||||||||||
| Alarm.com | Other | Intersegment Alarm.com | Intersegment Other | Total | |||||||||||||||||||||||||
| SaaS and license revenue | $ | 605,261 | $ | 84,136 | $ | — | $ | — | $ | 689,397 | |||||||||||||||||||
| Hardware and other revenue | 314,389 | 11,599 | (2,928) | (1,270) | 321,790 | ||||||||||||||||||||||||
Total revenue | 919,650 | 95,735 | (2,928) | (1,270) | 1,011,187 | ||||||||||||||||||||||||
Cost of SaaS and license revenue | 69,986 | 26,214 | 354 | (354) | 96,200 | ||||||||||||||||||||||||
Cost of hardware and other revenue | 239,561 | 10,871 | (2,871) | (1,466) | 246,095 | ||||||||||||||||||||||||
Total cost of revenue | 309,547 | 37,085 | (2,517) | (1,820) | 342,295 | ||||||||||||||||||||||||
Selling and marketing expense | 98,039 | 25,749 | — | — | 123,788 | ||||||||||||||||||||||||
General and administrative expense | 102,647 | 7,771 | — | — | 110,418 | ||||||||||||||||||||||||
Research and development expense | 238,925 | 31,304 | — | — | 270,229 | ||||||||||||||||||||||||
Amortization and depreciation expense | 28,813 | 2,006 | — | — | 30,819 | ||||||||||||||||||||||||
Total operating expenses | 468,424 | 66,830 | — | — | 535,254 | ||||||||||||||||||||||||
| Operating income / (loss) | $ | 141,679 | $ | (8,180) | $ | (411) | $ | 550 | $ | 133,638 | |||||||||||||||||||
Total assets | $ | 2,181,210 | $ | 190,095 | $ | (234,681) | $ | (33) | $ | 2,136,591 | |||||||||||||||||||
Reconciliation of operating income to income before income taxes | |||||||||||||||||||||||||||||
| Operating income | $ | 133,638 | |||||||||||||||||||||||||||
| Interest expense | (17,294) | ||||||||||||||||||||||||||||
| Interest income | 45,617 | ||||||||||||||||||||||||||||
| Other income / (expense), net | 4,645 | ||||||||||||||||||||||||||||
| Income before income taxes | $ | 166,606 | |||||||||||||||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||
| Alarm.com | Other | Intersegment Alarm.com | Intersegment Other | Total | |||||||||||||||||||||||||
| SaaS and license revenue | $ | 564,513 | $ | 66,685 | $ | — | $ | — | $ | 631,198 | |||||||||||||||||||
| Hardware and other revenue | 306,074 | 5,979 | (2,769) | (655) | 308,629 | ||||||||||||||||||||||||
| Total revenue | 870,587 | 72,664 | (2,769) | (655) | 939,827 | ||||||||||||||||||||||||
| Cost of SaaS and license revenue | 68,666 | 20,809 | 329 | (292) | 89,512 | ||||||||||||||||||||||||
| Cost of hardware and other revenue | 234,414 | 5,414 | (2,630) | (561) | 236,637 | ||||||||||||||||||||||||
| Total cost of revenue | 303,080 | 26,223 | (2,301) | (853) | 326,149 | ||||||||||||||||||||||||
| Selling and marketing expense | 88,899 | 22,343 | — | — | 111,242 | ||||||||||||||||||||||||
| General and administrative expense | 101,401 | 7,478 | — | — | 108,879 | ||||||||||||||||||||||||
| Research and development expense | 227,559 | 28,319 | — | — | 255,878 | ||||||||||||||||||||||||
| Amortization and depreciation expense | 28,107 | 1,024 | — | — | 29,131 | ||||||||||||||||||||||||
| Total operating expenses | 445,966 | 59,164 | — | — | 505,130 | ||||||||||||||||||||||||
| Operating income / (loss) | $ | 121,541 | $ | (12,723) | $ | (468) | $ | 198 | $ | 108,548 | |||||||||||||||||||
| Total assets | $ | 2,081,214 | $ | 85,468 | $ | (128,465) | $ | (9) | $ | 2,038,208 | |||||||||||||||||||
Reconciliation of operating income to income before income taxes | |||||||||||||||||||||||||||||
| Operating income | $ | 108,548 | |||||||||||||||||||||||||||
| Interest expense | (11,426) | ||||||||||||||||||||||||||||
| Interest income | 47,359 | ||||||||||||||||||||||||||||
| Other income / (expense), net | (2,807) | ||||||||||||||||||||||||||||
| Income before income taxes | $ | 141,674 | |||||||||||||||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||||||||
| Alarm.com | Other | Intersegment Alarm.com | Intersegment Other | Total | |||||||||||||||||||||||||
| SaaS and license revenue | $ | 514,673 | $ | 54,527 | $ | — | $ | — | $ | 569,200 | |||||||||||||||||||
| Hardware and other revenue | 309,778 | 6,501 | (3,201) | (596) | 312,482 | ||||||||||||||||||||||||
Total revenue | 824,451 | 61,028 | (3,201) | (596) | 881,682 | ||||||||||||||||||||||||
Cost of SaaS and license revenue | 71,639 | 17,852 | (2,967) | (626) | 85,898 | ||||||||||||||||||||||||
Cost of hardware and other revenue | 237,660 | 5,760 | (3,771) | (388) | 239,261 | ||||||||||||||||||||||||
Total cost of revenue | 309,299 | 23,612 | (6,738) | (1,014) | 325,159 | ||||||||||||||||||||||||
Selling and marketing expense | 82,672 | 17,554 | — | — | 100,226 | ||||||||||||||||||||||||
General and administrative expense | 107,475 | 5,935 | (480) | — | 112,930 | ||||||||||||||||||||||||
Research and development expense | 220,106 | 25,008 | — | — | 245,114 | ||||||||||||||||||||||||
Amortization and depreciation expense | 30,337 | 1,087 | — | — | 31,424 | ||||||||||||||||||||||||
Total operating expenses | 440,590 | 49,584 | (480) | — | 489,694 | ||||||||||||||||||||||||
| Operating income / (loss) | $ | 74,562 | $ | (12,168) | $ | 4,017 | $ | 418 | $ | 66,829 | |||||||||||||||||||
Reconciliation of operating income to income before income taxes | |||||||||||||||||||||||||||||
| Operating income | $ | 66,829 | |||||||||||||||||||||||||||
| Interest expense | (3,429) | ||||||||||||||||||||||||||||
| Interest income | 29,801 | ||||||||||||||||||||||||||||
| Other income / (expense), net | 4,624 | ||||||||||||||||||||||||||||
| Income before income taxes | $ | 97,825 | |||||||||||||||||||||||||||
Our SaaS and license revenue for the Alarm.com segment included software license revenue of $17.7 million, $20.3 million and $23.2 million for the years ended December 31, 2025, 2024 and 2023, respectively. There was no software license revenue recorded for the Other segment during the years ended December 31, 2025, 2024 and 2023. Cash additions to property and equipment were $16.2 million, $10.0 million and $7.4 million for the Alarm.com segment for the years ended December 31, 2025, 2024 and 2023, respectively. Cash additions to property and equipment were less than $0.1 million for the Other segment for the year ended December 31, 2025, and were $0.1 million for the years ended December 31, 2024 and 2023.
We derived substantially all revenue from North America for the years ended December 31, 2025, 2024 and 2023. Substantially all of our long-lived assets were in North America as of December 31, 2025 and 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.