What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-11-06 compared with 2025-08-07 · 282 added, 221 removed, 939 unchanged (35% of the section changed)

4 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

15 unchanged sentences

Interest income 11,274 14,384 35,453 33,780

Other expense, net ( 150 ) ( 1,258 ) ( 2,835 ) ( 1,576 )

Other income / (expense), net 3,538 ( 89 ) 703 ( 1,665 )

Income before income taxes 47,507 43,174 121,885 102,729

18 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Net income $ 35,100 $ 36,456 $ 97,029 $ 92,380

Other comprehensive income / (loss)

Other comprehensive (loss) / income

Foreign currency translation adjustment ( 77 ) 678 1,711 375

Total other comprehensive income / (loss) 959 ( 156 ) 1,788 ( 303 )

Total other comprehensive (loss) / income ( 77 ) 678 1,711 375

Comprehensive income 35,023 37,134 98,740 92,755

5 unchanged sentences

(in thousands, except share and per share data)

September 30,

2025 December 31,

1 unchanged sentence

Cash and cash equivalents $ 1,066,583 $ 1,220,701

Accounts receivable, net of allowance for credit losses of $ 5,142 and $ 3,870 , and net of allowance for product returns of $ 1,890 and $ 2,448 as of June 30, 2025 and December 31, 2024, respectively

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 June 30, 2025 and December 31, 2024, respectively

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

6 unchanged sentences

Investments in unconsolidated entities 197,696 17,170

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

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

17 unchanged sentences

Preferred stock, $ 0.001 par value, 10,000,000 shares authorized;

no shares issued and outstanding as of June 30, 2025 and December 31, 2024

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 49,834,537 and 49,618,346 shares outstanding as of June 30, 2025 and December 31, 2024, respectively

and 49,760,526 and 49,618,346 shares outstanding as of September 30, 2025 and December 31, 2024, respectively

Additional paid-in capital 544,699 521,192

Treasury stock, at cost;

3,312,131 and 3,137,731 shares as of June 30, 2025 and December 31, 2024, respectively

3,537,225 and 3,137,731 shares as of September 30, 2025 and December 31, 2024, respectively

( 208,710 ) ( 186,291 )

7 unchanged sentences

(in thousands)

Six Months Ended

Nine Months Ended

September 30,

Cash flows from operating activities:

11 unchanged sentences

Stock-based compensation 26,613 31,675

Loss from investments in unconsolidated entities 3,454 23

Distributions on investments in unconsolidated entities

(Gain on) / loss from investments in unconsolidated entities ( 3,077 ) 203

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

13 unchanged sentences

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 )

8 unchanged sentences

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

12 unchanged sentences

(in thousands)

Redeemable Noncontrolling Interests Additional Paid-In Capital Accumulated Other Comprehensive Income Retained Earnings Total Stockholders’ Equity

Redeemable Noncontrolling Interests Additional Paid-In Capital Accumulated Other Comprehensive Income / (Loss) Retained Earnings Total Stockholders’ Equity

Common Stock Treasury Stock

16 unchanged sentences

Balance as of June 30, 2025 $ 54,588 53,147 $ 531 $ 537,865 3,312 $ ( 196,458 ) $ 2,603 $ 452,804 $ 797,345

Common stock issued in connection with equity-based plans — 151 2 1,124 — — — — 1,126

Purchase of treasury stock, including transaction costs and excise tax — — — ( 37 ) 225 ( 12,252 ) — — ( 12,289 )

Purchases of redeemable noncontrolling interest ( 612 ) — — ( 138 ) — — — — ( 138 )

Stock-based compensation expense — — — 8,231 — — — — 8,231

Accretion adjustments of redeemable noncontrolling interests to redemption values 2,346 — — ( 2,346 ) — — — — ( 2,346 )

Net income / (loss) attributable to common stockholders ( 238 ) — — — — — — 35,338 35,338

Other comprehensive loss — — — — — — ( 77 ) — ( 77 )

Balance as of September 30, 2025 $ 56,084 53,298 $ 533 $ 544,699 3,537 $ ( 208,710 ) $ 2,526 $ 488,142 $ 827,190

ALARM.COM HOLDINGS, INC.

19 unchanged sentences

Balance as of June 30, 2024 $ 37,933 52,322 $ 523 $ 506,850 3,138 $ ( 186,291 ) $ 1,095 $ 323,292 $ 645,469

Common stock issued in connection with equity-based plans — 148 2 1,104 — — — — 1,106

Changes in excise tax related to previous stock repurchases — — — 51 — — — — 51

Stock-based compensation expense — — — 9,218 — — — — 9,218

Accretion adjustments of redeemable noncontrolling interest to redemption value 2,903 — — ( 2,903 ) — — — — ( 2,903 )

Net income / (loss) attributable to common stockholders ( 226 ) — — — — — — 36,682 36,682

Other comprehensive loss — — — — — — 678 — 678

Balance as of September 30, 2024 $ 40,610 52,470 $ 525 $ 514,320 3,138 $ ( 186,291 ) $ 1,773 $ 359,974 $ 690,301

See accompanying notes to the condensed consolidated financial statements.

1 unchanged sentence

Notes to the Condensed Consolidated Financial Statements (Unaudited)

June 30, 2025 and 2024

September 30, 2025 and 2024

Alarm.com Holdings, Inc.

16 unchanged sentences

It remains difficult to assess or predict the ultimate duration and economic impact of the Macroeconomic Conditions.

The results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of the results that can be expected for our entire fiscal year ending December 31, 2025, which is increasingly true in periods of extreme uncertainty, such as the uncertainty caused by the Macroeconomic Conditions.

The results of operations for the three and nine months ended September 30, 2025 are not necessarily indicative of the results that can be expected for our entire fiscal year ending December 31, 2025, which is increasingly true in periods of extreme uncertainty, such as the uncertainty caused by the Macroeconomic Conditions.

Prolonged uncertainties could cause further economic slowdown or cause other unpredictable events, each of which could adversely affect our business, results of operations or financial condition.

5 unchanged sentences

Estimates are used when accounting for revenue recognition, allowances for credit losses, allowance for hardware returns, estimates of obsolete inventory, long-term incentive compensation, the lease term and incremental borrowing rates for leases, stock-based compensation, income taxes, legal reserves, equity method investments, goodwill, intangible assets and other long-lived assets.

Reclassifications

Certain previously reported amounts in the condensed consolidated balance sheets for the year ended December 31, 2024 have been reclassified to conform to our current presentation, including the addition of the investments in unconsolidated entities as a separate line item.

Significant Accounting Policies

Other than those disclosed herein, there have been no other material changes to our significant accounting policies during the three and nine months ended September 30, 2025 from those disclosed in our Annual Report.

ALARM.COM HOLDINGS, INC.

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

June 30, 2025 and 2024

Significant Accounting Policies

Other than those disclosed herein, there have been no other material changes to our significant accounting policies during the three and six months ended June 30, 2025 from those disclosed in our Annual Report.

September 30, 2025 and 2024

Equity Method Investments

11 unchanged sentences

Recent Accounting Pronouncements

During the three and six months ended June 30, 2025, we did not adopt any new accounting pronouncements.

During the three and nine months ended September 30, 2025, we did not adopt any new accounting pronouncements.

Not Yet Adopted

On December 14, 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740)," which requires additional annual disclosures regarding specific categories in the income tax rate reconciliation as well additional information for reconciling items that meet a quantitative threshold.

On December 14, 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740)," which requires additional annual disclosures regarding specific categories in the income tax rate reconciliation as well as additional information for reconciling items that meet a quantitative threshold.

This amendment also requires annual disclosures regarding the amount of income taxes paid, including income taxes paid disaggregated by (i) federal, state and foreign taxes as well as (ii) individual jurisdictions in which income taxes paid is equal to or greater than five percent of total income taxes paid.

9 unchanged sentences

We are currently assessing the impact this pronouncement will have on our consolidated financial statement disclosures.

On September 18, 2025, the FASB issued ASU 2025-06, "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40)," to align the accounting for software costs with the evolution of software development, including the shift from using a prescriptive and sequential development method to using an incremental and iterative development method.

This amendment clarifies that capitalization of internal-use software costs begins when (i) management has authorized and committed to funding the software project, and (ii) it is probable that the project will be completed and the software will be used to perform the function intended.

Additionally, this amendment supersedes the website development costs guidance and it clarifies certain disclosure requirements for internal-use software costs.

The amendment is effective for annual periods beginning after

ALARM.COM HOLDINGS, INC.

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

June 30, 2025 and 2024

September 30, 2025 and 2024

December 15, 2027, and interim periods within those annual reporting periods.

Early adoption is permitted as of the beginning of an annual reporting period.

This amendment should be applied either on a (i) prospective basis, (ii) retrospective basis to any or all prior periods presented, or (iii) modified transition basis that is based on the status of the project and whether software costs were capitalized before the date of adoption.

We are currently assessing the impact this pronouncement will have on our consolidated financial statements and related disclosures.

Revenue from Contracts with Customers

Contract Assets

Our assets related to costs incurred to obtain a contract primarily consist of capitalized commission costs and upfront payments made to customers.

The current portion of capitalized commission costs and upfront payments made to customers is included in other current assets within our condensed consolidated balance sheets.

The non-current portion of capitalized commission costs and upfront payments made to customers is reflected in other assets within our condensed consolidated balance sheets.

Our assets related to costs incurred to obtain or fulfill a contract primarily consist of capitalized commission costs, upfront payments made to customers and costs incurred on contracts with an outstanding performance obligation.

The current portion of capitalized commission costs, upfront payments made to customers and costs incurred on contracts with an outstanding performance obligation is included in other current assets within our condensed consolidated balance sheets.

The non-current portion of capitalized commission costs, upfront payments made to customers and costs incurred on contracts with an outstanding performance obligation is reflected in other assets within our condensed consolidated balance sheets.

The changes in our contract assets are as follows (in thousands):

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Beginning of period balance $ 13,474 $ 10,905 $ 12,088 $ 9,099

Commission costs and upfront payments to a customer capitalized in period 2,589 2,235 5,773 5,347

Amortization of contract assets ( 2,262 ) ( 1,796 ) ( 4,387 ) ( 3,541 )

Additions to contract assets

6,189 2,355 11,961 7,702

Amortization or satisfaction of outstanding performance obligation of capitalized contract assets

( 2,326 ) ( 1,822 ) ( 6,712 ) ( 5,363 )

End of period balance $ 17,337 $ 11,438 $ 17,337 $ 11,438

3 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

5 unchanged sentences

The components of accounts receivable, net are as follows (in thousands):

September 30,

2025 December 31,

3 unchanged sentences

Accounts receivable, net $ 110,984 $ 126,082

For the three and six months ended June 30, 2025, we recorded a provision for credit losses of $ 0.6 million and $ 1.6 million, respectively, as compared to $ 0.1 million and $ 0.4 million for the same periods in the prior year.

For the three and six months ended June 30, 2025, we recorded a reserve for product returns of $ 0.7 million and $ 1.1 million in our hardware and other revenue, respectively, as compared to $ 0.9 million and $ 2.0 million for the same periods in the prior year.

Historically, we have not experienced write-offs for uncollectible accounts or sales returns that have differed significantly from our estimates.

For the three and nine months ended September 30, 2025, we recorded a recovery of credit losses of $ 0.2 million and a provision for credit losses of $ 1.4 million, respectively, as compared to a provision for credit losses of $ 0.1 million and $ 0.5 million for the same periods in the prior year.

For the three and nine months ended September 30, 2025, we recorded a reserve for product returns of $ 1.3 million and $ 2.4 million in our hardware and other revenue, respectively, as compared to $ 0.7 million and $ 2.7 million for the same periods in

ALARM.COM HOLDINGS, INC.

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

June 30, 2025 and 2024

September 30, 2025 and 2024

the prior year.

Historically, we have not experienced write-offs for uncollectible accounts or sales returns that have differed significantly from our estimates.

Allowance for Credit Losses

9 unchanged sentences

Expected credit losses are estimated over the contractual term of the financial assets and we adjust the term for expected prepayments when appropriate.

For the three and six months ended June 30, 2025, we recorded credit loss expense for accounts receivable and notes receivable of $ 1.1 million and $ 1.8 million, respectively, in general and administrative expense in our condensed consolidated statements of operations.

For the three and six months ended June 30, 2024, we recorded credit loss expense for accounts receivable and notes receivable of $ 0.2 million and $ 4.2 million, respectively, in general and administrative expense in our condensed consolidated statements of operations.

For the three months ended September 30, 2025, we recorded a reduction to credit loss expense for accounts receivable and notes receivable of $ 0.4 million and for the nine months ended September 30, 2025, we recorded credit loss expense for accounts receivable and notes receivable of $ 1.4 million in general and administrative expense in our condensed consolidated statements of operations.

For the three months ended September 30, 2024, we recorded a reduction to credit loss expense for accounts receivable and notes receivable of $ 0.1 million and for the nine months ended September 30, 2024, we recorded credit loss expense for accounts receivable and notes receivable of $ 4.1 million in general and administrative expense in our condensed consolidated statements of operations.

The contractual term excludes expected extensions, renewals and modifications because extension and renewal options are unconditionally cancelable by us.

4 unchanged sentences

(i) outstanding accounts receivable balances within Alarm.com and certain subsidiaries and (ii) outstanding accounts receivable balances within all other subsidiaries.

There were no changes to our portfolio segments for our accounts receivable during the three and six months ended June 30, 2025, and no changes to our policies or practices that influenced our estimate of expected credit losses for accounts receivable.

Additionally, there were no significant changes in the amount of accounts receivable write-offs during the three and six months ended June 30, 2025, as compared to historical periods.

There were no changes to our portfolio segments for our accounts receivable during the three and nine months ended September 30, 2025, and no changes to our policies or practices that influenced our estimate of expected credit losses for accounts receivable.

Additionally, there were no significant changes in the amount of accounts receivable write-offs during the three and nine months ended September 30, 2025, as compared to historical periods.

The changes in our allowance for credit losses for accounts receivable are as follows (in thousands):

Three Months Ended

June 30, 2025 Three Months Ended

June 30, 2024 Six Months Ended

June 30, 2025 Six Months Ended

June 30, 2024

September 30, 2025 Three Months Ended

September 30, 2024 Nine Months Ended

September 30, 2025 Nine Months Ended

September 30, 2024

Subsidiaries All Other

6 unchanged sentences

Beginning of period balance $ ( 4,918 ) $ ( 224 ) $ ( 3,677 ) $ ( 89 ) $ ( 3,777 ) $ ( 93 ) $ ( 3,723 ) $ ( 141 )

(Provision for) / recovery of expected credit losses ( 456 ) ( 119 ) ( 101 ) ( 2 ) ( 1,402 ) ( 150 ) ( 388 ) 31

Recovery of / (provision for) expected credit losses 139 14 ( 103 ) ( 70 ) ( 1,263 ) ( 136 ) ( 491 ) ( 39 )

Write-offs 381 32 90 2 642 51 524 23

End of period balance $ ( 4,398 ) $ ( 178 ) $ ( 3,690 ) $ ( 157 ) $ ( 4,398 ) $ ( 178 ) $ ( 3,690 ) $ ( 157 )

ALARM.COM HOLDINGS, INC.

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

September 30, 2025 and 2024

The components of inventory are as follows (in thousands):

September 30,

2025 December 31,

3 unchanged sentences

Total inventory $ 92,298 $ 87,435

ALARM.COM HOLDINGS, INC.

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

June 30, 2025 and 2024

Asset Acquisition

6 unchanged sentences

The asset acquisition was recorded within our Other segment.

Acquisition of a Business – BTR

On August 15, 2025, EnergyHub, Inc., one of our wholly-owned subsidiaries, acquired all of the issued and outstanding shares of capital stock of Bridge to Renewables, Inc., or BTR.

BTR provides a managed charging solution for electric vehicle manufacturers and drivers.

BTR’s technology integrates directly into a vehicle’s native mobile app, delivering utility program enrollment, charging insights and incentives to electric vehicle drivers.

The acquisition is anticipated to expand EnergyHub’s ecosystem of automotive partners and strengthen its end-to-end managed charging offering, supporting improved driver engagement and grid optimization for utility clients.

In consideration for the purchase of BTR, we paid $ 12.4 million in cash on August 15, 2025, after deducting $ 1.6 million related to agreed holdback provisions.

The acquisition was accounted for as a business combination within the Other segment.

The purchase price allocation was not finalized as of the date of this Quarterly Report on Form 10-Q and is pending the final determination of the working capital adjustment as well as tax adjustments.

The overall impacts to our condensed consolidated financial statements were not considered material for the three and nine months ended September 30, 2025.

Acquisition of a Business – CHeKT

6 unchanged sentences

The remaining $ 3.0 million of the holdback is expected to be paid to the stockholders of CHeKT by the end of the second quarter of 2026, subject to offset for any indemnification obligations.

As a result of the acquisition of CHeKT, we recorded approximately $ 0.3 million in acquisition-related costs for the three and six months ended June 30, 2025.

As a result of the acquisition of CHeKT, we recorded approximately $ 0.5 million in acquisition-related costs for the nine months ended September 30, 2025.

These costs include expenses directly related to acquiring CHeKT, are expensed as incurred and are included in general and administrative expense in our condensed consolidated statements of operations.

The purchase price allocation was not finalized as of the filing date of this Quarterly Report on Form 10-Q and is primarily pending additional tax adjustments, including the assessment of any net operating losses acquired and the related limitations on any identified net operating losses.

The purchase price allocation was not finalized as of the filing date of this Quarterly Report on Form 10-Q and is pending the final determination of potential future tax adjustments, including the assessment of any net operating losses

ALARM.COM HOLDINGS, INC.

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

June 30, 2025 and 2024

September 30, 2025 and 2024

acquired and the related limitations on any identified net operating losses.

The table below sets forth the purchase consideration and the preliminary allocation used to estimate the fair value of the tangible and intangible net assets acquired (in thousands):

35 unchanged sentences

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

June 30, 2025 and 2024

September 30, 2025 and 2024

We valued the trade names acquired using a relief from royalty method.

7 unchanged sentences

This redeemable noncontrolling interest is considered temporary equity and we report it between liabilities and stockholders’ equity in the condensed consolidated balance sheets.

The redemption value of the CHeKT noncontrolling interest was $ 6.4 million as of February 10, 2025 and June 30, 2025.

The redemption value of the CHeKT noncontrolling interest was $ 6.4 million as of February 10, 2025 and $ 6.3 million as of September 30, 2025.

Business Combinations in Operations - CHeKT

The operations of the CHeKT business combination discussed above were included in the condensed consolidated financial statements as of the acquisition date.

The pro forma information as well as the revenue and net income of the business combination were not material to the condensed consolidated financial statements for the three and six months ended June 30, 2025.

Goodwill and Intangible Assets, Net

5 unchanged sentences

Foreign currency translation adjustment 821 — 821

Balance as of June 30, 2025 $ 178,657 $ — $ 178,657

Balance as of September 30, 2025 $ 178,611 $ 3,099 $ 181,710

On February 10, 2025, we acquired 81 % of the issued and outstanding shares of capital stock of CHeKT and 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 $ 3.0 million of goodwill in the Other segment, which reflects the value of acquired workforce and synergies we expect to achieve from integrating BTR's managed charging solution into our existing solutions.

The following table reflects changes in the net carrying amount of the components of intangible assets (in thousands):

6 unchanged sentences

Amortization ( 6,240 ) ( 6,653 ) ( 177 ) ( 299 ) — ( 13,369 )

Balance as of June 30, 2025 $ 26,094 $ 35,743 $ 1,220 $ 3,055 $ 46 $ 66,158

We recorded $ 4.7 million and $ 9.2 million of amortization related to our intangible assets for the three and six months ended June 30, 2025, respectively, as compared to $ 4.7 million and $ 9.4 million for the same periods in the prior year.

There were no impairments of long-lived intangible assets during the three and six months ended June 30, 2025 and 2024.

During the six months ended June 30, 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.

Balance as of September 30, 2025 $ 28,558 $ 38,009 $ 1,381 $ 3,220 $ 46 $ 71,214

We recorded $ 4.8 million and $ 14.0 million of amortization related to our intangible assets for the three and nine months ended September 30, 2025, respectively, as compared to $ 4.4 million and $ 13.8 million for the same periods in the prior year.

There were no impairments of long-lived intangible assets during the three and nine months ended September 30, 2025 and

ALARM.COM HOLDINGS, INC.

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

June 30, 2025 and 2024

September 30, 2025 and 2024

During the nine months ended September 30, 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):

June 30, 2025

September 30, 2025

Amount Accumulated

17 unchanged sentences

Total intangible assets $ 206,796 $ ( 143,637 ) $ 63,159 4.6

ALARM.COM HOLDINGS, INC.

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

June 30, 2025 and 2024

Investments in Unconsolidated Entities

4 unchanged sentences

We do not have a controlling financial interest in Safe Haven or All Access, but based on the legal form of Safe Haven and All Access, our level of ownership and our extent of influence, we concluded that the equity investments in Safe Haven and All Access, which are included in the Alarm.com segment, do not meet the criteria for consolidation and will be accounted for under the equity method of accounting.

As of June 30, 2025, the carrying value of our equity investments in Safe Haven and All Access exceeded our share of Safe Haven's and All Access' net assets primarily due to trade name intangible assets, customer relationship intangible assets and goodwill.

As of September 30, 2025, the carrying value of our equity investments in Safe Haven and All Access exceeded our share of Safe Haven's and All Access' net assets primarily due to trade name intangible assets, customer relationship intangible assets and goodwill.

Trade names and customer relationships are definite-lived intangible assets and are amortized on an attribution method based on the projected discounted cash flows over useful lives ranging from nine years to 14 years.

We are not obligated to fund losses of Safe Haven or All Access, when applicable.

ALARM.COM HOLDINGS, INC.

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

September 30, 2025 and 2024

Investment in Safe Streets USA, LLC, or Safe Streets

1 unchanged sentence

We do not have a controlling financial interest in Safe Streets, but based on the legal form of Safe Streets, our level of ownership and our extent of influence, we concluded that this equity investment in Safe Streets, which is included in the Alarm.com segment, does not meet the criteria for consolidation and will be accounted for under the equity method of accounting.

As of June 30, 2025, the carrying value of our equity investment in Safe Streets exceeded our share of Safe Streets' net assets primarily due to trade name intangible assets, customer relationship intangible assets and goodwill.

As of September 30, 2025, the carrying value of our equity investment in Safe Streets exceeded our share of Safe Streets' net assets primarily due to trade name intangible assets, customer relationship intangible assets and goodwill.

Trade names and customer relationships are definite-lived intangible assets and are amortized on an attribution method based on the projected discounted cash flows over their useful lives of 10 years and 11 years, respectively.

We are not obligated to fund losses of Safe Streets, when applicable.

Investment in a Hardware Supplier

3 unchanged sentences

Under the alternative, we measure investments without readily determinable fair values at cost, less impairment, adjusted for observable price changes from orderly transactions for identical or similar investments.

As of June 30, 2025 and December 31, 2024, our investment in the hardware supplier was $ 5.6 million.

As of September 30, 2025 and December 31, 2024, our investment in the hardware supplier was $ 5.6 million.

Investments in Technology Partners

2 unchanged sentences

Under the measurement alternative, we measure investments without readily determinable fair values at cost, less impairment, adjusted for observable price changes from orderly transactions for identical or similar investments.

As of June 30, 2025 and December 31, 2024, our investment in the technology partner was $ 5.7 million.

As of September 30, 2025 and December 31, 2024, our investment in the technology partner was $ 5.7 million.

In December 2022, we paid $ 5.1 million in cash to another technology partner to purchase 4,231,717 shares of its Series A Preferred Stock.

The $ 5.1 million equity investment, which is included in the Alarm.com segment, does not meet the criteria for consolidation and is accounted for using the measurement alternative.

As of June 30, 2025 and December 31, 2024, our investment in the technology partner was $ 5.1 million.

ALARM.COM HOLDINGS, INC.

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

June 30, 2025 and 2024

As of September 30, 2025 and December 31, 2024, our investment in the technology partner was $ 5.1 million.

In December 2023, we paid $ 1.5 million to another technology partner as part of a Simple Agreement for Future Equity, or SAFE.

5 unchanged sentences

As of June 30, 2025 and December 31, 2024, our investment in the technology partner was $ 4.5 million.

As of September 30, 2025 and December 31, 2024, our investment in the technology partner was $ 4.5 million.

ALARM.COM HOLDINGS, INC.

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

September 30, 2025 and 2024

Summary of Investments in Unconsolidated Entities

Our investments in unconsolidated entities are as follows (in thousands):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Ownership Percentage

11 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

2 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

3 unchanged sentences

Distributions received from equity method investees

June 30, 2025 December 31, 2024

4,014 — 4,014 —

September 30, 2025 December 31, 2024

Outstanding principal from loans to equity method investees

6 unchanged sentences

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

June 30, 2025 and 2024

September 30, 2025 and 2024

Loan to Safe Streets

4 unchanged sentences

The maturity date of the loan is January 30, 2030.

As of June 30, 2025, $ 21.5 million of principal was outstanding from Safe Streets under the loan agreement.

As of September 30, 2025, $ 21.5 million of principal was outstanding from Safe Streets under the loan agreement.

Loan to a Distribution Partner

5 unchanged sentences

During the three months ended June 30, 2024, we wrote off the entire $ 4.0 million outstanding note receivable balance that originated in 2017 and reversed the previously recorded allowance for credit losses.

For the three and six months ended June 30, 2025, we recognized $ 0.4 million and $ 0.9 million of revenue from the distribution partner associated with this loan, respectively, as compared to $ 0.6 million and $ 1.3 million for the same periods in the prior year.

For the three and nine months ended September 30, 2025, we recognized $ 0.4 million and $ 1.3 million of revenue from the distribution partner associated with this loan, respectively, as compared to $ 0.7 million and $ 2.0 million for the same periods in the prior year.

Loan to a Service Provider Partner

1 unchanged sentence

Interest on the outstanding principal accrues at a rate per annum equal to 9.0 % and monthly interest and principal payments began in April 2021.

The maturity date of the loan is July 24, 2025.

As of June 30, 2025 and December 31, 2024, $ 1.0 million of principal was outstanding from the service provider partner under the loan agreement.

The maturity date of the loan was July 24, 2025.

In July 2025, we learned that this service provider partner may have a lien placed on its property that may have a priority over our security interest.

Based on the information provided by the service provider partner, during the three months ended June 30, 2025, we recorded a credit loss expense of $ 0.7 million in general and administrative expense and we placed this loan in nonaccrual status as of June 30, 2025.

For the three and six months ended June 30, 2025 and 2024, we recognized less than $ 0.1 million and $ 0.1 million of revenue from the service provider partner associated with this loan, respectively.

As of September 30, 2025 and December 31, 2024, $ 0.9 million and $ 1.0 million of principal was outstanding from the service provider partner under the loan agreement, respectively.

For the three and nine months ended September 30, 2025 and 2024, we recognized less than $ 0.1 million and $ 0.1 million of revenue from the service provider partner associated with this loan, respectively.

Allowance for Credit Losses - Notes Receivable

We identified one portfolio segment, loan receivables, for our notes receivable.

There were no changes to our policies or practices involving the issuance of notes receivable, customer acquisitions or any other factors that influenced our estimate of expected credit losses for notes receivable during the three and six months ended June 30, 2025.

We do not accrue interest on notes receivable that are considered impaired or are 90 days or greater past due based on their contractual payment terms.

5 unchanged sentences

We write-off any accrued interest on notes receivable that are considered impaired or are 90 days or greater past due based on their contractual payment terms by reversing interest income.

The accrued interest receivable as of June 30, 2025 and December 31, 2024 was $ 0.7 million and $ 0.2 million, respectively, and is reflected in other current assets and other assets within our condensed consolidated balance sheets and excluded from the amortized cost basis of the notes receivable .

During the six months ended June 30, 2024, we recorded a reduction to our interest income of $ 0.5 million related to the reversal of payable in kind interest associated with a subordinated credit agreement with the Affiliate.

We did not write off any accrued interest receivable during the three and six months ended June 30, 2025 or the three months ended June 30, 2024.

The accrued interest receivable as of September 30, 2025 and December 31, 2024 was $ 0.8 million and $ 0.2 million, respectively, and is reflected in other current assets and other assets within our condensed consolidated balance sheets and excluded from the amortized cost basis of the notes receivable .

During the nine months ended September 30, 2024, we recorded a reduction to our interest income of $ 0.5 million related to the reversal of payable in kind interest associated with a subordinated credit agreement with the Affiliate.

We did not write off any accrued interest receivable during the three and nine months ended September 30, 2025 or the three months ended September 30, 2024.

ALARM.COM HOLDINGS, INC.

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

June 30, 2025 and 2024

There were no purchases or sales of financial assets during the three and six months ended June 30, 2025 and 2024.

During the three and six months ended June 30, 2024, we wrote off $ 4.0 million related to a note receivable that originated in 2017 with the Affiliate and reversed the previously recorded allowance for credit losses.

September 30, 2025 and 2024

There were no purchases or sales of financial assets during the three and nine months ended September 30, 2025 and 2024.

During the three and nine months ended September 30, 2024, we wrote off $ 4.0 million related to a note receivable that originated in 2017 with the Affiliate and reversed the previously recorded allowance for credit losses.

The changes in our allowance for credit losses for notes receivable are as follows (in thousands):

Three Months Ended

June 30, 2025 Three Months Ended

June 30, 2024 Six Months Ended

June 30, 2025 Six Months Ended

June 30, 2024

September 30, 2025 Three Months Ended

September 30, 2024 Nine Months Ended

September 30, 2025 Nine Months Ended

September 30, 2024

Beginning of period balance $ ( 750 ) $ ( 1 ) $ ( 1 ) $ ( 5 )

5 unchanged sentences

The following tables reflect the current and delinquent notes receivable by class of financing receivables and by year of origination (in thousands):

June 30, 2025

September 30, 2025

Loan Receivables:

15 unchanged sentences

Total $ 500 $ 146 $ 1,500 $ — $ 993 $ — $ 3,139

There was one note receivable placed on nonaccrual status as of June 30, 2025 and no notes receivable placed on nonaccrual status as of December 31, 2024.

During the three and six months ended June 30, 2025 and 2024, there was no interest income recognized related to notes receivable that were in nonaccrual status.

As of June 30, 2025, there was $ 0.2 million of notes receivable placed in nonaccrual status for which there was not a related allowance for credit losses.

There was one note receivable placed on nonaccrual status as of September 30, 2025 and no notes receivable placed on nonaccrual status as of December 31, 2024.

During the three and nine months ended September 30, 2025 and 2024, there was no interest income recognized related to notes receivable that were in nonaccrual status.

As of September 30, 2025, there was $ 0.2 million of notes receivable placed in nonaccrual status for which there was not a related allowance for credit losses.

As of December 31, 2024, there were no notes receivable placed in nonaccrual status for which there was not a related allowance for credit losses.

As of June 30, 2025 and December 31, 2024, there were no notes receivable that were 90 days or greater past due for which we continued to accrue interest income.

As of September 30, 2025 and December 31, 2024, there were no notes receivable that were 90 days or greater past due for which we continued to accrue interest income.

Prepaid Expenses

As of June 30, 2025 and December 31, 2024, $ 22.1 million and $ 16.1 million of prepaid expenses were included in other current assets, respectively, primarily related to software licenses, long lead-time parts related to our inventory and insurance.

As of September 30, 2025 and December 31, 2024, $ 24.5 million and $ 16.1 million of prepaid expenses were included in other current assets, respectively, primarily related to software licenses, long lead-time parts related to our inventory and insurance.

ALARM.COM HOLDINGS, INC.

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

June 30, 2025 and 2024

September 30, 2025 and 2024

Fair Value Measurements

2 unchanged sentences

Level 1 Level 2 Level 3 Total

Money market accounts as of June 30, 2025

Money market accounts as of September 30, 2025

$ 1,055,376 $ — $ — $ 1,055,376

1 unchanged sentence

1,209,474 — — 1,209,474

Equity securities with readily determinable fair value as of June 30, 2025

Equity securities with readily determinable fair value as of September 30, 2025

11,550 — — 11,550

1 unchanged sentence

7,425 — — 7,425

Contingent consideration liability from acquisition as of June 30, 2025

Contingent consideration liability from acquisition as of September 30, 2025

$ — $ — $ 1,155 $ 1,155

3 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

3 unchanged sentences

End of period balance $ 1,155 $ 2,166 $ 1,155 $ 2,166

As of June 30, 2025, $ 1.01 billion of our money market accounts was included in cash and cash equivalents, $ 6.1 million was included in other assets and $ 2.0 million was included in other current assets in our condensed consolidated balance sheets.

As of December 31, 2024, $ 1.20 billion of our money market accounts was included in cash and cash equivalents, $ 1.9 million was included in other current assets and $ 6.2 million was included in other assets in our condensed consolidated balance sheets.

As of September 30, 2025, $ 1.05 billion of our money market accounts was included in cash and cash equivalents, $ 6.2 million was included in other assets and $ 1.9 million was included in other current assets in our condensed consolidated balance sheets.

As of December 31, 2024, $ 1.20 billion of our money market accounts was included in cash and cash equivalents, $ 6.2 million was included in other assets and $ 1.9 million was included in other current assets in our condensed consolidated balance sheets.

Our assets from money market accounts are valued using quoted prices in active markets.

Our equity securities with readily determinable fair value represent our investments in publicly traded companies, which are valued using quoted prices in active markets.

During the three and six months ended June 30, 2025, we recorded an unrealized loss on equity securities of $ 1.5 million and $ 3.8 million, respectively, as compared to less than $ 0.1 million for the same periods in the prior year.

Our investments in public entities are recorded at fair value within other current assets in our condensed consolidated balance sheets and changes in fair value of the investments are recorded within other expense, net within our condensed consolidated statements of operations.

See Note 13 for the carrying amounts and estimated fair values of our convertible senior notes as of June 30, 2025 and December 31, 2024.

During the three and nine months ended September 30, 2025, we recorded an unrealized gain on equity securities of $ 3.6 million and an unrealized loss on equity securities of $ 0.1 million, respectively, as compared to an unrealized loss of $ 0.2 million for the same periods in the prior year.

Our investments in public entities are recorded at fair value within other current assets in our condensed consolidated balance sheets and changes in fair value of the investments are recorded within other income / (expense), net within our condensed consolidated statements of operations.

See Note 13 for the carrying amounts and estimated fair values of our convertible senior notes as of September 30, 2025 and December 31, 2024.

The contingent consideration liability consists of the potential earn-out payment related to our acquisition of 100 % of the issued and outstanding capital stock of EBS on January 18, 2023.

4 unchanged sentences

At each reporting date until December 31, 2026, or the achievement of the performance targets, we will remeasure the liability, using the same valuation approach.

The fair value of the contingent consideration liability as of June 30, 2025 was included within accounts payable, accrued expenses and other current liabilities within our condensed consolidated balance sheet.

The fair value of the contingent consideration liability as of September 30, 2025 was included within accounts payable, accrued expenses and other current liabilities within our condensed consolidated balance sheet.

Changes in fair value resulting from information that existed subsequent to the acquisition date are recorded in general and administrative expense in the condensed consolidated statements of operations.

One of the performance targets was achieved during the six months ended June 30, 2025, and the related payment of $ 1.3 million was made during the second quarter of 2025.

The unobservable inputs used in the valuation for the remaining performance target as of June 30, 2025 included an expected achievement percentage of 50.0 %.

One of the performance targets was achieved during the nine months ended September 30, 2025, and the related payment of $ 1.3 million was made during the second quarter of 2025.

The unobservable inputs used in the valuation for the remaining performance target as of September 30, 2025 included an expected achievement percentage of 95.0 %.

The valuation also included a weighted average discount rate of 5.0 %, weighted by the probability of achievement of the performance targets at various dates, including a range of 5.0 % to 5.1 %.

Selecting another probability of

Selecting another

ALARM.COM HOLDINGS, INC.

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

June 30, 2025 and 2024

expected achievement or discount rate within an acceptable range would not result in a significant change to the fair value of the contingent consideration liability.

September 30, 2025 and 2024

probability of expected achievement or discount rate within an acceptable range would not result in a significant change to the fair value of the contingent consideration liability.

We monitor the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy.

Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another.

There were no transfers into or out of Level 3 or reclassifications between levels of the fair value hierarchy during the three and six months ended June 30, 2025 and 2024.

As of June 30, 2025, we leased office space, data centers and office equipment under non-cancelable operating leases with various expiration dates through 2034.

There were no transfers into or out of Level 3 or reclassifications between levels of the fair value hierarchy during the three and nine months ended September 30, 2025 and 2024.

As of September 30, 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.

4 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

2 unchanged sentences

Operating lease right-of-use assets obtained in exchange for new operating lease liabilities 4,274 34,434 8,674 37,349

September 30,

2025 December 31,

12 unchanged sentences

(2) Imputed interest was calculated using the incremental borrowing rate applicable for each lease.

Our finance leases and subleases were not material to the condensed consolidated financial statements as of June 30, 2025.

Our finance leases and subleases were not material to the condensed consolidated financial statements as of September 30, 2025.

We did not have any finance leases or subleases as of December 31, 2024.

Our lease agreements do not contain any material residual value guarantees, restrictive covenants or variable lease payments.

Short-term lease costs were immaterial for the three and six months ended June 30, 2025 and 2024.

Short-term lease costs were immaterial for the three and nine months ended September 30, 2025 and 2024.

ALARM.COM HOLDINGS, INC.

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

June 30, 2025 and 2024

September 30, 2025 and 2024

The components of accounts payable, accrued expenses and other current liabilities are as follows (in thousands):

September 30,

2025 December 31,

7 unchanged sentences

The components of other liabilities are as follows (in thousands):

September 30,

2025 December 31,

Holdback liability from business combinations and asset acquisitions

$ 1,500 $ 200

Contingent consideration liability from acquisition — 953

19 unchanged sentences

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

June 30, 2025 and 2024

September 30, 2025 and 2024

respect to the 2026 Notes called (or deemed called) for redemption;

1 unchanged sentence

On or after August 15, 2025, until the close of business on the second scheduled trading day immediately preceding the maturity date of the 2026 Notes, holders of the 2026 Notes may convert all or any portion of their 2026 Notes at any time, regardless of the foregoing conditions.

Upon conversion, we may satisfy our conversion obligation by paying or delivering, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election.

It is our current intent to settle the principal amount of the 2026 Notes with cash.

Upon conversion, prior to August 15, 2025, we had the ability to satisfy our conversion obligation by paying or delivering, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election.

It was our intent to settle the principal amount of the 2026 Notes with cash.

On or after August 15, 2025, we must pay cash to satisfy the principal portion of our conversion obligation and must deliver shares to satisfy any excess conversion value.

The initial conversion rate for the 2026 Notes is 6.7939 shares of our common stock per $1,000 principal amount of 2026 Notes, which is equivalent to an initial conversion price of $ 147.19 per share of our common stock, subject to adjustment under certain circumstances in accordance with the terms of the 2026 Indenture.

6 unchanged sentences

The debt issuance costs are presented as a deduction from the outstanding principal balance of the 2026 Notes and are amortized to interest expense using the effective interest method over the contractual term of the 2026 Notes at a rate of 0.6 %.

As of June 30, 2025 and December 31, 2024, the fair value of our 2026 Notes was $ 486.0 million and $ 473.8 million, respectively.

As of September 30, 2025 and December 31, 2024, the fair value of our 2026 Notes was $ 492.0 million and $ 473.8 million, respectively.

The fair value was determined based on the quoted price of the 2026 Notes in an inactive market on the last traded day of the quarter and has been classified as Level 2 in the fair value hierarchy.

Based on the closing price of our common stock of $ 56.57 on the last trading day of the quarter, the if-converted value of the 2026 Notes did not exceed the principal amount of $ 500.0 million as of June 30, 2025.

Based on the closing price of our common stock of $ 53.08 on the last trading day of the quarter, the if-converted value of the 2026 Notes did not exceed the principal amount of $ 500.0 million as of September 30, 2025.

The net carrying amount of the liability component of the 2026 Notes is as follows (in thousands):

September 30,

2025 December 31,

4 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

3 unchanged sentences

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

June 30, 2025 and 2024

September 30, 2025 and 2024

Convertible Senior Notes - 2029 Notes

23 unchanged sentences

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

June 30, 2025 and 2024

September 30, 2025 and 2024

We account for the 2029 Notes as a liability.

The debt issuance costs are presented as a deduction from the outstanding principal balance of the 2029 Notes and are amortized to interest expense using the effective interest method over the contractual term of the 2029 Notes at a rate of 2.9 %.

As of June 30, 2025 and December 31, 2024, the fair value of our 2029 Notes was $ 484.5 million and $ 496.7 million, respectively.

As of September 30, 2025 and December 31, 2024, the fair value of our 2029 Notes was $ 479.4 million and $ 496.7 million, respectively.

The fair value was determined based on the quoted price of the 2029 Notes in an inactive market on the last traded day of the quarter and has been classified as Level 2 in the fair value hierarchy.

Based on the closing price of our common stock of $ 56.57 on the last trading day of the quarter, the if-converted value of the 2029 Notes did not exceed the principal amount of $ 500.0 million as of June 30, 2025.

Based on the closing price of our common stock of $ 53.08 on the last trading day of the quarter, the if-converted value of the 2029 Notes did not exceed the principal amount of $ 500.0 million as of September 30, 2025.

The net carrying amount of the liability component of the 2029 Notes is as follows (in thousands):

September 30,

2025 December 31,

4 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

24 unchanged sentences

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

June 30, 2025 and 2024

September 30, 2025 and 2024

Legal Proceedings

12 unchanged sentences

Three of the patents were found unpatentable in reexamination.

EcoFactor appealed the decision with respect to one of the patents to the United States Court of Appeals for the Federal Circuit on July 9, 2024, EcoFactor has until October 3, 2025 to appeal the rejection of the second patent to the Federal Circuit, and EcoFactor appealed the rejection of the third patent to the U.S.

Patent Trial and Appeal Board, or PTAB, filing its appeal brief on June 10, 2024.

EcoFactor appealed the decision with respect to one of the patents to the United States Court of Appeals for the Federal Circuit on July 9, 2024, the decision with respect to the second patent was affirmed by the U.S.

Patent Trial and Appeal Board, or PTAB, on August 1, 2025, and EcoFactor is appealing the rejection of the third patent to the PTAB, having filed its appeal brief on June 10, 2024.

Ex parte reexamination of a fourth patent concluded on August 23, 2023 after the claims were amended.

9 unchanged sentences

On September 3, 2021, the court issued an order staying the lawsuit until the ITC investigation described below is finally resolved.

Two of the four patents at issue have been found invalid by the PTAB and those decisions were upheld by the Federal Circuit on September 5, 2025 and October 15, 2025.

On July 28, 2021, Causam filed a complaint with the ITC naming Alarm.com Incorporated, Alarm.com Holdings, Inc., and EnergyHub, Inc., among others, as proposed respondents.

The complaint alleges infringement of the same four patents Causam asserted in district court.

Causam is seeking a permanent limited exclusion order and permanent cease and desist order.

Causam sought a permanent limited exclusion order and permanent cease and desist order.

On August 27, 2021, the ITC instituted an investigation into Causam’s allegations naming Alarm.com Incorporated, Alarm.com Holdings, Inc., EnergyHub Inc.

6 unchanged sentences

Causam did not appeal the ITC decision with respect to Alarm.com and EnergyHub.

Oral arguments on the appeal are scheduled for September 3, 2025.

Should Causam prevail in its district court lawsuit we could be required to pay damages and/or a reasonable royalty for sales of our solution, we could be enjoined from making, using and selling our solution if a license or other right to continue selling such elements is not made available to us, and we could be required to pay ongoing royalties and comply with unfavorable terms if such a license is made available to us.

The appeal was dismissed as moot on October 15, 2025, based on the Federal Circuit’s affirmance, on the same day, of a PTAB decision that found the patent at issue in the appeal is invalid.

Once all appeal proceedings are completed, which we expect will occur either in the fourth quarter of 2025 or the first quarter of 2026, Causam may seek to lift the stay of the district court action.

Should Causam choose to pursue the district court lawsuit, and prevail, then we could be required to pay damages and/or a reasonable royalty for sales of our solution, we could be enjoined from making, using and selling our solution if a license or other right to continue selling such elements is not made available to us, and we could be required to pay ongoing royalties and comply with unfavorable terms if such a license is made available to us.

While we believe we have valid defenses to Causam’s claims, the outcome of these legal claims cannot be predicted with certainty, and any of these outcomes could result in an adverse effect on our business.

3 unchanged sentences

SkyBell is seeking injunctive relief, enhanced damages, attorneys’ fees, a constructive trust, and an order that Alarm.com assign to SkyBell the alleged trade secrets.

We have not yet responded to the complaint.

On August 25, 2025, we moved to dismiss the complaint as barred by the statute of limitations.

Should SkyBell prevail in its lawsuit, we could be required to pay damages and/or a reasonable royalty for sales of our solution, we could be enjoined from making, using and selling our solution if a license or other right to continue selling such elements is not made available to us, we could be required to pay ongoing royalties and comply with unfavorable terms if such a license is made available to us, and we could be required to assign, transfer, and return any SkyBell trade secret that we are found to improperly possess.

While we believe we have valid defenses to SkyBell’s claims, the outcome of these legal claims cannot be predicted with certainty, and any of these outcomes could result in an adverse effect on our business.

Based on currently available information, we have determined a loss is not probable or reasonably estimable at this time.

In addition to the matters described above, we may be required to provide indemnification to certain of our service provider partners for certain claims regarding our solutions.

For example, we incurred costs associated with the indemnification of our service provider Central Security Group – Nationwide, Inc.

(d/b/a Alert 360), or CSG, in an ongoing patent litigation.

While we believe we have valid defenses to SkyBell’s claims, the outcome of these legal claims

ALARM.COM HOLDINGS, INC.

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

June 30, 2025 and 2024

Ubiquitous Connectivity, LP, or Ubiquitous, brought suit against CSG in U.S.

District Court, Northern District of Oklahoma, alleging infringement of two U.S.

The case was stayed by agreement of the parties for several years while the patents in suit were challenged before the PTAB.

In January 2021, the PTAB deemed 42 out of 46 claims of the two asserted patents unpatentable.

Ubiquitous appealed a portion of the PTAB’s findings to the United States Court of Appeals for the Federal Circuit.

The Federal Circuit affirmed the PTAB’s ruling on August 8, 2023.

As a result, only four patent claims remain at issue and the Northern District of Oklahoma case is no longer stayed.

The case is currently in the discovery phase.

The court held a claim construction hearing on December 12, 2024, and rendered a claim construction opinion on May 20, 2025.

A hearing on dispositive motions, including for summary judgment, is scheduled for April 15, 2026.

A trial is scheduled for July 6, 2026.

Should Ubiquitous prevail on its infringement claims, we could be required to indemnify CSG for damages in the form of a reasonable royalty or of Ubiquitous’s lost profits.

CSG could be enjoined from making, using, and selling our solution if a license or other right to continue selling our technology is not made available or if we are unable to design around such patents, and we could be required to pay ongoing royalties and comply with unfavorable terms if such a license is made available to us.

The outcome of these legal claims cannot be predicted with certainty.

September 30, 2025 and 2024

cannot be predicted with certainty, and any of these outcomes could result in an adverse effect on our business.

Based on currently available information, we have determined a loss is not probable or reasonably estimable at this time.

In addition to the matters described above, we may be required to provide indemnification to certain of our service provider partners for certain claims regarding our solutions.

We may also be a party to litigation and subject to claims incident to the ordinary course of business.

6 unchanged sentences

On May 24, 2024, our board of directors authorized the repurchase of our common stock in connection with the issuance of the 2029 Notes and also authorized a stock repurchase program, effective May 31, 2024, under which we are authorized to purchase up to an aggregate of $ 100.0 million of our outstanding common stock during the two-year period ending May 31, 2026.

During the three and six months ended June 30, 2025, we repurchased 88,000 and 174,400 shares of our common stock under this program for $ 5.1 million and $ 10.2 million, respectively, which includes applicable commissions and fees.

During the three and six months ended June 30, 2024, we repurchased 1,117,068 shares of our common stock under our stock repurchase program authorized in connection with the issuance of the 2029 Notes for $ 75.0 million.

During the three and nine months ended September 30, 2025, we repurchased 225,094 and 399,494 shares of our common stock under this program for $ 12.2 million and $ 22.4 million, respectively, which includes applicable commissions and fees.

No shares were repurchased under our stock repurchase program during the three months ended September 30, 2024.

During the nine months ended September 30, 2024, 1,117,068 shares were repurchased for $ 75.0 million under our stock repurchase program.

We are subject to a 1.0% excise tax on the value of net corporate stock repurchases under the Inflation Reduction Act of 2022.

3 unchanged sentences

These withheld shares are not issued or considered common stock repurchases under our stock repurchase program.

No tax withholdings related to the vesting of restricted stock units were paid during the three and six months ended June 30, 2025.

We paid $ 3.4 million of tax withholding related to vesting of restricted stock units during the three and six months ended June 30, 2024.

No tax withholdings related to the vesting of restricted stock units were paid during the three and nine months ended September 30, 2025.

No tax withholdings related to the vesting of restricted stock units were paid during the three months ended September 30, 2024.

We paid $ 3.4 million of tax withholdings related to vesting of restricted stock units during the nine months ended September 30, 2024.

ALARM.COM HOLDINGS, INC.

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

June 30, 2025 and 2024

September 30, 2025 and 2024

Stock-Based Compensation

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

7 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

5 unchanged sentences

$ ( 215 ) $ ( 34 ) $ ( 765 ) $ 1,097

We granted 99,000 and 134,000 stock options pursuant to our 2015 Equity Incentive Plan during the three and six months ended June 30, 2025, respectively, as compared to 93,500 and 99,500 stock options for the same periods in the prior year.

There were 23,572 and 45,287 stock options exercised during the three and six months ended June 30, 2025, respectively, as compared to 14,467 and 142,993 stock options for the same periods in the prior year.

There was an aggregate of 311,138 and 374,210 restricted stock units without performance conditions granted to certain of our employees and directors during the three and six months ended June 30, 2025, respectively, as compared to an aggregate of 241,728 and 329,878 restricted stock units without performance conditions for the same periods in the prior year.

There were no restricted stock units with performance conditions granted to our employees during the three and six months ended June 30, 2025 and 2024.

There were 219,074 and 291,058 restricted stock units without performance conditions that vested during the three and six months ended June 30, 2025, respectively, as compared to 209,087 and 290,783 restricted stock units without performance conditions vested during the same periods in the prior year.

There were zero and 30,667 restricted stock units with performance conditions that vested during the three and six months ended June 30, 2025, respectively, as compared to 33,395 restricted stock units with performance conditions vested during each of the three and six months ended June 30, 2024.

We granted 7,500 and 141,500 stock options pursuant to our 2015 Equity Incentive Plan during the three and nine months ended September 30, 2025, respectively, as compared to 34,000 and 133,500 stock options for the same periods in the prior year.

There were 16,738 and 62,025 stock options exercised during the three and nine months ended September 30, 2025, respectively, as compared to 11,280 and 154,273 stock options for the same periods in the prior year.

There was an aggregate of 121,502 and 495,712 restricted stock units without performance conditions granted to certain of our employees and directors during the three and nine months ended September 30, 2025, respectively, as compared to an aggregate of 134,925 and 464,803 restricted stock units without performance conditions for the same periods in the prior year.

There were no restricted stock units with performance conditions granted to our employees during the three and nine months ended September 30, 2025 and 2024.

There were 120,540 and 411,598 restricted stock units without performance conditions that vested during the three and nine months ended September 30, 2025, respectively, as compared to 121,087 and 411,870 restricted stock units without performance conditions vested during the same periods in the prior year.

There were zero and 30,667 restricted stock units with performance conditions that vested during the three and nine months ended September 30, 2025, respectively, as compared to zero and 33,395 restricted stock units with performance conditions vested during the same periods in the prior year.

ALARM.COM HOLDINGS, INC.

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

June 30, 2025 and 2024

September 30, 2025 and 2024

Earnings Per Share

2 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

13 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

5 unchanged sentences

We use the if-converted method when calculating the dilutive impact of the 2026 Notes and 2029 Notes on net income per share.

As a result, we included 3,396,950 shares related to the 2026 Notes within the weighted average shares outstanding when calculating the diluted net income per share for each of the three and six months ended June 30, 2025 and 2024.

We included 5,728,550 shares related to the 2029 Notes within the weighted average shares outstanding when calculating the diluted net income per share for the three and six months ended June 30, 2025, as compared to 1,951,484 and 975,742 shares during the same periods in the prior year.

Additionally, we included $ 3.2 million and $ 6.5 million of interest expense and debt issuance cost amortization, net of tax, within the numerator of the diluted net income per share for the three and six months ended June 30, 2025, respectively, as compared to $ 1.5 million and $ 2.1 million for the same periods in the prior year.

On or after August 15, 2025, we must pay cash to satisfy the principal portion of our conversion obligation and must deliver shares to satisfy any excess conversion value.

As a result, we included 1,661,552 and 2,812,127 shares related to the 2026 Notes within the weighted average shares outstanding when calculating the diluted net income per share for the three and nine months ended September 30, 2025.

We included 3,396,950 shares related to the 2026 Notes within the weighted average shares outstanding when calculating the diluted net income per share for each of the three and nine months ended September 30, 2024.

We included 5,728,550 shares related to the 2029 Notes within the weighted average shares outstanding when calculating the diluted net income per share for the three and nine months ended September 30, 2025, as compared to 5,728,550 and 2,571,575 shares during the same periods in the prior year.

Additionally, we included $ 2.9 million and $ 9.4 million of interest expense and debt issuance cost amortization, net of tax, within the numerator of the diluted net income per share for the three and nine months ended September 30, 2025, respectively, as compared to $ 3.2 million and $ 5.3 million for the same periods in the prior year.

The denominator for diluted net income per share does not include any effect from the capped call transactions we entered into concurrently with the issuance of the 2029 Notes, as this effect would be anti-dilutive.

3 unchanged sentences

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

June 30, 2025 and 2024

September 30, 2025 and 2024

Significant Service Providers and Distributors

During the three and six months ended June 30, 2025, our 10 largest revenue service provider partners or distributors accounted for 46 % of our consolidated revenue, as compared to 47 % for the same periods in the prior year.

One of our service provider partners within the Alarm.com segment individually represented greater than 15 % but not more than 20 % of our revenue for each of the three and six months ended June 30, 2025 and 2024.

No service provider partners represented more than 10% of accounts receivable as of June 30, 2025 and December 31, 2024.

For purposes of interim reporting, our annual effective income tax rate is estimated in accordance with ASC 740-270, "Interim Reporting." This rate is applied to the pre-tax book income of the entities expected to be benefited during the year.

During the three and nine months ended September 30, 2025, our 10 largest revenue service provider partners or distributors accounted for 45 % and 46 % of our consolidated revenue, respectively, as compared to 46 % and 47 % for the same periods in the prior year.

One of our service provider partners within the Alarm.com segment individually represented greater than 15 % but not more than 20 % of our revenue for each of the three and nine months ended September 30, 2025 and 2024.

No service provider partners represented more than 10% of accounts receivable as of September 30, 2025 and December 31, 2024.

For purposes of interim reporting, our annual effective income tax rate is estimated in accordance with ASC 740-270, "Interim Reporting." This rate is applied to income before income taxes, including income from equity method investments of the entities expected to be benefited during the year.

Discrete items that impact the tax provision are recorded in the period incurred.

For the three and six months ended June 30, 2025, we recorded a provision for income taxes of $ 5.5 million and $ 12.8 million, respectively, resulting in an effective income tax rate of 13.8 % and 17.1 % for those periods.

For the three and six months ended June 30, 2024, we recorded a provision for income taxes of $ 0.9 million and $ 3.6 million, respectively, resulting in an effective income tax rate of 2.6 % and 6.1 % for those periods.

For the three and six months ended June 30, 2025, our effective tax rate was below the 21.0% statutory rate primarily due to 2025 research and development tax credits claimed, the foreign derived intangible income deduction and a favorable true-up adjustment of our 2024 income tax provision estimate associated with research and development tax credits, partially offset by the impact of state taxes, foreign withholding taxes and other nondeductible expenses.

For the three months ended June 30, 2024, our effective tax rate was below the 21.0% statutory rate primarily due to a favorable true-up adjustment of our 2023 income tax provision estimate associated with research and development tax credits, 2024 research and development tax credits claimed, the foreign derived intangible income deduction and tax windfall benefits from employee stock-based compensation.

For the six months ended June 30, 2024, our effective tax rate was below the 21.0% statutory rate primarily due to a favorable true-up adjustment of our 2023 income tax provision estimate associated with research and development tax credits, 2024 research and development tax credits claimed, the foreign derived intangible income deduction, the release of an unrecognized tax benefit liability due to the closure of the 2018 and 2019 Internal Revenue Service federal income tax examination and tax windfall benefits from employee stock-based compensation, partially offset by the impact of state taxes, federal estimated tax payment interest expense and other nondeductible expenses.

On July 4, 2025, Public Law 119-21, commonly referred to as One Big Beautiful Bill Act, or OBBBA, was enacted in the United States.

The OBBBA includes a broad range of tax provisions that impact the timing and the magnitude of certain key tax deductions.

The most significant provisions to us are the permanent reinstatement of the full and immediate deduction for domestic research and development expenditures in the year such costs are incurred and the 100% first-year bonus depreciation deduction, with both provisions reducing our associated deferred tax assets.

We currently anticipate these provisions will significantly reduce our current federal income tax cash outlays over the next several years.

Certain other international tax provisions may also be favorable to us beginning in 2026.

We will continue to analyze the OBBBA tax provisions, including any additional guidance that is issued, to assess their potential impact on our financial position, results of operations and cash flows.

For the three and nine months ended September 30, 2025, we recorded a provision for income taxes of $ 15.2 million and $ 28.0 million, respectively, resulting in an effective income tax rate of 30.2 % and 22.4 % for those periods.

For the three and nine months ended September 30, 2024, we recorded a provision for income taxes of $ 6.7 million and $ 10.3 million, respectively, resulting in an effective income tax rate of 15.6 % and 10.1 % for those periods.

For the three months ended September 30, 2025, our effective tax rate was above the 21.0% statutory rate primarily due to the impact of state taxes, foreign withholding taxes, a reduced foreign derived intangible income deduction and other nondeductible expenses, partially offset by the impact of 2025 research and development tax credits claimed.

For the nine months ended September 30, 2025, our effective tax rate was above the 21.0% statutory rate primarily due to the impact of state taxes, foreign withholding taxes and other nondeductible expenses, partially offset by the impact of 2025 research and development tax credits claimed and a favorable true-up adjustment of our 2024 income tax provision estimate associated with research and development tax credits.

For the three months ended September 30, 2024, our effective tax rate was below the 21.0% statutory rate primarily due to 2024 research and development tax credits claimed, the foreign derived intangible income deduction and a favorable true-up adjustment of our 2023 income tax provision estimate and amended prior year state income tax returns, partially offset by the impact of state taxes, foreign withholding taxes and other nondeductible expenses.

For the nine months ended September 30, 2024, our effective tax rate was below the 21.0% statutory rate primarily due to a favorable true-up adjustment of our 2023 income tax provision estimate, the foreign derived intangible income deduction, 2024 research and development tax credits claimed, the release of an unrecognized tax benefit liability due to the closure of the 2018 and 2019 Internal Revenue Service federal income tax examination and tax windfall benefits from employee stock-based compensation, partially offset by the impact of state taxes, federal estimated tax payment interest expense and other nondeductible expenses.

We recognize a valuation allowance if, based on the weight of available evidence, both positive and negative, it is more likely than not that some portion, or all, of net deferred tax assets will not be realized.

Our valuation allowance for state research and development tax credit carryforwards, net deferred tax assets of our EBS subsidiary and an unrealized U.S.

federal capital loss was $ 5.0 million as of December 31, 2024 and increased to $ 6.1 million as of June 30, 2025.

federal capital loss was $ 5.0 million as of December 31, 2024 and increased to $ 5.6 million as of September 30, 2025.

We apply guidance for uncertainty in income taxes that requires the application of a more likely than not threshold to the recognition and de-recognition of uncertain tax positions.

If the recognition threshold is met, this guidance permits us to recognize a tax benefit measured at the largest amount of the tax benefit that, in our judgment, is more likely than not to be realized upon settlement.

We recorded a net increase to the unrecognized tax benefits liability of $ 1.7 million primarily due to a liability for research and development tax credits claimed during the six months ended June 30, 2025.

We recorded a net decrease to the unrecognized tax benefits liability of $ 0.4 million primarily due to the closure of the 2018 and 2019 Internal Revenue Service federal income tax return examination, partially offset by a liability for research and development tax credits claimed during the six months ended June 30, 2024.

Our condensed consolidated balance sheets included an accrual for total interest expense related to unrecognized tax benefits of $ 1.2 million and $ 0.9 million as of June 30, 2025 and December 31, 2024, respectively.

We recorded a net increase to the unrecognized tax benefits liability of $ 0.7 million primarily due to a liability for research and development tax credits claimed during the nine months ended September 30, 2025.

We recorded a net increase to the unrecognized tax benefits liability of less than $ 0.1 million primarily due to a liability for research and development tax credits claimed, partially offset by the closure of the 2018 and 2019 Internal Revenue Service federal income tax return examination and the release of a state unrecognized tax benefit liability due to the statute of limitations expiration during the nine months ended September 30, 2024.

ALARM.COM HOLDINGS, INC.

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

September 30, 2025 and 2024

Our condensed consolidated balance sheets included an accrual for total interest expense related to unrecognized tax benefits of $ 1.3 million and $ 0.9 million as of September 30, 2025 and December 31, 2024, respectively.

We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense.

4 unchanged sentences

As a result, we paid $ 0.6 million in additional federal taxes, including interest, during the three months ended June 30, 2024, and recognized a net income tax benefit of $ 1.7 million during the three months ended March 31, 2024.

As of June 30, 2025, we did not have material undistributed foreign earnings.

As of September 30, 2025, we did not have material undistributed foreign earnings.

We have not recorded a deferred tax liability on the undistributed earnings from our foreign subsidiaries, as such earnings are considered to be indefinitely reinvested.

ALARM.COM HOLDINGS, INC.

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

June 30, 2025 and 2024

On July 4, 2025, Public Law 119-21, commonly referred to as the One Big Beautiful Bill Act, or OBBBA, was enacted in the United States.

The OBBBA includes a broad range of tax provisions that may impact the timing and the magnitude of certain key tax deductions.

The most significant provisions to us are the permanent reinstatement of the full domestic research and development expenditure deduction in the year such costs are incurred and the 100% first-year bonus depreciation deduction.

We currently anticipate these provisions will significantly reduce our current federal income tax cash outlays over the next several years.

Certain other international tax provisions may also be favorable to us.

We continue to analyze the OBBBA tax provisions to assess their potential impact on our financial position, results of operations and cash flows.

During the three months ended September 30, 2025, we changed this assertion with respect to the current earnings of our Canadian business to begin providing deferred taxes on such earnings, the tax impact of which was not material.

Segment Information

5 unchanged sentences

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 the intelligently connected property and related solutions that contributed 92 % of our revenue, net of intersegment eliminations, for the three and six months ended June 30, 2025, as compared to 93 % for the same periods in the prior year.

Our Alarm.com segment represents our cloud-based platform and licenses and services on our non-hosted software platform for the intelligently connected property and related solutions that contributed 90 % and 91 % of our revenue, net of intersegment eliminations, for the three and nine months ended September 30, 2025, respectively, as compared to 92 % and 93 % for the same periods in the prior year.

Our Other segment is focused on researching, developing and offering residential and commercial automation solutions and energy management products and services in adjacent markets.

2 unchanged sentences

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

June 30, 2025 and 2024

September 30, 2025 and 2024

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):

Three Months Ended June 30, 2025

Three Months Ended September 30, 2025

Alarm.com Other Intersegment Alarm.com Intersegment Other Total

18 unchanged sentences

Interest income 11,274

Other expense, net ( 150 )

Other income / (expense), net 3,538

Income before income taxes $ 47,507

1 unchanged sentence

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

June 30, 2025 and 2024

Three Months Ended June 30, 2024

September 30, 2025 and 2024

Three Months Ended September 30, 2024

Alarm.com Other Intersegment Alarm.com Intersegment Other Total

18 unchanged sentences

Interest income 14,384

Other expense, net ( 1,258 )

Other income / (expense), net ( 89 )

Income before income taxes $ 43,174

1 unchanged sentence

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

June 30, 2025 and 2024

Six Months Ended June 30, 2025

September 30, 2025 and 2024

Nine Months Ended September 30, 2025

Alarm.com Other Intersegment Alarm.com Intersegment Other Total

14 unchanged sentences

$ 105,788 $ ( 7,179 ) $ ( 328 ) $ 409 $ 98,690

Assets $ 2,154,748 $ 64,107 $ ( 120,596 ) $ ( 205 ) $ 2,098,054

Reconciliation of operating income to income before income taxes

6 unchanged sentences

Notes to the Condensed Consolidated Financial Statements (Unaudited) — (Continued)

June 30, 2025 and 2024

Six Months Ended June 30, 2024

September 30, 2025 and 2024

Nine Months Ended September 30, 2024

Alarm.com Other Intersegment Alarm.com Intersegment Other Total

14 unchanged sentences

$ 88,807 $ ( 10,870 ) $ ( 329 ) $ 85 $ 77,693

Assets $ 1,907,486 $ 55,017 $ ( 107,239 ) $ ( 17 ) $ 1,855,247

Reconciliation of operating income to income before income taxes

4 unchanged sentences

Income before income taxes $ 102,729

Our SaaS and license revenue for the Alarm.com segment included software license revenue of $ 4.5 million and $ 9.2 million for the three and six months ended June 30, 2025, respectively, as compared to $ 5.2 million and $ 10.4 million for the same periods in the prior year.

There was no software license revenue recorded for the Other segment during the three and six months ended June 30, 2025 and 2024.

Additions to property and equipment were $ 5.0 million and $ 13.0 million for the Alarm.com segment for the three and six months ended June 30, 2025, respectively, as compared to $ 1.9 million and $ 5.8 million for the same periods in the prior year.

Additions to property and equipment were less than $ 0.1 million for the Other segment for each of the three and six months ended June 30, 2025 as compared to less than $ 0.1 million and $ 0.1 million for the Other segment for the three and six months ended June 30, 2024, respectively.

We derived substantially all revenue from North America for the three and six months ended June 30, 2025 and 2024.

Substantially all of our long-lived assets were in North America as of June 30, 2025 and December 31, 2024.

Alarm.com Other Intersegment Alarm.com Intersegment Other Total

Assets as of September 30, 2025

$ 2,174,476 $ 86,006 $ ( 136,886 ) $ ( 6 ) $ 2,123,590

Assets as of December 31, 2024

2,081,214 85,468 ( 128,465 ) ( 9 ) 2,038,208

Our SaaS and license revenue for the Alarm.com segment included software license revenue of $ 4.3 million and $ 13.5 million for the three and nine months ended September 30, 2025, respectively, as compared to $ 5.0 million and $ 15.4 million for the same periods in the prior year.

There was no software license revenue recorded for the Other segment during the three and nine months ended September 30, 2025 and 2024.

Additions to property and equipment were $ 3.9 million and $ 16.9 million for the Alarm.com segment for the three and nine months ended September 30, 2025, respectively, as compared to $ 12.6 million and $ 18.4 million for the same periods in the prior year.

Additions to property and equipment were less than $ 0.1 million and $ 0.1 million for the Other segment for the three and nine months ended September 30, 2025, respectively, as compared to less than $ 0.1 million and $ 0.1 million for the Other segment for the three and nine months ended September 30, 2024, respectively.

We derived substantially all revenue from North America for the three and nine months ended September 30, 2025 and 2024.

Substantially all of our long-lived assets were in North America as of September 30, 2025 and December 31, 2024.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements