What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-05-07 compared with 2025-11-06 · 160 added, 696 removed, 525 unchanged (62% of the section changed)

4 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

SaaS and license revenue $ 181,524 $ 163,800

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Interest income 4,931 12,371

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

Other expense, net ( 3,909 ) ( 2,660 )

Income before income taxes 28,993 35,044

Provision for income taxes 5,856 7,307

Income from equity method investments, net ( 2,793 ) — ( 3,109 ) —

(Income) / loss from equity method investments, net ( 245 ) 25

Net income 23,382 27,712

15 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Net income $ 23,382 $ 27,712

9 unchanged sentences

(in thousands, except share and per share data)

September 30,

2026 December 31,

1 unchanged sentence

Cash and cash equivalents $ 497,449 $ 960,584

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

Accounts receivable, net of allowance for credit losses of $ 6,113 and $ 5,171 , and net of allowance for product returns of $ 2,080 and $ 2,140 as of March 31, 2026 and December 31, 2025, respectively

141,221 141,852

Inventory 95,132 94,429

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

Other current assets, net of allowance for credits losses of $ 749 as of March 31, 2026 and December 31, 2025

67,192 75,646

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Investments in unconsolidated entities 219,850 226,931

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

Other assets, net of allowance for credit losses of $ 0 as of March 31, 2026 and December 31, 2025

40,502 43,120

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

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

no shares issued and outstanding as of March 31, 2026 and December 31, 2025

Common stock, $ 0.01 par value, 300,000,000 shares authorized;

53,723,295 and 53,540,939 shares issued;

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

and 49,385,005 and 49,630,714 shares outstanding as of March 31, 2026 and December 31, 2025, respectively

Additional paid-in capital 558,532 549,913

Treasury stock, at cost;

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

4,338,290 and 3,910,225 shares as of March 31, 2026 and December 31, 2025, respectively

( 247,847 ) ( 227,852 )

7 unchanged sentences

(in thousands)

Nine Months Ended

September 30,

Three Months Ended

Cash flows from operating activities:

3 unchanged sentences

Reserve for product returns 381 425

Provision for credit losses on notes receivable 748 3,996

Amortization on patents and tooling 542 657

Amortization and depreciation 9,092 7,024

2 unchanged sentences

Deferred income taxes 2,792 ( 8,791 )

Change in fair value of contingent liability 252 105

Stock-based compensation 8,049 9,458

Distributions on investments in unconsolidated entities

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

Loss from investments in unconsolidated entities 3,620 2,313

Other adjustments

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

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Cash flows from operating activities 50,635 24,057

Cash flows used in investing activities:

Business acquisition, net of cash acquired ( 35,733 ) —

Cash flows from / (used in) investing activities:

Business acquisitions, net of cash acquired — ( 23,412 )

Additions to property and equipment ( 912 ) ( 6,115 )

4 unchanged sentences

Purchase of investments in unconsolidated entities ( 1,062 ) ( 3,773 )

Purchases of other intangible assets — ( 46 )

Cash flows used in investing activities ( 250,003 ) ( 16,553 )

Cash flows (used in) / from financing activities:

Proceeds from issuance of convertible senior notes — 500,000

Payments of debt issuance costs — ( 14,834 )

Purchases of capped calls related to convertible senior notes — ( 63,050 )

Cash flows from / (used in) investing activities 2,405 ( 55,179 )

Cash flows used in financing activities:

Repayments of convertible senior notes ( 500,000 ) —

Payments of deferred consideration for acquisitions ( 300 ) —

Purchases of treasury stock, including transaction costs ( 19,995 ) ( 5,059 )

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 2,059 1,583

Cash flows (used in) / from financing activities ( 21,470 ) 344,286

Cash flows used in financing activities ( 518,236 ) ( 3,476 )

Effect of exchange rate changes on cash, cash equivalents and restricted cash ( 36 ) ( 118 )

Net (decrease) / increase in cash, cash equivalents and restricted cash ( 154,233 ) 477,596

Net decrease in cash, cash equivalents and restricted cash ( 465,232 ) ( 34,716 )

Cash, cash equivalents and restricted cash at beginning of the period 968,807 1,229,132

15 unchanged sentences

Stock-based compensation expense — — — 8,049 — — — — 8,049

Noncontrolling interest assumed through acquisition 6,352 — — — — — — — —

Accretion adjustments of redeemable noncontrolling interest to redemption value 1,332 — — ( 1,332 ) — — — — ( 1,332 )

Net income / (loss) attributable to common stockholders ( 201 ) — — — — — — 23,583 23,583

Other comprehensive income — — — — — — 829 — 829

Balance as of March 31, 2025 $ 52,585 52,904 $ 529 $ 530,528 3,224 $ ( 191,350 ) $ 1,644 $ 418,252 $ 759,603

Common stock issued in connection with equity-based plans — 243 2 729 — — — — 731

Purchase of treasury stock, including transaction costs and excise tax — — — 3 88 ( 5,108 ) — — ( 5,105 )

Stock-based compensation expense — — — 8,943 — — — — 8,943

Accretion adjustments of redeemable noncontrolling interest to redemption value 2,338 — — ( 2,338 ) — — — — ( 2,338 )

Net income / (loss) attributable to common stockholders ( 335 ) — — — — — — 34,552 34,552

Other comprehensive income — — — — — — 959 — 959

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 — — — — — — ( 560 ) — ( 560 )

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.

Condensed Consolidated Statements of Equity — (Continued)

(in thousands)

Balance as of March 31, 2026 $ 43,978 53,723 $ 538 $ 558,532 4,338 $ ( 247,847 ) $ 2,130 $ 546,459 $ 859,812

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

2 unchanged sentences

Common stock issued in connection with equity-based plans — 148 1 1,582 — — — — 1,583

Purchase of treasury stock, including transaction costs and excise tax — — — ( 3 ) 86 ( 5,059 ) — — ( 5,062 )

Stock-based compensation expense — — — 9,481 — — — — 9,481

Noncontrolling interest assumed through acquisition 6,352 — — — — — — — —

Accretion adjustments of redeemable noncontrolling interest to redemption value 1,724 — — ( 1,724 ) — — — — ( 1,724 )

2 unchanged sentences

Balance as of March 31, 2025 $ 52,585 52,904 $ 529 $ 530,528 3,224 $ ( 191,350 ) $ 1,644 $ 418,252 $ 759,603

Common stock issued in connection with equity-based plans — 209 2 376 — — — — 378

Purchase of treasury stock, including transaction costs and excise tax — — — ( 559 ) 1,117 ( 75,000 ) — — ( 75,559 )

Tax withholding related to vesting of restricted stock units — — — ( 3,401 ) — — — — ( 3,401 )

Stock-based compensation expense — — — 11,250 — — — — 11,250

Accretion adjustments of redeemable noncontrolling interest to redemption value 1,212 — — ( 1,212 ) — — — — ( 1,212 )

Purchases of capped calls related to convertible senior notes, net of tax — — — ( 47,436 ) — — — — ( 47,436 )

Net income / (loss) attributable to common stockholders ( 991 ) — — — — — — 33,511 33,511

Other comprehensive loss — — — — — — ( 156 ) — ( 156 )

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.

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Notes to the Condensed Consolidated Financial Statements (Unaudited)

September 30, 2025 and 2024

March 31, 2026 and 2025

Alarm.com Holdings, Inc.

(referred to herein as Alarm.com, the Company, or we) is the leading platform for intelligently connected properties.

Our cloud-based platform offers an expansive suite of Internet of Things, or IoT, solutions addressing global opportunities in the residential, multi-family, small business and enterprise commercial markets.

Alarm.com’s solution suite includes security, video surveillance and video analytics, energy management, access control, electric utility grid management, active shooter detection, water management, health and wellness, personal safety and data-rich emergency response.

Our solutions are delivered through an established network of trusted service provider partners, who are experts at selling, installing and supporting our solutions.

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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 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.

The results of operations for the three months ended March 31, 2026 are not necessarily indicative of the results that can be expected for our entire fiscal year ending December 31, 2026, which is increasingly true in periods of 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.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.

As of the date of issuance of these financial statements, we are not aware of any specific event or circumstance that would require us to update our estimates, assumptions and judgments or revise the carrying value of our assets or liabilities.

However, our estimates, judgments and assumptions are continually evaluated based on available information and experience and may change as new events occur and additional information is obtained.

Because of the use of estimates inherent in the financial reporting process and in light of the continuing uncertainty arising from the Macroeconomic Conditions, actual results could differ from those estimates and any such differences may be material.

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.

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.

Reclassifications

Certain previously reported amounts in the condensed consolidated statements of operations for the three months ended March 31, 2025 have been reclassified to conform to our current presentation to reflect (income) / loss from equity method investments, net, as a separate line item, which was previously included in other expense, net.

Certain previously reported amounts in the condensed consolidated statement of cash flows for the three months ended March 31, 2025 have been reclassified to conform to our current presentation, including the addition of other adjustments as a separate line item within the adjustments to reconcile net income to net cash flows from the operating activities section.

Significant Accounting Policies and Use of Estimates

There have been no material changes to our significant accounting policies or our use of estimates during the three months ended March 31, 2026 from those disclosed in our Annual Report.

Recent Accounting Pronouncements

During the three months ended March 31, 2026, we did not adopt any new accounting pronouncements.

ALARM.COM HOLDINGS, INC.

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

September 30, 2025 and 2024

Equity Method Investments

We account for equity investments where we can exercise significant influence over, but not control, an investee using the equity method of accounting.

Equity method investments are initially recorded at cost in investments in unconsolidated entities in the condensed consolidated balance sheets.

Under the equity method of accounting, investments are adjusted to recognize our proportionate share of net income or losses of the investees and are recorded in income from equity method investments, net in our condensed consolidated statements of operations.

The equity method investments are also adjusted by contributions to and distributions from the investees as well as any impairments resulting from other-than-temporary declines in fair value that is less than its carrying value.

Depending on the timing of the availability of the financial statements of the investees, we may apply a three-month lag period based on when financial information is received.

When applying a lag period, we adjust for any known significant changes from the lag period to our reporting date.

In cases where our equity method investments provide for a disproportionate allocation of the profits and losses of the investees, our share of income or losses from equity method investments is determined using a balance sheet approach referred to as the hypothetical liquidation at book value, or HLBV, method.

Under the HLBV method, at the end of each reporting period, a calculation is prepared to determine the amount that we would receive if an equity investment entity were to liquidate its net assets and distribute that cash to the investors based on the contractually defined liquidation priorities.

The difference between the calculated liquidation distribution amounts at the beginning and the end of the reporting period, after adjusting for capital contributions and distributions as well as the amortization of basis differences, is the amount we recognize for our share of the income or losses from the equity investments for the period.

We have certain investments in unconsolidated entities accounted for under the equity method of accounting in which our carrying value exceeds our proportionate share of net assets of the unconsolidated entity.

We record our proportionate share of amortization expense related to basis differences in income from equity method investments, net in our condensed consolidated statements of operations.

Recent Accounting Pronouncements

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

March 31, 2026 and 2025

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 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.

Additionally, this amendment requires annual disclosures for income from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign as well as income tax expense (or benefit) disaggregated between federal, state and foreign.

The amendment is effective for annual periods beginning after December 15, 2024, and early adoption is permitted.

This amendment should be applied on a prospective basis, but retrospective application is permitted.

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

On November 5, 2024, the FASB issued ASU 2024-03, "Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)," which requires more detailed information about the types of expenses included in certain expense captions presented on the consolidated statements of operations, including purchases of inventory, employee compensation, depreciation, amortization and depletion.

7 unchanged sentences

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)

September 30, 2025 and 2024

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

The amendment is effective for annual periods beginning after December 15, 2027, and interim periods within those annual reporting periods.

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

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Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Beginning of period balance $ 17,947 $ 12,088

Additions to contract assets

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

Amortization or satisfaction of outstanding performance obligation of capitalized contract assets

5 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Beginning of period balance $ 29,884 $ 26,559

2 unchanged sentences

End of period balance $ 31,843 $ 27,524

ALARM.COM HOLDINGS, INC.

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

March 31, 2026 and 2025

Accounts Receivable, Net

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

September 30,

2026 December 31,

3 unchanged sentences

Accounts receivable, net $ 141,221 $ 141,852

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)

September 30, 2025 and 2024

the prior year.

For the three months ended March 31, 2026 and March 31, 2025, we recorded a reserve for product returns of $ 0.4 million in our hardware and other revenue.

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

Allowance for Credit Losses

The allowance for credit losses is a valuation account that is deducted from the accounts receivable and notes receivable amortized cost basis (see Note 9) to present the net amount expected to be collected.

We estimate the allowance balance by applying the loss-rate method using relevant available information from internal and external sources, including historical write-off activity, current conditions and reasonable and supportable forecasts.

Historical credit loss experience provides the basis for the estimation of expected credit losses.

Adjustments to historical loss information are made for changes in economic conditions, such as changes in unemployment rates.

We use projected economic conditions over a period no more than twelve months based on data from external sources.

For periods beyond the twelve-month reasonable and supportable forecast period, we revert to historical loss information immediately.

The allowance for credit losses is measured on a pooled basis when similar risk characteristics exist.

When assessing whether to measure certain financial assets on a pooled basis, we considered various risk characteristics, including the financial asset type, size and the historical or expected credit loss pattern.

These risk characteristics are relevant to accounts receivable and notes receivable.

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 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.

Write-offs of the amortized cost basis are recorded to the allowance for credit losses.

Any subsequent recoveries of previously written off balances are recorded as a reduction to credit loss expense.

Allowance for Credit Losses - Accounts Receivable

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(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 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.

There were no changes to our portfolio segments for our accounts receivable during the three months ended March 31, 2026, 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 months ended March 31, 2026, as compared to historical periods.

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

Three Months Ended

September 30, 2025 Three Months Ended

September 30, 2024 Nine Months Ended

September 30, 2025 Nine Months Ended

September 30, 2024

Subsidiaries All Other

Subsidiaries Alarm.com

Subsidiaries All Other

Subsidiaries Alarm.com

March 31, 2026 Three Months Ended

March 31, 2025

Subsidiaries All Other

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Beginning of period balance $ ( 4,931 ) $ ( 240 ) $ ( 3,777 ) $ ( 93 )

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

Provision for expected credit losses ( 1,160 ) ( 7 ) ( 946 ) ( 31 )

Write-offs 204 21 123 3

End of period balance $ ( 5,887 ) $ ( 226 ) $ ( 4,600 ) $ ( 121 )

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,

2026 December 31,

3 unchanged sentences

Total inventory $ 95,132 $ 94,429

Asset Acquisition

On November 22, 2024, EnergyHub International, Inc., one of our wholly-owned subsidiaries, acquired certain assets of Finland-based Kapacity.io Solutions Oy.

Substantially all of the acquired assets consisted of developed technology.

We believe the acquisition of the developed technology will help accelerate deployment of a cloud-based demand response platform internationally for our EnergyHub subsidiary.

In consideration for the purchase of the developed technology, we paid $ 1.3 million in cash in November 2024, after deducting $ 0.2 million related to an agreed holdback provision.

Additionally, we incurred $ 0.1 million in direct transaction costs related to legal fees during 2024 that were capitalized as a component of the consideration transferred.

The $ 1.6 million purchase price consideration related to developed technology was recorded as an intangible asset at the time of the asset acquisition and is being amortized on a straight-line basis over an estimated useful life of seven years .

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

On February 10, 2025, Alarm.com Incorporated, one of our wholly-owned subsidiaries, acquired 81 % of the issued and outstanding shares of capital stock of CHeKT, Inc., or CHeKT.

CHeKT provides a remote video monitoring service for central station operators that is compatible with a variety of cameras.

We believe the acquisition of CHeKT will help to expand our opportunity to provide remote video monitoring solutions in the commercial and residential markets.

In consideration for the purchase of 81 % of the issued and outstanding shares of capital stock of CHeKT, we paid $ 23.6 million in cash on February 10, 2025, after deducting $ 3.7 million related to agreed holdback provisions.

Pursuant to the terms of the stock purchase agreement, following the preliminary determination of the working capital of CHeKT as of the closing date, the purchase price decreased by $ 0.2 million.

The working capital adjustment was finalized during the second quarter of 2025 and $ 0.5 million of the holdback was paid to stockholders of CHeKT at that time.

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 $ 0.5 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 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)

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):

February 10, 2025

Calculation of Purchase Consideration:

Cash paid, net of working capital adjustment $ 23,382

Holdback consideration 3,700

Total consideration $ 27,082

Estimated Tangible and Intangible Net Assets:

Accounts receivable 308

Inventory 645

Other current assets

Customer relationships 486

Developed technology 9,412

Trade names 814

Accounts payable ( 150 )

Accrued expenses and other current liabilities ( 276 )

Deferred tax liability

Redeemable noncontrolling interest ( 6,352 )

Goodwill 23,579

Total estimated tangible and intangible net assets

Goodwill of $ 23.6 million reflects the value of acquired workforce and synergies we expect to achieve from integrating CHeKT's remote video monitoring services into our existing solutions in the commercial and residential markets.

None of the goodwill recognized is expected to be deductible for income tax purposes in future periods.

We allocate goodwill to reporting units based on expected benefit from synergies and have allocated the goodwill to the Alarm.com segment.

Fair Value of Net Assets Acquired and Intangibles

The acquired activities and assets in the purchase of CHeKT constituted a business and in accordance with ASC 805, " Business Combinations ," the assets and liabilities were recorded at their respective fair values as of February 10, 2025.

We developed the fair value of intangible net assets using the multi-period excess earnings method for developed technology, the with-and-without method for customer relationships and the relief from royalty method for the trade name.

Developed Technology

Developed technology primarily consists of intellectual property of proprietary software that is marketed for sale.

We valued the developed technology using the multi-period excess earnings method, an income approach.

The significant assumptions used in the income approach include estimates about future expected cash flows from the developed technology, the obsolescence factor and the discount rate.

We are amortizing the CHeKT developed technology, valued at $ 9.4 million, on an attribution method based on the discounted cash flows of the model over an estimated useful life of 11 years.

Customer Relationships

We recorded the customer relationships intangible separately from goodwill based on determination of the length, strength and contractual nature of the relationship that CHeKT shared with its customers.

We valued the single group of customer relationships using the with-and-without method, an income approach.

The significant assumptions used in the income approach include estimates about future expected cash flows from customer contracts and the discount rate.

We are amortizing the customer relationships, valued at $ 0.5 million, on a straight-line basis over an estimated useful life of three years .

On November 21, 2025, EnergyHub, Inc., or EnergyHub, one of our wholly-owned subsidiaries, acquired 100 % of the issued and outstanding shares of capital stock of Zona NewCo, LLC, which acquired substantially all of the assets and liabilities of Resideo Grid Services, or RGS, from Resideo Technologies, Inc.

Pursuant to the terms of the stock purchase agreement, following the preliminary determination of the working capital of RGS as of the closing date, the purchase price increased by $ 1.6 million.

The working capital adjustment was finalized during the second quarter of 2026 and $ 1.6 million was paid to stockholders of RGS at that time.

The purchase price allocation was not finalized as of the filing date of this Quarterly Report on Form 10-Q and is primarily pending the final determination of the tax adjustments and the valuation of the acquired customer relationships.

ALARM.COM HOLDINGS, INC.

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

September 30, 2025 and 2024

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

The significant assumptions used in the income approach include future expected cash flows from the trade name, the royalty rate and the discount rate.

We are amortizing the trade names, valued at $ 0.8 million, on an attribution basis derived from the discounted cash flows of the model over an estimated useful life of seven years .

Redeemable Noncontrolling Interest

We have a redeemable noncontrolling interest related to our 81 % equity ownership interest in CHeKT.

The CHeKT stockholder agreement contains a put option that gives the minority CHeKT stockholders the right to sell their remaining 19 % equity ownership interest to us based on the fair value of the shares and also contains a call option that gives us the right to purchase the remaining CHeKT shares from the minority CHeKT stockholders based on the fair value of the shares.

The put and call options can each be exercised beginning in the first quarter of 2028.

This redeemable noncontrolling interest was recorded at fair value on February 10, 2025, by applying the income approach using unobservable inputs for projected cash flows, including projected financial results and a discount rate, which are considered Level 3 inputs.

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 $ 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 nine months ended September 30, 2025.

March 31, 2026 and 2025

Goodwill and Intangible Assets, Net

3 unchanged sentences

$ 178,598 $ 46,389 $ 224,987

Goodwill acquired 23,579 3,099 26,678

Measurement period adjustments — ( 26 ) ( 26 )

Foreign currency translation adjustment ( 253 ) — ( 253 )

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.

Balance as of March 31, 2026 $ 178,345 $ 46,363 $ 224,708

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

3 unchanged sentences

$ 55,024 $ 39,621 $ 1,302 $ 3,359 $ 46 $ 99,352

Intangible assets acquired 5,173 14,119 1,058 — — 20,350

Capitalized software development costs — — — 212 — 212

Amortization ( 2,661 ) ( 3,199 ) ( 80 ) ( 203 ) — ( 6,143 )

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)

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.

Balance as of March 31, 2026 $ 52,363 $ 36,422 $ 1,222 $ 3,368 $ 46 $ 93,421

We recorded $ 6.0 million of amortization related to our intangible assets for the three months ended March 31, 2026, as compared to $ 4.5 million for the same period in the prior year.

There were no impairments of long-lived intangible assets during the three months ended March 31, 2026 and 2025.

The following tables reflect the weighted average remaining life and carrying value of finite-lived intangible assets (in thousands, except weighted-average remaining life):

September 30, 2025

March 31, 2026

Amount Accumulated

17 unchanged sentences

Total intangible assets $ 261,726 $ ( 162,374 ) $ 99,352 8.3

Investments in Unconsolidated Entities

Investments in Safe Haven Security Services, LLC, or Safe Haven, and All Access Holdings, LLC, or All Access

On May 30, 2025, we paid $ 119.3 million in cash to purchase 32.5 % of the outstanding shares of Safe Haven, after deducting $ 6.3 million related to an agreed holdback provision that is expected to be paid during the second quarter of 2026.

On June 6, 2025, we paid $ 19.2 million in cash to purchase 32.5 % of the outstanding shares of All Access, after deducting $ 1.0 million related to an agreed holdback provision that is expected to be paid during the second quarter of 2026.

After consummation of these transactions, All Access and Safe Haven were under common control.

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 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

On April 28, 2025, we paid $ 29.1 million in cash to purchase 24.7 % of the outstanding shares of Safe Streets.

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 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

In October 2018, we entered into a subordinate convertible promissory note with one of our hardware suppliers.

In July 2019, we converted the outstanding notes receivable balance of $ 5.6 million into 9,520,832 shares of Series B preferred stock in the hardware supplier.

We concluded that the $ 5.6 million equity investment, which is included in the Alarm.com segment, does not meet the criteria for consolidation and will be accounted for using the measurement alternative.

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

Investments in Technology Partners

In February 2021, we paid $ 5.0 million in cash to purchase 1,000,000 shares of Series B-2 Preferred Stock from a technology partner as part of a financing round that included other investors.

The $ 5.0 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.

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 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 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.

We paid an additional $ 1.5 million during both May 2024 and December 2024 to the same technology partner via a SAFE for a total investment of $ 4.5 million.

On June 11, 2025, the $ 4.5 million SAFE was converted into shares of Series B preferred stock representing 25.9 % of the outstanding shares of the technology partner.

Our preferred stock provides us with a liquidation preference that is considered substantive.

Accordingly, our equity ownership interest is not considered in-substance common stock.

We concluded that the equity investment in the technology partner, which is included in the Alarm.com segment, does not meet the criteria for consolidation and will be accounted for under the measurement alternative.

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

March 31, 2026 and 2025

Investments in Unconsolidated Entities

On February 24, 2026, a technology partner in which we previously invested was acquired by an unrelated third party.

As a result of the sale, we received proceeds of $ 5.4 million in exchange for all of our shares of the technology partner stock after deducting $ 0.1 million related to an agreed holdback.

As a result of the sale, we recorded a loss of $ 0.2 million within other expense, net, in our condensed consolidated statements of operations during the three months ended March 31, 2026.

Summary of Investments in Unconsolidated Entities

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

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Ownership Percentage

5 unchanged sentences

32.5 % $ 139,308 $ 140,957 $ 141,205 $ 143,134

SafeStreets (3)

24.7 28,418 31,226 29,436 31,144

20.3 30,675 9,566 30,142 —

Other unconsolidated entities

1 unchanged sentence

$ 219,850 $ 182,453 $ 226,931 $ 174,985

_______________________

(1) Safe Haven Security Services, LLC, or Safe Haven

(2) All Access Holdings, LLC, or All Access

(3) SafeStreets USA, LLC, or SafeStreets

(4) Protegger Luxembourg S.à r.l, or Pronet

Equity method income from our investments in unconsolidated entities are as follows (in thousands):

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Income from equity method investments, net $ 2,793 $ — $ 3,109 $ —

(Income) / loss from equity method investments, net $ ( 245 ) $ 25

Other related party transactions and balances outstanding with our equity method investees for activity subsequent to our investments are as follows (in thousands):

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Revenue from equity method investees

2 unchanged sentences

Distributions received from equity method investees

4,014 — 4,014 —

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Outstanding principal from loans to equity method investees

6 unchanged sentences

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

September 30, 2025 and 2024

Loan to Safe Streets

On January 30, 2025, we entered into a senior secured loan agreement with Safe Streets, under which a term loan was provided to them in the original principal amount of $ 21.5 million, which loan is collateralized by the assets of Safe Streets.

March 31, 2026 and 2025

Loan to SafeStreets

On January 30, 2025, we entered into a senior secured loan agreement with SafeStreets, under which a term loan was provided to them in the original principal amount of $ 21.5 million, which loan is collateralized by the assets of SafeStreets.

Quarterly principal payments begin in the second quarter of 2027.

2 unchanged sentences

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

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

Loan to a Distribution Partner

In December 2022, we amended a subordinated credit agreement with the affiliated entity of one of our distribution partners, or the Affiliate.

The amended subordinated credit agreement with the Affiliate matures on June 18, 2027, and interest on the outstanding principal balance accrues at a rate of 12.0 % per annum and is payable in kind.

In March 2024, the Affiliate was in default on a loan arrangement with one of its third party secured lenders.

Based on this information from the Affiliate, during the three months ended March 31, 2024, we recorded a credit loss expense of $ 4.0 million in general and administrative expense and recorded a reduction to our interest income of $ 0.5 million related to the reversal of payable in kind interest associated with the subordinated credit agreement.

We placed this loan in nonaccrual status and recorded a full allowance for credit losses for this note receivable as of March 31, 2024.

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 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.

As of March 31, 2026 and December 31, 2025, $ 21.5 million of principal was outstanding from SafeStreets under the loan agreement.

Loan to a Service Provider Partner

4 unchanged sentences

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.

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.

As of March 31, 2026 and December 31, 2025, $ 0.9 million of principal was outstanding from the service provider partner under the loan agreement.

For the three months ended March 31, 2026 and 2025, we recognized less than $ 0.1 million of revenue from the service provider partner associated with this loan.

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 nine months ended September 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.

Notes receivable that are 90 days or greater past due are placed on nonaccrual status.

Notes receivable may be placed on nonaccrual status earlier if, in management’s opinion, a timely collection of the full principal and interest becomes uncertain.

After a note receivable has been placed on nonaccrual status, interest will be recognized when cash is received.

A note receivable may be returned to accrual status after all of the customer’s delinquent balances of principal and interest have been settled, and collection of all remaining contractual amounts due is reasonably assured.

We have elected not to measure an allowance for credit losses for accrued interest receivables .

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 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)

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

September 30, 2025 Three Months Ended

September 30, 2024 Nine Months Ended

September 30, 2025 Nine Months Ended

September 30, 2024

March 31, 2026 Three Months Ended

March 31, 2025

Beginning of period balance $ ( 749 ) $ ( 1 )

(Provision for) / recovery of expected credit losses

1 — ( 748 ) ( 3,996 )

Provision for expected credit losses

Write-offs — —

2 unchanged sentences

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

September 30, 2025

March 31, 2026

Loan Receivables:

6 unchanged sentences

Total $ 1,000 $ 23,062 $ 500 $ 406 $ 1,500 $ 943 $ 27,411

ALARM.COM HOLDINGS, INC.

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

March 31, 2026 and 2025

December 31, 2025

7 unchanged sentences

Total $ 22,600 $ 500 $ 447 $ 1,500 $ — $ 943 $ 25,990

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 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.

There was one note receivable placed on nonaccrual status as of March 31, 2026 and December 31, 2025.

During the three months ended March 31, 2026 and 2025, there was no interest income recognized related to notes receivable that were in nonaccrual status.

As of March 31, 2026 and December 31, 2025, there were $ 0.2 million notes receivable placed in nonaccrual status for which there was not a related allowance for credit losses.

As of March 31, 2026 and December 31, 2025, 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 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)

September 30, 2025 and 2024

As of March 31, 2026 and December 31, 2025, $ 23.1 million and $ 19.4 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.

Fair Value Measurements

2 unchanged sentences

Level 1 Level 2 Level 3 Total

Money market accounts as of September 30, 2025

Money market accounts as of March 31, 2026

$ 479,892 $ — $ — $ 479,892

1 unchanged sentence

941,134 — — 941,134

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

Equity securities with readily determinable fair value as of March 31, 2026

10,597 — — 10,597

1 unchanged sentence

14,858 — — 14,858

Contingent consideration liability from acquisition as of September 30, 2025

$ — $ — $ 1,155 $ 1,155

Contingent consideration liability from acquisition as of December 31, 2024

— — 2,169 2,169

The following table summarizes the change in fair value of the Level 3 contingent consideration liability with significant unobservable inputs (in thousands):

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Beginning of period balance $ 613 $ 2,105 $ 2,169 $ 2,061

Performance target achievement payment — — ( 1,266 ) —

Changes in fair value included in earnings 542 61 252 105

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

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.

As of March 31, 2026, $ 473.9 million of our money market accounts was included in cash and cash equivalents, $ 4.1 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, 2025, $ 933.0 million 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.

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 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.

The earn-out payment is contingent on the satisfaction of two performance targets related to the integration of EBS's hardware into the Alarm.com platform by December 31, 2026, and has a maximum potential payment of up to $ 2.5 million.

We account for the contingent consideration using fair value and established a liability for the future earn-out payment based on an estimation of the probability of the future achievement of the performance targets.

The contingent consideration liability was valued with Level 3 unobservable inputs, including the probability of expected achievement of the performance targets.

At January 18, 2023, the fair value of the liability was $ 2.0 million.

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 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 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

ALARM.COM HOLDINGS, INC.

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

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.

During the three months ended March 31, 2026, we recorded a loss on equity securities of $ 3.7 million, as compared to a loss of $ 2.3 million for the same period 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 12 for the carrying amount and estimated fair value of our existing convertible senior notes as of March 31, 2026 and December 31, 2025.

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 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.

We have subsequently entered into amendments to this lease to provide us with additional office space as well as tenant improvement allowances.

In August 2024, we entered into an amendment to the lease for our corporate headquarters, which extends the term of our existing leased office space to 2034 and includes two successive five-year renewal options.

Additionally, the amendment provides for additional office space, parking spaces and tenant improvement allowances.

Supplemental information related to leases is presented in the table below (in thousands, except weighted-average term and discount rate):

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Operating lease cost $ 3,828 $ 3,472 $ 11,657 $ 9,425

Cash paid for amounts included in the measurement of operating lease liabilities 3,491 2,420 9,884 9,171

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,

Weighted-average remaining lease term — operating leases 7.3 years 7.8 years

Weighted-average discount rate — operating leases 8.1 % 8.2 %

Maturities of lease liabilities are as follows (in thousands):

Year Ended December 31, Operating Leases (1)

Remainder of 2025 $ 4,057

2030 and thereafter 48,618

Total lease payments 107,973

imputed interest (2)

Present value of lease liabilities $ 79,267

_______________

(1) Operating lease payments exclude $ 4.4 million of legally binding minimum lease payments for leases executed but not yet commenced.

There are no options to extend lease terms that were reasonably certain of being exercised included in these balances.

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

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 nine months ended September 30, 2025 and 2024.

There were no transfers into or out of Level 3 or reclassifications between levels of the fair value hierarchy during the three months ended March 31, 2026 and 2025.

ALARM.COM HOLDINGS, INC.

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

September 30, 2025 and 2024

March 31, 2026 and 2025

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

September 30,

2026 December 31,

2 unchanged sentences

Income taxes payable 571 1,785

Holdback liability from business combinations, asset acquisitions and investments in unconsolidated entities

Holdback and working capital liabilities from business combinations, asset acquisitions and investments in unconsolidated entities

13,413 13,713

Contingent consideration liability from acquisition

1 unchanged sentence

Accounts payable, accrued expenses and other current liabilities $ 106,522 $ 107,195

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

Other liabilities 13,241 14,326

Other liabilities $ 14,741 $ 15,479

Debt, Commitments and Contingencies

2 unchanged sentences

On January 20, 2021, we issued $ 500.0 million aggregate principal amount of 0 % convertible senior notes due January 15, 2026, in a private placement to qualified institutional buyers, or the 2026 Notes.

The terms of the 2026 Notes are governed by an Indenture, or the 2026 Indenture, by and between Alarm.com Holdings, Inc.

Bank National Association, as trustee.

The 2026 Notes are senior unsecured obligations that do not bear regular interest and the principal amount of the 2026 Notes will not accrete.

The 2026 Notes may bear special interest under specified circumstances related to our failure to comply with our reporting obligations under the 2026 Indenture.

Special interest, if any, will be payable semiannually in arrears on January 15 and July 15 of each year, beginning on July 15, 2021.

We received proceeds from the issuance of the 2026 Notes of $ 484.3 million, net of $ 15.7 million of transaction fees and other debt issuance costs.

We may redeem for cash, all or any portion of the 2026 Notes, at our option, on or after January 20, 2024, at a redemption price equal to 100 % of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid special interest, if any, to, but excluding, the redemption date, if the last reported sale price of our common stock has been at least 130 % of the conversion price for the 2026 Notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption.

No sinking fund is provided for the 2026 Notes.

The 2026 Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding August 15, 2025, only under the following circumstances:

(1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2021 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130 % of the conversion price for the 2026 Notes on each applicable trading day;

(2) during the five business day period immediately after any 10 consecutive trading day period in which, for each trading day of that period, the trading price per $1,000 principal amount of 2026 Notes for such trading day was less than 98 % of the product of the last reported sale price of our common stock and the conversion rate for the 2026 Notes on each such trading day;

(3) if we call any or all of the 2026 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date, but only with

ALARM.COM HOLDINGS, INC.

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

September 30, 2025 and 2024

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

or (4) upon the occurrence of specified corporate events as set forth in the 2026 Indenture.

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, 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.

In addition, following certain corporate events that occur prior to the maturity date of the 2026 Notes or if we deliver a notice of redemption in respect of the 2026 Notes, we will, under certain circumstances, increase the conversion rate of the 2026 Notes for a holder who elects to convert its 2026 Notes (or any portion thereof) in connection with such a corporate event or convert its 2026 Notes called (or deemed called) for redemption during the related redemption period (as defined in the 2026 Indenture), as the case may be.

If we undergo a fundamental change (as defined in the 2026 Indenture), subject to certain exceptions and except as described in the 2026 Indenture, holders may require us to repurchase for cash all or any portion of their 2026 Notes at a fundamental change repurchase price equal to 100 % of the principal amount of the 2026 Notes to be repurchased, plus accrued and unpaid special interest, if any, to, but excluding, the fundamental change repurchase date.

The 2026 Indenture includes customary covenants and sets forth certain events of default after which the 2026 Notes may be declared immediately due and payable and sets forth certain types of bankruptcy or insolvency events of default involving us after which the 2026 Notes become automatically due and payable.

We used some of the proceeds to repay the $ 110.0 million outstanding principal balance under our credit facility and also used some of the proceeds to pay accrued interest, fees and expenses related to our credit facility, which was terminated effective January 20, 2021.

We are using the remaining net proceeds from the issuance of the 2026 Notes for working capital and other general corporate purposes, which may include acquisitions or strategic investments in complementary businesses or technologies.

We account for the 2026 Notes as a liability.

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 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 $ 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,

Principal $ 500,000 $ 500,000

Unamortized debt issuance costs ( 932 ) ( 3,319 )

Net carrying amount $ 499,068 $ 496,681

Interest expense related to the 2026 Notes is as follows (in thousands):

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Amortization of debt issuance costs $ 797 $ 791 $ 2,387 $ 2,372

Total interest expense $ 797 $ 791 $ 2,387 $ 2,372

ALARM.COM HOLDINGS, INC.

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

September 30, 2025 and 2024

On January 14, 2026, we paid $ 500.0 million in aggregate principal amount to holders of the 2026 Notes, fully settling the outstanding balance in accordance with the repayment terms.

As of December 31, 2025, the fair value of our 2026 Notes was $ 499.1 million.

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 was classified as Level 2 in the fair value hierarchy.

Convertible Senior Notes - 2029 Notes

On May 31, 2024, we issued $ 500.0 million aggregate principal amount of 2.25 % convertible senior notes due June 1, 2029, in a private placement to qualified institutional buyers, or the 2029 Notes.

The terms of the 2029 Notes are governed by an Indenture, or the 2029 Indenture, by and between Alarm.com Holdings, Inc.

Bank Trust Company, National Association, as trustee.

The 2029 Notes are senior unsecured obligations that bear interest at a rate of 2.25 % per annum, payable semiannually in arrears on June 1 and December 1 of each year, beginning on December 1, 2024, and the principal amount of the 2029 Notes will not accrete.

We received proceeds from the issuance of the 2029 Notes of $ 485.2 million, net of $ 14.8 million of transaction fees and other debt issuance costs.

We may redeem for cash, all or any portion of the 2029 Notes (subject to the partial redemption limitation described below), at our option, on or after June 7, 2027, at a redemption price equal to 100 % of the principal amount of the 2029 Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, if the last reported sale price of our common stock has been at least 130 % of the conversion price for the 2029 Notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption.

If we redeem less than all the 2029 Notes, at least $ 75.0 million aggregate principal amount of the 2029 Notes must be outstanding and not subject to redemption as of the relevant redemption notice date.

No sinking fund is provided for the 2029 Notes.

The 2029 Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding January 1, 2029, only under the following circumstances:

(1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2024 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130 % of the conversion price for the 2029 Notes on each applicable trading day;

(2) during the five business day period immediately after any 10 consecutive trading day period in which, for each trading day of that period, the trading price per $1,000 principal amount of 2029 Notes for such trading day was less than 98 % of the product of the last reported sale price of our common stock and the conversion rate for the 2029 Notes on each such trading day;

(3) if we call any or all of the 2029 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date, but only with respect to the 2029 Notes called (or deemed called) for redemption;

or (4) upon the occurrence of specified corporate events as set forth in the 2029 Indenture.

On or after January 1, 2029, until the close of business on the second scheduled trading day immediately preceding the maturity date of the 2029 Notes, holders of the 2029 Notes may convert all or any portion of their 2029 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 2029 Notes with cash.

The initial conversion rate for the 2029 Notes is 11.4571 shares of our common stock per $1,000 principal amount of 2029 Notes, which is equivalent to an initial conversion price of $ 87.28 per share of our common stock, subject to adjustment under certain circumstances in accordance with the terms of the 2029 Indenture.

In addition, following certain corporate events that occur prior to the maturity date of the 2029 Notes or if we deliver a notice of redemption in respect of some or all of the 2029 Notes, we will, under certain circumstances, increase the conversion rate of the 2029 Notes for a holder who elects to convert its 2029 Notes (or any portion thereof) in connection with such a corporate event or convert its 2029 Notes called (or deemed called) for redemption during the related redemption period (as defined in the 2029 Indenture), as the case may be.

If we undergo a fundamental change (as defined in the 2029 Indenture), subject to certain exceptions and except as described in the 2029 Indenture, holders may require us to repurchase for cash all or any portion of their 2029 Notes at a fundamental change repurchase price equal to 100 % of the principal amount of the 2029 Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date.

The 2029 Indenture includes customary covenants and sets forth certain events of default after which the 2029 Notes may be declared immediately due and payable and sets forth certain types of bankruptcy or insolvency events of default involving us after which the 2029 Notes become automatically due and payable.

We used $ 63.1 million of the net proceeds from the 2029 Notes to pay the cost of the capped call transactions described below and used $ 75.0 million to repurchase 1,117,068 shares of our common stock concurrently with the pricing of the 2029 Notes, which was separately authorized by our board of directors.

We are using the remaining net proceeds from the issuance of the 2029 Notes for general corporate purposes, which may include acquisitions or strategic investments in complementary businesses or technologies, other repurchases of our common stock, repurchases of our 2026 Notes and for working capital, operating expenses and capital expenditures.

ALARM.COM HOLDINGS, INC.

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

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

As of March 31, 2026 and December 31, 2025, the fair value of our 2029 Notes was $ 461.6 million and $ 477.3 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 $ 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.

Based on the closing price of our common stock of $ 43.19 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 March 31, 2026.

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

September 30,

2026 December 31,

2 unchanged sentences

Net carrying amount $ 490,365 $ 489,641

ALARM.COM HOLDINGS, INC.

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

March 31, 2026 and 2025

Interest expense related to the 2029 Notes is as follows (in thousands):

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Interest expense

2 unchanged sentences

Total interest expense $ 3,537 $ 3,517

Capped Call – 2029 Notes

In connection with the offering of the 2029 Notes, we entered into privately negotiated capped call transactions with one of the initial purchasers and certain other financial institutions, at a cost of $ 63.1 million.

The capped call transactions cover, subject to customary adjustments substantially similar to those applicable to the 2029 Notes, the number of shares of our common stock initially underlying the 2029 Notes.

The cap price of the capped call transactions is initially $ 134.28 per share of our common stock, which represents a premium of 100 % over the closing price of our common stock on the Nasdaq Global Select Market on May 28, 2024, and is subject to certain adjustments under the terms of the capped call transactions.

The exercise price is $ 87.28 per share of common stock, subject to customary anti-dilution adjustments that mirror corresponding adjustments for the 2029 Notes.

We elected to integrate the capped call options with the 2029 Notes for federal income tax purposes pursuant to applicable U.S.

Treasury Regulations.

Accordingly, the $ 63.1 million cost of the purchased capped calls will be deductible for income tax purposes.

The original issue discount is accreted over the term of the 2029 Notes.

The capped call transactions are generally expected to reduce the potential dilution to holders of our common stock upon any conversion of the 2029 Notes and/or offset any cash payments we are required to make in excess of the principal amount of converted 2029 Notes, as the case may be, with such reduction and/or offset subject to a cap.

As the capped call options are both legally detachable and separately exercisable from the 2029 Notes, we account for the capped call options separately from the 2029 Notes.

The capped call options are indexed to our own common stock and classified in stockholders’ equity.

As such, the premiums paid for the capped call options were included as a net reduction to additional paid-in capital in the condensed consolidated balance sheets.

The capped call transactions will not be remeasured as long as they continue to meet the conditions for equity classification.

Commitments and Contingencies

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Although we cannot predict the maximum potential amount of future payments that may become due under these indemnification agreements, we do not believe any potential liability that might arise from such indemnity provisions is probable or material.

ALARM.COM HOLDINGS, INC.

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

September 30, 2025 and 2024

Legal Proceedings

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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, 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.

The decision with respect to one of the patents was affirmed by the United States Court of Appeals for the Federal Circuit, or Federal Circuit, on January 21, 2026, EcoFactor filed an appeal of the decision with respect to the second patent with the Federal Circuit on November 20, 2025, and EcoFactor is appealing the rejection of the third patent to the Patent Trial and Appeal Board, or 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.

6 unchanged sentences

patents owned by Causam.

Causam is seeking preliminary and permanent injunctions, enhanced damages and attorneys’ fees.

We have not yet responded to the complaint.

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 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.

and others as respondents.

We answered the complaint on October 4, 2021.

Among other things, we asserted defenses based on non-infringement and invalidity of the patents in question.

An evidentiary hearing in the investigation was held from June 28, 2022 through July 1, 2022.

On February 16, 2023, the ITC issued a final decision in favor of Alarm.com and EnergyHub.

Causam filed an appeal of the ITC decision on April 14, 2023.

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

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.

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

Causam voluntarily dismissed its case on March 5, 2026 prior to any decision.

On July 3, 2025, SkyBell Technologies, Inc., or SkyBell, filed a lawsuit against us in U.S.

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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.

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

On March 18, 2026, we filed an answer to the complaint denying any misappropriation of trade secrets.

Discovery closes on July 27, 2026.

No trial date has been set.

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

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.

ALARM.COM HOLDINGS, INC.

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

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.

March 31, 2026 and 2025

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.

7 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 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.

During the three months ended March 31, 2026, we repurchased 428,065 shares of our common stock under this program for $ 20.0 million, which includes applicable commissions and fees.

During the three months ended March 31, 2025, we repurchased 86,400 shares of our common stock under this program for $ 5.1 million, which includes applicable commissions and fees.

See Note 19 for details on the cancellation of the remaining balance of this program and the authorization of a new stock repurchase program by the board of directors on May 4, 2026.

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

When applicable, the excise tax will be included as part of the cost basis of shares acquired and is presented within stockholders’ equity in the condensed consolidated balance sheets.

Shares Withheld

As permitted under the terms of the 2015 Equity Incentive Plan, in 2021 the Compensation Committee authorized the withholding of shares of common stock in connection with the vesting of restricted stock unit awards issued to employees to satisfy applicable tax withholding requirements.

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 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)

September 30, 2025 and 2024

Stock-Based Compensation

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Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Cost of hardware and other revenue

$ — $ — $ — $ 2

Sales and marketing $ 742 $ 480

2 unchanged sentences

Total stock-based compensation expense $ 8,049 $ 9,458

The following table summarizes the components of non-cash stock-based compensation expense (in thousands):

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Stock options $ 1,062 $ 1,006 $ 2,895 $ 3,139

Restricted stock units 7,116 8,141 23,566 28,388

Employee stock purchase plan 43 47 152 148

Total stock-based compensation expense $ 8,221 $ 9,194 $ 26,613 $ 31,675

Tax (shortfall) / windfall benefit from stock-based awards

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

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)

September 30, 2025 and 2024

March 31, 2026 and 2025

Earnings Per Share

2 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Net income $ 23,382 $ 27,712

2 unchanged sentences

Add back total interest expense, net of tax, attributable to convertible senior notes

2,944 3,234 9,438 5,301

Net income attributable to common stockholders - diluted (B) $ 26,245 $ 31,195

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Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Stock options 798,027 614,178

1 unchanged sentence

Our redeemable noncontrolling interests relate to our 89 % equity ownership interest in OpenEye, our 99 % equity ownership interest in Noonlight and our 81 % equity ownership interest in CHeKT.

See Note 6 for details on the put option and call option contained in the CHeKT stockholder agreement.

We use the treasury stock method when calculating the dilutive impact of the stock options and restricted stock units on net income per share.

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

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.

Prior to the repayment of the 2026 Notes, after August 15, 2025, we were required to pay cash to satisfy the principal portion of our conversion obligation and deliver shares to satisfy any excess conversion value.

The following securities have been included in the calculation of diluted weighted average common shares outstanding:

Three Months Ended

2026 Notes — 3,396,950

2029 Notes 5,728,550 5,728,550

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.

In the event of conversion of the 2029 Notes, shares delivered to us under the capped call will offset the dilutive effect of the shares that we would issue under the 2029 Notes.

See Note 13 for further details on our 2029 Notes and the related capped call transactions.

See Note 12 for further details on our 2029 Notes.

ALARM.COM HOLDINGS, INC.

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

September 30, 2025 and 2024

March 31, 2026 and 2025

Significant Service Providers and Distributors

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.

During the three months ended March 31, 2026, our 10 largest revenue service provider partners or distributors accounted for 43 % of our consolidated revenue, as compared to 46 % for the same period 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 the three months ended March 31, 2026 and 2025.

No service provider partners represented more than 10% of accounts receivable as of March 31, 2026 and December 31, 2025.

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) / loss from equity method investments, net of the entities expected to be benefited during the year.

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

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.

For the three months ended March 31, 2026, we recorded a provision for income taxes of $ 5.9 million, resulting in an effective income tax rate of 20.2 %.

For the three months ended March 31, 2025, we recorded a provision for income taxes of $ 7.3 million, resulting in an effective income tax rate of 20.9 %.

For the three months ended March 31, 2026, our effective tax rate was below the 21.0% statutory rate primarily due to the impact of 2026 research and development tax credits claimed and the foreign derived deduction eligible income deduction, partially offset by the impact of state taxes, foreign withholding taxes, a shortfall from employee stock-based compensation and other nondeductible expenses.

For the three months ended March 31, 2025, our effective tax rate was below the 21.0% statutory rate primarily due to 2025 research and development tax credits claimed and the foreign derived intangible income deduction, partially offset by the impact of state taxes, foreign withholding taxes 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 $ 5.6 million as of September 30, 2025.

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

federal capital loss was $ 5.6 million as of March 31, 2026 and December 31, 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 $ 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 recorded a net increase to the unrecognized tax benefits liability of $ 0.3 million primarily due to a liability for research and development tax credits claimed during the three months ended March 31, 2026.

We recorded a net increase to the unrecognized tax benefits liability of $ 0.6 million primarily due to a liability for research and development tax credits claimed during the three months ended March 31, 2025.

Our condensed consolidated balance sheets included an accrual for total interest expense related to unrecognized tax benefits and penalties of $ 1.3 million and $ 1.2 million as of March 31, 2026 and December 31, 2025, respectively.

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

1 unchanged sentence

Tax authorities may not agree with the treatment of items reported in our tax returns, and therefore the outcome of tax reviews and examinations can be unpredictable.

On October 13, 2021, the Internal Revenue Service commenced an examination of our federal income tax return for 2018 and on August 12, 2022, the Internal Revenue Service expanded the examination to include our federal income tax return for 2019.

On January 25, 2024, the Internal Revenue Service notified us that the income tax examination of our 2018 and 2019 federal income tax returns has been closed.

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 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.

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.

As of March 31, 2026, we did not have material undistributed foreign earnings.

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

During the three months ended September 30, 2025, we changed this assertion with respect to a portion of the 2024 and 2025 current earnings of our Canadian business to begin providing deferred taxes on such earnings, the tax impact of which was not material.

Segment Information

2 unchanged sentences

• Other segment

ALARM.COM HOLDINGS, INC.

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

March 31, 2026 and 2025

Our chief operating decision maker is our chief executive officer.

1 unchanged sentence

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 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 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 90 % of our revenue, net of intersegment eliminations, for the three months ended March 31, 2026, as compared to 93 % for the same period 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.

Inter-segment revenue includes sales of hardware between our segments.

ALARM.COM HOLDINGS, INC.

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

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 September 30, 2025

Alarm.com Other Intersegment Alarm.com Intersegment Other Total

SaaS and license revenue $ 153,289 $ 22,083 $ — $ — $ 175,372

Hardware and other revenue

78,298 3,771 ( 810 ) ( 231 ) 81,028

Total revenue

231,587 25,854 ( 810 ) ( 231 ) 256,400

Cost of SaaS and license revenue 17,715 6,518 90 ( 90 ) 24,233

Cost of hardware and other revenue 61,002 3,489 ( 870 ) ( 292 ) 63,329

Total cost of revenue 78,717 10,007 ( 780 ) ( 382 ) 87,562

Selling and marketing expense 23,266 6,232 — — 29,498

General and administrative expense 26,438 1,451 — — 27,889

Research and development expense 59,347 7,290 — — 66,637

Amortization and depreciation expense 7,367 426 — — 7,793

Total operating expenses 116,418 15,399 — — 131,817

Operating income / (loss)

$ 36,452 $ 448 $ ( 30 ) $ 151 $ 37,021

Reconciliation of operating income to income before income taxes

Operating income $ 37,021

Interest expense ( 4,326 )

Interest income 11,274

Other income / (expense), net 3,538

Income before income taxes $ 47,507

ALARM.COM HOLDINGS, INC.

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

September 30, 2025 and 2024

Three Months Ended September 30, 2024

Alarm.com Other Intersegment Alarm.com Intersegment Other Total

SaaS and license revenue $ 141,319 $ 17,957 $ — $ — $ 159,276

Hardware and other revenue

80,597 1,610 ( 817 ) ( 169 ) 81,221

Total revenue

221,916 19,567 ( 817 ) ( 169 ) 240,497

Cost of SaaS and license revenue 17,542 5,557 75 ( 75 ) 23,099

Cost of hardware and other revenue 61,214 1,346 ( 785 ) ( 126 ) 61,649

Total cost of revenue 78,756 6,903 ( 710 ) ( 201 ) 84,748

Selling and marketing expense 21,604 5,406 — — 27,010

General and administrative expense 24,174 1,538 — — 25,712

Research and development expense 55,479 6,742 — — 62,221

Amortization and depreciation expense 7,357 255 — — 7,612

Total operating expenses 108,614 13,941 — — 122,555

Operating income / (loss)

$ 34,546 $ ( 1,277 ) $ ( 107 ) $ 32 $ 33,194

Reconciliation of operating income to income before income taxes

Operating income $ 33,194

Interest expense ( 4,315 )

Interest income 14,384

Other income / (expense), net ( 89 )

Income before income taxes $ 43,174

ALARM.COM HOLDINGS, INC.

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

September 30, 2025 and 2024

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

Alarm.com Other Intersegment Alarm.com Intersegment Other Total

18 unchanged sentences

Interest income 4,931

Other income / (expense), net 703

Other expense, net ( 3,909 )

Income before income taxes $ 28,993

1 unchanged sentence

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

September 30, 2025 and 2024

Nine Months Ended September 30, 2024

March 31, 2026 and 2025

Three Months Ended March 31, 2025

Alarm.com Other Intersegment Alarm.com Intersegment Other Total

18 unchanged sentences

Interest income 12,371

Other income / (expense), net ( 1,665 )

Other expense, net ( 2,660 )

Income before income taxes $ 35,044

Alarm.com Other Intersegment Alarm.com Intersegment Other Total

Assets as of September 30, 2025

Total assets as of March 31, 2026

$ 1,695,687 $ 180,471 $ ( 232,471 ) $ ( 50 ) $ 1,643,637

Assets as of December 31, 2024

Total assets as of December 31, 2025

2,181,210 190,095 ( 234,681 ) ( 33 ) 2,136,591

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.

Cash additions to property and equipment for our segments are as follows (in thousands):

Three Months Ended

Alarm.com $ 745 $ 6,112

We derived substantially all revenue from North America for the three months ended March 31, 2026 and 2025.

Substantially all of our long-lived assets were in North America as of March 31, 2026 and December 31, 2025.

Subsequent Event

On May 4, 2026, our board of directors authorized the cancellation of the balance under the stock repurchase program ending May 31, 2026 and the adoption of a new stock repurchase program, under which we are authorized to purchase up to an aggregate of $ 150.0 million of our outstanding common stock during the two-year period ending May 4, 2028.

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