What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-08-06 compared with 2026-05-07 · 236 added, 116 removed, 569 unchanged (38% of the section changed)

4 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

SaaS and license revenue $ 188,778 $ 169,993 $ 370,302 $ 333,793

17 unchanged sentences

Provision for income taxes 7,737 5,458 13,593 12,765

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

Income from equity method investments, net ( 849 ) ( 341 ) ( 1,094 ) ( 316 )

Net income 24,208 34,217 47,590 61,929

15 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Net income $ 24,208 $ 34,217 $ 47,590 $ 61,929

12 unchanged sentences

Cash and cash equivalents $ 479,418 $ 960,584

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

Accounts receivable, net of allowance for credit losses of $ 8,016 and $ 5,171 , and net of allowance for product returns of $ 2,050 and $ 2,140 as of June 30, 2026 and December 31, 2025, respectively

161,709 141,852

Inventory 94,349 94,429

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

Other current assets, net of allowance for credits losses of $ 750 and $ 749 as of June 30, 2026 and December 31, 2025, respectively

65,879 75,646

6 unchanged sentences

Investments in unconsolidated entities 232,470 226,931

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

Other assets, net of allowance for credit losses of $ 2 and $ 0 as of June 30, 2026 and December 31, 2025, respectively

42,778 43,120

17 unchanged sentences

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

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

no shares issued and outstanding as of June 30, 2026 and December 31, 2025

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

53,941,823 and 53,540,939 shares issued;

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

and 49,033,533 and 49,630,714 shares outstanding as of June 30, 2026 and December 31, 2025, respectively

Additional paid-in capital 564,053 549,913

Treasury stock, at cost;

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

4,908,290 and 3,910,225 shares as of June 30, 2026 and December 31, 2025, respectively

( 272,872 ) ( 227,852 )

7 unchanged sentences

(in thousands)

Three Months Ended

Six Months Ended

Cash flows from operating activities:

3 unchanged sentences

Reserve for product returns 987 1,111

Provision for credit losses on notes receivable 3 749

Amortization and depreciation 18,056 14,558

15 unchanged sentences

Cash flows from operating activities 92,522 46,773

Cash flows from / (used in) investing activities:

Cash flows used in investing activities:

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

5 unchanged sentences

Purchase of investments in unconsolidated entities ( 16,173 ) ( 174,700 )

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

Cash flows used in investing activities ( 20,712 ) ( 232,988 )

Cash flows used in financing activities:

Repayments of convertible senior notes ( 500,000 ) —

Payments of deferred consideration for acquisitions ( 300 ) —

Payments of deferred consideration for acquisitions and investments in unconsolidated entities ( 12,089 ) ( 1,741 )

Purchases of treasury stock, including transaction costs ( 45,020 ) ( 10,167 )

7 unchanged sentences

Cash and cash equivalents $ 479,418 $ 1,024,862

Restricted cash included in other current assets and other assets 6,126 8,221

Restricted cash included in other current assets, net, and other assets, net 6,119 8,277

Total cash, cash equivalents and restricted cash $ 485,537 $ 1,033,139

14 unchanged sentences

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

Common stock issued in connection with equity-based plans — 219 2 41 — — — — 43

Purchase of treasury stock, including transaction costs and excise tax — — — ( 186 ) 570 ( 25,025 ) — — ( 25,211 )

Stock-based compensation expense — — — 7,591 — — — — 7,591

Accretion adjustments of redeemable noncontrolling interest to redemption value 1,925 — — ( 1,925 ) — — — — ( 1,925 )

Net income / (loss) attributable to common stockholders ( 38 ) — — — — — — 24,246 24,246

Other comprehensive loss — — — — — — ( 101 ) — ( 101 )

Balance as of June 30, 2026 $ 45,865 53,942 $ 540 $ 564,053 4,908 $ ( 272,872 ) $ 2,029 $ 570,705 $ 864,455

ALARM.COM HOLDINGS, INC.

Condensed Consolidated Statements of Equity — (Continued)

(in thousands)

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

9 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 — 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

See accompanying notes to the condensed consolidated financial statements.

1 unchanged sentence

Notes to the Condensed Consolidated Financial Statements (Unaudited)

March 31, 2026 and 2025

June 30, 2026 and 2025

Alarm.com Holdings, Inc.

16 unchanged sentences

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

The results of operations for the three 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.

The results of operations for the three and six months ended June 30, 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.

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.

Certain previously reported amounts in the condensed consolidated statements of operations for the three months ended June 30, 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 six months ended June 30, 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.

There have been no material changes to our significant accounting policies or our use of estimates during the three and six months ended June 30, 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.

During the three and six months ended June 30, 2026, we did not adopt any new accounting pronouncements.

ALARM.COM HOLDINGS, INC.

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

March 31, 2026 and 2025

June 30, 2026 and 2025

Not Yet Adopted

12 unchanged sentences

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

On May 19, 2026, the FASB issued ASU 2026-02, "Environmental Credits and Environmental Credit Obligations (Topic 818)," to improve the financial accounting and disclosure of environmental credits and environmental credit obligations.

This amendment provides recognition, measurement, presentation and disclosure requirements for all entities that generate, purchase or receive environmental credits or have a regulatory compliance obligation that may be settled with environmental credits.

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.

This amendment should be applied on a retrospective basis as of the beginning of the annual reporting period of adoption.

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

Revenue from Contracts with Customers

1 unchanged sentence

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

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

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

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

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Beginning of period balance $ 18,297 $ 13,147 $ 17,947 $ 12,088

Additions to contract assets

2,924 2,589 6,751 5,773

Amortization or satisfaction of outstanding performance obligation of capitalized contract assets

1 unchanged sentence

End of period balance $ 17,785 $ 13,474 $ 17,785 $ 13,474

ALARM.COM HOLDINGS, INC.

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

June 30, 2026 and 2025

Contract Liabilities

2 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Beginning of period balance $ 31,843 $ 27,524 $ 29,884 $ 26,559

2 unchanged sentences

End of period balance $ 31,814 $ 27,241 $ 31,814 $ 27,241

ALARM.COM HOLDINGS, INC.

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

March 31, 2026 and 2025

Accounts Receivable, Net

5 unchanged sentences

Accounts receivable, net $ 161,709 $ 141,852

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.

For the three and six months ended June 30, 2026, we recorded a reserve for product returns of $ 0.6 million and $ 1.0 million in our hardware and other revenue, respectively, as compared to $ 0.7 million and $ 1.1 million for the same periods in the prior year.

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

2 unchanged sentences

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

There were no changes to our portfolio segments for our accounts receivable during the three 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.

There were no changes to our portfolio segments for our accounts receivable during the three and six months ended June 30, 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 and six months ended June 30, 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

March 31, 2026 Three Months Ended

March 31, 2025

June 30, 2026 Three Months Ended

June 30, 2025 Six Months Ended

June 30, 2026 Six Months Ended

June 30, 2025

Subsidiaries All Other

1 unchanged sentence

Subsidiaries All Other

Subsidiaries Alarm.com

Subsidiaries All Other

Subsidiaries Alarm.com

Subsidiaries All Other

Beginning of period balance $ ( 5,887 ) $ ( 226 ) $ ( 4,600 ) $ ( 121 ) $ ( 4,931 ) $ ( 240 ) $ ( 3,777 ) $ ( 93 )

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

(Provision for) / recovery of expected credit losses ( 2,187 ) 8 ( 456 ) ( 119 ) ( 3,347 ) 1 ( 1,402 ) ( 150 )

Write-offs 276 — 138 16 480 21 261 19

End of period balance $ ( 7,798 ) $ ( 218 ) $ ( 4,918 ) $ ( 224 ) $ ( 7,798 ) $ ( 218 ) $ ( 4,918 ) $ ( 224 )

ALARM.COM HOLDINGS, INC.

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

June 30, 2026 and 2025

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

7 unchanged sentences

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)

March 31, 2026 and 2025

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.

Goodwill and Intangible Assets, Net

5 unchanged sentences

Foreign currency translation adjustment ( 320 ) — ( 320 )

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

Balance as of June 30, 2026 $ 178,278 $ 46,363 $ 224,641

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 — — — — 90 90

Capitalized software development costs — — — 553 — 553

Amortization ( 5,272 ) ( 6,335 ) ( 152 ) ( 445 ) — ( 12,204 )

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.

Balance as of June 30, 2026 $ 49,752 $ 33,286 $ 1,150 $ 3,467 $ 136 $ 87,791

We recorded $ 6.0 million and $ 12.0 million of amortization related to our intangible assets for the three and six months ended June 30, 2026, respectively, as compared to $ 4.7 million and $ 9.2 million for the same periods in the prior year.

There were no impairments of long-lived intangible assets during the three and six months ended June 30, 2026 and 2025.

ALARM.COM HOLDINGS, INC.

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

June 30, 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):

March 31, 2026

June 30, 2026

Amount Accumulated

6 unchanged sentences

Capitalized software development costs 4,587 ( 1,120 ) 3,467 3.0

136 — 136 5.7

Total intangible assets $ 262,369 $ ( 174,578 ) $ 87,791 8.1

9 unchanged sentences

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

ALARM.COM HOLDINGS, INC.

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

March 31, 2026 and 2025

Investments in Unconsolidated Entities

1 unchanged sentence

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.

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 six months ended June 30, 2026.

On May 29, 2026, we paid $ 14.1 million in cash to purchase an additional investment in SafeStreets USA, LLC, to maintain our 24.7 % ownership percentage.

This investment is included in the Alarm.com segment and is accounted for under the equity method of accounting.

ALARM.COM HOLDINGS, INC.

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

June 30, 2026 and 2025

Summary of Investments in Unconsolidated Entities

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Ownership Percentage

18 unchanged sentences

Three Months Ended

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

June 30, Six Months Ended

2026 2025 2026 2025

Income from equity method investments, net $ ( 849 ) $ ( 341 ) $ ( 1,094 ) $ ( 316 )

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

June 30, Six Months Ended

2026 2025 2026 2025

Revenue from equity method investees

1 unchanged sentence

Interest income from equity method investees

376 283 749 288

Distributions received from equity method investees

March 31, 2026 December 31, 2025

3,762 — 6,430 —

June 30, 2026 December 31, 2025

Outstanding principal from loans to equity method investees

6 unchanged sentences

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

March 31, 2026 and 2025

June 30, 2026 and 2025

Loan to SafeStreets

4 unchanged sentences

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

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

As of June 30, 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 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.

As of June 30, 2026 and December 31, 2025, $ 0.9 million of principal was outstanding from the service provider partner under the loan agreement.

For the three and six months ended June 30, 2026 and 2025, we recognized less than $ 0.1 million and $ 0.1 million of revenue from the service provider partner associated with this loan, respectively.

Allowance for Credit Losses - Notes Receivable

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

There were no changes to our policies or practices involving the issuance of notes receivable, customer acquisitions or any other factors that influenced our estimate of expected credit losses for notes receivable during the three months ended March 31, 2026.

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

Three Months Ended

March 31, 2026 Three Months Ended

March 31, 2025

June 30, 2026 Three Months Ended

June 30, 2025 Six Months Ended

June 30, 2026 Six Months Ended

June 30, 2025

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

4 unchanged sentences

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

March 31, 2026

June 30, 2026

Loan Receivables:

8 unchanged sentences

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

March 31, 2026 and 2025

June 30, 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 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.

There was one note receivable placed on nonaccrual status as of June 30, 2026 and December 31, 2025.

During the three and six months ended June 30, 2026 and 2025, there was no interest income recognized related to notes receivable that were in nonaccrual status.

As of June 30, 2026 and December 31, 2025, there were $ 0.2 million of notes receivable placed in nonaccrual status for which there was not a related allowance for credit losses.

As of June 30, 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 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.

As of June 30, 2026 and December 31, 2025, $ 23.4 million and $ 19.4 million of prepaid expenses were included in other current assets, net, 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 March 31, 2026

Money market accounts as of June 30, 2026

$ 456,301 $ — $ — $ 456,301

1 unchanged sentence

941,134 — — 941,134

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

Equity securities with readily determinable fair value as of June 30, 2026

8,496 — — 8,496

1 unchanged sentence

14,858 — — 14,858

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.

As of June 30, 2026, $ 450.3 million of our money market accounts was included in cash and cash equivalents, $ 4.1 million was included in other assets, net, and $ 1.9 million was included in other current assets, net, 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, net, and $ 2.0 million was included in other current assets, net, 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 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.

During the three and six months ended June 30, 2026, we recorded a loss on equity securities of $ 2.1 million and $ 5.8 million, respectively, as compared to a loss of $ 1.5 million and $ 3.8 million for the same periods in the prior year.

Our investments in public entities are recorded at fair value within other current assets, net, 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 June 30, 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 months ended March 31, 2026 and 2025.

There were no transfers into or out of Level 3 or reclassifications between levels of the fair value hierarchy during the three and six months ended June 30, 2026 and 2025.

ALARM.COM HOLDINGS, INC.

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

March 31, 2026 and 2025

June 30, 2026 and 2025

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

4 unchanged sentences

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

13,413 13,713

Contingent consideration liability from acquisition

10 unchanged sentences

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.

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.

As of June 30, 2026 and December 31, 2025, the fair value of our 2029 Notes was $ 475.2 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 $ 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.

Based on the closing price of our common stock of $ 46.72 on the last trading day of the quarter, the if-converted value of the 2029 Notes did not exceed the principal amount of $ 500.0 million as of June 30, 2026.

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

5 unchanged sentences

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

March 31, 2026 and 2025

June 30, 2026 and 2025

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

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Interest expense

27 unchanged sentences

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

On July 22, 2021, Causam Enterprises, Inc., or Causam, filed a lawsuit against us in U.S.

District Court, Western District of Texas, alleging that Alarm.com’s smart thermostats infringe four U.S.

patents owned by Causam.

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.

District Court, Eastern District of Virginia, alleging that Alarm.com misappropriated SkyBell’s trade secrets relating to video doorbells.

On May 26, 2026, SkyBell filed an amended complaint adding allegations that Alarm.com infringed copyrights in its computer source code.

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

Discovery closes on July 27, 2026.

On June 5, 2026, we filed an answer to the amended complaint denying any misappropriation of trade secrets or infringement of copyrights.

Discovery is expected to be completed in September 2026.

No trial date has been set.

2 unchanged sentences

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

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

ALARM.COM HOLDINGS, INC.

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

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.

June 30, 2026 and 2025

For example, we are incurring costs associated with the indemnification of Southern Electric Maryland Electric Cooperative, Inc., or SMECO, in an ongoing patent infringement suit.

On May 26, 2026, Causam Enterprises, Inc.

filed a lawsuit against SMECO in U.S.

District Court, District of Maryland, alleging that SMECO infringes six patents owned by Causam relating to SMECO’s demand response program which includes, among other systems, the EnergyHub platform.

Causam is seeking damages and attorneys’ fees.

Should Causam prevail, we could be required to indemnify SMECO for damages if a license or other right to continue using our technology is not made available or we are unable to design around such patents, and required to pay ongoing royalties and comply with unfavorable terms if such a license is made available.

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

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

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Litigation is subject to many factors that are difficult to predict, so there can be no assurance that, in the event of a material unfavorable result in one or more claims, we will not incur material costs.

Tariff Matters

On April 20, 2026, the U.S.

Customs and Border Protection began accepting refund requests through its Consolidated Administration and Processing of Entries portal, and we subsequently filed for an estimated $ 14.5 million in tariffs previously paid under the International Emergency Economic Powers Act.

During the three and six months ended June 30, 2026, we recorded less than one third of the estimated $ 14.5 million as a reduction to cost of hardware and other revenue and processed a commensurate amount of refunds to customers, excluding certain processing fees, as a reduction to hardware and other revenue.

As of June 30, 2026, we have not recorded any additional receivables related to potential refunds for previous tariffs we paid because we are unable to assess the probability of their recovery.

Stockholders' Equity

Stock Repurchase Programs

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 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.

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 were authorized to purchase up to an aggregate of $ 100.0 million of our outstanding common stock during the two-year period ended May 31, 2026.

On May 4, 2026, our board of directors authorized the cancellation of the balance under the stock repurchase program ended May 31, 2026 and adopted 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.

During the three and six months ended June 30, 2026, we repurchased 570,000 and 998,065 shares of our common stock under these programs for $ 25.0 million and $ 45.0 million, respectively, which includes applicable commissions and fees.

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

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.

ALARM.COM HOLDINGS, INC.

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

June 30, 2026 and 2025

Stock-Based Compensation

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Sales and marketing $ 592 $ 620 $ 1,334 $ 1,100

2 unchanged sentences

Total stock-based compensation expense $ 7,576 $ 8,934 $ 15,625 $ 18,392

ALARM.COM HOLDINGS, INC.

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

March 31, 2026 and 2025

Earnings Per Share

2 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Net income $ 24,208 $ 34,217 $ 47,590 $ 61,929

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

2,666 3,249 5,328 6,494

Net income attributable to common stockholders - diluted (B) $ 26,912 $ 37,801 $ 53,157 $ 68,996

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Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Stock options 800,577 789,688 800,577 698,302

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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.

ALARM.COM HOLDINGS, INC.

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

June 30, 2026 and 2025

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

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

2026 Notes — 3,396,950 — 3,396,950

3 unchanged sentences

See Note 12 for further details on our 2029 Notes.

ALARM.COM HOLDINGS, INC.

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

March 31, 2026 and 2025

Significant Service Providers and Distributors

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.

During the three and six months ended June 30, 2026, our 10 largest revenue service provider partners or distributors accounted for 42 % of our consolidated revenue, as compared to 46 % for the same periods in the prior year.

One of our service provider partners within the Alarm.com segment individually represented greater than 15 % but not more than 20 % of our revenue for each of the three and six months ended June 30, 2026 and 2025.

One service provider partner represented more than 10 % of accounts receivable as of June 30, 2026, and no service provider partner represented more than 10% of accounts receivable as of 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 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.

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.

For the three and six months ended June 30, 2026, we recorded a provision for income taxes of $ 7.7 million and $ 13.6 million, respectively, resulting in an effective income tax rate of 24.9 % and 22.6 % for those periods.

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

For the three and six months ended June 30, 2026, our effective tax rate was above the 21.0% statutory rate primarily due to the impact of state taxes, foreign withholding taxes, a shortfall from employee stock-based compensation and other nondeductible expenses, partially offset by the impact of 2026 research and development tax credits claimed and the foreign derived deduction eligible income deduction.

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

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, 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.

federal capital loss was $ 5.6 million as of June 30, 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 $ 0.3 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 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 six months ended June 30, 2026.

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

Our condensed consolidated balance sheets included an accrual for total interest expense related to unrecognized tax benefits and penalties of $ 1.4 million and $ 1.2 million as of June 30, 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.

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

ALARM.COM HOLDINGS, INC.

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

June 30, 2026 and 2025

As of June 30, 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.

4 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 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 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 87 % and 88 % of our revenue, net of intersegment eliminations, for the three and six months ended June 30, 2026, respectively, as compared to 92 % for the same periods in the prior year.

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

2 unchanged sentences

The reportable segment operational data is presented in the tables below (in thousands):

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Alarm.com Other Intersegment Alarm.com Intersegment Other Total

22 unchanged sentences

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

March 31, 2026 and 2025

Three Months Ended March 31, 2025

June 30, 2026 and 2025

Three Months Ended June 30, 2025

Alarm.com Other Intersegment Alarm.com Intersegment Other Total

21 unchanged sentences

Alarm.com Other Intersegment Alarm.com Intersegment Other Total

Total assets as of March 31, 2026

Total assets as of June 30, 2026

$ 1,711,476 $ 181,724 $ ( 236,112 ) $ ( 110 ) $ 1,656,978

1 unchanged sentence

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

ALARM.COM HOLDINGS, INC.

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

June 30, 2026 and 2025

Six Months Ended June 30, 2026

Alarm.com Other Intersegment Alarm.com Intersegment Other Total

SaaS and license revenue $ 317,173 $ 53,129 $ — $ — $ 370,302

Hardware and other revenue 164,338 11,007 ( 1,977 ) ( 743 ) 172,625

Total revenue 481,511 64,136 ( 1,977 ) ( 743 ) 542,927

Cost of SaaS and license revenue 36,441 21,371 195 ( 195 ) 57,812

Cost of hardware and other revenue 121,604 9,564 ( 2,032 ) ( 784 ) 128,352

Total cost of revenue 158,045 30,935 ( 1,837 ) ( 979 ) 186,164

Selling and marketing expense 51,541 15,872 — — 67,413

General and administrative expense 58,614 5,486 — — 64,100

Research and development expense 121,537 21,530 — — 143,067

Amortization and depreciation expense 14,684 3,372 — — 18,056

Total operating expenses 246,376 46,260 — — 292,636

Operating income / (loss) $ 77,090 $ ( 13,059 ) $ ( 140 ) $ 236 $ 64,127

Reconciliation of operating income to income before income taxes

Operating income $ 64,127

Interest expense ( 7,215 )

Interest income 9,422

Other income / (expense), net ( 6,245 )

Income before income taxes $ 60,089

ALARM.COM HOLDINGS, INC.

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

June 30, 2026 and 2025

Six Months Ended June 30, 2025

Alarm.com Other Intersegment Alarm.com Intersegment Other Total

SaaS and license revenue $ 298,645 $ 35,148 $ — $ — $ 333,793

Hardware and other revenue 156,922 4,531 ( 1,336 ) ( 780 ) 159,337

Total revenue 455,567 39,679 ( 1,336 ) ( 780 ) 493,130

Cost of SaaS and license revenue 34,272 10,949 171 ( 171 ) 45,221

Cost of hardware and other revenue 118,369 4,183 ( 1,210 ) ( 867 ) 120,475

Total cost of revenue 152,641 15,132 ( 1,039 ) ( 1,038 ) 165,696

Selling and marketing expense 47,502 12,183 — — 59,685

General and administrative expense 50,181 3,904 — — 54,085

Research and development expense 121,941 15,496 — — 137,437

Amortization and depreciation expense 13,967 591 — — 14,558

Total operating expenses 233,591 32,174 — — 265,765

Operating income / (loss) $ 69,335 $ ( 7,627 ) $ ( 297 ) $ 258 $ 61,669

Reconciliation of operating income to income before income taxes

Operating income $ 61,669

Interest expense ( 8,635 )

Interest income 24,179

Other income / (expense), net ( 2,835 )

Income before income taxes $ 74,378

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

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Alarm.com $ 4,623 $ 4,544 $ 5,368 $ 10,656

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.

Other 224 8 391 11

We derived substantially all revenue from North America for the three and six months ended June 30, 2026 and 2025.

Substantially all of our long-lived assets were in North America as of June 30, 2026 and December 31, 2025.

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