Alarm.com Holdings, Inc. Q3 2026 Earnings Recap

Alarm.com shares fell 3.0% after earnings, with the main concern likely the unusually high Q3 adjusted EBITDA benefiting from one-time hardware cost recoveries and timing effects that management says will not persist. SaaS growth was 9% year over year and the company raised its 2026 SaaS revenue guidance, but the transcript provided does not include the detailed financial outlook or 2027 figures.

Key Takeaways

• SaaS and license revenue was $191.2 million; SaaS revenue grew 9% year over year.
• Adjusted EBITDA was $66.2 million, helped by one-time hardware cost recoveries and hardware gross-margin timing effects; management expects hardware gross margins to return to more typical levels.
• The company raised full-year 2026 SaaS revenue guidance, citing growth initiatives and continued strength in revenue retention.
• Alarm.com acquired CellGate, expanding into gate access and video intercom solutions and the fence-and-gate contractor channel.
• Management said it is modeling ADT’s contribution as before the announced acquisition by Thrive Holdings.