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Alarm.com Holdings (ALRM) Q3 2025 earnings results (third quarter 2025)

10-Q filed Nov 6, 2025

Alarm.com Holdings (ALRM) reported revenue of $256M for the third quarter 2025 (Q3 2025), +7% from a year earlier and +0.8% from the quarter before. Operating margin was 14.4%, net earnings $35.3M (13.8% of revenue).

Revenue$256M
Year over year+7%
Quarter over quarter+0.8%
Operating margin14.4%
Net earnings$35.3M

Alarm.com Holdings, Q3 2025: revenue $256M (+7% year over year), operating margin 14.4%, net earnings $35.3M, operating cash flow $70.6M. The chart follows the revenue to costs, profit and cash.

Q3 2025AmountQ/QY/Y
Revenue$256M+0.8%+7%
Operating profit$37.0M+16%+12%
Net earnings$35.3M+2%-4%
Operating cash flow$70.6M+211%-9%
Free cash flow$65.9M—-12%

What changed

Revenue was $256.4M in Q3 2025, up 7% year over year and up 1% from the previous quarter. SaaS and license revenue was the largest line at 68% of revenue. SaaS and license revenue added $16.1M year over year (up 10%), 101% of the total change.

Operating profit was $37.0M, a 14.4% margin (up 0.6 points year over year). Of the extra revenue versus a year earlier, 24% reached operating profit, above the 14% margin then. Total costs grew 6% against revenue growth of 7%. Net earnings were $35.3M, down 4% year over year. The effective tax rate was 30.2%. Non-operating items added $13.3M, 26% of pre-tax earnings, so the bottom line overstates operating performance.

Operating cash flow was $70.6M (down 9% year over year), 201% of net earnings. Non-cash charges added back $7.8M of depreciation and amortization and $8.2M of share-based compensation. Working capital and other items added $19.5M. After itions to property and equipment ($4.8M), free cash flow as the company reports it was $65.9M.

Questions

What was Alarm.com Holdings' revenue in the third quarter 2025?

Alarm.com Holdings (ALRM) reported revenue of $256M for the third quarter 2025 (Q3 2025), +7% from a year earlier and +0.8% from the quarter before.

Was Alarm.com Holdings profitable in the third quarter 2025?

Operating profit was $37.0M (14.4% of revenue) and net earnings $35.3M.

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Source: Alarm.com Holdings 10-Q on SEC EDGAR.