Alarm.com Holdings, Inc. reported its financial results for the first quarter of 2026, revealing a total revenue of $265.2 million, an increase of 11% from $238.8 million in the same period last year. The growth was driven by a 11% rise in Software-as-a-Service (SaaS) and license revenue, which reached $181.5 million, up from $163.8 million. However, net income for the quarter decreased to $23.4 million, compared to $27.7 million in the prior year, resulting in a diluted earnings per share of $0.47, down from $0.52.
The company's cost of revenue also increased, totaling $90.5 million, a 16% rise from $78.2 million in the previous year. This increase was attributed to a 29% rise in the cost of SaaS and license revenue, which reached $27.9 million, and an 11% increase in the cost of hardware and other revenue, which amounted to $62.6 million. Operating expenses rose to $143.0 million, up from $130.9 million, primarily due to increased sales and marketing expenses, which grew by 21% to $34.4 million.
In terms of operational metrics, Alarm.com reported a total of 2,051 employees as of March 31, 2026, a slight increase from 2,020 employees a year earlier. The company continues to focus on expanding its service provider partner network, which is crucial for its SaaS revenue model. The SaaS and license revenue renewal rate remained stable at 95%, indicating strong customer retention.
Strategically, Alarm.com completed the acquisition of EnergyHub, Inc. in November 2025, which is expected to enhance its offerings in energy management solutions. The company also reported a loss of $0.2 million from equity method investments during the quarter, reflecting the impact of market conditions on its investment portfolio. Looking ahead, Alarm.com anticipates that ongoing macroeconomic conditions may affect its operations, particularly in hardware sales and SaaS revenue growth, but remains committed to its growth strategy and operational enhancements.
About Alarm.com Holdings, Inc.
Alarm.com Holdings, Inc. provides a cloud-based platform delivering Internet of Things (IoT) solutions for residential, commercial, and multi-family properties. Its offerings include security, video monitoring, access control, energy management, gunshot detection, and wellness services. The company operates through a network of service provider partners who resell its SaaS subscriptions and hardware devices, leveraging advanced data analytics and AI to enhance property safety, automation, and operational efficiency.
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