Alarm.com Holdings, Inc. (ALRM) SEC Filings & Earnings Calls

Cash decreased from $960.6M to $479.4M due to $500M convertible note repayment; liquidity reduced but still substantial.

“Total cash and cash equivalents was $479.4 million as of June 30, 2026, compared to $960.6 million as of December 31, 2025. The decrease was primarily due to the payment and full settlement of the $500.0 million aggregate principal amount of the 0% convertible senior notes.”

GAAP net income declined 29% year-over-year despite revenue growth, possibly due to higher costs or non-recurring items.

“GAAP net income was $24.2 million, compared to $34.2 million.” · word for word

Customer concentration risk

“ADT represented greater than 15% but not more than 20% of our revenue in 2025, 2024 and 2023.” · word for word

Litigation risk

“On July 3, 2025, SkyBell Technologies, Inc., or SkyBell, filed a lawsuit against us alleging that Alarm.com misappropriated SkyBell’s trade secrets relating to video doorbells.” · word for word

Customer concentration risk

“ADT represented greater than 15% but not more than 20% of our revenue in 2025, 2024 and 2023.” · word for word

Litigation risk

“On July 3, 2025, SkyBell Technologies, Inc., or SkyBell, filed a lawsuit against us alleging that Alarm.com misappropriated SkyBell’s trade secrets relating to video doorbells.” · word for word

Convertible note settlement reduced cash by $500M, but liquidity remains strong.

“The decrease in cash and cash equivalents was primarily due to the payment and full settlement of the $500.0 million aggregate principal amount of the 0% convertible senior notes on January 14, 2026.” · word for word

GAAP net income declined due to higher costs or non-cash items; adjusted metrics show improvement.

“GAAP net income was $23.4 million, compared to $27.7 million.” · word for word

Key person dependency on CEO

“Stephen Trundle has served as our Chief Executive Officer since January 2023. He previously served as our President and Chief Executive Officer from May 2003 and has been a member of our Board since October 2003.”

Concentrated ownership by large institutions

“BlackRock, Inc. 8,340,664 16.9 %”

Temporary leadership gap in venture businesses may impact strategic execution.

“Mr. Bedell will continue as a full-time employee and serve as senior advisor to CEO.” · word for word

Cash and cash equivalents decreased significantly by 21.3% YoY, and operating cash flow declined 25.7%.

“Total cash and cash equivalents decreased to $960.6M from $1.2207B. Cash flows from operations was $153.3M, compared to $206.4M.” · word for word

Customer concentration risk

“During the years ended December 31, 2025, 2024 and 2023, our 10 largest revenue service provider partners or distributors accounted for 45%, 46% and 50% of our revenue, respectively. ADT represented greater than 15% but not more than 20% of our revenue in 2025, 2024 and 2023.” · word for word

Tariff exposure risk

“A significant portion of our hardware is produced outside the United States, including in Vietnam, Thailand and Taiwan. The U.S. government has since announced several tariff framework agreements, including with countries where a significant portion of our hardware is produced, which have impacted our hardware revenue margins.” · word for word

Competition risk

“The markets in which we participate are highly competitive and competition may intensify in the future.” · word for word

Technology obsolescence risk

“The technology we employ may become obsolete and we may need to incur significant capital expenditures to update our technology.” · word for word

Customer concentration risk

“ADT represented greater than 15% but not more than 20% of our revenue in 2024, 2023 and 2022.” · word for word

Tariff risk

“The U.S. government has since announced several tariff framework agreements, including with countries where a significant portion of our hardware is produced, which have impacted our hardware revenue margins.” · word for word

Cybersecurity risk

“If security breaches in connection with the delivery of our solutions allow unauthorized third parties to access any of this data or obtain control of our subscribers’ systems, our reputation, business, financial condition, cash flows and results of operations could be harmed.” · word for word

Operating cash flow declined 21.8% YTD; free cash flow also down.

“Cash flows from operating activities $117.4M vs $150.2M; non-GAAP free cash flow $102.0M vs $142.3M.”