Alarm.com (ALRM) Q4 Profitability Holds Near 13% Margin Supporting Value Narrative

Simply Wall St.05-09

Alarm.com Holdings (ALRM) just closed out FY 2025 with fourth quarter revenue of US$261.7 million and basic EPS of US$0.70, alongside trailing twelve month revenue of about US$1.0 billion and EPS of ...

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Over recent quarters the company has seen revenue move from US$242.2 million in Q4 2024 to US$238.8 million in Q1 2025, then to US$254.3 million in Q2, US$256.4 million in Q3, and US$261.7 million in Q4. Quarterly EPS ranged between US$0.56 and US$0.74 over the same period, giving...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"ALRM":"Alarm.com Holdings, Inc.","BK4023":"应用软件"},"translate_title":"Alarm.com(ALRM)第四季度盈利能力保持在13%左右，支持价值叙事","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ALRM":1.5},"content_text":"Alarm.com Holdings (ALRM) just closed out FY 2025 with fourth quarter revenue of US$261.7 million and basic EPS of US$0.70, alongside trailing twelve month revenue of about US$1.0 billion and EPS of US$2.66. Over recent quarters the company has seen revenue move from US$242.2 million in Q4 2024 to US$238.8 million in Q1 2025, then to US$254.3 million in Q2, US$256.4 million in Q3, and US$261.7 million in Q4. Quarterly EPS ranged between US$0.56 and US$0.74 over the same period, giving investors a clear view of how top line and per share earnings have tracked together into year end as margins hold steady rather than breaking sharply in either direction. See our full analysis for Alarm.com Holdings. With the latest numbers on the table, the next step is to see how this earnings profile lines up with the main narratives around Alarm.com Holdings, highlighting where the story is supported by the figures and where it starts to look different. See what the community is saying about Alarm.com Holdings NasdaqGS:ALRM Revenue & Expenses Breakdown as at May 2026 AdvertisementTTM earnings and margins hold around 13%  Over the last 12 months, Alarm.com generated about US$1.0b in revenue and US$132.6 million in net income, which works out to a 13.1% net profit margin that is slightly below last year’s 13.2% margin. What stands out for the bullish view is that five year earnings growth of 18.8% a year sits alongside this 13.1% margin. Forecasts step down to about 6.5% annual earnings growth, which raises questions about whether the same operating model that produced the past earnings pace will simply level off, or whether bulls are right that newer areas like commercial, international and energy management can eventually push margins higher from today’s base.\n     Bulls point to recurring software revenue and an asset light model as key drivers of past earnings expansion, while the latest data show margins holding close to 13%, not yet moving meaningfully higher. Consensus expects profit margins to reach 13.9% in a few years, so the current 13.1% outcome is an important reference point for judging how much upside is actually being built into those forecasts.    Supporters who see recurring revenue and margin expansion as the core of the bullish case may want to see how that argument is laid out in more detail in the dedicated bull narrative for Alarm.com Holdings 🐂 Alarm.com Holdings Bull Case Revenue growth forecasts trail wider market  Analysts are looking for about 4.5% revenue growth each year from here, which is below the 11.4% per year figure cited for the broader US market, even though trailing twelve month revenue has already reached roughly US$1.0b. Critics who lean on the bearish narrative highlight slower expected growth and pressure from competition and regulation. That view lines up with forecasts that put revenue and earnings growth below market averages, even as the business still produces around US$132.6 million of net income and a 13.1% margin.\n     Bears focus on risks like rising compliance costs and tighter pricing power, which would help explain why forward growth expectations sit well under the 18.8% historical earnings growth rate. At the same time, the forecasts still show earnings rising from about US$132.6 million today, so the bearish case is more about the pace of that growth than about a collapse in profitability in the numbers provided.    If you are trying to weigh that more cautious angle against the actual figures, it can help to see how skeptics frame those risks around margins, competition and regulation in the full bear narrative for Alarm.com Holdings 🐻 Alarm.com Holdings Bear Case P/E discount and DCF gap stand out  Alarm.com trades on a trailing P/E of 17.5x at a share price of US$47.00, compared with a peer average of 58.8x, a US software industry average of 29.3x, and a DCF fair value figure of US$70.28 in the dataset. Both multiples and that DCF mark sit above where the stock is currently priced. Consensus narrative notes that earnings are still expected to grow to about US$160.4 million over the next few years. At the same time, the current P/E is lower than peers and the share price is below both the US$58.00 analyst target and the US$70.28 DCF fair value, which leaves investors weighing whether the slower forecast growth and modest 13.1% margin fully explain that discount.\n     The gap between 17.5x P/E today and higher peer and industry multiples is clear in the data, even as forecast revenue growth of 4.5% a year and earnings growth of about 6.5% a year sit below broader market expectations. With the analyst target at US$58.00 versus a US$47.00 share price and the DCF fair value at US$70.28, the figures frame a tension between a lower growth profile and what appears to be a lower valuation than many software peers.    Next Steps To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Alarm.com Holdings on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves. With the mix of bullish, bearish and consensus views laid out, the real question is how this all stacks up for you personally. Take a moment to review the figures, pressure test the assumptions, and see whether the rewards investors are focusing on feel justified in your own framework by looking at the 4 key rewards. See What Else Is Out There Alarm.com Holdings combines a 13.1% margin with forecast revenue and earnings growth below wider market expectations, even as its P/E and DCF figures suggest a discount. If that slower growth outlook makes you hesitant to lean on a single stock, widen your options and compare potential opportunities using the 51 high quality undervalued stocks.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n        and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n        financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n        Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n        Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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