Alarm (3RL) Q3 2026 Earnings Report
DE:3RL Q3 2026 EPS Results
- Actual EPS
- EUR 0.80
- Consensus EPS
- EUR 0.67
- Beat/Miss
- Beat by +EUR 0.14
- One Year Ago EPS
- EUR 0.68
DE:3RL Q3 2026 Revenue Results
- Actual Revenue
- EUR 249.27M
- Expected Revenue
- EUR 237.12M
- Beat/Miss
- Beat by +EUR 12.15M
- YoY Revenue Growth
- +8.99%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/05/2026
- Time
- After Close
- Conference Call
- Thursday, November 5, 2026
Alarm's next earnings date is estimated for February 25, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
The call was broadly positive. Third-quarter results exceeded expectations, recurring revenue and adjusted earnings grew strongly, guidance was raised, cash generation remained robust, and the company added new video products and the CellGate acquisition. The main challenges were the temporary nature of tariff-related benefits, higher memory and component costs, expected near-term hardware margin pressure, a preliminary 2027 margin below the 21% exit target, and international growth below management's goals.
For the fourth quarter of 2026, Alarm.com expects SaaS and license revenue of between $194.6 million and $194.8 million, representing approximately 8% growth at the midpoint, and hardware gross margins of approximately 20.5%, with hardware effects representing approximately $6.6 million of sequential EBITDA headwind; for full year 2026, it expects SaaS and license revenue of between $756.1 million and $756.3 million, approximately 9.7% growth, total revenue of between $1.1011 billion and $1.1113 billion, including hardware and other revenue of between $345 million and $355 million, adjusted EBITDA of between $227 million and $229 million, implying an adjusted EBITDA margin of approximately 20.6%, non-GAAP adjusted net income of between $161.2 million and $162.6 million, or $3.02 to $3.04 per diluted share, based on approximately 56.3 million weighted average diluted shares outstanding, a non-GAAP tax rate of approximately 21%, and stock-based compensation expense of between $32 million and $33 million; for 2027, CellGate is expected to contribute between $15 million and $20 million of SaaS and license revenue, while preliminary guidance calls for SaaS and license revenue of between $815 million and $820 million, approximately $360 million to $370 million of hardware and other revenue, total revenue of approximately $1.175 billion to $1.19 billion, adjusted EBITDA of between $240 million and $245 million, and an adjusted EBITDA margin of approximately 20.5% for the full year at the midpoint, with a target of exiting 2027 with adjusted EBITDA margins in the 21% range; growth initiatives are expected to be about 1/3 of revenue and growing in the 25% to 30% range for 2026, reverting back to the 20% to 25% sort of aggregate growth range in 2027.
- Third-Quarter Results Exceeded ExpectationsSaaS and license revenue was $191.2 million and adjusted EBITDA was $66.2 million, with both results exceeding expectations. SaaS and license revenue grew 9% year-over-year and exceeded the midpoint of guidance by approximately $1.3 million.
- Broad-Based Revenue and Gross Profit GrowthHardware and other revenue totaled $88.3 million, up 8.9% year-over-year. Total revenue grew 9% to $279.4 million, while gross profit increased 10.6% to $186.8 million.
- Strong Recurring Revenue RetentionRevenue retention remained in the 95% range. Management said the core North American residential business performed in line with expectations, supported by continued strength in revenue retention.
- Growth Initiatives Continued to Perform WellGrowth initiatives contributed at a size and pace in line with expectations and performed slightly better than expected in the third quarter. Cumulatively through Q3 and for the full year, they are expected to represent about 1/3 of revenue and grow in the 25% to 30% range.
- Positive Residential Account EconomicsNew-account blended residential ARPU has been increasing by approximately 5% per year. Video ARPU has grown by about 30% over the past couple of years, resulting in an approximately 10% cumulative increase in new-account ARPU over that two-year period, to roughly the $5.50 range.
- Raised 2026 SaaS and Total Revenue GuidanceFull-year 2026 SaaS and license revenue guidance was raised to between $756.1 million and $756.3 million, an increase of $2 million at the midpoint from previous guidance and representing approximately 9.7% growth. Total revenue guidance was raised to between $1.1011 billion and $1.1113 billion, including hardware and other revenue of between $345 million and $355 million.
- Raised 2026 Adjusted EBITDA and EPS OutlookFull-year 2026 adjusted EBITDA guidance was raised to between $227 million and $229 million, an increase of $6 million at the midpoint from previous guidance, implying an adjusted EBITDA margin of approximately 20.6%. Non-GAAP adjusted net income is projected at $161.2 million to $162.6 million, or $3.02 to $3.04 per diluted share, with EPS guidance increasing by approximately $0.10 from August guidance.
- Adjusted Earnings and Cash Generation ImprovedNon-GAAP adjusted net income grew 22.3% year-over-year to $48.3 million, non-GAAP EPS increased 26.8% to $0.90 per diluted share, and adjusted EBITDA grew 19.3% year-over-year to $66.2 million. Third-quarter free cash flow was $69.5 million, representing approximately 105% conversion of adjusted EBITDA to free cash flow. Through the first nine months, free cash flow totaled approximately $156.3 million with cumulative conversion of 90%.
- Strong Balance Sheet and Share RepurchasesAlarm.com ended the quarter with $534.7 million of cash. It repurchased approximately 241,000 shares for $13.5 million during the quarter, bringing year-to-date repurchases to approximately 1.2 million shares for $58.5 million. The company continues to operate under the $150 million buyback authorization approved earlier in the year.
- Expanded Video Product PortfolioThe company released several new video cameras, providing service providers with more installation options and a broader range of price points. The new battery-powered video doorbell supports video coverage at locations including site entrances and detached garages without doorbell wiring, includes advanced video analytics, and offers a customer-installable design for video upgrades without a service visit.
- Enhanced Premium Indoor Camera and AI DeterrenceAlarm.com launched an upgraded premium indoor camera with 4-megapixel image quality, integrated illumination for deterrents, and a physical privacy shedder. It also enhanced its AI deterrent solution with progressive voice responses that begin with a neutral message and progress to stronger warnings when a person continues to linger.
- CellGate Acquisition Adds a Commercial Growth VectorAlarm.com acquired CellGate, a provider of gate access and video intercom solutions for commercial properties, small businesses, multifamily communities, ranches and estate properties. CellGate brings cellular-connected access control products, an established trade-channel relationship, and access to the fence and gate contractor market, which includes as many as 6,000 regularly installing U.S. companies. CellGate will operate as a stand-alone business, with planned integrations into the Alarm.com platform.
- Expected CellGate Revenue ContributionManagement expects CellGate to contribute between $15 million and $20 million of SaaS and license revenue in 2027. The company described CellGate as another solid growth vector in commercial and SMB and said it sees longer-term opportunities to expand profitability as its recurring revenue base scales.
- Positive Preliminary 2027 OutlookThe preliminary 2027 outlook calls for SaaS and license revenue of between $815 million and $820 million, hardware and other revenue of approximately $360 million to $370 million, total revenue of approximately $1.175 billion to $1.19 billion, and non-GAAP adjusted EBITDA of between $240 million and $245 million. The implied full-year adjusted EBITDA margin is approximately 20.5% at the midpoint.
- Commercial Fire Offering Building MomentumMore than 600 service providers have installed at least one commercial paying unit for the commercial fire offering. Management said ARPU is about where expected, early partner engagement is solid, and the offering is building momentum.
- International Subscriber MilestoneThe international business surpassed 1 million subscribers. International continues to grow faster than the overall consolidated business, with management citing commercial traction, decent video attachment on commercial accounts, and a pipeline of opportunities with MSOs or carriers outside the United States.
- Industry Capital Inflows Viewed PositivelyManagement said substantial capital has flowed into the residential security industry, including the acquisitions of Simply Safe by GTCR and ADT by Thrive Holdings. The company views the investment activity as confirmation that the industry is deserving of capital and expects to continue supporting ADT as a large residential and SMB customer.
- Continued Organic ReinvestmentManagement said it continues to prioritize organic reinvestment based on the returns available across the business, reviewing initiatives annually to determine where to continue investing and where to reallocate capital.
- Supportive View of Apple Ecosystem ExpansionManagement welcomed Apple's entry into the home as a potential Alexa-like interface, said Alarm.com has historically supported Apple's interfaces and devices, and expressed enthusiasm about supporting a new Apple device that could provide another customer interface.
DE:3RL Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 25, 2027 | 2026 (Q4) | 0.64- | 0.64 | ― | ― |
| Nov 05, 2026 | 2026 (Q3) | 0.670.80 | 0.68 | 18.42% (+0.12) | |
| Aug 06, 2026 | 2026 (Q2) | 0.580.69 | 0.54 | 28.33% (+0.15) | |
| May 07, 2026 | 2026 (Q1) | 0.540.62 | 0.48 | 29.63% (+0.14) | |
| Feb 19, 2026 | 2025 (Q4) | 0.570.64 | 0.52 | 24.14% (+0.12) | |
| Nov 06, 2025 | 2025 (Q3) | 0.550.68 | 0.55 | 22.58% (+0.12) | |
| Aug 07, 2025 | 2025 (Q2) | 0.450.54 | 0.52 | 3.45% (+0.02) | |
| May 08, 2025 | 2025 (Q1) | 0.420.48 | 0.45 | 8.00% (+0.04) | |
| Feb 20, 2025 | 2024 (Q4) | 0.480.52 | 0.55 | -6.45% (-0.04) | |
| Nov 07, 2024 | 2024 (Q3) | 0.440.55 | 0.5 | 10.71% (+0.05) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
