How Investors May Respond To Alarm.com Holdings (ALRM) Upbeat Q3 Results and Raised 2025 Revenue Outlook

Alarm.com Holdings recently reported third quarter 2025 results, surpassing revenue and earnings expectations and raising full-year guidance with projected total revenue of US$1.00 billion. The company’s highlighted expansion through the acquisition of CHeKT and deepened partnerships in its Energy Hub segment underlines its focus on broadening market presence and recurring SaaS revenue streams. With upgraded guidance and enhanced product offerings, we'll explore how Alarm.com's business expansion efforts influence the investment narrative going forward.

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Alarm.com Holdings Investment Narrative Recap

To be a shareholder in Alarm.com Holdings, you need to believe in the company’s ability to consistently grow its cloud-based SaaS revenues while expanding across residential, commercial, and energy management markets. The latest quarterly results and raised guidance provide support for the key short-term catalyst of recurring revenue growth, with little immediate change to the biggest risk, margin pressure tied to hardware-related costs and supply chain volatility.

Among recent announcements, Alarm.com’s acquisition of CHeKT stands out, directly strengthening its commercial and residential capabilities through enhanced remote video services, aligning squarely with the recurring SaaS growth catalyst highlighted in its upgraded guidance. This move complements the company’s progress in expanded product offerings and deeper partner integrations noted in the latest earnings.

However, on the other side of the coin, investors should consider the risk that increased hardware tariffs and potential supply chain issues...

Read the full narrative on Alarm.com Holdings (it's free!)

Alarm.com Holdings is projected to reach $1.1 billion in revenue and $161.6 million in earnings by 2028. This outlook assumes a 4.1% annual revenue growth rate and a $32 million increase in earnings from current earnings of $129.5 million.

Uncover how Alarm.com Holdings' forecasts yield a $68.71 fair value, a 38% upside to its current price.

Exploring Other PerspectivesALRM Earnings & Revenue Growth as at Nov 2025

Three fair value estimates from the Simply Wall St Community range from US$60.63 to US$78.16 per share. With participants holding varied outlooks, consider how margin volatility from rising hardware costs could influence future results.

Explore 3 other fair value estimates on Alarm.com Holdings - why the stock might be worth just $60.63!

Build Your Own Alarm.com Holdings Narrative

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Story Continues

A great starting point for your Alarm.com Holdings research is our analysis highlighting 4 key rewards that could impact your investment decision. Our free Alarm.com Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Alarm.com Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data 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 financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ALRM.

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