Alarm.com Stock Decline and Outlook Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 25 2026
0mins
Should l Buy ALRM?
Source: Yahoo Finance
- Weak Performance: Alarm.com reported billings of $260.5 million over the last four quarters with a year-on-year growth of only 7.2%, indicating challenges in customer acquisition and retention due to increasing competition, which negatively impacts market performance.
- Slim Revenue Growth: Wall Street analysts forecast a mere 5% revenue growth for Alarm.com over the next 12 months, a deceleration from the 10.3% annualized growth rate of the past five years, suggesting potential demand headwinds for its products and services, which may undermine investor confidence.
- Improved Profitability: Alarm.com’s GAAP operating margin rose by 1.7 percentage points to 13.2% over the past two years, reflecting enhanced profitability; however, the overall stock performance remains subdued due to intensified market competition.
- Cautious Investment Advice: Despite Alarm.com trading at a forward price-to-sales ratio of 2.5 and a current share price of $43.44, analysts express a lack of confidence in its future performance, recommending investors to consider other more attractive stocks to optimize their portfolios.
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Analyst Views on ALRM
Wall Street analysts forecast ALRM stock price to rise
3 Analyst Rating
2 Buy
0 Hold
1 Sell
Moderate Buy
Current: 44.410
Low
55.00
Averages
70.00
High
85.00
Current: 44.410
Low
55.00
Averages
70.00
High
85.00
About ALRM
Alarm.com Holdings, Inc. provides a platform for intelligently connected property. Its cloud-based platform offers a suite of Internet of Things (IoT) solutions addressing global opportunities in the residential, multi-family, small business and enterprise commercial markets. The Company's segments include Alarm.com and Other. Its Alarm.com segment represents its cloud-based and Software platforms for intelligently connected property and related solutions. Its Other segment is focused on researching, developing and offering residential and commercial automation solutions and energy management products and services in adjacent markets. This segment also includes advanced grid services and virtual power plant (VPP) solutions for utilities. Its solution suite includes security, video and video analytics, energy management, access control, electric utility grid management, indoor gunshot detection, water management, health and wellness, personal safety and data-rich emergency response.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Alarm.com Stock Decline and Outlook Analysis
- Weak Performance: Alarm.com reported billings of $260.5 million over the last four quarters with a year-on-year growth of only 7.2%, indicating challenges in customer acquisition and retention due to increasing competition, which negatively impacts market performance.
- Slim Revenue Growth: Wall Street analysts forecast a mere 5% revenue growth for Alarm.com over the next 12 months, a deceleration from the 10.3% annualized growth rate of the past five years, suggesting potential demand headwinds for its products and services, which may undermine investor confidence.
- Improved Profitability: Alarm.com’s GAAP operating margin rose by 1.7 percentage points to 13.2% over the past two years, reflecting enhanced profitability; however, the overall stock performance remains subdued due to intensified market competition.
- Cautious Investment Advice: Despite Alarm.com trading at a forward price-to-sales ratio of 2.5 and a current share price of $43.44, analysts express a lack of confidence in its future performance, recommending investors to consider other more attractive stocks to optimize their portfolios.
See More
Alarm.com Enhances Universal Communicator for Legacy Security Upgrades
- Feature Enhancements: Alarm.com's new features for the Universal Communicator include Smart Connector functionality and Verizon LTE support, allowing users to upgrade to modern security systems flexibly without replacing existing panels, thereby improving installation efficiency and user experience.
- Cost Efficiency: These software-driven enhancements enable users to modernize their systems at a lower cost, while service providers can quickly deliver modern security experiences to customers without incurring additional hardware costs, significantly reducing installation time.
- Multi-Location Management: Business customers can manage alarms, video, and access control across multiple sites through Alarm.com's Business platform, streamlining operations and enhancing control over multi-location systems, thereby improving operational efficiency.
- Market Coverage: Alarm.com's systems are professionally installed and monitored across the U.S., Canada, and select international markets, further solidifying its leadership position in the smart security solutions market to meet the growing demand for security.
See More
Middle East Ceasefire Breach Triggers Market Volatility
- Market Volatility Intensifies: Reports of a ceasefire breach in the Middle East have triggered panic selling, causing multiple stocks to decline in morning trading, particularly as traditional SaaS models face threats from AI systems, leading to widespread negative sentiment.
- Short Seller Warning: Short seller Michael Burry hinted on social media that Anthropic is “eating Palantir’s lunch,” which heightened investor concerns about the vulnerability of legacy platforms, resulting in a broad sell-off of related stocks.
- Alarm.com Stock Decline: Alarm.com has seen a 15.7% drop since the beginning of the year, currently trading at $43.21 per share, which is 28.8% below its 52-week high of $60.68, indicating a lack of confidence in its future growth prospects.
- Investor Reaction: The market experienced a “basket-style reaction,” where investors reduced exposure across the entire sector, leading to a nearly 3% decline in the S&P 500 Information Technology Sector, reflecting widespread concerns about the potential impact of AI.
See More
Alarm.com Unveils AI-Driven Video Security Updates
- AI Video Event Search: Alarm.com's newly launched AI Video Event Search feature allows users to quickly locate important video activity using natural language queries, significantly enhancing efficiency in incident investigation and daily operations management, thereby enabling users to obtain necessary information faster.
- Expanded Video Coverage: The introduction of the ADC-V731B Battery Spotlight Camera enables video monitoring in locations without wired power, supporting solar panel options to provide professional-grade video security, thus meeting customer needs for surveillance in various environments.
- Smart Front-Door Security: The ADC-VDB775 Video Doorbell combines high-resolution video with advanced detection features, helping customers identify known visitors and reduce unnecessary notifications while providing real-time response capabilities, thereby enhancing front-door security.
- Unified Platform Benefits: Alarm.com's unified video platform integrates intelligent software, flexible hardware, and professional monitoring, designed to meet real-world security needs, improving the efficiency of video system usage and boosting customer confidence.
See More
Alarm.com Unveils AI-Driven Platform Innovations
- Revenue Milestone: Alarm.com surpassed $1 billion in annual revenue over the past year, marking significant growth in the smart connected property sector and further driving its global market expansion and product innovation.
- AI Feature Expansion: The introduction of features like AI Video Event Search and AI Access Assist aims to enhance user experience and operational efficiency, enabling service providers to better meet customer demands and strengthen market competitiveness.
- Next-Generation Video Monitoring: The launch of the Volt Series and Prism Series cameras supports faster installations and broader coverage, combined with advanced video services, further solidifying Alarm.com's leadership position in the commercial property market.
- Integrated Security Solutions: New products such as the Fire Communicator and Mobile Security Trailers are designed to provide comprehensive protection across multi-site environments, helping businesses manage security and monitoring needs more efficiently, thereby driving long-term growth.
See More
PointCentral Launches Multi-Credential Z-Wave Lock for Multifamily Properties
- Innovative Smart Lock: PointCentral has launched the industry's first online multi-credential Z-Wave® lock, integrating RFID and Z-Wave remote management to simplify access for residents and property managers, enhancing security and convenience in multifamily communities.
- Integrated Management Platform: The new lock seamlessly integrates with PointCentral's smart property automation platform, allowing property teams to remotely manage credentials and monitor access through a centralized dashboard, significantly improving operational efficiency and reducing management costs.
- Flexible Access Control: This lock supports RFID badges, PIN codes, and Z-Wave long-range connectivity, enabling property managers to issue access permissions flexibly according to needs, catering to self-guided tours and diverse visitor management requirements.
- Market Promotion Plan: The new lock will be showcased at the ISC West event in 2026, with plans for a limited early release for select multifamily partners, encouraging property owners and operators to join the priority list for early access.
See More
Alarm.com Stock Decline and Outlook Analysis
- Weak Performance: Alarm.com reported billings of $260.5 million over the last four quarters with a year-on-year growth of only 7.2%, indicating challenges in customer acquisition and retention due to increasing competition, which negatively impacts market performance.
- Slim Revenue Growth: Wall Street analysts forecast a mere 5% revenue growth for Alarm.com over the next 12 months, a deceleration from the 10.3% annualized growth rate of the past five years, suggesting potential demand headwinds for its products and services, which may undermine investor confidence.
- Improved Profitability: Alarm.com’s GAAP operating margin rose by 1.7 percentage points to 13.2% over the past two years, reflecting enhanced profitability; however, the overall stock performance remains subdued due to intensified market competition.
- Cautious Investment Advice: Despite Alarm.com trading at a forward price-to-sales ratio of 2.5 and a current share price of $43.44, analysts express a lack of confidence in its future performance, recommending investors to consider other more attractive stocks to optimize their portfolios.
See More
Alarm.com Enhances Universal Communicator for Legacy Security Upgrades
- Feature Enhancements: Alarm.com's new features for the Universal Communicator include Smart Connector functionality and Verizon LTE support, allowing users to upgrade to modern security systems flexibly without replacing existing panels, thereby improving installation efficiency and user experience.
- Cost Efficiency: These software-driven enhancements enable users to modernize their systems at a lower cost, while service providers can quickly deliver modern security experiences to customers without incurring additional hardware costs, significantly reducing installation time.
- Multi-Location Management: Business customers can manage alarms, video, and access control across multiple sites through Alarm.com's Business platform, streamlining operations and enhancing control over multi-location systems, thereby improving operational efficiency.
- Market Coverage: Alarm.com's systems are professionally installed and monitored across the U.S., Canada, and select international markets, further solidifying its leadership position in the smart security solutions market to meet the growing demand for security.
See More
Middle East Ceasefire Breach Triggers Market Volatility
- Market Volatility Intensifies: Reports of a ceasefire breach in the Middle East have triggered panic selling, causing multiple stocks to decline in morning trading, particularly as traditional SaaS models face threats from AI systems, leading to widespread negative sentiment.
- Short Seller Warning: Short seller Michael Burry hinted on social media that Anthropic is “eating Palantir’s lunch,” which heightened investor concerns about the vulnerability of legacy platforms, resulting in a broad sell-off of related stocks.
- Alarm.com Stock Decline: Alarm.com has seen a 15.7% drop since the beginning of the year, currently trading at $43.21 per share, which is 28.8% below its 52-week high of $60.68, indicating a lack of confidence in its future growth prospects.
- Investor Reaction: The market experienced a “basket-style reaction,” where investors reduced exposure across the entire sector, leading to a nearly 3% decline in the S&P 500 Information Technology Sector, reflecting widespread concerns about the potential impact of AI.
See More
Alarm.com Unveils AI-Driven Video Security Updates
- AI Video Event Search: Alarm.com's newly launched AI Video Event Search feature allows users to quickly locate important video activity using natural language queries, significantly enhancing efficiency in incident investigation and daily operations management, thereby enabling users to obtain necessary information faster.
- Expanded Video Coverage: The introduction of the ADC-V731B Battery Spotlight Camera enables video monitoring in locations without wired power, supporting solar panel options to provide professional-grade video security, thus meeting customer needs for surveillance in various environments.
- Smart Front-Door Security: The ADC-VDB775 Video Doorbell combines high-resolution video with advanced detection features, helping customers identify known visitors and reduce unnecessary notifications while providing real-time response capabilities, thereby enhancing front-door security.
- Unified Platform Benefits: Alarm.com's unified video platform integrates intelligent software, flexible hardware, and professional monitoring, designed to meet real-world security needs, improving the efficiency of video system usage and boosting customer confidence.
See More
Alarm.com Unveils AI-Driven Platform Innovations
- Revenue Milestone: Alarm.com surpassed $1 billion in annual revenue over the past year, marking significant growth in the smart connected property sector and further driving its global market expansion and product innovation.
- AI Feature Expansion: The introduction of features like AI Video Event Search and AI Access Assist aims to enhance user experience and operational efficiency, enabling service providers to better meet customer demands and strengthen market competitiveness.
- Next-Generation Video Monitoring: The launch of the Volt Series and Prism Series cameras supports faster installations and broader coverage, combined with advanced video services, further solidifying Alarm.com's leadership position in the commercial property market.
- Integrated Security Solutions: New products such as the Fire Communicator and Mobile Security Trailers are designed to provide comprehensive protection across multi-site environments, helping businesses manage security and monitoring needs more efficiently, thereby driving long-term growth.
See More
PointCentral Launches Multi-Credential Z-Wave Lock for Multifamily Properties
- Innovative Smart Lock: PointCentral has launched the industry's first online multi-credential Z-Wave® lock, integrating RFID and Z-Wave remote management to simplify access for residents and property managers, enhancing security and convenience in multifamily communities.
- Integrated Management Platform: The new lock seamlessly integrates with PointCentral's smart property automation platform, allowing property teams to remotely manage credentials and monitor access through a centralized dashboard, significantly improving operational efficiency and reducing management costs.
- Flexible Access Control: This lock supports RFID badges, PIN codes, and Z-Wave long-range connectivity, enabling property managers to issue access permissions flexibly according to needs, catering to self-guided tours and diverse visitor management requirements.
- Market Promotion Plan: The new lock will be showcased at the ISC West event in 2026, with plans for a limited early release for select multifamily partners, encouraging property owners and operators to join the priority list for early access.
See More
