Good day, and thank you for standing by. Welcome to the Alarm.com Q4 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question-and-answer session. To ask a question during the session, you'll need to press star one one on your telephone. You'll then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised today's conference is being recorded. I would now like to hand the conference over to your speaker today, Matthew Zartman, Vice President, Investor Relations. Please go ahead. Thank you. Good afternoon, everyone, and welcome to Alarm.com's Q4 and full year 2025 earnings conference call. Please note, this call is being recorded. Joining us today are Steve Trundle, our CEO, and Kevin Bradley, our CFO. During today's call, we will be making forward-looking statements, which are predictions, projections, estimates, and other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. We refer you to the risk factors discussed in our annual report on Form 10-K and our Form 8-K, both of which will be filed shortly with the SEC, along with the associated press release. The call is subject to these risk factors, and we encourage you to review them. Alarm.com assumes no obligation to update forward-looking statements or other information that speak as of their respective dates. In addition, several non-GAAP financial measures will be discussed on the call. A reconciliation of GAAP to non-GAAP measures can be found in today's press release on our investor relations website. I'll now turn the call over to Steve Trundle. Steve? Thank you, Matt. Good afternoon, and welcome to everyone. We are pleased to report Q4 and full year results that exceeded our expectations. Our SaaS and license revenue in the Q4 was $180 million, up 8.8% over the last year. Our adjusted EBITDA in the quarter was $55 million. I wanna thank our service provider partners and our employees for their contributions to our performance in 2025. During the year, we reached a significant growth milestone, generating more than $1 billion in annual total revenue. Achieving this scale reflects the strength of our technology and the business model that we have engineered. Our business is grounded in the long-term partnerships we have with our service providers. Those partnerships are based on our commitment to both innovation and strategic alignment, where our growth is predicated on our partner success with our technology. Our service providers integrate our technology platform across their business to deliver the best possible residential and commercial security solutions to their end customers. During the year, we continued to execute on our long-term growth strategy. We are leveraging our R&D program and delivery channels to expand into additional markets. As a result of these efforts, we have created a more diversified and durable business. Today, we provide mission-critical, IoT-based solutions anchored by physical products that protect homes, businesses, enterprises, multifamily properties, and critical grid infrastructure worldwide. I want to spend a moment reminding our investors of how our business model and value creation engine are unique compared to most other SaaS companies. The equity markets have recently become fearful that all SaaS businesses will be pressured by AI, impacting seat-based pricing models and performing tasks that could relegate incumbents. Alarm.com's SaaS software is priced around a different set of value drivers. Our service providers already use our back-end software essentially for free if they install our customer sites with IoT devices in our ecosystem that enable our software. We have no material seat-based pricing models. Instead, our SaaS revenue is driven by each connected device that is installed by our service provider partners. Once these connected devices are installed at a customer site, they typically remain in service for nearly a decade. Our service providers benefit from efficiencies that are gained by having a single management platform for servicing all of their connected devices. The value drivers in our business are the number of connected devices that we enroll on our platform, and at some level, particularly in the case of video, the data that these IoT devices generate. We produce insights from these rich, proprietary data streams to benefit the subscriber and the service provider. Additionally, in many cases, we create value by offering and managing cellular and tightly supervised internet connectivity to the devices and locations we serve. We will continue to leverage AI for both internal productivity gains and to augment our capabilities with products like the AI-based deterrence and monitoring capabilities we already have in market. However, we do not see AI driving a change to our fundamental business model structure. Next, I want to walk through the major components of our business and discuss the strategic drivers that support their continued growth. I'll start with our core residential business, which serves the smart home security market in the US and Canada. We have a strong market share for professionally installed smart home security solutions in these markets. Our leading position is built on the scale of our platform, the breadth and quality of our solutions, and our trusted service provider relationships. We have consistently invested more in this market than our competitors. Revenue growth in our core residential business continues to be driven primarily by ARPU expansion. Our service providers are particularly effective with our residential video solutions, including video analytics and increasingly remote video monitoring that is augmented by the central station. Our residential customer tends to be the person who wants real and serious security, with everything done right by a professional, delivered and regularly serviced in a manner that protects the subscriber's privacy. We recently introduced a new premium video doorbell, which allows customers to enable 24/7 continuous onboard recording via SD card. It's also designed to enable our full suite of advanced analytics and drive adoption of our higher-tier video subscriptions. We launched our first battery-powered camera, the 731. It's flexible, completely wireless installation enables video coverage in locations that are difficult to wire. The 731 can be installed with automatic solar-based battery charging. It also supports premium video capabilities, including AI deterrence, Perimeter Guard, and remote video monitoring. On the software side, we recently released new AI capabilities that improve automation and personalization for subscribers. These enhancements make it easier to identify and respond to important events. Over time, we believe it will help support increased retention and adoption of premium video subscriptions. We have also continued to diversify the business. I'll start by focusing on our expansion into adjacent markets through our commercial security and energy businesses. These two businesses alone contributed 25% of our SaaS revenue for the full year of 2025 and grew about 25% year-over-year. Our commercial business serves small and medium-sized businesses and enterprise customers with integrated intrusion, video, and access control solutions. Growth remained solid in 2025, despite some economic uncertainty that slowed some larger-scale deployments. We believe that the underlying demand environment in the commercial market remains solid. With the range of functional advantages our platform offers the market, we believe that we can drive increased adoption of the Alarm.com and OpenEye commercial platforms amongst both our existing and new service providers. We have continued to enhance the platform to fully integrate video, access control, and intrusion protection to enable our service providers to standardize on Alarm.com for the full range of commercial subscribers that they serve. A recent platform enhancement is the introduction of a new lineup of commercially targeted Alarm.com video cameras called the Prism Series. The new product line is designed to give our service providers a more robust offering for SMB and mid-market installations. The series offers high-resolution imaging, clear color video at night, and two-way audio. It also supports our premium video analytics services, including AI-driven proactive deterrence and integrated central station remote video monitoring. It has also been encouraging to see that many of our commercial end subscribers continue to add to their systems with more components of our platform, well after the initial installation. Today, more than 2 million active video cameras and devices are deployed across our commercial property base. This base has grown consistently, driven by increasing attach rates as more of our service providers incorporate our video solutions into their standard offerings. Shifting to our energy business, EnergyHub remains a strong contributor to our growth. The EnergyHub platform provides mission-critical, distributed IoT management solutions that help utilities address long-term structural pressures on grid reliability and infrastructure. Forecasts point to the strongest sustained growth in US electricity demand in more than two decades. Electrification and the growing footprint of data centers are among the primary drivers of demand-side pressure. At the same time, electricity generation is also becoming increasingly diversified and thus more variable. EnergyHub orchestrates large networks of connected devices, including thermostats, electric vehicles, batteries, and water heaters, to provide on-demand virtual power plants, also called VPPs. Utilities call on VPPs to reduce peak demand and to increasingly manage load more dynamically across the grid. EnergyHub can stand up a VPP far faster and more cost-effectively than building new generation infrastructure. EnergyHub is the clear market leader in this space. In 2025, the number of connected devices under management increased by more than 50%. During the year, utilities increased the number of times they called on EnergyHub VPPs by 25%, reflecting the growing importance of its programs to grid stability. To accelerate EnergyHub's scale, we acquired Resideo Grid Services, or RGS, late in 2025. Similar to EnergyHub, RGS provides demand response, aggregation, and program management solutions for utilities, but it has been primarily focused on supporting smart thermostats. With the acquisition, EnergyHub can introduce its multi-device platform to RGS clients, enabling them to manage a broad ecosystem of distributed energy resources and deploy VPPs with greater capacity and capability. Looking ahead, EnergyHub will remain focused on growing its base of utility clients, expanding the diversity of devices enrolled in programs, and increasingly applying AI to provide load-shaping solutions that address a growing range of grid challenges. Lastly, we continue to develop international markets as a natural extension of our platform strategy. We are deploying our core residential, video, and increasingly commercial technology into these new markets to leverage our core R&D investments and drive scale. As we've expanded our core video offering, our solutions, including remote video monitoring, are being increasingly introduced and adopted by our international partners. In 2025, we saw a continued uptick in the video attachment rates to 33%. In summary, I'm pleased with our 2025 results and the continued growth we see across the business as we roll into 2026. I want to thank our service provider partners and our team for their hard work, and our investors for their continued trust in our business. I'll now turn things over to Kevin Bradley, our CFO, to review our financials. Kevin? Thanks, Steve. I'll begin by reviewing highlights from our Q4 and full year 2025 financial results, then cover key elements of our capital allocation framework, and conclude with our guidance for the Q1 and full year 2026. I'm pleased to report another quarter of execution against our financial plan. Our quarterly and annual performance reflects continued broad-based contributions across the business's diverse components. As Steve just mentioned, one of the areas that outperformed was EnergyHub. EnergyHub's results were driven by higher-than-expected program participation, as well as a modest contribution in the latter part of the quarter from the RGS acquisition. Growing the number of programs and increasing the number of enrolled devices in each program are among the multiple long-duration levers supporting EnergyHub's growth. There are network effects in the business that accrue with scale. The more programs and DERs that EnergyHub manages on behalf of utility clients, the more valuable they become to ecosystem device partners. The more ecosystem device partners EnergyHub works with, the more capacity the Virtual Power Plant can provide utility clients. The acquisition of RGS expands our number of managed programs and enrolled devices and deepens our relationships with ecosystem device partners, accelerating these effects. For full year 2025, SaaS and licensed revenue for the overall consolidated business grew 9.2% year-over-year to $689.4 million. Total revenue grew 8% year-over-year in the Q4, and, as Steve discussed, exceeded $1 billion for the full year. Total gross profit in the quarter was $172.6 million, an increase of 8.8% year-over-year, including 13.4% year-over-year growth in hardware gross profit to $19.1 million. Higher-than-expected hardware revenue and gross profit were driven by OpenEye's sales of enterprise-grade video cameras and devices, as well as a favorable product mix of Alarm.com residential cameras. As Steve described, the physical installation of hardware plays a critical role in value creation across the business, regardless of whether it's one of our products or those of an ecosystem partner. But when it is one of our products, as is the case with substantially all video cameras that connect to our cloud, that sale contributes to our highly efficient subscriber acquisition model. In the Q4, gross profit from hardware sales offset approximately 55% of GAAP sales and marketing expense, and more than 60% for the full year. That leverage allows us to direct more capital toward organic R&D and innovation, enabling our service providers to deploy a wider array of solutions across our mutual customer base. During the Q4, total operating expenses, including depreciation and amortization, were $137.7 million. Excluding depreciation and amortization, as well as stock-based compensation and other items we adjusted from GAAP for non-GAAP purposes, total operating expenses were $121.7 million, a 9.5% increase year-over-year. R&D expense in the quarter, inclusive of stock-based compensation, was $66.2 million, up 6.8% year-over-year. For the full year, R&D expense increased 5.6%. GAAP net income in the Q4 was $34.7 million, or $0.66 per diluted share. Non-GAAP adjusted net income grew 19.2% year-over-year to $38.9 million, and non-GAAP EPS increased 24.1% to $0.72 per diluted share. Adjusted EBITDA for the quarter grew 18.3% year-over-year to $54.9 million. For the full year, adjusted EBITDA increased to $206 million, representing 16.9% year-over-year growth. I do want to point out that our adjusted EBITDA number was a tad inflated by a $4.7 million mark-to-market gain on a security in our treasury portfolio. While substantially all of our balance sheet cash is held in money market funds, our policy allows for a small allocation to other marketable securities. The business generated $35.1 million of non-GAAP free cash flow in the quarter, and $137 million for the full year. As we previously indicated, free cash flow declined year-over-year as the exceptionally favorable working capital dynamics we saw in 2024 normalized. Turning to the balance sheet, we recently retired the $500 million of convertible notes that matured in January 2026. These bonds carried 3.4 million shares of potential dilution that we began removing from our diluted share counts midway through Q3 2025. They will not be in our diluted share counts for the entirety of 2026. Our operations fully fund their own capital requirements, which allows for a higher degree of opportunism and flexibility as it relates to capital allocation, further supported by the three-year timeline remaining on our $500 million of outstanding convertible notes due May 2029. In 2025, the business generated returns on invested capital from its ongoing operations well in excess of that capital's cost, reflecting the durability of our competitive positioning and the discipline with which we allocate capital. We have historically, and will continue to, primarily allocate capital to organic R&D, with an emphasis on long-term value creation. Our commitment to domestic product development has contributed to some meaningful tax efficiencies in the form of ongoing R&D tax credits. Our cash tax liability for 2025 was $12.1 million, which reflects the benefit of those R&D tax credits, as well as changes to Section 174 of the tax code that restored the full deduction of domestic R&D expenses in the year incurred, which will provide us with a multi-year tailwind to net returns on invested capital. We also leverage our strong balance sheet to supplement organic investment, whether in the form of M&A, such as the $113 million we spent in 2025, acquiring businesses that support our commercial and energy initiatives, returning cash to shareholders via opportunistic buybacks, or investing strategically into the ecosystem in the form of non-operating assets. Looking ahead, we will continue to deploy capital to reinforce our competitive position and leverage our scale. We will prioritize high-return organic investments and selective acquisitions that support growth opportunities while maintaining the financial flexibility to act opportunistically elsewhere. I'll switch gears now to providing our 2026 financial outlook. For the Q1 of 2026, we expect SaaS and license revenue of between $175.8 million and $176 million. As a reminder, the sequential decline in SaaS revenue from Q4 reflects EnergyHub's normal seasonal dynamics. EnergyHub revenue is typically annual in nature and weighted toward the H2 of the year. The Q4 represents the largest contribution. This pattern is reflected in our guidance. For the full year 2026, we expect SaaS and license revenue between $743 million and $745 million. This is a bit higher than previously expected and reflects contributions from RGS, as well as continued healthy expectations for organic growth. We now expect total revenue between $1.058 billion and $1.065 billion, implying hardware and other revenue of $315 to 320 million, which includes the assumption that we pass through the current tariff costs dollar for dollar and that tariffs don't become incrementally larger from here. We are also implementing non-GAAP adjusted EBITDA guidance above our first look of between $213 million and $215 million, implying margins of 20.2% at the midpoint. This outlook reflects the inclusion of RGS, which we don't anticipate will contribute to adjusted EBITDA this year. Over time, we expect to realize more synergies from the acquisition, and we continue to expect to exit 2027 with a 21% adjusted EBITDA run rate margin, as I discussed in more detail on our last call. Non-GAAP adjusted net income for 2026 is expected to be between $150.5 million and $151 million, or $2.78 to 2.79 per diluted share. This is based on approximately 57.2 million weighted average diluted shares outstanding, down from 60 million weighted shares outstanding during Q4 2024. We expect our non-GAAP tax rate to remain approximately 21% under current tax rules, and we project full year 2026 stock-based compensation expense of approximately $40 to 43 million. In closing, we're pleased with the broad-based momentum in the business that we saw throughout the year. We believe we're well positioned to deliver continued revenue growth and profitability while investing to expand our long-term opportunities. With that, Operator, please open the call for Q&A. Thank you, ladies and gentlemen. If you have a question or a comment at this time, please press star one one on your telephone. If your question has been answered and you wish to remove yourself from the queue, please press star one one again. We'll pause for a moment while we process our Q&A roster. Our first question comes from Adam Tindle with Raymond James. Your line is open. Okay, thanks. Good afternoon, and congrats on 2025. Kevin, I wanted to maybe just start with the raise of SaaS guidance. It's a little bit more meaningful than in the past. I know you guys tend to, you know, kind of outperform over time and inch that up, but this is a little bit of a bigger bump than we've seen in the past. I understand there might be some RGS contribution, and if you could maybe just break that out a little bit. Also, the organic assumption sounded like you were still expecting healthy organic growth. What are you seeing in the business to underpin that? I think that's, you know, obviously not consistent with what the stock's been doing, what kind of the general view on software that Steve outlined. Y ou know, what's underpinning the organic assumption, improvement as well? Thanks. Sure. Hey, Adam. Yeah, as you noted, we, since our first look, the SaaS guide at the midpoint went up by about $21 million. There's two components of that. Obviously, that we included RGS i n late Q4 of last year, so most of the revenue from that is going to show up from a year-over-year perspective, obviously in 2026. T hen we outperformed, excluding that during Q4. I think the best way to think about it is we had some implied year-over-year SaaS growth rate embedded in our first look. I'd say things are maybe, you know, slightly better than that if you excluded RGS, maybe about 10 basis points or so, 10 to 20 basis points or so better than that growth rate that we projected, a nd the rest of the absolute dollar stack on there is really from RGS. Got it. Okay. Maybe just to follow up on RGS and EnergyHub in general, since I think it's becoming even more topical for Steve. You described some of the network effects that essentially that are kind of going on in that business. Wonder if you might just take a step back for investors that might be a little newer to this and talk about the competitive environment and EnergyHub's position with RGS. H ave you taken a look at, like, sizing that total market? How big could that be over time? Sort of your vision for that business, especially now with the RGS acquisition. Thanks. Hey, Adam, good question. Yes, in terms of the network effects, I mean, essentially, we want to be the most appealing partner to various, you know, folks who may make a device that can play in the ecosystem. Hypothetically, you know, if you're a thermostat maker, and you decide to partner with a company that can enable VPPs, you want your thermostat to be used for that purpose in as many places as possible. With the acquisition that we announced, we get to a wider array of utilities, and that, of course, makes the value of each device higher. Longer term, the thing we're really, you know, in terms of size of market, there are around, I believe, 130 million meters in North America. Currently, we're transacting business with electric utilities that cover around 50 million of those meters, but we're still in the very early days of enrollment against those meters. We're getting about a 5% level of enrollment today on those 50 million meters that we're passing with the EnergyHub offering. Of course, we grow in a couple of different ways, three different ways, actually. First is to drive up that level of enrollment with our utility partners. Second is to continue to add utilities. We believe we're the share leader at the moment, but we'll continue to add utilities. T hen third would be to add more devices and to add categories that are, you know, energy consumption categories. T hat's what we're attempting to do. T hose are the growth drivers in the business. In terms of the competitive framework, there are some smaller competitors in this space, but it's pretty hard to sort of cover off all the different areas that a utility partner would want their VPP provider to cover off. I f I jumped into the business today and I'm an upstart, I might attack just, for example, EV charging stations, or I might try to attack just, for example, you know, swimming pool pumps or hot water heaters or whatever. T he problem is, it's almost too late to do that today, s o we think that the utility wants to basically have, you know, one partner that can stabilize supply across a wide array of devices, and we think we're pretty well positioned to do that. Very helpful. Thanks, Steve. Thanks. One moment for our next question. Our next question comes from Samad Samana with Jefferies. Your line is open. Hey, this is Jordan on for Samad. Congrats on the strong quarter. Steve, you touched on kind of the primary concern we're hearing from investors around AI and software, which is, you know, the risk that software poses. Obviously, your business model seems to be in a position of strength relative to many others. I wanted to just double-click on how you're pivoting R&D internally to capture the opportunity here with AI and, you know, the strong SaaS guide you guys gave. How does that embed either a material demand or monetization that might come from the newer AI features that you're layering into the product? Yeah, good question. Yeah, Jordan, I think, really two fronts there. F irst, internally, we think about what are the capabilities that we can render that make the solution more accessible or that create more intelligence from each stream of data. W e've done some things already. We've been in market with what we call AI-based deterrence now for, well over a year. We've been in the analytics business, leveraging AI for, you know, half a decade anyway. The capabilities are getting stronger every day. We're increasingly looking and working on, you know, efforts to make the consumer's interface, to all of our capabilities, much more streamlined, leveraging LLM. Y ou've seen, you know, a capability I think we've mentioned called attribute search, which allows someone to interact with a, you know, rich amount of video data in a very efficient, sort of text-based way. I think you'll, you'll see us, you know, continue to drive functionality out. T hen in terms of monetization, there's the other side of it, which is can we become more productive or can we do more things? W e're certainly, it's there. I'd say it's a little bit more early days. There's a lot of evidence of amazing things that one will be able to do, and then there's a sort of a question of how many of those things can one actually do today. W e continue to kind of, you know, productivity on some. That makes a lot of sense. That's great to hear. Maybe a quick follow-up for you, Kevin. You know, you mentioned the implied hardware guidance accounts for tariff cost passthroughs, obviously, a positive for margins for the business. I'm curious, how are you thinking about how those passthroughs impact demand broadly? Any feedback from your customers? T hen are you seeing any increase in manufacturing costs related to hardware, and how are you thinking about managing those, if those are coming up? Yeah. Hey, Jordan. Thanks. You know, we dealt with a similar type of cost inflation back during COVID on the hardware line. L ast April, when tariffs started being released, we went back and examined what happened during that period of time related to demand, and we couldn't really discern any meaningful change in demand. O ur thesis going into this, when we first passed through tariffs, it was last June, at the base 10% level, was that we were going into it optimistic, that there would be no demand impact, and I think that bore out through most of the year. We obviously outperformed our initial look last year, our guides. Now, that includes about $7 to 8 million of tariff pass-through revenue, but even excluding that, we would have exceeded it. So no material decrease or discernible decrease in demand yet. Those passthroughs went up on January first to reflect the full tariff, so they went up by about 2x. W e're going into this assuming that there will be no degradation in demand from that either. Related to other manufacturing costs, you know, we've been watching the DRAM market. Obviously, that impacts us to some degree. We haven't really seen any cost increases come through related to that yet. One thing that we're likely to do is probably extend the number of days of inventory that we have on hand by about 30 or 40 or so early this year to try and de-risk the supply chain a little bit from that, s o we'll have a little bit more of an investment in working capital to start the year. That will unfold over the next couple of months. Y eah, no cost increases yet related to the memory, potential memory shortages. Fortunately, our agreements tend to carry the right to pass through a third-party cost, so we feel a little bit insulated from that, and we'll just sort of deal with that as it comes. That makes sense. Well, thanks for taking my questions, and congrats. Thanks. Thank you. One moment for our next question. Our next question comes from Saket Kalia with Barclays. Your line is open. Sure. Hey, guys, thanks for taking my questions here, and great to see the results. T hanks. Steve, maybe for you. You know, that was a helpful walk-through earlier on kind of the combined EnergyHub business. I get the vision in terms of having more devices only makes each other device more valuable to a utility. That makes a lot of sense. Maybe more of a medium-term question: How do you kind of think about synergies there, whether that's from a revenue or expense perspective, just as we think about that combined EnergyHub business becoming maybe a bigger, more strategic part of Alarm's overall business? Does that make sense? Yeah, it makes sense, Saket. Yeah, in terms of synergies. T he way we think about it, in the early days, you know, as of right now, we're managing two different platforms that enable the capabilities, that, you know, RGS and EnergyHub have traditionally rendered, s o synergies, as of today, are not very substantial. We, of course, have some customer synergies already in place. O ur outlook is that over the next 12 to 24 months, you know, working with our customer partners there, we will begin to fuse the capabilities, any unique capabilities that exist at RGS will roll into the EnergyHub platform. O ver time, we would begin to see synergies that come from, you know, a fusion of those two platforms into sort of one greater whole. The benefit to the customer, of course, being that the greater whole will be supported by, you know, an overall larger R&D engine, a wider array of devices, and, you know, will become more valuable. I n terms of the way we've modeled this, it's sort of no synergy this year, very little, and then, you know, in terms of EBITDA. But as we sort of look into the 12- to 24-month period, we begin to see more material, synergies emerge there. That will help us, by the way, kind of get EnergyHub. I mean, you're seeing us begin to gain some confidence that EnergyHub by itself is a platform company, and to gain more confidence there, we need to gradually see the cash production capacity become more real, and I think that this will help us. The synergies here will help us get there. That makes a lot of sense. Kevin, maybe for my follow-up for you, just on a slightly different topic or a broader topic. I was wondering how you kind of think about the emerging areas growing in 2026. I think Steve Trundle said, you know, the commercial plus energy, I think that's about 25% of SaaS. It grew about 25% in 2025. You know, of course, international would be additive on top of that. If we think about those three businesses sort of in aggregate, how do you think they kind of grow in 2026 as we think about the different components next year? Sure. Thanks, Saket. I would expect that they grow between 25% and 30%. Now, that obviously includes a little bit of inorganic growth, but that's how we're thinking about it going forward, and by implication, that if they grew at that rate, they'll wind up becoming more like a third of total SaaS revenue, if not maybe slightly more. Got it. Very helpful. Thanks, guys. Yep. One moment for our next question. Our next question comes from Stephen Sheldon with William Blair. Your line is open. Hey, thanks for taking my questions. First, it seems like you're getting a lot of traction with commercial video solutions. I guess, so if you look at that, has there been anything surprising about how your video capabilities are getting utilized across end markets, property types, use cases, et cetera? S pecifically, are there any notable pockets of strength to call out, on the broader commercial video side? T hen I think you also talked about expansion motions there, as one of the factors supporting growth. I guess I would just love some more color on the growth you're seeing in commercial video. Sure. This is Steve speaking. You know, the areas that are always best for doing a video tend to be the areas with high crime and high assets, s o certainly strengths are places where those two phenomena exist in the same location. So, you know, some place like LA, for example, is a great market for our commercial video solution. The strengths are coming right now, I think, I wouldn't call them surprising because we saw it coming, but the acquisition we did and the commitment we made to central station augmented remote video monitoring is a source of strength in the commercial video market. It really enhances the capability to deter a crime before it occurs, as opposed to just doing forensic analysis of what has occurred after it has occurred. J ust a sort of a sea change in the way that we think about the role of a camera and what its value is to society and this shift to deterrent. T hat's been the biggest driver. I would say we saw that coming. We've got the right product lineup. There's been a lesser driver, which is just on the commercial side, beginning to get some uptick on the international markets. International always lags what we're doing in North America a bit, and in the last six months, I would say we've made more progress deploying some of the commercial assets, especially in Latin America, but gradually elsewhere. Got it. That's helpful. T hen as a follow-up, I guess, high level on spending plans, can you talk more about areas where you're stepping up reinvestment across the business in 2026? I know R&D is always a major focus. I guess any color on kind of, you know, where you're maybe stepping up the investments in R&D and any other parts of the business where you're maybe reinvesting more than you have historically? I would say in general, our view right now is that R&D, as a percentage of revenue, is about where we want it. W e're not planning to surge R&D spend. We're instead really focused on driving more productivity out of R&D. In the past we've, you know, talked about kind of where we want to end 2027, I guess, in terms of overall operating margins in the business, and we're still committed to that. In the near term, yes, absorbing a couple of different platforms or a new platform on the EnergyHub side will require some effort and some surge capacity. T hen I would say we're at a point in time now where, and I would imagine other companies are in a similar position, where you have a set of R&D commitments that you made, you know, 12 to 24 months ago that are in process, and then you're simultaneously doing a lot of work to get all of the goodness of what's going on with AI at the same time. I f there were a place where there's some surge, it would be attempting to basically spin both of those wheels at the same time. You know, and I'd say that's underway here now. Very helpful. Thank you. One moment for our next question. Our next question comes from Adam Hotchkiss with Goldman Sachs. Your line is open. Great. Thanks so much for taking the question. I wanted to follow up on EnergyHub, and Steve, something you brought up at the beginning of the call. Could you just maybe take a step back and mechanically help investors think about how your EnergyHub business would benefit from the AI-driven data center demand? T hen how should investors, just more broadly, as we track that business through the year, is there anything in the market that we should be tracking o ther than quarterly results to try and understand the trajectory of that business? Thanks so much. Hey, Adam. Yeah. T he data center, you know, phenomena is a demand driver for EnergyHub. The combination of sort of the requirement for more electricity, that's at the moment driven very much by growth in data centers, as well as this phenomena where the sources of supply on the grid themselves have become a bit more variable. So a smaller percentage of power is coming from, say, a constant rate nuclear facility. A higher percentage of power is coming from more variable sources like solar, wind, and others. T hose two things together, the data center plus the increasingly variable sources of supply create more of a need for the utilities to find new sources of power. I would say they're therefore more open to what we do with EnergyHub and the creation of virtual power plants to produce energy at certain points in time when the need is most acute. It's a great driver for us, I guess I would say. In terms of the second part of the question, tracking how things are doing, I guess I have to point to sort of our updates as the best way to track what we're doing with EnergyHub and how the business is, you know, what its trajectory is. I can't think of another way to sort of easily find a second source of information there. Okay, great. Really helpful. T hen, Kevin, for you, just on the margin question, j ust to sort of double-click on the margin question. I know we've historically talked about R&D, you know, a big portion of that investment being opportunistic and sort of looking ahead on growth ROI and opportunities. How should we think about the sort of flat margin trajectory next year, and how you thought about the trade-off between, you know, maybe getting some scale on the revenue growth that you're seeing and improving margins a little bit more quickly versus leading in on the investment side? I guess just trying to understand how we're progressing towards a medium-term margin number. Thank you. Sure. Thanks, Adam. I think one thing I would point out is that the, you know, our adjusted EBITDA margins in 2025, for example, you know, contain $4.5 million of unrealized gains on a security in our treasury portfolio. I think if you were not capturing that and you were focused on sort of more pure operating results, you'd wind up at something just south of a 20% adjusted EBITDA margin, 19.9. O n that basis, you know, there's a little bit of progression embedded in our initial guide here from 2025 to what we've signaled is what we anticipate exiting 2027 at. T he second component there I just would highlight is, we did complete an acquisition in the Q4. We're not picking up EBITDA margin there. We're picking up sort of 0% EBITDA margin, s o, yet we sort of still work to absorb that and show a bit of a trajectory here on the bottom line. Understood. Thank you very much. One moment before our next question. Our next question comes from Jack Vander Aarde with Maxim Group. Your line is open. Okay, great. Hey, congrats on the strong finish to the year and strong outlook as well. You know, couple questions. Maybe, Steve, two-part question on the competitive environment within Alarm's core North America residential business. Just first, in general, any notable trends or changes in the competitive environment that you'd like to speak to? T hen, two, how has Alarm's core business performed relative to that original, like, 200 basis point headwind that you guys were initially, I think, forecasting for ADT? Anything you could speak to there and how the business performed up against that? Thanks. Sure. Hey, Jack. Yeah, I don't think in the core business we've seen any dramatic change in kind of the competitive landscape. There are always competitors, but we did a lot of the work over the last, you know, 15 years to cement a set of relationships with our service providers. I think, you know, the service providers are running meaningful chunks of their business on platform, and I would never say that we're insulated from a competitive threat, but we're in a strong position, especially if we continue to make our offering better and deliver on what we say we're gonna deliver upon, s o feeling relatively good about the competitive environment at the moment. In terms of the, you know, how much or what I can say about the 200- basis-point headwind, it didn't manifest as fully as expected. We sort of point folks to, you know, ADT's own comments about their transition, and I think, you know, their comment was they had transitioned roughly, I believe, in the Q3, I think they said 25% of the business or so. T hat probably gives you a little bit of a directional input there on how that has gone. Hasn't been as dramatic in 2025, as what maybe was initially expected, but is still something that we have modeled in to 2026. Got it. Okay, that's very helpful. T hen maybe just another one for Kevin maybe on the core business as well. The outperformance in growth sounds like it's been heavily ARPU expansion driven. Certainly strong video attach rates. Can you maybe just touch on anything you're seeing in the install base for the North American business? Has that performed? Is it up, or is it kind of in line with your expectations? T hen does that play a role at all in your raised SaaS plans for 2026 for the install base lever? Yeah. Hey, Jack. Thanks. Yeah, as Steve mentioned, you know, a lot of the growth in that segment or the majority of the growth, you know, sort of comes through ARPU dynamics, and it's kind of a 70/30, 75/25 kind of thing, tilted between sort of pricing and ARPU. Most of that is related to just organic product-led feature adoption, you know, as opposed to just sort of pure pricing increases. There's always a very little bit of that, but for the most part, that's basically just product adoption, led by video for the most part. O ne data point that has consistently been true for the past number of years is that 20% to 25% of the cameras that we sell actually go into the installed base, s o there's a pretty constant movement sort of through the installed base. T hat's been there for about five years, where they start taking video or they increase the number of video cameras they have. They're buying video cameras that support more capabilities, which leads to basically, you know, a package upgrade. That's a pretty, pretty consistent hallmark of the model. Excellent. That's a great data point. I appreciate the time, guys. Solid results. Thanks. Sure. Thanks, Jack. One moment for our next question. Our next question comes from Ella Smith with JP Morgan. Your line is open. Hi, this is Bella on for Ella. Thanks for taking our question. First, I wanted to ask, can you frame EnergyHub's growth using a few incremental operating KPIs, such as total DER assets under management, gigawatts under control, opt-in or retention rates, or the mix shift? Yeah, I think the main way we portray their growth is probably, you know, on the percentage of the market that they are in a position to service. A moment ago, I mentioned that there are roughly 130 million meters in North America, and the EnergyHub is now in a position to service those residences on about 50 million of those meters. Obviously, t hat's a number that we watch closely, is how many homes passed can, you know, can we take advantage of with the EnergyHub offering? T he other one then is, of course, y ou know, you're passing that number of homes, what percentage of those are you actually enrolling in a program? There I mentioned that we are enrolling roughly today around 5% of the homes we pass. Obviously, we'd like to drive that number, you know, up some. I think it's not inconceivable that we'll see that number move up to 10%. A s we think about the growth drivers, it's, you know, what percentage of homes in North America are we in a position to service with the relationships we have with utilities? T hen of those that we're in position for, what percentage are we actually enrolling in a program? Those are the two primary things. The third is really how many different categories of devices that consume power are we simultaneously servicing? You've got the thermostat, you have the EV charger, you have the battery, in some cases, you have pool pumps, some cases you have water heaters. The wider the number of devices, the better. Got it. That's very helpful. J ust as a follow-up, thermostat penetration among large utilities is often cited at about 30% to 40%, moving higher over time. Wh ere do you see the next leg of adoption to move that penetration rate higher? H ow are sales cycles and integration backlogs trending? Yeah, I would say that penetration today is probably, you know, sort of becomes a question of what are we actually measuring penetration on? W hat's the denominator? But if we went back to that number of meters metric at 130 million, and then we said we're today at 50 million, we're getting to a number that's right in sort of the range that you said, s o I would probably use that 30% to 40%. I think that the drivers are, you know, multifold. First, just the increased need that many utilities have for additional supply, that's driven by electrification of vehicles, and it's driven by data centers. T hat should be a driver we continue to see. In terms of the sales cycle, it is a very long sales cycle. I mean, oftentimes it starts with a pilot. You sometimes have a regulatory body that needs to be involved or needs to approve a program. T he sales cycles can take years in some cases, but I think that the current shortage of supply is allowing us to shorten those sales cycles some, and has given us some optimism about the latter part of this year and next year. Got it. That's very helpful. Thanks for taking our questions. Thank you. I'm not showing any further questions at this time, and as such, this does conclude today's presentation. We thank you for your participation. You may now disconnect and have a wonderful day.