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Leading SaaS platform for intelligently connected properties February 2026
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Copyright © Alarm.com 2026 Safe Harbor Statement N O N - G A A P F I N A N C I A L M E A S U R E S This presentation also contains certain non-GAAP financial measures as defined by the SEC rules. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. As required by Regulation G, we have provided a reconciliation of those measures to their most directly comparable GAAP measures, which is available in the Appendix slides to this presentation. Please refer to our February 19,2026 press release for information as to why we believe these non-GAAP financial measures are useful to investors and others in assessing our operating results. We urge investors not to rely on any single financial measure to evaluate our business. This presentation contains forward-looking statements that involve risks and uncertainties. All statements other than statements of historical fact contained in this presentation, including, but not limited to, statements regarding our potential market opportunity in both the residential and commercial markets and growth drivers, including addressable markets and industry trends, expansion into new international markets and other verticals and other business and product development plans, including statements regarding product and feature releases and related benefits, market demand for our offerings, are forward-looking statements. Any such statements are not guarantees of future performance, but are based on our assumptions, expectations and beliefs as of the date of this presentation and are subject to substantial risks, uncertainties, assumptions, and changes in circumstances that may cause our actual results, performance, or achievements to differ materially from those expressed or implied in any forward-looking statement. Investors should not place undue reliance on our forward-looking statements. Our actual results and operations may differ materially from these forward-looking statements. The global economy, credit markets and financial markets have and may continue to experience significant volatility as a result of significant worldwide events, including public health crises, and geopolitical upheaval (including the ongoing conflicts in Ukraine, and in Israel and surrounding areas), disruptions to global supply chains, fluctuations in interest rates, tariffs, risk of recession and inflation (collectively, the Macroeconomic Conditions). Macroeconomic Conditions and their economic effects may reduce demand, the reliability of the Company’s network operations centers, the Company’s ability to retain service provider partners and residential and commercial subscribers and sustain its growth rate, the Company’s ability to manage growth and execute on its business strategies, the effects of increased competition and evolving technologies, the Company’s ability to integrate acquired assets and businesses and to manage service provider partners, customers and employees, consumer demand for interactive security, video monitoring, intelligent automation, energy management and wellness solutions, the Company’s reliance on its service provider network to attract new customers and retain existing customers, the Company's dependence on its suppliers, the potential loss of any key supplier or the inability of a key supplier to deliver their products to us on time or at the contracted price, the reliability of the Company’s hardware and wireless network suppliers and enhanced United States tax, tariff, import/export restrictions, or other trade barriers, as well as other risks and uncertainties discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 19, 2026 and other subsequent filings the Company makes with the Securities and Exchange Commission from time to time. Except as required by law, we assume no obligation to update these forward-looking statements publicly or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Any information in this presentation on new products, features or functionality is intended to outline our general product direction. The information on new products, features, and functionality is not a commitment, promise or legal obligation to deliver any feature or functionality. The development, release, and timing of any features or functionality described for our products remains at our sole discretion. F O R W A R D- L O O K I N G S T A T E M E N T S
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Copyright © Alarm.com 2026 AGENDA Company Overview Market Opportunity The Alarm.com Platform Our Solutions Growth Drivers Financial Overview
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Company Overview
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The cloud based (SaaS) operating system which enables service providers and their subscribers to intelligently manage and control their residential and commercial properties with highly advanced IoT technology solutions. Founded in 2000 IPO in June 2015; Nasdaq: ALRM ~12,000 service provider partners 2,058 employees
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Key Investment Highlights Clear Leader in Large & Growing Markets Innovating to Expand Market Opportunities SaaS Recurring Revenue Model Strong Profitable Growth
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~12K Service provider partners 1 Alarm.com Contributes ✓ SaaS software for subscribers and service providers ✓ Enterprise services drive service provider efficiency ✓ Innovation engine for partners Service Provider Contributes ✓ Customer acquisition and marketing ✓ System installation and ongoing support ✓ Monitoring and emergency dispatch Winning Partnership Efficient Service Provider Go-to-Market
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History of TAM Expansion Through Innovation IPO 2015 2003 -2015 Industry 1st Wireless Interactive Security Industry 1st Native Mobile App & Smart Home App for Apple Watch Integrated Doorbell Camera 2016 -2019 Integrated Doorbell Camera Commercial Market Expansion Smarter Access Control Insights Engine Video Analytics Launch 2020 Commercial SVR Industry 1st Flex I/O Acquired Shooter Detection Systems OpenEye launches SaaS solution Smart Gateway 2021 AI-based Business Activity Analytics Pro-Series Cameras Perimeter Guard Ambient Insights for Alarm Response Industry 1st Touchless Video Doorbell 2022 3rd Party Camera Support Acquired Noonlight Water Dragon Wireless Video Doorbell OpenEye, AI-based video analytics Industry 1st Smart Arming 2023 Cell Connector for Access Control 729 Floodlight Camera Battery-free Video Doorbell Pro-Series Cameras In-App Property Panic 2024 Familiar Vehicle Analytics AI Deterrence OpenEye Cloud Camera Connected Fleet Remote Video Monitoring
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Market Opportunity
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Leveraging our technology leadership and scale in core markets to expand into emerging market opportunities. Growth in Adjacent Markets Commercial Video analytics Advanced monitoring & Event response Active shooter events International Expansion Currently in 80+ countries, partnered with leading global security providers, and expanding market depth and breadth. Develop Emerging AI and IoT Opportunities Lead secular technology trends and emerging opportunities. Over 500 million serviceable properties and growing Market Opportunity
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262 Million Addressable properties 38 Million 67M Homes with Monitored Security 2 400M Total Serviceable Homes 1 Properties Powered by Alarm.com 140 million Addressable Properties 29 Million International MarketsUS & Canada Markets Global Residential Opportunity
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Growth Dynamics Long-term cyclical upgrade opportunity from traditional systems to Alarm.com’s intelligent, unified security, video, and access control solutions. Robust solution suite increases commercial account ARPU by 2 to 6 times over residential. Global Market 1 118 Million properties 11 Million Serviceable Businesses Commercial Properties Powered by Alarm.com Businesses with Monitored Security Global Commercial Opportunity
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Commercial Opportunity Enterprise Commercial Segment Small & Medium Business Segment ✓ Legacy video solutions are shifting to cloud-based architectures powered by A.I. capabilities ✓ Video Surveillance -as-a-Service revenue is expected to grow at a 26% CAGR from 2023 to 2028. ✓ Opportunity to upgrade from traditional systems to integrated, smart business solutions ✓ ~6M target properties in U.S. with high penetration of traditional services
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The Alarm.com Platform
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Internet of Things Ecosystem A unified experience Intelligent Solutions Security Access Video Energy Lights Garage Water Wellness Solar Advanced Cloud Platform Alarm.com Platform
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Intelligent Cloud-Based Solutions For Subscribers For Service Providers Interactive Security Wellness Solutions Video Surveillance Intelligent Automation Energy Management Sales & Marketing Remote Diagnostics Installation & Support Business Intelligence Customer Engagement
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✓ Reinvented home security ✓ AI - powered smart alerts ✓ Proactive protection and awareness ✓ Securely manage property access with multi-device user codes and schedules ✓ Patented security capabilities Smarter Security
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My Home: Driveway Camera detected a Vehicle and recorded a video clip at 3:18pm. Enhanced Service plans for residential and business customers Alerts that matter ✓ Advanced security and awareness ✓ Detect cars, people, and animals ✓ Easily customize to identify highly specific activity ✓ Catch the unexpected and deter the unwanted A L A R M AI Video Analytics
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AI-based object detection and smart alerts ✓ Feature specifically reacts to individuals entering your property ✓ Attention-grabbing audio alerts and blinking red LED ensure people are fully aware of the camera's presence – deterring intrusion ✓ Easily configure as part of a Video Analytics rule Person Perimeter Guard®
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AI-based proactive deterrence for residential and commercial markets “You are trespassing on private property” Video Analytics Detects a person, animal, or vehicle, and responds automatically Warning Response 3000 Lumen floodlight and red and blue warning response lights Escalated Response Engage and deter potential bad actors with two-way talk-down. Person AI Deterrence
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Integrated solutions drive depth of service and increased ARPU Security & Intrusion Video Surveillance Access Control A Unified Commercial Solution
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Total Business Awareness ALARM.COM now My Business: Parking Lot Camera detected a person at 10:47 pm. Alarm activated Business opened late/closed early Power outage Unexpected activity Temperature out of range Invalid access attempt Vehicle/person approaching after hours Occupancy limit exceeded Location summary
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Play Video Play Video
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A L A R M A I Large Language Models Video Analytics Service Provider Analytics HVAC Analytics Quality Engineering Analytics Unexpected Activity Wellness Business Intelligence
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Play Video Play Video
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Growth Drivers
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Add more subscribers Grow commercial Grow international Grow vertical businesses Add service provider partners Compelling Growth Drivers Expand EnergyHub Upsell existing subscribers
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Enterprise software solutions for energy utilities DERMS Platform Smart Thermostats Water Heaters Smart Inverters Energy Storage Electric Vehicles Commercial & Industrial Select Partners Harnesses millions of distributed energy resources (DERs) to create virtual power plants (VPPs) that provide critical grid flexibility and load management capabilities for utilities. Market leader Over 150 utility clients, including 16 of the top 50 in the US Over 2.5m DERs enrolled and actively orchestrated Largest multi -class connected device ecosystem Pioneered Bring Your Own Thermostat ® program delivery model Growing TAM The global market for VPPs is estimated to be $5 billion in 2024, and expected to grow at a CAGR of 22% from 2025 to 20301
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Alarm.com services are available 2B Households worldwide 1 $32B Global commercial market 2 80+ Countries Solutions delivered 3 Select International Partners Global Market
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Advantages ✓ Operational efficiencies for operators ✓ Asset protection for owners ✓ In-demand amenity for residents Market Opportunity 27 MILLION Multi-family units ~2 MILLION Vacation rental properties Enterprise smart home automation services for property management of multi -family dwellings, single-family homes, and vacation rentals.
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Select Partners ✓ Integrated home energy management, automation, and video services ✓ Service revenue opportunity for HVAC channel ✓ AI models monitor HVAC and proactively detects trouble conditions before escalating into higher cost repairs or failures Enabling the HVAC channel to deliver advanced smart home automation solutions
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Conserving Energy and Resources Our EnergyHub Subsidiary Enables Decarbonization Renewable Energy Resources EnergyHub enables utilities to increase use of zero- carbon generation byintelligently managing electricity demand to match the output of intermittent renewable energy resources. 42m pounds of CO2 Emissions Reduction Electric utilities avoided an estimated 42 million pounds of CO2 emissions in 2022 alone using EnergyHub’s demand response software. Electric Vehicles (EVs) The mass-scale adoption of EVs is essential to decarbonizing the transportation sector but will significantly increase electricity demand. EnergyHub intelligently manages EV charging to enable utilities to meet peak charging demand and allow for greater EV adoption. Alarm.com Leverages a Rich Set of Data to Reduce Energy and Water Waste Energy Star rated Smart Thermostat Our smart thermostats know when the property is empty or if a window or door is left open and automatically adjusts to save energy. Whole Home Smart Water Solutions Devices and sensors work together to monitor water flow. When leaks or floods are detected, Alarm.com helps eliminate waste by automatically alerting subscribers and shutting off the water supply. Our solution also provides information about water usage, historical trends, and comparisons with expected usage levels. HVAC analytics Machine Learning monitors HVAC system performance and proactively alerts homeowners about inefficient operations and trouble conditions.
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Financial Overview
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$ 1 7 4 $ 2 3 6 $ 2 9 1 $ 3 3 7 $ 3 9 3 $ 4 6 0 $ 5 2 0 $ 5 6 9 $ 6 3 1 $ 6 8 9 $ 8 7 $ 1 0 3 $ 1 2 9 $ 1 6 5 $ 2 2 5 $ 2 8 9 $ 3 2 3 $ 3 1 2 $ 3 0 9 $ 3 2 2 $ 2 6 1 $ 3 3 9 $ 4 2 0 $ 5 0 2 $ 6 1 8 $ 7 4 9 $ 8 4 3 $ 8 8 1 $ 9 4 0 $ 1 , 0 1 1 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 SaaS & License Revenue Hardware and Other Revenue Consistent Revenue Growth
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High SaaS Gross Margins & Retention Rate $ 1 7 4 $ 2 3 6 $ 2 9 1 $ 3 3 7 $ 3 9 3 $ 4 6 0 $ 5 2 0 $ 5 6 9 $ 6 3 1 $ 6 8 9 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 D O L L A R S I N M I L L I O N SaaS and License Revenue 8 3 % 8 5 % 8 5 % 8 5 % 8 6 % 8 5 % 8 6 % 8 5 % 8 6 % 8 6 % 9 4 % 9 3 % 9 3 % 9 4 % 9 4 % 9 4 % 9 4 % 9 4 % 9 5 % 9 5 % SaaS Revenue Retention Rate SaaS Gross Margin
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Track Record of Profitability $ 4 9 $ 7 2 $ 9 3 $ 1 0 8 $ 1 2 5 $ 1 4 2 $ 1 4 7 $ 1 5 4 $ 1 7 6 $ 2 0 6 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 D O L L A R S I N M I L L I O N S Adj. EBITDA
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C O M P A N Y O V E R V I E W Copyright © Alarm.com 2026 Copyright © Alarm.com 2026 Appendix Copyright © Alarm.com 2026
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Investor Data Sheet 1/4 Statement of Operations Data: 2022 2023 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 SaaS and license revenue1 $520,377 $569,200 $631,198 $150,344 $155,927 $159,276 $165,651 $163,800 $169,993 $175,372 $180,232 Hardware and other revenue 322,182 312,482 308,629 72,939 77,880 81,221 76,589 75,022 84,315 81,028 81,425 Total Revenue $842,559 $881,682 $939,827 $223,283 $233,807 $240,497 $242,240 $238,822 $254,308 $256,400 $261,657 Cost of SaaS and license revenue2 73,897 85,898 89,512 20,428 22,094 23,099 23,891 21,568 23,653 24,233 26,746 Cost of hardware and other revenue 268,684 239,261 236,637 56,087 59,188 61,649 59,713 56,666 63,809 63,329 62,291 Total Cost of Revenue $342,581 $325,159 $326,149 $76,515 $81,282 $84,748 $83,604 $78,234 $87,462 $87,562 $89,037 Net income $55,631 $80,340 $122,513 $23,404 $32,520 $36,456 $30,133 $27,712 $34,217 $35,100 $34,599 Net income attributable to common stockholders 56,338 81,043 124,116 23,595 33,511 36,682 30,328 27,950 34,552 35,338 34,734 Net income attributable to common stockholders per share, diluted $1.07 $1.53 $2.29 $0.44 $0.62 $0.67 $0.56 $0.52 $0.63 $0.65 $0.66 Weighted-average common shares outstanding - diluted 54,932,757 54,625,434 57,993,019 55,047,087 56,680,355 59,780,908 59,961,161 60,077,647 60,137,204 58,461,103 56,587,638 Balance Sheet Data (as of): Cash and cash equivalents $622,165 $696,983 $1,220,701 $747,877 $1,104,539 $1,170,605 $1,220,701 $1,186,195 $1,024,862 $1,066,583 $960,584 Non-GAAP Financial Measures3: Non-GAAP adjusted EBITDA3 $146,848 $153,967 $176,239 $37,046 $42,831 $49,976 $46,386 $43,540 $48,412 $59,159 $54,894 Non-GAAP adjusted net income3 106,386 112,599 125,834 27,165 31,222 34,987 32,460 30,224 33,805 42,206 38,765 Non-GAAP adjusted net income attributable to common stockholders3 106,945 113,154 127,101 27,316 32,005 35,165 32,615 30,412 34,070 42,394 38,871 Alarm.com Holdings, Inc. Select Financial Data | Fiscal Year End December 31 | ($ in thousands) 1 Includes software license revenue of $4.2 million and $4.9 million for the three months ended December 31, 2025 and 2024, and $17.7 million and $20.3 million for the years ended December 31, 2025 and 2024, respectively. 2 Includes cost of software license revenue of $0.1 million for each of the three months ended December 31, 2025 and 2024, and $0.4 million and $0.6 million for the years ended December 31, 2025 and 2024, respectively. 3 Non-GAAP adjusted EBITDA, adjusted net income and adjusted net income attributable to common stockholders are non-GAAP financial measures - see next page for reconciliation to GAAP.
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Investor Data Sheet 2/4 Non-GAAP Adjusted EBITDA: 2022 2023 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Net income $55,631 $80,340 $122,513 $23,404 $32,520 $36,456 $30,133 $27,712 $34,217 $35,100 $34,599 Adjustments: Interest expense, interest income and certain activity within other (expense) / income, net (5,768) (32,229) (36,066) (7,744) (8,888) (10,069) (9,365) (8,032) (7,512) (7,049) (5,831) Provision for income taxes 962 17,485 19,294 2,747 884 6,718 8,945 7,307 5,458 15,200 9,655 Income from equity method investments, net - - - - - - - - (316) (2,793) 467 Amortization and depreciation expense 30,870 31,424 29,131 7,337 7,080 7,612 7,102 7,024 7,534 7,793 8,468 Stock-based compensation expense 52,654 47,283 41,242 11,268 11,213 9,194 9,567 9,458 8,934 8,221 6,577 Acquisition-related expense 1,059 621 108 31 13 61 3 50 10 898 914 Litigation expense 11,440 9,043 17 3 9 4 1 21 87 1,789 45 Total adjustments 91,217 73,627 53,726 13,642 10,311 13,520 16,253 15,828 14,195 24,059 20,295 Non-GAAP Adjusted EBITDA $146,848 $153,967 $176,239 $37,046 $42,831 $49,976 $46,386 $43,540 $48,412 $59,159 $54,894 Net Income Margin 7% 9% 13% 10% 14% 15% 12% 12% 13% 14% 13% Non-GAAP Adjusted EBITDA Margin 17% 17% 19% 17% 18% 21% 19% 18% 19% 23% 21% Non-GAAP Adjusted Net Income: Net income, as reported $55,631 $80,340 $122,513 $23,404 $32,520 $36,456 $30,133 $27,712 $34,217 $35,100 $34,599 Provision for income taxes 962 17,485 19,294 2,747 884 6,718 8,945 7,307 5,458 15,200 9,655 Income from equity method investments, net - - - - - - - - (316) (2,793) 467 Income before income taxes 56,593 97,825 141,807 26,151 33,404 43,174 39,078 35,019 39,359 47,507 44,721 Adjustments: Interest income and certain activity within other (expense) / income, net (8,912) (35,658) (47,492) (8,540) (10,856) (14,384) (13,712) (12,346) (11,833) (11,375) (10,164) Amortization expense 18,706 20,271 18,806 4,683 4,718 4,753 4,652 4,558 4,731 4,874 5,458 Amortization of debt discount and debt issuance costs 3,126 3,145 4,796 790 1,021 1,485 1,500 1,498 1,504 1,511 1,518 Stock-based compensation expense 52,654 47,283 41,242 11,268 11,213 9,194 9,567 9,458 8,934 8,221 6,577 Acquisition-related expense 1,059 621 108 31 13 61 3 50 10 898 914 Litigation expense 11,440 9,043 17 3 9 4 1 21 87 1,789 45 Total adjustments 78,073 44,705 17,477 8,235 6,118 1,113 2,011 3,239 3,433 5,918 4,348 Income taxes (28,280) (29,931) (33,450) (7,221) (8,300) (9,300) (8,629) (8,034) (8,987) (11,219) (10,304) Non-GAAP Adjusted Net Income $106,386 $112,599 $125,834 $27,165 $31,222 $34,987 $32,460 $30,224 $33,805 $42,206 $38,765 Alarm.com Holdings, Inc. Non-GAAP Reconciliations | Fiscal Year Ended December 31 | ($ in thousands)
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Investor Data Sheet 3/4 Non-GAAP Adjusted Net Income Attributable to Common Stockholders: 2022 2023 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Net income attributable to common stockholders, as reported $56,338 $81,043 $124,116 $23,595 $33,511 $36,682 $30,328 $27,950 $34,552 $35,338 $34,734 Provision for income taxes 962 17,485 19,294 2,747 884 6,718 8,945 7,307 5,458 15,200 9,655 Income from equity method investments, net - - - - - - - - (316) (2,793) 467 Income attributable to common stockholders before taxes 57,300 98,528 143,410 26,342 34,395 43,400 39,273 35,257 39,694 47,745 44,856 Adjustments: Interest income and certain activity within other (expense) / income, net (8,912) (35,658) (47,492) (8,540) (10,856) (14,384) (13,712) (12,346) (11,833) (11,375) (10,164) Amortization expense 18,706 20,271 18,806 4,683 4,718 4,753 4,652 4,558 4,731 4,874 5,458 Amortization of debt discount and debt issuance costs 3,126 3,145 4,796 790 1,021 1,485 1,500 1,498 1,504 1,511 1,518 Stock-based compensation expense 52,654 47,283 41,242 11,268 11,213 9,194 9,567 9,458 8,934 8,221 6,577 Acquisition-related expense 1,059 621 108 31 13 61 3 50 10 898 914 Litigation expense 11,440 9,043 17 3 9 4 1 21 87 1,789 45 Total adjustments 78,073 44,705 17,477 8,235 6,118 1,113 2,011 3,239 3,433 5,918 4,348 Income taxes (28,428) (30,079) (33,786) (7,261) (8,508) (9,348) (8,669) (8,084) (9,057) (11,269) (10,333) Non-GAAP Adjusted Net Income Attributable to Common Stockholders $106,945 $113,154 $127,101 $27,316 $32,005 $35,165 $32,615 $30,412 $34,070 $42,394 $38,871 Non-GAAP Adjusted Net Income Attributable to Common Stockholders per Share - Diluted $1.95 $2.07 $2.28 $0.50 $0.58 $0.62 $0.58 $0.54 $0.60 $0.76 $0.72 Non-GAAP Free Cash Flow: Cash flows from operating activities $56,901 $135,965 $206,413 $49,853 $22,963 $77,337 $56,260 $24,057 $22,716 $70,628 $35,929 Additions to property and equipment (28,640) (7,517) (10,133) (3,066) (1,992) (2,807) (2,268) (6,115) (4,552) (4,754) (860) Non-GAAP Free Cash Flow $28,261 $128,448 $196,280 $46,787 $20,971 $74,530 $53,992 $17,942 $18,164 $65,874 $35,069 Alarm.com Holdings, Inc. Non-GAAP Reconciliations | Fiscal Year Ended December 31 | ($ in thousands)
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Investor Data Sheet 4/4 Non-GAAP Adjusted Total Operating Expenses: 2022 2023 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Total operating expenses $448,941 $489,694 $505,130 $128,043 $126,751 $122,555 $127,781 $130,941 $134,824 $131,817 $137,672 Adjustments: Amortization and depreciation expense (30,870) (31,424) (29,131) (7,337) (7,080) (7,612) (7,102) (7,024) (7,534) (7,793) (8,468) Stock-based compensation expense included in total operating expenses (52,654) (47,278) (41,240) (11,267) (11,212) (9,194) (9,567) (9,458) (8,934) (8,221) (6,577) Acquisition-related expense (1,059) (621) (108) (31) (13) (61) (3) (50) (10) (898) (914) Litigation expense (11,440) (9,043) (17) (3) (9) (4) (1) (21) (87) (1,789) (45) Non-GAAP Adjusted Total Operating Expenses: $352,918 $401,328 $434,634 $109,405 $108,437 $105,684 $111,108 $114,388 $118,259 $113,116 $121,668 Non-GAAP Adjusted Research and Development Expense: Research and development expense $218,635 $245,114 $255,878 $65,956 $65,730 $62,221 $61,971 $68,367 $69,070 $66,637 $66,155 Adjustments: Stock-based compensation expense included in research and development expense (33,275) (30,728) (25,327) (7,331) (7,185) (5,572) (5,239) (6,006) (5,840) (4,858) (3,571) Non-GAAP Adjusted Research and Development Expense $185,360 $214,386 $230,551 $58,625 $58,545 $56,649 $56,732 $62,361 $63,230 $61,779 $62,584 Alarm.com Holdings, Inc. Non-GAAP Reconciliations | Fiscal Year Ended December 31 | ($ in thousands)
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Supplemental Financial Data Supplemental Financial Data: 2022 2023 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 SaaS and license revenue1 $520,377 $569,200 $631,198 $150,344 $155,927 $159,276 $165,651 $163,800 $169,993 $175,372 $180,232 Hardware and other revenue 322,182 312,482 308,629 72,939 77,880 81,221 76,589 75,022 84,315 81,028 81,425 Total revenue 842,559 881,682 939,827 223,283 233,807 240,497 242,240 238,822 254,308 256,400 261,657 Cost of SaaS and license revenue2 73,897 85,898 89,512 20,428 22,094 23,099 23,891 21,568 23,653 24,233 26,746 Cost of hardware and other revenue 268,684 239,261 236,637 56,087 59,188 61,649 59,713 56,666 63,809 63,329 62,291 Total cost of revenue 342,581 325,159 326,149 76,515 81,282 84,748 83,604 78,234 87,462 87,562 89,037 Sales and marketing 92,748 100,226 111,242 25,454 27,837 27,010 30,941 28,549 31,136 29,498 34,605 General and administrative 106,688 112,930 108,879 29,296 26,104 25,712 27,767 27,001 27,084 27,889 28,444 Research and development 218,635 245,114 255,878 65,956 65,730 62,221 61,971 68,367 69,070 66,637 66,155 Amortization and depreciation 30,870 31,424 29,131 7,337 7,080 7,612 7,102 7,024 7,534 7,793 8,468 Total operating expenses 448,941 489,694 505,130 128,043 126,751 122,555 127,781 130,941 134,824 131,817 137,672 Operating income 51,037 66,829 108,548 18,725 25,774 33,194 30,855 29,647 32,022 37,021 34,948 Interest expense (3,144) (3,429) (11,426) (796) (1,968) (4,315) (4,347) (4,314) (4,321) (4,326) (4,333) Interest income 8,759 29,801 47,359 8,540 10,856 14,384 13,579 12,371 11,808 11,274 10,164 Other (expense) / income, net (59) 4,624 (2,674) (318) (1,258) (89) (1,009) (2,685) (150) 3,538 3,942 Income before income taxes 56,593 97,825 141,807 26,151 33,404 43,174 39,078 35,019 39,359 47,507 44,721 Provision for income taxes 962 17,485 19,294 2,747 884 6,718 8,945 7,307 5,458 15,200 9,655 Income from equity method investments, net - - - - - - - - (316) (2,793) 467 Net Income $55,631 $80,340 $122,513 $23,404 $32,520 $36,456 $30,133 $27,712 $34,217 $35,100 $34,599 Net Income Attributable to Common Stockholders $56,338 $81,043 $124,116 $23,595 $33,511 $36,682 $30,328 $27,950 $34,552 $35,338 $34,734 Stock-based Compensation Expense Data: Cost of hardware and other revenue -$ 5$ 2$ 1$ 1$ -$ -$ -$ -$ -$ -$ Sales and marketing 4,342 3,522 2,833 755 724 545 809 480 620 642 699 General and administrative 15,037 13,028 13,080 3,181 3,303 3,077 3,519 2,972 2,474 2,721 2,307 Research and development 33,275 30,728 25,327 7,331 7,185 5,572 5,239 6,006 5,840 4,858 3,571 Total Stock-based Compensation Expense $52,654 $47,283 $41,242 $11,268 $11,213 $9,194 $9,567 $9,458 $8,934 $8,221 $6,577 As a Percent of Revenue: Cost of SaaS and license revenue as a percentage of SaaS and license revenue 14% 15% 14% 14% 14% 15% 14% 13% 14% 14% 15% Cost of hardware and other revenue as a percentage of hardware and other revenue 83% 77% 77% 77% 76% 76% 78% 76% 76% 78% 77% Sales and marketing 11% 11% 12% 12% 12% 11% 13% 12% 12% 12% 12% General and administrative 13% 13% 12% 13% 11% 11% 11% 11% 11% 11% 11% Research and development 26% 28% 27% 30% 28% 26% 25% 28% 27% 26% 25% Amortization and depreciation 3% 4% 3% 3% 3% 3% 3% 3% 3% 3% 3% Total operating expenses 53% 56% 54% 58% 54% 51% 52% 54% 53% 52% 53% Operating income 6% 7% 11% 8% 11% 14% 13% 13% 13% 14% 13% Net Income 7% 9% 13% 10% 14% 15% 12% 12% 13% 14% 12% Net Income Attributable to Common Stockholders 7% 9% 13% 11% 14% 15% 13% 12% 14% 14% 13% 1 Includes software license revenue of $4.2 million and $4.9 million for the three months ended December 31, 2025 and 2024, and $17.7 million and $20.3 million for the years ended December 31, 2025 and 2024, respectively. 2 Includes cost of software license revenue of $0.1 million for each of the three months ended December 31, 2025 and 2024, and $0.4 million and $0.6 million for the years ended December 31, 2025 and 2024, respectively. Alarm.com Holdings, Inc. Supplemental Financial Data | Fiscal Year Ended December 31 | ($ in thousands)
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