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Alarm.com: From Smart Security to Energy Ecosystems—Is This Becoming a Multi-Vertical Compounder?

Alarm.com reported solid fourth quarter and full year 2025 performance, which showcased its strategic advancements and financial growth. The company’s SaaS and license revenue for the quarter was $180 million, marking an 8.8% increase year-over-year. Additionally, Alarm.com celebrated achieving over $1 billion in annual total revenue for the year, a noteworthy milestone that reflects the robustness of its technology and business model. A key positive for Alarm.com is the diversification of its business sectors, which are increasingly contributing to overall revenue growth. The commercial and energy segments combined accounted for 25% of SaaS revenue in 2025 and exhibited strong growth at about 25% year-over-year. This diversification strategy appears to be effective in mitigating risks inherent in the core residential business, while also leveraging key market trends in energy management and commercial security solutions.