Description

Alarm.com’s $754 Million SaaS Story: AI And EnergyHub Are Reshaping Growth!

Alarm.com operates a software-as-a-service and connected device platform with diversified revenue across residential and commercial security, along with distributed energy resource management through its EnergyHub subsidiary. In the second quarter of 2026, SaaS and license revenue reached $188.8 million, up 11% year-over-year and above guidance. Adjusted EBITDA increased 15.7% to $57.7 million, with margin expanding approximately 115 basis points to 20.8%. Non-GAAP adjusted net income rose 17% to $41.1 million, or $0.77 per diluted share, supported by broad-based operating performance. The residential business remained stable with modest improvement in revenue retention, while commercial operations maintained strong momentum, particularly through OpenEye video surveillance products enhanced by AI-enabled services. Enterprise adoption contributed to a 180-basis-point expansion in hardware gross margin. EnergyHub also supported growth through an expanding software portfolio and utility demand response programs, including grid support during periods of elevated electricity demand.