Executive Summary
Alarm.com Holdings Inc delivered solid top-line growth in QQ2 2025, with revenue of USD 254.31 million, marking YoY growth of 5.7% and QoQ growth of 6.5%. The business continues to benefit from a high-margin software and cloud-services mix, evidenced by a gross margin of 90.7% and an EBITDA margin of 21.8%. Net income reached USD 34.55 million, with diluted EPS of USD 0.63, though YoY earnings declined by 5.8% on a net basis due to higher operating costs relative to the prior-year period. Operating income rose modestly QoQ (+8.0%) to USD 32.02 million, but the operating cash flow was negative (-USD 22.03 million), underscoring working-capital headwinds and investing activity as primary drivers of cash-flow dynamics in the quarter.
Key Performance Indicators
QoQ: 23.21% | YoY:-14.81%
Key Insights
Revenue: USD 254.31m (+5.74% YoY; +6.48% QoQ) | Gross Profit: USD 230.66m (Gross Margin 90.7%) | Operating Income: USD 32.02m (Operating Margin 12.59%) | EBITDA: USD 55.32m (EBITDA Margin 21.77%) | Net Income: USD 34.55m (Net Margin 13.59%) | EPS (Diluted): USD 0.63 | Diluted Shares: 60.14m | Free Cash Flow: -USD 26.58m | Operating Cash Flow: -USD 22.03m | Cash and Cash Equivalents: USD 1.024B; Total Debt: USD 1.064B; Net Debt: USD 38.3m | Four-quarter revenue trailing USD 975.87m...
Financial Highlights
Revenue: USD 254.31m (+5.74% YoY; +6.48% QoQ) | Gross Profit: USD 230.66m (Gross Margin 90.7%) | Operating Income: USD 32.02m (Operating Margin 12.59%) | EBITDA: USD 55.32m (EBITDA Margin 21.77%) | Net Income: USD 34.55m (Net Margin 13.59%) | EPS (Diluted): USD 0.63 | Diluted Shares: 60.14m | Free Cash Flow: -USD 26.58m | Operating Cash Flow: -USD 22.03m | Cash and Cash Equivalents: USD 1.024B; Total Debt: USD 1.064B; Net Debt: USD 38.3m | Four-quarter revenue trailing USD 975.87m
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
254.31M |
5.74% |
6.48% |
| Gross Profit |
230.66M |
48.09% |
43.63% |
| Operating Income |
32.02M |
-3.53% |
8.01% |
| Net Income |
34.55M |
-5.81% |
23.62% |
| EPS |
0.69 |
-14.81% |
23.21% |
Management Commentary
Note: No earnings-call transcript data was provided in the input. The following highlights synthesize reported results and likely management focus areas based on the quarter’s metrics and typical point-of-sale commentary in technology-driven security software deals.
Forward Guidance
No explicit forward guidance was included in the QQ2 2025 data provided. Given the ongoing monetization of cloud-based solutions, a continued but modest revenue trajectory with a shift toward higher-margin software mix is expected. Investors should monitor: (1) ARR growth and ARPU expansion driven by subscriptions and value-added services, (2) working-capital efficiency to improve cash conversion, (3) cadence of investments in R&D and security/IoT product roadmaps, and (4) progression of debt repayment and capital allocation including potential rebalancing of investments in marketable securities versus opportunistic acquisitions.