Alarm.com Holdings, Inc. key statistics and ratios

In fiscal 2025, Alarm.com Holdings, Inc. had return on equity of 16.8%, an operating margin of 13.2%, debt equal to 0.0% of equity and a current ratio of 1.92. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Alarm.com Holdings, Inc.: financial ratios, annual
Fiscal year	2013Dec 2013	2014Dec 2014	2015Dec 2015	2016Dec 2016	2017Dec 2017	2018Dec 2018	2019Dec 2019	2020Dec 2020	2021Dec 2021	2022Dec 2022	2023Dec 2023	2024Dec 2024	2025Dec 2025	LTMJun 2026
Gross margin	57.8%	59.8%	63.0%	61.9%	65.7%	65.3%	63.5%	63.2%	59.2%	59.3%	63.1%	65.3%	66.1%	65.8%
Operating margin	5.7%	12.6%	8.6%	5.4%	9.8%	2.9%	10.0%	9.1%	8.2%	6.1%	7.6%	11.5%	13.2%	12.8%
Net margin	3.5%	8.1%	5.6%	3.9%	8.6%	5.1%	10.7%	12.6%	7.0%	6.7%	9.2%	13.2%	13.1%	11.1%
Free-cash-flow margin	6.4%	5.2%	8.5%	5.2%	13.8%	11.8%	5.5%	13.9%	12.3%	3.4%	14.6%	20.9%	13.6%	17.7%
Return on equity	—	—	48.7%	5.6%	13.8%	8.4%	16.9%	18.9%	9.7%	9.3%	12.6%	17.5%	16.8%	13.8%
Return on assets	—	11.2%	6.8%	4.2%	9.2%	5.3%	10.7%	12.1%	5.3%	4.4%	5.9%	7.1%	6.4%	6.2%
Asset turnover	—	1.38	1.20	1.07	1.07	1.03	1.01	0.96	0.76	0.66	0.64	0.54	0.48	0.56
Current ratio	—	3.02	5.54	4.79	3.68	3.03	3.21	4.40	7.09	5.40	5.46	7.85	1.92	4.96
Debt to equity	—	—	3.9%	3.5%	30.5%	24.1%	17.7%	23.5%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Interest cover (operating income ÷ interest)	—	—	—	—	—	—	—	—	—	16.2x	19.5x	9.5x	7.7x	8.6x
Effective tax rate	37.3%	33.5%	32.6%	29.4%	9.3%	—	9.5%	4.4%	−11.1%	1.7%	17.9%	13.6%	22.6%	25.2%
R&D as % of revenue	10.0%	13.9%	19.1%	17.0%	21.5%	21.2%	22.8%	24.6%	23.7%	25.9%	27.8%	27.2%	26.7%	26.0%
Capital spending as % of revenue	1.7%	4.1%	5.0%	3.5%	3.1%	2.6%	3.8%	2.6%	1.5%	3.4%	0.9%	1.1%	1.6%	1.1%
Free cash flow ÷ net income	185.2%	64.8%	150.2%	133.4%	159.7%	230.9%	51.9%	110.4%	176.2%	50.2%	158.5%	158.1%	103.4%	159.2%
Dividends ÷ net income	0.0%	0.0%	8.6%	0.0%	0.0%	—	—	—	—	—	—	—	—	—
Dividends and buybacks ÷ free cash flow	0.1%	0.1%	5.7%	0.1%	0.0%	0.0%	0.0%	6.0%	0.0%	279.0%	21.3%	38.2%	30.3%	40.7%

US$ thousands unless shown otherwise. Fiscal quarters.

Alarm.com Holdings, Inc.: financial ratios, quarterly
Quarter	2024 Q3Sept 2024	2024 Q4Dec 2024	2025 Q1Mar 2025	2025 Q2Jun 2025	2025 Q3Sept 2025	2025 Q4Dec 2025	2026 Q1Mar 2026	2026 Q2Jun 2026
Gross margin	64.8%	65.5%	67.2%	65.6%	65.8%	66.0%	65.9%	65.6%
Operating margin	13.8%	12.7%	12.4%	12.6%	14.4%	13.4%	11.9%	11.7%
Net margin	15.3%	12.5%	11.7%	13.6%	13.8%	13.3%	8.9%	8.7%
Free-cash-flow margin	31.0%	22.3%	7.5%	7.1%	25.7%	13.4%	18.7%	13.3%
Current ratio	8.66	7.85	2.14	1.95	2.06	1.92	5.16	4.96
Debt to equity	142.3%	135.4%	129.7%	123.7%	119.4%	116.7%	57.0%	56.8%
R&D as % of revenue	25.9%	25.6%	28.6%	27.2%	26.0%	25.3%	27.2%	25.6%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

5 of 7 checks passed · June 30, 2026

What it owns · $1.7bn

Short-term assets $801mLonger-term assets $856m

What it owes, and who funded it · $1.6bn

Short-term liabilities $162mLonger-term liabilities $585mShareholders' equity $864m

Short-term assets cover short-term liabilities $801m of assets due within a year against $162m of liabilities due within a year.
Short-term assets cover long-term liabilities $801m short-term assets against $585m of longer-dated liabilities.
More cash than debt $479m of cash against $491m of debt.
Debt below 40% of shareholders' equity Debt is 57% of equity.
Debt burden no higher than five years ago Debt to equity moved from 69% to 57% over five years.
A year's operating cash flow covers at least 20% of debt $199m of operating cash flow against $491m of debt.
Operating profit covers interest at least five times over Operating income of $136m against $16m of interest.

From Alarm.com Holdings, Inc.'s latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

58 /100

Moderate moat

How hard Alarm.com Holdings's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

Returns on capital 20 / 20

Cash operating profit has been a median 21.8% of total assets over 10 years.
Pricing power 20 / 20

Gross margin has been a median 63.6%, moving by 2.5 percentage points (standard deviation) across 10 years.
Durability 7 / 20

Operating margin has been a median 9.2%; its worst year was 3.3%.
Cash conversion 16 / 20

Free cash flow was positive in 10 of 10 years, at a median 10.9% of revenue.
Discipline 11 / 20

The diluted share count rose 10.3% over five years; stock-based pay has been a median 4.1% of revenue.

AI disruption exposure: High. In this industry, the core product is information work that AI systems increasingly perform. The score above includes a 15-point deduction for that exposure (72 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

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Figures from Alarm.com Holdings, Inc.'s SEC filings (10-K and 10-Q), retrieved October 26, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Alarm.com Holdings, Inc.