Alarm.com Holdings, Inc. (ALRM) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 5, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 10-Q for Q2 FY2026, filed Aug 6, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the ALRM SEC filings page.
Alarm.com Holdings, Inc. (ALRM) reported $1.1B in revenue over the twelve months to Jun 30, 2026, up 8.7% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 13 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Alarm.com’s 2025 growth reached profitability, but cash conversion weakened as short-term obligations expanded and investing absorbed cash.
Net income rose7.4% in FY2025, but operating cash flow fell25.7% . With operating margin widening from11.6% to13.2% , the divergence suggests earnings became less cash-backed because of cash timing or balance-sheet movements rather than weaker reported operations.
Gross margin expanded from
The liquidity structure changed sharply: current liabilities jumped from
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Alarm.com Holdings, Inc.'s business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Alarm.com Holdings, Inc. has an operating margin of 13.2%, meaning the company retains $13 of operating profit per $100 of revenue. This strong profitability earns a score of 71/100, reflecting efficient cost management and pricing power. This is up from 11.6% the prior year.
Alarm.com Holdings, Inc.'s revenue grew 7.6% year-over-year to $1.0B, a solid pace of expansion. This earns a growth score of 57/100.
Alarm.com Holdings, Inc. has a moderate D/E ratio of 1.47. This balance of debt and equity financing earns a leverage score of 38/100.
Alarm.com Holdings, Inc.'s current ratio of 1.92 indicates adequate short-term liquidity, earning a score of 57/100. The company can meet its near-term obligations, though with limited headroom.
Alarm.com Holdings, Inc. converts 13.6% of revenue into free cash flow ($137.0M). This strong cash generation earns a score of 80/100.
Alarm.com Holdings, Inc.'s ROE of 15.5% shows moderate profitability relative to equity, earning a score of 61/100. This is down from 16.9% the prior year.
Alarm.com Holdings, Inc. scores 2.69, placing it in the grey zone between 1.81 and 2.99. This signals moderate financial risk that warrants monitoring.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Alarm.com Holdings, Inc. passes 6 of 8 computable financial strength tests (1 of the nine could not be computed from available data). All 4 profitability signals pass (positive income, cash flow, and earnings quality), no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), both operating efficiency signals pass.
For every $1 of reported earnings, Alarm.com Holdings, Inc. generates $1.16 in operating cash flow ($153.3M OCF vs $131.6M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Alarm.com Holdings, Inc. earns $7.73 in operating income for every $1 of interest expense ($133.6M vs $17.3M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Alarm.com Holdings, Inc. generated $277.7M in revenue in Q2 2026. This represents an increase of 9.2% from the same quarter a year earlier. Against the prior quarter it is up 4.7%.
Alarm.com Holdings, Inc.'s EBITDA was $41.4M in Q2 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 4.8% from the same quarter a year earlier. Against the prior quarter it is up 1.8%.
Alarm.com Holdings, Inc. reported $24.2M in net income in Q2 2026. This represents a decrease of 29.3% from the same quarter a year earlier. Against the prior quarter it is up 3.5%.
Alarm.com Holdings, Inc. earned $0.48 per diluted share (EPS) in Q2 2026. This represents a decrease of 23.8% from the same quarter a year earlier. Against the prior quarter it is up 2.1%.
Cash & Balance Sheet
Alarm.com Holdings, Inc. generated $37.0M in free cash flow in Q2 2026, representing cash available after capex. This represents an increase of 103.9% from the same quarter a year earlier. Against the prior quarter it is down 25.5%.
Alarm.com Holdings, Inc. held $479.4M in cash as of Q2 2026; long-term debt is not reported for that period.
Not reported for Q2 2026.
Margins & Returns
Alarm.com Holdings, Inc.'s gross margin was 65.6% in Q2 2026, indicating the percentage of revenue retained after direct costs. This is down 0.1 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.3 percentage points.
Alarm.com Holdings, Inc.'s operating margin was 11.7% in Q2 2026, reflecting core business profitability. This is down 0.9 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.2 percentage points.
Alarm.com Holdings, Inc.'s net profit margin was 8.7% in Q2 2026, showing the share of revenue converted to profit. This is down 4.7 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.1 percentage points.
Alarm.com Holdings, Inc.'s ROE was 2.8% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is down 1.5 percentage points from the same quarter a year earlier. Against the prior quarter it is up 0.1 percentage points.
Capital Allocation
Alarm.com Holdings, Inc. invested $71.0M in research and development in Q2 2026. This represents an increase of 2.8% from the same quarter a year earlier. Against the prior quarter it is down 1.5%.
Alarm.com Holdings, Inc. spent $25.0M on share buybacks in Q2 2026, returning capital to shareholders by reducing shares outstanding. This represents an increase of 389.9% from the same quarter a year earlier. Against the prior quarter it is up 25.2%.
Alarm.com Holdings, Inc. invested $4.8M in capex in Q2 2026, funding long-term assets and infrastructure. This represents an increase of 6.5% from the same quarter a year earlier. Against the prior quarter it is up 431.5%.
ALRM Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Revenue | $277.7M+9.2% | $265.2M+11.0% | $261.7M+8.0% | $256.4M+6.6% | $254.3M+8.8% | $238.8M+7.0% | $242.2M+7.1% | $240.5M+8.4% |
| Cost of Revenue | $95.7M+9.4% | $90.5M+15.7% | $89.0M+6.5% | $87.6M+3.3% | $87.5M+7.6% | $78.2M+2.2% | $83.6M+2.9% | $84.7M+4.1% |
| Gross Profit | $182.1M+9.1% | $174.7M+8.8% | $172.6M+8.8% | $168.8M+8.4% | $166.8M+9.4% | $160.6M+9.4% | $158.6M+9.4% | $155.7M+10.9% |
| R&D Expenses | $71.0M+2.8% | $72.1M+5.4% | $66.2M | $66.6M+7.1% | $69.1M+5.1% | $68.4M+3.7% | N/A | $62.2M+2.0% |
| SG&A Expenses | $36.6M+35.3% | $27.5M+1.7% | $28.4M | $27.9M+8.5% | $27.1M+3.8% | $27.0M-7.8% | N/A | $25.7M-18.3% |
| Operating Income | $32.5M+1.4% | $31.6M+6.7% | $34.9M | $37.0M+11.5% | $32.0M+24.2% | $29.6M+58.3% | N/A | $33.2M+105.3% |
| EBITDA | $41.4M+4.8% | $40.7M+11.1% | $43.4M | $44.8M+9.8% | $39.6M+20.4% | $36.7M+40.7% | N/A | $40.8M+69.2% |
| Interest Expense | $3.5M-18.0% | $3.7M-14.9% | $4.3M | $4.3M+0.3% | $4.3M+119.6% | $4.3M+442.0% | N/A | $4.3M+376.3% |
| Income Tax | $7.7M+41.8% | $5.9M-19.9% | $9.7M | $15.2M+126.3% | $5.5M+517.4% | $7.3M+166.0% | N/A | $6.7M+69.1% |
| Net Income | $24.2M-29.3% | $23.4M-15.6% | $34.6M+14.1% | $35.1M-4.3% | $34.2M+2.1% | $27.7M+17.4% | $30.3M-3.1% | $36.7M+87.9% |
| EPS (Basic) | $0.49-29.0% | $0.48-14.3% | $0.69+13.1% | $0.71-4.1% | $0.69+3.0% | $0.56+19.1% | $0.61-3.2% | $0.74+89.7% |
| EPS (Diluted) | $0.48-23.8% | $0.47-9.6% | $0.66+17.9% | $0.65-3.0% | $0.63+1.6% | $0.52+18.2% | $0.56-3.4% | $0.67+81.1% |
| Diluted Shares (Avg) | 56M-7.0% | 56M-6.2% | N/A | 58M-2.2% | 60M+6.1% | 60M+9.1% | N/A | 60M+9.1% |
ALRM Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $1.7B-21.0% | $1.6B-20.9% | $2.1B+4.8% | $2.1B+7.7% | $2.1B+13.1% | $2.1B+39.7% | $2.0B+41.6% | $2.0B+39.6% |
| Current Assets | $801.4M-38.0% | $801.0M-44.9% | $1.3B-14.1% | $1.3B-4.8% | $1.3B-3.7% | $1.5B+45.6% | $1.5B+54.9% | $1.4B+51.7% |
| Cash & Equivalents | $479.4M-53.2% | $497.4M-58.1% | $960.6M-21.3% | $1.1B-8.9% | $1.0B-7.2% | $1.2B+58.6% | $1.2B+75.1% | $1.2B+72.2% |
| Short-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Inventory | $94.3M+4.8% | $95.1M+5.5% | $94.4M+8.0% | $92.3M+23.0% | $90.0M+13.1% | $90.1M+5.1% | $87.4M-9.1% | $75.0M-34.3% |
| Accounts Receivable | $161.7M+32.3% | $141.2M+18.9% | $141.9M+12.5% | $111.0M-8.3% | $122.3M-1.0% | $118.8M-7.5% | $126.1M-3.5% | $121.0M+9.7% |
| Long-Term Investments | $22.9M0.0% | $21.4M | $26.1M+52.3% | $23.2M | $22.9M | $0 | $17.2M | $0 |
| Goodwill | $224.6M+25.7% | $224.7M+26.1% | $225.0M+45.9% | $181.7M+17.5% | $178.7M+15.7% | $178.2M+15.4% | $154.2M-0.2% | $154.7M+0.5% |
| Total Liabilities | $746.7M-40.1% | $739.8M-41.5% | $1.2B-1.7% | $1.2B0.0% | $1.2B+6.3% | $1.3B+75.4% | $1.3B+77.3% | $1.2B+73.8% |
| Current Liabilities | $161.6M-75.6% | $155.3M-77.1% | $663.1M+251.2% | $654.0M+301.0% | $662.3M+356.1% | $677.4M+273.9% | $188.8M+7.7% | $163.1M-5.1% |
| Non-Current Liabilities | $585.1M+0.2% | $584.6M-0.5% | $582.4M-46.0% | $586.3M-45.6% | $583.9M-43.1% | $587.8M+8.9% | $1.1B+99.9% | $1.1B+98.9% |
| Total Equity | $864.5M+8.4% | $859.8M+13.2% | $848.2M+16.7% | $827.2M+19.8% | $797.3M+23.5% | $759.6M+4.3% | $726.5M+5.5% | $690.3M+3.4% |
| Retained Earnings | $570.7M+26.0% | $546.5M+30.7% | $522.9M+34.0% | $488.1M+35.6% | $452.8M+40.1% | $418.3M+44.3% | $390.3M+46.6% | $360.0M+53.3% |
Not reported in any period shown, so not listed: Long-Term Debt.
ALRM Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $41.9M+84.4% | $50.6M+110.5% | $35.9M-36.1% | $70.6M-8.7% | $22.7M-1.1% | $24.1M-51.7% | $56.3M+41.1% | $77.3M+23.1% |
| Depreciation & Amortization | $9.0M+19.0% | $9.1M+29.4% | $8.5M+19.2% | $7.8M+2.4% | $7.5M+6.4% | $7.0M-4.3% | $7.1M-10.6% | $7.6M-4.2% |
| Stock-Based Compensation | $7.6M-15.2% | $8.0M-14.9% | N/A | $8.2M-10.6% | $8.9M-20.3% | $9.5M-16.1% | N/A | $9.2M-22.1% |
| Capital Expenditures | $4.8M+6.5% | $912K-85.1% | $860K-62.1% | $4.8M+69.4% | $4.6M+128.5% | $6.1M+99.4% | $2.3M+4.6% | $2.8M+43.5% |
| Free Cash Flow | $37.0M+103.9% | $49.7M+177.1% | $35.1M-35.0% | $65.9M-11.6% | $18.2M-13.4% | $17.9M-61.7% | $54.0M+43.2% | $74.5M+22.4% |
| Investing Cash Flow | -$23.1M+87.0% | $2.4M+104.4% | -$108.5M-1234.6% | -$17.0M-130.1% | -$177.8M-3320.7% | -$55.2M-1293.1% | -$8.1M-92.1% | -$7.4M-244.9% |
| Financing Cash Flow | -$36.8M-501.0% | -$518.2M-14809.0% | -$33.5M-1664.2% | -$11.9M-378.5% | -$6.1M-101.8% | -$3.5M-154.7% | $2.1M+112.9% | -$2.5M+65.3% |
| Share Buybacks | $25.0M+389.9% | $20.0M+295.2% | $19.1M | $12.3M | $5.1M-93.2% | $5.1M | $0-100.0% | $0-100.0% |
Not reported in any period shown, so not listed: Dividends Paid.
ALRM Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 65.6%-0.1pp | 65.9%-1.4pp | 66.0%+0.5pp | 65.8%+1.1pp | 65.6%+0.4pp | 67.2%+1.5pp | 65.5%+1.4pp | 64.8%+1.4pp |
| Operating Margin | 11.7%-0.9pp | 11.9%-0.5pp | 13.4% | 14.4%+0.6pp | 12.6%+1.6pp | 12.4%+4.0pp | N/A | 13.8%+6.5pp |
| Net Margin | 8.7%-4.7pp | 8.8%-2.8pp | 13.2%+0.7pp | 13.7%-1.6pp | 13.5%-0.9pp | 11.6%+1.0pp | 12.5%-1.3pp | 15.3%+6.5pp |
| Return on Equity | 2.8%-1.5pp | 2.7%-0.9pp | 4.1%-0.1pp | 4.2%-1.1pp | 4.3%-0.9pp | 3.6%+0.4pp | 4.2%-0.4pp | 5.3%+2.4pp |
| Return on Assets | 1.5%-0.2pp | 1.4%+0.1pp | 1.6%+0.1pp | 1.7%-0.2pp | 1.6%-0.2pp | 1.3%-0.3pp | 1.5%-0.7pp | 1.9%+0.5pp |
| Current Ratio | 4.96+3.0x | 5.16+3.0x | 1.92-5.9x | 2.06-6.6x | 1.95-7.3x | 2.14-3.4x | 7.85+2.4x | 8.66+3.2x |
| Debt-to-Equity | 0.86-0.7x | 0.86-0.8x | 1.47-0.3x | 1.50-0.3x | 1.56-0.3x | 1.67+0.7x | 1.74+0.7x | 1.80+0.7x |
| Asset Turnover | 0.170.0x | 0.160.0x | 0.120.0x | 0.120.0x | 0.120.0x | 0.120.0x | 0.120.0x | 0.120.0x |
| FCF Margin | 13.3%+6.2pp | 18.8%+11.2pp | 13.4%-8.9pp | 25.7%-5.3pp | 7.1%-1.8pp | 7.5%-13.4pp | 22.3%+5.6pp | 31.0%+3.6pp |
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| Alarm.com Holdings, Inc. ALRM | FY2025 | $1.0B | $131.6M | 13.0% | $2.8B | 61/100 |
| NCR Atleos Corporation NATL | FY2025 | $4.4B | $162.0M | 3.7% | $3.4B | 44/100 |
| Agilysys, Inc. AGYS | FY2026 | $319.3M | $38.8M | 12.2% | $2.8B | 72/100 |
| RINGCENTRAL, INC. RNG | FY2025 | $2.5B | $43.4M | 1.7% | $6.5B | 48/100 |
| Asana, Inc. ASAN | FY2026 | $790.8M | -$189.0M | -23.9% | $2.0B | 56/100 |
Where Alarm.com Holdings, Inc. Ranks
Frequently Asked Questions
What is Alarm.com Holdings, Inc.'s annual revenue?
Alarm.com Holdings, Inc. (ALRM) reported $1.0B in total revenue for fiscal year 2025. This represents a 7.6% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Alarm.com Holdings, Inc.'s revenue growing?
Alarm.com Holdings, Inc. (ALRM) revenue grew by 7.6% year-over-year, from $939.8M to $1.0B in fiscal year 2025.
Is Alarm.com Holdings, Inc. profitable?
Yes, Alarm.com Holdings, Inc. (ALRM) reported a net income of $131.6M in fiscal year 2025, with a net profit margin of 13.0%.
What is Alarm.com Holdings, Inc.'s EBITDA?
Alarm.com Holdings, Inc. (ALRM) had EBITDA of $164.5M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Alarm.com Holdings, Inc.'s gross margin?
Alarm.com Holdings, Inc. (ALRM) had a gross margin of 66.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Alarm.com Holdings, Inc.'s operating margin?
Alarm.com Holdings, Inc. (ALRM) had an operating margin of 13.2% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Alarm.com Holdings, Inc.'s net profit margin?
Alarm.com Holdings, Inc. (ALRM) had a net profit margin of 13.0% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Alarm.com Holdings, Inc.'s return on equity (ROE)?
Alarm.com Holdings, Inc. (ALRM) has a return on equity of 15.5% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Alarm.com Holdings, Inc.'s free cash flow?
Alarm.com Holdings, Inc. (ALRM) generated $137.0M in free cash flow during fiscal year 2025. This represents a -30.2% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Alarm.com Holdings, Inc.'s operating cash flow?
Alarm.com Holdings, Inc. (ALRM) generated $153.3M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Alarm.com Holdings, Inc.'s total assets?
Alarm.com Holdings, Inc. (ALRM) had $2.1B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Alarm.com Holdings, Inc.'s capital expenditures?
Alarm.com Holdings, Inc. (ALRM) invested $16.3M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Alarm.com Holdings, Inc. spend on research and development?
Alarm.com Holdings, Inc. (ALRM) invested $270.2M in research and development during fiscal year 2025.
What is Alarm.com Holdings, Inc.'s current ratio?
Alarm.com Holdings, Inc. (ALRM) had a current ratio of 1.92 as of fiscal year 2025, which is generally considered healthy.
What is Alarm.com Holdings, Inc.'s debt-to-equity ratio?
Alarm.com Holdings, Inc. (ALRM) had a debt-to-equity ratio of 1.47 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Alarm.com Holdings, Inc.'s return on assets (ROA)?
Alarm.com Holdings, Inc. (ALRM) had a return on assets of 6.2% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Alarm.com Holdings, Inc.'s P/E ratio?
Alarm.com Holdings, Inc. (ALRM) trades at 23.5x earnings, its market capitalization divided by net income of $117.3M net income, trailing 12 months to June 30, 2026. The market capitalization is $2.8B as of Oct 5, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Alarm.com Holdings, Inc.'s price-to-sales ratio?
Alarm.com Holdings, Inc. (ALRM) trades at 2.6x sales, its market capitalization divided by revenue of $1.1B revenue, trailing 12 months to June 30, 2026. The market capitalization is $2.8B as of Oct 5, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Alarm.com Holdings, Inc.'s Altman Z-Score?
Alarm.com Holdings, Inc. (ALRM) has an Altman Z-Score of 2.69, placing it in the Grey Zone (moderate risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Alarm.com Holdings, Inc.'s Piotroski F-Score?
Alarm.com Holdings, Inc. (ALRM) has a Piotroski F-Score of 6 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Alarm.com Holdings, Inc.'s earnings high quality?
Alarm.com Holdings, Inc. (ALRM) has an earnings quality ratio of 1.16x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Alarm.com Holdings, Inc. cover its interest payments?
Alarm.com Holdings, Inc. (ALRM) has an interest coverage ratio of 7.73x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Alarm.com Holdings, Inc.?
Alarm.com Holdings, Inc. (ALRM) scores 61 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.